SMART Recognition

According to exit interviews, one of the primary reasons that people leave organizations is lack of recognition for their contributions. Bad management plays a role, of course, but as I see it those two factors go hand-in-glove. Taking credit for others’ ideas, failing to recognize key contributors, favoritism, and similar unscrupulous behaviors undermine morale. The paycheck is great, but we all want to know that we are appreciated for our efforts too. In fact, whether people are intrinsically or extrinsically motivated, they still crave recognition, though not always in the same ways.

Most leaders know this, of course, but they often struggle to get recognition right. This is because recognition is not horribly effective when it’s haphazard or implemented as a spur of the moment thing or afterthought. It needs to be well thought out and strategically applied. In other words, it should intentionally link appropriate rewards to specific actions or behaviors that support and further the organization's goals and values. Things that we might consider recognizing include creative problem solving, ethical behaviors (especially in tough circumstances), motivating and inspiring others, committed team efforts, and going above and beyond one's job description in some measurable way.

A challenge is that everyone is different, hence cannot be recognized in the same ways. For example, some folks are more motivated by a challenging assignment than they ever would be from a cash award or stock options. Further, acknowledgement for meritorious behaviors can be anything from a kind word to a letter to framed artwork to a raise or promotion. One of the nicest things any leader ever gave me was a handmade plaque celebrating the team's success and my role in it. The fact that he’d built it by hand in his shop rather than buying it off the shelf was really touching. As you can see, it's not the form of recognition so much as how and when we do it that matters most.

I have found five elements that help assure meaningful and appropriate recognition. It needs to be (1) Sincere, (2) Meaningful, (3) Adaptable, (4) Relevant, and (5) Timely, making for an easy to remember acronym, SMART. Here’s how it works:

1. Sincere: this is sort of self-explanatory, but even sincere recognition can seem disingenuous if we don’t do it right. Be specific about the behaviors or results that you value rather than offering generalized praise. Explain what was done, why it matters, and how much it means to us personally that the person did it.
2. Meaningful: any award should enhance the recognition, not be the recognition. Recognize others by showing respect, asking for input, giving feedback, providing opportunities, or just saying "thank you." Consider who, how, and where to deliver the acknowledgement so that it will have the greatest impact. In hierarchical organizations such as where I work, for instance, recognition events can provide career-affirming "face time" with key decision-makers that lower ranking employees might not get other chances to see.
3. Adaptable: different people like to be recognized in different ways. For some a public event is embarrassing whereas others cherish the attention. Some people would be thrilled to receive football tickets, while others might prefer to attend the movies, an opera, or a dinner theater. The better we know our teams the better we can reward them in ways they will find meaningful and the better we can deliver appropriate recognition in alignment with individual predilections.
4. Relevant: keep the recognition appropriate in size for the achievement. Awarding 10,000 shares of stock for performing a routine job assignment is inappropriate, we all know that, but sometimes it is hard to directly tie recognition to the organizational impact of a person's actions. It doesn't do any good to over think it, we simply must assure that every individual feels valued for their contributions, recognition is relevant with their accomplishments, and that we are consistent in how and when we demonstrate appreciation to the team.
5. Timely: this may seem like a no-brainer, but if we work in a large organization it can take forethought in order to work through the bureaucracy and receive approval to recognize employees in timely manner. I find it valuable to incorporate recognition planning into my weekly operating rhythm so that I am always on the lookout for meritorious behaviors and have mechanisms in place to suitably recognize them in a timely manner.

That’s all positive recognition. Don’t forget about handling poor performance as well. Clearly we do not want to publicly embarrass or diminish anyone, save in very, very rare circumstances, but oftentimes escapes can become learning moments, opportunities to improve processes, tools, or policies, or to send a powerful message about appropriate and inappropriate behaviors to the team. Don’t let things slide. Hold everyone to established standards of performance, recognizing laudable behaviors and correcting inappropriate ones in a timely manner.

Above all, be consistent! If we appear to be playing favorites the recognition effort will backfire, oftentimes spectacularly. Never forget that team members talk to each other. If we are not fair, objective, and consistent in how we apply recognition they will know. Few things undermine team cohesion and morale more than favoritism. Recognition is important. It helps to get it right if we are SMART about it.