So, you know, Paul took off his shirt, I can't do that --

But, you know, I thought: maybe I'll take off my -- No.

So I want to talk a little bit about labor and motivation.

And, when we think about people as workforce,

we often think about people like rats in a maze.

We think that people hate working, we think that all that people want to do

is to sit on the beach drinking mojitos and the only reason that they work

is that we pay them so they can seat on the beach drinking mojitos.

But is this the case?

We have things like mountain climbing.

Mountain climbing is a really challenging thing.

When you read books of people who climb mountains

you would think that those books would be filled with moments of elation and joy --

No! They're filled with moments of misery and pain, frostbites --

So you would think that once people get up with these experiences and come down

they will say, "My goodness, this was a terrible mistake, I'll never do it again!"

No! They go straight up! They get to heal, they get to recover and they go straight up!

And this, I think, proposes a real challenge for what do we think about joy,

and what do we think about motivation, and what actually gets people to care.

I started thinking about meaning and motivation in the workplace

when one of my ex-students came back to see me.

His name was David - still is David - he came to see me,

and he told me the following story:

He said that he was working at an investment bank,

preparing a PowerPoint presentation for a merger and acquisition.

He was working on it for weeks. He was working hard,

staying up late at night -- And the day before

the merger and acquisition was going to take place

he mailed his PowerPoint presentation to his boss

and his boss wrote him quickly back saying, "Nice job! The deal is cancelled."

Now, throughout the process he was incredibly excited!

He was working, he was thinking happy, his boss appreciated it.

But the fact that nobody was going to see it deflated him.

In fact, when he was looking at his next projects,

he couldn't really find that much motivation.

And if you think about it, it's interesting because physically, everything was OK.

His boss appreciated it, he would probably get a raise, everything was OK --

But something was missing that is more, kind of a more

general meaning for what he was doing.

So I thought, you know: how can we capture it with some simple experiments?

So I decided to build Legos.

So we paid people to build Lego Bionicles, like the ones that you see.

And we paid people in diminishing rate.

So here's what happened: you came in and we say,

"Would you like to build one Bionicle?"

"We'll pay you 3 dollars for it."

And if you said "yes" you would build it and when you finished, we took it back

and we say, "Would you like to build another one? For 2.70?"

And if you finished that and wanted another one? For 2.40 and so on --

And the question was, "At what point will people stop?"

And we told people that we take the Bionicles, we'll put them under the desk,

and we'll break them into pieces for the next participant.

(Laughter)

This was the first condition.

People build one after the other, after the other, after the other.

The second condition we called the 'Sisyphic Condition.'

If you remember the story of Sisyphus -- Sisyphus basically was sentenced by the gods

to push a rock up a big mountain and the almost moment he got there --

The rock would roll back and he would have to do it again.

And you could think about how demotivating this is, right?

And how better it would be if at least it were different mountains he would push the rock over.

But being the same mountain over and over and over is demotivating.

So that's what we tried to do in the 'Sisyphic Condition.'

We gave people a Bionicle,

when they finished it, we said, "Would you like to build another one?"

If they said "yes", we gave them the second one,

but as they were working on the second one we took the first one to pieces.

In front of their eyes.

And then, if they wanted to build a third one, we gave the first one back to them.

(Laughter)

So we had an endless cycle of breaking and creating, creating and breaking.

What happened? The first thing that happened,

was that people built many more Bionicles

in the 'Meaningful Condition' compared to the 'Sisyphic Condition.'

And what I should point out here is that the meaning in the 'Meaningful Condition'

was not really high meaning. This was a tiny meaning. Right?

So the fact that just destroying it in front of their eyes a few minutes earlier

made a difference, is quite important.

The second thing is that we asked another group of people

to predict how big the effect will be.

We said, "If you were in this experiment, how many Bionicles do you think

people would build here and how many will they build here?"

And people understood that the 'Meaningful Condition' would create

higher motivation, but they didn't understand the magnitude of that.

So people thought that the difference was one Bionicle. In fact it was much larger.

And finally, we looked at the correlation between how much people love Bionicles

and how many Bionicles they created.

You would expect that, naturally, people who love Bionicles more

would build more Bionicles, even for less money.

And that's indeed what we saw.

In the 'Meaningful Condition' there was a nice correlation.

People who like Bionicles build more, people who don't like Bionicles as much

don't build as much.

What happened in the 'Sisyphic Condition'?

In the 'Sisyphic Condition' there was no correlation.

We were basically able, by destroying people's labor in front of their eyes,

to crash the joy out of this process.

(Laughter)

After I finished this study, I went to talk to a big software company in Seattle.

(Laughter)

And this was a big room full of 200 engineers

and these were engineers that worked for 2 years

about the project that they thought would be the next development

for this big software company.

And a week before I came the CEO cancelled the project.

And I never sat in front of a group of more depressed people --

And I asked them,"How many of you show up later for work these days?"

They all raised their hands.

I said, "How many of you leave earlier?"

They all raised their hands.

I said, "How many of you charge extra things on your expense accounts?"

Nobody raised their hands, but they took me for dinner that night.

(Laughter)

They showed me what they could do, with creativity --

And they said they felt just like in the Lego experiment.

They basically felt that somebody cancelled something in front of their eyes, under their feet,

without letting them have any meaning of what they were doing.

Now, here's the thing: I think the CEO of that company

did not understand the meaning of labor.

He just said, "OK, we directed you in this direction up to now,

let me redirect you somewhere else, and you will just go in the way I think."

This is not how people operate.

And I asked these people, "What could the CEO have done? Let's say he had to cancel the project.

What could he have done to keep some of your motivation?"

And they came up with all kinds of ideas.

They said, "What if he allowed them to do a presentation in front of the whole company?"

"What if he asked them to build a few more prototypes, to try and think about

what aspect of the technology that they were developing could fit in other projects?"

Now, the thing is that, any one of those aspects, any one of those approaches would demand

some effort, attention and time, and if you don't think people

care about their meaning you wouldn't spend their time.

But if you understand how important meaning is, you might do that.

In the next experiment, we took this a step further.

We asked people to find some letters in a sheet of paper.

And again they got more money for the first sheet, then less for the second

and less for the third, and so on.

And for some people we had what we called the 'Meaningful Condition.'

We asked people to write their name on each sheet and when they gave it to the experimenter,

the experimenter looked at it from top to bottom, said "aha" and put it on the side.

In the second condition, the experimenter didn't look at it.

There was no name, the experimenter just took it from the participant and put it on the desk.

In the third condition, the experimenter simply took the sheet

and directly put it through a shredder. (Laughter)

Now, I should point out that in this third condition,

when the page goes directly into a shredder, nobody looks.

You could cheat. Right?

You could be dishonest and do more sheets for less money and put less effort into it.

What were the results?

In the 'Acknowledged Condition' - when we looked at it -

people worked all the way down to 15 cents. They worked quite a lot.

In the 'Shredded Condition,' people stopped much faster.

So people cared more about -- They enjoyed more the labor in the 'Acknowledged Condition.'

What about the 'Ignored Condition'? Where does it sit in the middle?

Is it close to the 'Acknowledged,' the 'Shredded' or somewhere in the middle?

Well, very very close to the 'Shredded Condition.'

So, I guess the good news here is that if you want to motivate people,

simply looking at what they've done and say, "I've acknowledged,

I've seen that you've done something," seems to be sufficient.

Even without the nice word - just acknowledge people.

On the other hand, it turns out that if you really want to demotivate people,

it's incredibly easy!

Shredding, of course, is the optimal way to demotivate people! If you want to.

But just ignoring what they're doing gets you almost all the way there.

So this was all about demotivating people.

There are lot's of ways to demotivate people, and we should try to avoid those.

What about motivating people?

What about the second part of this equation?

And, for me the insight for this part of the story came from IKEA.

So, I don't know about you, but I have some IKEA furniture --

and when I reflect back on the experience, it turns out

that it took me a long time to assemble these instructions, to assemble this furniture.

The instructions were not clear, I would put things in the wrong place,

I would have to disassemble it -- But what I've also noticed

is that I keep on looking fondly at this IKEA furniture.

We share something in common that I think is more than just buying something in the store.

And you can wonder, "What happens when you invest some of your love and effort

and attention, even frustration, into something?"

Do you start loving it more?

And there's an old story - it's kind of a nice story - it's a story about cake mixes.

When they introduced cake mixes in the US,

it turns out housewives at the time did not accept them.

They had mixes for all kinds of things: for muffins, for bread --

Cake mixes, not so much. And they wondered why?

The taste was perfectly fine.

They found out that what was missing was a feeling of labor.

If you basically put some water in the cake mix, mix it together, put it in the oven

and the cake comes out -- You can't take credit for that!

(Laughter)

If somebody comes and says, "Nice cake, thank you!" you've not done anything!

So what did they do?

They took the eggs and the milk out of it.

(Laughter)

Now you put the cake mix, you break some eggs, you put some milk --

Now it's your cake! (Laughter)

(Applause)

So, how do we test this idea?

We started by asking people to build origami.

We gave people instructions on how to fold origami.

And these were people who don't really know how to do origami,

so they came up with kind of ugly origami, but that's OK.

And then we told them that we actually owned that origami

and we asked them, "How much would you pay for you to keep it?"

And we tried to measure how valuable they thought this origami was.

And people loved the origamis that they created.

(Laughter)

Then we asked other people that did not build that origami