It’s that time of year where we clean the desk,  set the goals and roll out the revised set of new year’s resolutions.  Some of us are excited by the year ahead but others are filled with dread and are even thinking whether going back to “that” job is an option.

That motivation for life and the dawn of a new year for some of us is burning and real and for others it is dormant or extinguished.

Motivation is a strange thing and for most of the industrial revolution and beyond we have used “external” motivations to drive ourselves and our employees to work and succeed such as monetary incentives and “stick and carrots”. The  reality is and supported by research is that there is a mismatch between “what science knows and what business does”.

We need to look at an approach built upon intrinsic motivation which could be labelled “A New Operating System” for the 21st century that taps into our desire to do things

• Because they matter
• They are interesting
• Because they are part of something important.

Scientists from the the University of Chicago, MIT and Carnegie Mellon discovered in a study sponsored by the Federal Reserve Bank of America that

“In 8 out of 9 tasks examined across 3 experiments that higher incentives led to worse performance”

In another study by the London School of Economics (the training ground of George Soros and the Alma mater of 11 Nobel Laureates) they found that after looking at 51 companies pay for performance plans that “we find that most financial incentives can result in a negative impact on overall performance”.

What science is telling us is that true powerful and long lasting motivation is built upon 3 elements.

1. Autonomy – the urge to direct our own lives

2. Mastery – the desire to get better and better at something that matters

3. Purpose – the yearning to do what we do in the service of something larger than ourselves

Who would have thought 10 years ago that a professionally managed, paid and heavily sponsored project (Encarta by Microsoft) to create a new media encyclopedia  would be comprehensively beaten to the canvas in a knockout by a free global social science experiment called “Wikipedia” involving thousands of unpaid volunteers working in their pajamas from home.

These 3 elements are the building blocks for the a new operating system for business and life in the 21st century. Do they drive your blog?

For more on motivation watch the Ted Talk Video I have embedded in this article by Dan Pink who inspired this post. He is also the author of a New York Times Best Seller “Drive: The Surprising Truth That Motivates Us”. I hope you have a great 2011.

My young nephew aged five, was over visiting during the Christmas holidays and as he was being tucked into bed before going to sleep, he very quickly shut his eyes and I asked him “What are you doing?” and he said “I am choosing a dream”  he thought for a few moments and then said “I am right now, I have chosen a dream” and then promptly proceeded to fall asleep.

Dreams and goals are something that we as adults can become cynical about, especially as life flows past with its relentless activity, tasks and mundane-ness as we sucumb to the daily grind. We don’t take the time out to do what is important but not urgent, such as making time to plan, set goals, become clear in your priorities and determine what is really important to you and your life.

The Importance of Setting Goals

Here is some food for thought regarding the importance of setting goals from interviews of Harvard MBA graduates.

“So, Why Do 3% of Harvard MBAs Make Ten Times as Much as the Other 97% Combined ?

The answer is a simple question: “Have you set clear, written goals for your future and made plans to accomplish them?” In 1979, interviewers asked new graduates from the Harvard’s MBA Program and found that :

• 84% had no specific goals at all
• 13% had goals but they were not committed to paper
• 3% had clear, written goals and plans to accomplish them

In 1989, the interviewers again interviewed the graduates of that class.  You can guess the results:

• The 13% of the class who had goals were earning, on average, twice as much as the 84 percent who had no goals at all.
• Even more staggering – the three percent who had clear, written goals were earning, on average, ten times as much as the other 97 percent put together”.

(Source:  from the book What They Don’t Teach You in the Harvard Business School, by Mark McCormack).

Happiness is Not Just about Money

Happiness is not all about money and economic and financial growth (see a study that looks beyond financial growth as the only measure of success and ultimately happiness). This new digital world has provided us with an amazing range of activities that are not just about financial success but about happiness and enjoyment at a very basic and self actualized level.

• Top footballers on a few hundred thousand a week can come home and find the most enjoyment is to play Grand Theft Auto (that only cost them $40) on their playstation
• People go home and blog about their passions and interests and their blog posts are read by hundreds of thousands

7 Core Categories for Goal Setting

So what are the seven core categories you should be setting goals for that are important for you and bring you joy.

1. Financial: such as total income or earnings, savings or debt elimination goals (maybe wanting to earn $250,000 a year)
2. Career and Business: New projects , partnerships or relationships
3. Fun Time: Vacations, Trips or special events or even taking time off  (6 months working followed by 6 months travelling)
4. Health and Fitness: Losing weight, getting fit and good nutrition (this could be running 10km’s or even a marathon)
5. Relationships: This can cover family, personal or business such as mentors
6. Personal: Anything you personally want to have, be , or do and can include educational and spiritual goals (or even a a sports car)
7. Contribution: This covers the areas of charitable, community or mentoring goals (could include donating your time at a local soup kitchen)

So take some time to plan, set goals and importantly dream.

What dreams and  goals are are you choosing?