Title: The Carrot Principle: How the Best Managers
Talent, and Accelerate Performance
Author: Adrian Gostick, Chester Elton
What’s up is this. The authors’ reference studies that point to an
“undeniable correlation” between recognition and organization success.
Companies with effective recognition strategies have better financial
performance – 3 times higher Return on Equity, and Return on Assets,
and operating margins almost 6 percentage points higher. Unfortunately
this important information continues to go unheeded as companies tend
to cut recognition programs precisely when they should be ratcheting
In fact there is a dearth of recognition in today’s work environment as
revealed by results from numerous studies noted in the book to include:
65% of workers haven’t been recognized in the last year. (Gallop Poll).
80% of managers provide little to no recognition (Wichita State University
Poll). Paradoxically, in a Jackson Group study managers viewed
themselves in the top quartile when judging how well they recognize their
The authors review the four basic characteristics of leadership: Goal
setting, Communication, Trust, and Accountability. Recognition, they point
out, is the accelerant that allows management effectiveness soar in each
of the 4 areas. This is the Carrot Principle. “Great management is born
when recognition is added to the 4 basic leadership characteristics.”
The authors go into much detail on the basic 4 characteristics and how
recognition is used as an accelerator. They review why certain managers
recognize and others don’t and debunk the many myths surrounding
recognition. They explain how to build a carrot culture specifying the types
of recognition and how often and when they should be given. The book
finishes up with 125 recognition ideas.
The book is a good refresher on the value of recognition and it suggests
and outlines basic strategies for implementing recognition on both a large
and a small scale.
V E N T U R E S , L L C