In Brief

The Problem

You’ve surely seen this happen more than once: Employees get stuck in a rut, disengage from their work, and stop performing to their potential. So managers respond with tighter oversight and control, yet nothing improves.

The Reason

Most management practices and incentives are based on conventional economic logic, which assumes that employees are self-interested agents. And that assumption becomes a self-fulfilling prophecy.

The Solution

By connecting people with a sense of higher purpose, leaders can inspire them to bring more energy and creativity to their jobs. When employees feel that their work has meaning, they become more committed and engaged. They take risks, learn, and raise their game.

When Gerry Anderson first became the president of DTE Energy, he did not believe in the power of higher organizational purpose.

A version of this article appeared in the July–August 2018 issue (pp.78–85) of Harvard Business Review.