Delay Discounting
You’ve probably heard about delayed gratification. This isn't that.
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You’ve probably heard about delayed gratification.
Where delaying getting a reward shows your self control.
Delay discounting is the other side of the coin.
It refers to the tendency for all of us to value immediate rewards more highly than future rewards.
Essentially, the value of a reward decreases (or is "discounted") the longer we have to wait to receive it. For example, I might choose to receive $50 today rather than $100 in a year, even though waiting would give me more money.
But how can we use this psychological idea to our benefit as project managers?
Set Short-Term Milestones:
We are naturally inclined to prefer immediate rewards. By breaking long-term projects into smaller, more manageable tasks with immediate rewards or feedback, you can keep your team motivated. Celebrating small wins along the way helps maintain momentum.
Provide Immediate Incentives:
Offering tangible or symbolic rewards in the short term—whether it's recognition, bonuses, or team celebrations—can help counteract the tendency to undervalue future project success. By linking performance to immediate positive reinforcement, you ensure that team members remain focused and engaged.
Frame Long-Term Benefits Clearly:
When people are more aware of future benefits, they may be more willing to delay gratification. You can help your team see the long-term value of their work by consistently reminding them of the bigger picture. Provide clear examples of how achieving future project milestones will lead to substantial rewards.
Highlight Loss Aversion:
People tend to avoid losses more than they seek gains. If you can emphasize the potential losses from not completing certain tasks on time, you can make future consequences feel more immediate.
By using these techniques, you can create environments where the team remains motivated and focused on both immediate and long-term goals, reducing the impact of delay discounting.
See you next week,
Jonathan (The Effective Project Manager)
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