• Extrinsic motivation. Extrinsic motivators (a raise, a promotion, a bonus) do work they are usually doing so in the short-term only. If the motivator is taken away, the behavior stops.
• Intrinsic motivation. It is the desire to do something for the internal satisfaction of it. It’s the joy we get from accomplishing something useful, the satisfaction of a job well done, a sense of purpose, pride, belonging.

• They can extinguish intrinsic motivation.
• They can diminish performance.
• They can crush creativity.
• They can crowd out good behavior.
• They can encourage cheating, shortcuts, and unethical behavior.
• They can become addictive.
• They can foster short-term thinking.

The carrot and stick method does work, but it was created for a very different era and totally different circumstances.

• Autonomy: this is the desire to direct our own lives
• Mastery: this is the impulse to get better and better at something that matters
• Purpose: this is the longing to do what we do in the service of something larger than ourselves.

• Type X (Extrinsic): They are driven by external factors such as fame, status, money etc. They can often be highly successful but also troubled by an insatiable appetite for MORE.
• Type I (Intrinsic): Their motivation comes from within – to accomplish something meaningful. Success is measured by the task itself and not by a reward. Type I’s will usually outperform a Type X in the long run.

It means having a choice in what you do and being-self driven.

People are naturally wired to be-self driven. When they have the freedom to pick what they work on (tasks), when they work on it (time), how they attain it (technique) and who they work with (team), they perform much better due to the sense of autonomy.

The assumption of Mastery is that people wish to get better at what they do as long as they care about it.

• Engagement in the task one is pursuing is key to mastery.
• To be engaged, you need to reach the state of flow, where goals are clear and feedback is immediate.
• For flow, the challenge of a task must be just slightly above your level of competence.
• Set “learning goals” instead of “performance goals”.

Purpose leverage the human desire of being part of something bigger .

We reach purpose while:

• Doing something that matters
• Doing it well
• Doing it in the service of a cause larger than ourselves.