Good morning,

As Spain and Argentina went into extra time during the World Cup on Sunday, conversations among my friends quickly took shape. “More gameplay? On top of 90 hard minutes? How can they keep going?”

Training, trophies, bonuses, maybe even the hopes and dreams of your country—pushing your team beyond what they think is possible can be daunting, but it can be done. It just takes the right tools and techniques.

This week, research from Niko Matouschek and Luis Rayo offers clues on what can motivate teams beyond cash alone. Plus, a former swimming prodigy—and Kellogg professor—offers advice on achieving excellence by building resilience. 

Motivating with more

Money doesn’t always buy happiness—at least that’s what many modern-day workers seem to believe.

Employees at U.S. companies are increasingly prioritizing purpose in their jobs over pay. And many businesses have responded in kind, donating $44 billion to charity in 2024—a 9 percent bump from the prior year. So it makes sense that some companies are trying philanthropy as an incentive strategy, says professor of strategy Niko Matouschek.

“Many companies give so they can win over consumers. [The software company] Group Elephant points to a different motive for giving: making work more meaningful, which can help companies attract and motivate employees,” Matouschek says. 

But when best to deploy this tactic? Matouschek, alongside fellow professor of strategy Luis Rayo, built a theoretical model to examine when companies should use donations rather than cash alone as a motivational tool. 

The economists found there can be significant financial upside for a company that donates more as its workers’ performance rises. This tactic can be even more lucrative for a company than offering employee bonuses—particularly in team settings where employees’ individual and group performances are closely tethered together.   

“Our results suggest that firm-funded donations are not mere corporate philanthropy layered on top of incentives,” Matouschek says. “They are an integral, public component of the compensation contract.”  

Read more at Kellogg Insight.

Resilience, one lap at a time

Before taking on leadership roles at Walmart.com and PepsiCo, clinical professor of strategy Carter Cast first chased excellence in a different lane: swimming. 

“Swimming formed me,” Cast says. “It gave me discipline; it gave me resilience and introduced me to pressure and disappointment.”  

Drawing on years of experience in competitive racing, Cast offers four pieces of advice for achieving your own excellence. First, build resilience. Swimming by its very nature is repetitive. Yet this training has helped Cast learn he can usually find a way to “put another hour in” to improve an idea or get past a stubborn issue. 

Second, prime yourself to perform. Practicing that presentation in front of the mirror or reviewing a budget one more time before the deadline allows you to channel your energy and deliver with excellence when the moment arrives.

Third, be gracious in defeat. Someone else won the bid. My colleague got promoted before me. Cast knows not every race or project can be a winner, and that’s okay. “Learning how to lose is important, too” he says. “It’s part of putting yourself out in the arena.” 

And lastly, keep your “pool” in perspective. When Cast didn’t make the Olympics in 1984, he retired and vowed not to fail again in any endeavor. While denial is a strong form of self-preservation, it can stall you as well. Remember to treat high-intensity experiences as catalysts for growth.

Read more at Kellogg Insight. (Then, enjoy an athletically inclined collection of sports insights and research curated by Kellogg Insight.)

“Reading long-form fiction, biography, and history demands focused attention, [and] tolerance with ambiguity and unanswered questions or unrevealed nuance in characters and situations.”

Have a great week!

Blake Goble, marketing manager
Kellogg Insight