When it comes to motivation, there is mismatch between what science knows and what business does.

If you're using "carrots & sticks" (i.e. extrinsic motivators) then you should have been a leader (manager, supervisor, CEO, etc.) in the 20th century when you might have had some success with that style of leadership.  Carrots & sticks not only don't work well in the 21st century, they often cause harm!

Why won't carrots & sticks work as a motivation strategy in the 21st century?

The answer relates back to Dan Pink's book "A Whole New Mind -- Why Right Brainers Will Rule The Future".  Dan understands the seismic shift happening in our world, the shift from a world dominated by left brain thinking to a world dominated by right brain thinking. 

Look around at the problems your team faces.  Do they have a clear set of rules and a single solution?  Doubtful.  In the 21st century Dan says "The rules are mystifying. The solution, if it exists at all, is surprising and not obvious."  In an environment like that, you've got to motivate your team in a different way to experience success.

Watch Dan give a great 18 minute explanation of what's going on in the video below.