Abraham was in his mid-50s and feeling under appreciated by his professional colleagues.

Twenty years earlier, he had shared his thinking with the world in a 1943 article published in Psychology Review, titled "A Theory of Human Motivation", but few in the world of psychology appeared to even notice.

By the 1960's, that all changed, in a very big way.

Leading thinkers in the world of business management latched on to Abraham's theory and lauded it as a new and better way to manage businesses, propelling Abraham's theory and name to rockstar status.

What most people don't know is that the most famous element of Abraham's idea, the one that would be printed in textbooks and taught in business management schools around the world, was not included in his 1943 article, or in his 1954 book Motivation and Personality.

Why not?

Because he didn't create it!
 
According to Bridgman, Cummings, and Ballard, the graphic that deserves credit for launching Abraham's theory, and his name, to great fame, was the idea of psychology consultant Charles McDermid, published in a 1960 article, seventeen years after Abraham's original article, in Business Horizons titled, "How Money Motivates Men".

The name, the theory, and graphic...

Abraham Maslow's "Hierarchy of Needs" and the well-known pyramid shown below.

As Paul Harvey used to say, "now you know the rest of the story".

Graphic:  Charles McDermid, "How Money Motivates Men", Business Horizons, 1960

It's Not All About
"Showing You The Money"

The co-opting of Maslow's psychological theory of human motivation by the business management community brought with it more than a few criticisms from the psychology community, who obviously paid more attention to Maslow and his theory once both become famous (see Scott Barry Kaufman for more details).

However, the general idea that individuals must satisfy basic needs like food, water and safety before they are motivated to satisfy important, but logically less essential needs like love, esteem and self-realization, was appropriately adopted by the management community.

As McDermid's article title suggests, they used Maslow's hierarchy to argue that employees are motivated by more than just money.

For example, employees satisfied with their pay may be motivated to work harder, longer, or more efficiently if the organization they work for has a great culture that fosters a sense of belonging and connection with their fellow employees.

Confident that their skills are in demand, and knowing that good compensation is of little concern, some employees may leave one company in search of another with a great reputation, that they can be very proud to work for, and which satisfies their motivation for greater esteem in the eyes of family, friends, and their peers.

Lastly, an employee may even choose to earn less money, rather than more, if that means they can do work that uses their talents in a way that serves a higher purpose in the community or the wider world, allowing them to be all they hope and dream to be as a person.

In other words, if managers focus on satisfying the non-monetary aspects of a job, then employee performance, job satisfaction, engagement, and happiness will be higher and better.

If you've read any of my previous articles about a Freedom Focused business, this list of benefits should sound very, very familiar?

Maslow & Freedom

I suggest that the higher one moves on Maslow's hierarchy, the greater freedom they will be experiencing in their life.

This suggestion may be challenged at the lower levels of the hierarchy but holds most true at the pinnacle of the pyramid, at "Self-Actualization".

Maslow states that once people have satisfied the physiological, safety, love and esteem needs, they are considered "basically satisfied individuals."

He adds that these people are the "exception" in society, and I believe few would challenge that claim.

Having satisfied their basic needs, these exceptional individuals have the freedom to now "become actualized in what [they are] potentially," and "become more and more what one is, to become everything that one is capable of becoming."

People operating at the pinnacle of Maslow's hierarchy are experiencing the greatest fulfillment in their lives, the greatest satisfaction with who they are and what they are doing (personally and professionally) and enjoying true freedom.

The Four Levels of Freedom

It's obvious that Maslow's hierarchy, or more specifically McDermid's pyramid representation of Maslow's hierarchy, influenced my own Four Levels of Freedom hierarchy.

As with Maslow's hierarchy, the higher a business owner moves on the Four Levels, the greater their freedom.

Struggle

This is the level where most new business owners begin, and many small businesses never move beyond.

At the struggle level, the owner is responsible for both running the business and also delivering all or most of a product or service.

They're working long hours, most weekends, vacations are Christmas and Thanksgiving Day, and cashflow is "feast or famine".

At the struggle level of freedom, the owner actually owns a job rather than a business.

They're not very free... or very happy.

Competent

At the competent level of freedom, if a small business owner didn't already have a few employees, they've hired a number now to share the workload.

The owner is still very involved in the day-to-day operations, but able to delegate some of their responsibilities for running the business and delivering product or services.

Long hours are still the norm, but with help, the owner can take weekends off every now and then, cashflow is still stressful in the "off season", but more predictable.

At the competent level of freedom, the owner still owns a job rather than a business, but at least they have more control over the business and they're content.

However, content is not happy, and control is not freedom.

Experienced

A tipping point occurs between the competent and experienced levels of freedom, with the business owner finally moving from owning a job to actually being a business owner.

At this level, the owner has hired a professional staff, they're doing very little of the "technical" work of the business as they spend much more time working on the business to make it better.

At the experienced level of freedom, the owner has to work less, but the business is still heavily dependent on their day-to-day involvement. There is time away from the business, but that time is limited.

The owner has more freedom, and is happier to be sure, but owning the business may no longer be fulfilling.

With a taste of freedom, they hunger for more, but they're not sure how to get it, how to get to the next level of freedom.

Freedom to Exit

When a business and its owner have reached the pinnacle of the Four Levels of Freedom, they have achieved the Freedom to Exit level of freedom.

The owner has fewer phone calls to take and return.  Fewer emails to read and reply to.

They have a Leadership Team in place who shares in the responsibility of running and growing the business.

All of the owner's time is spent working on the business rather than working in the business, doing only the work that they love most and is fulfilling.

The owner can take as much time as they want away from the business, because they're no longer necessary or needed!

When a business is operating at the Freedom to Exit level of freedom, the owner can choose if and when they want to exit.

This is true freedom.  This is true happiness.  This is Maslow's "Self-Actualization".

Are You Operating at the Pinnacle of Freedom?

Are you experiencing true freedom at the pinnacle of Maslow's pyramid, Self-Actualization?

At what level of freedom are you operating your business?

Take my short Four Levels of Freedom Survey to share your answer and in return, I'll share with you what other small business owners have said their level of freedom is.

If you're interested in making your small business Freedom Focused, which maximizes your personal and professional freedom, and creates your "freedom to exit", then click here to learn more about our Freedom Focused courses.

And, don't forget to stay...

Focused on your freedom!

Listen to the podcast episode: #018 Have You Reached the Pinnacle of Freedom?

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