Research

The Key – Launch Webinar

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Join our webinar on Tuesday 10th June 2014 to celebrate the launch of Lynda Gratton’s latest book, The Key: How Corporations Succeed by Solving the World’s Toughest Problems.

Lynda Gratton will be launching her latest book, The Key: How Corporations Succeed by Solving the World’s Toughest Problems with a webinar on Tuesday 10th June 2014.

In this webinar, Lynda will explore the ways in which today’s corporations – already bigger, wealthier and more powerful than ever before – can ensure a resilient future. Drawing on research from her book The Key, which includes over 20 case studies fromVodafoneNaturaTata Consultancy Servicesand others, Lynda will look at how corporations can use their wealth, power and wisdom to combat global challenges such as climate change, youth unemployment and global poverty.

The webinar will take place on Tuesday 10th June 2014, 5pm-6pm BST. To register, email us at rsvp@hotspotsmovement.com.

The New Talent Innovation

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By Lynda Gratton

Our talent landscape is evolving. Demographic shifts are changing where the world’s workforce will be located, with some countries entering a period of demographic dividend with millions of young people entering the workforce. At the same time, other countries are seeing their workforce age, with fewer people planning to retire in their 60s.

Organisations are also becoming keenly aware of a growing skills gap between their requirements and the available talent pool. Advances in technology have placed many middle-skill jobs under threat, while increasing demand for high-skilled roles that are intrinsically difficult to automate or standardise. This creates a range of opportunities for ambitious young people – but also means that they want to be able to retrain and upskill in order to increase their value in the workplace.

The scarcity of middle-skill jobs has made it easier for organisations to attract the best talent – but the emerging need for development opportunities means that retention is proving more difficult. This is an issue we explored in the  “Future Talent Survey” conducted by my Future of Work Research Consortium which brings executives from more than 50 global companies together to talk about issues around human capital and the future. We discovered that of the three largest generations at work (Baby Boomers, born 1945-64; Generation X, 1965-79; Generation Y, 1980-94), executives believe that it will be Gen Y who will be the most difficult to retain.

These changes have created an unprecedented requirement for innovation when it comes to talent strategy. Faced with a generationally and culturally diverse workforce that is tasked with performing increasingly complex jobs, many organisations are looking for new ideas to help them cater to the needs of their talent pool. Very often at this stage talent experts turn to development experiences and training programmes to solve the problem. These certainly have their role to play – but in this article I would like instead to focus on a talent development and retention issue I believe to be crucial and undervalued – that is the design and configuration of work.

As I see it, there are two ways in which companies can cater for all this emergent complexity and diversity. The first is to ensure their most talented employees are able to maintain high performance in the face of complex work by taking an active role in enhancing their intellectual leverage and emotional vitality – a strategy which has the added effect of enhancing the organisation’s own internal resilience. And the second is to equip themselves with the tools and processes to to provide for the needs of workers from a range of different demographics and life stages.

Enhancing intellectual leverage and emotional vitality

As I show in my book The Key: How Corporations Succeed by Solving the World’s Toughest Problems, enhancing employees’ intelligence and emotional vitality has a vital part to play in helping organisations build the layer of inner resilience they need for the future.

Resilience starts with what happens inside the corporation – with an intellectually challenging, emotionally vibrant and socially connected community of employees. Some companies, like Tata Consultancy Services and Cisco are already using newly emerging intranet technologies to amplify the intellectual ideas and knowledge of employees across their businesses. They are ensuring that they gather the social wealth held in the different communities of people and in the networks that crisscross the company and span its boundaries.

Other organisations realise that ignoring emotional vitality has long-term implications, because among the workforce it is younger workers – the leaders of tomorrow – who prize wellbeing most highly. Last year I conducted, with USC the PwC Millennials Survey. What this clearly showed was that this young generation of employees are very conscious that they will not be retiring at 55 or 65 like their grandparents and are concerned with maintaining their health and achieving a work-life balance. It was clear that recognising and supporting these priorities is an important part of keeping these younger workers engaged. At the same time, many workers of the Baby Boomer generation are putting off retirement age and remaining in the workplace – and this ageing demographic also has more complex wellbeing needs than the traditional 20-65 year-old worker.

The importance of the work-home cycle

In a joint study on stress at work I conducted with As Dr Hans-Joachim Wolfram shows, we discovered that the work-home cycle also has a huge role to play when it comes to managing emotional vitality and combating stress. This cycle can be either caustic and draining, or positive and enhancing.  It becomes caustic when an employee leaves work feel stressed, tired and demotivated – and leaves home feeling guilty or anxious about not fulfilling family obligations. The cycle is positive when an employee leaves home feeling authentic and resilient, and leaves work feeling networked and inspired by things they have learnt. It is this positive spillover into their home life which creates a reinforcing positive cycle: in this context, work is good and the knowledge and connections gained there can be a source of support for the family.

Really helping talented people manage this emotional cycle between work and home is vital. To fail to do so leads to the ‘emotional lock-down’ that can be so dangerous for creativity and innovation. And yet the simple truth is that it is this group who are most likely to be working under pressure, putting in the longest hours and travelling the most. To get the balance of the work-home cycle right is hard, and it starts with realising that work and home as not two unconnected spheres, but are highly connected. For example, as Harvard Business School Professor Clay Christensen has observed, managers have an incredibly important influence on whether the work-home cycle is positive or negative. As a result, companies must think about how they support families and whether their talented employees have enough scope to ensure a cycle of positive emotional spillover.

Customised careers

It’s also time to think hard about how to design jobs in a way that enhances rather than denudes the emotional vitality of employees. For some, like BT, the wide-scale adoption of flexible working is allowing people to manage their own time in a positive and enhancing way. Others, like Deloitte are thinking hard about how to break the career hierarchies and introduce a matrix process that allows people to increase or decrease their contribution at different stages of their working life.

When we surveyed members of the Future of Work Research Consortium for a ‘Future Talent Report’, many of them highlighted the importance of career customisation in increasing retention. By providing talented people with the ability to determine their own development experiences, and with longer-term aspirational goals, organisations create a sense of purpose, empowerment and trust.

The report also highlighted that whilst many large corporations have flexible working arrangements, when it comes to improved job design – by which I mean initiatives such as phased retirement, job share schemes and, on- and off-boarding ramps, few are adequately prepared. I estimate that such companies have a period of three years at most to introduce these elements of job design before the lack of them starts to have a serious impact on the retention of their most talented people.

The importance of scale

So why are so many companies struggling with this? One reason is idea of job design and career customisation is associated with motherhood. When a talented woman leaves an organisation, there is an implicit assumption they are doing so to start a family. In fact, as I have seen with my MBA students at London Business School, when they leave a company, it’s to start their own business. And a key reason for this is that doing so is because it empowers them to take charge of their own job design.

This talent drain is just one reason why companies need to ramp up their experiments and pilots in the field of job design and then really focus on scaling and mobilizing around these crucial issues. That is because the challenges of emotional vitality are about to get worse. As I’ve mentioned elsewhere, life stage is becoming an increasingly important factor in people’s career choices – and people reach these stages at vastly different ages. For example, some employees will choose to become parents in their 20s, while others will do so in their 40s. As people start to live longer, we will see more of them rejecting traditional linear career paths and opting for careers that move sideways, downwards, or even pause for a while. It is the companies that are learning to deal with these issues already – and the ones that act now to start handling them more effectively – that will prove resilient over the coming decades.

The solution to this problem is to make work and careers more customised, fluid and transparent. Healthy, vital employees want control over how, when, where they work and to manage their work and their careers in tune with the rhythms of their life. To enable this, employers need to let workers know that the design of their job can change according to their circumstances and that customisation is available to everyone, not just mothers. For example, Vodafone has created a culture where flexible working is not a privilege for which employees must ask for permission, but something employees can choose to do as and when the need arises. This change has had a marked effect on their retention rate.  Above all, they need to know what their options are at each stage of their life and career, so that they can make the appropriate choices.

A resilient future strategy

It’s clear that today’s organisations need to develop the ability to create an employee value proposition powerful enough to appeal to the demands of an increasingly diverse and global talent pool – a challenge that requires considerable effort and innovation.

Providing talent with constant development and ample opportunities for enhancing emotional vitality is not easy – but the benefits in terms of talent retention and organisational resilience are immense. By providing talent with the ability to determine their own career experiences, and with longer-term aspirational goals, organisations create a sense of purpose, empowerment and trust.

To achieve this, organisations must shift their focus, dividing it more equally between identifying and recruiting and their ability to retain high-value individuals. They must also recognise that younger generations are starting to expect more from their work, both in terms of the quality of their experiences and the meaning and purpose of their roles, while older workers will have differing requirements depending on their life stage. By integrating strategies such as career customisation into their talent strategy, businesses can go a long way to enhancing emotional vitality in ways that will not only increase retention, but will also prepare them for the entry of the next generation – Gen Z – into the workforce.

Lynda Gratton is a Professor of Management Practice at London Business School where she directs the program ‘Human Resource Strategy in Transforming Companies’ – considered the world’s leading program on human resources. Her latest book, The Key: How Corporations Succeed by Solving the World’s Toughest Problems, is out on 9th June.

 

Building resilience in a fragile world

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By Lynda Gratton
We live in a fragile world. Every one of us faces profound and escalating challenges– youth unemployment touches many families; income inequality and poverty are a source of shame for many of us in developed countries; whilst it is only the least observant who could fail to recognise the early signs of a profound change in the climate. These challenges are no longer particular to one country or area: they affect most people around the world.

The challenges faced by organisations are no less complex. They too are faced with the implications of climate change, of inequality, and of the gap between their needs and the available pool of talent. These challenges are on a greater and more global scale than ever before, and emerging at an ever faster trajectory. Previously stable companies find themselves on shaky ground – and the negative consequences of the problems that surround them are proving difficult to reverse.

Over the last five years I have directed the Future of Work Research Consortium which brings together executives from more than 50 companies to consider how best to address these challenges. What is clear is that resilience is the key, and to build resilience companies will be called upon to develop a whole new set of tools and ways of innovating.

Building inner resilience

Resilience starts with what happens inside the corporation –with an, intellectually challenging, emotionally vibrant and socially connected community of employees. Those companies, like Tata Consultancy Services and Unilever who are attempting to do this, are using newly emerging technology to amplify the intellectual ideas and knowledge of employees across their businesses. They are ensuring that they gather the social wealth held in the different communities of people and in the networks that crisscross the company and stretch beyond its boundaries.

Executives also need to think hard about how to design jobs in a way that they enhance rather than denude the emotional vitality of their employees. For some, like BT, the wide-scale adoption of flexible working is allowing people to manage their own time in a positive and enhancing way. Others, like Deloitte are thinking hard about how to break the career hierarchies and introduce a matrix process that allows people to increase or decrease their contribution at different stages of their working life.

The importance of outer resilience

Creating a foundation of resilience is critical – and in some corporations there is also a focus on building resilience in supply chains and in the wider world they operate in. This is crucial because increasingly companies do not exist independently of the rest of the world, and their future is reliant on their interaction with the communities in which they are embedded.

I saw this at Danone where people across the company are actively working with farmers in their supply chain to ensure that they are building strong communities – the John Lewis Partnership is doing the same in the UK. These are corporations that are facing the challenges of our increasingly fragile world head-on, by recognising their connection with the outside world. They understand that their businesses are profoundly related to the communities in which they work and are able to think differently and comprehensively about the larger environment in which they operate. Some, like Royal Dutch Shell, are using scenario planning to help executives really become aware of the forces shaping their lives and their businesses. It is this awareness that will enable them to face these forces in a positive way, seeing them as opportunities rather than threats. The final piece of the puzzle is leadership: building resilience needs leaders who are prepared to balance long- term needs with short- term financial results.

What is clear to me is that being resilient requires making the choices that are positive for employees, investors and those in the communities they touch.

Lynda Gratton’s latest book, The Key: How Corporations Succeed by Solving the World’s Toughest Problems, is out on 9th June.

MIT engages teenager to help design MOOCs

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Emma

by Emma Birchall, Head of Research, Future of Work
MIT is currently working on the format of its mass open online courses (MOOCS) with the help of a 17 year-old student from MongoliaBattushig Myanganbayar managed a perfect score on one of the university’s electronic engineering courses when he was just 15. Now a student at MIT, he is also helping them design the courses in a way that will appeal to high school students and others who don’t already have a degree-level education.

MIT aren’t the only ones interested in what Gen Z thinks – we’re conducting a Gen Z survey as part of our Talent Innovation theme for the Future of Work Research consortium. To find out how your organisation can get involved, contact tina@hotspotsmovement.com.

Serious games and collaboration

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Dr. Howard B. Esbin By Dr Howard B Esbin, Heliotrope, Founder & Director Guest poster Dr Howard B Esbin takes a look at the primal origins of play, the history of using games as a collaborative tool, and their growing importance for modern business.  It takes just 0.41 seconds for Google’s search engine to list 16, 200,000 results on the twinned topic of serious games and collaboration. The following search headings are representative.

  • Designing collaborative multi-player serious games
  • Problem solving and collaboration using serious games
  • Scripted collaboration in serious gaming for complex learning
  • Collaboration in serious game development: a case study
  • Problem solving and collaboration using mobile serious games

Let’s start with the term ‘collaborate’. It stems from the ancient Latin ‘collaborare’ meaning to ‘work with’. The contemporary definition is “work jointly on an activity, esp. to produce or create something”  (New Oxford American Dictionary). ‘Cooperation’ also stems from the Latin ‘cooperationem” meaning “working together”. The semantic roots of both words are closely intertwined for good reason. The science of evolutionary cooperation offers some insight why. Cooperation is practised by many species. Bees, for example, cooperate to produce their hives and honey. Humans learned, through long experience and adaptation, that cooperation is an immense asset for survival. ‘Play’ is another activity, like cooperation, with primal roots. “Anyone who has ever tossed a Frisbee to a beloved dog knows that playfulness crosses species lines. What does this mean? For humans and other animals, play is a universal training course and language of trust” (Fred Donaldson). Games grew naturally out of play. The original Proto-Germanic meaning of ‘game’ included: ‘joy, glee, sport, merriment, participation, communion, people together.’. In other words, our ancestors understood that games brought people together. ‘Communion’ a natural outcome is defined as “the sharing or exchanging of intimate thoughts and feelings, esp. when the exchange is on a mental or spiritual level” (New Oxford American Dictionary). “Games are formalized expressions of play which allow people to go beyond immediate imagination and direct physical activity. Games capture the ideas and behaviours of people at one period of time and carry that through time to their descendants. Games like liubo, xiangqi, and go illustrate the thinking of the military leaders who employed them centuries ago.”

Ceramic tomb figurines of two gentlemen playing liubo, Han Dynasty (25–220 CE)
Ceramic tomb figurines of two gentlemen playing liubo, Han Dynasty (25–220 CE)

Liubo, for example, pictured in the photo below is at least two thousand years old. “The realm of strategy… is where games have exerted the most remarkable impact on the conduct of war, serving as a tool for, as one U.S. Army general put it, “writing history in advance”.  Apropos, Lord Wellington is supposed to have famously said, “the battle of Waterloo was won on the playing fields of Eton”. So we now understand that the role of play and games has been educational for a long time and instrumental in helping people work together more effectively. There are now 7.151 billion people living on this planet (as estimated by the United States Census Bureau). Practically speaking, anyone can contact anyone else thanks to ubiquitous Internet, inexpensive communication technologies, and almost free accessibility. Collaboration Play and games can stretch our imaginations in so many different and beneficial ways. Giving the means to billions of people is an immense phenomenon. No wonder the “worldwide video game industry is booming with sales revenues expected to reach $101 billion dollars this year”. For example, “1 billion people spend at least 1 hour a day playing games…(which means) 7 billion hours of highly engaged gameplay a week worldwide” (ibid). On the other hand, “89% of global workers are unengaged” according to Gallup (ibid). This is costing an estimated “$2 trillion dollars is the estimated cost of unengaged workers for companies annually” (ibid). Simply put, “realizing the engagement power behind games, companies…are looking to gamification as a way to better its productivity and employee satisfaction” (ibid). Deloitte Consulting’s Leadership Academy is a good example of this burgeoning trend. “DLA is an online program for training its own employees as well as its clients. DLA found that by embedding missions, badges, and leaderboards into a user-friendly platform alongside video lectures, in-depth courses, tests and quizzes, users have become engaged and more likely to complete the online training programs… Using gamification principles, use of its Deloitte Leadership Academy (DLA) training program has increased 37% in the number of users returning to the site each week. Participants are spending increased amounts of time on the site and completing programs in increasing numbers…The technology research firm Gartner, Inc. predicts gamification will be used in 25 percent of redesigned business processes by 2015, this will grow to more than a $2.8 billion business by 2016, and 70 percent of Global 2000 businesses will be managing at least one “gamified” application or system by 2014.” In conclusion, the relation between serious gaming and collaboration has never been clearer or its value more immediate. Dr. Howard B. Esbin is the creator of Prelude, a serious game that fosters trust and collaboration. It is used in schools, community agencies, and workplace training internationally. Its design is informed by his research on social learning, imagination, and positive psychology. He founded Heliotrope, a social enterprise to promote Prelude and related research. Howard also has two decades of senior management experience in the private sector, international development, and philanthropy. The International Labour Organization, Education Canada, and UNESCO have published his work. 

Sex: Does it Make You Better at Your Job?

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By Emma Birchall, Head of Research – Future of Work

The link has been contested for centuries with Plato warning Olympians to abstain before competitions. Sex is, of course, just one of the long list of activities we are told to do or to avoid in order to concentrate better, be more creative, have more energy and generally succeed in our work. So, what’s the answer? How do we know what works and what doesn’t? Well, the latest development in the movement to quantify everything could help. Forget the Quantified Self – which tracks calories burned, miles run and steps taken – we now have the Quantified Mind. This movement promises to capture data on our mental performance, day-to-day and year-to-year, identifying patterns of behaviour that enable us to be our best. For some people, this may mean abstaining from sex, but being sure to have a full breakfast. For others, perhaps the combination of meditation and meetings scheduled for 4pm rather than 3pm is the winning formula.

To produce the data required to identify winning behaviour patterns, companies such as QuantifiedMind provide people with a series of tests they must complete before and after the activity in question. Ever wondered whether your morning latte really does increase your alertness, or if it is merely a habit or placebo? Join Quantified Mind’s Coffee experiment and, by completing a set of tests each day before and after having your coffee, you will produce a set of data that indicates how this routine activity really helps or hinders your performance.

But, how accurate is this data on the complex relationship between an activity and subsequent performance? Critics such as John Bogle, founder of investment company Vanguard, argues that “Numbers are not reality. At best, they are a pale reflection of reality. At worst, they are a gross distortion of the truths.” Hence, relying on statistics to create a direct causal link between one activity and another could be misguided given all the distractions, events and emotions that influence our performance on a given day. Even if the data does provide some clues as to how to increase our effectiveness, is this a path we want to go down as individuals and as society, tracking our thoughts, actions and behaviours to the point that it becomes oppressive and perhaps even narcissistic? If the success of the Quantified Self movement is any indicator, these concerns will surely be overshadowed by our curiosity and innate desire to do all we can to enhance our performance. If your colleague skips their morning coffee tomorrow before submitting a winning proposal, you too may find yourself more curious than concerned about your Quantified Mind.

Exploring mega-trends with GEA

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Emma

by Emma Birchall, Head of Research, Future of Work

Earlier this month I was in Dusseldorf delivering one of our new workshop formats for engineering firm GEA – a combination of our latest research, insights from the Future of Work Research Consortium and company-specific data.

GEA holds regular monthly meetings of their senior HR leadership and wanted to initiate discussion about their future HR strategy by preceding one of their meetings with a workshop discussing the mega-trends and how they are impacting GEA, and in particular its HR function. It was a useful opportunity to take time to think about these mega-trends, which affect and drive much of the company’s HR strategy.

The workshop we devised was divided into two parts: a morning session during which we discussed the mega-trends we’ve identified during our research and an afternoon session which applied these trends to GEA and extrapolated the challenges they are likely to face in light of these trends.

The one thing we needed to make the afternoon session work was data on how GEA is currently dealing with major challenges. To obtain this we sent our Future of Work diagnostic to all attendees in advance of the workshop, and invited them to complete it and send it to other members of their teams.

Using this information, we were able to give the attendees three different perspectives on mega-trends: how they will affect the corporate community as a whole; the trends FoW members feel will be most important over the coming two decades; and the trends and challenges GEA considers most important. There were often differences in these data sets: for example, a number of things FoW members thought would be important were less important to GEA. We were then able to examine this at a deeper level and encourage attendees to consider the reasons for the different perspectives, weighing up whether their industry make some issues less relevant than others, or whether there are some trends to which they need to pay more attention.

The real value of this for GEA is that we were able to give them access to what we know about trends and help them apply it to their current challenges and to a specific rather than speculative future.

We’re hoping to run some more of these workshops over the coming months – contact tina@hotspotsmovement.com if you’d like to learn more.