BONUS SECTION! Reprinted from the best selling book One Page Talent Management
A message from the President of Executive Development at UNC Kenan-Flagler Business School
Greetings again from the University of North Carolina at Chapel Hill. We have had a productive year in executive development, and I am excited to share with you that our efforts were reflected in the annual Financial Times ranking of executive education providers. UNC Kenan-Flagler was ranked 8 in the world for custom executive education and
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This volume also features a chapter from whats been called the talent management bible - Marc Effrons and Miriam Orts One Page Talent Management. This practical, sciencebased guide to accelerating talent growth has become a best seller in talent management circles, and the chapter weve included outlines the barriers to building talent and the philosophy for successful talent development based on simplicity, accountability, and transparency. The other two white papers included in this volume examine new trends in talent development. Got Game? The Use of Gaming in Learning and Development takes a serious look at how gaming technology can be used to develop organizational talent. The Big Data Talent Gap explores the talent implications of the big data revolution. I hope that this journal provides value to you and that you find some useful, actionable ideas within it that you can apply in your own organization. All of our white papers, research projects, and webinars are available in the resource library on our website (www.uncexec.com). As always, thank you for your support of UNC Executive Development.
4th among U.S. institutions. We also ranked highly in many individual categories, notably 2 in the world for value, 1
nd st
among our U.S.-based competitors. We are very pleased to be recognized by our partners for the value we bring to their organizations through their talent development efforts. In addition to this news, I am also happy to share with you the latest volume of ideas@work, our white paper journal dedicated to exploring critical issues and best practices in talent management. Two of our papers focus on todays volatile and constantly changing business environment. Developing Leaders in a VUCA Environment provides talent managers with ideas, guidance, and examples on how to address the shift needed in leadership development to adapt to the new normal, while Building a Resilient Organizational Culture focuses on how to cultivate and nurture a culture of resilience at all levels of the organization.
Consistently ranked one of the worlds best business schools, UNC Kenan-Flagler Business School is known for experiential learning and teamwork, superior teaching, innovative research, and a collaborative culture. Our commitment
to developing socially responsible, results-driven leaders distinguishes our programs. We educate people at every stage of their careers and prepare them to lead successfully in the global business environment.
At UNC Executive Development, we are committed to providing new, impactful learning experiences to help our partners successfully manage and develop their employee talent.
(Note: The information or conclusions expressed in the following white papers are the authors review of findings expressed by the organizations. All brand representations are registered trademarks owned by the respective companies or organizations.)
Introduction
In The World Is Flat, Thomas Friedman notes that the rate of change today is much different than in the past. Whenever civilization has gone through one of these disruptive, dislocating technical revolutionslike Gutenbergs introduction of the printing pressthe whole world has changed in profound ways, he writes. But there is something different about the flattening of the world that is going to be qualitatively different from other such profound changes: the speed and breadth with which it is taking hold.This flattening process is happening at warp speed and directly or indirectly touching a lot more people on the planet at once. The faster and broader this transition to a new era, the more likely is the potential of disruption. To put it another way, the experiences of high-tech companies in the last few decades who failed to navigate the rapid changes brought about in their marketplace by these types of forces may be a warning to all the businesses, institutions and nation states that are now facing these inevitable, even predictable, changes but lack the leadership, flexibility and imagination to adapt not because they are not smart or aware, but because the speed of change is simply overwhelming them. This rapid flattening, as Friedman calls it, is creating a new environment that strategic business leaders are increasingly calling a VUCA environment. Coined in the late 1990s, the military-derived acronym stands for the volatility, uncertainty, complexity, and ambiguityterms that reflect an increasingly unstable and rapidly changing business world. This new VUCA environment will require HR and talent management professionals to change the focus and methods of leadership development.
Promise
This white paper: D iscusses the history of VUCA and how it applies to business strategy and development. E xplores how VUCA is relevant to leadership development. D iscusses the VUCA Prime, which flips the acronym to focus on vision, understanding, clarity, and agility. O ffers suggestions on what HR and talent managers must do to change their leadership development approach to foster leadership vision, understanding, clarity, and agility.
Example: Unilever
In 2010, Unilever, one of the worlds largest consumer goods companies, pledged to double the size of their business in the next 10 years while reducing its environmental footprint and increasing its social impact. Sustainability became a central component of their new business model, one based on VUCA principles. When asked by Forbes contributor Avi Dan why they changed their business model, Keith Weed, chief marketing and communication officer for Unilever, responded: We look at the world through a lens, which we call VUCA, which stands for Volatile, Unstable, Complex, and Ambiguous. So you can say, Its a very tough world, or you can say, Its a world thats changing fast, and we can help consumers navigate through it. Two-and-a-half billion more people will be added to the planet between now and 2050, of which 2 billion will be added in developing countries. The digital revolution, the shift in consumer spending, all this suggests that companies have to reinvent the way they do business. (Dan, 2012.) To meet that VUCA challenge, Unilever has also changed its leadership development model.
Source: Sullivan, 2012 January.
VUCA Defined
The V in the VUCA acronym stands for volatility. It means the nature, speed, volume, and magnitude of change that is not in a predictable pattern (Sullivan, 2012 January 16). Volatility is turbulence, a phenomenon that is occurring more frequently than in the past. The BCG study found that half of the most turbulent financial quarters during the past 30 years have occurred since 2002. The study also concluded that financial turbulence has increased in intensity and persists longer than in the past. (Sullivan, 2012 October 22). Other drivers of turbulence in business today include digitization, connectivity, trade liberalization, global competition, and business model innovation (Reeves & Love, 2012). The U in the VUCA acronym stands for uncertainty, or the lack of predictability in issues and events (Kinsinger & Walch, 2012). These volatile times make it difficult for leaders to use past issues and events as predictors of future outcomes, making forecasting extremely difficult and decision-making challenging (Sullivan, 2012 January 16).
U C
The C in VUCA stands for complexity. As HR thought leader John Sullivan notes (2012 January 16), there are often numerous and difficult-to-understand causes and mitigating factors (both inside and outside the organization) involved in a problem. This layer of complexity, added to the turbulence of change and the absence of past predictors, adds to the difficulty of decision making. It also leads to confusion, which can cause ambiguity, the last letter in the acronym. Ambiguity is the lack of clarity about the meaning of an event (Caron, 2009), or, as Sullivan writes, the causes and the who, what, where, how, and why behind the things that are happening (that) are unclear and hard to ascertain. (2012 January 16). Col. Eric G. Kail defines ambiguity in the VUCA model as the inability to accurately conceptualize threats and opportunities before they become lethal. (Kail, 2010 December 3). A symptom of organizational ambiguity, according to Kail, is the frustration that results when compartmentalized accomplishments fail to add up to a comprehensive or enduring success.
Example: McDonalds
Fast-food giant McDonalds was a frontrunner in adapting VUCA and VUCA Prime principles in its leadership development programs. In 2001, the company launched a new leadership development program for high-potential Regional Manager candidates. The company realized that there was a need for a specialized leadership development program for this position because the expectations and challenges for the role had changed significantly over the previous decade. These expectations and challenges included heightened competition, the increased challenge of a growing market share, increased job autonomy as the organization became more decentralized, and the increased expectation for regional managers to act strategically as well as tactically. The new leadership development program included the following goals:
1. To help participants take a critical look at themselves and their current management capabilities and to develop a personal learning plan that could help them increase the likelihood of success in a regional manager role. 2. To provide participants with action-learning assignments that would help them increase their understanding of the business while also contributing to the development of practical solutions to address significant business issues they worked on. 3. To give participants the opportunity to build relationships with peers from across the organization. 4. To demonstrate the power of action learning as a model to accelerate the development of leaders.
The goals of this program acknowledge some key VUCA Prime skills and abilities, including self-awareness, knowledge of the business beyond the functional area, innovative and critical-thinking skills, collaboration, and the importance of rapid learning within the organization.
Source: Intagliata & Small, 2005.
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other attributes leaders may need in future business environments. Leadership development programs based on VUCA principles can also include scenario training where participants can anticipate possible future challenges and devise possible solutions. This can make leaders more confident when they actually encounter a new situation. Scenario training should be conducted frequently so that reactions become part of the leaders muscle memory. (Sullivan, 2012 January 16). Simulations are also powerful learning tools when developing VUCA leaders because they give participants a chance to practice skills in a safe, non-threatening environment. Simulations can range from classroom role plays, to day-in-the-life assessment centers, to virtual simulations. Simulations can also help leaders assess their strengths and weaknesses, making them
more aware of their own skills and gaps (Lanik & Eurick, 2012). Simulations are appealing across generations, but they have particular appeal to younger high potentials. This generation has learned many of the desired VUCA leadership skills by playing video games. To develop collaboration and to encourage thinking outside the box, HR and talent managers should also consider the use of job rotation to help leaders think beyond their functional areas. HR and talent development professionals who can foster adaptability, innovation, and agility in their leaders will realize tangible rewards. The Adaptive Advantage Index developed by BCG measures how well organizations adapt to turbulence. They calculated the adaptability scores for 2,500 companies in the United States over a 30-year period and found that the ability to adapt creates value over the short and long-term (Reeves & Love, 2012).
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Step 3: Foster an Organizational Culture that Rewards VUCA Prime Behaviors and Retains Agile Employees.
To survive in a VUCA world, organizations must do more than hire and develop agile leaders; they must create an organizational culture that rewards the desired behavior. HR and talent management professionals can play an integral role in developing a VUCA culture by rewarding innovation, agile behavior, and calculated risk-taking. Performance management systems should reflect VUCA Prime values and attributes.
Rewards for desired behaviors could include different incentives including job perks, additional compensation, promotions, and preferred work assignments. A key to the best rewards systems in a VUCA environment is to not be rigid and to offer successful leaders rewards that appeal to them the mostin other words, be adaptable and agile. The organizational culture that promotes and rewards agile leaders will begin to perpetuate itself and attract and retain the type of innovative and agile talent that businesses today are seeking. It will also provide businesses a competitive advantage in our ever-changing global marketplacewhich is the ultimate VUCA environment.
V U C A
Conclusion
The volatility, uncertainty, complexity, and ambiguity inherent in todays business world is the new normal, and it is profoundly changing not only how organizations do business, but how business leaders lead. The skills and abilities leaders once needed to help their organizations thrive are no longer sufficient. Today, more strategic, complex critical-thinking skills are required of business leaders. HR and talent management professionals can help their organizations succeed in todays VUCA environment by developing leaders who can counter volatility, uncertainty, complexity, and ambiguity with vision, understanding, clarity, and agility.
Apollo Research Institute staff (2012 March). The VUCA world: From building for strength to building for resiliency. Apollo Research Institute. Retrieved from http:// apolloresearchinstitute.com/sites/ default/ files/future-of-work-report-the-vuca-world. pdf. Caron, D. (2009 February 08). Its a VUCA world. CIPS. Retrieved from http://www. slideshare.net/dcaron/its-a-vuca-world-cipscio-march-5-2009-draft. Dan, A. (2012 October 14). In a VUCA world, Unilever bets on sustainable living as a transformative business model. Forbes. Retrieved from http://www.forbes.com/ sites/avidan/2012/10/14/in-a-vuca-worldunilever-bets-on-sustainable-living-as-atransformative-business-model/. Forum staff (2010). Speed in a VUCA world: How leaders of the future will execute strategy. Forum. Retrieved from http://www. forum.com/downloads/transcripts/vucainterview-2010-final.pdf. Horney, N., Pasmore, B. & OShea, T. (2010). Leadership agility: A business imperative for a VUCA world. People & Strategy, 33, 4.
Intagliata, J. & Small, D. (2005). McDonalds Corporation: A Customized Leadership Development Program Targeted to Prepare Future Regional Managers. Best Practice Champions in Organization Development and Change (Eds. Lou Carter, Dave Ulrich, Marshall Goldsmith and Jim Bolt), Jossey Bass. Kingsinger, P. & Walch, K. (2012 July 9). Living and leading in a VUCA world. Thunderbird University. Retrieved from http://knowledgenetwork.thunderbird.edu/ research/2012/07/09/kinsinger-walch-vuca/. Kail, E. (2010 December 3). Leading effectively in a VUCA environment: C is for complexity. HBR Blog Network. Retrieved from http://blogs.hbr.org/frontlineleadership/2010/12/leading-effectively-in-avuca.html. Kail, E. (2011 January 6). Leading effectively in a VUCA environment: A is for ambiguity. HBR Blog Network. Retrieved from http:// blogs.hbr.org/frontline-leadership/2011/01/ leading-effectively-in-a-vuca-1.html.
Kavanaugh, S. & Strecker, G. (2012 September 20). Leading learning in VUCA times: How does a volatile uncertain complex ambiguous context impact strategy? Chief Learning Officer. Retrieved from http://www. slideshare.net/humancapitalmedia/920-cloarielgroupfinalslidesv2. Knight, B. (2011 September 7). P&G CEO Bob McDonald on values-based leadership. Owenbloggers.com. Retrieved from http:// www.owenbloggers.com/2011/09/07/ pg-ceo-bob-mcdonald-on-value-basedleadership/. Lanik, M. & Eurich, T. (2012 June 28). Simulate leadership for success. Chief Learning Officer. Retrieved from http:// clomedia.com/articles/view/simulateleadership-for-success/print:1. Management Education Group staff (2011 November 1). Its a VUCA World. Management Education Groups, Inc. Retrieved from http:// managementeducationgroup.com/2011/11/ its-a-vuca-world/. Petrie, N. (2011 December). Future Trends in Leadership Development. Greensboro, NC: Center for Creative Leadership.
Reeves, M. & Love, C. (2012 August 21). The most adaptive companies 2012. Bcg. perspectives. Retrieved from https://www. bcgperspectives.com/content/articles/ corporate_strategy_portfolio_ management_ future_of_strategy_most_adaptive_ companies_2012/. Sullivan, J. (2012 January 16). VUCA: The new normal for talent management and workforce planning. Ere.net. Retrieved from http://www.ere.net/2012/01/16/vuca-thenew-normal-for-talent-management-andworkforce-planning/. Sullivan, J. (2012 October 22). Talent strategies for a turbulent VUCA world shifting to an adaptive approach. Ere. net. Retrieved from http://www.ere. net/2012/10/22/talent-strategies-for-aturbulent-vuca-world-shifting-to-an-adaptiveapproach. Supply Chain Quarterly staff (2010 December 20). P&G readies its supply chain for a VUCA world. Supply Chain Quarterly. Retrieved from http://www. supplychainquarterly.com/news/20101220 procter_and_gamble_revises_supply_chain/. WisdomatWork staff (n.d.). Navigation skills for thriving in VUCA times. Wisdom at Work. Retrieved from http://www. wisdomatwork.com/about/thriving-in-vucatimes/.
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If youre ready to
take the next step in your career, make a quick trip back to the classroom first.
E X E C U T I V E
D E V E L O P M E N T
I N S T I T U T E
At UNCs Executive Development Institute, youll gain the core knowledge of an MBA program without the long-term time commitment. Youll also learn how to view the business world from a senior executives perspective. And youll develop the key leadership characteristics that lead to effective strategic performance. The result? In two weeks, youll be fully prepared for that next step.
UNC EXECUTIVE DEVELOPMENT
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Introduction
The first patented video game, the Cathode Ray Tube Amusement Device, is celebrating its 65th birthday this year (Gettler, n.d.). This may come as a surprise to many, because people usually place the birth of video games in the 1970s or 1980s, when coin-operated video games became a mainstay in arcades, and the first game consoles appeared in American homes. Video gamesand the people who play themhave changed dramatically since 1948. Generations of gamers have grown up and entered the workplace, and video games have made the same transition, extending their influence into companies around the globe. Many organizations are increasingly using gaming technology in their learning and development programs to help build the next generation of business leaders.
Promise
This white paper: Explores the popularity of video games and the characteristics of the people who play them. Reviews different types of games and defines some video game terminology. Discusses how serious games can be used to develop organizational talent. Provides examples of companies using serious games to develop skills and behaviors. Examines the future of serious games in learning and development. firm, found that 211.5 millionor two-thirdsof Americans play video games (Boorstin, 2012). Americans arent just playing the free, preloaded games; they are buying them in droves. According to the Entertainment Software Association (ESA), consumers spent $24.75 billion on video games in 2011 (ESA staff, 2012). Puzzle games, board games, trivia, and card games are the most commonly played games (42 percent), but 25 percent of gamers also play action, sports, strategy, and role-playing games. The ESA also found that 62 percent of gamers play with others, either in-person or online, and most do so for at least an hour a week. Online simulation (sim) games have also grown in popularity, thanks in large part to the explosion of social media. Facebook, for example, boasts more than 100 sim games, among them Farmville 2, Airport City, and FrontierVille. These popular sim games were designed to entertain but have
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an educational component and are sometimes called edutainment games. In Farmville 2, for example, players create and manage their own farms; in Airport City, gamers manage a busy city airport; and in FrontierVille, players tame the wilderness and build a town. As video games grow in popularity and sophistication, an increasing number of organizations and government agencies have embraced them to support learning and development efforts. A recent ESA study found that 70 percent of major U.S. employers use interactive software and games for L&D purposes, and nearly eight out of 10 U.S. employers plan on doing so in 2013 (Steinberg, 2012).
Whos Playing
37% 31% 32%
Less than 18 years of age 18-35 years of age 36 years of age and older
Source: Entertainment Software Association (2012).
Advergames are games designed to advertise a product, organization, or cause (Derryberry, 2007). There are several types of advergames, but the goal is to promote a brand or organization while providing fun and entertainment. Serious games are video games designed to improve learning, and players engage in serious games with that understanding (Derryberry, 2007). Also known as immersive learning simulations, digital game-based learning, and gaming simulations, serious games are developed with specific learning outcomes in mind that will result in measurable, sustained changes in performance or behavior. Serious games have been used in emergency services training, military training, and health care settings to positive effect (Derryberry, 2007). According to Sue Bohle, executive director of the Serious Games Association, industry estimates range from $2-10 billion in revenue for serious games, depending on how much simulations and virtual worlds are included in the calculation (Maurer, 2012).
Whats in a Game?
There are three types of video games: casual games, advergames, and serious games. Casual games are intended for entertainment purposes and can include everything from the solitaire game that comes pre-loaded on most computers to complex multi-player games like Uncharted, Call of Duty: Modern Warfare 3, and Battlefield 3. These games are available in a number of formats, including PC, game console, and mobile. Although learning can occur when playing casual games, it is not an intended outcome (Derryberry, 2007).
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only 10 percent of what they read; 20 percent of what they heard; 30 percent if they used visuals related to what they heard; and 50 percent if they watched someone performing a task while explaining it. Students remembered 90 percent of what they learned, however, if they did the task themselves, even if it was as a simulation (IBM staff, n.d.). A recent study reported in Personnel Psychology (Sitzmann, 2011) found that trainees using serious simulation games had improved post-training efficacy (20 percent), higher declarative knowledge (11 percent), improved procedural knowledge (14 percent), and better retention (9 percent) than trainees in a non-simulation comparison group. The study also found that trainees in the simulation control group learned more when the game was used as a supplement to other instructional methods, rather than as stand-alone instruction. In contrast, a study by Adams, Mayer, MacNamara, Koenig, and Wainess (2012) found that narrative educational games resulted in poorer learning and took longer to complete than simply showing content on a slide. Ruth Clarke, an instructional design and technical training consultant, gave a possible explanation in a recent American Society for Training & Development article exploring the results of the study. Clarke speculates that the reason for this lack of learning may be because some game features are at odds with the games learning objectives. For example, many games time players, requiring them to complete tasks within a certain timeframe.
Gamification Explained
Gamification is the use of gaming techniques, game thinking, and game mechanics to enhance nongame contexts. Gaming techniques like questing, badging, and leader boards have been incorporated into workplace practices such as the onboarding process, career development, and performance evaluations. It should be noted that gamification techniques do not have to be rooted in technology. For example, leader boards can be visual aids posted in a department to motivate and inform workers about departmental goal achievement (such as sales). Gamification practices are particularly appealing to the Millennial generation who have grown up playing games that send them on quests, award them with badges, and post their achievements on leader boards, but the fundamental human need for recognition spans generations. Gamification can help fill that need and increase employee morale, retention, and job satisfaction.
Source: Pitt, 2012.
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For learning outcomes that are based on critical thinking skills, Clarke argues, timed games that reinforce speed are not a good match (Clarke, 2012). She recommends that HR and talent development professionals stick to serious games that emphasize drill and practice exercises for tasks that require immediate and accurate responses. The Federation of American Scientists, however, believes that serious games can have a broader L&D application and can teach higher-order thinking skills such as strategic thinking, interpretive analysis, problem solving, plan formulation and execution, and the ability to adapt to rapid changeskills U.S. employers increasingly look for in workers and new workforce entrants (Steinberg, 2012). A Harvard Business Review study concurs. The study, which focused on the leadership skills taught through the immensely popular video game, World of Warcraft, concluded that the game gave participants a sneak peek into tomorrows workplace. The games environment features fluid workforces, self-organized and collaborative work activities, and decentralized, nonhierarchical leadership; all features that will be prevalent in tomorrows business world. The game also allows for risk-taking and teaches participants how to work quickly and efficiently (Marinho, 2012).
MMORPGs can also help develop other desirable leadership skills. MMORPGs can closely match actual work environments and can be developed in such a way that the skills required to succeed in the game are similar to leadership skills employers want to see developed. These games can bring together millions of gamers who play the game through the use of avatars. Players interact with each other, form relationships, and join guilds (or teams) to collaboratively resolve missions (Melchor, 2012). MMORPGs mirror the business context more than you would assume, says Byron Reeve, Ph.D., professor at Stanford University and faculty director of the Stanford Media X Partners Program. They presage one possible future for businessone that is open, virtual, knowledgedriven, and comprised of a largely volunteer or at least transient workforce. (IBM & Seriosity staff, 2007). MMORPGs require cooperation and collaboration among many players to achieve a mission, and as such, can help teach such business skills as recruiting, organizing, and motivating and directing others to accomplish a shared goal in a safe environment where risk-taking, critical thinking, and creative problem solving is encouraged (Melchor, 2012).
Innovation Games
Innovation Games creates online and in-person games to help organizations solve problems across the enterprise in sales, corporate strategy, product development, and marketing by using collaborative play to tap into new innovation. They offer games designed to help organizations gain a better understanding of their key stakeholders inside and outside the organization.
Source: Innovation Games, n.d.
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IBM and Farmers Insurance have used the IBM-developed serious game, INNOV8, to teach the effect of business decisions on their organizations ecosystems. INNOV8 is a sim-style serious game where players manipulate their business models to make their cities less congested, their supply chains more effective, and their customers happier (IBM staff, n.d.). Northrop Grumman has also developed several serious games for use in development and recruitment. The award-winning Quality Tycoon game teaches players the effect that quality and ethical integrity have on business opportunities. Northrop Grummans Virtual Jet Works introduces students to engineering concepts and is demonstrated at college recruitment fairs (Serious Games Market staff, 2011). Ciscos The Cisco Mind Share Game facilitates network certification. Ultimate Team Play is used by the Hilton Garden Inn to teach employees customer service skills (Steinberg, 2012). And Dublin-based Front Square teamed with Serious Games International to develop Teddys Chocco Shop, a game that teaches employees the basics of lean manufacturing (Marinho, 2012). The U.S. Army was an early adopter of serious games. In fact, they are credited with coining the term serious game. The Army first released Americas Army in 2002 and updates the game every three to four months. Game versions include Americas Army: Special Forces and Americas Army: Overmatch. The Army also gained recognition from the Serious Games Market with First Person Cultural Trainer (FPCT), a 3-D cultural training simulation. The game places players in an unfamiliar community where they dont know how members of the community feel about them or who the community leaders are. The games goals are to have players move through the community, learn social structures and issues, and then work with the community to affect missions. FPCT challenges the Armys junior leaders to understand the consequences, good and bad, of their speech, body language, posture, temperament, and action, says Ben Jordan, director of TRISAs Operational Environment Lab, the Armys lead for the project. It even replicates physical micro-expressions, which users learn to identify as possible cues for threatening or non-threatening behaviors. (Roth, 2011).
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FoldIt
Foldit, an online puzzle video game developed by the Center for Game Science at the University of Washington in collaboration with the Universitys Department of Biochemistry, encourages players to try to solve one of the hardest computational problems in biology, protein folding. Players try random combinations for folding proteins into different shapes. In 2011, players were credited with helping discover an enzyme involved in the reproduction of AIDS, opening the potential for development of new drugs to fight the disease. Scientists had previously pursued the creation of this enzyme for years but failed to find the right protein structure through other techniques, such as computer simulations. Guided by intuition and reasoning that computers cant match, the players successfully configured the structure of the enzyme in 10 days.
Source: FoldIt staff, n.d.
Conclusion
Video games have been around for years, growing in popularity and sophistication. Most of todays workers grew up playing these games, so it comes as no surprise that organizations have started to use gaming technology in new and exciting waysincluding talent development. Well-crafted serious games are used to develop and reinforce skills and competencies. They can be used to safely practice tasks that require rapid and accurate responses, but their potential applications are much broader. Serious games can closely approximate actual working environments, while allowing players an opportunity to safely take risks, develop teamwork skills, creatively problem solve and collaborate, and to experiment and innovate.
Boinodiris, P. (2011 December 14). Lets play! Turning serious business issues into games. Forbes. Retrieved from http://www.forbes. com/sites/ciocentral/2011/12/14/lets-playturning-serious-business-issues-into-games/. Boorstin, J. (2012 September 5). Fewer people now playing videogames. CNBC. Retrieved from http://www.cnbc.com/ id/48917308/Fewer_People_Now_Playing_ Videogames. BusinessWire staff (2012 August 23). Spend on serious games growing steadily. Now a multi-billion dollar industry. BusinessWire. Retrieved from http://www.businesswire. com/news/home/2012823006124/en/ spend-games-growing-steadily-multi-billiondollar-industry. Clarke, R. (2012 April 30). Why games dont teach. American Society for Training and Development. Retrieved from http:// www.astd.org/Publications/Blogs/L-andD-Blog/2012/04/why-games-dont-teach. aspx?goback=%2Edge_102144_ member_112844552. Derryberry, A. (2007). Serious games: Online games for learning. Adobe. Retrieved from http://www.adobe.com/products/director/ pdfs/serious_games_wp_11-7.pdf.
ESA staff (2012). Essential facts about the computer and video game industry. Entertainment Software Association. Retrieved from http://www.theesa.com/facts/ pdfs/ESA_EF_2012.pdf. Farrington, J. (2011 July 11). From the research: Myths worth dispelling: Seriously, the game is up. Performance Improvement Quarterly, 24, 2, 105-110. Foldit staff (n.d.). The science behind Foldit. foldit. Retrieved from http://fold.it/portal/ info/about. Gale, M.T. (2011 May 9). Gameplay in higher education: The use of serious games vs. traditional instructional methods in learning. Auburn University. Retrieved from http://etd. auburn.edu/etd/bitstream/handle/10415/ Mark%20Gale%20Dissertation. pdf?sequence=2. Gettler, J. (n.d.). The first video game? Brookhaven National Laboratory. Retrieved from http://www.bnl.gov/bnlweb/history/ higinbotham4.asp. Heidingsfelder, A. (2012 September 23). Increase salesforce productivity with Bunchball gamification. Examiner. Retrieved from http://www.examiner.com/review/ increase-sales-productivity-with-bunchballgamification.
IBM and Seriousity staff (2007). Virtual worlds real leaders: Online games put the future of business leadership on display. Global Innovation Outlook. Retrieved from http://www.ibm.com/ibm/gio/media/pdf/ ibm_gio_gaming_report.pdf. IBM staff (n.d.). Serious games for smarter skills: The future of learning. IBM. Retrieved from http://www.01.ibm.com/software/ solutions/soa/newsletter/oct09/article_ seriousgames.html. Innovation Games staff (n.d.). The seriously fun way to do workseriously!. Innovation Games. Retrieved from http:// innovationgames.com/. Marinho, N. (2012 June 23). Corporations look to serious games for organizational development. e27. Retrieved from http:// www.e27.sg/2012/06/23/corporations-lookto-serious-games-for-organisational-learningand-development/. Maurer, A. (2012 October 10). Serious games invade the military, medical and corporate worlds. Tech Journal. Retrieved from http:// www.techjournal.org/2012/10/seriousgames-invade-the-military-medical-andcorporate-worlds/. Melchor, A. (2012 July 03). Computer games for leadership development. Slideshare. Retrieved from http://www.
slideshare.net/budmelchor/computergaming-for-leadership-development. Pitts, R. (2012 September 18). Using gamification to motivate Millennials. SHRM Online. Retrieved from http://www.shrm.org/ HRdisciplines/diversity/articles/pages/usinggamification-to-motivate-millennials.aspx. Roth, M. (2011 December 8). TRADOCsponsored simulation wins Serious Games Challenge. U.S. Army. Retrieved from http:// www.army.mil/article/70550/. Serious Games Market staff (2011 December 26). Zooming in on 2011 Serious Games Showcase and Challenge. Serious Games Market. Retrieved from http:// seriousgamesmarket.blogspot.com/2012/12/ zooming-in-on-2011serious-games.html. Sitzmann, T. (2011 May 27). A meta-analytic examination of the instructional effectiveness of computer-based simulation games. Personnel Psychology, 64, 2, 489-528. Steinberg, S. (2012 March 13). Video games are tomorrows answer to executive training. Fast Company. Retrieved from http://www. fastcompany.com/1824740/video-games-aretomorrows-answer-executive-training.
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Now more than ever, senior HR leaders need the knowledge, skills, and experience to respond to emerging trends that are with the Society for Human Resource Management shaping the future of global business. Offered in partnership (SHRM), UNCs Business and Human Resources program is designed to equip senior HR leaders with the most up-to-date business knowledge and skills needed to succeed in the rapidly changing business environment today and tomorrow.
Earn 29.75 recertification hours Meets the HRCI strategic requirements for SPHR
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Introduction
A 2012 Towers Watson study found that in most organizations, only 35 percent of employees said they were engaged. In other words, 65 percent of employees have mentally checked out, causing productivity, innovation, and creativity to plummet. The study also found that 38 percent of employees felt stress and anxiety about the future, and that less than half of the employees surveyed agreed that senior leaders had a sincere interest in their well-being. While this is never good news for employers, the timing could not be more critical as organizations across the globe continue to struggle to survive. An uncertain economic outlook, the rapid pace of change, and the need to continually adapt has made resiliencethe ability to bounce back in the face of a setbackthe new priority in leadership development. The good news is that resilience can be taught. back after setbacks, are often stressful places to work, a situation in which far too many employers and employees are well versed. Stress lowers employee performance, productivity, morale, and strains workplace relationships. People experiencing excessive stress have difficulty managing emotions, focusing attention, making decisions, and thinking clearly (Spangler, Koesten, Fox and Radel, 2012). Stress is also associated with heart disease, cancer, pain, and depression (Spangler et al, 2012). Stressed employees feel overwhelmed, tired, and disengaged. Resilient employees, on the other hand, experience increased productivity, lower turnover, and have lower health care costs (Lee, 2008). A growing body of research shows that organizations that foster positive attitudes have employees who are more optimistic and creative (Kolski-Andreaco, 2012). Resilient employees are engaged, have improved communication, and are better team players.
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This white paper: E xplores why resilience is more important than ever for organizations to cultivate. Explains the difference between wellness programs and building a resilience culture. D iscusses why resilience should be cultivated, not just at the senior leadership level, but at all levels in an organization. O ffers steps HR and talent managers can take to develop resilient organizational cultures. P rovides examples of organizations that have engaged in a resilience initiative and the benefits they realized as a result.
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High traditional engagement companies High sustainable engagement companies
Resilience Is Crucial
Thought leaders are increasingly calling todays turbulent business world a VUCA environmentone that is volatile, uncertain, complex, and ambiguous. To succeed in this environment, organizations must be more adaptive and agile than ever beforethey must be resilient. Organizations that lack resilience, that ability to bounce
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selves. As human beings, that is simply an impossibility; employees cannot leave their emotions and personalities at home. By building work communities that are safe and secure, yet also encouraging and stimulating, HR and talent management professionals can also create teams that are more productive, satisfied, and high-performing. It is important to establish safe and secure communities and acknowledge, according to Schwartz, that the struggle to feel valued is one of the most insidious and least acknowledged issues in organizations. HR and talent management professionals can challenge the mentality that employees should check their feelings at the door and begin that vital shift of building a resilient organizational culture. One simple way to create that shift is to implement community meetings (Schwartz, 2013). Each time a community meetswhether it is a team, a smaller working group or an entire division the community leader should open with a few simple questions: How are you feeling? W hat was the most important thing you learned last week? What are your goals for this week? What are you most grateful for?
Community leaders should not accept fine or good for an answer to the first question. Instead, they should encourage community members to answer on a scale of one to 10 emotionally and physically, one being completely exhausted or drained and 10 being completely energized and fueled. The idea is to encourage employees to be honest and open about how they are feeling physically and emotionallyto get it on the table so it can be subsequently cleared. The next questions, What was the most important thing you learned last week, and What are your goals for this week, help employees focus and clear their minds. What are you most grateful for helps set a positive mood among individuals and eventually the entire group. If community leaders are afraid that asking all of these questions will take up too much time, they should be encouraged to stick with asking employees how they are feeling and what they are most grateful for. Asking these questions during community meetings not only give employees strength and focus, but builds team cohesiveness by delaying the need for immediate gratification in favor of choices that uphold shared values, serve the collective good, and generate long-term value.
Example: PricewaterhouseCoopers
PricewaterhouseCoopers, a leader in the accounting industry, offers newly promoted senior associates a week-long leadership development program known as the PricewaterhouseCoopers Discover program. The program immerses participants in The Energy Projects peoplefuel program. The peoplefuel curriculum teaches employees how to more efficiently manage their four sources of energy; physical, emotional, mental, and spiritual. As participants progress through four modules divided by energy source, they learn to recognize the costs of the behaviors that deplete their energy, reduce their emotional resilience, inhibit their focus, and weaken their motivation. This program has helped the company engage their rising stars in ways that promote sustainable growth in the organization, while also investing in employees who will, in turn, invest in the organization.
The Energy Project 2013.
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3. Encourage all employeesfrom the CEO downto embrace these tips to increase energy and productivity.
E ncourage employees to do the most important activity first thing in the morning for a designated time of no longer than 90 minutes and then take a break. Silence all digital devices. Employees who can do this will find that they will get more accomplished in that time than most people do in an entire day. E ncourage employees to keep a running list of everything that is on their minds so they can get it off their minds. Working memories have a limited capacity, so the more things on ones mind, the less likely that they will be remembered. Encourage employees to download everythingthe to dos, ideas, everyone who needs to be called or emailed, issues that need to be addressed. By writing down everything as it arises, employees will literally clear space in their working memories, leaving room for what most deserves their attention. A sk employees to ask themselves Is this the best use of my time? every time they go online. Sometimes, of course, it will be. More often, though, it is something people do to avoid engaging in more difficult work. If the answer is no, ask What is? Then do it. E ncourage employees to systematically train their attention. A simple way is to read more books, preferably good ones. Deeply focused, uninterrupted reading is an excellent way to train and sustain the brains capacity for absorbed attention. E ncourage employees to take a few minutes each dayeither just before they leave work or just before they go to sleepto identify and write down the two or three most important things they want to accomplish tomorrow, and when they intend to work on them. E ncourage employees to monitor their moods. When demand exceeds capacity, one of the most common signs is increased negative emotions. The more employees move into fight or flight mode, the more reactive and impulsive they become, and the less reflective and responsive. If employees are feeling negative, encourage them to ask themselves Why am I feeling this way, and what can I do to make myself feel better? They may be hungry, tired, overwhelmed, or feel threatened in some way. Awareness is the first step. Employees cant change what they dont notice (Schwartz, various).
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Example: Genentech
Genentech has a rich history of medical breakthroughs and cuttingedge science. As the worlds first biotechnology company, today Genentech develops and manufactures medicines to treat patients with serious or lifethreatening medical conditions. Despite numerous products on the market, a great brand and reputation, and strong HR practices, Genentech found itself in a challenging environment after a merger with the biotechnology company, Roche. In March 2011, Dave Dickey, director of leadership development, asked The Energy Project to run a program for his staff to address his teams high levels of burnout and emotional fatigue surrounding the merger. He recognized that it was not just an HR issue, but reflected the growing need for a solution to address peoples capacity and an alternative way of working. In addition to stress and burnout, the company was dealing with unclear priorities, competing agendas, cost-cutting measures, and low levels of employee engagement typical after a merger or acquisition. By the end of 2012, more than 1,000 Genentech employees had participated in The Energy Project program, and seven more courses are scheduled for 2013. Employees at all levels of the company report that they are taking more time for renewal and being more proactive about the choices they make. Genentech leaders are also implementing policies suggested by The Energy Project designed to better fuel their peoples energy. Examples include:
S horter meetings with fixed boundaries, leaving people more time to move around campus and to complete their most important tasks Non-negotiable breaks at the 90-minute mark during long meetings Walking meetingsshort, on-the-go meetings comprised of small groups of people tackling creative challenges A n ongoing Take Back Your Lunch campaign encouraging workers to leave their desks and get outside to renew themselves More consistent and useful feedback given to employees Areas and times during the day devoted to absorbed focus and creative thinking
The initiative continues to gain momentum at Genentech, with leaders requesting team offsite and leadership meetings to help their employees manage increased demands, improve productivity and satisfaction, and to increase their engagement scores.
The Energy Project 2013.
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4. Develop policies and practices that empower employees to build resilience and have senior leaders lead by example.
A key to a resilient organizational culture is empowerment, which can come in many forms. Employees need to be given the freedom to take regular renewal breaks throughout the day to help rejuvenate, metabolize, and embed learning. These breaks may come in the form of taking a walk, a stretch break, or a quick work out. Some organizations encourage employees to combine business and pleasure by engaging in walking meetings. Other organizations allow employees quick afternoon nap breaks to rejuvenate. The important point is to empower employees to manage their work and their physical, emotional, mental, and spiritual well-being by offering a flexible working environment. It is also important to teach employees how to recognize and manage their stress responses. This may come in the form of offering psychological skills training and training in stress management techniques. For example, if personal financial management is a concern, a financial management seminar can be offered. As with any initiative, developing a truly resilient organizational culture will succeed only if senior leaders lead by example. HR and talent management professionals should encourage senior leaders to take time out of the day to rejuvenate themselves and to de-stress. When their direct reports see the priority senior leaders place on developing their own resilience, employees will embrace it and follow.
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Conclusion
Today, business as usual means rapid change, an influx of new technologies, economic turbulence, uncertainty, and ambiguity. To counter this new normal, organizations need employees and leaders who are agile, adaptable and flexible. In a word, resilient. HR and talent management professionals can help by creating resilient organizational cultures. This will require a fundamental shift in thinking, away from squeezing the most productivity from employees to enabling employees to take care of their physical, mental, emotional, and spiritual needs, thereby building resilience.
Everly, G. (2011 June 24). Building a resilient organizational culture. HBR Blog Network. Retrieved from http://blogs. hbr.org/cs/2011/06/building_a_resilient_ organizat.html. GCC staff (2012 July 20). Workplace resiliencetaking action. GCC. Retrieved from https://www.gettheworldmoving. com/blog/building-employee-resilienceand-responsiveness-to-change. George, B. (2013 March 22). Resilience through mindful leadership. Huffington Post. Retrieved from http://www. huffingtonpost.com/bill-george/resiliencethrough-mindfu_b_2932269.html. Kolski-Andreaco, A. (2012 December 1). How resilience matters in the workplace and what employers can do to increase it. SmartBusiness. Retrieved from http://www. sbnonline.com/2012/12/how-resiliencematters-in-the-workplace-and-whatemployers-can-do-to-increase-it/.
Lee, D. (2008). Why you will need a resilient workforce in todays economy. HumanNature@Work. Retrieved from http://www.humannatureatwork.com/ articles/workplace_stress/resilientworkforce. htm.
Schwartz, T. (2012 May 17). You are not a computer (try as you may). The Energy Project. Retrieved from http://www. theenergyproject.com/blog/you-are-notcomputer-try-you-may. Schwartz, T. (2012 May 29). Take back
Schwartz, T. (2013 January 23). What if you could truly be yourself at work? The Energy Project. Retrieved from http://www. theenergyproject.com/blog/what-if-youcould-truly-be-yourself-work. Spangler, N., Koesten, J., Fox, M., Radel, J. (2012 November). Employer perceptions of stress and resilience intervention. Journal of Occupational & Environmental Medicine, 54, 11, 1421-1429. Towers Watson staff (2012). Global workforce study. Towers Watson. Retrieved from http://www.towerswatson.com/ Insights/IC-Types/Survey-ResearchResults/2012/07/2012-Towers-WatsonGlobal-Workforce-Study.
Schwartz, T. (2010 September 7). Six ways to supercharge your productivity. The Energy Project. Retrieved from http:// www.theenergyproject.com/blog/six-wayssupercharge-your-productivity.
your life in seven simple steps. The Energy Project. Retrieved from http://www. theenergyproject.com/blog/take-back-yourlife-7-simple-steps. Schwartz, T. (2012 November 1). Resilience
Schwartz, T. (2011 June 1). The only thing that matters. The Energy Project. Retrieved from http://www.theenergyproject.com/ blog/only-thing-really-matters. Schwartz, T. (2012 August 15). Seeing through your blind spots. The Energy Project. Retrieved from http://www. theenergyproject.com/blog/seeing-throughyour-blind-spots. Schwartz, T. (2012 August 24). Six keys to being excellent at anything. The Energy Project. Retrieved from http:// theenergyproject.com/blog/six-keys-beingexcellent-anything.
in the eye of the storm. The Energy Project. Retrieved from http://www. theenergyproject.com/blog/resilience-eyestorm. Schwartz, T. (2012 November 8). New Research: How employee engagement hits the bottom line. The Energy Project. Retrieved from http://www. theenergyproject.com/blog/new-researchhow-employee-engagement-hits-bottomline.
Tulane Solutions staff (2012 February 16). Leadership resilience. Tulane Solutions. Retrieved from http://www.tulanesolutions. com/leadership-resilience/?goback=%2Eg de_1602977_member_232853807. Warren, K. (2011 March 10). Creating the conditions for a resilient workforce. CEO Online. Retrieved from http://www. ceoonline.com.au/expert_talk/work_life_ balance/resilience_attitude/pages/id38962. aspx.
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Introduction
Big datathe massive amounts of information companies routinely collect through web crawlers, social media feeds, server logs, customer service databases, and other sources (CIO editors, 2012)is quickly becoming big business in todays competitive marketplace. If HR and talent management professionals havent added big data to their strategic agenda yet, they will be compelled to in the near future. Few organizations possess technical leaders with the expertise needed to collect, organize, and analyze the data and provide meaningful insights. Even fewer have business leaders with the knowledge and experience needed to create value from big data.
Promise
This white paper: A nalyzes the big data revolution and the potential it offers organizations. E xplores the critical talent needs and emerging talent gaps related to big data. O ffers examples of organizations that are meeting this challenge head on. R ecommends four steps HR and talent management professionals can take to bridge the talent gap.
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their predictions and the CDCs flu outbreak statistics (Schnberger & Cukier, 2013). Another example of big data analytics comes from Target Corporation. Target wanted to capture a very attractive and lucrative market: new parents. New parents spend a lot of time and money shopping and creating new buying habits, and building loyalty among this audience can be very profitable. This market is so valuable that Target worked to identify customers who might be pregnant before a new parent buys the first diaper, or even registers for the baby shower. Since Target captures and records vast amounts of consumer data, they were able to review purchase patterns looking for trends and examine the items couples tended to buy prior to pregnancy, like vitamins, unscented lotion, hand towels, etc. Through mathematical machinations, Target determined the
likelihood that couples were pregnant and used these insights to market to these couples well before their childs birth, creating customer loyalty and capturing an extremely valuable market segment. Big data is transforming every industry, as companies realize opportunities to leverage big data analytics in marketing, sales, and operationsand HR leaders are realizing the potential as well. Technical recruiting firm Gild, for example, identifies highly-skilled engineers by analyzing open-source code, assessing it for quality, and reaching out to engineers who make the cut. Online auction company eBay uses analytics to fight attrition. Beth Axelrod, e-Bays senior vice president of human resources, notes in a recent Forbes article that big data analytics allows them to identify managerial or departmental hotspots for talent loss. If somebody
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has been in a role for three years, hasnt been promoted, and hasnt changed roles, theres a far higher probability of attrition than someone who doesnt have those circumstances, she says (Clark, 2013). And, according to some reports, Yahoo! CEO Marissa Mayer relied on big data analysis to ban telecommuting in the company. Business Insider reports that Mayer analyzed Yahoos computer logs for the companys virtual private network (the network tele-commuting employees access when working remotely) and determined that remote employees werent logging in to the VPN often enough to justify the policy (Klobucher, 2013).
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3. Big data will become a key basis of competition and growth for individual firms. 4. Big data will underpin new waves of productivity growth and consumer surplus. 5. While the use of big data will matter across sectors, some sectors are set for greater gains. 6. There will be a shortage of talent necessary for organizations to take advantage of big data. 7. Several issues such as privacy, security, intellectual property, and even liability, will have to be addressed to capture the full potential of big data.
Source: Manyika et al, 2011.
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understand the fundamentals of big data, why it matters, and what skills their organizations will need to analyze and interpret the large amounts of data they collect.
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required to build those models. And they must be able to find insights and tell stories from that data. That means asking the right questionsand that is usually the hardest piece. (Rooney, 2012). CIOs will also need to adjust their roles in this new, big data environment. The authors of the Strategic Guide to Big Data Analytics noted that CIOs will need to realize that useful data can come from anywhere and everywhere. Big data, for example, can come from the organizations server log files which track who checks into a website and what pages they visit. Analyzing who is checking in and where they go after they leave a page can give an organization better insight into what their customers want. CIOs will also need to realize that big data does not need to be organized beforehand; instead, data should be collected first with the goal to decide what to do with it later. Finally, CIOs will also need to recognize the skills their organizations will need to analyze big data and be an active participant in the training of or search for talent (CIO editors, 2012). It is not just the technical leaders who need to rise to meet the challenges of big data; managers at all levels will also have to develop new knowledge, skills, and experience to be effective. As Jeanne Harris, senior executive research fellow for Accenture Institute for High Performance, wrote in an blog for Harvard Business Review, managers must become more adept at mathematical reasoning, and while they do not need to have the depth of statistical knowledge required of big data analysts, they will need to understand how to use statistical models and how to interpret data, metrics, and the results of statistical models. They must also have the ability to look beyond their functional areas and see the big picture so they can tell the story the data reveals (Harris, 2012). It is this combination of business acumen, knowing the right questions to ask, and deep technical knowledge that is confounding most organizations when it comes to finding big data talent. One survey found that more than 60 percent of respondents said their employees need to develop new skills to translate big data into insights and business value (Harris, 2012). Developing these skills will take time, so many organizations are also looking to recruit critical talent but these hard-to-find men and
women wont come cheap; a Wall Street Journal article estimated that some data scientists were making as much as $300,000 a year (Press, 2012) which gives large companies an advantage over small and medium sized companies for acquiring the big data talent.
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Consortium for Data Science (NCDS). This consortium aims to better align university curricula and research with the needs of the private sector. In response to the talent shortage, HR and talent management professionals are getting creative and looking outside the box when it comes to finding big data talent. Big data talent could come from the fields of research and development, finance, physics, biology, medicine, and even meteorology (Henschen, 2012, Hall, 2012). Jeremy Howard, chief scientist at an Internet startup that runs data prediction competitions has a degree in philosophy. He believes that the key job requirements in data science are really curiosity, flexibility, and the willingness to learn, capabilities that can be found in a wide variety of studies and job backgrounds (Hall, 2012). At Google, recruiters try to assess a candidates agility, curiosity, and willingness to experiment in the interviewing process by asking questions like, How many golf balls would fit in a school bus? or How many sewer covers are there in Manhattan? Getting the right answer isnt really the point of the exercisethe point is to assess a candidates skills in experimental design, logic, and quantitative analysis (Harris, 2012). Capital One also assesses mathematical reasoning in the recruiting process. All prospective employees including senior executive candidatesare tested for mathematical reasoning, logic, and
problem-solving skills. Proctor & Gamble has developed a big picture/data literacy program which establishes a baseline digital-skills inventory for all employees. The program then offers developmental opportunities tailored to every level in the organization (Harris, 2012). As demand for big data talent grows, competition for this talent will become more aggressive - and expensive. Recruiting and retaining big data talent will become a significant challenge. HR and talent management professionals will also need to provide development opportunities; helping managers and business leaders at all levels develop the right skills. According to a survey conducted by The Big Data London group, 80 percent of respondents said that on-the-job training is among the best ways to learn and keep up-to-date with the latest big data skills, and 72 percent cited self-teaching (Raywood, 2012). The NewVantage Partners survey found that 69 percent of respondents were training their existing analytic professionals to get up to speed (NewVantage Partners staff, 2012). On-the-job training and self-teaching may not be adequate in developing existing staff, particularly if they dont know what they dont know. Fortunately, according to an Information Week report, a growing number of organizations are offering big data training and development through conferences, seminars, online courses, webinars, and certification programs (Henschen, 2012).
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Conclusion
Big data is big business, but its sudden appearance in the marketplace has left a huge hole in terms of talent. HR and talent management professionals must stay ahead of the curve by learning more about big data, its applications to their organizations as a whole and their functions in particular, and plan now to develop existing talent and recruit new talent that will be needed to realize the full potential of big data.
Ahalt, S. (2012 July). Establishing a national consortium for data science. University of North Carolina at Chapel Hill. Retrieved from http://data2discovery.org/dev/ wp-content/uploads/2012 /09/NCDSConsortium-Roadmap_July.pdf.
Davenport, T. & Patil, D.J. (2012 October). Data scientist: The sexiest job of the 21st century. Harvard Business Review. Retrieved from http://hbr.org/2012/10/data-scientistthe-sexiest-job-of-the-21st-century/ar/1. Hall, S. (2012 July 23). Big data talent
Manyika, J., Chui, M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C. & Hung Byers, A. (2011 May). Big data: The next frontier for innovation, competition, and productivity. McKinsey Global Institute. Retrieved from http://www.mckinsey.com/ insights/mgi/research/technology_and_ innovation/big_data_the_next_frontier_ for_innovation. Mayer- Schnberger, V. & Cukier, K. (2013). Big Data: A Revolution that Will Transform How We Live, Work, and Think. New York: Houghton Mifflin Harcourt Publishing Company. NewVantage Partners staff (2012 November 13). Big data talent shortage a potential challenge at Fortune 1000 organizations according to NewVantage Partners Big Data Executive Survey Part II. Yahoo! Retrieved from http://finance. yahoo.com/news/big-data-talent-shortagepotential-132900266.html. ORyan, R.E. (2012 November 19). Big data talent shortage? Is recruiting to blame? Dice. Retrieved from http://news.dice. com/2012/11/19/jobs-in-big-data/. Press, G. (2012 December 1). Big data news of the week: Beautiful $300,000 minds. Forbes. Retrieved from http://www. forbes.com/sites/gilpress/2012/12/01/
Raywood, D. (2012 December 3). Big data analyst shortage is a challenge for the UK. SC Magazine. Retrieved from http://www.scmagazineuk.com/big-dataanalyst-shortage-is-a-challenge-for-the-uk/ article/270538/. Rooney, B. (n.d.). Big datas big problem: Little talent. The Wall Street Journal. Retrieved from http://blogs.wsj.com/techeurope/2012/04/26/big-datas-big-problemlittle-talent/. Smart Brief staff (n.d.). IBM targets big data talent shortage with research center. SmartBrief. Retrieved from http://www. smartbrief.com/news/comptia/storyDetails. jsp?issueid=24C1241E-D7B3-47E1-B3A903FD89052B88©id=8B1DBCB9AD38-4931-9A9E-474DFB6868D4&brief =comptia&sb_code=rss&&campaign=rss. Thomson, I. (2012 October 4). Big data skills gap needs filling says tech industry. The Register. Retrieved from http://www. theregister.co.uk/2012/10/04/big_data_ skills_gap/. Villars, R., Eastwood, M. & Olofson, C. (2011 June). Big data: What it is and why you should care. International Data Corporation. Framingham, MA: IDC. Woods, D. (2012 November 21). Will data science become the new bottleneck? Forbes. Retrieved from http://www.forbes. com/sites/danwoods/2012/11/21/will-datascience-become-the-new-bottleneck/.
Bradshaw, D. (2013 February 11). Business schools big data revolution. Financial Times. Retrieved from http://www.ft.com/ cms/s/2/c017f2cc-7082-11e2-85d000144feab49a.html #axzz2LFxFeSdr.
shortage requires creativity. ITBusinessEdge. Retrieved from http://www.itbusinessedge. com/cm/blogs/hall/big-data-talentshortage-requires-creativit/?cs=50835. Harris, J. (2012 September 13). Data is
Beyer, M. and Laney, D. (2012 June 21). The importance of big data: A definition. Gartner. Retrieved from http://www. gartner.com/DisplayDocument?ref=clientFri endlyUrl&id=2057415.
useless without the skills to analyze it. HBR Blog Network. Retrieved from http:// blogs.hbr.org/cs/2012/09/data_is_useless_ without_ the_skills.html. Henschen, D. (2012 October). Filling
CIO editors (2012). Strategic Guide to Big Data Analytics. Framingham, MA: CIO. Clark, D. (2013 March 8). How big data is transforming the hunt for talent. Forbes. Retrieved from http://www.forbes.com/ sites/dorieclark/2013/03/08/how-big-datais-transforming-the-hunt-for-talent.
the Talent Gap in Big Data Analytics. Manhasset, NH: Information Week. IBM staff (n.d.). What is data (a) scientist. IBM. Retrieved from http://www-01.ibm. com/software/ data/infosphere/datascientist/. Klobucher, D. (2013 March 8). Big data
Dahad, N. (2013 January 20). The Internet of things: The next platform for global innovation. The Next Silicon Valley. Retrieved from http://thenextsiliconvalley. com/7502/internet-things-next-platformglobal-innovation#.UT5RHr7D9jp.
ended work from home at Yahoowill your company be next? Forbes. Retrieved from http://www.forbes.com/sites/ sap/2013/03/08/big-data-streamlines-theworkplace-and-may-end-telecommuting/. Lorenz, M. (2012 November 15). Does big data live up to its hype? The Hiring Site. Retrieved from http://thehiringsite. careerbuilder.com/2012/11/15/does-bigdata-live-up-to-its-hype/.
big-data-news-of-the-week-beautiful300000-minds/.
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This special section of ideas@work, Volume 5 has been reprinted from the bookOne Page Talent Management: Eliminating Complexity, Adding Value by Marc Effron and Miriam Ort with permission from the authors and Harvard Business Press, 2010. Copyright (c) 2010 by Harvard Business Publishing Corporation: all rights reserved.
Chapter 1
A highly respected business journal has recently published an article proving that when a CEO makes and serves a cake to his employees, it causes huge increases in employee engagement [humor us]. Two CEOs read the article, believe the findings, and commit to making a cake for their staff. They each ask their talent management leader to design a process that will produce a suitable cake.
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In Company 1, the talent leader is excited about this challenge. His goal is to design a plan that will allow the CEO to make a world-class cake. He starts by benchmarking the best cakes in the best companies around the globe and consulting with renowned bakers. He takes this knowledge and everything he has ever learned about cake making and designs a detailed cake-making plan. When followed correctly, his plan will produce a five-tiered cake with flowers of multicolored frosting cascading from layer to layer, intricate icing designs, a working fountain of melted chocolate, and a rich butter-cream filling flavored with imported Madagascar vanilla. When his plan is finished, the proud talent leader hands the CEO a 73-page instruction manual, 124 different ingredients, and 7 pans. This, he tells her, will produce a world-class cake with less than 100 hours of effort. The CEO politely thanks the talent leader but wonders how she can ever make this cake. Shes committed to making a cake, but she simply cant justify the time and energy required to make this one. When she asks the talent leader if theres another way, he repeats that this is a great cake-making planin fact, GE uses a very similar plan to make its cakes. The busy CEO never finds the time to make that cake, and without cake her staffs engagement decreases and the companys performance declines. At Company 2, the talent management leader is equally committed to the goal. She understands that the CEO has great intentions but no expertise in cake making and
little time to learn. Her goal is to develop a solution that will meet the CEOs goalemployees eat cake and become engaged. She knows that she has to make the process as easy and understandable as possible if her busy CEO is going to use it. Although shes quite competent in making cakes, she starts by reviewing the science behind making a great cake to ensure shes applying the fundamentals correctly. Her research reminds her that only six ingredients are required to make cake, and she realizes that the process might be easier than she had thought. (On a benchmarking visit to Company 1, she had seen the cake design proposed by its talent leader and, while she admired the intricate detailing and cake bling, she didnt think they supported the core goal. She decided not to include those extras in her cake design.) Finally, she realizes that while her basic recipe simplifies the steps involved in making the cake, she can add even more value. She mixes together the dry ingredients to create a cake mix, greatly reducing both the time the CEO will need to spend making the cake and the chance for error. She gives it to the CEO with two eggs, a can of frosting, a pan, and a one page instruction sheet. She tells him that in one hour this simple process and few essential ingredients will make a nice cake that the employees will enjoy. The CEO sees that with little effort hell be able to serve his employees cake, making them, him, and the talent leader happy. The client now values the talent leader, who gets invited to have a seat at the table and share the cake.
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companies and employees can work best together. We understand the combination of job experiences, coaching, and formal training that is optimal for development. We know which talent practices have proved to be effective over time. In short, we already have nearly every answer needed to develop talent in our organizations. Yet, there seems to be a gap between our knowledge of how to develop talent and our ability to actually do it. This is difficult to understand, given that most companies have an HR department and many larger companies have dedicated talent management or leadership development groups focused on precisely that task. So, if our organizations want to grow talent, know how to do it, and have the resources necessary to get it done, what is not working? More importantly, how can we fix it?
Sound a little silly? Substitute performance management or succession planning for making a cake. Does your organization resemble Company 1, with academically perfect talent-building processes that are both unusable and unused? Or are you closer to Company 2, building talent with lean, easy-to-use processes that are guaranteed to achieve results? Recent research by McKinsey & Company, Boston Consulting Group, and Deloitte suggest the former.1 Their studies confirm that organizations are unhappy with their ability to grow talent and are becoming increasingly frustrated as their talent needs become more severe. Outside their walls, they see a competitive environment in which winning requires top-quality talent, while inside those walls, they see millions spent on talent development with very few results. Line executives blame human resource (HR) groups for not delivering better leaders, while HR says those same executives talk a great game but do not deliver the necessary resources or commitment. While this situation is challenging, it is also somewhat strange due to one key fact: we already know almost everything necessary to grow great talent. Sixty years of high-quality behavioral and industrial/organizational psychology research can help us understand how
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it brings to the overall process and the impact it will have on the original business objective is critical.
be achieved significantly increases most managers heart rates. But transparent conversations like these drive higher performance. Unfortunately, in too many companies, fear of the consequences or a genuine belief that employees do not need this level of clarity means talent practices are opaque. Its also understandable that managers usually prioritize coaching, performance feedback, and creating development plans after activities that provide a more immediate benefit to their business. These talent practices are still important, however, and most organizations do not hold their managers accountable for executing them.
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Since little research existed about why talent practices succeeded in organizations, we asked ourselves what we knew to be true. We concluded that:
We were confident that if we used these truths to shape our talent practices, the results would be at least somewhat more effective than traditional talent processes and, we hoped, much more. Our design process started by identifying the businesss most urgent talent objectives. First, we needed to understand the quality and depth of the companys talent in order to ensure that we could make the right talent selection and investment decisions. Next we needed everyone in the organization aligned on the vital few goals and behaviors that would turn around the business. This alignment would accelerate progress toward those goals. Finally, we needed to raise engagement to the highest possible level to maximize every associates performance.
We designed our solutions by faithfully applying our four truths. Since we knew the science worked, we researched what the core science found to be effective at driving individual and company performance, not how HR practices were typically designed. We knew that only implementation mattered, so we stripped complexity from existing processes and built new ones that balanced complexity with a commensurate amount of value. Our constant focus was on whether the most skeptical managers would find the process simple and valuable enough to use. Since we knew that transparency and accountability guaranteed results, we built these elements into every practice.
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When we finished designing our processes, even we were surprised by the results. After accurately translating the research into practice, we were left with the simplest possible path from science to effective execution. Practices that managers had experienced as intensive, bureaucratic, time-consuming exercises had been reduced to one page, intuitive, business tools. When we applied this approach to our performance management process, for example, the result was a simple, one page form that managers quickly adopted. In every practice, the elements of complexity that could not justify their overall value to managers had fallen away.
Not only was complexity gone, but value had been added back. We could now turn complex HR data into valuable insights for managers. We could tell them exactly which actions would increase engagement in their group and by how much. We could highlight the most important behaviors for them to change, while avoiding the resistance that typically accompanies 360-degree feedback. We had found a way to turn the theoretical power of behavioral science into actual results.
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Engagement increased 20 percent (30 percent among managers), and performance discussions took place for more than 90 percent of associates, up from less than 30 percent. The number of ready now successors for key roles increased by 25 percent, even though we aggressively increased the quality standards for talent each year. Our success rate for using coaching to change behaviors went from well below 50 percent to north of 90 percent. There are many more similar results that we could present. Strangely, the qualitative measures actually seem more powerful than the quantitative ones. General managers thanked us for the new performance management process. That was certainly the first time in our careers we had ever heard that! The executive team praised the talent review process as the most effective in the companys history and said that better people decisions were being made faster because of it. Engagement was woven into the culture of the company. There were more qualified general managers available for key roles. We had moved a meaningful amount of talent who no longer fit out of the organization. Overall, these metrics seemed a much better measure of success than anything quantitative. Can we claim that everything that went well with talent was because of our processes? Of course not. It would be impossible to separate out the effects of new executive team members, adjusted compensation structures, and all the other variables that might have had an impact on talent outcomes. Still, at the end of four years, we felt comfortable claiming that our approach was more effective than typical talent process and, very likely, quite a bit more.
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We use OPTM both figuratively and literally. As an integrating concept, it stands for the addition of value and removal of complexity from talent practices. At the most practical level, it suggests a design discipline for creating these practices and a metric for evaluating their design. We do not expect that the key form or process
for every talent practice can be reduced to one page, but we believe that aspiration forces an entirely new way of thinking about process design. Most importantly, we consider the OPTM approach to be a superior way to grow better leaders faster.
1. Deloitte Touche Tohmatsu and the Economist Intelligence Unit, Aligned at the Top: How business and HR executives view todays most significant people challengesand what theyre doing about it (New York: Deloitte Touche Tohmatsu, May 2007), 6; Ranier Strack, Jean-Michel Caye, Michael Leicht, Ulrich Villis, Hans Bhm, and Michael McDonnell, The Future of HR in Europe: Key Challenges through 2015 (Boston: Boston Consulting Group, June 2007), 16; Matthew Guthridge, Aamus Komm, and Emily Lawson, Making Talent a Strategic Priority, McKinsey Quarterly, no. 1 (2008): 5059.
2. Marc Effron, Shelly Greenslade, and Michelle Salob, Top Companies for Leaders 2005 (Lincolnshire, IL: Hewitt Associates LLC, 2005); Mark Huselid, Susan Jackson, and Randall Schuler, Technical and Strategic Human Resources Management Effectiveness as Determinants of Firm Performance, Academy of Management Journal 40, no. 1 (February 1997): 171188, AOM Archive, Ebscohost.
3. Avon Products, Inc, The Avon Opportunity, Annual Report 2007, http://www.avoncompany.com/investor/annualreport/pdf/ annualreport2008.pdf, October 8, 2009,
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One of the most pressing strategic issues facing CEOs today is whether they have the right talent with the right skills in the right places. UNC is partnering with three of the worlds most experienced Talent Management Practitioners to help HR and Talent Management leaders productively and proactively steer their organizations talent. Come learn from Marc Effron, Corey Seitz, and Jim Shanley its your turn in the drivers seat.
UNC EXECUTIVE DEVELOPMENT
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The University of North Carolina at Chapel Hill Kenan-Flagler Business School Executive Development Campus Box 3445 Rizzo Conference Center Chapel Hill, NC 27599-3445 Permit Number 177 Chapel Hill, NC
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