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B U S I N E S S I N S I G H T S F R O M U N C E X E C U T I V E D E V E L O P M E N T
WHITE PAPERS
FEATURED:
VOLUME5
Developing Leaders in a
VUCA Environment
Got Game? The Use of
Gaming in Learning and
Development
Building A Resilient
Organizational Culture
The Big Data Talent Gap
BONUS SECTION!
Reprinted from the best
selling book “One Page
Talent Management”
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A message from the
President of Executive Development
at UNC Kenan-Flagler Business School
Consistently ranked one of
the world’s 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.
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 8th
in the world for custom executive education and
4th
among U.S. institutions. We also ranked highly in many
individual categories, notably 2nd
in the world for value, 1st
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 today’s 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.
This volume also features a chapter from what’s been called
the “talent management bible” - Marc Effron’s and Miriam
Ort’s “One Page Talent Management”. This practical, science-
based guide to accelerating talent growth has become a
best seller in talent management circles, and the chapter
we’ve 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.
Susan Cates
Susan_Cates@unc.edu
3
V U
C A
Developing Leaders in a VUCA Environment
page 4
Got Game? The Use of Gaming in Learning and Development
page 14
Building A Resilient Organizational Culture
page 22
The Big Data Talent Gap
page 32
One Page Talent Management
page 42
Inside this issue
(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.)
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Developing Leaders in a
VUCA Environment
Kirk Lawrence
Program Director
UNC Executive Development
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 revolutions—like
Gutenberg’s introduction of the printing press—the
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 1990’s, the military-derived acronym stands for the
volatility, uncertainty, complexity, and ambiguity—terms
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:
• Discusses the history of VUCA and how it applies to
business strategy and development.
• Explores how VUCA is relevant to leadership
development.
• Discusses the “VUCA Prime,” which flips the acronym
to focus on vision, understanding, clarity, and agility.
• Offers suggestions on what HR and talent managers
must do to change their leadership development
approach to foster leadership vision, understanding,
clarity, and agility.
DEVELOPING LEADERS IN A VUCA ENVIRONMENT
5
The Origins of VUCA
The notion of VUCA was introduced by the U.S. Army
War College to describe the more volatile, uncertain,
complex, and ambiguous, multilateral world which
resulted from the end of the Cold War (Kinsinger 
Walch, 2012). The acronym itself was not created until
the late 1990s, and it was not until the terrorist attacks
of September 11, 2001, that notion and acronym really
took hold. VUCA was subsequently adopted by strategic
business leaders to describe the chaotic, turbulent, and
rapidly changing business environment that has become
the “new normal.”
By all accounts, the chaotic “new normal” in business
is real. The financial crisis of 2008-2009, for example,
rendered many business models obsolete, as
organizations throughout the world were plunged
into turbulent environments similar to those faced by
the military. At the same time, rapid changes marched
forward as technological developments like social
media exploded, the world’s population continued
to simultaneously grow and age, and global disasters
disrupted lives, economies, and businesses.
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In 2010, Unilever, one of the world’s 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, ‘It’s a very tough world,’ or you
can say, ‘It’s a world that’s 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.
Example: Unilever
VUCA and Leadership Development
This new VUCA environment, as Friedman notes, is taxing
even the most able of leaders who may find their skills
growing obsolete as quickly as their organizations change
in this volatile, unpredictable landscape. Leadership agility
and adaptability are now required skills if organizations
are to succeed in this VUCA world. As Horney, Pasmore,
and O’Shea, authors of “Leadership Agility: A Business
Imperative for a VUCA World” note, to succeed,
“leaders must make continuous shifts in people, process,
technology, and structure. This requires flexibility and
quickness in decision making.” (Horney, Pasmore, O’Shea,
2010). (For additional insights on a new approach for
developing leadership agility, refer to the UNC Executive
Development white paper: Leadership Agility: Using
Improv to Build Critical Skills.)
The Boston Consulting Group (BCG) concurs. A recent
BCG study concluded that organizations today must shift
their business models—and their leadership skills—to
become “adaptive firms.” Adaptive firms can adjust and
learn better, faster, and more economically than their
peers, giving them an “adaptive advantage.” Adaptive
firms, the study notes, include Apple, Google, 3M, Target,
and Amazon.
A report by the Center for Creative Leadership (Petrie,
2011) also notes that today’s VUCA business environment
requires leaders to possess more complex and adaptive
thinking abilities. It also notes that the methods used
to develop these new skill requirements (like on-the-job
training, coaching, and mentoring) have not changed
much, and as a result, leaders are not developing fast
enough or in the right ways to keep up with the “new
normal” for business.
HR and talent management professionals must position
their organizations to succeed in today’s turbulent
business environment by developing agile leaders.
Applying the VUCA model as a framework to re-tool
leadership development models may enable HR and talent
management professionals to identify and foster the
leaders their organizations need now and in the future.
DEVELOPING LEADERS IN A VUCA ENVIRONMENT
7
VUCA Defined
V	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 pheno-
menon 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).
U	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).
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.
A	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.
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The VUCA Prime
The VUCA model identifies the internal and external
conditions affecting organizations today. The VUCA Prime
was developed by Bob Johansen, distinguished fellow at
the Institute for the Future and the author of “Leaders
Make the Future: Ten New Leadership Skills for an
Uncertain World”. Johansen proposes that the best VUCA
leaders are characterized by vision, understanding, clarity,
and agility - the “flips” to the VUCA model.
The VUCA Prime can be seen as the continuum of skills
leaders can develop to help make sense of leading in a
VUCA world. HR and talent management professionals
can use the VUCA Prime as a “skills and abilities”
blueprint when creating leadership development plans.
In the VUCA Prime, volatility can be countered with
vision because vision is even more vital in turbulent
times. Leaders with a clear vision of where they want
their organizations to be in three to five years can better
weather volatile environmental changes such as economic
downturns or new competition in their markets, for
example, by making business decisions to counter the
turbulence while keeping the organization’s vision
in mind.
Uncertainty can be countered with understanding, the
ability of a leader to stop, look, and listen. To be effective
in a VUCA environment, leaders must learn to look and
listen beyond their functional areas of expertise to make
sense of the volatility and to lead with vision. This requires
leaders to communicate with all levels of employees
in their organization, and to develop and demonstrate
teamwork and collaboration skills.
Complexity can be countered with clarity, the delibera-
tive process to make sense of the chaos. In a VUCA
world, chaos comes swift and hard. Leaders, who can
quickly and clearly tune into all of the minutiae
associated with the chaos, can make better, more
informed business decisions.
Finally, ambiguity can be countered with the ability to
communicate across the organization and to move
quickly to apply solutions (Kinsinger and Walch, 2012).
Vision, understanding, clarity, and agility are not
mutually exclusive in the VUCA prime. Rather, they
are intertwined elements that help managers become
stronger VUCA leaders.
VUCA leaders must have foresight to see where they are
going but must also remain flexible about how they get
there (Apollo Research Institute staff, 2012). They must
be self-aware about their strengths and weaknesses as
leaders, adaptable, open to change, and, according to
the Center for Creative Leadership, knowledgeable about
their organization beyond their function (Management
Education Group staff, 2011). Finally, they must work
collaboratively and be excellent communicators to thrive
in a complex VUCA environment (Kail, 2010 December
3). Above all, VUCA learners must be able to learn fast
because change is constant.
These skills and abilities are a far cry from the more
function-specific skills and abilities leaders needed in the
past to succeed. HR and talent management professionals
must refocus their leadership development efforts to hone
these more strategic, complex critical-thinking skills.
VUCA Prime
V	ision
	U	nderstanding
	C	larity
	A	gility
DEVELOPING LEADERS IN A VUCA ENVIRONMENT
9
Steps Talent Managers Can Take
Nick Petrie, senior faculty member at the Center for
Creative Leadership writes in a 2011 study, Future Trends
in Leadership Development, that there is a growing belief
among senior leaders that the more traditional leadership
development methods such as on-the-job training, job
assignments, coaching, and mentoring, are falling short
in helping them develop the capabilities they need to
succeed in a VUCA environment. These methods are often
at odds with the leadership demands in a VUCA world,
where knowledge across the organization and the speed
of learning outpace these slower and more job-specific
learning methods.
HR and talent management professionals must reframe
leadership development activities to accommodate the
faster-paced VUCA world and to focus less on behavioral
competencies and more on complex thinking abilities and
mindsets. Leadership development should be focused on
learning agility, self-awareness, comfort with ambiguity, and
strategic thinking (Petrie, 2011). To do so, HR and talent
managers may want to begin at the selection process.
Fast-food giant McDonald’s 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.
Example: McDonald’s
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Step 1: Hire Agile Leaders.
Horney, Pasmore, and O’Shea (2011) recommend that
HR and talent management professionals assess agility
and complex thinking skills during the selection process
by using a structured interview format designed to evoke
from the examples of past agility on the job.
Some sample questions they recommend include:
• Give an example of when you performed well in a
work environment that featured rapid change and/or
ambiguity. Did you enjoy this environment? What did
you learn?
• Give an example of when your ability to be decisive
was put to the test—when you had to convey a sense
of urgency in decision making. What was the situation,
what factors did you consider when making the
decision, and what was the outcome?
• How do you determine when you need to gather more
information before making a decision versus making a
decision based on the information you have at hand?
Give recent examples of when you made a quick
decision based on the information you had immediately
available and a situation where you opted to collect
more information before making a decision. Which
decision-making style was more comfortable for you
and why?
• Give an example of when you modified your personal
style to achieve an important work objective. What was
the situation, how did you change your approach, and
what was the outcome?
HR and talent management professionals can formulate
other questions that can assess a candidate’s strategic
thinking skills, self-awareness, openness to change, ability
to collaborate and communicate across functions, and
other skills required in a VUCA environment. The key is
to attract leaders into the organization who already have
these skills and abilities.
Step 2: Develop Existing Leaders to
Be Agile Leaders.
On-the-job training, job assignments, coaching, and
mentoring will still have a place in the training and
development of employees, but to develop VUCA
leaders, HR and talent development professionals must
focus on programs that help develop agility, adaptability,
innovation, collaboration, communication, openness to
change, and other, higher-order critical thinking skills.
And they need to deliver those programs faster (via social
media and other technology) to keep up with the pace
of change. (For additional insights on using technology
to deliver LD programs, refer to the UNC Executive
Development white paper: Wired to Learn: How New
Technologies are Changing LD Delivery.)
Horney, Pasmore, and O’Shea recommend that HR and
talent management professionals engage in scenario
planning about possible futures when developing
leadership programs. Scenario planning about futures
involves projecting possible situations and deciding how
the organization would or would not react. Scenario
planning can help identify the knowledge, skills, and
DEVELOPING LEADERS IN A VUCA ENVIRONMENT
11
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 leader’s “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).
In 2010, Supply Chain Quarterly staff reported that consumer goods giant Procter
 Gamble (PG) was revising its supply chain to reflect changes it expects in a
VUCA world. Global Product Supply Officer R. Keith Harrison reported on the
steps the company was taking to ensure that the company’s supply chain could
accommodate the volatility, uncertainty, complexity, and ambiguity of today’s business
worlds. “VUCA is the reality for the foreseeable future, and it affects how we think
about supply chains and design,” he told attendees at the 2010 Supply Chain and
Logistics conference (Supply Chain Quarterly staff, 2010).
PG has applied the VUCA concept beyond its supply chain. During a visit with
students at Vanderbilt University’s Owen Graduate School of Management, PG CEO
Bob McDonald discussed values-based leadership in an increasingly VUCA world.
During the speech, he shared his ten rules of successful leadership, among them:
	Rule #7: Ineffective strategies, systems, and cultures are bigger barriers
to achievement than the talents of people. Recruiting and training are top
priorities.
	Rule # 9: Organizations must renew themselves. Only nine of the original
Fortune 50 companies are still on the list today. The majority of successful companies
don’t realize that the world is changing around them. What differentiates those
who succeed from those who don’t is the ability to learn.
Source: Knight, 2011.
Example: Procter  Gamble
12 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 	 To subscribe, visit www.uncexec.com
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). It’s a VUCA
world. CIPS. Retrieved from http://www.
slideshare.net/dcaron/its-a-vuca-world-cips-
cio-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-world-
unilever-bets-on-sustainable-living-as-a-
transformative-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/vuca-
interview-2010-final.pdf.
Horney, N., Pasmore, B.  O’Shea, T. (2010).
Leadership agility: A business imperative for a
VUCA world. People  Strategy, 33, 4.
Intagliata, J.  Small, D. (2005). McDonald’s
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/frontline-
leadership/2010/12/leading-effectively-in-a-
vuca.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-clo-
arielgroupfinalslidesv2.
Knight, B. (2011 September 7). PG CEO
Bob McDonald on values-based leadership.
Owenbloggers.com. Retrieved from http://
www.owenbloggers.com/2011/09/07/
pg-ceo-bob-mcdonald-on-value-based-
leadership/.
Lanik, M.  Eurich, T. (2012 June 28).
Simulate leadership for success. Chief
Learning Officer. Retrieved from http://
clomedia.com/articles/view/simulate-
leadership-for-success/print:1.
Management Education Group staff
(2011 November 1). It’s 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-the-
new-normal-for-talent-management-and-
workforce-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-a-
turbulent-vuca-world-shifting-to-an-adaptive-
approach.
Supply Chain Quarterly staff (2010
December 20). PG 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-vuca-
times/.
Conclusion
The volatility, uncertainty, complexity, and ambiguity
inherent in today’s 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,
V U
C A
complex critical-thinking skills are required of business
leaders. HR and talent management professionals
can help their organizations succeed in today’s VUCA
environment by developing leaders who can counter
volatility, uncertainty, complexity, and ambiguity with
vision, understanding, clarity, and agility.
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 most—in 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 marketplace—which
is the ultimate VUCA environment.
13
To learn more, visit www.edi.uncexec.com.
At UNC’s Executive Development Institute,
you’ll gain the core knowledge of an MBA program
without the long-term time commitment. You’ll
also learn how to view the business world from a
senior executive’s perspective. And you’ll develop the
key leadership characteristics that lead to effective
strategic performance. The result? In two weeks,
you’ll be fully prepared for that next step.
If you’re ready to take the
next step in your career,
make a quick trip back to
the classroom first.
If you’re ready to take the
next step in your career,
make a quick trip back to
the classroom first.
If you’re ready to take the
next step in your career,
make a quick trip back to
the classroom first.
UNC EXECUTIVE DEVELOPMENT
The Power of Experience.
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
If you’re ready to take the
next step in your career,
make a quick trip back to
the classroom first.
14 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 	 To subscribe, visit www.uncexec.com
Got Game?
The Use of Gaming in
Learning and Development
Kip Kelly
Director
UNC Executive Development
G A M I N G I N L E A R N I N G A N D D E V E L O P M E N T
15
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 games—and the people who play them—have
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.
Games Are Big Business
Video games today are ubiquitous. Just about every
electronic device with a screen–TVs, PCs, tablets, and
smart phones–have games installed and ready to play,
and people are taking advantage of their accessibility.
A recent study by the NPD Group, a market tracking
Gaming Terms Defined
Game: A competitive activity that involves skill,
chance, or endurance.
Video game: A game played by electronically
manipulating images produced by a computer
program on a television screen or display.
Simulation game: A game that attempts to
represent real or hypothetical processes, mechanisms,
or systems.
Serious game: Computer or video games designed
for a primary purpose other than pure entertainment;
often designed for the purpose of education and/or
solving a problem.
Alternate reality game: An interactive game that
uses the real world as a platform, often involving
multiple media to tell a story.
MMORPGs: Massively multi-player online role-
playing games.
firm, found that 211.5 million—or two-thirds—of
Americans play video games (Boorstin, 2012).
Americans aren’t 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
16 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 	 To subscribe, visit www.uncexec.com
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 LD purposes, and nearly eight out of 10 U.S.
employers plan on doing so in 2013 (Steinberg, 2012).
Who Plays Video Games?
Video games have changed and matured over the years,
and so have users. The average game player today is 30
years old. Sixty-eight percent of gamers are 18 years of
age or older, and 37 percent are over the age of 35. Just
over half of gamers are men, according to the ESA, but
women gamers are gaining fast. Forty-seven percent of
all players are women, and women over the age of 18
are one of the industry’s fastest growing demographics.
In fact, women now represent a significantly larger
portion of the game-playing population (30 percent)
than boys age 17 or younger (18 percent). Perhaps the
most interesting characteristic of gamers is that the
average adult gamer has been playing video games for
14 years. That’s a lot of game time.
What’s 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).
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).
32%
31%
37%
Less than 18 years of age
18-35 years of age
36 years of age and older
Who’s Playing
Source: Entertainment Software Association (2012).
G A M I N G I N L E A R N I N G A N D D E V E L O P M E N T
17
Serious Games in Learning
and Development
Serious games can allow players to apply what they
have learned in an LD experience and apply it in a
safe, simulated environment. For example, health care
professionals can practice a new medical procedure
using a serious sim game before introducing it in the
workplace. There is also evidence that serious games
can develop soft skills like emotional intelligence,
communication management, and critical problem
solving and collaboration skills (Marinho, 2012).
Some LD professionals argue that video games can help
develop the leadership skills that organizations will need
in the future. Tomorrow’s workplace will be global, faster-
paced, competitive, and more virtual than ever before.
Online games, specifically massively multiplayer online
role-playing games (MMORPGs), “offer a glimpse at how
leaders develop and operate in environments that are
highly distributed, global, hyper-competitive, and virtual.”
(IBM  Seriosity staff, 2007).
There have been several studies conducted on learning
and serious games, and results are encouraging. A
recent study by the Office of Naval Research found that
video game players performed 10-20 percent better in
perceptual and cognitive ability than non-game players,
and that video games helped adults process information
faster (Steinberg, 2012). Another study by the Federation
of American Scientists found that students remembered
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
game’s 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 non-
game 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 LD 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 change—skills 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 tomorrow’s workplace. The game’s
environment features fluid workforces, self-organized
and collaborative work activities, and decentralized,
nonhierarchical leadership; all features that will be
prevalent in tomorrow’s 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 business—one that is open, virtual, knowledge-
driven, 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®
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.
Innovation Games®
Organizations Are Serious About Games
Serious games are increasingly being used by large U.S.
employers to recruit, improve communication among
managers and their staffs, and to train employees and
new hires at all levels in their organizations (Derryberry,
2007). The U.S. Department of Defense, the U.S.
Army, Nortel, Cold Stone Creamery, McKinsey  Co.,
SAS Institute, and Digital Equipment are just a few
organizations using serious games in their workplaces
(Derryberry, 2007; Maurer, 2012; Steinberg, 2012).
G A M I N G I N L E A R N I N G A N D D E V E L O P M E N T
19
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 Grumman’s Virtual Jet
Works introduces students to engineering concepts and
is demonstrated at college recruitment fairs (Serious
Games Market staff, 2011). Cisco’s 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 Teddy’s 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 America’s Army in 2002
and updates the game every three to four months.
Game versions include America’s Army: Special Forces
and America’s 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 don’t know how members of
the community feel about them or who the community
leaders are. The game’s 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 Army’s junior leaders to understand
the consequences, good and bad, of their speech, body
language, posture, temperament, and action,” says
Ben Jordan, director of TRISA’s Operational Environment
Lab, the Army’s 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).
Generating New Insights
and Solving Problems
Serious games can be an effective method to develop
talent in an organization. They can also serve as a
valuable information source for employers. Serious games
can yield insights that organizations can use to assess
performance, identify patterns, and predict behaviors
in situations that may occur in the real world. LD
development professionals can use these insights to gain
a better understanding of individual and organizational
capabilities and to identify potential gaps.
Serious games can also serve as a source for new
ideas, helping organizations become more innovative.
Organizations are using serious games to tap into the
knowledge and experience of the entire organization,
and in some cases, beyond the organization to
“crowd-source” new ideas. According to information
technology research firm, Gartner, Inc., more than half
of organizations that manage innovation processes will
gamify those processes by 2015.
Organizations can also use serious games to analyze
the abundance of data (such as operational, customer,
and sales data) that organizations collect from various
sources. Serious games can give employees access to
real-world, real-time “Big Data” to make decisions and
experiment in virtual environments without the risks
and consequences that they would face in the “real
world”. As players engage and interact in the virtual
environment, both the players and the game become
more sophisticated. In other words, the system gets
“smarter” while the constant stream of new, real-time
data continues to change the dynamics of the game.
Many organizations are already using serious games to
gain new insights and solve real business challenges -
and there are some who believe serious games have the
potential to solve some of the world’s biggest problems.
There are already games designed to fight AIDS, global
poverty, water scarcity, and climate change. Many of
these games are available online from anywhere in the
world, empowering people from all over to come up with
creative solutions to our most urgent social problems.
20 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 	 To subscribe, visit www.uncexec.com
Boinodiris, P. (2011 December 14). Let’s play!
Turning serious business issues into games.
Forbes. Retrieved from http://www.forbes.
com/sites/ciocentral/2011/12/14/lets-play-
turning-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-billion-
dollar-industry.
Clarke, R. (2012 April 30). Why games
don’t teach. American Society for Training
and Development. Retrieved from http://
www.astd.org/Publications/Blogs/L-and-
D-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-bunchball-
gamification.
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 work—seriously!.
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-look-
to-serious-games-for-organisational-learning-
and-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/serious-
games-invade-the-military-medical-and-
corporate-worlds/.
Melchor, A. (2012 July 03). Computer games
for leadership development. Slideshare.
Retrieved from http://www.
slideshare.net/budmelchor/computer-
gaming-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/using-
gamification-to-motivate-millennials.aspx.
Roth, M. (2011 December 8). TRADOC-
sponsored 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-2011-
serious-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 tomorrow’s answer to executive training.
Fast Company. Retrieved from http://www.
fastcompany.com/1824740/video-games-are-
tomorrows-answer-executive-training.
Conclusion
Video games have been around for years, growing in
popularity and sophistication. Most of today’s workers
grew up playing these games, so it comes as no
surprise that organizations have started to use gaming
technology in new and exciting ways–including 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.
FoldIt
Foldit, an online puzzle video game developed by the Center for Game Science at the University of Washington
in collaboration with the University’s 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 can’t match,
the players successfully configured the structure of the enzyme in 10 days.
Source: FoldIt staff, n.d.
21
UNC EXECUTIVE DEVELOPMENT
The Power of Experience.
To learn more, visit www.bhr.uncexec.com.
B U S I N E S S A N D H U M A N R E S O U R C E S
Lead your
HR organization
into the future.
Lead your
HR organization
into the future.
Lead your
HR organization
into the future.
Now more than ever, senior HR leaders need the knowledge,
skills, and experience to respond to emerging trends that are
shaping the future of global business. Offered in partnership
with the Society for Human Resource Management
(SHRM), UNC’s 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®
Building a Resilient
Organizational Culture
Marion White
Director
UNC Executive Development
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R E S I L I E N C E I N T H E W O R K P L A C E
23
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 resilience—the
ability to bounce back in the face of a setback—the new
priority in leadership development. The good news is that
resilience can be taught.
Promise
This white paper:
• Explores why resilience is more important than ever
for organizations to cultivate.
• Explains the difference between wellness programs
and building a resilience culture.
• Discusses why resilience should be cultivated, not
just at the senior leadership level, but at all levels in
an organization.
• Offers steps HR and talent managers can take to
develop resilient organizational cultures.
• Provides examples of organizations that have
engaged in a resilience initiative and the benefits
they realized as a result.
Resilience Is Crucial
Thought leaders are increasingly calling today’s turbulent
business world a “VUCA” environment—one that is
volatile, uncertain, complex, and ambiguous. To succeed
in this environment, organizations must be more adaptive
and agile than ever before—they must be resilient.
Organizations that lack resilience, that ability to bounce
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.
5%
10%
15%
20%
25%
30%
How Engagement Affects
Financial Results
Same year operating margin: Study of 50 global companies
Low
traditional
engagement
companies
High
traditional
engagement
companies
High
sustainable
engagement
companies
Source: Towers Watson normative database 2012.
9.9
14.3
27.4
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Resilience Requires a Culture Change
To create a culture that fosters resilience, HR and talent
management professionals must do more than offer stress
management and yoga classes, although these can and
do have a beneficial role. It requires the development
of an organizational culture that encourages trust,
accountability, and flexibility.
Resilient organizational cultures give all employees—
from the CEO down—permission to take care of their
physical, mental, emotional, and spiritual needs with the
understanding that when these needs are tended to,
resilience occurs, and the entire organization benefits
through increased productivity, job performance,
retention, engagement, and physical well-being.
The Towers Watson study recommends that employers
strive for “sustainable engagement” by creating policies
and practices that make it possible for employees to
better manage their stress, to live more balanced lives,
and to have more autonomy over when and where they
get their work done.
Tony Schwartz, CEO of The Energy Project, agrees with
the Towers Watson recommendations. “The key factor is a
work environment that more fully energizes employees by
promoting their physical, emotional, and social well-being.
I’d add to that mental and spiritual well-being—or more
specifically, the added energy derived from the capacity
for absorbed focus and a strong sense of purpose.”
Creating policies and practices that support employees’
ability to manage their energy across all four dimensions
makes it possible for employees to better manage their
stress, to live more balanced lives, and to have more
autonomy over when and where they get their work
done.
“For organizations, the challenge is to shift from their
traditional focus on getting more out of people, to
investing in meeting people’s core needs so they’re freed,
fueled, and inspired to bring more of themselves to work,
more sustainably,” says Schwartz.
According to Spangler et al, research has found that some
people are more resilient than others. These people can
bounce back from setbacks faster than others, are more
adaptive, and demonstrate a secure emotional attachment
to others. They have a good sense of humor, are more
action-oriented, have a sense of personal competence,
take time for personal replenishment, and can express
needs and engage the support of others.
Perhaps most importantly, the authors conclude, research
finds that individual resilience is modifiable; it can be
learned, giving HR and talent management professionals
an opportunity to teach resilience at the individual and
organizational levels.
PHYSICAL MENTAL EMOTIONAL SPIRITUAL
R E S I L I E N C E I N T H E W O R K P L A C E
25
1. Obtain senior leadership support.
Resilient cultures begin with leaders who understand
and support building resilience at the individual and
organizational level. To obtain senior leader buy-in, HR
and talent management professionals can share research
such as the Towers Watson Global Workforce Study and
this white paper with top management. They can explain
how resilient employees are happier, more productive,
and more agile than their less resilient counterparts.
Senior leadership support for an organization-wide
resilience initiative may be easier to obtain if it is
exposed to leadership development opportunities (such
The Energy Project aims to energize people and transform companies by offering a detailed
blueprint for fueling a fully engaged workforce. Drawing on the multidisciplinary science
of high performance, The Energy Project has developed a set of simple principles and
highly actionable practices for more effectively managing energy to drive higher levels of
engagement, productivity, and innovation in people, leaders, and organizations.
HR and talent management professionals can find out if they are currently managing their
four sources of energy: physical, emotional, mental, and spiritual by taking The Energy
Project’s 20-question assessment, The Energy Audit. Results will be emailed immediately and
will include behaviors that should be addressed to improve performance, effectiveness, and
satisfaction, on the job and off. The audit link and results can be shared with team members
for comparison and team-building purposes.
© The Energy Project 2013.
About The Energy Project
Steps HR Can Take to Introduce Resilience into Their
Organizations’ Cultures
as stress management classes) that specifically target
resilience-building. Developing resilient leaders will help
them better grasp and support the benefits of building
resilience at all organizational levels.
2. Build safe and secure work
communities.
The workplace is often strained, stressful, and
overwhelming. Employees have been taught to check
their feelings at the door to focus on their work—to
“compartmentalize” their personal and professional
26 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 	 To subscribe, visit www.uncexec.com
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 emotionally—to 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.
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 Project’s 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.
Example: PricewaterhouseCoopers
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 meets—whether 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?
• What was the most important thing you learned
last week?
• What are your goals for this week?
• What are you most grateful for?
R E S I L I E N C E I N T H E W O R K P L A C E
27
3. Encourage all employees—from the CEO down—to embrace these tips to
increase energy and productivity.
• Encourage 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.
• Encourage 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 one’s mind, the less likely that
they will be remembered. Encourage employees to
download everything—the “to do’s,” 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.
• Ask 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.
• Encourage 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
brain’s capacity for absorbed attention.
• Encourage employees to take a few minutes each
day—either just before they leave work or just before
they go to sleep—to identify and write down the two
or three most important things they want to accomplish
tomorrow, and when they intend to work on them.
• Encourage 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 can’t change what they don’t notice
(Schwartz, various).
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Genentech has a rich history of medical breakthroughs and cutting-
edge science. As the world’s first biotechnology company, today
Genentech develops and manufactures medicines to treat patients with serious or life-
threatening 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 team’s 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 people’s 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 people’s energy. Examples include:
• Shorter 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 meetings”—short, on-the-go meetings comprised of small groups of people
tackling creative challenges
• An 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 off-
site and leadership meetings to help their employees manage increased demands, improve
productivity and satisfaction, and to increase their engagement scores.
© The Energy Project 2013.
Example: Genentech
R E S I L I E N C E I N T H E W O R K P L A C E
29
Sony Europe was experiencing challenging times and was looking to drive
significantly higher levels of energy and performance, and to reduce sick
time and employee turnover.
In collaboration with senior executives in London, The Energy Project created a four-day
retreat that used a modified version of the company’s curriculum for the top leaders in
Sony Europe. The program was delivered in two-day segments, with a month between
meetings. The response from leaders was so enthusiastic that The Energy Project next
designed a three-day version of the program for their direct reports. Today, more than
3,000 Sony Europe employees have attended one of these three-day versions.
Sony Europe has instituted a number of organizational changes designed to support a
new way of working. These include restructuring meetings to include regular breaks;
banning the use of email during meetings to increase focus and productivity; providing
healthy snacks during the day; building an on-site gym and renewal rooms; and
creating a web portal that provides detailed information about different aspects of
the curriculum.
In the division that most openly embraced the initiative, sick time decreased by 36
percent; staff turnover decreased 60 percent; 75 percent of division employees said the
program had a positive impact on their business relationships; and 90 percent say their
energy and performance have increased significantly.
© The Energy Project 2013.
Example: Sony Europe
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 organi-
zational 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
resilience—taking action. GCC. Retrieved
from https://www.gettheworldmoving.
com/blog/building-employee-resilience-
and-responsiveness-to-change.
George, B. (2013 March 22). Resilience
through mindful leadership. Huffington
Post. Retrieved from http://www.
huffingtonpost.com/bill-george/resilience-
through-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-resilience-
matters-in-the-workplace-and-what-
employers-can-do-to-increase-it/.
Lee, D. (2008). Why you will need a
resilient workforce in today’s economy.
HumanNature@Work. Retrieved from
http://www.humannatureatwork.com/
articles/workplace_stress/resilientworkforce.
htm.
Schwartz, T. (2010 September 7). Six
ways to supercharge your productivity.
The Energy Project. Retrieved from http://
www.theenergyproject.com/blog/six-ways-
supercharge-your-productivity.
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-through-
your-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-being-
excellent-anything.
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-not-
computer-try-you-may.
Schwartz, T. (2012 May 29). Take back
your life in seven simple steps. The Energy
Project. Retrieved from http://www.
theenergyproject.com/blog/take-back-your-
life-7-simple-steps.
Schwartz, T. (2012 November 1). Resilience
in the eye of the storm. The Energy
Project. Retrieved from http://www.
theenergyproject.com/blog/resilience-eye-
storm.
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-research-
how-employee-engagement-hits-bottom-
line.
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-you-
could-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-Research-
Results/2012/07/2012-Towers-Watson-
Global-Workforce-Study.
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.
31
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The Big Data Talent Gap
Introduction
Big data—the 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
today’s competitive marketplace. If HR and talent man-
agement professionals haven’t 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:
• Analyzes the big data revolution and the potential it
offers organizations.
• Explores the critical talent needs and emerging talent
gaps related to big data.
• Offers examples of organizations that are meeting
this challenge head on.
• Recommends four steps HR and talent management
professionals can take to bridge the talent gap.
The Big Data Revolution
The International Data Corporation (IDC) describes big
data as “the new generation of technologies and
architectures designed to extract value economically from
very large volumes of a wide variety of data by enabling
high-velocity capture, discovery and/or analysis.” (Villars,
Eastwood  Olofson, 2011.) In other words, as authors
Viktor Mayer-Schönberger and Kenneth Cukier write in their
book, “Big Data: A Revolution that Will Transform How We
Live, Work, and Think” (2013), big data “refers to the things
one can do at a large scale that cannot be done at a smaller
one, to extract new insights or create new forms of value in
ways that change markets, organizations, the relationships
between citizens and governments, and more.”
The potential applications of big data analytics are vast.
Internet giant Google, for example, uses big data analytics
to identify flu outbreaks in the United States in real
time—a feat that takes the Centers for Disease Control and
Prevention (CDC) about two weeks to complete because
it relies on slower reporting mechanisms. Google can do
this because it receives more than three billion search
queries on a daily basis. By using big data analytics, Google
was able to identify 45 search terms that when used in a
mathematical model, showed a strong correlation between
Stan Ahalt
Director
The Renaissance Computing Institute (RENCI)
Kip Kelly
Director
UNC Executive Development
T H E B I G D A T A T A L E N T G A P
33
their predictions and the CDC’s flu outbreak statistics
(Schönberger  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
child’s 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 operations—and 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-Bay’s 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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The Trends Fueling the Revolution
Several trends have converged to fuel the big data
revolution. First, technology costs continue to plummet.
It is cheaper than ever to purchase memory and storage,
and good quality, open-source software is competing
with commercial software, putting pressure on
commercial software developers to keep their prices
down (CIO editors, 2012). Second, technology has
evolved to make business analytics more accessible and
faster than ever before. Third, businesses are acquiring
new data at an astonishing rate and from more varied
sources, such as operational data, customer service
data, sales transaction data, and machine or device data
(Manyika et al., 2011).
The amount of new data being created is mindboggling.
The IDC forecasts that there will be 4 trillion gigabytes
of new data created in 2013, nearly 50 percent more
than in 2012 (Press, 2012). Google alone processes more
than 24 petabytes of data each day, a thousand times
more than all of the printed materials currently housed
in the U.S. Library of Congress (Mayer-Schönberger 
Cukier, 2013). Mayer-Schönberger and Cukier also
report that Facebook has more than 10 million photos
uploaded every hour, and that the number of messages
on Twitter grows about 200 percent each year. That’s a
lot of data.
Mayer-Schönberger and Cukier note that while
technology has played a large part in creating the big
data revolution, something else also occurred to push
it along. “There was a shift in mindset about how data
could be used,” they write. “Data was no longer regarded
as static or stale….Rather, data became a raw material
of business, a vital economic input, used to create a new
form of economic value.”
What Is Big Data?
”Big data are high volume, high velocity, and/or high
variety information assets that require new forms
of processing to enable enhanced decision making,
insight discovery and process optimization.”
Source: Beyer  Laney, 2012.
The Three Vs of Big Data
Data challenges can be “big” in terms of three
characteristics, commonly known as the “Three V’s”:
Volume –
Challenges that arise from the vast amount of
data that must be processed.
Velocity –
Challenges that arise from the need to process
data within a certain timeframe.
Variety –
Challenges that arise from the many different types
of data needed to understand a situation.
Source: Ahalt, 2012.
has been in a role for three years, hasn’t been promoted,
and hasn’t changed roles, there’s a far higher probability
of attrition than someone who doesn’t 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 Yahoo’s
computer logs for the company’s virtual private network
(the network tele-commuting employees access when
working remotely) and determined that remote employees
weren’t logging in to the VPN often enough to justify the
policy (Klobucher, 2013).
T H E B I G D A T A T A L E N T G A P
35
Seven Insights into Big Data
Research conducted by MGI and McKinsey’s Business Technology Office examined the
state of big data and found the following seven insights:
1. Data have swept into every industry and business function and are now an important
factor of production, labor, and capital.
2. There are five ways big data can create value:
	 a. Big data can unlock significant value by making information transparent
and usable at much greater frequency.
	 b. As organizations create and store more transactional data in digital form,
they can collect more accurate and detailed performance information on
everything.
	 c. Big data allows ever-narrower segmentation of customers and can result
in much more precisely tailored products or services.
	 d. Sophisticated analytics can substantially improve decision-making.
	 e. Big data can be used to improve the development of the next generation
of products and services.
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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The Big Data Talent
Shortage
The demand for big data talent is growing rapidly. A 2012
survey by InformationWeek found that 40 percent of
respondents said they planned to increase their staff in big
data and analytics in the upcoming year and estimated
that big data staffing would increase by 11 percent over
the next two years (Henschen, 2012).
The McKinsey study supports these findings. The authors
predict that there will be a severe shortage of those who
can analyze and interpret big data, predicting that by
2018, the United States could face a shortage of up to
190,000 workers with deep analytical skills and 1.5 million
managers and analysts with the ability to use the big
data analytics to make effective decisions. (Manyika et al,
2011.) This includes the ability to integrate findings from
big data with knowledge derived from other techniques
which offer different strengths and biases, such as focus
groups and targeted surveys.
The increasing demand for big data analysts who can
crunch and communicate the numbers and the lack of
managers and business leaders who can interpret the
data means there is a growing talent shortage in the field.
A survey conducted by The Big Data London group (in
Raywood, 2012) found that 78 percent of respondents
said there was a big data talent shortage, and 70 percent
believed there was a knowledge gap between big data
workers and those commissioning the projects (e.g.,
managers and CIOs). Another survey by NewVantage
Partners (2012) found that 60 percent of respondents
reported finding it very difficult to find and hire big data
professionals, and 50 percent of respondents said it
was very difficult to find and hire business leaders and
managers who could identify and optimize business
applications in big data.
This impending talent shortage will create a significant
challenge for HR and talent management professionals
responsible for recruiting, developing, and retaining
a critical skill set that will soon be in high-demand. To
help their organizations realize the full potential of big
data, HR and talent management professionals must
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.
Big Data Skills
According to the editors of CIO, big data scientists and
analysts need strong math skills and proficiency in working
with massive databases and with emerging database
technology. Plus, they must have a deep knowledge of
their businesses, understanding the business processes,
customers, and products. The most difficult big data skills
to find, they contend, include:
• Advanced analytics and predictive analysis skills
• Complex event processing skills
• Rule management skills
• Business intelligence tools
• Data integration skills (CIO editors, 2012.)
Big data analysts or scientists must possess skills
similar to their IT predecessors—they must have a solid
computer science background that includes knowledge of
applications, modeling, statistics, analytics, and math—
but they also need business savvy and the ability to
communicate their findings to business and IT leaders in
meaningful ways, skills that are not typically required on IT
job descriptions. “Good data scientists,” writes IBM, “will
not just address business problems, they will pick the right
problems that have the most value to the organization.”
(IBM staff, n.d.).
As Rob Sentz, vice president of marketing for Economic
Modeling Specialists International, notes in an interview
for Career Builder, big data analysts “need to understand
why they are using data. What is the end goal? Data is…
like an assembly (line) of facts, which aren’t necessarily the
same thing as truth. If facts are poorly interpreted, it could
lead to the wrong conclusions.” (Lorenz, 2012).
Hilary Mason, chief scientist for bitly, a URL shortening
service, offered her opinion in The Wall Street Journal.
Data scientists, she says, “must be able to take data sets
and model it mathematically and understand the math
T H E B I G D A T A T A L E N T G A P
37
required to build those models. And they must be able
to find insights and tell stories from that data. That
means asking the right questions—and 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
organization’s 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 won’t 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.
Recruiting and
Developing Big Data
Talent
Unfortunately, you won’t find big data talent coming out
of many colleges and universities because big data majors
are few and far between. The rapid growth of big data
has outpaced colleges’ and universities’ ability to develop
and implement new curriculums. A few universities are
ahead of the curve, though, including North Carolina
State University, which has a one-year Master of Science
in Analytics (MSA) program (supported by SAS, a business
analytics software and services provider headquartered in
Cary, North Carolina), University of Ottawa, Northwestern
University, DePaul University, University of Connecticut,
and Louisiana State University. Oklahoma State, Texas
AM, Texas Tech, California State University at Long
Beach, and the University of Alabama also have strong
analytics programs (Henschen, 2012). Data analytics
courses are also available through Carnegie Mellon and
New York University (Bradshaw, 2013).
IBM is following SAS’ footsteps in helping move formal
big data analytics education forward. In late 2012,
IBM announced that it would partner with Ohio State
University to develop a new data analytics center in
Columbus, Ohio. The center will offer research, client
services, and skills training (Press, 2012). IBM plans to
hire 500 big data consultants and researchers in the
next three years to staff the center and to work with the
university to develop a curriculum in business analytics
and mathematics (SmartBrief staff, n.d.).
IBM and SAS are both involved in another effort designed
to unite the private and educational sectors to meet
big data analytics educational needs. IBM, SAS, GE,
Cisco, and NetApp have recently joined with a number
of leading research universities to form the National
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ideas@work vol. 5

  • 1. B U S I N E S S I N S I G H T S F R O M U N C E X E C U T I V E D E V E L O P M E N T WHITE PAPERS FEATURED: VOLUME5 Developing Leaders in a VUCA Environment Got Game? The Use of Gaming in Learning and Development Building A Resilient Organizational Culture The Big Data Talent Gap BONUS SECTION! Reprinted from the best selling book “One Page Talent Management”
  • 2. 2 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com A message from the President of Executive Development at UNC Kenan-Flagler Business School Consistently ranked one of the world’s 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. 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 8th in the world for custom executive education and 4th among U.S. institutions. We also ranked highly in many individual categories, notably 2nd in the world for value, 1st 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 today’s 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. This volume also features a chapter from what’s been called the “talent management bible” - Marc Effron’s and Miriam Ort’s “One Page Talent Management”. This practical, science- based guide to accelerating talent growth has become a best seller in talent management circles, and the chapter we’ve 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. Susan Cates Susan_Cates@unc.edu
  • 3. 3 V U C A Developing Leaders in a VUCA Environment page 4 Got Game? The Use of Gaming in Learning and Development page 14 Building A Resilient Organizational Culture page 22 The Big Data Talent Gap page 32 One Page Talent Management page 42 Inside this issue (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.)
  • 4. 4 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com Developing Leaders in a VUCA Environment Kirk Lawrence Program Director UNC Executive Development 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 revolutions—like Gutenberg’s introduction of the printing press—the 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 1990’s, the military-derived acronym stands for the volatility, uncertainty, complexity, and ambiguity—terms 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: • Discusses the history of VUCA and how it applies to business strategy and development. • Explores how VUCA is relevant to leadership development. • Discusses the “VUCA Prime,” which flips the acronym to focus on vision, understanding, clarity, and agility. • Offers suggestions on what HR and talent managers must do to change their leadership development approach to foster leadership vision, understanding, clarity, and agility.
  • 5. DEVELOPING LEADERS IN A VUCA ENVIRONMENT 5 The Origins of VUCA The notion of VUCA was introduced by the U.S. Army War College to describe the more volatile, uncertain, complex, and ambiguous, multilateral world which resulted from the end of the Cold War (Kinsinger Walch, 2012). The acronym itself was not created until the late 1990s, and it was not until the terrorist attacks of September 11, 2001, that notion and acronym really took hold. VUCA was subsequently adopted by strategic business leaders to describe the chaotic, turbulent, and rapidly changing business environment that has become the “new normal.” By all accounts, the chaotic “new normal” in business is real. The financial crisis of 2008-2009, for example, rendered many business models obsolete, as organizations throughout the world were plunged into turbulent environments similar to those faced by the military. At the same time, rapid changes marched forward as technological developments like social media exploded, the world’s population continued to simultaneously grow and age, and global disasters disrupted lives, economies, and businesses.
  • 6. 6 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com In 2010, Unilever, one of the world’s 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, ‘It’s a very tough world,’ or you can say, ‘It’s a world that’s 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. Example: Unilever VUCA and Leadership Development This new VUCA environment, as Friedman notes, is taxing even the most able of leaders who may find their skills growing obsolete as quickly as their organizations change in this volatile, unpredictable landscape. Leadership agility and adaptability are now required skills if organizations are to succeed in this VUCA world. As Horney, Pasmore, and O’Shea, authors of “Leadership Agility: A Business Imperative for a VUCA World” note, to succeed, “leaders must make continuous shifts in people, process, technology, and structure. This requires flexibility and quickness in decision making.” (Horney, Pasmore, O’Shea, 2010). (For additional insights on a new approach for developing leadership agility, refer to the UNC Executive Development white paper: Leadership Agility: Using Improv to Build Critical Skills.) The Boston Consulting Group (BCG) concurs. A recent BCG study concluded that organizations today must shift their business models—and their leadership skills—to become “adaptive firms.” Adaptive firms can adjust and learn better, faster, and more economically than their peers, giving them an “adaptive advantage.” Adaptive firms, the study notes, include Apple, Google, 3M, Target, and Amazon. A report by the Center for Creative Leadership (Petrie, 2011) also notes that today’s VUCA business environment requires leaders to possess more complex and adaptive thinking abilities. It also notes that the methods used to develop these new skill requirements (like on-the-job training, coaching, and mentoring) have not changed much, and as a result, leaders are not developing fast enough or in the right ways to keep up with the “new normal” for business. HR and talent management professionals must position their organizations to succeed in today’s turbulent business environment by developing agile leaders. Applying the VUCA model as a framework to re-tool leadership development models may enable HR and talent management professionals to identify and foster the leaders their organizations need now and in the future.
  • 7. DEVELOPING LEADERS IN A VUCA ENVIRONMENT 7 VUCA Defined V 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 pheno- menon 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). U 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). 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. A 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.
  • 8. 8 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com The VUCA Prime The VUCA model identifies the internal and external conditions affecting organizations today. The VUCA Prime was developed by Bob Johansen, distinguished fellow at the Institute for the Future and the author of “Leaders Make the Future: Ten New Leadership Skills for an Uncertain World”. Johansen proposes that the best VUCA leaders are characterized by vision, understanding, clarity, and agility - the “flips” to the VUCA model. The VUCA Prime can be seen as the continuum of skills leaders can develop to help make sense of leading in a VUCA world. HR and talent management professionals can use the VUCA Prime as a “skills and abilities” blueprint when creating leadership development plans. In the VUCA Prime, volatility can be countered with vision because vision is even more vital in turbulent times. Leaders with a clear vision of where they want their organizations to be in three to five years can better weather volatile environmental changes such as economic downturns or new competition in their markets, for example, by making business decisions to counter the turbulence while keeping the organization’s vision in mind. Uncertainty can be countered with understanding, the ability of a leader to stop, look, and listen. To be effective in a VUCA environment, leaders must learn to look and listen beyond their functional areas of expertise to make sense of the volatility and to lead with vision. This requires leaders to communicate with all levels of employees in their organization, and to develop and demonstrate teamwork and collaboration skills. Complexity can be countered with clarity, the delibera- tive process to make sense of the chaos. In a VUCA world, chaos comes swift and hard. Leaders, who can quickly and clearly tune into all of the minutiae associated with the chaos, can make better, more informed business decisions. Finally, ambiguity can be countered with the ability to communicate across the organization and to move quickly to apply solutions (Kinsinger and Walch, 2012). Vision, understanding, clarity, and agility are not mutually exclusive in the VUCA prime. Rather, they are intertwined elements that help managers become stronger VUCA leaders. VUCA leaders must have foresight to see where they are going but must also remain flexible about how they get there (Apollo Research Institute staff, 2012). They must be self-aware about their strengths and weaknesses as leaders, adaptable, open to change, and, according to the Center for Creative Leadership, knowledgeable about their organization beyond their function (Management Education Group staff, 2011). Finally, they must work collaboratively and be excellent communicators to thrive in a complex VUCA environment (Kail, 2010 December 3). Above all, VUCA learners must be able to learn fast because change is constant. These skills and abilities are a far cry from the more function-specific skills and abilities leaders needed in the past to succeed. HR and talent management professionals must refocus their leadership development efforts to hone these more strategic, complex critical-thinking skills. VUCA Prime V ision U nderstanding C larity A gility
  • 9. DEVELOPING LEADERS IN A VUCA ENVIRONMENT 9 Steps Talent Managers Can Take Nick Petrie, senior faculty member at the Center for Creative Leadership writes in a 2011 study, Future Trends in Leadership Development, that there is a growing belief among senior leaders that the more traditional leadership development methods such as on-the-job training, job assignments, coaching, and mentoring, are falling short in helping them develop the capabilities they need to succeed in a VUCA environment. These methods are often at odds with the leadership demands in a VUCA world, where knowledge across the organization and the speed of learning outpace these slower and more job-specific learning methods. HR and talent management professionals must reframe leadership development activities to accommodate the faster-paced VUCA world and to focus less on behavioral competencies and more on complex thinking abilities and mindsets. Leadership development should be focused on learning agility, self-awareness, comfort with ambiguity, and strategic thinking (Petrie, 2011). To do so, HR and talent managers may want to begin at the selection process. Fast-food giant McDonald’s 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. Example: McDonald’s
  • 10. 10 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com Step 1: Hire Agile Leaders. Horney, Pasmore, and O’Shea (2011) recommend that HR and talent management professionals assess agility and complex thinking skills during the selection process by using a structured interview format designed to evoke from the examples of past agility on the job. Some sample questions they recommend include: • Give an example of when you performed well in a work environment that featured rapid change and/or ambiguity. Did you enjoy this environment? What did you learn? • Give an example of when your ability to be decisive was put to the test—when you had to convey a sense of urgency in decision making. What was the situation, what factors did you consider when making the decision, and what was the outcome? • How do you determine when you need to gather more information before making a decision versus making a decision based on the information you have at hand? Give recent examples of when you made a quick decision based on the information you had immediately available and a situation where you opted to collect more information before making a decision. Which decision-making style was more comfortable for you and why? • Give an example of when you modified your personal style to achieve an important work objective. What was the situation, how did you change your approach, and what was the outcome? HR and talent management professionals can formulate other questions that can assess a candidate’s strategic thinking skills, self-awareness, openness to change, ability to collaborate and communicate across functions, and other skills required in a VUCA environment. The key is to attract leaders into the organization who already have these skills and abilities. Step 2: Develop Existing Leaders to Be Agile Leaders. On-the-job training, job assignments, coaching, and mentoring will still have a place in the training and development of employees, but to develop VUCA leaders, HR and talent development professionals must focus on programs that help develop agility, adaptability, innovation, collaboration, communication, openness to change, and other, higher-order critical thinking skills. And they need to deliver those programs faster (via social media and other technology) to keep up with the pace of change. (For additional insights on using technology to deliver LD programs, refer to the UNC Executive Development white paper: Wired to Learn: How New Technologies are Changing LD Delivery.) Horney, Pasmore, and O’Shea recommend that HR and talent management professionals engage in scenario planning about possible futures when developing leadership programs. Scenario planning about futures involves projecting possible situations and deciding how the organization would or would not react. Scenario planning can help identify the knowledge, skills, and
  • 11. DEVELOPING LEADERS IN A VUCA ENVIRONMENT 11 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 leader’s “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). In 2010, Supply Chain Quarterly staff reported that consumer goods giant Procter Gamble (PG) was revising its supply chain to reflect changes it expects in a VUCA world. Global Product Supply Officer R. Keith Harrison reported on the steps the company was taking to ensure that the company’s supply chain could accommodate the volatility, uncertainty, complexity, and ambiguity of today’s business worlds. “VUCA is the reality for the foreseeable future, and it affects how we think about supply chains and design,” he told attendees at the 2010 Supply Chain and Logistics conference (Supply Chain Quarterly staff, 2010). PG has applied the VUCA concept beyond its supply chain. During a visit with students at Vanderbilt University’s Owen Graduate School of Management, PG CEO Bob McDonald discussed values-based leadership in an increasingly VUCA world. During the speech, he shared his ten rules of successful leadership, among them: Rule #7: Ineffective strategies, systems, and cultures are bigger barriers to achievement than the talents of people. Recruiting and training are top priorities. Rule # 9: Organizations must renew themselves. Only nine of the original Fortune 50 companies are still on the list today. The majority of successful companies don’t realize that the world is changing around them. What differentiates those who succeed from those who don’t is the ability to learn. Source: Knight, 2011. Example: Procter Gamble
  • 12. 12 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com 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). It’s a VUCA world. CIPS. Retrieved from http://www. slideshare.net/dcaron/its-a-vuca-world-cips- cio-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-world- unilever-bets-on-sustainable-living-as-a- transformative-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/vuca- interview-2010-final.pdf. Horney, N., Pasmore, B. O’Shea, T. (2010). Leadership agility: A business imperative for a VUCA world. People Strategy, 33, 4. Intagliata, J. Small, D. (2005). McDonald’s 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/frontline- leadership/2010/12/leading-effectively-in-a- vuca.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-clo- arielgroupfinalslidesv2. Knight, B. (2011 September 7). PG CEO Bob McDonald on values-based leadership. Owenbloggers.com. Retrieved from http:// www.owenbloggers.com/2011/09/07/ pg-ceo-bob-mcdonald-on-value-based- leadership/. Lanik, M. Eurich, T. (2012 June 28). Simulate leadership for success. Chief Learning Officer. Retrieved from http:// clomedia.com/articles/view/simulate- leadership-for-success/print:1. Management Education Group staff (2011 November 1). It’s 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-the- new-normal-for-talent-management-and- workforce-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-a- turbulent-vuca-world-shifting-to-an-adaptive- approach. Supply Chain Quarterly staff (2010 December 20). PG 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-vuca- times/. Conclusion The volatility, uncertainty, complexity, and ambiguity inherent in today’s 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, V U C A complex critical-thinking skills are required of business leaders. HR and talent management professionals can help their organizations succeed in today’s VUCA environment by developing leaders who can counter volatility, uncertainty, complexity, and ambiguity with vision, understanding, clarity, and agility. 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 most—in 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 marketplace—which is the ultimate VUCA environment.
  • 13. 13 To learn more, visit www.edi.uncexec.com. At UNC’s Executive Development Institute, you’ll gain the core knowledge of an MBA program without the long-term time commitment. You’ll also learn how to view the business world from a senior executive’s perspective. And you’ll develop the key leadership characteristics that lead to effective strategic performance. The result? In two weeks, you’ll be fully prepared for that next step. If you’re ready to take the next step in your career, make a quick trip back to the classroom first. If you’re ready to take the next step in your career, make a quick trip back to the classroom first. If you’re ready to take the next step in your career, make a quick trip back to the classroom first. UNC EXECUTIVE DEVELOPMENT The Power of Experience. 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 If you’re ready to take the next step in your career, make a quick trip back to the classroom first.
  • 14. 14 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com Got Game? The Use of Gaming in Learning and Development Kip Kelly Director UNC Executive Development
  • 15. G A M I N G I N L E A R N I N G A N D D E V E L O P M E N T 15 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 games—and the people who play them—have 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. Games Are Big Business Video games today are ubiquitous. Just about every electronic device with a screen–TVs, PCs, tablets, and smart phones–have games installed and ready to play, and people are taking advantage of their accessibility. A recent study by the NPD Group, a market tracking Gaming Terms Defined Game: A competitive activity that involves skill, chance, or endurance. Video game: A game played by electronically manipulating images produced by a computer program on a television screen or display. Simulation game: A game that attempts to represent real or hypothetical processes, mechanisms, or systems. Serious game: Computer or video games designed for a primary purpose other than pure entertainment; often designed for the purpose of education and/or solving a problem. Alternate reality game: An interactive game that uses the real world as a platform, often involving multiple media to tell a story. MMORPGs: Massively multi-player online role- playing games. firm, found that 211.5 million—or two-thirds—of Americans play video games (Boorstin, 2012). Americans aren’t 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
  • 16. 16 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com 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 LD purposes, and nearly eight out of 10 U.S. employers plan on doing so in 2013 (Steinberg, 2012). Who Plays Video Games? Video games have changed and matured over the years, and so have users. The average game player today is 30 years old. Sixty-eight percent of gamers are 18 years of age or older, and 37 percent are over the age of 35. Just over half of gamers are men, according to the ESA, but women gamers are gaining fast. Forty-seven percent of all players are women, and women over the age of 18 are one of the industry’s fastest growing demographics. In fact, women now represent a significantly larger portion of the game-playing population (30 percent) than boys age 17 or younger (18 percent). Perhaps the most interesting characteristic of gamers is that the average adult gamer has been playing video games for 14 years. That’s a lot of game time. What’s 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). 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). 32% 31% 37% Less than 18 years of age 18-35 years of age 36 years of age and older Who’s Playing Source: Entertainment Software Association (2012).
  • 17. G A M I N G I N L E A R N I N G A N D D E V E L O P M E N T 17 Serious Games in Learning and Development Serious games can allow players to apply what they have learned in an LD experience and apply it in a safe, simulated environment. For example, health care professionals can practice a new medical procedure using a serious sim game before introducing it in the workplace. There is also evidence that serious games can develop soft skills like emotional intelligence, communication management, and critical problem solving and collaboration skills (Marinho, 2012). Some LD professionals argue that video games can help develop the leadership skills that organizations will need in the future. Tomorrow’s workplace will be global, faster- paced, competitive, and more virtual than ever before. Online games, specifically massively multiplayer online role-playing games (MMORPGs), “offer a glimpse at how leaders develop and operate in environments that are highly distributed, global, hyper-competitive, and virtual.” (IBM Seriosity staff, 2007). There have been several studies conducted on learning and serious games, and results are encouraging. A recent study by the Office of Naval Research found that video game players performed 10-20 percent better in perceptual and cognitive ability than non-game players, and that video games helped adults process information faster (Steinberg, 2012). Another study by the Federation of American Scientists found that students remembered 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 game’s 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 non- game 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.
  • 18. 18 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com 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 LD 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 change—skills 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 tomorrow’s workplace. The game’s environment features fluid workforces, self-organized and collaborative work activities, and decentralized, nonhierarchical leadership; all features that will be prevalent in tomorrow’s 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 business—one that is open, virtual, knowledge- driven, 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® 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. Innovation Games® Organizations Are Serious About Games Serious games are increasingly being used by large U.S. employers to recruit, improve communication among managers and their staffs, and to train employees and new hires at all levels in their organizations (Derryberry, 2007). The U.S. Department of Defense, the U.S. Army, Nortel, Cold Stone Creamery, McKinsey Co., SAS Institute, and Digital Equipment are just a few organizations using serious games in their workplaces (Derryberry, 2007; Maurer, 2012; Steinberg, 2012).
  • 19. G A M I N G I N L E A R N I N G A N D D E V E L O P M E N T 19 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 Grumman’s Virtual Jet Works introduces students to engineering concepts and is demonstrated at college recruitment fairs (Serious Games Market staff, 2011). Cisco’s 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 Teddy’s 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 America’s Army in 2002 and updates the game every three to four months. Game versions include America’s Army: Special Forces and America’s 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 don’t know how members of the community feel about them or who the community leaders are. The game’s 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 Army’s junior leaders to understand the consequences, good and bad, of their speech, body language, posture, temperament, and action,” says Ben Jordan, director of TRISA’s Operational Environment Lab, the Army’s 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). Generating New Insights and Solving Problems Serious games can be an effective method to develop talent in an organization. They can also serve as a valuable information source for employers. Serious games can yield insights that organizations can use to assess performance, identify patterns, and predict behaviors in situations that may occur in the real world. LD development professionals can use these insights to gain a better understanding of individual and organizational capabilities and to identify potential gaps. Serious games can also serve as a source for new ideas, helping organizations become more innovative. Organizations are using serious games to tap into the knowledge and experience of the entire organization, and in some cases, beyond the organization to “crowd-source” new ideas. According to information technology research firm, Gartner, Inc., more than half of organizations that manage innovation processes will gamify those processes by 2015. Organizations can also use serious games to analyze the abundance of data (such as operational, customer, and sales data) that organizations collect from various sources. Serious games can give employees access to real-world, real-time “Big Data” to make decisions and experiment in virtual environments without the risks and consequences that they would face in the “real world”. As players engage and interact in the virtual environment, both the players and the game become more sophisticated. In other words, the system gets “smarter” while the constant stream of new, real-time data continues to change the dynamics of the game. Many organizations are already using serious games to gain new insights and solve real business challenges - and there are some who believe serious games have the potential to solve some of the world’s biggest problems. There are already games designed to fight AIDS, global poverty, water scarcity, and climate change. Many of these games are available online from anywhere in the world, empowering people from all over to come up with creative solutions to our most urgent social problems.
  • 20. 20 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com Boinodiris, P. (2011 December 14). Let’s play! Turning serious business issues into games. Forbes. Retrieved from http://www.forbes. com/sites/ciocentral/2011/12/14/lets-play- turning-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-billion- dollar-industry. Clarke, R. (2012 April 30). Why games don’t teach. American Society for Training and Development. Retrieved from http:// www.astd.org/Publications/Blogs/L-and- D-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-bunchball- gamification. 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 work—seriously!. 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-look- to-serious-games-for-organisational-learning- and-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/serious- games-invade-the-military-medical-and- corporate-worlds/. Melchor, A. (2012 July 03). Computer games for leadership development. Slideshare. Retrieved from http://www. slideshare.net/budmelchor/computer- gaming-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/using- gamification-to-motivate-millennials.aspx. Roth, M. (2011 December 8). TRADOC- sponsored 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-2011- serious-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 tomorrow’s answer to executive training. Fast Company. Retrieved from http://www. fastcompany.com/1824740/video-games-are- tomorrows-answer-executive-training. Conclusion Video games have been around for years, growing in popularity and sophistication. Most of today’s workers grew up playing these games, so it comes as no surprise that organizations have started to use gaming technology in new and exciting ways–including 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. FoldIt Foldit, an online puzzle video game developed by the Center for Game Science at the University of Washington in collaboration with the University’s 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 can’t match, the players successfully configured the structure of the enzyme in 10 days. Source: FoldIt staff, n.d.
  • 21. 21 UNC EXECUTIVE DEVELOPMENT The Power of Experience. To learn more, visit www.bhr.uncexec.com. B U S I N E S S A N D H U M A N R E S O U R C E S Lead your HR organization into the future. Lead your HR organization into the future. Lead your HR organization into the future. Now more than ever, senior HR leaders need the knowledge, skills, and experience to respond to emerging trends that are shaping the future of global business. Offered in partnership with the Society for Human Resource Management (SHRM), UNC’s 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®
  • 22. Building a Resilient Organizational Culture Marion White Director UNC Executive Development 22 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com
  • 23. R E S I L I E N C E I N T H E W O R K P L A C E 23 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 resilience—the ability to bounce back in the face of a setback—the new priority in leadership development. The good news is that resilience can be taught. Promise This white paper: • Explores why resilience is more important than ever for organizations to cultivate. • Explains the difference between wellness programs and building a resilience culture. • Discusses why resilience should be cultivated, not just at the senior leadership level, but at all levels in an organization. • Offers steps HR and talent managers can take to develop resilient organizational cultures. • Provides examples of organizations that have engaged in a resilience initiative and the benefits they realized as a result. Resilience Is Crucial Thought leaders are increasingly calling today’s turbulent business world a “VUCA” environment—one that is volatile, uncertain, complex, and ambiguous. To succeed in this environment, organizations must be more adaptive and agile than ever before—they must be resilient. Organizations that lack resilience, that ability to bounce 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. 5% 10% 15% 20% 25% 30% How Engagement Affects Financial Results Same year operating margin: Study of 50 global companies Low traditional engagement companies High traditional engagement companies High sustainable engagement companies Source: Towers Watson normative database 2012. 9.9 14.3 27.4
  • 24. 24 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com Resilience Requires a Culture Change To create a culture that fosters resilience, HR and talent management professionals must do more than offer stress management and yoga classes, although these can and do have a beneficial role. It requires the development of an organizational culture that encourages trust, accountability, and flexibility. Resilient organizational cultures give all employees— from the CEO down—permission to take care of their physical, mental, emotional, and spiritual needs with the understanding that when these needs are tended to, resilience occurs, and the entire organization benefits through increased productivity, job performance, retention, engagement, and physical well-being. The Towers Watson study recommends that employers strive for “sustainable engagement” by creating policies and practices that make it possible for employees to better manage their stress, to live more balanced lives, and to have more autonomy over when and where they get their work done. Tony Schwartz, CEO of The Energy Project, agrees with the Towers Watson recommendations. “The key factor is a work environment that more fully energizes employees by promoting their physical, emotional, and social well-being. I’d add to that mental and spiritual well-being—or more specifically, the added energy derived from the capacity for absorbed focus and a strong sense of purpose.” Creating policies and practices that support employees’ ability to manage their energy across all four dimensions makes it possible for employees to better manage their stress, to live more balanced lives, and to have more autonomy over when and where they get their work done. “For organizations, the challenge is to shift from their traditional focus on getting more out of people, to investing in meeting people’s core needs so they’re freed, fueled, and inspired to bring more of themselves to work, more sustainably,” says Schwartz. According to Spangler et al, research has found that some people are more resilient than others. These people can bounce back from setbacks faster than others, are more adaptive, and demonstrate a secure emotional attachment to others. They have a good sense of humor, are more action-oriented, have a sense of personal competence, take time for personal replenishment, and can express needs and engage the support of others. Perhaps most importantly, the authors conclude, research finds that individual resilience is modifiable; it can be learned, giving HR and talent management professionals an opportunity to teach resilience at the individual and organizational levels. PHYSICAL MENTAL EMOTIONAL SPIRITUAL
  • 25. R E S I L I E N C E I N T H E W O R K P L A C E 25 1. Obtain senior leadership support. Resilient cultures begin with leaders who understand and support building resilience at the individual and organizational level. To obtain senior leader buy-in, HR and talent management professionals can share research such as the Towers Watson Global Workforce Study and this white paper with top management. They can explain how resilient employees are happier, more productive, and more agile than their less resilient counterparts. Senior leadership support for an organization-wide resilience initiative may be easier to obtain if it is exposed to leadership development opportunities (such The Energy Project aims to energize people and transform companies by offering a detailed blueprint for fueling a fully engaged workforce. Drawing on the multidisciplinary science of high performance, The Energy Project has developed a set of simple principles and highly actionable practices for more effectively managing energy to drive higher levels of engagement, productivity, and innovation in people, leaders, and organizations. HR and talent management professionals can find out if they are currently managing their four sources of energy: physical, emotional, mental, and spiritual by taking The Energy Project’s 20-question assessment, The Energy Audit. Results will be emailed immediately and will include behaviors that should be addressed to improve performance, effectiveness, and satisfaction, on the job and off. The audit link and results can be shared with team members for comparison and team-building purposes. © The Energy Project 2013. About The Energy Project Steps HR Can Take to Introduce Resilience into Their Organizations’ Cultures as stress management classes) that specifically target resilience-building. Developing resilient leaders will help them better grasp and support the benefits of building resilience at all organizational levels. 2. Build safe and secure work communities. The workplace is often strained, stressful, and overwhelming. Employees have been taught to check their feelings at the door to focus on their work—to “compartmentalize” their personal and professional
  • 26. 26 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com 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 emotionally—to 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. 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 Project’s 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. Example: PricewaterhouseCoopers 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 meets—whether 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? • What was the most important thing you learned last week? • What are your goals for this week? • What are you most grateful for?
  • 27. R E S I L I E N C E I N T H E W O R K P L A C E 27 3. Encourage all employees—from the CEO down—to embrace these tips to increase energy and productivity. • Encourage 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. • Encourage 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 one’s mind, the less likely that they will be remembered. Encourage employees to download everything—the “to do’s,” 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. • Ask 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. • Encourage 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 brain’s capacity for absorbed attention. • Encourage employees to take a few minutes each day—either just before they leave work or just before they go to sleep—to identify and write down the two or three most important things they want to accomplish tomorrow, and when they intend to work on them. • Encourage 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 can’t change what they don’t notice (Schwartz, various).
  • 28. 28 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com Genentech has a rich history of medical breakthroughs and cutting- edge science. As the world’s first biotechnology company, today Genentech develops and manufactures medicines to treat patients with serious or life- threatening 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 team’s 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 people’s 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 people’s energy. Examples include: • Shorter 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 meetings”—short, on-the-go meetings comprised of small groups of people tackling creative challenges • An 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 off- site and leadership meetings to help their employees manage increased demands, improve productivity and satisfaction, and to increase their engagement scores. © The Energy Project 2013. Example: Genentech
  • 29. R E S I L I E N C E I N T H E W O R K P L A C E 29 Sony Europe was experiencing challenging times and was looking to drive significantly higher levels of energy and performance, and to reduce sick time and employee turnover. In collaboration with senior executives in London, The Energy Project created a four-day retreat that used a modified version of the company’s curriculum for the top leaders in Sony Europe. The program was delivered in two-day segments, with a month between meetings. The response from leaders was so enthusiastic that The Energy Project next designed a three-day version of the program for their direct reports. Today, more than 3,000 Sony Europe employees have attended one of these three-day versions. Sony Europe has instituted a number of organizational changes designed to support a new way of working. These include restructuring meetings to include regular breaks; banning the use of email during meetings to increase focus and productivity; providing healthy snacks during the day; building an on-site gym and renewal rooms; and creating a web portal that provides detailed information about different aspects of the curriculum. In the division that most openly embraced the initiative, sick time decreased by 36 percent; staff turnover decreased 60 percent; 75 percent of division employees said the program had a positive impact on their business relationships; and 90 percent say their energy and performance have increased significantly. © The Energy Project 2013. Example: Sony Europe 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 organi- zational 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.
  • 30. 30 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com 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 resilience—taking action. GCC. Retrieved from https://www.gettheworldmoving. com/blog/building-employee-resilience- and-responsiveness-to-change. George, B. (2013 March 22). Resilience through mindful leadership. Huffington Post. Retrieved from http://www. huffingtonpost.com/bill-george/resilience- through-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-resilience- matters-in-the-workplace-and-what- employers-can-do-to-increase-it/. Lee, D. (2008). Why you will need a resilient workforce in today’s economy. HumanNature@Work. Retrieved from http://www.humannatureatwork.com/ articles/workplace_stress/resilientworkforce. htm. Schwartz, T. (2010 September 7). Six ways to supercharge your productivity. The Energy Project. Retrieved from http:// www.theenergyproject.com/blog/six-ways- supercharge-your-productivity. 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-through- your-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-being- excellent-anything. 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-not- computer-try-you-may. Schwartz, T. (2012 May 29). Take back your life in seven simple steps. The Energy Project. Retrieved from http://www. theenergyproject.com/blog/take-back-your- life-7-simple-steps. Schwartz, T. (2012 November 1). Resilience in the eye of the storm. The Energy Project. Retrieved from http://www. theenergyproject.com/blog/resilience-eye- storm. 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-research- how-employee-engagement-hits-bottom- line. 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-you- could-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-Research- Results/2012/07/2012-Towers-Watson- Global-Workforce-Study. 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.
  • 31. 31 To learn more, visit www.uncexec.com. Businesses today face many distinctive challenges. We listen to your needs and develop a thorough understanding of your business and industry. Then we create unique executive learning experiences designed to develop your executives as they address and overcome these challenges. Multi-tasking at its best. UNC EXECUTIVE DEVELOPMENT The Power of Experience. C U S T O M E X P E R I E N C E S We help you develop executive talent while tackling real-world challenges. (Now that’s multi-tasking.) U N C E X E C U T I V E D E V E L O P M E N T We help you develop executive talent while tackling real-world challenges. (Now that’s multi-tasking.) We help you develop executive talent while tackling real-world challenges. (Now that’s multi-tasking.)
  • 32. 32 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com The Big Data Talent Gap Introduction Big data—the 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 today’s competitive marketplace. If HR and talent man- agement professionals haven’t 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: • Analyzes the big data revolution and the potential it offers organizations. • Explores the critical talent needs and emerging talent gaps related to big data. • Offers examples of organizations that are meeting this challenge head on. • Recommends four steps HR and talent management professionals can take to bridge the talent gap. The Big Data Revolution The International Data Corporation (IDC) describes big data as “the new generation of technologies and architectures designed to extract value economically from very large volumes of a wide variety of data by enabling high-velocity capture, discovery and/or analysis.” (Villars, Eastwood Olofson, 2011.) In other words, as authors Viktor Mayer-Schönberger and Kenneth Cukier write in their book, “Big Data: A Revolution that Will Transform How We Live, Work, and Think” (2013), big data “refers to the things one can do at a large scale that cannot be done at a smaller one, to extract new insights or create new forms of value in ways that change markets, organizations, the relationships between citizens and governments, and more.” The potential applications of big data analytics are vast. Internet giant Google, for example, uses big data analytics to identify flu outbreaks in the United States in real time—a feat that takes the Centers for Disease Control and Prevention (CDC) about two weeks to complete because it relies on slower reporting mechanisms. Google can do this because it receives more than three billion search queries on a daily basis. By using big data analytics, Google was able to identify 45 search terms that when used in a mathematical model, showed a strong correlation between Stan Ahalt Director The Renaissance Computing Institute (RENCI) Kip Kelly Director UNC Executive Development
  • 33. T H E B I G D A T A T A L E N T G A P 33 their predictions and the CDC’s flu outbreak statistics (Schönberger 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 child’s 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 operations—and 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-Bay’s 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
  • 34. 34 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com The Trends Fueling the Revolution Several trends have converged to fuel the big data revolution. First, technology costs continue to plummet. It is cheaper than ever to purchase memory and storage, and good quality, open-source software is competing with commercial software, putting pressure on commercial software developers to keep their prices down (CIO editors, 2012). Second, technology has evolved to make business analytics more accessible and faster than ever before. Third, businesses are acquiring new data at an astonishing rate and from more varied sources, such as operational data, customer service data, sales transaction data, and machine or device data (Manyika et al., 2011). The amount of new data being created is mindboggling. The IDC forecasts that there will be 4 trillion gigabytes of new data created in 2013, nearly 50 percent more than in 2012 (Press, 2012). Google alone processes more than 24 petabytes of data each day, a thousand times more than all of the printed materials currently housed in the U.S. Library of Congress (Mayer-Schönberger Cukier, 2013). Mayer-Schönberger and Cukier also report that Facebook has more than 10 million photos uploaded every hour, and that the number of messages on Twitter grows about 200 percent each year. That’s a lot of data. Mayer-Schönberger and Cukier note that while technology has played a large part in creating the big data revolution, something else also occurred to push it along. “There was a shift in mindset about how data could be used,” they write. “Data was no longer regarded as static or stale….Rather, data became a raw material of business, a vital economic input, used to create a new form of economic value.” What Is Big Data? ”Big data are high volume, high velocity, and/or high variety information assets that require new forms of processing to enable enhanced decision making, insight discovery and process optimization.” Source: Beyer Laney, 2012. The Three Vs of Big Data Data challenges can be “big” in terms of three characteristics, commonly known as the “Three V’s”: Volume – Challenges that arise from the vast amount of data that must be processed. Velocity – Challenges that arise from the need to process data within a certain timeframe. Variety – Challenges that arise from the many different types of data needed to understand a situation. Source: Ahalt, 2012. has been in a role for three years, hasn’t been promoted, and hasn’t changed roles, there’s a far higher probability of attrition than someone who doesn’t 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 Yahoo’s computer logs for the company’s virtual private network (the network tele-commuting employees access when working remotely) and determined that remote employees weren’t logging in to the VPN often enough to justify the policy (Klobucher, 2013).
  • 35. T H E B I G D A T A T A L E N T G A P 35 Seven Insights into Big Data Research conducted by MGI and McKinsey’s Business Technology Office examined the state of big data and found the following seven insights: 1. Data have swept into every industry and business function and are now an important factor of production, labor, and capital. 2. There are five ways big data can create value: a. Big data can unlock significant value by making information transparent and usable at much greater frequency. b. As organizations create and store more transactional data in digital form, they can collect more accurate and detailed performance information on everything. c. Big data allows ever-narrower segmentation of customers and can result in much more precisely tailored products or services. d. Sophisticated analytics can substantially improve decision-making. e. Big data can be used to improve the development of the next generation of products and services. 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.
  • 36. 36 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2013 To subscribe, visit www.uncexec.com The Big Data Talent Shortage The demand for big data talent is growing rapidly. A 2012 survey by InformationWeek found that 40 percent of respondents said they planned to increase their staff in big data and analytics in the upcoming year and estimated that big data staffing would increase by 11 percent over the next two years (Henschen, 2012). The McKinsey study supports these findings. The authors predict that there will be a severe shortage of those who can analyze and interpret big data, predicting that by 2018, the United States could face a shortage of up to 190,000 workers with deep analytical skills and 1.5 million managers and analysts with the ability to use the big data analytics to make effective decisions. (Manyika et al, 2011.) This includes the ability to integrate findings from big data with knowledge derived from other techniques which offer different strengths and biases, such as focus groups and targeted surveys. The increasing demand for big data analysts who can crunch and communicate the numbers and the lack of managers and business leaders who can interpret the data means there is a growing talent shortage in the field. A survey conducted by The Big Data London group (in Raywood, 2012) found that 78 percent of respondents said there was a big data talent shortage, and 70 percent believed there was a knowledge gap between big data workers and those commissioning the projects (e.g., managers and CIOs). Another survey by NewVantage Partners (2012) found that 60 percent of respondents reported finding it very difficult to find and hire big data professionals, and 50 percent of respondents said it was very difficult to find and hire business leaders and managers who could identify and optimize business applications in big data. This impending talent shortage will create a significant challenge for HR and talent management professionals responsible for recruiting, developing, and retaining a critical skill set that will soon be in high-demand. To help their organizations realize the full potential of big data, HR and talent management professionals must 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. Big Data Skills According to the editors of CIO, big data scientists and analysts need strong math skills and proficiency in working with massive databases and with emerging database technology. Plus, they must have a deep knowledge of their businesses, understanding the business processes, customers, and products. The most difficult big data skills to find, they contend, include: • Advanced analytics and predictive analysis skills • Complex event processing skills • Rule management skills • Business intelligence tools • Data integration skills (CIO editors, 2012.) Big data analysts or scientists must possess skills similar to their IT predecessors—they must have a solid computer science background that includes knowledge of applications, modeling, statistics, analytics, and math— but they also need business savvy and the ability to communicate their findings to business and IT leaders in meaningful ways, skills that are not typically required on IT job descriptions. “Good data scientists,” writes IBM, “will not just address business problems, they will pick the right problems that have the most value to the organization.” (IBM staff, n.d.). As Rob Sentz, vice president of marketing for Economic Modeling Specialists International, notes in an interview for Career Builder, big data analysts “need to understand why they are using data. What is the end goal? Data is… like an assembly (line) of facts, which aren’t necessarily the same thing as truth. If facts are poorly interpreted, it could lead to the wrong conclusions.” (Lorenz, 2012). Hilary Mason, chief scientist for bitly, a URL shortening service, offered her opinion in The Wall Street Journal. Data scientists, she says, “must be able to take data sets and model it mathematically and understand the math
  • 37. T H E B I G D A T A T A L E N T G A P 37 required to build those models. And they must be able to find insights and tell stories from that data. That means asking the right questions—and 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 organization’s 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 won’t 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. Recruiting and Developing Big Data Talent Unfortunately, you won’t find big data talent coming out of many colleges and universities because big data majors are few and far between. The rapid growth of big data has outpaced colleges’ and universities’ ability to develop and implement new curriculums. A few universities are ahead of the curve, though, including North Carolina State University, which has a one-year Master of Science in Analytics (MSA) program (supported by SAS, a business analytics software and services provider headquartered in Cary, North Carolina), University of Ottawa, Northwestern University, DePaul University, University of Connecticut, and Louisiana State University. Oklahoma State, Texas AM, Texas Tech, California State University at Long Beach, and the University of Alabama also have strong analytics programs (Henschen, 2012). Data analytics courses are also available through Carnegie Mellon and New York University (Bradshaw, 2013). IBM is following SAS’ footsteps in helping move formal big data analytics education forward. In late 2012, IBM announced that it would partner with Ohio State University to develop a new data analytics center in Columbus, Ohio. The center will offer research, client services, and skills training (Press, 2012). IBM plans to hire 500 big data consultants and researchers in the next three years to staff the center and to work with the university to develop a curriculum in business analytics and mathematics (SmartBrief staff, n.d.). IBM and SAS are both involved in another effort designed to unite the private and educational sectors to meet big data analytics educational needs. IBM, SAS, GE, Cisco, and NetApp have recently joined with a number of leading research universities to form the National