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How Gamification Can Alter Our Behavior

During this unique period of technology-driven transformation, the education sector has so far been slow to embrace the power of digital tools that can be used to accelerate learning. Spending time, energy and money protecting and defending conventional teaching methods only postpones the inevitable and keeps the transformative power of digital disruption, when used wisely, from taking training and education to a new level of success.  

The problem is that whether it’s a child in a classroom or an adult in a corporate training environment, the young and old have one thing in common. Our attention span is now officially lower than a goldfish now that external stimulation from digital, social and mobile access has reshaped our world.

Recent studies have shown that the average smartphone user checks their phone over 100 times a day. Checking any one of our four to five screens for emails, messages and notifications every few minutes is finally starting to take its toll on our ability to focus on a task at hand. This is forcing a dramatic rethink of how we can help people of all ages learn, comprehend and retain the knowledge they need to take their lives and careers to the next level. In a world littered with distractions, it seems that providing a dynamic, immersive, engaging and social experience is the key to accelerating learning.

One powerful way to accelerate learning for both business and education is to add gaming elements (gamification) to teaching and learning. Why gaming? When you play a game, you are not alone; there is a social element combined with a competitive element that forces you to both engage and concentrate, and that is a powerful combination if you want a student to learn something. It is also a way to make education and training fun as well as creating a personalized experience.

In the past I have written many articles about implementing gamification elements into learning, especially for younger students who grew up playing video games. In this article, I want to take a look at how gaming can be applied in a simple way to both change behavior and achieve goals—in this case, the success organizations are getting from the use of a simple wearable, the Fitbit activity tracker.

On its own, wearing a wristband that counts your daily steps is relatively simplistic, and some would even say uninspiring. But, when it comes to technology, it’s not the tool, it’s how we use it. In this case, by setting up internal contests within organizations that are not only competitive but also have prizes, in some cases as simple as virtual badges for walking a certain amount of miles a week, seems to create positive and healthy behavior changes. One large organization is currently having a competition for its employees to climb Mt. Everest in the steps they take and track their progress with their company-provided Fitbit. There is a virtual map that shows where each employee is along the journey. A major health benefit is that employees are losing weight, lowering their cholesterol levels, and some are getting off their medications to lower their blood sugar levels.  

I have also run across a few organizations that have taken this a step further by allowing employees to add friends to a leaderboard, and once again it’s all about snatching glory by rising to the top on a cold dark Wednesday evening that is helping both Fitbit and its users lose weight and achieve their performance targets.

Most of us are naturally competitive and can’t resist comparing ourselves to others. When a company hosts a walking competition and measures their employees’ performance and progress with a wearable activity tracker, it’s usually the “who will finish at the top of the leaderboard” aspect that typically captures the imagination of everyone involved.

The success of Fitbit alone is a testament to how this simple form of gamification has become very big business. Being assigned goals and then being rewarded for achieving them with a virtual badge or small prize illustrates how even this simplified principle can produce fantastic results in changing behavior. There is even an argument based on some early research that indicates momentary gratification from screen-based media can increase our visual-spatial intelligence.

Over the years we have been told that television and even calculators would make us stupid, so we shouldn’t be too surprised to see many pointing the finger of blame at technology again. It’s true that for many low-level jobs, employees no longer need to know how to add or subtract, much less multiply and divide, not to mention reading a map. Our smartphone can deliver answers almost before we even think about the question. In reality, technology is not stopping us from thinking, but it is changing the way in which we look for, process and retain information.

We might not want to admit it, but thriving on instant gratification and frequent rewards has almost become a way of life. As we drift from screen to screen on up to five devices, we shouldn’t be too surprised to learn how we increasingly need to visualize content to digest fully or comprehend subject matter.

I often hear people even likening their work experiences to that of a video game. Many find parallels with gaming characters by learning and mastering skills so they can “level up” in life just as they would in a video game. If these unconventional methods can engage audiences but also teach persistence and resilience, is that such a bad thing?

In this fast-paced digital world, classrooms often run the risk of feeling uninspired, dull and dare I say boring to students of any age. Engaging with users to provide a fun, personalized learning experience that is also interactive, game-like and competitive is the secret recipe to capturing our attention.

Gamification is often misunderstood or seen as either too complex to implement or just another gimmick. But these examples of using a simple form of gamification to accomplish a goal illustrates that it is possible to start small and learn to walk before you run. The next time you’re in a meeting, take a quick look around the room and notice how many already have wearable tech attached to their wrists as they discuss achieving fitness goals and even winning company competitions.

It is estimated that 13 million wearable activity tracking devices will be integrated into employee wellness programs by the end of 2018, and most will involve a competition to get increased engagement. Has your organization created a competition to achieve a group or individual goal by using a wearable like a Fitbit or Apple Watch yet?

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Best Practices Growth Industries Management Skills

Cognitive Excellence Is The New Benchmark of Business Performance

By Daniel Burrus and Neil Smith

(In this blog series on how elevating cognitive performance is a game changer for organizations, I’ve invited Neil Smith, CTO at Think Outcomes, to join me in writing on this important topic due to his expertise and the cognitive performance software his firm has created.)

Today, business performance is measured by transactional throughput and is commonly captured in a set of transactional metrics such as revenue, investor ROI, manufacturing capacity, service level performance, available to promise, etc. Commonly, the operations of a business are defined as the transactional activity. Yet, the definition of a business operation encompasses both its transactional operations and its cognitive operations. To break through current ceilings of business performance, the processes in both the transactional operations and the cognitive operations must execute with excellence.

Transactional Operations of an Organization

Commerce activities represent the transactional operations. Professionals are involved in planning and management of tasks to execute customer, supplier and employee transactions. Task-oriented processes occur before, during and after the customer journey. ERP, SCM and CRM software helps professionals responsible for transaction management execute transactional operating processes.

Examples of Transactional Responsibilities

  • Manage sales transactions
  • Manage marketing campaigns
  • Procure products and services
  • Fulfill orders
  • Capture accounting activity
  • Schedule materials
  • Manage inventory turns
  • Plan for distribution
  • Forecast financial performance
  • Service customers
  • Manage human resources
  • Compensate employees

Executives have invested significantly to evolve the processes on the transactional side of their businesses.

Cognitive Operations of an Organization

The cognitive operations comprise teams that think and communicate perspectives for a living. These teams are internal and external to the organization:

  • Senior executives, senior managers and other professionals
  • Management consultants, board members, lenders and insurance providers in the services ecosystem
  • Investors, analysts, supply chain partners and business partners, who are part of the extended enterprise
  • Regulators and educational institutions, who are standard setters

In a cognitive operations, professionals think critically, collaborate, communicate with their stakeholders, make decisions, advise other professionals and monitor uncertainties. As professionals perform mindful work, they often experience gaps in their knowledge that lead to uncertainties. Uncertainties stall decisions. Cognitive processes represent the work that takes place in their minds.

Cognitive operations exist across industries, such as oil and gas, life sciences, private equity, management consulting, environmental management, asset management, space, insurance, banking, aerospace, defense, healthcare, government and education, etc. Below are some examples where critical thinking, stakeholder communications and performance advisory occur in life sciences for their cognitive work:

Examples of Cognitive Responsibilities in Pharma

Chief Medical Officer

  • Develop corporate strategy
  • Brainstorm with clinical key opinion leaders around clinical challenges
  • Create quality control measures for clinical trials
  • Ensure performance among clinical and regulatory teams
  • Collaborate with health authorities
  • Communicate with regulatory authorities
  • Perform due diligence research on business development opportunities
  • Monitor investment in clinical programs

Chief of Staff

  • Improve processes to enhance operational efficiency and effectiveness
  • Identify Hard Trends to strengthen the accuracy of forecasts
  • Prepare CEO for stakeholder meetings
  • Ensure innovative qualitative and quantitative measurements

VP, Drug Process Development

  • Apply anticipatory thinking and new tools to transform processes
  • Demonstrate process reliability
  • Verify process effectiveness
  • Build process control strategy

VP, Drug Manufacturing Process

  • Ensure a stable design environment
  • Assess drug degradation
  • Link material attributes and process parameters to CQAs
  • Demonstrate linkages between process and product reliability
  • Track outcomes for each changing state
  • Establish feedforward and feedback controls
  • Anticipate and monitor failure conditions

VP, Corporate Development

  • Craft risk-managed pricing
  • Evaluate portfolio implications
  • Analyze integrated due diligence

VP, Supply Chain

  • Use new tools to transform supply chain processes
  • Communicate supply chain risks and opportunities
  • Simulate implications of a supplier failure

Professionals in the cognitive operations either accelerate or constrain their cognitive performance based on their mind-set and the technologies they use for their mind’s work.

Professionals in the transactional operations benefit from software architectures for their responsibilities. Yet professionals in the cognitive operations don’t have the same capabilities to perform their jobs. Rather, they have their job descriptions, their experiences and their minds; they utilize multipurpose software in the form of spreadsheets, presentation software and word processing documents. Leaders and managers do not have a software architecture designed to elevate their cognitive responsibilities. Nor do they have a way to think through their uncertainties in a Socratic manner. These issues are critical for a cognitive operation to advance and gain a competitive advantage.

In working across organizations for decades, we’ve seen a theme in which leaders and managers who seldom take enough time to think through uncertainties the first time around is high. Yet there seems to be enough time to revisit the topics a second time as problems arise. Beyond time pressures, confusion persists around how to think through uncertainties. The lack of clarity regarding how to manage uncertainty has led leaders and managers to spend more time managing the crisis and less time managing new opportunities. By learning to identify the Hard Trend certainties that will happen, anticipatory leaders learn to innovate with low risk and have the confidence certainty provides to make bold moves.

What is Cognitive Excellence?

Anticipatory leaders and managers exhibit cognitive excellence through a constant flow of insights and foresights that resolve uncertainties. These professionals become a critical resource to highly effective cognitive operations. They are go-to professionals, whether they exist in an organization, in the services ecosystem or as part of the extended enterprise. Organizations need to instill these anticipatory capabilities in their professionals to achieve greater business performance.

“Past performance is not a predictor of future results.”

This performance caveat is attached to any investment in the stock market, and it applies in business too. Future performance is dependent on anticipatory skills and cognitive excellence. Professionals face change all the time. Some say change is the only constant; in fact, it’s accelerating at an exponential rate, which creates additional uncertainties as well as new certainties! It’s challenging to achieve cognitive excellence in the minds of professionals consistently today without anticipatory skills and software that:

  • Define the cognitive gaps
  • Illustrate aberrations in future performance through measurable evidence
  • Trigger questions of uncertainty in your mind
  • Move you from uncertainty to greater certainty

That’s why cognitive excellence doesn’t just come from experience. It comes from advancing the capabilities of professionals with:

  • Anticipatory leadership skills
  • A responsibility architecture for their cognitive work
  • An agile and anticipatory mental framework to help them address change across situations
  • Software spaces to perform their mind’s work

The ability to nimbly address questions of uncertainty through a repeatable Socratic process greatly enhances leaders’ and managers’ capabilities to perform at a very high level as key contributors to their organizations and their clients’ organizations. This is how professionals can transform the performance of their businesses.

As professional teams elevate their cognitive capabilities toward excellence, their organizations transform into highly performant cognitive factories. Professional teams leverage each other’s thinking through a uniform process to visualize performance patterns for their minds, where they gain insights and foresights. Anticipatory professionals not only pre-experience their own uncertainties, they also help their stakeholders pre-solve their questions of uncertainty, too.

The cognitive era is shaping the coexistence and interdependence between humans and machines. This new era demands leaders to advance the capabilities of their cognitive processes. As machines learn, humans must focus their time and attention in areas where machines are far less effective. Professionals need to redefine and reinvent their business models, markets, products, services and processes to provide the next level of value for their clients. Anticipatory leaders and managers need to focus their time on the layers of both uncertainty and certainty where future state thinking is needed and reassign current state thinking to others. That’s how they’ll continue to differentiate their personal and business brands. Professionals need to accelerate their learning and get comfortable with uncertainty through the use of higher certainty frameworks. It’s imperative for organizations to get on board with elevating their cognitive performance. Waiting will cost organizations the value of cognitive insights and foresights, while your competitors grow their knowledge.

Machine learning is causing a shift in the workforce — an emerging crowd of retrained professionals whose jobs are increasingly occupied by machines. This requires cognitive professionals in their current roles to manage the knowledge gap between themselves and their new human rivals. They accomplish this by advancing their cognitive skill sets, learning to become anticipatory leaders and through the use of technologies built the way they think about uncertainties.

Learn how to elevate your planning, accelerate innovation and transform results with The Anticipatory Learning System and how to maximize the cognitive performance of your team with Cognitive Performance Software.

Categories
Best Practices Growth Management Skills Technology

Turn Cognitive Challenges into Opportunities With Technology Built the Way You Think

By Daniel Burrus and Neil Smith

(In this blog series on how elevating cognitive performance is a game changer for organizations, I’ve invited Neil Smith, CTO at Think Outcomes, to join me in writing on this important topic due to his expertise and the cognitive performance software his firm has created.)

Technology can function as a key enabler for higher cognitive performance. Technology is as important for cognitive roles as it is for transactional ones, since cognitive work in organizations drives transactional tasks. With performance gains realized through transaction management software, the next game changer is to evolve the cognitive infrastructure in the operating model.

While machines learn, disrupt and occupy the defined and known cognitive tasks of humans across industries, technologies to advance cognitive performance in the mind and with teams have remained relatively stagnant to move uncertainties into higher certainty frameworks.

Professionals utilize many technologies in their cognitive work everyday, but were not built to advance their cognitive performance. These every day technologies include:

  • spreadsheets
  • presentation software
  • documents

The Tools Leaders use for Critical Thinking in your Organization Today

All too often, critical thinking runs through spreadsheets. You may be surprised to discover the collage of spreadsheets your enterprise utilizes in its operating model — hundreds and thousands of spreadsheets (depending on the size of your business).

With spreadsheets, it’s challenging to arrive at informed decisions with 85%+ effectiveness. It’s also challenging to manage future uncertainties with 50%+ effectiveness.

How Leaders Communicate with Stakeholders in your Organization Today

Beyond their voices, leaders and managers communicate with stakeholders primarily through multipurpose presentation software. A tremendous amount of time, money and effort is expended to build presentations as snapshots in time for stakeholders. Presentations to equity investors, lenders, internal management, operations teams and supply chain partners, among many others, do not provide a framework for dynamic communications that shape the thinking in the minds of your stakeholders. Their questions are all too often unresolved during meetings, which delay decisions. When additional meetings are scheduled, you resolve the initial questions from stakeholders without a clear understanding of the impact on outcomes.

Presentation software makes it challenging to communicate perspective and address stakeholder concerns in real time with 90% effectiveness.

How Stakeholder Expectations are Conveyed in your Organization Today

Professionals primarily express their expectations verbally. They also write them in reference documents that are accessed infrequently, such as job descriptions, performance reviews, supplier agreements and annual reports, to name a few.

As documents are not actionable frameworks, it’s challenging to achieve expectations in dependent thinking with 85%+ effectiveness.

Imagine if the Stock Market Operated the Way Business Operates Today

The stock graph transforms how you synthesize information in your mind to arrive at informed decisions. Let’s go back to the time when you couldn’t visualize stock graphs for your decisions. Before stock graphs existed, imagine you met with your wealth advisor who expected you to make decisions to invest your monies and said:

I’m glad you are interested in investing in the market. We have over 10,000 companies in our exchange. To help you make an informed decision, I’ll introduce you to the analysts; there are hundreds of them. Each of them will show you their spreadsheets. Then each will walk you through your options via presentations, while attempting to answer all your questions. I thought you’d want to know this will take time because the analysts structure their spreadsheets their own way; there isn’t any consistency between them. Nor is there consistency among their presentations. After you synthesize all this information in your mind, you should be in a position to arrive at an informed decision about how to best invest your monies.

If decision processes for investors worked that way, individuals could not make high-fidelity decisions effectively. They’d be attending a lot of meetings to gain insight. As a result, many stocks wouldn’t have performed as well and many portfolios wouldn’t have grown. Nor would have the market evolved as it has.

Yet this is Exactly How Decision Processes in Business Work Today

As executives continue to invest in their transactional operations over decades, it’s time they prioritize and invest in their cognitive operations. The technology in the transactional operations is far ahead of the technology in the cognitive operations. Yet the cognitive operations drive activity in the transactional operations.

Is ‘Being Human’ Enough Today in the Cognitive Era?

Historic methods to advance critical thinking and stakeholder communications using human mental models, past experiences, personal networks and fundamental analytics are no longer enough in today’s business world. As machines increasingly coexist with humans, anticipatory tools and advanced performance analytics are needed to survive, differentiate and grow businesses and their professionals.

Learn how to elevate your planning, accelerate innovation and transform results with The Anticipatory Leader System and how to maximize the cognitive performance of your team with Cognitive Performance Software.

Categories
Best Practices Growth Management Skills Technology

Elevate Cognitive Performance

By Daniel Burrus and Neil Smith

(In this blog series on how elevating cognitive performance is a game changer for organizations, I’ve invited Neil Smith, CTO at Think Outcomes, to join me in writing on this important topic due to his expertise and the cognitive performance software his firm has created.)

Improving cognitive performance is a strategic imperative for anticipatory leaders. With the availability of data, cognitive technology and performance analytics, stakeholders expect stronger performance, higher transparency, greater controls and clearer communications.

Performance Analytics for Cognitive Work

The transactional operations of an organization have demonstrated how people, process, technology, information and analytics can transform their processes and improve performance before, during and after a customer transaction. A key area that is ripe for improvement is the cognitive operations of an organization where the same principles involving the mind, cognitive processes, cognitive performance technology and performance analytics can transform critical thinking and stakeholder communications.

Cognitive Performance Rings

Business professionals are similar to athletes. Both groups seek to achieve greatness from their actions and get to the top of their game. LeBron James in the NBA, Serena Williams in tennis and Usain Bolt in running at the Olympic Games are all recognized for their individual achievements and team play. They didn’t just arrive. They work every day to close their own performance rings on their journey to greater precision in their craft. The same is possible for professionals. They need to not only outthink their competitors, they need to outperform themselves because they know their last performance is their last impression. Their performance is their memorable stamp on their organization and their industry.

Cognitive performance rings illustrate current and expected effectiveness in cognitive performance.

The activities performed in the minds of critical thinkers, decision makers and stakeholders are represented through cognitive performance rings in the eight performance indicators of cognitive effectiveness below.

From decades of experiences, we recognized the effectiveness of cognitive work across a wide variety of professionals in business, which are shown in the cognitive performance rings below.  Each performance ring illustrates indicators for the common ranges of current effectiveness along with their expected effectiveness.

When reviewing each performance ring, think about where your teams stand with respect to their cognitive effectiveness. Then prioritize which performance rings are important to you and your organization at this time to help it learn, grow and compete more effectively.

Eight Performance Indicators of Cognitive Effectiveness

How well is your team doing?

Performance indicator 1 — Critical Thinking

How well does your team think critically about risks and benefits?
‘Most people believe their minds lead them down a logical path. Yet, we don’t have a way to challenge the way we think in the moment.

Performance indicator 2 — Stakeholder Communications

How well does your team advance decisions with stakeholders?
‘Our stakeholders increasingly need evidence in a structured way that supports their perspectives and their questions. We don’t have a structured operating process to bring stakeholders into the decision making process easily.’

Performance indicator 3 — Cognitive Collaboration

How well does your team achieve breakthroughs during collaboration?
‘In our meetings, we can’t visualize what’s in each other’s heads. Our current processes don’t provide us a way to arrive at insights and foresights with the amount of time we have together. Frankly, it’s a challenge during this time of expected innovation.’

Performance indicator 4 — Decision Execution

How well does your team execute decisions with foresight?
‘We over rely on our gut instincts. We learn from hindsight. It’s concerning to us because change is no longer constant. It’s accelerating. We need a way to become more anticipatory.’

Performance indicator 5 — Performance Conditions

How well does your team establish upper and lower thresholds for thinking and communications?
‘We don’t share thresholds enough. When we do, we share thresholds verbally and in documents. The only way we shape the cognitive behaviors across our teams is through our review processes by management. This approach affects our culture and we don’t know how to address it.’

Performance indicator 6 — Performance Compliance

How well does your team incorporate performance conditions during thinking and communications?
‘The goals and objectives of our stakeholders aren’t transparent for our team. When we do receive them, we incorporate conditions we remember. We need a systematized way to incorporate conditions into our cognitive work.’

Performance indicator 7 — Uncertainty Monitoring

How well does your team anticipate disruption?
‘We don’t anticipate disruption enough. We are susceptible to external forces as we don’t monitor indicators that can disrupt our business.’

Performance indicator 8 — Performance Advisory

How well does your team strengthen the performance of other teams?
‘We try to lead from experience. Yet, we can’t dedicate the amount of time necessary to accelerate the growth of each individual. We need to provide a way to help them self-learn and deepen their intelligence even more. That would help all of us.’

The performance yield of each ring begins with questions of uncertainty that span outcomes, impact, risk, opportunity, implications, consequences, causation or cause and effect. Performance yields arise from insights and strategic foresights in the minds of professionals. With dashboards presented the way their minds work, professionals lean in and think more deeply about situations. As they access correlated data at the speed of thought, they create performance analytics that challenge the way they think about their current situations. When they visualize indicators and patterns within dashboards about the current and target states of their subject profiles, they work in a software environment to engage their thinking, create their ah-ha moments and generate counterintuitive wisdom.

Tom Brady was selected 199th in the NFL draft by the New England Patriots and became the most decorated quarterback in history. All professionals have an opportunity for greatness. Beyond the physical game, it starts with their cognitive tools.

Learn how to elevate your planning, accelerate innovation and transform results with The Anticipatory Learning System and how to maximize the cognitive performance of your team with Cognitive Performance Software.

Digital transformation has divided us all into two camps: the disruptor and the disrupted. The Anticipatory Organization gives you the tools you need to see disruption before it happens, allowing you to turn change into advantage. Pick up a copy today at www.TheAOBook.com.

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Best Practices Growth Industries Management Skills Technology

Eliminate Cognitive Friction to Maximize Human Performance

By Daniel Burrus and Neil Smith

(In this blog series on how elevating cognitive performance is a game changer for organizations, I’ve invited Neil Smith, CTO at Think Outcomes, to join me in writing on this important topic due to his expertise and the cognitive performance software his firm has created.)

Improving cognitive performance is a strategic imperative for anticipatory leaders. Yet, cognitive performance slows down due to cognitive friction. Cognitive friction occurs when professionals can’t think through uncertainties clearly in their minds. These uncertainties include:

  1. Risks
  2. Opportunities
  3. Outcomes
  4. Consequences
  5. Implications
  6. Impact
  7. Causations
  8. Causes and effects

In an organization, cognitive friction occurs frequently across many professional roles, minds and perspectives. For the 15 areas in a cognitive operation below, cognitive friction not only spans many responsibilities, it also impacts relationships and shapes cultures.

15 Areas of a Cognitive Operation

Cognitive Friction Across Perspectives

Cognitive friction occurs when two or more professionals are challenged to get on the same page. They must resolve their perspectives — which can be very challenging. In business, professionals:

  • Perform critical thinking
  • Make decisions
  • Communicate with stakeholders
  • Collaborate with other professionals
  • React to uncertainties
  • Work with peers and stakeholders to address situational challenges
  • Advise other professionals about their cognitive work
  • Evaluate the thoroughness to think through situations in the minds of their thinkers
  • Review the risk-reward trade-offs among their team members

Cognitive Friction Within the Mind of a Professional

Cognitive friction exists within the minds of professionals and creates undue stress. The six reasons friction occurs is due to:

  1. The processing limitations in the mind
  2. Ineffective communications
  3. Unproductive collaborations
  4. Uncertainties in their minds
  5. Lack of cognitive insights and foresights
  6. Bias that leads to cognitive divisiveness


Processing Limitations in the Mind

When processing multiple data points in the mind, cognitive work can become a highly stressful activity. It’s amazing how many leaders are not equipped with cognitive tools to manage uncertainty across situations, close their knowledge gaps and achieve expected results. When a situation includes more than seven variables, it’s well-known that the human mind is not able to process this level of complexity. Think how we receive, process and remember phone numbers. Our minds are not wired to synthesize 10 or more digits at a time. In the U.S., people think about the 10 digits in a pattern of a 3-digit area code, a 3-digit prefix and 4-digits for the line number; our minds consume, process and recall smaller chunks of information.

Try this exercise in your mind to see how complexity increases quickly: spin all the digits of five phone numbers in your mind as if the numbers were on a slot machine. Can you keep track of the numbers? Most of us cannot; our minds get overwhelmed right away.

When multiple changing variables exist, that’s the type of stress professionals experience every day in their minds as they perform their risk-reward trade-offs. Without additional cognitive capabilities, leaders turn to their gut as a place to find answers; often, though, the gut isn’t a very good logic engine. Operating risk is introduced when critical thinkers and decision makers do not have access to complementary, cognitive tools to perform their cognitive activities at their best.

Effective Communications Accelerate Buy-in and Decisions

The challenges increase further for critical thinkers and decision makers when they communicate with their stakeholders, peers and dependents to gain agreement about multiple, interdependent variables. These heterogeneous thinkers add new perspectives to the decision process, which increases the complexity.

That’s when members of decision teams communicate from their emotional viewpoints. Decisions stall, lasting impressions impact culture and relationships, and people experience an impasse.

Productive Collaborations are Needed to Achieve Better Outcomes

Google Hangouts, Skype and Zoom represent a step forward in collaboration and reduce travel costs. Yet, as professionals move between face-to-face and online meetings, they still struggle to innovate with breakthrough thinking.

Often, we hear professionals say, “if I could see what’s in the minds of the people I’m working with, that would help me address the challenges I’m aware of, too.” Yet, given human limitations, most professionals can’t bridge that gap effectively. If meetings involved the ability to demonstrate thinking patterns, that would help professionals overcome this human hurdle.

As professionals join meetings, they commonly bring their mental models and biases from years of experience. Their mental models create barriers to synthesizing other people’s perspectives as well as new ways of thinking into their own thinking. Where they use their voices and presentation software to convey their thinking, most attendees try to follow the logic rather than elevate their own thinking. If they had a way to unify their thinking through the visualization of evidence that focused on addressing questions of uncertainty and their critical thoughts, they’d optimize their time, learn to pre-solve issues and focus on better outcomes together. That would advance productivity in thinking in a visual way.

When professionals conclude their meetings with follow-on questions, leaders wonder which questions weren’t brought up? Are their teams going down the wrong paths? How do these questions connect to the stakeholders’ objectives? Are they considering the Hard Trends based on future facts that are shaping the future? Professionals expend valuable time to get to clarity as they reflect on their learnings when they need insights and foresights more quickly. Anticipatory leaders seek to institute advanced collaboration processes that yield greater productivity among their teams. They see everyday innovation and breakthrough thinking as a competitive advantage today as well as tomorrow.

Uncertainties, Cognitive Insights and Foresights

As connected teams in today’s data-driven world, data scientists and stakeholders strive for better outcomes together. Where data scientists focus on big data and use machine learning to ask questions about data, stakeholders focus on decision information and ask questions to solve situational challenges. The minds of stakeholders are as effective as the:

  1. Quality of their questions to resolve their problems and uncertainties
  2. Cognitive insights and foresights that arise from their mental models

Bias and Cognitive Divisiveness

In the minds of professionals, cognitive friction results from their cognitive biases and the synthesis of disparate data. Cognitive divisiveness exists among professionals as data synthesis and bias differ across perspectives. Cognitive friction and divisiveness affect velocity and outcomes.

In their roles, professionals:

  • Are often unable to access data structured the way they think about risk-reward trade-offs
  • Don’t know what they don’t know during decision making
  • Are challenged many times to demonstrate their points of view
  • Are frequently challenged to see alternative points of view during communications
  • Struggle to shape the thinking of team members due to predefined mental models
  • Are challenged to arrive at strategic foresights and engineer outcomes

A Critical Thinking Advantage

To gain an advantage in today’s world, cognitive teams must pre-solve issues through a continuous flow of cognitive insights and foresights. To achieve their objectives, they must find new wisdom within the cognitive gaps in their minds — i.e., to get from “here” to “there.” “Here” is where they are today in context to their cognitive responsibilities. “There” is where they need to go. This cognitive gap represents their current state and target state of their subject profiles. Their stakeholders depend on actionable knowledge and wisdom from their team of thinkers to improve business results. This starts with the capabilities of their cognitive resources and tools.

Learn how to elevate your planning, accelerate innovation and transform results with The Anticipatory Learning System and how to maximize the cognitive performance of your team with Cognitive Performance Software.

Categories
Best Practices Growth Personal Development Technology

A Strategic Imperative for Anticipatory Leaders Is Cognitive Performance

By Daniel Burrus and Neil Smith

(In this blog series on how elevating cognitive performance is a game changer for organizations, I’ve invited Neil Smith, CTO at Think Outcomes, to join me in writing on this important topic due to his expertise and the cognitive performance software his firm has created.)

AI and cognitive computing have grabbed headlines. Yet, anticipatory leaders know that the elevation of cognitive performance among teams is key to maximize results. Leaders need to help their teams of professionals improve how they envision opportunities, manage downside risks and achieve greater results. Cognitive computing has to do more than deliver data-driven insights to their minds. It must help teams shape outcomes, act on implications and professionalize role-based, cerebral processes in the form of software processes. That’s where cognitive performance is front and center.

Cognitive performance involves how well professionals perform their cognitive work. Specifically, how they:

  • Establish vision
  • Identify problems
  • Ask questions of uncertainty
  • Arrive at critical thoughts
  • Analyze situations
  • Synthesize information
  • Reason
  • Judge
  • Solve problems
  • Communicate
  • Collaborate
  • Define follow-on actions

They perform these cerebral activities with their thoughts and their communications. These mini processes in their minds are nondeterministic and lead to decisions within organizations. As machine learning and deep learning move into organizations, professionals who want to increase their cognitive performance must step up their game at the same time. They must center their attention on addressing uncertainties and advance their abilities to identify and create greater certainty. In doing so, they must raise their levels of quality in decision-making processes and stakeholder communication processes that take place in their minds. Their stakeholders, customers, suppliers, employees and their industries depend on it. The status quo of gut-based decision making and misunderstandings among viewpoints leads to operational inefficiencies and monetary waste in downstream activities.

Change is accelerating in business, which creates more uncertainties that find their way into enterprises across all functional responsibilities — in strategies, integration, operations, supply chains, human resources, research, engineering, finance, process management, product management and consulting, to name a few. Today, cognitive performance is based on role-based experience, learning, frequency, recency and luck — all of which vary from role to role and person to person.

The cognitive activities in the minds of professionals are ripe for optimization. Optimization is possible by learning anticipatory skills and applying cognitive performance technologies.

The human mind is limited when it is engaged to:

  • Structure decision data
  • Process situational information
  • Store organized knowledge
  • Recall situations with specificity
  • Understand alternative viewpoints
  • Engineer outcomes with greater clarity

Although these are human limitations, the mind is extendable through the use of computing, which does a very good job of augmenting the mind for these activities. In today’s era of cognitive computing, the human mind can benefit from a digital extension to achieve the cognitive capabilities it cannot — and does not — realize on its own.

At work, professionals who think for a living formulate how to execute their work in their minds. They’ve built their cognitive expertise over time through on-the-job experiences and homegrown cerebral processes.

Business operations are both transactional and cognitive

Before transactional software systems codified the operating processes of transactional work into the business infrastructure – i.e., ERP, SCM and CRM processes – organizations created homegrown processes and systems to manage their transactional operations. ERP, SCM and CRM systems optimized task-oriented processes before, during and after a customer transaction within organizations, in supply chains and in demand chains. As a result, the transactional side of the operating model has become relatively frictionless.

Today’s friction exists within the minds of professionals on the cognitive side of the operating model. A key to future success is to eliminate this friction. That’s where anticipatory skills, combined with cognitive performance software, comes into play.

Learn how to elevate your planning, accelerate innovation and transform results with The Anticipatory Learning System and how to maximize the cognitive performance of your team with Cognitive Performance Software.

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Best Practices Growth Management Skills Technology

Cognitive Performance — The Human Side of Cognitive Computing

By Daniel Burrus and Neil Smith

(In this blog series on how elevating cognitive performance is a game changer for organizations, I’ve invited Neil Smith, CTO at Think Outcomes, to join me in writing on this important topic due to his expertise and the cognitive performance software his firm has created.)

As a leader, your responsibilities exist on the cognitive side of your business, where you think critically, make complex decisions, collaborate among your network, communicate with your stakeholders, comply with regulations and monitor uncertainties, to name a few. These activities represent your cognitive work. Given today’s rapid growth in organizations using AI, you are most likely exploring the current state of cognitive computing and how it can help you with your responsibilities beyond the collection, storage and retrieval of data through computers as data appliances. You are also considering how the highly marketed definitions of cognitive computing from IBM Watson can help you?

How cognitive performance computing can help you as a critical thinker in business  

As we meet with leaders in business, management consulting and government around the globe, they, too, are wondering how they can leverage cognitive computing for their work.

These professionals occupy roles in the cognitive operations of their organizations, where there is a constant set of unknowns. Senior executives are responsible for closing their gaps in knowledge about the future state of their businesses. Trusted advisors must do the same for their clients. As standard setters must set guidelines as best practices, regulators create the laws that require cognitive compliance from organizational leaders. The next evolution of cognitive computing addresses their cognitive responsibilities — i.e., helping executives and management consultants work through their risk-reward trade-offs in context to situational context and criteria, while standard setters and regulators build the required thresholds into the thinking of organizational leaders. This segment of cognitive computing is known as cognitive performance. Enhancing cognitive performance improves critical thinking, stakeholder communications, decision making, advisory collaboration, monitoring of uncertainties and cognitive compliance. Cognitive performance software extends the human mind with computing to help humans learn, compete and grow the impact of their own intellects.

Leverage cognitive computing for what your mind can’t do

Where machines continue to learn role-based tasks, it’s necessary for humans to work in harmony with machines to better navigate through areas of complexity and uncertainty. For business to advance, enhancing human performance needs to be a strategic imperative for business executives rather than accepting the status quo. With stronger human performance, culture will transform with faster cognitive insights and foresights to create an environment of deeper human learning. Without higher performance from our minds, we’re all operating the same way — figuring out situations on our own in a sequential order and learning from hindsight. Computers, available data and applying the four pillars of the Anticipatory Model will help us learn with foresight. To compete in industry today, we need cognitive computing to do more for our minds than provide data-driven insights. We need cognitive computing to assist the cerebral processing in our minds, help us gain perspective and put us in a position to make high-fidelity decisions. The human computers on top of our shoulders need turbochargers. As visual learners, wouldn’t it be great if we made our thoughts visual through thinking patterns to make the most of our risk-reward trade-offs! That would change the velocity of decision making and stakeholder communications! To move the needle much further in business requires a focus on the performance of human minds across teams — from senior executives and mid-level managers in business to those in their supply chains, consulting circles, insurance relationships, investor partnerships and professionals across the sciences, among others. Enhancing cognitive performance needs to be a strategic imperative to gain a competitive advantage.

Improve reasoning and judgment

Professionals know they rely on instinct and gut reactions all too often. Their ability to process information in their minds or to understand someone else’s viewpoint is often challenging. It’s a human limitation, and that’s where responsibility-based computing can help. The batting averages of professionals in reasoning and judgment must improve in today’s business world. The cognitive era is the time to break through these limitations and leverage computing to extend the capabilities of our minds.

Digital advancement in cognitive performance

Many teams responsible for operating processes on the transactional side of their businesses are now involved in digital transformation. They are automating their manual activities using AI, question-answering systems, big data and other software. Within the cognitive side of their businesses, the cognitive operating processes are ready to digitally advance as well. Those who spend time prioritizing and enhancing the cognitive performance of their teams will leapfrog their competitors as they will strengthen human performance.

The benefits of exponential advances in computing must now be applied to human performance. There’s a long, bright road ahead for the performance of the human mind. We’re just at the beginning.

Learn how to elevate your planning, accelerate innovation and transform results with The Anticipatory Learning System and how to maximize the cognitive performance of your team with Cognitive Performance Software.

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Marketing Personal Development Sales Technology

Boosting the Shopping Experience

Estimates hold that more data will be produced in 2018 than in all years previously. Much of that is consumer-focused—what we buy, how we buy it and why we buy it, among other information.

Thanks to the leverage and insight afforded by big data analytics, retailers of all sorts have the ability to enjoy an enormous opportunity to better focus and improve their customers’ overall shopping experience.

Big data analytics can now be used at every stage of the retail process, including identifying consumer trends, forecasting demand, pricing and pinpointing the most efficient means of delivery. That’s a proactive form of decision making, one of the benchmarks of my Anticipatory Organization Model.

That’s also good news for both shoppers and the organizations that serve them. Here are just a few areas in which data analytics is crafting a more rewarding shopping environment for everyone.

Product Recommendations

Most every Internet shopper has experienced “If you like this, consider this” and other similar pitches based on buying history and preferences. But, advances in data analysis and other related forms of technology hold the promise of more interactive, personalized forms of shopping guidance and suggestions. For instance, clothing retailer The North Face now offers an online tool called Fluid Expert Personal Shopper. The system, which uses IBM’s Watson cognitive computer technology, employs a “personal shopper” that can ask consumers questions about gender, location and even the sort of weather conditions where the clothing will be worn. From there, the system can provide specific recommendations.

Although still in an initial, limited stage, programs such as Fluid Expert Personal Shopper hold the potential for an even more comprehensive and useful customer experience. For instance, Watson is now using additional data to develop a “sentiment analysis” feature, which will allow systems to gauge changes in customer moods to better manage interactions with consumers. In effect, shopping systems will be able to interpret in an intuitive manner whether customers are pleased with a purchase, dissatisfied or interested in some other item.

More Useful, More Focused Apps

An increasing number of retailers are using mobile apps as a means to improve in-store shopping experiences and better interaction with store employees. That can begin well before a customer arrives at the store itself. For instance, retailer Nordstrom’s mobile app allows customers to check details such as product availability, size and color before they visit a Nordstrom store. The system also offers personalized recommendations based on gathered customer data. Customers who opt in can also have their profiles—including purchase histories—forwarded to in-store salespeople when they enter a store so they can receive immediate, personalized service.

In another example, Target’s mobile app leverages product location data, a store’s physical layout and customer profiles to offer personalized promotions to customers as they shop in-store. To that end, the company has begun installing beaconing technology at dozens of locations to gather movement and shopping pattern data from customers who agree to be monitored. This, in turn, promises to help customers not only make better buying decisions but to do so more efficiently instead of wandering up and down aisles in search of a particular item.

Greater Delivery Choices

The convenience of mobile Internet-based shopping has afforded consumers a greater range of control over not only when they shop but also where and when they receive items they buy. Locational data provided by the proliferation of smartphones takes that level of convenience and specificity to a completely new level. In one respect, that opens up the possibility that items can be delivered to customers wherever they happen to be—at home, on the job, at a restaurant having lunch and at any number of other locations.

Alternatively, by leveraging geolocation data, companies can also immediately notify shoppers when purchased goods have been dropped off at their homes or other spots. Not only does that lessen the chance of a delivery being missed, but time-sensitive deliveries—such as a gift that the buyer wants to keep secret from a family member—become that much easier to manage.

Consumer data isn’t limited to information about a particular shopper. Big data analytics allows organizations of all sorts to apply that information to make shopping more enjoyable, efficient and customer-focused for a broad range of consumers.

Ready to see the future and plan with greater confidence? Subscribe to my publication, The Technotrends Newsletter, now in its 35th year, and join thousands of leaders who have accelerated innovation and results by applying the principles I teach in my award-winning Anticipatory Organization Learning System.

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Best Practices Growth Management Personal Development

Converting Information into Knowledge-Based Assets

When I developed my forecasting model in the early 1980s, I could see that a digital revolution would unfold, and as it did, an advanced form of capitalism would emerge, one where ideas and knowledge stimulated economic growth even more so than labor, land, money or other tangibles. It later became known as the Knowledge Era – or the Knowledge Age – in contrast to the Industrial Age.

A Few Strategic Questions to Consider

There is a big difference between data, information, knowledge and wisdom. Today we are all focused on big data, and we should be because it provides the foundation for the three higher levels. We all have a database, and as we all know, there is no shortage of information, but do you have a knowledgebase? Is your organization creating new revenue streams by converting information into actionable knowledge, sharing that knowledge internally to increase its value, and then selling it in non-competing industries? I helped a large global organization do this several years ago and they generated over $100 million in the first year. All too often we fail to see the hidden value of the people part of the business. Are you actively using web-based technology to leverage the talents, knowledge and wisdom of employees to create new high-margin products, as well as solve problems faster?

All too often, as we grow larger and move faster, we can easily lose track of the wide variety of intellectual property (IP) we have created. Are you actively formalizing, capturing and leveraging your intellectual property(IP) to create higher value assets? Using today’s digital tools, it has never been easier for any organization, regardless of size, to create new revenue streams by leveraging their enhanced IP.

Three Must-Have Components to Leverage Intellectual Capital

1. Everyone in the organization must see the tremendous opportunity and added value in going beyond the current activity of converting data into information, to higher levels of value by creating and delivering actionable knowledge and wisdom. In addition, auditing and evaluating intellectual assets must be seen as a strategic direction.

2. Everyone in the organization must see that its technology infrastructure and organizational culture are the keys to unlocking the vast wealth of knowledge within the organization, both for the organization and your clients. Knowledge increases in value when it is shared within the organization, and that means shifting from being an Information Age organization to entering the Communication Age. Informing is a one-way activity that does not always produce a result. Communicating is two-way and dynamic and almost always causes action. That’s why social media has grown so fast; it is a Communication Age enabling technology. An internal knowledge-sharing strategy, focused on fostering two-way communication and dialog, is crucial because as I said earlier, knowledge increases in value when it is shared.

3. Everyone in the organization must see their participation as essential to building a strong foundation for the enhancement, sharing and delivery of knowledge. When we have collective knowledge and wisdom at out fingertips, everyone can accomplish their work with less time and effort.

Keep in mind that you get the behaviors you reward; therefore, there must be a rewards system for sharing knowledge. Remember, there are many ways to reward people and not all have to involve money.

If you would like to learn more about how to convert information to knowledge and then productize it for revenue, I recommend reading my latest bestselling book, The Anticipatory Organization.

Categories
Best Practices Growth Personal Development

Monetizing Intellectual Capital

Your most valuable business asset may not be the raw materials, cash reserves, or even the technology found within your company. It’s the knowledge of the people on your team. Yet, a good number of executives overlook the value of this collective knowledge, commonly called Intellectual Capital.

Case in point: Several years ago, I attended a meeting with executives and managers from one of the largest automobile manufacturers in the world. One of the top executives stood before the large crowd and exclaimed that their most valuable asset was their brand recognition. At that point, I knew this company was heading for trouble.

As I watched the business news headlines over the next couple of years, I could see how this icon of American manufacturing struggled to survive.

The lesson: Brand recognition is very important, but there are other things that are even more valuable to a company’s health and longevity. One of those things is something less tangible, but extremely impactful.

Intellectual Capital can be Leveraged 

Intellectual capital is a term that covers the value of intangible assets. The three dimensions of intellectual capital are Human, Relational and Structural.

These are all exactly how they sound – human resources are your company’s people; relational capital is comprised of your relationships with customers, vendors and other constituents; and your business structure includes infrastructure, processes, and databases of information. An example of structural capital is intellectual property.

Over the past 35 years, I have observed that the most valuable assets of an organization tend to be the knowledge, talent, experience, capabilities, and vision of the people within the organization. These, coupled with the value of their patents, customer bases, and good will, equal what is called their intellectual assets.

Managing Intellectual Capital

When leaders understand how to formalize, capture, and leverage their intellectual capital to produce higher-valued assets, their profits tend to soar. There is even an emerging business strategy that focuses on creating, shaping, updating and taking “stock” of intellectual capital.

It requires having the strategic vision to blend all dimensions of intellectual capital (people, relationships, and structure) to develop a management system that is measurable, yet pliable enough to change how the intellectual capital dimensions are blended.

There is more to the process than will fit into this one article, but the concept is this: By using a multiple stage process that is governed by evolutionary logic, the intellectual capital management includes interconnected sets of practices: strategic alignment, exploration and exploitation, measurement and reporting.

The Knowledge Era Put A Focus On Intellectual Assets

One important part of capitalizing intellectual capital is to keep the knowledge pipeline full. One of the best ways to do that is to convert information into actionable knowledge.

In 1990, I predicted organizations worldwide would increasingly create new economic value by converting information into knowledge, sharing that knowledge internally to increase its value, and then selling it in non-competing industries to a global client base. When the icon-based, user-friendly World Wide Web spawned a new digital industry in a short length of time, organizations began to want their intellectual property formalized, captured and leveraged for higher values. And they wanted it online.

It became known as the Knowledge Era or Knowledge Age, in contrast to the Industrial Age. By the end of the 21stCentury, we saw an advanced form of capitalism; one where ideas and knowledge stimulated economic growth even more  than did labor, land, money or other tangible resources.

Around the same time computer companies saw their profits shift from hardware manufacturing in the 1980s to software creation in the 1990s and beyond, businesses of all sizes and in all industries started using web-based technology to leverage the talents, knowledge and wisdom of employees to create high-margin products.

Three Must-Have Components to Create Intellectual Capital

When I consult with executives today, it’s often important to review the components that are necessary to leverage a process for monetizing intellectual capital to make sure they have them in place.

1. Everyone in the organization must see the tremendous opportunity and added value in going beyond the current activity of converting data into information, to higher levels of value, by creating and delivering knowledge and wisdom, which clients can quickly act upon. In addition, auditing and evaluating intellectual assets must be seen as a strategic direction.

2. Everyone in the organization must see that its technology infrastructure and organization are the keys to unlocking the vast wealth the Knowledge Era had to offer, both for the organization and your clients. Knowledge increases in value when it is shared within the organization, and that means the Communication Age could not have come at a better time. Informing someone of your knowledge is very different than communicating with them. That’s why a knowledge-sharing technology strategy, focused on fostering two-way communication and dialog, is so crucial to organizations in achieving their goals.

3. Everyone in the organization must see the importance of his or her own participation as essential to building a strong foundation for the enhancement, sharing and delivery of knowledge. You get the behaviors you reward; there must be a reward system for sharing knowledge. I like to remind my consulting clients that there are many ways to reward people, and not all of them have to involve money.

At this point in time, technology is no longer a barrier to creating a Knowledge Era enterprise. Below is a case study about a knowledge-based product that was created in the midst of this era, and serves as a great example of the value of intellectual capital.

An Early Example: Mayo Clinic’s First Knowledge-Based Product

In the 1990s, one of the largest health systems in the country, Mayo Clinic, was looking at a future of decreasing reimbursements for Medicare and Medicaid, and increasing losses in their emergency rooms. For the Mayo Clinic and other health systems, the future looked bleak.

In a consultation with their executives, I asked a simple question: “Why don’t you sell your knowledge?” Though their initial response was skeptical, further thinking led them to put Mayo Clinic knowledge on a CD, which was a relatively new technology at the time.  That meant that any time, day or night, people who purchased the CD could put it in their PC and determine if, for example, their child’s rash and fever required just aspirin, or a trip to the emergency room.

The Mayo Clinic put a $100 price tag on their CD product when it first came out, and in the first year, I was told they sold 670,000 copies. A light went on for the clinic executives; leveraging internal knowledge could create value.

It was their first-ever knowledge-based product, and it was a precursor to not only MayoClinic.org, but also to a host of other online consumer health information portals that are heavily used today. One side benefit they discovered was the impact on their brand; by using knowledge as an asset, Mayo Clinic developed a new and powerful image in the health care marketplace that they continue to leverage right up to the present.

Knowledge is (Branding) Power

Before putting actionable knowledge on a CD (keep in mind this was before people were on-line), in order to get help from the Mayo Clinic, you had to go to one of their locations. But with a CD of knowledge that was then translated into French, German, Spanish, and Japanese, the clinic could help people anywhere around the world at any time. And, keep in mind, this was long before the phrase 24/7 accessibility became popular.

From there, Mayo Clinic decided to customize the knowledge product for various audiences, including elementary schools, high schools, medical schools, and nursing homes.

The result was new value and new revenue; they had opened their customer base up, not only to people who were geographically close, but also to the world. And in the case of the Mayo Clinic, the name recognition isn’t regional or national anymore; it became international.

This history lesson illustrates the power of using new tools to create new income streams and elevate your brand in powerful new ways.  It doesn’t matter what industry you are in; we all have intellectual capital that can be formalized, captured and leveraged using today’s new and powerful tools.

Are you leveraging the most valuable assets in your organization?

If not, what are some ways you can convert information to actionable knowledge and then productize it for revenue? In today’s mobile, social, virtual online world, you are  limited only by your mindset.  If you feel stuck, I recommend subscribing to my Anticipatory Leader System to determine what intellectual assets will be important to your consumers in the next 5 years and beyond.