The Six Megatrends You Should Know About

What is a megatrend? In their book Leadership 2030, Georg Vielmetter and Yvonne Sell explain that a megatrend has three dimensions: Time – it’s observable and can be predicted with high probability at least 15 years into the future, Reach – it affects all regions and stakeholders, and Impact – it fundamentally transforms policies, society and the economy.

Through their research with Z-Punkt and the Hay Group, Vilemetter and Sell have uncovered six megatrends that we need to be aware of in the near future:

Globalization 2.0: Asia dominates the global economy
Climate change: Sustainability becomes imperative
Individualism: Freedom of choice erodes loyalty
Digitization: Boundaries blur between private and working lives
Demographic changes: Aging populations intensify the talent war
Converging technologies: The sharpest tech shift in history is around the corner

If you would like to hear more about these megatrends and how they will impact your business, please join Vielmetter and Sell at our Soundview Live webinar on August 7th entitled The 6 Megatrends You Need to Know About. You’ll learn how these megatrends will affect your sector of business, and what you can do to prepare for and take advantage of these trends.

What is a Responsible Entrepreneur?

“Responsible entrepreneurs are a special breed, seeking to transform industries and even society itself. They challenge and refine cultural assumptions, laws, regulations, and even the processes of governance. This requires them to do and think far beyond what is usually required of business leaders.” Carol Sanford

In Responsible Entrepreneur, Carol Sanford, one of the most trusted names in responsible business development, offers a blueprint for this new kind of business leadership, describing the means by which any entrepreneur can pursue a higher order of work.

Sanford maps this journey through four archetypes:

•The Realizing Entrepreneur:  Industry Game-Changer (Steve Jobs, Sarah Slaughter)

•The Reconnection Entrepreneur: Society Game-Changer (Richard Branson, Cheryl Contee & Kipp Baratoff)

•The Reciprocity Entrepreneur: Culture Game-Changer (Oprah Winfrey, Michiel Bakker & Annalie Killian)

•The Regenerative Entrepreneur: Governance Game-Changer (Larry Page, Jay Coen Gilbert & Shainoor Khoja)

We have invited Carol to our upcoming Soundview Live webinar, The Responsible Entrepreneur, to give you a better understanding of which archetype most aligns with your goals, so that you can learn how to grow your business into a powerful platform that can leverage change, and even change the foundations that create our most pressing problems and issues.

For entrepreneurs seeking to pursue world-changing results, or impact investors looking to align their capital with their values, The Responsible Entrepreneur provides the frameworks to build a business and to evaluate and direct investments to create the greatest benefit for all stakeholders. For anyone who wants to make a difference in the way businesses affect the world, The Responsible Entrepreneur lays out ways to make that aspiration focused and doable.

Join us on July 24th for our webinar with Carol Sanford, and bring your questions to post during the live event.

How Gamification Motivates People to Do Extraordinary Things

GAMIFY

Motivation for Gamification

Gamification describes the use of game mechanics and experience design – a story line, for instance – to digitally engage employees and customers, writes Gartner consultant Brian Burke in his gamification primer, Gamify.

As with many new technological trends in the workplace, gamification is often misunderstood or overhyped, Burke writes. Gamification does not mean turning work processes into a video game (giving a sales manager a virtual gun and turning individual salespeople into virtual targets does not motivate salespeople to be more competitive). Nor will a game turn a dreary job into a fun-filled, joyful exercise. What gamification can accomplish, he writes, is to motivate people to change their behaviors or to develop their skills, and can also drive innovation.

Three Elements of Motivation

Gamification works because it addresses the three elements of motivation:

Autonomy. Gamification allows people to opt in, then make their own choices as they proceed through the game.

Mastery. Everyone has a deep-seated desire to improve and make progress. Perhaps full mastery is not possible in gamification as in real life, but gamification provides the constant positive feedback that motivates people to keep trying harder.

Purpose. Gamification is different from traditional games because there is an overriding purpose. Unlike a game, which is simply created to entertain, gamification “engages players at an emotional level to help them achieve a goal that is meaningful to them,” Burke writes.

For example, Burke describes how a hospital for children developed a game app to encourage sick children to keep up their pain journals. These journals are important for doctors to know which treatments are working, but children, especially those having a bad day, are not always motivated to fill out the journal. With the iPhone “Pain Squad” app, children become members of a police force who progress through the ranks depending on how many days in a row they fill in their journals.

Three Audiences

Gamified solutions are usually targeted at one of three audiences: employees, customers and communities of interest (for example, ecologically-minded people who through Internet-based gamification are encouraged to recycle).

The Pain Squad example above illustrated how gamification was able to engage customers – in this case, the sick children – to change their behaviors. Barclaycards uses gamification to engage customers in driving innovation for their Barclaycard Ring credit card. This low-rate credit card is unique because it operates as a separate profit center, and “profits generated by the community are shared with the community,” Burke writes. Through status tiers (bronze, silver, gold, platinum and palladium) and badges, Barclayscard Ring members are pushed to participate in developing the community by suggesting or voting on ideas that would improve the product, or taking such actions as recruiting new members.

NTT Data uses its Ignite Leadership game to identify and develop leadership skills among their employees, many of whom are dispersed to various client sites, some of them for years and even decades. Under such circumstances, they lose their connection with the company. Ignite Leadership creates real-world-scenario questions and allows the player to choose among a multitude of options; there is no right answer. The training is structured as a journey, with points and badges awarded at different levels and a leaderboard that shows player rankings.

These are just three of Burke’s many examples as he illustrates the wide variety of situations in which gamification can be used. In the second half of the book, Burke offers a detailed, step-by-step process for gamification, starting with defining the business outcomes, target audiences, and player goals and moving on to such issues as the player engagement model (for example, is the game collaborative or competitive, emergent with an unknown outcome or scripted?).

In Gamify, Burke reveals the full complexity and potential of gamification but presents his material in a succinct, clearly organized manual that will motivate leaders to follow the example of the successful companies featured in the book.

The Hurdles for Globalization

THE ROAD TO GLOBAL PROSPERITY

Michael Mandelbaum is an unequivocal supporter of globalization, and in his latest book, The Road to Global Prosperity, he lays out both the advantages and challenges that globalization faces in the coming years.

A leading authority on international affairs, Mandelbaum does not deny that globalization, like any productive economic change, causes some people to be worse off than they were before, at least in one aspect of their lives; but even for them, Mandelbaum notes, globalization has advantages. For example, globalization gives all consumers more product and service choices and better prices.

The political problem, writes Mandelbaum, is that the advantages of globalization are far more long term and subtle than the immediate and wrenching negative consequences. Product choices and better prices evolve over time; the job losses, however, are immediate and unambiguous. And because of the immediacy of the pain, it is the minority of globalization losers, not the majority of winners, who have a greater motivation to try to influence policy. That is why, despite the advantage for the majority, globalization faces an uphill battle in democracies.

In four brilliant chapters, Mandelbaum lays out the political hurdles that globalization must and, he believes, will overcome. In the first chapter he tackles the question of whether the world will continue to “be stable and peaceful enough to permit trade, investment and immigration on a large scale?” Mandelbaum compares global stability and peace to the roof of a house. Without a roof, the residents of that house would spend all their time battling the elements, severely limiting their ability to function productively. National economies also need a roof of security to function effectively, and for many years, he writes, that roof was provided by American military power. Today, however, there are two other sources of security that have made the roof sturdier, according to Mandelbaum: 1) the legitimacy of globalization, or more specifically of market capitalism and cross-border economic transactions, and 2) the new illegitimacy of war.

The second political challenge is the political backlash against cross-border flows. A global economy depends on the cross-border flow of goods, money and people. Unfortunately, as described above, the creative destruction of such a flow — that is, the difficult negative consequences required for a longer-term positive result — can motivate a minority of people to shut the gates. Mandelbaum believes, however, that because globalization makes all countries engaged in it richer, the gates will remain open at least to trade and investment.

The third political challenge comes in the form of global financial crises, such as the 2008 Great Recession in the United States. Mandelbaum turns again to a metaphor as he compares the flow of money across borders as having the attributes of a river: a life-sustaining force when under control, it can lead to widespread destruction when it overflows its banks and floods the land or streets around it. Financial bubbles are the equivalent of floods, and the most recent bubble, combined with the Euro crisis, has both the United States and Europe still trying to recover. Reducing a repeat of shocks in the future is vital to long-term economic growth, Mandelbaum writes.

Finally, he examines the challenges facing the BRICs — Brazil, Russia, India and China. Representing the largest and most powerful countries in four crucial regions of the planet and a total population of 3 billion people, the continued growth of the BRICs’ economies is vital to future prosperity. The Road to Global Prosperity is a tour de force of economic writing: at once brief and comprehensive, it offers an insightful framework that allows readers to grasp the complex political forces that may batter but not sink the global economy.

Is Your Board Creating Value?

BOARDS THAT LEAD

When to Take Charge, When
to Partner, and When to Stay Out of the Way

In Boards That Lead, authors Ram Charan, Dennis Carey and Michael Useem argue that boards today have a duty to lead — to take a more active role in making decisions that were once perhaps the sole prerogative of the executive. The reason for the increased active leadership role of boards is the growing complexity and information overload of today’s business environment “across every facet of doing business,” the authors write. They stress, however, that their new model of board leadership is based on a collaborative partnership in which the boards know “when to lead, when to partner, and when to stay out of the way.”

Knowing When to Do What

Perhaps the most important leadership responsibility of the board is to develop the central idea of the company — the practical, guiding core concept of the company that “references why the company exists, whom it serves, how it should be nurtured, why it will flourish, how it will make money and manage risk, and where it must be going if it is to sustain a competitive presence and achieve its broader purpose,” the authors write. “The central idea is the bedrock on which the enterprise is raised and how its resources are spent.”

Boards should also take a leadership role in selecting the CEO; ensuring the board’s competence, architecture and modus operandi; ensuring the ethics and integrity of the company; and defining the company’s compensation.

Boards should partner with the company’s executive on strategy, capital allocation and execution; defining the company’s financial goals; managing risk; allocating resources; developing talent; and developing what the authors call a “culture of decisiveness.”

Finally, according to the authors, boards should stay out of the way for issues of execution and operations as well as non-strategic decisions.

The Apple Example

The productive collaboration between Steve Jobs and the chairman of the Apple Board Edgar S. Woolard, Jr., according to the authors, perfectly exemplifies the meaning of knowing when to lead, partner and stay out of the way. To begin with, it was Woolard who convinced the board to bring Jobs, forced from Apple in 1985, back to the company in 1997 (one of the authors, Ram Charan, was an advisor to Woolard during this period). Jobs agreed on the condition that Woolard replace the entire board, although eventually one other board member was allowed to stay.

With a new board in place and Jobs committed to reviving the fast-declining company, Jobs and Woolard, according to the authors, began a back-and-forth process in which Jobs would come to Woolard with an idea, which Woolard and the board would either approve or disapprove. Jobs, Woolard would say, was always respectful, making a passionate pitch for his ideas but accepting defeat if it came. In many cases, however, Jobs was able to sell Woolard on his ideas. For example, after taking his new leadership position, the authors write, Jobs convinced Woolard to let him stop the Mac clones (an expensive proposition since the clone makers were under contract), fire many of the firm’s engineers, divide the survivors into six teams with whom Jobs would meet once a week, and perhaps most memorably, create an Apple store. Woolard resisted the Apple store, knowing that other computer manufacturers had tried and failed to succeed in retail. He finally acquiesced to only four stores, which the board approved.

Boards That Lead is an owner’s manual, clearly laying out how boards are supposed to operate. The book begins with defining the central idea and recruiting the right board members, then moves to several chapters on managing CEO succession (including identifying failing CEOS and recruiting successful replacements), and finally covers managing risk and avoiding micro-management. All chapters end with a detailed “director’s checklist” to help achieve the responsibilities outlined in the chapter.

In an early chapter, the authors write that board leadership “does not mean wandering into the weeds — micromanagement is decidedly not the point — but laissez-faire is no longer an acceptable posture at many boards either.” This clearly organized and authoritative book will help boards of directors stay as actively involved as they need to be — and no more.