Tag Archives: performance

How and Why Gamification Must be Effective in the Enterprise

I am not a gamification expert. In fact, until today, I was skeptical of the potential effectiveness of the gamification of work in changing employee behavior and performance. I have consistently advised my software vendor clients that gamification is a wild card, because the value of gamifying enterprise software has not been demonstrated beyond question.

My outlook on gamification changed instantly today, while reading a New York Times Magazine article written by Charles Duhigg and shared on Twitter by Sameer Patel, whose value judgements and recommendations I very much trust. The article, which is actually an extended book excerpt, is not about gamification. Rather, it is about the application of analytics and behavioral science to large retailers’ marketing efforts. However, what I learned reading the article changed my perspective on the gamification of work by revealing a scientific basis for why it must succeed, if properly applied.

Duhigg tells the story of Target’s efforts to use customer purchase and demographic data to identify which of its female customers were in the second trimester of a pregnancy, so the retailer could shift those customers’ in-store and online buying habits. While that story is fascinating in itself, Duhigg’s explanation of the behavioral science on which retailers build their marketing strategies is what made me rethink my position on the gamification of work.

Behavioral scientists have shown that habits – routines that we largely perform subconsciously – are developed responses to a consistent, reoccurring stimulus. We repeat the action (habit) every time our brain is cued by the stimulus because doing so produces a mental, emotional, or physical reward. The more we repeat this cue-routine-reward loop, the further ingrained the habit becomes.

As Duhigg explains with an extended anecdote about Proctor & Gamble’s marketing efforts around its Febreze product, it is very difficult, if not impossible, to create a new habit in a vacuum. The only way to effectively change a habit is to embed it in an established cue-routine-reward loop, replacing the old routine with a new one. This is the scientific key to why the gamification of work is not just bogus theory.

For gamification to be effective, new behavioral routines must be applied when triggered by a specific work stimulus and yield already desired rewards. If we understand the cues that trigger unproductive habits for workers, as well as the rewards they derive from applying those routines, we can replace those unproductive actions with more productive ones.

Most examples of work gamification that I have seen ignore the existence of cues completely. Gamification elements are constantly present, rather than appearing only under specific conditions. Embed it and they will play.

Furthermore, gamification has too often been explained in terms of changing the rewards when, in fact, it is about changing the behaviors themselves. Behavioral science has demonstrated that changing the reward does not change the behavior. Rather, the routine must change, and the new, desired behavior must be linked to an existing, desired reward that motivates an employee.

Other Thoughts Related to This Behavioral Science

The behavioral science behind Target’s and P&G’s efforts to alter customer’s buying habits can be applied to any other situation in which change is desired to affect positive performance outcomes. Unproductive work habits is one area, as discussed above. Another is the adoption of new enterprise software.

If organizations tied usage of new software to the specific cues and rewards associated with existing work tasks and habits, adoption would rocket up the desired hockey-stick curve. Both the use cases and the benefits would be crystal clear to employees, eliminating two of the most significant barriers to the mainstream adoption of new software. The “what’s in it for me” would be immediately obvious to the workers to whom the new software has been launched. Change communication (and application training) would still be critical, but the creating the associated messages would be greatly simplified, as they are already known.

As demonstrated in Duhigg’s article, behavioral scientists (and retailers) also understand that there are a few specific, life-altering events that provide the perfect window in which influencers can change an individual’s seemingly intractable habits. Events such as graduating from college, changing employment, getting married, buying a house, and yes, having a baby, disrupt peoples’ ingrained habits, or at least cause them to question their routines. As such, major life events offer influencers a very valuable opportunity to seed new habits that will then remain in place and unquestioned until the next big life event occurs.

Why is that important? Think about who in the enterprise is currently responsible for being aware of impending or recent employee major life changes, and helping employees minimize the effects that those changes may have on their work performance. Human Resources. Yes, HR is the corporate custodian of changes associated with employee life-events. As such, they are well-positioned to identify the optimal opportunities for changing an individual employee’s work habits in ways that will lead to improved performance. Managers directly supervising one or more employees are even better positioned to identify those performance change opportunities, as they often become aware of actual or planned employee life changes before HR knows about them.

Charles Duhigg’s book excerpt provided me with an ah-ha moment regarding the gamification of work. It also underscored how important the understanding of behavioral science is to affecting positive workplace transformation. Many of us focused on the intersection of business and technology too often are unaware of, or under-value, the contributions that social science has made to the understanding of organizational behavior. Thank you Mr. Duhigg (and Mr. Patel) for leading me to these insights today.

Image source: http://www.bigdoor.com

Lotusphere 2011: IBM at a Crossroads

This entry was cross-posted from Meanders: The Dow Brook Blog

I was fortunate to attend Lotusphere 2011 (#ls11) last week in its entirety, quite by accident. I was scheduled to leave after the official program for analysts ended at Noon on Wednesday, but Mother Nature buried Massachusetts in about 18 inches of snow that day. My flight home was canceled, and I was rebooked on another one leaving Friday night. As a result, I was able to have some additional meetings with IBM executives and other attendees, and to soak in more conference sessions.

Attending the entire conference enriched me with perspective on several areas of both Lotus’ and IBM’s larger business strategy and offerings. I will summarize what I learned in this post, with the goal of perhaps exploring some of the individual topics further in subsequent posts.

IBM and Social Business

To the surprise of many in attendance, a strong, vocal embrace of the concept of social business came not only from all the Lotus Vice Presidents, but from a senior corporate-level IBM executive as well. SVP of Marketing Jon Iwata spoke at a keynote session entitled “Becoming a Social Business”. While he eloquently  and passionately spoke about how IBM is rapidly becoming a social business itself, he also told a story that revealed a strong, and nearly unanimous, level of initial resistance from the company’s senior leadership team.

Another conflicting signal was the marketing strategy revelation that the Social Business positioning (and budget) is buried inside of IBM’s Smarter Planet initiative, which will potentially minimize the impact of the social business message to IBM customers and the broader market. The nested positioning suggests to me that there are still those among IBM’s leadership that are not ready bet the company on social business.

Lotus Software Portfolio Integration

The Lotus division has executed very well to make parts of the Project Vulcan vision introduced last year at Lotusphere real and available to customers. The general session presentations made it clear that Lotus Notes is intended to be the primary interface through which IBM’s integrated collaboration and social functionality will be exposed. However, IBM also articulated and demonstrated that its “Social Everywhere” strategy, which was presented at Lotusphere 2010, is very much alive and well. That was done by talking about and showing the following integrated solutions.

Exceptional Web Experience

The Exceptional Web Experience solution is made tangible in software through the Customer Experience Suite (CES), which was launched in November 2010. The CES combines portal, content management, commerce, forms, analytics, and other software assets from multiple IBM brands into an offering that enables the rapid design, monitoring, and customization of customer-facing websites.

At Lotusphere, IBM demonstrated momentum for this young initiative by featuring customer testimonials as a key piece of a general session entitled “Client Panel – Exceptional Web Experience”, as well as in individual breakout sessions. These customer presentations communicated specific business performance and ROI results attributable to CES use. This data was great to see, and it made a compelling argument for the CES. It also left me wishing that we had comparable data regarding the use of IBM social software inside of organizations.

Exceptional Work Experience

IBM does have a parallel initiative to the Exceptional Web Experience in the works, but has not yet announced a solution bundle for it. The Exceptional Work Experience initiative will focus on enabling social collaboration within organizations. It most likely will feature software assets from various IBM brands, including Lotus (Connections and Quickr) Enterprise Content Management (Content Manager and FileNet), Websphere (Portal), SPSS, Cognos, and Coremetrics.

At Lotusphere 2011, IBM used the term “Exceptional Work Experience” in session labels and in content presented during sessions, but never defined an offering. As a result, some customers that I spoke with were confused about IBM’s strategy for supporting social business within organizations. IBM will need to quickly clarify that strategy and announce a holistic, enabling solution along the lines of the Customer Experience Suite to better support its customers’ efforts to transform internal operations in line with social business principles.

Social Content Management

IBM sowed confusion in another area as well at Lotusphere 2011. In a breakout session given by IBM employees, entitled “Extending Social Collaboration with Enterprise Content”, IBM introduced a new positioning for its combined enterprise social and content management capabilities – “Social Content Management”. This is a market positioning statement, not a branded solution, that features integration between Lotus social/collaboration applications and technologies from IBM’s Enterprise Content Management group. The presenters defined Social Content Management as seamless content creation and collaboration, in social & ECM environments, supported by open standards.

In reality, there was little new other than the category label, as both the vision and specific technology integrations presented were a rehash of Lotusphere 2010 content. The session presenters articulated and demonstrated how organizations can manage content created in social software (Lotus Quickr and Connections) with the same IBM technologies currently used to manage documents (IBM Content Manager and FileNet).

The one new piece of information in this session was a bit of a shocker – IBM does not believe that CMIS is usable in its current state. The session presenters said that the CMIS standard is not mature enough yet for them to use it to provide the depth of integration they can with proprietary connectors. Therefore, for now, IBM will continue to integrate its social and content management technologies via proprietary code, rather than using the open standard (CMIS) that the company’s own definition of Social Content Management prescribes. This is especially surprising because IBM is one of the founding members of the OASIS CMIS Technical Committee, along with EMC and Microsoft.

Enhancements to Individual Lotus Collaboration Offerings

IBM’s strategy is to create multiple points of integration between its social, collaboration, and content management offerings (among others), but it will continue to sell individual products alongside the solution bundles it is creating. The company announced a number of upcoming functional enhancements to its products at Lotusphere 2011.

Lotus Connections

Lotus Connections 3.0 was released in on November 24, 2010, bringing enhancements in the areas of social analytics, Communities, stand-along Forums, mobility, and cloud delivery. IBM executed well on this release, bringing to market everything it had announced at Lotusphere 2010.

The next release of Connections, due in Q2, will introduce Communities and Forum moderation capabilities, a photo and video gallery with sharing features, idea blogs, and the integration of Communities with ECM repositories. Additional functionality, including an Event Aggregator that brings events from other enterprise applications into Lotus applications’ activity streams, shared walls and calendars in Communities, in-context viewing of documents on the Home page, and improved adoption tracking metrics and reporting, will be released later in 2011 (most likely during Q4.)

The most important announcement concerning Lotus Connections made at Lotusphere was not about home-grown functionality. IBM announced a partnership with Actiance (formerly FaceTime) that will immediately make available to IBM customers the Actiance Compliance Module for IBM Lotus Connections. This module will enable organizations in regulated industries to define and apply social media policies, as well as monitor social content in real-time for compliance with those policies. It was important for IBM to fill this gap in Connections functionality, because Big Blue has many customers in the financial services sector, and other  regulated industries, that have taken a very cautious approach to adopting social software. The Actiance partnership should help increase IBM’s sales of Lotus Connections to marquee customers.

Lotus Quickr

There was relatively little news regarding Lotus Quickr at Lotusphere 2011. It was most often mentioned as an integration point with Lotus Connections, IBM Content Manager, and FileNet. There was a breakout session on “What’s New in Lotus Quickr Domino 8.5”, but it merely rehashed the new features that were made available six months ago (on September 13, 2010.)

No new functional updates were announced for the J2EE version of Quickr either, nor was a product roadmap presented for either Quickr flavor. This heightens my suspicion that Quickr will be rolled into Lotus Connections in the next year or two. I believe IBM would do so sooner, but cannot because too many of it’s current Quickr customers have not yet purchased or deployed Connections.

LotusLive

IBM’s cloud-based collaboration service, LotusLive, gained new functionality in 2010, including iNotes email, the Communities module from Lotus Connections, and integrated third-party applications from Skype, UPS, Tungle, Silanis, and Bricsys. The LotusLive team also created new functional bundles as distinctly-priced offerings.

There were several new announcements regarding LotusLive made at Lotusphere 2011. IBM will be delivering its Symphony suite of office productivity tools as a service in LotusLive. This will enable users to collaboratively create, read, and edit word processor, spreadsheet, and presentation documents across organizational firewalls. Symphony is currently available as a Tech Preview inside of LotusLive Labs and will be made generally available later this year.

There were also several partnerships with third-party vendors announced at Lotusphere that will enable LotusLive users to execute important business processes in the cloud. The most prominent is a partnership with SugarCRM, which will make its sales tracking functionality available via LotusLive by Q2 of this year. A similar partnership with Ariba will allow LotusLive customers to procure and sell goods to other businesses. Finally, a partnership with Expresso immediately enables users to edit both Symphony and Microsoft Office documents within LotusLive, rather than the file’s native application.

The LotusLive team has executed well, delivering functionality promised at Lotusphere 2010. However, adoption of the offering has not reached the scale that IBM had anticipated it would by now. Listening to LotusLive customers speak on two different occasions revealed that smaller enterprises are using the offering to run mission-critical parts of their businesses, while larger enterprises are very cautiously  experimenting at the moment, if they are embracing the offering at all. 2011 will be a make-or-break year for LotusLive in terms of customer adoption.

Conclusion

I left Lotusphere 2011 with mixed feelings. The IBM Corporation has embraced social business, but is still hedging its bet. The Lotus division has executed well on previously announced strategy in the last year, but the impact of its more integrated offerings will be minimal unless other IBM divisions – Global Business Services in particular – step up to help customers become more collaborative, social businesses. The functional build-out of most of the individual Lotus products has continued at a good pace, but the development paths of some those offerings are less than clear to customers.

2011 could be a watershed year in IBM’s century-long history. However, we may ultimately look back and say that it was a year of missed opportunity. The outcome will depend on IBM’s success or failure in becoming a social business itself and aligning its resources to help customers transform as well.

Enterprise 2.0 or Social Business: Who Cares?!

As you may have already observed, the debate about what label to attach to the renewed focus on people in the business world has been rekindled this week, in conjunction with the Enterprise 2.0 Conference. While I will address the label question here, I do not intend to get mired in the debate. Instead, I will focus on whether or not the” people matter” movement should be described with tool talk or addressed in a more holistic fashion.

First, the label. I do not care if you call this renewed focus on people and the connections between them in the business world “Enterprise 2.0” (E2.0), “Social Business”, or anything else. The value to be gained from connecting people within and between organizations is to be found in what’s accomplished as a result of doing so, not in what the notion is called. Sure, it is helpful for the movement to have a lingua franca with which to “sell” the vision to business leaders. However, a consensus label is not necessary. A clearly articulated, holistic approach and value proposition are required.

So forget the label. Instead, focus on the substance of what we (those who believe that people matter in business) are presenting to organizational leaders that are more concerned about traditional issues like process efficiency and financial performance.

Now, on to the real debate. In his latest blog post, Andrew McAfee continues to insist that the message needs to be tool-centric. He says that we should address executives in phrases such as,

“There are some important new (social) technologies available now, and they’ll help you address longstanding and vexing challenges you have”

The movement is not just about tools. In fact, the tool-centric focus to-date of E2.0 is a primary reason why the movement’s core message that people matter has not reached the C-suite, much less sway their thinking. To suggest to a senior executive that the only way to better their organization’s performance is through the application of technology is simply, well, simplistic. We need to discuss all of the levers that they can pull to change the way their organizations consider, enable, incent, and interact with customers, employees, and partners.

To succeed in transforming an organization, leaders must change and communicate what is valued and how people are rewarded for applying those values while attaining stated goals and objectives. We must show those leaders that modifying organizational values to include (or increase) the importance of people to the business can lead to tangible increases in revenue and decreases in operating cost. The benefits statement does not need to be presented as an ROI analysis; anecdotal evidence from efforts within the organization, or from other entities, should suffice. And, yes, technology should be presented as an enabler of both the change effort itself and the new value system guiding the organization.

And one more thing. This movement, however we choose to label and describe it, is NOT a revolution. Senior leaders fear and shun revolutions. So avoid using that word when selling the vision. We are not advocating the overthrow of existing enterprise organizational or IT systems. Instead, we seek to convincingly demonstrate that augmenting the existing ways of conducting and managing business with a complementary, people-centric approach can yield substantial benefits to those organizations who do so. Do not preach revolution; instead, suggest specific actions that leaders can take to better connect people in and outside of their organization and show them the kinds of results that doing so can produce.