How LinkedIn is taking HR to the next level

The social network for professionals has already shaken up the way professionals are hired. Its ambitions go far beyond that. As the Economist published in the article Workers of the world, log in, they are limited only by the size of the world’s labour market. Its chief executive, Jeff Weiner, envisions what he calls a vast “economic graph”, connecting people seeking or starting work or wanting more from their careers. That implies an eventual membership of 3 billion—Mr Weiner’s estimate of the global labour force. In other words, LinkedIn wants to change not only the business of recruiting, but also the operation of labour markets and, with that, the efficiency of economies.

Since then LinkedIn has spread far beyond Silicon Valley. It is an online contact book, curriculum vitae and publishing platform for anyone wanting to make their way in the world of work. Its membership has almost trebled in the past three years, to 350m; two-thirds of them live outside America. Most are professionals, mainly graduates, neither at the apex of the corporate pyramid nor at its base. “It’s a presence in your life that wasn’t there a few years ago,” says a member who works for a firm of accountants. “You can’t walk into a room without everyone having looked everyone else up on LinkedIn.”

Recruitment

Recruiters are LinkedIn’s main source of revenue. They pay for licences to trawl for likely job candidates and to e-mail them about vacancies, as well as for placing advertisements on the site.

LinkedIn has made it easier for companies to identify such people themselves, rather than rely on recruitment agencies. In that sense, it represents a challenge to the agencies. Steven Baert, head of human resources at Novartis, a pharmaceuticals firm, says he hired “at least 250 people through LinkedIn last year when we might have used executive search in the past.”

The agencies have not been put out of business, but they have to do more than just compile a list of names, which in-house recruiters can now do for themselves. Agencies will still be used in the later stages of hiring—working out who is likely to fit in, for instance. Since LinkedIn greatly increases the number of potential candidates, there also is more sifting to be done. Some recruiters say they are spending as much on agencies as they used to.

For the top jobs, LinkedIn is still too public. Denizens of the executive suites often expect a discreet tap on the shoulder from a bespoke headhunting firm. That is why Korn/Ferry, one of the biggest headhunting firms, reported record revenues and profits last year.

Connecting professionals

It is true that LinkedIn makes it easier to lose people as well as to find them, because they are on permanent display to competitors and headhunters. But companies see this glass as half full, not half empty—and, anyway, their employees have joined in large numbers whether they like it or not. Mr Giraud says that when he ran Capgemini’s business-process outsourcing unit he encouraged all his 15,000 staff to join. “I thought it would be fantastic to have a nice profile…to make sure our business partners had a clear view of who we were.”

Companies can also see how they measure up against others trying to hire the same people. They can do so using LinkedIn in combination with other sites such as Glassdoor, where people anonymously rate the places where they work or have been interviewed. We can this a “sales and marketing process”, in which companies treat their reputations as employers like brands. They can track how many staff have quit to join the competition, as well as how many are coming the other way. LinkedIn members can “follow” companies they do not work for, another loose indicator of potential interest in a job.

As LinkedIn attracts more members in more countries and industries, its data will become richer. Put another way, the lines in Mr Weiner’s graph will become more numerous—and more useful. He thinks that if you trace the connections between workers, companies and colleges, and if you map people’s jobs, qualifications and skills and plot these against employers’ demands, you will end up with a step-change improvement in information about labour markets: big data for the world of work.

The world’s labour exchange

And that, in principle, should help labour markets work more smoothly, potentially reducing Europe’s youth unemployment rate, for example; or matching some of America’s 20m underemployed with its 4.7m vacancies; or helping the millions of Chinese expected to migrate from the countryside to cities to find work.

Such hopes are remarkably ambitious. They amount to a gargantuan exercise in eradicating the mismatch between the skills people have and those employers want, or between the places jobs are on offer and those where people live.

It is hard to know what its eventual effect might be. Even if Mr Weiner’s grand vision were realised, it could not cure global unemployment on its own, though richer data ought to make a difference. In explaining high unemployment rates in Western economies, many economists would put more weight on weak aggregate demand than on a mismatch of location or skills.

It is even difficult to quantify the impact of LinkedIn on labour markets so far. In theory, making it easier for people to find better jobs could affect the rate of job turnover within firms: recruiters say they have noticed little impact, and that other factors (such as the economic cycle)—seem to matter more. But no one really knows.

Borja Burguillos

FOOTBALL’S DIGITAL TRANSFORMATION: Growth opportunities for football clubs in the digital age

I’m writing this post because I’m pretty interested in the Sport Digital Transformation and especially in Football (soccer). I was going through few reports and specialized articles and I found and exquisite report “Football’s digital transformation” from PwC Sports Business Advisory, International Football Arena and Exozet. I really recommend this analysis because it is a most real picture about what I think is going to happens in the football industry coming years.

Football is special, that much is clear. It is indeed the beautiful game, and its appeal is unrivalled and universal. Yet, in the space of only a few brief years, the extent to which football fans now engage with football has changed significantly. The most notable aspect of this evolution is the rapidly increasing use of social media. The digital transformation – and the technology that fuels it – has enabled fans to interact with their club way beyond the 90 minutes of the actual matches themselves. Indeed, digital ensures that the match never ends. While the fans’ desire for their team to win remains undimmed, digital has now taken centre stage and many fans expect their club to deliver an appealing and connected experience which meets their increasing demand for year-round engagement with the teams they support.

The future is now. The underlying potential of recent digital developments has prompted us to take a closer look at the future transformation of the football business in the digital age. Since digital will continue to drive change at an unprecedented rate, this publication cannot claim to provide a comprehensive overview of the digital revolution that is transforming football. Instead, we aim to reflect on a number of distinct yet intertwined areas and highlight their potential impact on the way football operations are run today.

DIGITAL ECOSYSTEM: A digitally integrated ecosystem is the answer to growing expectations for personalised and hyper-targeted content.

• Fans’ expectations will shift from content range to contextual relevance, delivered as and when they desire
• A digitally integrated ecosystem across business functions is required for a holistic view of each individual fan
• Adoption of a data culture within a club’s organisation is key to maintaining a competitive edge in the age of highly demanding digital natives

AN INTEGRATED APPROACH TO DATA ANALYSIS PROVIDES A HOLISTIC FAN VIEW WHICH WILL PERSONALISE FAN ENGAGEMENT

Football clubs have one unique attribute that places them in a league of their own. They have fans, and fans are not just consumers. The degree of loyalty implicit in being a fan is a tremendous asset to a club, as it increases the number, frequency and intensity of interactions. By leveraging this relationship, clubs have a unique opportunity to gather information on each and every fan. The potential depth and detail of the information they can gather is enormous. Top-flight clubs have incorporated centralised data-analysis solutions consolidating data across their various platforms. They have already started generating a holistic view of their fan base.

Leveraging the wealth of profile information they gather, they are in a position to analyse and cluster their fans in such a multifaceted way as to offer increasingly targeted content and increasingly relevant purchase offers and promotions. This significantly enhances the user experience as it enables fans to get what they want, when and where they want it.

In the years ahead, we believe that as the new generation of digital natives takes over, a completely personalised user experience will gradually become a natural expectation.

“Hyper-targeting” will become the new norm for fan engagement: fans will have customised access to the official club application with special content display on their favourite stars, merchandise wish-lists and an interest-based, categorised news section. Looking beyond sports, Netflix – the online provider of movies and shows – provides a good example: the company adapts and tailors its Web pages to each of its customers according to household characteristics, demographics and interests.

For sports, too, we expect technology to converge across all club functions to a point where the content on clubs’ platforms will be intelligently and seamlessly tailored for every fan. Digital will become the “brain” that enables clubs to cut across the growing oceans of content and commerce opportunities by bringing in a wave of “context”, thus creating content that truly resonates with fans.

Borja Burguillos

The importance of Emotional Intelligence in Human Resources

What is Emotional Intelligence?

Emotional intelligence refers to having the ability to recognize and understand emotions and their impact on behavior and attitudes. Those who have a high degree of emotional intelligence are in tune with both their own emotions and the emotions of other people with whom they come in contact.

What Does Emotional Intelligence Have to Do With Business?

Emotional intelligence involves being sensitive to and perceptive of other people’s emotions, and having the ability to intuitively facilitate improved performance based on this knowledge. The modern workplace is characterized by open communication, team work, and a mutual respect among employees and their supervisors. Possessing emotional intelligence allows managers to better understand and motivate people they supervise.

Emotional intelligence bears an important impact on self-development of the manager and his leadership qualities. Practicing activities that support EI behavior illuminates positive effects that can be observed and measured by higher productivity. Its impact is visible in building positive relations and gaining emotional commitment of employees. At a higher level this strengthens organizational culture, sharpens its resilience and stretches its flexibility, both in the long run lead to greater competitive advantage in the market. Empathic communication between CEOs and employees develops a culture of trust that increases synergy among team members. Synergy stimulates employees’ creativity, which is essential in developing new solutions and forming innovative responds to the increasingly complex demands of learning society.

Individuals who come from the old school philosophy of management by intimidation often find it challenging to adapt their management style to the demands of today’s workers. In the modern business environment, authoritarian managers are much less likely to be successful for the long term than those who utilize a democratic style of management. If you want to succeed in the business world now and in the future, it’s important that you understand the role of emotional intelligence in business today.

Management and Emotional Intelligence

Managers who possess emotional intelligence approach supervisory responsibilities from a different perspective than authoritarian managers. They understand the importance of communicating effectively with staff members, and of treating each employee with respect. Those who want to be effective 21st century managers are well served by developing a deeper understanding of the concept of emotional intelligence and applying it to their management strategies.

Leadership and Emotional Intelligence

Managers who have outstanding leadership qualities tend to possess emotional intelligence. It’s important to realize that leadership isn’t an inherent part of being in a position of authority. Leadership is something that employees bestow upon the most effective managers, and is reserved for individuals with high standards of integrity and outstanding communication skills.

An individual who is in tune with his or her own emotions is much more likely to be able to understand and empathize with the emotions that impact the attitudes and behaviors of others. This is why emotional importance is so valuable for managers. It’s essential for managers who want to be viewed as leaders to remember that actions speak louder than words. This is something that individuals who possess a high degree of emotional intelligence seem to inherently understand.

Supervisors who take the time to get to know and really listen to their employees are utilizing emotional intelligence as a management strategy, whether or not they realize they are doing so. Most employees respond best to managers who treat them as individuals who deserve respect. When you take the time to focus on an employees’ needs and make yourself accessible to them, that’s exactly what you’re doing.

What is the Role of Emotional Intelligence in Business Today and in the Future?

It’s likely that emotional intelligence is going to continue to become even more important in the business world in the future than it is today. As the baby boomer population approaches retirement age, companies are going to find themselves dealing with labor shortages the likes of which have never been seen before.

In an economy characterized by scarce labor, it’s going to become increasingly important to hold on to the good employees. At the same time, competition for the best employees is going to become even more fierce, and good workers who feel they aren’t treated fairly at work will have an easy time finding employment elsewhere.

The best way to hold on to the employees that you want to keep is to incorporate emotional intelligence into your personal and organizational management philosophy. Managers and business owners can’t let themselves lose sight of the fact that their employees are people, with real lives and emotions that impact how they think, feel, and act. Managers with emotional intelligence understand that their staff members are people first and workers second.

Borja Burguillos

Why Total Rewards?

Total Rewards can be defined as “All of the tools available to the employer that may be used to attract, motivate and retain employees. Total rewards include everything the employee perceives to be of value resulting from the employment relationship”.

There are five elements of total rewards, each of which includes programs, practices, elements and dimensions that collectively define an organization’s strategy to attract, motivate and retain employees. These elements are:

• Compensation
• Benefits
• Work-Life
• Performance and Recognition
• Development and Career Opportunities

The elements represent the “tool kit” from which an organization chooses to offer and align a value for both the organization and the employee. The elements are not mutually exclusive. Total rewards strategy involves the art of combining the five key elements into tailored packages designed to achieve optimal engagement. An effective total rewards strategy results in satisfied, engaged and productive employees, who create desired business performance and results.

In a globalize world where local laws and regulations change constantly the impact of C&B becomes more important, so the corporate strategies and remuneration systems need to be adapted to different industries and countries in order to provide the best social and fiscal optimization possible for both the company and the employees.

What do you do in a Total Rewards role?

• Never stop learning.
• Never do exactly the same thing twice (no, not even for your annual processes such as salary reviews or bonus pay-outs).
• Creativity to design and implement solutions that will truly support your company and its employees
• Negotiate with providers to get the best conditions and prices possible for Social Benefits (Health & Life Insurance…) to all employees of the organization.
• Learn and know about Tax & Regulations in each country in order to apply the benefits in the best way for the company and employees.
• Get involved in many aspects of running the business, and through it, get real exposure to the organization, with Finance, Sales and Marketing obviously, but also with the business… and the rest of HR.
• Simulations and multiple scenarios analyses, and the legal, cost and fiscal implications of your decisions.
• At the forefront of the organization, in good times (distributing bonuses and introducing new rewards and recognition practices) and in bad times too (figuring out cost control mechanisms and redundancy plans).
• Interact with people at all levels of the organization, from the junior staff through to line managers, to top Executives and the Board members.

Borja Burguillos

Changing the HR Game: How Gamification is disrupting Human Resources

Following my previous posts “Why Digital is radically disrupting HR?” and “Digital Will Give Power to the People” about how digital is changing the human relations today I would like to write about how gamification will change labor relations as we know until now.Since the first Nintendo sets arrived in homes in the mid-1980s, the workforce has become increasingly populated with employees who have grown up with computer games. For many people entering the workforce now, such games are more than just an occasional pastime. Games form the very backdrop of their lives. These individuals do much of their socializing through computer games and use the vocabulary of gaming even in conversations that have nothing to do with games.

What is Gamification?

With gaming concepts and terminology gaining prominence among young employees, it’s probably not surprising that companies eager to attract, engage, incentivize and retain members of this generation have been taking games seriously. Gaming concepts have begun working their way into key HR processes in two distinct forms, often called serious games and gamification. Whereas serious games are actual games used in the workplace whose purpose is beyond merely providing entertainment, gamification is the weaving of game mechanics such as virtual currency, leaderboards (boards that display leaders in a competition), badges, or leveling up (progression to the next level in a game) into existing work activities or processes without the development of a full-fledged actual game.

You can find more information in the report Trends Reshaping the Future of HR: Digital Radically Disrupts HR by Accenture Digital.

Why now?

The idea that gaming elements can be useful in the workplace is not new. For example, sales groups have long used leaderboards and other gamification-like mechanisms to foster friendly competition. And organizations as serious as the military have used war games and their civilian equivalents to train soldiers and leaders. What is new is that more and more workers are familiar with and enjoy gaming.

In addition, the commercial platforms that have industrialized the development of games and gamification are more widely available to organizations. These factors have made it much more affordable for enterprises to create serious games and to incorporate gamification into business processes. For example, some serious games leverage general which provide graphics, game editors and artificial intelligence functions to achieve high levels of sophistication and create simulated characters.

Likewise, vendors such as Bunchball and Badgeville have created cloud-based gamification engines, which deliver key gamification functions as web services. This greatly reduces the cost and complexity of incorporating gamification into enterprise web applications. These developments have given rise to a varied set of applications that have transformed various HR processes.

What is next? The road ahead

Gamification of HR is still in its early days. Still, games and gamification have begun to alter the way HR professionals and employees experience various HR processes. Some of the changes are incremental. Others could prove disruptive, such as use of gamification to replace occasional, private top-down feedback with real-time, public 360-degree feedback.We’re just beginning to understand which game-related transformations are most beneficial to organizations and how to estimate the degree to which workers may embrace these changes. As games and gamification—along with insights into how they can help organizations generate valuable business outcomes—continue to improve, this trend will likely become more important.

We may never get to the point where the experience of going to work is as exciting and engaging as a great game. But high-performance enterprises will likely push the boundaries to see just how close they can get.

Borja Burguillos

Digital Will Give Power to the People

As I wrote in my post Why Digital is radically disrupting HR? One of the main points of digital disruption is how will give power to the people.

As Accenture Digital says in the report Trends Reshaping the Future of HR: Digital Radically Disrupts HR, as the digital technology advances, it’s helping companies embed talent management into the fabric of everyday business and into employees’ work and personal lives. Technology advances are enabling HR to put the “human” back into human resources, and helping give people management back to the people.

We’re not talking about the traditional notion of self-service here, or the ability for employees to perform mundane administrative HR activities themselves, like updating their address or viewing a paycheck without HR’s intervention. Instead, we’re talking about involving employees and managers in high-impact talent processes—including recruiting, hiring, succession planning, learning and shaping career paths. All this will happen thanks to an emerging class of social and market-based tools that will let employees manage almost every aspect of their professional lives digitally.

Talent management practices and data are becoming more integrated with general business practices and business data to drive strategic decisions about talent. As this development unfolds, line managers will be more likely to engage in critical talent processes like workforce planning—using data to determine gaps between workforce projections and available supply of staff, and modeling different scenarios that could be used to close any gaps. In addition, managers and employees will shoulder more talent management responsibilities.

Mobility applications designed for tablets and smart phones become ever more user-friendly, and as intuitive user interfaces finally permeate talent management software following the success of consumer-oriented technologies, employees will be more inclined to adopt IT-enabled talent processes as well.

Mobile HR and talent management applications have well permeated recruiting, time and attendance, employee relations, and learning areas, mobile applications are being developed and rapidly adopted for nearly every process to make it easier to perform these activities anywhere, anytime, and on any device—including talent analytics, performance management, and leadership development. Technology companies like Oracle or SAP are now designing apps with a “mobile first” approach, promising to make mobility far easier than ever before for nearly every talent and HR practice.

The infusion of all things social into people management, and the infusion of principles derived from gaming as well, will further weave talent management into the very fabric of employees’ everyday work lives. Already, employees can learn together through corporate versions of Facebook or YouTube in addition to centrally mandated training curriculum. Companies can also use technology to draw on an employee’s social networks to target and recruit new hires with the right skills for an open position. Moreover, workers can use social media to advise career counselors how best to counsel them, instead of having HR provide this advice. Sites like Mixtent, GILD, and TrueOffice can also help companies transform everything from recruiting to performance appraisals to learning into a game.

It’s expected more innovations to keep arising in this space, as start-ups take off and as talent management software companies continue to layer social and gaming functionality onto their existing offerings. Eventually, new social, gaming and mobile capabilities may replace traditional talent management practices, as well as time-honored HR tools such as employee surveys and e-mail communications.

Digital may even shift the locus of information and decision making from a central group like HR or a small group of top leaders to employees themselves. Social media could take HR as a middleman out of the picture, for example, by enabling the following:

• Managers to analyze Big Data from sources like blogs, social networking sites and other online forums to determine what employees need and want and to find new employees.
• Benefits choices to be determined by consensus through analysis of corporate social media sites revealing which benefits are important to which employee populations.
• Employees to negotiate scheduling changes with one another on shift-swapping sites.
• Talent exchanges where workers and hiring managers can find each other without the help of an intermediary through matching of open opportunities with an analysis of individuals’ skills or past performance and interest profiles.
• Workers to define their own career paths by seeing each other’s customized career paths (through sites that mine transfer and promotion histories) and network with them.

In this future, the administrative burden that HR departments currently carry may lighten up considerably. Not only will technology continue to automate transactional HR processes like benefits administration, but it will continue to enable more strategic practices like many of those described above to be performed by employees. Technology could then free HR professionals so they can focus on other work such as analytics. As a result, the group primarily responsible for HR processes and transactions—whether a shared services organization, a business services group or an outsourcing partner—may shrink to a fraction of what it is today.

Employees may even manage their own data, and HR data and transactions may become the sole responsibility of the business with the support of IT. What’s more, HR may shift its mission and mandate to concentrate on building a culture where people can use talent management tools to enhance their own job performance. New roles and responsibilities for HR professionals may ensue accordingly.

Borja Burguillos

How big data analytics is changing HR

The Big Data revolution is here and it came to stay with us forever. I was reading Bernard Marr, who is a globally recognized expert in strategy and big data and I realize how big data is changing people interaction around the world and therefore how we manage people in business environment.

Employers have been using analytics for some time now to understand what makes their staff tick, using metrics such as staff engagement to understand what drives productivity and innovation in the workplace. A clear example is Google and other tech-digital companies.

The Big Data revolution has accelerated this practice as well as taken it in new directions. Companies now have more data than ever on their employees, and more tools and technology with which to analyze this data.

Retaining staff (or reducing “churn”) is often a key priority for high performance businesses. Top talent is always in demand, and assuring that it won’t be poached by competitors is always a challenge.

To this end, Forbes carried out a study in 2013 which found a strong link between the rate of pay required to keep a member of staff, and their level of productivity. Companies have leveraged these insights to come up with algorithms which predict when they may be in danger of losing a key member of staff – allowing them to step in and intervene.

The fact is that in the age of Big Data analysis, measuring the efficiency of staff, and identifying the factors that may be affecting it, is a relatively simple process, with the amount of data that employers are now capable of collecting from their employees, and the advanced tools which are available for analysis.

The benefits to a company which is able to accurately identify why one particular customer sales representative outperforms his or her colleagues are obvious. However if implemented in a sloppy or discriminatory fashion, they could also lead to serious problems with staff trust, and the level of intrusion into their private lives that they feel.

With many companies now routinely scanning contents of emails and monitoring the activities of their staff on social media, it is clear that some may feel concerned.

As Bernard Marr said, it may sound Orwellian, but how well it is received by staff will probably entirely depend on the way it is used. Will employees resent this level of analysis of their day-to-day activities? Some certainly will. But it will depend entirely on how it is implemented. In short, there are far more useful, and less provocative, uses for employee data collection and analysis, than enforcing discipline over who takes the most bathroom breaks.

It is used as a way to gain an overview of the company as a whole, and how it interacts to get the job done, it will probably generate far less complaints and far more useful insights. And, if the end result is a decision by their employer to give more paid holidays, provide free food, and encourage them to work less hours, it is unlikely they will get many complaints.

Borja Burguillos

Do you want to run a digital business? Gamification is a must

Gamification has become an essential part of any digital business strategy as a way of digitally motivating people and overcoming barriers of scale, time, distance, connectedness and cost.

As Mr. Burke from Gartner Inc. said and I totally agree “Game mechanics and design have been used to engage and motivate people to achieve their goals throughout recorded history”. “Gamification is about rethinking motivation in a world where we are more often connected digitally than physically. It is about building motivation into a digitally connected world. And we are just getting started in this journey. Gamification will continue to develop for many years to come.”

Gamification has tremendous potential to motivate people, but right now most organizations aren’t getting it right. The road to gamification success is full of pitfalls, and many companies don’t understand how critical player motivation is to success.

What organizations need to understand?

1. Gamification is about motivating people to achieve their own goals, not the organization’s goals.
2. Use gamification to empower their customers, employees and communities to reach their goals.
3. Gamification talks about share goals. If a business can identify the goals it shares with its audience or provide its audience with goals that are meaningful to them, then it can leverage gamification to motivate these players to meet those goals, and the company will achieve its business outcomes as a consequence.
4. Business leaders must understand the opportunities to leverage gamification to digitally motivate customers, employees and communities.
5. A digital engagement strategy challenges business leaders to go beyond interactions; it challenges IT leaders to go beyond transactions. Rather, it requires the design and delivery of digital experiences.

The opportunity and the future

The opportunity is to focus on engaging people at an emotional level. One way to motivate people is to present them with practical challenges, encourage them as they progress through levels, and get them emotionally engaged to achieve their very best. Gamification does just that.

At its core, gamification is about engaging people on an emotional level and motivating them to achieve their goals. However, most organizations rely primarily on transactional engagement strategies in their interactions, for example by focusing on employees’ concern to earn a living and to meet the minimal expectations of the employer.

Organizations need to shift focus to emotional engagement if they want to truly motivate people.

Those organizations that are more aggressively adopting gamification already have multiple gamified solutions in place that support different business areas, address different target audiences, and achieve a wide range of business objectives.

Borja Burguillos

Why gamification will change the workplace and work relations?

We can define gamification as the use of game mechanics and game design techniques in non-game contexts to design behaviors, develop skills or to engage people in innovation. Strategic planners, HR, business managers and IT leaders must begin to understand the long-term impact of gamification and identify opportunities to leverage gamification in their organizations today.

Gamification started as a trend about just few years ago, first appearing on Google Trends in September 2010. Mobile, cloud, social and location-based services have played a huge part in the rise of gamification to date. By 2020, the maturation of additional emerging technologies, including gesture control, head-mounted displays and augmented reality, will further enable the use of gamification in many domains by seamlessly integrating technology into our daily lives (see “Hype Cycle for Human-Computer Interaction, 2012“).

What are the key Challenges?

Employee engagement is the key paradigm of the XXI century organizations.

• Organizations are challenged to increase engagement with employees and improve performance.
• Human potential is unrealized, because higher education is limited to those people with geographic and/or economic advantages.
• Organizations are challenged to effectively engage employees and customers in innovation.
• Consumers are overwhelmed by many disconnected loyalty programs that leverage uninspiring extrinsic rewards.

Future scenarios

Based on the Gartner research we can project future scenarios where gamification, combined with other emerging trends and technologies, may result in significant change on different areas of business and society, including:

1. An explosion of innovation
2. The design of employee performance
3. The globalization of advanced education
4. The gamification of personal development
5. The emergence of customer engagement platforms

Let me pay attention on the first 2 points exposed.

• An Explosion of Innovation. In the future, gamification will play a key role in innovation management, both internal and external to organizations, by engaging a target audience and leveraging the collective intelligence of the crowd to solicit ideas, develop those ideas and predict success using prediction market mechanisms. Innovation management is a natural domain for gamification, and the increasing sophistication of innovation game design, along with broader target audience participation and a greater number of organizations using this approach, will result in an explosion of gamified, crowdsourced innovations by 2020.
• The Design of Employee Performance. Gamification uses the currencies of social capital, self-esteem and fun overtaking extrinsic rewards as motivations for improved performance. Also, competitive games will play less of a role in employee performance being displaced by collaborative games that are designed to maximize business outcomes, rather than rewarding a few top performers. Employee performance feedback will move from being top-down and periodic (often annual) to being social, peer-based and real-time. Game mechanics are being applied differently to different types of work to drive different types of behaviors:

Current top-down, command and control management approaches are being replaced by game design skills. Successful managers in the future will be great designers of games that engage employees through either scripted or emergent games that are designed to achieve specific business outcomes.

Best Practice: While employee behavior design is an attractive idea, organizations must approach employee-facing gamification applications with caution. Employees must not feel manipulated or intimidated, but enabled to achieve their goals. Organizations should seek to clearly define the organizational objectives of employee-facing applications, understand employee objectives and focus on where the two overlap. Applications should be people-centric and enable employees to be successful in achieving their objectives — where they are aligned with organizational objectives.

So what?

• Organizations must understand the potential of gamification to design behaviors, develop skills, enable innovation and begin to deploy low-risk applications.
• Gamification project managers must engage game designers or organizations with experience in gamification in early implementations.
• Strategic planners must learn how gamification is being applied in their industries and how their organizations can leverage gamification to engage employees or customers.
• Business managers must assess the impact of the longer-term discontinuities that gamification will cause and begin to position their organizations to capitalize on the trend.

Borja Burguillos