Why Tomorrow’s Customers Won’t Shop at Today’s Retailers

Why Tomorrow’s Customers Won’t Shop at Today’s Retailers

Oct 18, 2017: Weekly Curated Thought-Sharing on Digital Disruption, Applied Neuroscience and Other Interesting Related Matters.

By Dan Clay

Curated by Helena M. Herrero Lamuedra

Meet Dawn. Her T-shirt is connected to the internet, and her tattoo unlocks her car door. She’s never gone shopping, but she gets a package on her doorstep every week. She’s never been lost or late, and she’s never once waited in line. She never goes anywhere without visiting in VR first, and she doesn’t buy anything that wasn’t made just for her.

Dawn is an average 25-year-old in the not-so-distant future. She craves mobility, flexibility, and uniqueness; she spends more on experience than she does on products; she demands speed, transparency, and control; and she has enough choice to avoid any company that doesn’t give her what she wants. We’re in the midst of remarkable change not seen since the Industrial Revolution, and a noticeable gap is growing between what Dawn wants and what traditional retailers provide.

In 2005 Amazon launched free two-day shipping. In 2014 it launched free two-hour shipping. It’s hard to get faster than “Now,” and once immediacy becomes table stakes, competition will move to prediction. By intelligently applying data from our connected devices, smart digital assistants will be able to deliver products before we even acknowledge the need: Imagine a pharmacy that knows you’re about to get sick; an electronics retailer that knows you forgot your charger; an online merchant that knows you’re out of toilet paper; and a subscription service that knows you have a wedding coming up, have a little extra in your bank account, and that you look good in blue. Near-perfect predictions are the future of retail, and it’s up to CX and UX designers to ensure that they are greeted as miraculous time-savers rather than creepy intrusions.

Every product is personalized

While consumers are increasingly wary about how much of their personal data is being tracked, they’re also increasingly willing to trade privacy for more tangible benefits. It then falls on companies to ensure those benefits justify the exchange. In the retail space this increasingly means perfectly tailored products and a more personally relevant experience. Etsy recently acquired an AI startup to make its search experience more relevant and tailored. HelloAva provides customers with personalized skincare product recommendations based on machine learning combined with a few texts and a selfie. Amazon, constantly at the forefront of customer needs, recently acquired a patent for a custom clothing manufacturing system.

Market to the machines

Dawn, our customer of the future, won’t need to customize all of her purchases; for many of her needs, she’ll give her intelligent, IoT-enabled agent (think Alexa with a master’s degree) personalized filters so the agent can buy on her behalf. When Siri is choosing which shoes to rent, the robot almost becomes the customer, and retailers must win over smart AI assistants before they even reach end customers. Netflix already has a team of people working on this new realm of marketing to machines. As CEO Reed Hastings quipped at this year’s Mobile World Congress, “I’m not sure if in 20 to 50 years we are going to be entertaining you, or entertaining AIs.”

Branded, immersive experiences matter more than ever

As online shopping and automation increase, physical retail spaces will have to deliver much more than just a good shopping experience to compel people to visit. This could be through added education (like the expert stylists at Nordstrom’s store without any merchandise) or heightened service personalization (like Asics on-site 3D foot mapping and gait cycle analysis) or constantly evolving entertainment (like Gentle Monster’s Seoul flagship store’s monthly changing “exhibition“).

In this context, brand is becoming more than a value proposition or signifier—it’s the essential ingredient preventing companies from becoming commoditized by an on-demand, automated world where your car picks its own motor oil. Brands have a vital responsibility to create a community for customers to belong to and believe in.

A mobile world that feels like a single channel experience

Dawn will be increasingly mobile, and she’ll expect retailers to move along with her. She may research dresses on her phone and expect the store associate to know what she’s looked at. It’s no secret that mobile shopping is continuing to grow, but retailers need to think less about developing separate strategies for their channels and more about maintaining a continuous flow with the one channel that matters: the customer channel.

WeChat, for example, China’s largest social media channel, is used for everything from online shopping and paying at supermarkets to ordering a taxi and getting flight updates, creating a seamless “single channel” experience across all interactions. Snapchat’s new Context Cards, allowing users to read location-based reviews, business information and hail rides all within the app, builds towards a similar, single channel experience.

The future promises profound change. Yet perhaps the most pressing challenge for retailers is keeping up with customers’ expectations for immediacy, personalization, innovative experiences, and the other myriad ways technological and societal changes are making Dawn the most demanding customer the retail industry has ever seen. The future is daunting, but it’s also full of opportunity, and the retailers that can anticipate the needs of the customer of the future are well-poised for success in the years to come.

Changing Company Culture Requires a Movement, Not a Mandate

Changing Company Culture Requires a Movement, Not a Mandate

Oct 9, 2017: Weekly Curated Thought-Sharing on Digital Disruption, Applied Neuroscience and Other Interesting Related Matters.

By Bryan Walker and Sarah A. Soule

Curated by Helena M. Herrero Lamuedra

Culture is like the wind. It is invisible, yet its effect can be seen and felt. When it is blowing in your direction, it makes for smooth sailing. When it is blowing against you, everything is more difficult.

For organizations seeking to become more adaptive and innovative, culture change is often the most challenging part of the transformation. Innovation demands new behaviors from leaders and employees that are often antithetical to corporate cultures, which are historically focused on operational excellence and efficiency.

But culture change can’t be achieved through top-down mandate. It lives in the collective hearts and habits of people and their shared perception of “how things are done around here.” Someone with authority can demand compliance, but they can’t dictate optimism, trust, conviction, or creativity.

We believe that the most significant change often comes through social movements, and that despite the differences between private enterprises and society, leaders can learn from how these initiators engage and mobilize the masses to institutionalize new societal norms.

Dr. Reddy’s: A Movement-Minded Case Study

One leader who understands this well is G.V. Prasad, CEO of Dr. Reddy’s, a 33-year-old global pharmaceutical company headquartered in India that produces affordable generic medication. With the company’s more than seven distinct business units operating in 27 countries and more than 20,000 employees, decision making had grown more convoluted and branches of the organization had become misaligned. Over the years, Dr. Reddy’s had built in lots of procedures, and for many good reasons. But those procedures had also slowed the company down.

Prasad sought to evolve Dr. Reddy’s culture to be nimble, innovative, and patient-centered. He knew it required a journey to align and galvanize all employees. His leadership team began with a search for purpose. Over the course of several months, the Dr. Reddy’s team worked to learn about the needs of everyone, from shop floor workers to scientists, external partners, and investors. Together they defined and distilled the purpose of the company, paring it down to four simple words that center on the patient: “Good health can’t wait.”

But instead of plastering this new slogan on motivational posters and repeating it in all-hands meetings, the leadership team began by quietly using it to start guiding their own decisions. The goal was to demonstrate this idea in action, not talk about it. Projects were selected across channels to highlight agility, innovation, and customer centricity. Product packaging was redesigned to be more user-friendly and increase adherence. A comprehensive internal data platform was developed to help Dr. Reddy’s employees be proactive with their customer requests and solve any problems in an agile way.

At this point it was time to more broadly share the stated purpose — first internally with all employees, and then externally with the world. At the internal launch event, Dr. Reddy’s employees learned about their purpose and were invited to be part of realizing it. Everyone was asked to make a personal promise about how they, in their current role, would contribute to “good health can’t wait.” The following day Dr. Reddy’s unveiled a new brand identity and website that publicly stated its purpose. Soon after, the company established two new “innovation studios” in Hyderabad and Mumbai to offer additional structural support to creativity within the company.

Prasad saw a change in the company culture right away:

After we introduced the idea of “good health can’t wait,” one of the scientists told me he developed a product in 15 days and broke every rule there was in the company. He was proudly stating that! Normally, just getting the raw materials would take him months, not to mention the rest of the process for making the medication. But he was acting on that urgency. And now he’s taking this lesson of being lean and applying it to all our procedures.

What Does a Movement Look Like?

To draw parallels between the journey of Dr. Reddy’s and a movement, we need to better understand movements.

We often think of movements as starting with a call to action. But movement research suggests that they actually start with emotion — a diffuse dissatisfaction with the status quo and a broad sense that the current institutions and power structures of the society will not address the problem. This brewing discontent turns into a movement when a voice arises that provides a positive vision and a path forward that’s within the power of the crowd.

What’s more, social movements typically start small. They begin with a group of passionate enthusiasts who deliver a few modest wins. While these wins are small, they’re powerful in demonstrating efficacy to nonparticipants, and they help the movement gain steam. The movement really gathers force and scale once this group successfully co-opts existing networks and influencers. Eventually, in successful movements, leaders leverage their momentum and influence to institutionalize the change in the formal power structures and rules of society.

Practices for Leading a Cultural Movement

Leaders should not be too quick or simplistic in their translation of social movement dynamics into change management plans. That said, leaders can learn a lot from the practices of skillful movement makers.

Frame the issue. Successful leaders of movements are often masters of framing situations in terms that stir emotion and incite action. Framing can also apply social pressure to conform. For example, “Secondhand smoking kills. So shame on you for smoking around others.”

In terms of organizational culture change, simply explaining the need for change won’t cut it. Creating a sense of urgency is helpful, but can be short-lived. To harness people’s full, lasting commitment, they must feel a deep desire, and even responsibility, to change. A leader can do this by framing change within the organization’s purpose — the “why we exist” question. A good organizational purpose calls for the pursuit of greatness in service of others. It asks employees to be driven by more than personal gain. It gives meaning to work, conjures individual emotion, and incites collective action. Prasad framed Dr. Reddy’s transformation as the pursuit of “good health can’t wait.”

Demonstrate quick wins. Movement makers are very good at recognizing the power of celebrating small wins. Research has shown that demonstrating efficacy is one way that movements bring in people who are sympathetic but not yet mobilized to join.

When it comes to organizational culture change, leaders too often fall into the trap of declaring the culture shifts they hope to see. Instead, they need to spotlight examples of actions they hope to see more of within the culture. Sometimes, these examples already exist within the culture, but at a limited scale. Other times, they need to be created. When Prasad and his leadership team launched projects across key divisions, those projects served to demonstrate the efficacy of a nimble, innovative, and customer-centered way of working and of how pursuit of purpose could deliver outcomes the business cared about. Once these projects were far enough along, the Dr. Reddy’s leadership used them to help communicate their purpose and culture change ambitions.

Harness networks. Effective movement makers are extremely good at building coalitions, bridging disparate groups to form a larger and more diverse network that shares a common purpose. And effective movement makers know how to activate existing networks for their purposes. They also use social networks to spread ideas and broadcast their wins.

Leadership at Dr. Reddy’s did not hide in a back room and come up with their purpose. Over the course of several months, people from across the organization were engaged in the process. The approach was built on the belief that people are more apt to support what they have a stake in creating. And during the organization-wide launch event, Prasad invited all employees to make the purpose their own by defining how they personally would help deliver “good health can’t wait.”

Create safe havens. Movement makers are experts at creating or identifying spaces within which movement members can craft strategy and discuss tactics. These are spaces where the rules of engagement and behaviors of activists are different from those of the dominant culture. They’re microcosms of what the movement hopes will become the future.

The dominant culture and structure of today’s organizations are perfectly designed to produce their current behaviors and outcomes, regardless of whether those outcomes are the ones you want. If your hope is for individuals to act differently, it helps to change their surrounding conditions to be more supportive of the new behaviors. Outposts and labs are often built as new environments that serve as a microcosm for change. Dr. Reddy’s established two innovation labs to explore the future of medicine and create a space where it’s easier for people to embrace new beliefs and perform new behaviors.

Embrace symbols. Movement makers are experts at constructing and deploying symbols and costumes that simultaneously create a feeling of solidarity and demarcate who they are and what they stand for to the outside world. Symbols and costumes of solidarity help define the boundary between “us” and “them” for movements. These symbols can be as simple as a T-shirt, bumper sticker, or button supporting a general cause.

Dr. Reddy’s linked its change in culture and purpose with a new corporate brand identity. Internally and externally, the act reinforced a message of unity and commitment. The entire company stands together in pursuit of this purpose.

The Challenge to Leadership

Unlike a movement maker, an enterprise leader is often in a position of authority. They can mandate changes to the organization — and at times they should. However, when it comes to culture change, they should do so sparingly. It’s easy to overuse one’s authority in the hopes of accelerating transformation.

It’s also easy for an enterprise leader to shy away from organizational friction. Harmony is generally a preferred state, after all. And the success of an organizational transition is often judged by its seamlessness.

In a movements-based approach to change, a moderate amount of friction is positive. A complete absence of friction probably means that little is actually changing. Look for the places where the movement faces resistance and experiences friction. They often indicate where the dominant organizational design and culture may need to evolve.

And remember that culture change only happens when people take action. So start there. While articulating a mission and changing company structures are important, it’s often a more successful approach to tackle those sorts of issues after you’ve been able to show people the change you want to see.

Invest in Your Brain

Invest in Your Brain

Oct 2, 2017: Weekly Curated Thought-Sharing on Digital Disruption, Applied Neuroscience and Other Interesting Related Matters.

By Jeremy Hughes

Curated by Helena M. Herrero Lamuedra

The world’s population is ageing. Improvements in healthcare in the past century have meant people are living longer, but this has also resulted in an increase in the number of people with conditions like dementia. Projections indicate that the number of people with dementia will only continue to grow.

Despite this, global diagnosis rates are low. People are receiving sub-standard or no care and stigma in many communities remains rife.

But dementia is an issue that can no longer be overlooked.

This World Alzheimer’s Day, the Global Alzheimer’s and Dementia Action Alliance (GADAA) is urging people to recognize dementia as one of the biggest global health crises of the 21st century. Here’s why…

1. The world’s economy is set to lose a trillion dollars in 2018, rising to $2 trillion by 2030 unless dementia is tackled.

That’s a cost greater than the GDP of all but the 15 richest economies in the world. If global dementia costs were a country, it would be the 16th largest, in-between Indonesia and Mexico.

Dementia already exceeds the market value of the world largest companies such as Apple (US $742 billion) and Google (US $368 billion). Eighty per cent of these costs account for the unpaid and formal care for people living with dementia, two-thirds of which is delivered by women.

2. Dementia affects almost 50 million people worldwide, with a new case of dementia occurring somewhere in the world every 3 seconds.

Worryingly, ageing populations – especially in low to middle income countries (LMICs) – are set to exacerbate prevalence rates. The potential ramifications of this are huge. More than half of people with dementia worldwide (58%) live in LMICs – and the number in some regions is expected to increase fivefold by 2050. The number of people living with dementia in high income countries is also expected to double by 2050.

Despite this, many countries are unprepared for financing long-term care. As social changes in LMICs mean less family members are able to provide care, the urgent need for social care will shift to the formal sector.

3. As few as one in 10 individuals receives a diagnosis for dementia in low and middle income countries, and less than 50% are diagnosed in high income countries.

Globally there is a persistent lack of understanding that dementia is a medical condition and not a normal part of ageing. People living with dementia all over the world desperately need access to a medical practitioner who can provide a diagnosis and help to plan necessary support.

Risk reduction strategies and earlier diagnosis of dementia could save government expenditure by reducing the high cost of emergency and avoidable health interventions, improving care, and by increasing the effectiveness of social, community and other care services.

4. Two out of every three people globally believe there is little or no understanding of dementia in their countries.

People living with dementia and their families frequently face stigma and discrimination – and in some parts of the world can even face violence. Dementia can also have a negative impact on employability – younger people with dementia have reported being made redundant or unable to find work due to discrimination or lack of understanding. This can have an impact on employment rates and social welfare benefits.

5. Dementia is in the top 10 causes of death for women worldwide.

The World Health Organisation lists dementia as one of the top 10 causes of death for women and it is the top cause of death for females in the UK. Research shows that women not only face a greater prevalence of the condition, but also fulfill the majority of care support and face the greatest stigma.

But so far only 12 countries have taken into consideration the needs of women in their commitments and only 29 countries have a national dementia plan. Around the world people remain trapped in a perennial struggle to access the diagnosis, care and support that they desperately need – and for women the challenge is even greater.

Global leaders have a responsibility to meet the targets of the World Health Organization Global Dementia Action Plan. Governments around the world must urgently recognize dementia as a medical condition that needs action, and unite in ensuring better diagnosis, care, research and awareness through the development and implementation of national dementia plans in every country in the world.

International civil society also has a role to play in addressing the stigma and delivering change for people living with dementia. We need as many voices as possible to spread the word that dementia is not a normal part of ageing, but one of the most prevalent and under-supported medical conditions the world over.

World Alzheimer’s Day is an opportunity for organizations around the world to raise awareness, highlight issues faced by people affected by dementia and demonstrate how we can overcome them to help people live well with dementia.

Mindfulness, Meditation and Adequate Sleep are definitely invaluable paths to permit the brain to rest and to rewire, enhancing nervous connections and allowing the brain circuitry to reset and not only maintain but enhance its vitality and plasticity.

The Fourth Industrial Revolution and why it’s relevant

The Fourth Industrial Revolution and why it’s relevant

Sep 25, 2017: Weekly Curated Thought-Sharing on Digital Disruption, Applied Neuroscience and Other Interesting Related Matters.

By Klaus Schwab

Curated by Helena M. Herrero Lamuedra

We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before. We do not yet know just how it will unfold, but one thing is clear: the response to it must be integrated and comprehensive, involving all stakeholders of the global polity, from the public and private sectors to academia and civil society.

The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.

There are three reasons why today’s transformations represent not merely a prolongation of the Third Industrial Revolution but rather the arrival of a Fourth and distinct one: velocity, scope, and systems impact. The speed of current breakthroughs has no historical precedent. When compared with previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace. Moreover, it is disrupting almost every industry in every country. And the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.

The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing.

Already, artificial intelligence is all around us, from self-driving cars and drones to virtual assistants and software that translate or invest. Impressive progress has been made in AI in recent years, driven by exponential increases in computing power and by the availability of vast amounts of data, from software used to discover new drugs to algorithms used to predict our cultural interests. Digital fabrication technologies, meanwhile, are interacting with the biological world on a daily basis. Engineers, designers, and architects are combining computational design, additive manufacturing, materials engineering, and synthetic biology to pioneer a symbiosis between microorganisms, our bodies, the products we consume, and even the buildings we inhabit.

Challenges and opportunities

Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world. To date, those who have gained the most from it have been consumers able to afford and access the digital world; technology has made possible new products and services that increase the efficiency and pleasure of our personal lives. Ordering a cab, booking a flight, buying a product, making a payment, listening to music, watching a film, or playing a game—any of these can now be done remotely.

In the future, technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.

At the same time, as the economists Erik Brynjolfsson and Andrew McAfee have pointed out, the revolution could yield greater inequality, particularly in its potential to disrupt labor markets. As automation substitutes for labor across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labor. On the other hand, it is also possible that the displacement of workers by technology will, in aggregate, result in a net increase in safe and rewarding jobs.

We cannot foresee at this point which scenario is likely to emerge, and history suggests that the outcome is likely to be some combination of the two. However, I am convinced of one thing—that in the future, talent, more than capital, will represent the critical factor of production. This will give rise to a job market increasingly segregated into “low-skill/low-pay” and “high-skill/high-pay” segments, which in turn will lead to an increase in social tensions.

In addition to being a key economic concern, inequality represents the greatest societal concern associated with the Fourth Industrial Revolution. The largest beneficiaries of innovation tend to be the providers of intellectual and physical capital—the innovators, shareholders, and investors—which explains the rising gap in wealth between those dependent on capital versus labor. Technology is therefore one of the main reasons why incomes have stagnated, or even decreased, for a majority of the population in high-income countries: the demand for highly skilled workers has increased while the demand for workers with less education and lower skills has decreased. The result is a job market with a strong demand at the high and low ends, but a hollowing out of the middle.

This helps explain why so many workers are disillusioned and fearful that their own real incomes and those of their children will continue to stagnate. It also helps explain why middle classes around the world are increasingly experiencing a pervasive sense of dissatisfaction and unfairness. A winner-takes-all economy that offers only limited access to the middle class is a recipe for democratic malaise and dereliction.

Discontent can also be fueled by the pervasiveness of digital technologies and the dynamics of information sharing typified by social media. More than 30 percent of the global population now uses social media platforms to connect, learn, and share information. In an ideal world, these interactions would provide an opportunity for cross-cultural understanding and cohesion. However, they can also create and propagate unrealistic expectations as to what constitutes success for an individual or a group, as well as offer opportunities for extreme ideas and ideologies to spread.

The impact on business

An underlying theme in my conversations with global CEOs and senior business executives is that the acceleration of innovation and the velocity of disruption are hard to comprehend or anticipate and that these drivers constitute a source of constant surprise, even for the best connected and most well informed. Indeed, across all industries, there is clear evidence that the technologies that underpin the Fourth Industrial Revolution are having a major impact on businesses.

On the supply side, many industries are seeing the introduction of new technologies that create entirely new ways of serving existing needs and significantly disrupt existing industry value chains. Disruption is also flowing from agile, innovative competitors who, thanks to access to global digital platforms for research, development, marketing, sales, and distribution, can oust well-established incumbents faster than ever by improving the quality, speed, or price at which value is delivered.

Major shifts on the demand side are also occurring, as growing transparency, consumer engagement, and new patterns of consumer behavior (increasingly built upon access to mobile networks and data) force companies to adapt the way they design, market, and deliver products and services.

A key trend is the development of technology-enabled platforms that combine both demand and supply to disrupt existing industry structures, such as those we see within the “sharing” or “on demand” economy. These technology platforms, rendered easy to use by the smartphone, convene people, assets, and data—thus creating entirely new ways of consuming goods and services in the process. In addition, they lower the barriers for businesses and individuals to create wealth, altering the personal and professional environments of workers. These new platform businesses are rapidly multiplying into many new services, ranging from laundry to shopping, from chores to parking, from massages to travel.

On the whole, there are four main effects that the Fourth Industrial Revolution has on business—on customer expectations, on product enhancement, on collaborative innovation, and on organizational forms. Whether consumers or businesses, customers are increasingly at the epicenter of the economy, which is all about improving how customers are served. Physical products and services, moreover, can now be enhanced with digital capabilities that increase their value. New technologies make assets more durable and resilient, while data and analytics are transforming how they are maintained. A world of customer experiences, data-based services, and asset performance through analytics, meanwhile, requires new forms of collaboration, particularly given the speed at which innovation and disruption are taking place. And the emergence of global platforms and other new business models, finally, means that talent, culture, and organizational forms will have to be rethought.

Overall, the inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on combinations of technologies (the Fourth Industrial Revolution) is forcing companies to reexamine the way they do business. The bottom line, however, is the same: business leaders and senior executives need to understand their changing environment, challenge the assumptions of their operating teams, and relentlessly and continuously innovate.

The impact on government

As the physical, digital, and biological worlds continue to converge, new technologies and platforms will increasingly enable citizens to engage with governments, voice their opinions, coordinate their efforts, and even circumvent the supervision of public authorities. Simultaneously, governments will gain new technological powers to increase their control over populations, based on pervasive surveillance systems and the ability to control digital infrastructure. On the whole, however, governments will increasingly face pressure to change their current approach to public engagement and policymaking, as their central role of conducting policy diminishes owing to new sources of competition and the redistribution and decentralization of power that new technologies make possible.

Ultimately, the ability of government systems and public authorities to adapt will determine their survival. If they prove capable of embracing a world of disruptive change, subjecting their structures to the levels of transparency and efficiency that will enable them to maintain their competitive edge, they will endure. If they cannot evolve, they will face increasing trouble.

This will be particularly true in the realm of regulation. Current systems of public policy and decision-making evolved alongside the Second Industrial Revolution, when decision-makers had time to study a specific issue and develop the necessary response or appropriate regulatory framework. The whole process was designed to be linear and mechanistic, following a strict “top down” approach.

But such an approach is no longer feasible. Given the Fourth Industrial Revolution’s rapid pace of change and broad impacts, legislators and regulators are being challenged to an unprecedented degree and for the most part are proving unable to cope.

How, then, can they preserve the interest of the consumers and the public at large while continuing to support innovation and technological development? By embracing “agile” governance, just as the private sector has increasingly adopted agile responses to software development and business operations more generally. This means regulators must continuously adapt to a new, fast-changing environment, reinventing themselves so they can truly understand what it is they are regulating. To do so, governments and regulatory agencies will need to collaborate closely with business and civil society.

The Fourth Industrial Revolution will also profoundly impact the nature of national and international security, affecting both the probability and the nature of conflict. The history of warfare and international security is the history of technological innovation, and today is no exception. Modern conflicts involving states are increasingly “hybrid” in nature, combining traditional battlefield techniques with elements previously associated with non-state actors. The distinction between war and peace, combatant and noncombatant, and even violence and nonviolence (think cyberwarfare) is becoming uncomfortably blurry.

As this process takes place and new technologies such as autonomous or biological weapons become easier to use, individuals and small groups will increasingly join states in being capable of causing mass harm. This new vulnerability will lead to new fears. But at the same time, advances in technology will create the potential to reduce the scale or impact of violence, through the development of new modes of protection, for example, or greater precision in targeting.

The impact on people

The Fourth Industrial Revolution, finally, will change not only what we do but also who we are. It will affect our identity and all the issues associated with it: our sense of privacy, our notions of ownership, our consumption patterns, the time we devote to work and leisure, and how we develop our careers, cultivate our skills, meet people, and nurture relationships. It is already changing our health and leading to a “quantified” self, and sooner than we think it may lead to human augmentation. The list is endless because it is bound only by our imagination.

I am a great enthusiast and early adopter of technology, but sometimes I wonder whether the inexorable integration of technology in our lives could diminish some of our quintessential human capacities, such as compassion and cooperation. Our relationship with our smartphones is a case in point. Constant connection may deprive us of one of life’s most important assets: the time to pause, reflect, and engage in meaningful conversation.

One of the greatest individual challenges posed by new information technologies is privacy. We instinctively understand why it is so essential, yet the tracking and sharing of information about us is a crucial part of the new connectivity. Debates about fundamental issues such as the impact on our inner lives of the loss of control over our data will only intensify in the years ahead. Similarly, the revolutions occurring in biotechnology and AI, which are redefining what it means to be human by pushing back the current thresholds of life span, health, cognition, and capabilities, will compel us to redefine our moral and ethical boundaries.

Shaping the future

Neither technology nor the disruption that comes with it is an exogenous force over which humans have no control. All of us are responsible for guiding its evolution, in the decisions we make on a daily basis as citizens, consumers, and investors. We should thus grasp the opportunity and power we have to shape the Fourth Industrial Revolution and direct it toward a future that reflects our common objectives and values.

To do this, however, we must develop a comprehensive and globally shared view of how technology is affecting our lives and reshaping our economic, social, cultural, and human environments. There has never been a time of greater promise, or one of greater potential peril. Today’s decision-makers, however, are too often trapped in traditional, linear thinking, or too absorbed by the multiple crises demanding their attention, to think strategically about the forces of disruption and innovation shaping our future.

In the end, it all comes down to people and values. We need to shape a future that works for all of us by putting people first and empowering them. In its most pessimistic, dehumanized form, the Fourth Industrial Revolution may indeed have the potential to “robotize” humanity and thus to deprive us of our heart and soul. But as a complement to the best parts of human nature—creativity, empathy, stewardship—it can also lift humanity into a new collective and moral consciousness based on a shared sense of destiny. It is incumbent on us all to make sure the latter prevails

Skills to Survive a Changing World of Work

Skills to Survive a Changing World of Work

Sep 18, 2017: Weekly Curated Thought-Sharing on Digital Disruption, Applied Neuroscience and Other Interesting Related Matters.

By Charlotte Edmond, about Dr. Tony Wagner’s “The Global Achievement Gap”

Curated by Helena M. Herrero Lamuedra

Education may be the passport to the future, but for all the good teaching out there, it would seem that schools are failing to impart some of the most important life skills, according to one educational expert.

Dr. Tony Wagner, co-director of Harvard’s Change Leadership Group, argues that today’s school children are facing a “global achievement gap”, which is the gap between what even the best schools are teaching and the skills young people need to learn.

This has been exacerbated by two colliding trends: firstly, the global shift from an industrial economy to a knowledge economy, and secondly, the way in which today’s school children – brought up with the internet – are motivated to learn.

In his book The Global Achievement Gap, Wagner identifies seven core competencies every child needs in order to survive in the coming world of work.

1. Critical thinking and problem-solving

Companies need to be able to continuously improve products, processes and services in order to compete. And to do this they need workers to have critical thinking skills and to be able to ask the right questions to get to the bottom of a problem.

2. Collaboration across networks and leading by influence

Given the interconnected nature of the business world, leadership skills and the ability to influence and work together as a team has become increasingly important. And the key to becoming an effective leader? It’s twofold, says Wagner, involving “creative problem-solving and a clear ethical framework”.

3. Agility and adaptability

The ability to adapt and pick up new skills quickly is vital for success: workers must be able to use a range of tools to solve a problem. This is also known as “learnability”, a sought-after skills among job candidates.

4. Initiative and entrepreneurialism

There is no harm in trying: often people and businesses suffer from a tendency to be risk-averse. It is better to try 10 things and succeed in eight than it is to try five and succeed in all of them.

5. Effective oral and written communication

Recruits’ fuzzy thinking and inability to articulate their thoughts were common complaints that Wagner came across from business leaders when researching his book. This isn’t so much about young people’s ability to use grammar and punctuation correctly, or to spell, but how to communicate clearly verbally, in writing or while presenting. “If you have great ideas but you can’t communicate them, then you’re lost,” Wagner says.

6. Accessing and analyzing information

Many employees have to deal with an immense amount of information on a daily basis: the ability to sift through it and pull out what is relevant is a challenge. Particularly given how rapidly the information can change.

7. Curiosity and imagination

Curiosity and imagination are what drive innovation and are key to problem solving. “We’re all born curious, creative and imaginative,” says Wagner. “The average four-year-old asks a hundred questions a day. But by the time that child is 10, he or she is much more likely to be concerned with getting the right answers for school than with asking good questions.

“What we as teachers and parents need do is to keep alive the curiosity and imagination that, to a greater or lesser extent, is innate in every child.”

The Power of Deep Listening

The Power of Deep Listening

Sep 12, 2017: Weekly Curated Thought-Sharing on Digital Disruption, Applied Neuroscience and Other Interesting Related Matters.

By Heather Plett

Curated by Helena M. Herrero Lamuedra

Listening takes a lot of practice. Even though we develop our ability to hear while still in utero (unless we’re hearing impaired), genuine empathic listening is a skill that takes much longer to develop. And even when we’ve worked hard to develop it, we often mess it up.

Overcoming Distractions

Not only does listening take a lot of practice, it takes a lot of vigilance and intentionality to stay in it. Sometimes you can be in deep listening mode and suddenly, something will distract or trigger you and you’ll have to work really hard to stay present for the person in front. You may not always identify what it was that pulled you away–it can be a body sensation, an emotional response, or my own ego (ie. wanting to insert your own comment). When time something like that happens, youo have to bring your attention back to the person in front of me.

Genuine Listening

Here’s a summary of thoughts about Listening:

1. Genuine listening can’t be faked. While there are many outward signals that someone is listening (eye contact, bodily engagement, good questions), people need to have a genuine felt sense that the person listening is fully present.

2. Culture and context matter. Some cultures, for example, don’t value eye contact. And some contexts (ie. when the speaker has a lot of shame or trauma) require a more nuanced form of listening that may mean no eye contact and/or no questions.

3. “Ultimately, a good listener allows the person they are listening to to hear themselves.”. When we, as listeners, interject too much of ourselves in the act of listening (questions, interruptions, too much body language, etc.) we can pull the person away from the depth and openheartedness of their own story.

4. Genuine listening involves stilling your body and mind so that you can be fully present. When we are being listened to, we are usually perceptive to the body signals that a person is genuinely engaged with us.

5. The behavior of the person speaking strongly impacts our ability to listen to them. People find it most challenging to listen to another person when the speaker’s behavior indicates they are self-righteous, condescending, not willing to be open minded, performing rather than speaking from the heart, etc.)

6. Both speaker and listener have to be engaged and willing to be openhearted for it to work. Genuine listening is a two-way street and it can’t happen when one or the other is checked out, distracted or not being honest with themselves. If the speaker is closed off or defensive, it shuts down the ability to listen. If the listener is closed off, triggered, etc., it shuts down the speaker’s willingness to be vulnerable.

7. Genuine listening requires self-awareness and good self-care. When we have done our own healing work, paid attention to our own triggers, and taken time to listen to ourselves first, we are in a much better position to listen to others.

The Circle Way

The three practices of The Circle Way are:

1. To speak with intention: noting what has relevance to the conversation in the moment.

2. To listen with attention: respectful of the learning process for all members of the group.

3. To tend the wellbeing of the circle: remaining aware of the impact of our contributions.

Gathering in The Circle Way means that we slow conversation down and give more intentional space to both speaking and listening. When we use the talking piece, for example, there are no interruptions, cross-talk, etc. Nobody redirects what you’re saying by interjecting their own questions, nobody diminishes your wisdom by interjecting their answers to your problems, and everybody is trusted to own their story and look after the circle by not taking up too much space or time. It can take a lot of practice (some people are quite resistant to talking piece council because they don’t feel it’s genuine conversation if no questions are allowed), but once you get used to the paradigm shift, it’s quite transformational.

Four Levels of Listening

According to Otto Schamer and Katrin Kaufer in Leading from the Emerging Future, there are four levels of listening.

1. Downloading: the listener hears ideas and these merely reconfirm what the listener already knows.

2. Factual listening: the listener tries to listen to the facts even if those facts contradict their own theories or ideas.

3. Empathic listening: the listener is willing to see reality from the perspective of the other and sense the other’s circumstances.

4. Generative listening: the listener forms a space of deep attention that allows an emerging future to ‘land’ or manifest.

Listening becomes increasingly more difficult as we move down these four levels, because each level invites us into a deeper level of risk, vulnerability and openness.

There is no risk in downloading, because it doesn’t require that we change anything. Factual listening is a little more risky because it might require a change of opinion or belief. Empathic listening increases the risk because it requires that we open our hearts, engage our emotions, and risk being changed by another person’s perspective. Generative listening is the most risky of all, because it requires that we be willing to change everything–behavior, opinions, lifestyle, beliefs, action, etc. in order to allow something new to emerge.

Generative listening not only requires a willingness to change, but a willingness to admit I might be wrong.

Holding Space

All of us, through the healing of our own wounds, are much more able to hold space for others.

All of us need to continue to heal and build resilience so that we do not shut down in difficult/ risky/ vulnerable conversations. Some of that involves listening to ourselves more deeply and finding spaces where we are genuinely listened to.

This is not easy work, and it doesn’t happen by accident. Learning to listen is a lifelong journey.

If you want to be a better listener, start by listening to yourself!

The Science of Storytelling: Why Telling a Story is the Most Powerful Way to Activate Our Brains

The Science of Storytelling: Why Telling a Story is the Most Powerful Way to Activate Our Brains

A good story can make or break a presentation, article, or conversation. But why is that? When Buffer co-founder Leo Widrich started to market his product through stories instead of benefits and bullet points, sign-ups went through the roof. Here he shares the science of why storytelling is so uniquely powerful.

In 1748, the British politician and aristocrat John Montagu, the 4th Earl of Sandwich, spent a lot of his free time playing cards. He greatly enjoyed eating a snack while still keeping one hand free for the cards. So he came up with the idea to eat beef between slices of toast, which would allow him to finally eat and play cards at the same time. Eating his newly invented “sandwich,” the name for two slices of bread with meat in between, became one of the most popular meal inventions in the western world.

What’s interesting about this is that you are very likely to never forget the story of who invented the sandwich ever again. Or at least, much less likely to do so, if it would have been presented to us in bullet points or other purely information-based form.

For over 27,000 years, since the first cave paintings were discovered, telling stories has been one of our most fundamental communication methods. Recently a good friend of mine gave me an introduction to the power of storytelling, and I wanted to learn more.

Here is the science around storytelling and how we can use it to make better decisions every day:

We all enjoy a good story, whether it’s a novel, a movie, or simply something one of our friends is explaining to us. But why do we feel so much more engaged when we hear a narrative about events?

It’s in fact quite simple. If we listen to a powerpoint presentation with boring bullet points, a certain part in the brain gets activated. Scientists call this Broca’s area and Wernicke’s area. Overall, it hits our language processing parts in the brain, where we decode words into meaning. And that’s it, nothing else happens.

When we are being told a story, things change dramatically. Not only are the language processing parts in our brain activated, but any other area in our brain that we would use when experiencing the events of the story are too.

If someone tells us about how delicious certain foods were, our sensory cortex lights up. If it’s about motion, our motor cortex gets active:

“Metaphors like “The singer had a velvet voice” and “He had leathery hands” roused the sensory cortex. […] Then, the brains of participants were scanned as they read sentences like “John grasped the object” and “Pablo kicked the ball.” The scans revealed activity in the motor cortex, which coordinates the body’s movements.”

A story can put your whole brain to work. And yet, it gets better:

When we tell stories to others that have really helped us shape our thinking and way of life, we can have the same effect on them too. The brains of the person telling a story and listening to it can synchronize, says Uri Hasson from Princeton:

“When the woman spoke English, the volunteers understood her story, and their brains synchronized. When she had activity in her insula, an emotional brain region, the listeners did too. When her frontal cortex lit up, so did theirs. By simply telling a story, the woman could plant ideas, thoughts and emotions into the listeners’ brains.”

Anything you’ve experienced, you can get others to experience the same. Or at least, get their brain areas that you’ve activated that way, active too:

Evolution has wired our brains for storytelling—how to make use of it

Now all this is interesting. We know that we can activate our brains better if we listen to stories. The still unanswered question is: Why is that? Why does the format of a story, where events unfold one after the other, have such a profound impact on our learning?

The simple answer is this: We are wired that way. A story, if broken down into the simplest form, is a connection of cause and effect. And that is exactly how we think. We think in narratives all day long, no matter if it is about buying groceries, whether we think about work or our spouse at home. We make up (short) stories in our heads for every action and conversation. In fact, Jeremy Hsu found [that] “personal stories and gossip make up 65% of our conversations.”

Now, whenever we hear a story, we want to relate it to one of our existing experiences. That’s why metaphors work so well with us. While we are busy searching for a similar experience in our brains, we activate a part called insula, which helps us relate to that same experience of pain, joy, or disgust.

The following graphic probably describes it best:

In a great experiment, John Bargh at Yale found the following:

“Volunteers would meet one of the experimenters, believing that they would be starting the experiment shortly. In reality, the experiment began when the experimenter, seemingly struggling with an armful of folders, asks the volunteer to briefly hold their coffee. As the key experimental manipulation, the coffee was either hot or iced. Subjects then read a description of some individual, and those who had held the warmer cup tended to rate the individual as having a warmer personality, with no change in ratings of other attributes.”

We link up metaphors and literal happenings automatically. Everything in our brain is looking for the cause and effect relationship of something we’ve previously experienced.

Let’s dig into some hands on tips to make use of it:

Exchange giving suggestions for telling stories
Do you know the feeling when a good friend tells you a story and then two weeks later, you mention the same story to him, as if it was your idea? This is totally normal and at the same time, one of the most powerful ways to get people on board with your ideas and thoughts. According to Uri Hasson from Princeton, a story is the only way to activate parts in the brain so that a listener turns the story into their own idea and experience.

The next time you struggle with getting people on board with your projects and ideas, simply tell them a story, where the outcome is that doing what you had in mind is the best thing to do.

Write more persuasively—bring in stories from yourself or an expert
The simple story is more successful than the complicated one
Using simple language as well as low complexity is the best way to activate the brain regions that make us truly relate to the happenings of a story. This is a similar reason why multitasking is so hard for us. Try for example to reduce the number of adjectives or complicated nouns in a presentation or article and exchange them with more simple, yet heartfelt language.

Start including storytelling as a Leadership Practice! Coming soon: the Leader as a Storyteller.