Digital innovation primer: Part two – Workplace innovation

By Craig Baty FIML

 

In this second of five articles about digital transformation for non-technical leaders, we’ll look at workplace innovation. After learning what digital transformation is in last week’s blog, what should leaders understand about how technology shapes the modern workplace?

 

Defining today’s workplace    

 

Digital technology has transformed the workplace, as it has so much else. The very concept of the workplace has evolved. For an increasing number of people, it is no longer a physical location. Rather, it describes the wider virtual environment enabled by such technology as smartphones, mobile broadband, virtual and augmented reality, collaboration tools and a range of other workplace productivity technologies.

 

It is now more than 40 years since digital technology transformed the back offices of large organisations. It is just over 30 years since the PC revolution swept through the front office and brought personal productivity tools such as word processors and spreadsheets to all information workers. Twenty years ago the Internet became a common business tool and the Apple iPhone ushered in the smart phone revolution around 10 years ago.

 

Each of these waves of technology transformed the workplace. We are now experiencing another revolution, driven by new technologies such as Artificial Intelligence and the cloud-based delivery of personal and workplace productivity tools.

 

Technological backbone of the modern workplace

 

There are many names for the rapidly changing use of technology and related enabling policies at work including Workplace Innovation, Workstyle Innovation, Smart Workplace and others. Many technologies work together to make it happen. These include:

  • Collaboration tools: software that helps individuals in the workplace to work together on projects by sharing applications and data. Collaboration is not a new idea, but Cloud and artificial intelligence have enabled new ways of working together. At the same time, existing personal productivity tools such as Microsoft Office migrated to the Cloud and brought a new dimension to collaboration.
  • Social media: this is a consumer technology increasingly being used for workplace productivity. Sophisticated analysis tools, many of them driven by AI techniques, are leveraging social networks as important business tools.
  • Workflow and content management: another existing workplace application that has been revolutionised by new technology.
  • Mobility: smartphones, mobile broadband and mobile apps have enabled individuals to work anytime and anywhere.
  • Unified communications: the bringing together of different media – voice, data, image, video – into one integrated corporate communication system.

 

Not everybody is an information worker. New technologies are also transforming workplaces in areas as diverse as manufacturing, transport, energy, utilities and mining. Many of these applications, such as virtual and augmented reality, use a combination of technologies based on AI, the Internet of Things and other innovations. Individuals, the workplace, and the enterprise have never been more connected. Leaders should continue to work with their HR/HCM teams to identify any blockages to productivity and employee satisfaction, safety and engagement and with their ICT teams to co-create appropriate policies and procure the technology to enable them.

 

In next week’s blog, we will cover the Internet of Things (IoT).

 

Digital transformation – why you should care

 

Join us in Sydney where Craig will present an informative and insightful TEL Talk: Digital Transformation – Why should I care? This brief primer on Digital Transformation will address:

  • What is Digital Transformation and why is it important for today’s leader?
  • What are the key technologies and processes to be aware of?
  • How have these technologies been used to create truly transformative business outcomes?
  • As a leader, how can you prepare yourself for an increasingly digitalised future?

Craig Baty is Principal and Founder of Technology & Management Services (TMS), which specialises in research-based data-driven thought leadership and consulting for ICT strategy, outsourcing, vendor management, go-to-market execution, and market and competitive intelligence. TMS also consults on cross-cultural communications and managing virtual teams across multiple geographies. He previously held C-level leadership roles with global telecommunications provider BT (British Telecom), Japanese ICT & technology giant Fujitsu and ICT research and advisory firm Gartner. Craig currently serves as NSW Vice Chair of the Australian Computer Society (ACS) and on the NSW Council of the Australian Information Industry Association (AIIA).

Digital innovation primer: Part one – Digital transformation (DX)

By Craig Baty FIML

 

In this first of five articles, we’ll look at digital transformation (DX) in general and introduce the key technologies and concepts to be aware of. DX is important for non-technical leaders to have some level of understanding about, so as to effectively manage and use it to their advantage.

 

What is digital transformation?

Digital technology, in all its forms, is transforming business and society. Virtually every area of human activity is being profoundly altered. The most successful people and organisations are those embracing this transformation to build new products and services based on innovative business models enabled by the many technologies that comprise the trend.

The famous Austrian economist Joseph Schumpeter, regarded as the father of the study of innovation, described it as ‘creative destruction’. That is what is happening now, all around us. The old ways of doing things are being destroyed. In their stead are rising new ideas, new techniques and whole new industries. In our increasingly digital economy that process is called Digital Transformation (DX).

 

What’s driving this revolution?

There are many enabling technologies driving this revolution. Foremost amongst them is the Internet, which has allowed levels of communication, connectivity and information sharing unimaginable a few short years ago. It has given rise to the Cloud, to the Internet of Things (IOT), and to new ways of delivering and sharing software and services. In a few short decades, it has grown from a limited low bandwidth network connecting just a few computers to a universal high-speed matrix covering the whole planet.

Another key driver is the range of technologies known collectively as Artificial Intelligence (AI), which are enabling new ways of working, new ways of analysing data, and new ways of using existing technology. Massive advances in computing power have made possible AI technologies like machine learning, robotic process automation (RPA) and predictive data analytics. These techniques enable us to make sense of the vast amounts of information (often called ‘Big Data’) generated by the new technologies of the era of Digital Transformation.

 

Digital transformation impacts all aspects of leadership

Massive changes are happening all around us. In the workplace, mobile technologies increasingly mean that for the first time in history we are location independent. We are connected any time and anywhere. Smart phones have transformed many people’s lives and have been the most quickly adopted technology in human history. They have also enabled many new applications and new ways of working, driving a whole range of initiatives and technologies, often referred to as Workplace Innovation, to improve employee productivity and engagement.

At the enterprise level, corporate data and corporate applications have also become untethered from the physical world. Large scale corporate wide applications (Enterprise Applications/Enterprise Resource Planning (ERP)), services and even infrastructure are now delivered by the Internet. The separation of the digital world from the physical world is blurring, with robotics transforming manufacturing, drones being used for an increasing number of applications and autonomous vehicles becoming a reality.

Governments at every level are delivering their services digitally and are opening government data to third parties to help them develop new information-based services. Electronic identity management has become commonplace.

These changes are revolutionary. But they are not without cost. New technologies mean new opportunities, bad as well as good. In a totally connected world, Cybersecurity has become a major issue. It encompasses a range of technologies designed to protect computers and networks from unwelcome intrusion and to ensure their continued reliability.

Digital Transformation is sweeping the world. Its effects are significant, at every level of business and society. Leaders in all spheres of human endeavour will be impacted and need to become aware of the essential concepts and implications to maximise opportunities for innovation and managing in this rapidly evolving environment.

In the rest of this five-part blog series, we will cover each of the key DX technologies introduced above. Next week we will introduce Workplace Innovation and related technologies.

 

Digital transformation – why you should care

Join us in Sydney where Craig will present an informative and insightful TEL Talk: Digital Transformation – Why should I care? This brief primer on Digital Transformation will address:

  • What is Digital Transformation and why is it important for today’s leader?
  • What are the key technologies and processes to be aware of?
  • How have these technologies been used to create truly transformative business outcomes?
  • As a leader, how can you prepare yourself for an increasingly digitalised future?

Craig Baty is Principal and Founder of Technology & Management Services (TMS), which specialises in research-based data-driven thought leadership and consulting for ICT strategy, outsourcing, vendor management, go-to-market execution, and market and competitive intelligence. TMS also consults on cross-cultural communications and managing virtual teams across multiple geographies. He previously held C-level leadership roles with global telecommunications provider BT (British Telecom), Japanese ICT & technology giant Fujitsu and ICT research and advisory firm Gartner. Craig currently serves as NSW Vice Chair of the Australian Computer Society (ACS) and on the NSW Council of the Australian Information Industry Association (AIIA).

Bullying, harassment and abuse are workplace hazards too

By Karyl Estrella MIML

 

Genuine human concern and a duty of care means for most managers maintaining a safe workplace is a must. Hence offices are fitted with fire systems, first aid kits and evacuation plans are set out. We do everything in our power to eliminate safety hazards. However, if we think about what a workplace hazard is it’s really anything that could cause potential harm, injury and illness to your people. So, beyond trip, slip or electrical hazards, psychological and emotional risks should also be removed.

Compared to most common hazards, psychological and emotional threats, such as bullying, harassment and abuse result in more severe damage to the employee’s wellbeing. Even more of a concern is that it may not always be easy to detect.

Managers and leaders play a crucial role here. According to Safe Work Australia, one of the central reasons for the occurrence of bullying and harassment in workplaces is the lack of managerial regard for creating an emotionally and mentally safe work environment. Clearly, this is a significant concern for all managers and leaders.

 

A danger hidden in plain sight

This issue is magnified when we consider the impact of the workplace on an employee’s life. In the 12 months preceding March 2018, the figures reveal Australians spent 20 billion hours at work.

Creating a safe environment becomes even more critical given the current state of Australian workplaces. Alarmingly, the Australian Human Rights Commission reports that 23% of women and 16% of men have experienced sexual harassment at work.

If employees are spending the majority of their time in an environment where they do not feel safe, it will no doubt affect their engagement, productivity and loyalty to an organisation. Even worse, is that the effects of bullying, harassment and abuse have far-reaching impacts on how they function within society.

 

A solution is imperative

There are some ways workplaces can respond to these severe hazards. These include:

  • Setting clear guidance. Implement a zero-tolerance approach when it comes to bullying, harassment and any form of gross disrespect in the workplace. Your policies should support this through clear guidelines and consequences for offenders.
  • Offering information and support. Supply all employees with clear information on what they should do if they observe any form of abuse in the workplace. Provide support services for employees who have experienced bullying, harassment and violence – regardless if it’s at home or work.
  • Walking the talk. Leaders in the workplace must be role models of respectful behaviour. By setting the tone from the top, you build an environment where people feel they are safe from abusive behaviour.

 

Embrace the right outlook

Empowering managers and leaders with the skills, knowledge and courage to create a positive influence on our workplaces – and society – is at the heart of what we do at IML ANZ. That’s why we’ve focused our Leadership Outlook 2019 series on creating safe and respectful workplaces. We’ve partnered with White Ribbon to deliver a national series of thought-provoking and practical workshops.

During each session, a panel of local leaders will share real-world experiences and discuss:

  • Best practice approaches to support employees who are experiencing domestic violence, bullying or harassment in or out of the workplace
  • Knowledge and skills in applying a strategic, evidence-based methodology drawn from White Ribbon’s work with organisations on the Workplace Accreditation Program
  • Strategies to support staff which minimises risk and promotes a supportive workplace culture
  • Resources and tools to assist in creating a safe and respectful workplace
  • Practical case studies to work through key learnings from the sessions

We all deserve to feel safe. Join us for an event that will help transform workplaces, leadership and society.

Visit managersandleaders.com.au/leadership-outlook-2019/ for locations, dates and to book.

Karyl is IML ANZ’s content producer. Contact her for queries regarding the IML ANZ blog and quarterly magazine, Leadership Matters.

Mind the gap

By Anthony O’Brien

The latest IML Gender Pay Report reveals that if you’re a female working in a C-Suite role, you could be earning as much as 15% less than your male colleagues.

The report presents findings based on an analysis of pay differentials from 2014-2018 between male and female full-time employees within the Australian workforce. The research considers different employment levels and job families ranging from administration to general management. The analysis uses IML’s National Salary Survey, updated in October 2018, and data collected from 460 organisations across Australia, covering more than 250 job roles.

The research doesn’t reflect casual or part-time workers, or maternity leave which explains differences between the IML report and the gaps reported by government organisations such as Workplace Gender Equality Agency (WGEA), according to report author, Sam Bell FIML, General Manager, Corporate Services and Research, IML. The full-time total remuneration gender pay gap based on WGEA data is 22.4%, meaning men working full time earn, on average, nearly $27,000 a year more than women working full time.

WHY THE GAP PERSISTS

According to the IML report, the C-Suite pay gap fell to 9.8% three years ago after a high of 14.7% in 2014. But over the past three years, the gender pay gap for C-Suite roles climbed steadily and is now approaching the levels of five years ago. Bell explains that isolating the reasons for the widening gap at the C-Suite level is challenging. “There are probably more female managers in lower-paying industries. However, our research measures like-against-like job levels and job families, so more female executives working in lower paid industries doesn’t explain the C-Suite gap thoroughly.

“That there is a 14.6% difference in like-against-like general manager salaries is certainly an eye-opening statistic that organisations need to review.”

Libby Lyons, Director of the WGEA, says, “The gender pay gap is a symptom of a broader issue. It reflects the fact that women’s work is traditionally undervalued, and women are often paid less than men.

“As a nation, we need to be talking about what is behind the gender pay gap – the barriers women face in the workplace that cause the gender pay gap.”

WHERE THE GAP IS CLOSING

If you’re seeking work in an industry with closer to equal pay, then look no further than information technology (4.6%) and engineering and science (4.8%). That said, in 2014 the IT pay gap slightly favoured women (-0.1%), and the difference was only 0.3% for females working in engineering and science. On the flipside, the salary gap for women in finance and accounting improved from 13.7% down to 7.1% over the past four years.

IT continuously rates well for women’s pay rates because it’s a result driven industry that typically doesn’t differentiate between male or female employees, notes Bell. “The salary gaps in finance and accounting have dropped because there is greater awareness of gender diversity issues in that profession because of CEOs such as former Westpac boss Gail Kelly.

“That industry was heavily male-dominated, but with high-profile CEOs like Kelly championing the issue and taking it head-on, the pay gap almost halved in the past four years.”

ADDRESSING THE GAP

Paul Jury, Managing Director of Australia for global HR executive search firm ChapmanCG, resolutely believes there should be no excuses for gender pay gaps. He elaborates, “Moreover, there’s plenty of research indicating that up to 70% of employers report they have policies in place to support gender equality.

“With the gender pay gap, it is all heading in the right direction, but the speed of improvement is still too slow.”

Personal biases can come into play particularly where objective measures of performance are deficient and create incidences of gender gaps in promotions and pay, reasons Jury. “For senior roles, some managers without access to objective data may tend to promote and reward people they like and whom they perceive are more like them.

“While unconscious bias is hard to rewire, more training, education, and awareness within an organisation can help to mitigate its impact on gender diversity, promotion and pay. This includes putting in place guidelines, along with checks and balances within a business to minimise the gender pay gap.”

Bell agrees more investment in educating managers about gender equality issues is required. “Educating managers who hire staff that pay gaps are not acceptable is a start,” he reasons. “And the fact that skills, experience, and qualifications should be paid for, irrespective of whether a recruit is male or female.”

From a leadership perspective, Bell believes an organisation should have a gender pay gap policy or statement in place that all managers “understand and take seriously”. WGEA research indicates that actions to correct like-for-like gender pay gaps are three times as effective in reducing overall pay inequities when combined with reporting to executives and boards. Bell says, “There’s a lot of large Australian companies that are certainly taking all these steps. All of them probably have a statement from a leadership level, whether it’s CEO down, saying that pay gaps won’t be tolerated.”

ACCOUNTABILITY COUNTS

Using market data such as IML’s National Salary Survey is another prudent step towards minding the pay gap says Bell. “Employers must understand what the market is paying for a C-Suite role or line manager and it shouldn’t matter whether someone is male or female.”

Another critical way to strengthen employer accountability would be to end pay secrecy, according to Alice Orchiston, an Associate Lecturer in Law at the University of Sydney. To this end the federal Australian Labor Party announced in September last year that, if elected, it will legislate for the introduction of publicly available company-specific gender pay gap data. In an opinion piece for academic journal The Conversation, Orchiston wrote: “If women discover they are earning less than their male counterparts for the same jobs, their legal avenues for pursuing equal pay are limited. It’s difficult to prove and costly to litigate.”

Orchiston continued, “Requiring employers to make their pay records publicly accessible or accessible to employees across the same organisation would create greater transparency and a basis for women to assess their pay, which in turn could facilitate negotiation or legal action.”

READ THE FULL REPORT

The IML 2018 Gender Pay Gap report can be purchased at managersandleaders.com.au/national-salary-survey

Ann Messenger: From Student Member to Chair of IML

 

Ann Messenger has enjoyed a varied and eventful career in a variety of influential positions. In this interview she reflects upon the toughest challenges facing managers and leaders today, and shares some of the lessons she has learnt. 

By Jade Collins and Alanna Bastin-Byrne

 

Ann Messenger FIML is the Chair of the Board of the Institute of Managers and Leaders (IML). She is a chartered accountant and has enjoyed a varied global career, including six years working in Latin America as an equities analyst covering emerging markets.

Messenger worked in corporate finance and middle market advisory roles with professional services firms KPMG and HLB Mann Judd and later secured in-house roles such as Chief Financial Officer and Chief Operating Officer with a variety of organisations including the Sydney Chamber of Commerce. Messenger has a strong interest in not-for-profits. During 2009 and 2010, she was the General Manager of St John’s College (within the University of Sydney) and in 2011 was appointed to Mosman Council’s Development Assessment Panel.

Messenger led the strategic rebrand of the Australian Institute of Management Group (AIM) to the Institute of Managers and Leaders to refocus the organisation’s purpose on setting and promoting the national standard of management and leadership competence. As part of this change, IML is the only assessing body outside of the UK offering the internationally recognised Chartered Manager (CMgr) qualification.

You are the first national Chair of the Institute of Managers and Leaders and originally joined as a student member of AIM in the 1980`s. Tell us about your long association with the organisation and how it has influenced and supported your leadership journey.

When I joined in the 1980s, management was a relatively new discipline and AIM was at the forefront of what was at that time the burgeoning field of management education and training. Since then, management education and training has become ubiquitous and IML has morphed into what it is today, the go-to professional body for managers and leaders.

IML has always had a sense of fraternity and as a young management professional there was a great sense of support in meeting others who were effectively in the same boat, not to mention a veritable gold mine of mentors who were always incredibly generous with their time and eager to help. Because IML has always been a completely independent non-aligned not-for-profit organisation, it occupies a unique position in being able to provide a nurturing forum for the profession.

What do you believe are the most pressing challenges leaders and managers face today?

The need for leaders and managers to constantly learn, adapt and change has never been greater. Nothing is static and with information at everybody’s fingertips there’s a constant expectation that we must keep up or be left behind. This is incredibly challenging and exciting but, of course, our reliance on non-curated and unverified data presents risks (and sometimes even fake news!). Seriously, though, this is where professional bodies like IML come into their own in providing sounding boards and support networks of like-minded people with whom we’re not in direct competition in a workplace.

IML has long advocated gender equality and diversity in leadership. What can organisations do to accelerate achieving leadership diversity and a culture of inclusion?

As leaders we can try to understand and appreciate that we are employing the “whole person”, not just the “professional part”. The good news is that by adopting a more holistic view of the individuals who make up our workforce – a culture of acceptance and inclusion follows. Leaders of organisations that do that are inherently promoting diversity and inclusion and, by the way, achieving much higher returns on their human resource investment.

Leaders can also dispel the myth that employees are somehow almost robotic, one dimensional units of production and accept that work is a means to an end for all but the saddest of the workaholics among us. In doing so, we bring some humanity, acceptance and inclusion into our workplaces.

As an experienced director, what would you recommend as the best preparation to those who are considering pursuing board roles?

There are a million and one sage and sobering accounts of boardroom activities, the most colourful of which unfortunately exist in court reports. Gaining an understanding of corporate governance is absolutely critical. Although experience within the boardroom via executive roles provides valuable insights, a director’s perspective is and must be entirely different. Governance is key.

What has been your greatest challenge?

There have been so many challenges. One that’s front of mind for me right now is accepting that sometimes things just have to play out and, as a leader, there are times when you just have to allow that to happen. The learnings and evolution that result for all concerned sometimes just have to come from the actual experience.

What are you most proud of?

In my role as Chair of IML, it’s got to be the rebrand and reinvention of the organisation. That is, of course, still happening. It’s been incredibly rewarding to watch the reaction to this fresh new brand.

What’s your one piece of advice for future female leaders?

I’m going to steal from Eleanor Roosevelt here. She once said something along the lines of: “Do what you know in your heart is the right thing to do because you’ll be criticised anyway!”

I guess that’s another way of saying believe in yourself and see it through – but I’d caveat that by saying, always…always listen to those who you know have your best interests at heart…and then do what you think is right!

As leaders we can try to understand and appreciate that we are employing the “whole person”, not just the “professional part”.

Exploring the mystery of the mind

Neuroscientist Dr Hannah Critchlow says that managers and leaders have a duty to get their heads around how the brain works.

By Lachlan Colquhoun  //  photographs by Paul Musso & Martin Pope

Of all the organs, the brain has always been viewed in a different way, and with special reverence.

Weighing only 1.5 kilograms, or around two per cent of our body mass, the brain is seen as the driver of our personalities, the home of our soul, the repository of memory, and the computer that keeps the whole body ticking over so that we can function in society.

While medical science has gone a long way to demystify the physiology of other organs, such as the liver and the heart, our understanding of the brain and its 86 billion neurons has remained comparatively limited until recently.

Breakthroughs in neuroscience over the past decade, however, are rapidly lifting the veil on our understanding of the body’s most complex organ and, in the process, helping us understand more about human behaviour.

“This is a great time to be a neuroscientist, we are peering into the mind as never before,” says Dr Hannah Critchlow, a British author, neuroscientist and fellow of Magdalene College, Cambridge. “We are learning about the brain at an exponential rate now — there are as many as five to ten thousand new research papers coming out each month.

“We still have a lot to learn of course, and there are still major problems, as we can see with mental health, but we are discovering the real underpinnings of the brain’s operation and this information will help us to better treat some of the debilitating conditions of the mind.”

Reality check

Dr Critchlow is at the frontline of neuroscience and is on a mission to communicate its findings to the world.

Nominated as one of the UK’s Top 100 Scientists by the Science Council, she is about to follow up her first book Consciousness with a second publication on the theme of “the science of fate”.

Many of the insights from neuroscience, Dr Critchlow says, have come from understanding the brain as a physical organ. Advancing technologies such as optogenetics, which uses light to stimulate specific circuits in the brain, are revealing more about the physiology of behaviours that were previously considered part of the mystery of personality.

Entrepreneurs and drug addicts, for example, have particular brain anatomies, as do people with ADHD and those who enjoy socialising more than others.

For managers and leaders, the challenge is to work with an understanding that everyone has a different perspective on reality and that certain acts that were previously considered voluntary may, in fact, be hardwired.

Although exercise and meditation can help us grow new brain cells and the connections between them, just as chronic stress and depression can kill them off, there may be limits to the ultimate “plasticity” of what a person can achieve with the particular brain they are born with.

The old adage that “you can do anything you want if you put your mind to it” may prove to have clear scientific limitations.

“We can literally see how the circuit board of the mind — this amazing machine comprised of billions of nerve cells, with trillions of connections between them — shifts and changes as we make decisions and experience the world around us,” she says.

“We can switch feelings of pleasure on or off, and feelings of anxiety and even addiction, so we are really starting to understand how these discrete circuit boards in our brain give rise to very particular behaviours.”

Part of this is a more holistic understanding that the brain does not exist in isolation at the top of the body, and that its interactions are strongly linked with the immune system, to our gut, and to organs such as the heart.

“At its most basic, when you have a cold or the flu you feel down in the dumps and depressed, and there is a physical reason for that because your brain is almost in a depressed state at that point,” says Dr Critchlow.

“There is also a lot of emerging evidence which suggests that people with chronic depression might have altered immune systems as well, so their immune system is attacking the brain. An altered immune system has even been linked to the terrifying symptoms of psychosis, and in some patients simply clearing their blood of the faulty immune cells can stop the symptoms for good.”

Performance enhancing drugs

These new understandings of the brain have created new treatments for depression and addiction, and perhaps controversially, opened up the potential to enhance our creative capacities through the use of smart drugs.

“There is lots of information coming out now about how creativity and problem solving in the brain is formed, and there are drugs called cognitive enhancers which seem to boost certain aspects of our alertness, or our reasoning and our concentration skills,” says Dr Critchlow.

“There’s also psychedelics, which previously people were mainly interested in from a recreational viewpoint, but now small doses of these drugs have been implicated in boosting creativity and problem solving skills, raising all sorts of considerations around whether we want people in the workplace to be taking small amounts of drugs, even if it does boost their performance.”

Alongside research into drugs, there has also been work done on “brain helmets” that use mild electrical currents to stimulate specific areas of the brain to see how this can foster particular behaviours like, for example, creativity.

Plasticity has limits

But while this research shows that capabilities can be enhanced, and that we do each hold the scope for plasticity and flexibility within our brains, Dr Critchlow says a key finding of neuroscience is that many of our behaviours are “ingrained” because of how our brains process the vast amounts of information from the outside world, and accepting this has particular relevance in the workplace.

“So rather than trying to make somebody fit into a role and a set of expectations, it may be more productive to just create the environment that will help them to flourish and make use of the skillsets they bring,” she says.

“Although our brain has a huge scope for plasticity and we can learn new things, emerging neuroscience is showing that people have specific strengths and weaknesses that sometimes you just can’t change.”

People whose brains have a larger prefrontal cortex, for example, with many “slots” for beta-endorphins, are “almost hardwired” to need a wide number of different friendship groups.

“They are like conduits which let information be exchanged from clique to clique, so that is a very important role within society,” says Dr Critchlow. “And then there are people with a much smaller prefrontal cortex and they have a much smaller group of friends, or they spend more time with each of their friends in closer relationships.

“There is a hypothesis that because these people have fewer beta endorphin spots they don’t need to go around filling them up by meeting lots of other people.”

These two types of people respond differently to the workplace. The first type, with the larger prefrontal cortex, may be more comfortable working in an open plan office where they can mix with larger number of colleagues, while those with the second brain type may prefer to work in smaller groups.

Entrepreneurial thinking

Neuroscience is also beginning to understand the brains of entrepreneurs, which can sometimes be similar to people with ADHD.

“People who are entrepreneurs and who are thriving in taking risks in business have an evolutionary drive to do so and that is based around their brain biology,” says Dr Critchlow. “Much of this is intuitive, of course, and we have talked about this for decades but neuroscience is now demonstrating how this has a basis in the brain.”

In her next book, Dr Critchlow is focusing on the subject of “the science of fate,” looking at the extent to which our behaviours are predetermined by the brains we are born with.

“I am interested in understanding how much of our behaviour is ingrained,” she says. “We are seeing now that a lot of what we do is predetermined, so that opens up the question on whether we actually have any agency, or any free will at all.

“We have been sold this concept that the brain is highly plastic and that we have the power to change our behaviours if we can put our minds to it, but this may not necessarily be the truth.”

The take out from all this is one of acceptance and tolerance. People have strengths and weaknesses and need to work with them, but at the same time environments need to be sensitive to this to help a diversity of people flourish.

“For leaders and managers there is a responsibility for acceptance, but also to use this to be the best person they can be and look after the mental health of their teams,” says Dr Critchlow.

She says that she personally has “appalling spelling” as a result of dyslexia, “but I’m okay with that”.

Everybody is on a spectrum for every different kind of behaviour, and although there is some wriggle room for moving, we must accept that we need an environment which can nourish us.

“Our individuality is a beautiful thing, and it’s the brain which produces that individuality.”

Dr Hannah Critchlow’s new book on ‘the science of fate’ will be published in Australia in 2019 by Hachette.

Could Appreciative Inquiry Be Your Next Solution?

Who would’ve thought that you could solve inefficiencies and problems by not looking at the inefficiencies or problems? It is an unusual concept, but Appreciative Inquiry (AI) takes problem solving in an innovative direction. According to this problem solving technique, paying attention to the problems will only amplify them; whereas, focusing on the positives will elicit the best solution. In addition to this, AI has been proven to produce other significant benefits for organisations, such as: enhancing collaboration, encouraging creativity, empowering individuals and avoiding stereotypical solutions. So, how can your organisation solve problems using AI?

There are four steps to undertaking a successful AI process, these are: Discover, Dream, Design and Deliver. When organisations want to undergo an AI process, they are encouraged to invite a group of stakeholders along to a planning workshop that works through these four phases.

Discover

The Discover phase of an AI process seeks to understand the current situation. This is one of the hardest phases for people to get their heads around as our minds naturally shift towards the current situational issues. However, instead of looking at the current issues, the Discover phase requires us to appreciate the best of what is and what has been. To discover this, participants are asked a series of questions that get them thinking about some of the key strengths of a current situation. Examples of questions that are commonly used during this phase are:

  • What do you like most about…?
  • What makes this memorable…?
  • Why do you like…?
  • What would make you choose this over something else…?

By responding to these questions, common themes and words start to appear. These are the themes that the rest of the AI process seeks to capitalise on…

Dream

The second phase of an AI process is the Dream phase. The Dream phase encourages imagination and creativity from participants by allowing them to brainstorm an ideal situation. When crafting an ideal situation in their minds, participants are encouraged to think about what it involves, what it looks like and what strengths it capitalises on. To make the most out of this phase, it is usually conducted individually at first before ideas are shared and strengthened in a group.

Design

The third phase of the AI process is when participants start to translate radical ideas into reasonable solutions. As a group, participants take bits and pieces from the dream phase to design an ideal solution. Practicality questions are answered during this phase when proposing what resources, skills, training, money, knowledge and commitment is required to translate the dream into reality.

Deliver

The final phase is the Deliver phase. This phase is where participants commit to the solution and set out a plan to achieve it. Typically, this stage involves the formulation of a proposal plan or implementation timeline.

And that’s it! A small workshop with four steps that could lead to innovative solutions for your organisation. Could AI be the solution to your next organisational problem?

From wilderness to CEO: how I started my first company

When I left my last job at Logica, it was a tough decision to make as I had to survive without income in order to achieve my dream of setting up a successful startup. But that’s what 88% of the entrepreneurs do. My parents kindly invested in the new business.

In 1995 – two years after the first web browser was released, I spent all my money on a high-speed internet connection (only 64K then) and headed out to research what business would benefit from the Internet. I’d been using the Internet since the 1987 when I did a research trip to the USA with my University. The Internet was a great solution but what was the problem?

I then tried my hands into real estate business but turned out that it was challenging as agents kept all their prices hidden and only revealed them to clients who walked in the door. The next on my list was to get into travel accommodation. After testing the market for a while I realized that people were taking a punt. I could foresee an income of around 1,000 GBP per year, but little prospect of any increase soon. So I was back to the drawing board.

After several more abortive ideas I realized the real problem was staring me in the face. Communication on the Internet was a real challenge for most companies. What was the point of a website if you couldn’t get email? I created an email solution and within a year I had seven people working for me. I remember the first customer well, like every entrepreneur does – Falmouth College of Arts. Within a few years Telstra, the US Army, and NASA made to our customer list. I ran the world’s forum for email – anyone with a question about setting up email came to me. I owned the problem to which I  happened to have a great solution.

Looking back, I was young and able to take the risk of jumping before I had an income.

But what was really  required for my success was to get out of my comfort zone and test my ideas with strangers.  I walked into shops, called people, sent them letters to discover what my potential customers thought and listened to the response before I built anything.

It was a great learning for me as I got to dive deep into their world and   understand  how they looked at things. By doing this I was able to quickly narrow down ideas that would really work at the end. Only after contacting and speaking to many hundreds of people did I eventually hit on a problem I could solve. That of providing communication on the internet.

The same process works now!

Statistics show that entrepreneurs over 40 have a significant advantage over the younger generations. The reason being  they already know an industry and so they can see how things can be improved. They already have a network of people who’d benefit, the confidence to go and ask open questions and listen to the response. And because they already have an income, they are not financially stressed.

When you know how, testing an idea to see if it can become a source of revenue costs very little – just a pack of business cards, some time and a little thought. Some people stumble on the process, others stand on the shoulders of the greats. Many start in their spare time and their passion takes over and customers start arriving.

Knowing you have to ask open questions and listen is the key. Listen to the answers and find others with a passion to solve the same problem as you.

Then you have the dream team…

By Brian Dorricott

Founder of two businesses exited through multi-million MBO and sale to Cisco Systems, speaker and  guide to hundreds of Entrepreneurs.

The Neuroscience Behind Leadership

In just a matter of weeks I’ll be taking to the sky, travelling from Cambridge UK to the other side of the world, visiting Australia for my first time. I’m incredibly excited about my trip hosted by the prestigious Institute of Managers and Leaders. I’ll be visiting the East Coast cities: Brisbane, Melbourne, Sydney, and Canberra. There I will be unlocking the mysteries of the mind to discuss how neuroscience findings can help better inform leaders and managers for business.

How do our minds operate? How does our unique perception of the world shape our decision-making? How do fear and stress affect our behaviour? How can neuroscience knowledge help promote creativity and problem solving? What can we do to refine our focus and attention? We’ll be answering these questions and more during the sessions.

Knowledge is power, I strongly believe! And so, as we understand more about the brain, how it shapes our behaviour, we can be empowered and flourish, as both individuals and as companies. During my visit I’m also hoping to literally dive into the minds of leadership professionals, reading their brainwaves live on stage using an EEG machine, to help unravel the thinking behind our decision-making.

So, why now? We currently live in the era of the brain: a recent revolution in technology allows us to peer into the mind as never before. We can visualise the architecture and operation of the brain, in fine detail, as the world is navigated and our sense of self formed. As a result, we are discovering that certain complex behaviours are ingrained, whilst others are skills that can be built on and improved. Neuroscience is also helping us to understand more precisely the nature of what it means to be conscious, and to live with the ability to form a subjective view. We’ll explore the ramifications of this, how it can sometimes lead to conflict, and how to help prevent it. We’ll also discuss the emerging fields studying the science of altruism and compassion and the relevance for business environments. Through neuroscience, we are learning how to open minds to more productive collaborations. These findings build on research from the disciplines of theology, psychology, sociology and philosophy and provide the lens through which we can have a mechanistic understanding of the very nuts and bolts that makes us, well, us! The results and have vast implications at the level of both the individual and society.

I’m really looking forward to my trip. I’m hoping to also discover new ways of thinking about the brain from you, the business leaders, learning from your perspective.

On that note I would love for you to take part in little experiment! Listen to the below audio track.

It’s tricky to understand, right? In fact, it’s complete gobbledegook! Now listen to this second track. Poor camel! Now play back the first track again. Suddenly it makes sense, right?

First Track:

Second Track: 

The cadence of both sentences is the same. This happens because our brains are both awe inspiringly sophisticated and mesmerising in their action, but also inherently lazy, always trying to take short cuts in their processing in order to make assumptions about the world. As a result the brain superimposes your previous experience of making sense from the sentence with the similar cadence onto the first gobbledegook track. This simple audio illusion helps us to understand how our perception of the world is built from a culmination of our highly individual life experiences. It also helps us to appreciate how we can each hold such wildly conflicting views of the world and why consensus building can be so tricky. Such consensus building, taking onboard other people’s perspectives, is vital for leadership and management and we’ll be exploring how neuroscience can also help us achieve that. I’m really looking forwards to discussing this and more, meeting you shortly in Australia!

Dr Hannah Critchlow is an internationally-acclaimed neuroscientist with a background in neuropsychiatry. She is best known as the presenter of BBC’s Tomorrow’s World Live as well as for her work demystifying the human brain on regular radio, TV and festival platforms. Hannah’s work in science communication saw her named as a Top 100 UK scientist by the Science Council and one of Cambridge University’s most ‘inspirational and successful women in science’. During her PhD she was awarded a Cambridge University Fellowship and as an undergraduate received three University Prizes as Best Biologist.

THE BAD SMELL IN FINANCIAL SERVICES

MANAGERS AND LEADERS IN SOME OF AUSTRALIA’S MAJOR FINANCIAL INSTITUTIONS ARE LEARNING SOME PAINFUL (AND VERY PUBLIC) LESSONS

 by Sam Bell FIML

IML’s general manager – corporate services and research

  

They say a fish rots from the head. If that’s true, the stench coming from the top of some of Australia’s largest financial services companies is overwhelming. As with many pundits looking from afar, I’ve been appalled by the findings unearthed by the ongoing Hayne Royal Commission into the financial services sector. Not that it should come as a shock; over many years the industry has repeatedly broken laws and acted immorally, from the bank bill swap rate scandal to the anti-money laundering case, lax compliance breaches, poor financial advice and criminal cartel charges – these are systemic problems across an industry rather than one-off bad eggs acting in isolation.

Of course, the tax payers of Australia would be pleased to know they offer the worst offenders – the four major banks – an implicit government guarantee over their deposit base. A luxury afforded to no other non-government private or public company.

It’s an indictment on the leaders of these organisations that they accept, or willfully ignore inside their organisations, a culture that permeates “poor financial advice, dubious lending practices, mis-selling of financial products, ongoing compliance breaches and an undermining of community trust” (The Australian Prudential Regulation Authority’s words, not mine). How did it come to this?

 

leaders asleep at the wheel

The recent APRA report that examined the frameworks and practices in relation to governance, culture and accountability within CBA was a particular eye-opener – and a must-read for all directors and management executives. It was scathing of a board asleep at the wheel, with inadequate oversight and challenge by board members, unclear accountabilities on executive committees, overly bureaucratic decision-making that favoured collaboration rather than effective outcomes, a poorly practised risk management framework that was under resourced, and a remuneration structure that offered little punishment for senior managers when poor risk or customer outcomes materialised. 

Interestingly, the APRA report found an organisation where everyone said yes to each other. While a collegiate and trusting environment was established, it appears there was little enthusiasm to constructively challenge decisions or raise alarm at matters going on inside the bank. As a result, the report concluded, “the senior leadership was slow to recognise, and address, emerging threats to CBA’s reputation”.

 

we can’t trust the cosy club

No wonder community mistrust of large business is so widespread. They see enormous salaries being paid (the former AMP Chair was on $660,000 per year) to some individuals who are seemingly unaware of commonly accepted moral standards. All this at the same time as wage growth is barely outpacing the inflation rate for the majority of workers.

There is also a perception of a “directors club” operating in Australia and a raft of senior board appointments selected from a small gene pool. As Federal Treasurer Scott Morrison put it, “the public sees a club that comes with directorships in Australia that creates a coziness that’s not very helpful”. While there’s community outrage, the public are not demanding blood on the streets just yet.

It might all be too late for the younger generation. The latest Deloitte Millennial Survey identifies some worrying views on business motivations and ethics. This year’s results show that fewer than half of respondents (45%) believe business has a positive impact on society. In other words, 55% of millennials believe business has a net negative impact on society. I’m in no doubt the headlines, scandals and rotting fish that’ve been widely broadcast recently have contributed to these disturbing results.

The belief that businesses behave ethically suffered a 19% fall in the survey. Deloitte also uncovered a 30% decline in the belief that business leaders are committed to helping improve society. This all coming from our next generation of leaders.

The final outcome of the Hayne Royal Commission is anyone’s guess. There’s no doubt that as the Commission traverses its way through winter and spring there’s going to be a lot more pain inflicted on what were once some of Australia’s most trusted brands. The revelations of customer mistreatment and illegality will continue to dominate the 24-hour news cycle and further erode the community’s confidence in many of our business leaders.

 

RADICAL RESTRUCTURE REQUIRED

Further unpacking APRA’s report into the CBA, it made 35 recommendations (all have been accepted by the CBA’s leadership team) including a more rigorous board and executive committee level governance of non-financial risks, embedding accountability standards, raising the authority of the compliance functions, and making two key changes to culture: asking the question of “should we” in relation to all dealings with and decisions on customers, and a cultural change that “moves the dial from reactive and complacent to empowered, challenging and striving for best practice in risk identification and remediation”. Sound advice.

So where to from here? Malcolm Broomhead, Chair of Orica and a non-executive director of BHP summed it up well when speaking to the Australian Institute of Company Directors, noting: “We need to somehow rebuild that trust and significant radical restructuring of boards and companies – particularly in relation to remuneration structures – is central to that process”.   

 

MAKE YOUR MARK. GO CHARTERED 

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