ReportWire

Tag: Cognitive bias

  • What Age Do Leadership Abilities Peak? A New Study Offers a Surprising Answer 

    If you’re a fashion model or a professional athlete, you’ll probably reach your professional peak before age 30. Research confirms genius wonderkinds in fields like math also tend to reach the pinnacle of their careers early too. But how about leaders? At what age do leadership abilities peak? 

    It’s a question that doesn’t lend itself to a clear answer. Sprint speeds are simple to measure, and we all have firsthand evidence of the toll time takes on our bodies. But leadership excellence requires a complex bundle of skills, including raw intellectual horsepower, emotional intelligence, wisdom, and accumulated experience. 

    Measuring all those traits, figuring out at what age they usually peak, and bundling that information together meaningfully is a complex task. But it’s one a team of researchers recently tackled. The end result is an estimate of when leaders are generally at their best. The results might surprise you. 

    The 16 skills that make a great leader 

    What does it take to be a great leader? According to University of Western Australia psychologist Gilles Gignac, the answer is a combination of no less than 16 different traits and skills. For their recent research, Gignac and his collaborators sifted through previous studies to determine the key abilities for leadership success and compiled a list, including: 

    They then looked at previous studies that measured these traits at different ages to see when people’s performance peaked. The accumulated evidence showed that some, like raw intellectual processing power, are strongest when we’re young. Others, like conscientiousness, just keep going up well into our seventh decade and beyond.

    But when do we have the best bundle of mental abilities to give us the best shot at leadership success? Combining all these factors, the researchers were able to estimate the age at which people hit peak leadership ability on average. What did they find? 

    “Overall mental functioning peaked between ages 55 and 60, before beginning to decline from around 65,” reports Gignac in The Conversation. “Our findings may help explain why many of the most demanding leadership roles in business, politics, and public life are often held by people in their fifties and early sixties. So while several abilities decline with age, they’re balanced by growth in other important traits.”

    Leadership abilities peak at 55-60?

    In a culture that fetishizes youth (and allows some leaders to continue way past when they should), the fact that our overall mental and leadership ability peaks right before retirement age might come as a shock. But there is plenty of other research that suggests Gignac’s study isn’t some crazy outlier. 

    One of the clearest comes from the field of entrepreneurship. Top founders are often portrayed in the media and on magazine covers as hoodie-wearing twenty-somethings. But an analysis of exits of investor backed companies show the average age of a successful startup founder is actually 47. That’s a lot closer to Gignac’s peak than it is to the current cultural stereotype.

    Another recent Stanford study tracked the performance of individuals on various cognitive tests over decades and found that overall intelligence tends to peak in your 40s. If you continue to stay intellectually active your intellectual skills don’t decline until retirement age. Other research has found self-esteem, empathy, and conflict resolution skills all keep improving deep into middle age

    Time to check your biases

    All of this should comfort you if you’re worrying that you’re intellectually over the hill. Yes, we gain wrinkles, aches, and memory lapses as we add more candles to our birthday cakes. But science is pretty clear that, on average, we gain more than we lose intellectually. 

    But if the results are a comfort to middle-aged professionals hoping to stay on top of their game, they are also a caution to employers. Gignac stresses that his findings should nudge companies to take a hard look at any age-related biases in their organization. 

    If you’re running an NFL team, ageism might make sense. But in most instances, the idea that people lose a step as they get older is probably costing you talent. As Gignac concludes, “Perhaps it’s time we stopped treating midlife as a countdown and started recognizing it as a peak.”

    The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

    Jessica Stillman

    Source link

  • The Biggest Challenges Women Entrepreneurs Face | Entrepreneur

    The Biggest Challenges Women Entrepreneurs Face | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    The challenges faced by women-owned businesses are myriad, well-known and documented. Things
    like access to capital, lack of resources and a lack of mentors — just to name a few. But what no one talks about is the resistance women-owned businesses face when we simply ask to get paid for our products and services.

    As a women-owned business, an ecommerce accelerator program and an online sales channel developed to support other women-owned businesses, the first question I am asked in 95% of conversations with potential investors, customers and partners is: “Are you a non-profit?”

    When I answer with a definitive “NO,” the responses are predictable: First, “That’s a shame because we are always looking for non-profit organizations that support women with investing, technical support, etc.” The second most common response is: “Great! But we don’t have any budget. We love your work and would like to support you in other ways.”

    The final type of response may be the worst of all. It goes something like this: “Wonderful! We are excited about your service or product and would love to use it. But we will need you to provide the first order at no cost.”

    Related: 4 Strategies to Empower Women in the Workplace

    It is a mystery to me that savvy businesspeople continue to believe, or assume, that women-owned businesses are either charities or that we don’t incur costs in developing or delivering our products or services.

    There are basic costs built into any business, but there seems to be a lack of recognition that, like any other business, women-owned businesses must charge for their services and products to cover their costs, grow their businesses and even (gasp) make a profit.

    I have been an entrepreneur for several years and have had the opportunity to work with both men-owned and women-owned businesses. In my experience, the conversations I just described are a rare
    occurrence for those businesses owned and run by men.

    Related: What Do We Tell Young Women Considering Entrepreneurship? Here are 6 Key Messages to Share

    They are virtually never asked if their businesses are not for profit; they are most often paid for trial programs or products, and there is little expectation that they would lose business if they don’t add on products or services for free. This is not a new issue, and I’m sure this is often self-inflicted by women business owners.

    When challenged on price, it is not uncommon for us to apologize or change the terms of the offer. We are often plagued with self-doubt and assume our products or services must not be worth it. I also want to recognize that women doing business with one another can be the largest source of this inequity.

    Many times, women don’t want to pay other women and devalue their businesses. I attribute this to the sense of scarcity that women in business have come to expect and the competitive environment that mindset fosters. When you are fighting over a tiny slice of the pie, it’s hard to value the feast.

    Women-owned businesses need to be paid equally for the products and services they provide. Economic development happens when businesses sell products, invest in buying additional materials, hire employees and spend in their communities. Not paying these businesses the full value of their products or services is just as impactful as a lack of access to capital.

    Related: 3 Ways Women Founders Can Leverage Their Value on Women’s Equality Day — and Beyond

    How much growth could we unleash in our economy if women-owned businesses, who, despite these headwinds, still manage to outperform most of the market, weren’t met with this price resistance? How many women-owned businesses have closed down in response to pressures to underprice and over-deliver? How many employees were not hired? How many new businesses were never able to get off the ground?

    The next time you are negotiating with a woman-owned business, please be aware of your own potential bias and assumptions. The data has shown for years that women-owned businesses positively impact the overall economy and often outperform the market. Women, like men, are in business for many reasons, but they won’t remain in business if their products or services are undervalued. Pay her for her products and services. You will be contributing to positive economic growth, gender equity, and simply playing fair.

    It’s vital to recognize and address the subtle biases and assumptions that perpetuate the challenges faced by women-owned businesses. The resistance to paying women-owned businesses fairly for their products and services is a significant hurdle contributing to economic disparities.

    By acknowledging the value women entrepreneurs bring to the market and compensating them appropriately, we can foster economic growth, empower women in business and work towards achieving a more equitable business landscape. It’s time to challenge the status quo, break free from ingrained biases and build a business environment where women-owned businesses can thrive without being undervalued or underestimated.

    Kate Isler

    Source link

  • 5 Areas Where Every Business Should Be Using Cognitive AI Today | Entrepreneur

    5 Areas Where Every Business Should Be Using Cognitive AI Today | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Artificial intelligence (AI) has made significant advancements recently, with AI systems driven by perceptual intelligence already being utilized to varying degrees in many industries. However, perceptual intelligence is not everything. In fact, the true potential of AI lies in cognitive intelligence, and there are still big challenges to overcome on that front.

    That being said, cognitive AI offers many opportunities and has the potential to revolutionize industries by enhancing the efficiency, precision and user-friendliness of processes and services. But, since this field is constantly evolving, adoption is still lacking.

    However, to truly maximize the potential benefits of cognitive AI, companies need to implement it and start building domain-specific, highly relevant databases. And there are many areas where AI is already gaining significant traction. Here are five key areas where every company can leverage cognitive AI’s power.

    Related: Nearly 3 out of 4 Marketing Professionals Use AI to Create Content, New Study Shows

    1. Generating insights through automated data analysis

    The global data volume being created annually is expected to reach around 175 zettabytes to 180 zettabytes by 2025. With such a copious amount of data being created and processed each year, companies are, unsurprisingly, inundated with vast amounts of information they have to process. This data can be challenging to interpret and utilize effectively.

    Since cognitive AI excels in data analysis, companies implementing a cognitive computing system can easily derive valuable and accurate insights from complex datasets, enabling faster data-driven decisions. Businesses can also leverage machine learning algorithms and cognitive computing to identify trends and patterns while keeping costs low efficiently.

    Domain-specific databases are crucial for this since they provide relevant data that is tailored to specific industries or sectors, including structured and unstructured data. This enables AI systems to learn based on domain-specific knowledge, leading to more accurate and actionable insights.

    2. Enhancing cybersecurity and preventing fraud

    As the digital landscape constantly shifts, digital threats also continue to evolve. Further, with data taking up such a prominent spot in today’s world, the legislative landscape is also ever-changing. Data privacy and protection laws, like the GDPR, CCPA and the PIPL, have been passed around the globe and are constantly getting adjusted.

    Consequently, companies are faced with mounting challenges when it comes to data privacy and security. Cognitive AI offers a powerful defense mechanism against cyber threats due to its ability to analyze massive amounts of data in real time, enabling it to identify patterns of malicious behavior and predict potential security breaches. Additionally, it can help companies adapt and adhere to changing regulations.

    The global market for AI-based cybersecurity products amounted to roughly $15 billion in 2021, and it is forecast to reach a value of around $134 billion by 2030. With cyberattacks on the rise, the advanced protective capabilities of cognitive AI are now necessary to protect consumer and corporate data.

    Related: 4 Simple Ways To Leverage AI Skills For Passive Income From Home

    3. Onboarding and managing employees

    Employee onboarding, training and management are essential tasks that cognitive AI can greatly enhance. By streamlining and automating these processes, companies can free up valuable time for their human resources departments to develop and implement more efficient strategies.

    With cognitive AI, companies can identify top talent and match candidates with job requirements to improve the efficiency and effectiveness of onboarding, training and employee management. Additionally, it can be utilized to create personalized employee experiences, which can improve the productivity and satisfaction of employees.

    Related: How to Keep Employees Engaged and Productive in the Age of AI

    4. Cognitive AI to enhance customer engagement

    Customer engagement is crucial to any business, and cognitive AI can greatly improve the customer experience. For example, intelligent chatbots and virtual assistants can increase customer satisfaction and drive engagement by quickly and accurately analyzing customer queries, understanding context and providing personalized responses.

    Additionally, cognitive AI enables companies to offer real-time support at any time of the day while massively reducing wait times. Further, it can help streamline the experience by providing businesses with insights into consumer behavior to increase the efficiency of customer interactions in their contact and service centers.

    Not only does this increase customer engagement and satisfaction, but it also reduces support costs. According to Gartner, conversational AI alone will reduce global contact center costs by $80 billion in 2026. Xiao-I has already been enabling banks to build cheaper and more effective contact centers with its AI technology for nearly a decade.

    Cognitive AI is also increasingly being deployed to improve various finance services, such as algorithmic trading, asset management, or blockchain-based finance. Further, global IT spending by insurance companies on cognitive AI reached more than $570 million in 2021, representing a nearly 700 percent increase from 2016. So, not only is cognitive AI improving customer engagement, but it is also improving the services offered to consumers.

    5. Optimizing supply chain management

    Supply chain management is a complex process that involves numerous interconnected internal and external actors. Companies can utilize cognitive AI to optimize supply chain management through data analysis and process optimization.

    Cognitive AI can help companies optimize inventory management and reduce costs by predicting demand and improving supply chain visibility. Additionally, this technology enables businesses to adapt to changes in demand or supply quickly.

    With supply chains around the globe having been plagued with troubles in the past years, the implementation of cognitive AI in supply chain management is a good way to create more agile and resilient supply chains.

    Moving forward, and the future significance of data for AI

    Cognitive AI has the potential to reshape numerous industries by enhancing human capabilities and streamlining processes. While perceptual intelligence has seen significant progress and adaption, cognitive intelligence remains an ongoing pursuit.

    By leveraging cognitive AI in key areas, such as customer service, data analysis, cybersecurity, human resources and supply chain management, companies can unlock immense value and stay ahead in this fast-paced digital era. Among other things, cognitive AI can help companies achieve higher efficiency, accuracy and customer satisfaction.

    So, besides implementing cognitive AI, companies need to start building or acquiring databases that can be utilized for their specific needs. With continued advancements in the sector, embracing cognitive AI is a strategic imperative for companies that are looking to thrive in the digital age.

    Hui (Max) Yuan

    Source link

  • 5 Cognitive Biases That Are Holding You Back | Entrepreneur

    5 Cognitive Biases That Are Holding You Back | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    I like to think of myself as a constant learner. I don’t believe you can make it very far as a leader without humility, and throughout my three-decade career, I have sought out information on how to improve my leadership skills through practically every medium. Books have obviously been a massive component of that, as well as seminars, and more recently, podcasts have become a valuable resource.

    These long-form types of content allow leaders to gain large amounts of knowledge. But I’ll admit that it can be difficult to take in all of the information and find the time to do so. We live in an increasingly fast-paced world, and often our efforts are so focused on being an entrepreneur running a company that we don’t feel we have the time to commit to external growth outside of it.

    This is a mistake. As leaders, we must constantly seek ways to improve our craft — after all, leadership is a skill that must be intentionally honed. Learning by doing is a valid way to become a good leader, but if you want to be truly great, you must take it upon yourself to consistently make conscious improvements.

    That being said, it is important to recognize that short-form articles – like the one I am writing right now – can be just as valuable. They present information in a concise and easily digestible way that can be further researched at a later date if interest is sparked. And with that, I introduce you to cognitive biases.

    Related: How Cognitive Biases Can Impact Your Trading and Investment Decisions

    What are cognitive biases?

    A concept first introduced by researchers in the 1970s, cognitive biases are defined as systematic errors in thinking that occur when people are processing and interpreting information in the world around them and ultimately affect their decisions and judgments. They are our brains’ attempts at simplifying information processing, creating rules that help us in making the thousands of decisions we do each day.

    However, although powerful, the human brain is not flawless. Our attention is limited, and our memories are imperfect, and because of this, subtle biases can creep in and influence the way we see and interact with the world around us.

    Great leaders are those that can consistently take in and evaluate all of the information available to them to make objective, logical decisions. Mistakes are inevitable, but pervasive ones are more often than not the result of biases throwing you off, leading to poor decisions and bad judgments.

    Below I have outlined five cognitive biases I believe most commonly prevent entrepreneurs and their organizations from reaching their full potential.

    Related: Cognitive Biases About Leadership and How to Survive Them

    1. Confirmation bias

    It comes with the territory of entrepreneurship that you will inevitably encounter naysayers who tell you your idea will never work. Whether it be friends, family, co-workers or even people you hoped to do business with, it is the hallmark of a successful entrepreneur to remain driven even when others cannot see your vision.

    However, this can also lead to one of the most common cognitive biases. Confirmation bias is the tendency to seek out and interpret information to confirm existing beliefs or assumptions and disregard contradictory evidence. This lack of objectivity can cause entrepreneurs to be plagued with problems, preventing them from considering alternative perspectives or adapting their strategies based on new information.

    2. Overconfidence bias

    Entrepreneurs who exhibit overconfidence bias tend to have an inflated sense of their own abilities, knowledge, and the likelihood of success. It is important to emphasize that overconfidence bias is not just something that happens to people with massive egos – everybody at one point or another has incorrectly assessed their competencies.

    For example, when asked to rank their driving skill, 93% of Americans said they were better than average. However, 90% of accidents are caused by human error. The perception does not hold up to the facts and statistics.

    When it comes to entrepreneurs, this bias can lead to excessive risk-taking, failure to assess market conditions adequately, and a tendency to overlook potential obstacles or challenges. In short, humility should aspire to more than hubris.

    Related: Are You Dangerously Overconfident?

    3. Anchoring bias

    As an entrepreneur, you may already be familiar with the concept of price anchoring. Price anchoring involves introducing a prospective customer to a higher price at the beginning of a potential sale, whether it’s an undiscounted price or a different product or service with a higher price tag.

    Those who use price anchoring are taking advantage of the anchoring bias. Our first exposure to information significantly influences us, causing us to incorrectly evaluate all subsequent information based on that initial knowledge, even if it doesn’t provide a complete picture.

    When entrepreneurs begin down a path based on limited initial research without considering other options, we can fall victim to anchoring bias. We may fixate on a specific reference point or starting value and fail to adjust our judgments or strategies based on additional information. This can limit creative problem-solving and hinder adaptive decision-making.

    4. Availability bias

    This bias refers to the tendency of entrepreneurs to rely heavily on readily available or memorable information when making judgments or decisions. A fascinating example of this lies in the fact that shark attacks save lives statistically. An analysis of deaths in the ocean near San Diego found that every time a shark attack killed a swimmer, the number of drownings would decrease for a few years. This is because reports of death by shark attack are remembered more vividly than reports of drownings.

    For entrepreneurs, availability bias can lead to an overemphasis on recent experiences or anecdotal evidence, potentially causing them to overlook valuable insights or neglect to comprehensively analyze the situation at hand. As leaders, we must work to dig deeper and not simply accept information because it is easily accessible.

    5. Sunk cost fallacy

    In 1996, two expeditions attempted to summit Mount Everest. Although conditions on the mountain continued to deteriorate, those climbing had spent years training and thousands of dollars in preparation for that day, so they decided to continue onwards and upwards. Both expeditions never made it to the top or off the mountain.

    On a much less dire level, we have all fallen into the sunk cost fallacy trap at some point, such as when we don’t like what we cooked for dinner but eat it anyway because we spent money on the ingredients and put the time into making it.

    Entrepreneurs affected by this bias have stakes somewhere between the two. We persist with a failing project because we have invested significant time, effort or resources into it, continuing to allocate resources even when evidence suggests it isn’t a viable or profitable endeavor.

    One of the hardest pills for any entrepreneur to swallow is realizing that we are getting in our way. Cognitive biases are tricky to overcome precisely because they are designed to put up our blinders and prevent us from seeing things objectively. The first step in doing so is to recognize the patterns they make in our lives simply. The next is to do something about it.

    Hanif Lalani

    Source link

  • Amazon Uses These Psychological Tricks To Take Your Money on Prime Day | Entrepreneur

    Amazon Uses These Psychological Tricks To Take Your Money on Prime Day | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Brace yourselves, dear navigators of the e-commerce maze, as we embark on an exploration of the monumental spectacle of retail that is Amazon Prime Day. Much like the gladiatorial combats of ancient Rome, it’s a thrilling spectacle fraught with both promise and peril. And it’s your cognitive biases that often play the role of both the lion and the gladiator, pitting you against yourself in a fierce battle of wit and will.

    Trap 1: The confirmation bias chimera

    Picture this: you’re browsing through Amazon’s tantalizing offerings and you stumble upon a particularly appealing set of steak knives, which you’ve convinced yourself are just the upgrade your kitchen deserves. Never mind that you’ve managed perfectly well with your current cutlery for years, the deal seems too good to pass up.

    This, my friends, is the confirmation bias chimera, rearing its misleading head. In this case, confirmation bias leads you to seek and believe information that supports your existing predilections, while ignoring anything that contradicts them. Suddenly, every review sounds like an ode to these new knives, all the while downplaying the possible utility of your old set. The antidote? Simple: approach each deal with an open mind, always willing to challenge your preconceived notions.

    Related: You’re Probably Falling for All of Amazon Prime Day’s Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.

    Trap 2: The attentional bias abyss

    Clicking through the alleys of Amazon’s discounts can sometimes feel like trying to find a needle in a haystack, only for the haystack to be filled with dozens of distracting shiny objects. This is the attentional bias abyss, a trap that lures you into focusing only on aspects that catch your fancy while sidelining the not-so-glitzy details.

    Your eyes light up at the sight of an enormous discount on a flashy 4K TV, but fail to register the hefty fees for peripherals, or perhaps the inferior brand reputation. The way out of this abyss? Be a vigilant explorer. Make it a point to scrutinize every detail before you click “Buy Now.”

    Trap 3: The anchoring bias albatross

    Who hasn’t fallen for the classic “discounted from a staggering price” trope? You see a blender originally priced at $200 now selling for $100, and you’re convinced it’s a steal. This is the work of the anchoring bias albatross, forcing you to base your judgments and decisions on the first piece of information you encounter.

    But what if the blender’s real value is closer to $80, and it’s been artificially inflated to trick your cognitive biases? The defense? Make sure you do your market research before Amazon Prime Day arrives. Knowing the true worth of an item can keep the albatross at bay.

    Related: 3 Ways New Amazon Sellers Can Stand Out From the Crowd on Prime Day

    Trap 4: The loss aversion leviathan

    The loss aversion leviathan feeds on your fear of missing out. The Prime Day deal will disappear on July 12! The ticking clock nudges you into a hurried purchase. You’d rather not risk the regret of missing out on the deal, even though you don’t truly need the item.

    The beast of loss aversion leads you to value the avoidance of losses over equivalent gains. After all, the sting of losing $10 often feels stronger than the joy of gaining the same amount. The weapon to slay this leviathan? Practicing self-restraint. Remember, there will always be another deal, another discount, another Prime Day.

    Trap 5: The optimism bias ogre

    Finally, we come face-to-face with the optimism bias ogre, the creature that convinces you that everything will work out in your favor. It’s the force behind your belief that the laptop you’ve just bought won’t turn out to be a dud, or that the designer dress you’ve ordered will fit you perfectly.

    But the ogre’s optimism can lead to disappointment and unnecessary expense. Don’t let the optimism bias cloud your judgment. Make sure to thoroughly research products, read customer reviews, and double-check your sizing before making a purchase.

    Conclusion

    Avoiding these cognitive traps on Amazon Prime Day requires both awareness and strategy, but with these tools in your arsenal, you can conquer the event like a seasoned gladiator, with your wallet — and your sanity — intact. Step forth into the arena, armed with the knowledge of your cognitive biases, and claim the spoils of retail victory!

    Gleb Tsipursky

    Source link

  • Remote Work Skeptics Are Forgetting Their Most Valuable Asset. Here’s Why. | Entrepreneur

    Remote Work Skeptics Are Forgetting Their Most Valuable Asset. Here’s Why. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    While there’s a widely-held belief that three days a week in the office is the magic number, with a number of large companies adopting it, it’s a fundamentally flawed approach. Instead, what leaders need to focus on is how hybrid work arrangements will serve customer needs.

    A Columbia Business School study reviews a text analysis of earnings call transcripts of S&P 500 companies to show that company executives talk about customers 10 times more often than employees – a number that has grown over the last 15 years. Additionally, when companies discuss employees, executives are more likely to correlate them to risk factors and consumers to growth opportunities.

    Ironically, executives fail to put this focus into action when figuring out their return to office and hybrid work policy. For example, a survey of 1,300 knowledge workers found that only 28% said their company is making it worthwhile to commute to the office. No wonder: while there’s a widely-held belief that three days a week in the office is the magic number — with a number of large companies adopting it — it’s a fundamentally flawed approach.

    Instead, what leaders need to focus on is how hybrid work arrangements will serve customer needs. It might be that three, four, five, two, one, or no days in the office works best for your customers. But the key is to prioritize customer needs in creating a successful hybrid work plan and business leaders need to build their strategies around this focus.

    As a globally-renowned expert in the future of work who helped 22 organizations figure out their hybrid and remote work policies, I can tell you confidently that this is the biggest mistake companies make in hybrid work. Namely, they fail to “start with why” and don’t work from the end goal back to the policies required to make it happen for the sake of customer success.

    Debunking the myth of the three-day work week

    The assumption that having employees in the office for three days a week is the optimal solution for hybrid work is misguided. This one-size-fits-all approach fails to consider the unique needs of the customers.

    The three-day work week emerged as a popular solution amidst the uncertainty of the pandemic. As companies experimented with hybrid work models, this arrangement appeared to strike a balance between the benefits of remote work and the need for in-person collaboration. However, the adoption of this model by numerous organizations has led to the misconception that it’s universally applicable.

    The effectiveness of a three-day work week varies significantly across industries and roles. For instance, in sectors like software development or creative services, a greater degree of remote work might be feasible without any loss in productivity or sacrifice of customer needs. On the other hand, industries or functions that rely heavily on in-person interactions, such as sales, may require more on-site presence to maintain customer service quality. A tailored hybrid work strategy takes these industry and role-specific considerations into account, ensuring that the work arrangement aligns with the inherent demands of the sector.

    Instead, leaders should adopt a more agile approach, one that prioritizes customer needs and adapts to the ever-evolving business landscape.

    Related: A New Remote Work Trend is Helping Employers Retain Talent Amid Labor Market Pressures

    Understanding your customers

    The first step in crafting a customer-centric hybrid work plan is to gain a deep understanding of your customers’ expectations and preferences. This involves examining customer feedback, conducting market research and engaging in open dialogue with your clients. By understanding their needs and preferences, you can tailor your hybrid work arrangements to better serve them.

    For instance, a company providing technical support services may discover that their customers highly value prompt responses to their inquiries. In this case, adopting a hybrid work model that ensures adequate staffing during peak hours, regardless of employee location, would be critical in meeting customer needs.

    Indeed, one of my clients who does provide such services found that it was more helpful to have staff working remotely most of the work week. That’s because most employees were much more willing to work non-standard hours when they worked remotely. Thus, the company was better able to provide customer support during a longer time period with faster responses by having shifts during non-standard working hours. Still, customer service staff came into the office one day a week, to make sure there was someone available for the rare occasions when customers came to the office in person.

    It’s not surprising, right? My own LinkedIn survey found that 80% of respondents worked more non-standard hours in remote work, compared to in the office, as staff are more willing to work longer and less standard hours if they don’t have to waste time commuting to the office.

    Aligning hybrid work with customer expectations

    Once you’ve identified your customers’ needs, it’s essential to align your hybrid work arrangements accordingly. This might mean rethinking your assumptions about the optimal balance of remote and in-office work for various roles.

    Consider a B2B professional services organization that has long relied on face-to-face meetings and events to build relationships with clients. With the rise of remote work, many of their clients might now prefer virtual meetings, necessitating a shift in the sales team’s approach. In this case, a hybrid work model that offers greater flexibility in how and where employees work could better cater to changing customer preferences.

    That was the case for one of my clients, a law firm. Their leadership initially assumed that, as the pandemic wound down, their clients would want to shift back to in-person meetings. But I strongly encouraged them to actually survey their clients rather than act on their assumptions. And what the law firm found was that plenty of clients preferred videoconference meetings for most interactions. That’s because it was quicker, more convenient, and cheaper to set those up than to have in-person meetings. Sure, in-person meetings were still king for more intense and nuanced discussions, but clients preferred most day-to-day meetings to happen by video conference.

    A customer-focused hybrid work plan should include mechanisms for measuring success and adapting as needed. Regularly assess the effectiveness of your hybrid work model in meeting customer needs through customer satisfaction surveys, feedback sessions, and other metrics. Use this data to make informed decisions on adjustments to your strategy.

    For instance, if customer feedback suggests that response times have increased since the implementation of your hybrid work model, consider adjusting staffing levels or redistributing tasks to better serve your clients. Consider an example shared with me by the Chief Human Resource Officer of a rural healthcare system with several hospitals in a Midwestern state. While they have many workers on a hybrid and even fully remote modality, they encountered an issue with the case management department and utilization review, who were working remotely. They had to bring them back into the office as they realized the importance of having them work alongside the hospitalists for their in-patients. It was crucial for ensuring proper discharge planning and smooth transition care, which they found couldn’t be achieved as well remotely. This is an example of how they couldn’t make hybrid work satisfy their patients and changed the location of staff to prioritize patient needs.

    Cognitive biases: The hidden barrier to customer-centric hybrid work plans

    Cognitive biases, which are dangerous judgment errors that cause bad decision-making in everything from our work life to our relationships, often undermine effective hybrid work arrangements. One cognitive bias that can impede the shift towards a customer-centric hybrid work plan is the status quo bias. This bias refers to the tendency to prefer the current state of affairs over any changes, even when the potential benefits of the change outweigh the risks. In the context of hybrid work, the status quo bias may lead leaders to cling to traditional in-office work arrangements or to adopt the popular three-day work week without considering whether these options genuinely serve their customers’ needs.

    To overcome the status quo bias, business leaders should critically evaluate their existing work arrangements, seeking objective data and feedback to determine if the current model effectively meets customer expectations. By doing so, they can make more informed decisions about the optimal hybrid work model for their organization.

    Another cognitive bias that can hinder the development of a customer-centric hybrid work plan is confirmation bias. This bias refers to the tendency to search for, interpret and remember information in a way that confirms one’s pre-existing beliefs or assumptions. In the context of hybrid work, confirmation bias may lead leaders to focus solely on evidence that supports their views about the ideal work arrangement, while ignoring or dismissing information that contradicts those beliefs about what customers actually need.

    To counteract confirmation bias, business leaders should actively seek diverse perspectives and opinions, both within and outside their organization. By engaging in open dialogue with employees, customers, and industry experts, leaders can gather a more balanced and comprehensive understanding of the factors that impact hybrid work success. This enables them to design a work model that genuinely prioritizes customer needs, rather than simply conforming to their pre-existing beliefs.

    By recognizing and addressing the influence of cognitive biases in shaping hybrid work decisions, business leaders can develop more customer-centric strategies that genuinely serve the needs of their clients. This awareness, combined with a commitment to continuous improvement and transparent communication, paves the way for a successful and adaptive hybrid work environment.

    Conclusion

    The key to a successful hybrid work plan lies in prioritizing customer needs above all else. By debunking the myth of the three-day work week and adopting a more agile approach, business leaders can create tailored strategies that truly cater to the unique needs of their industries, teams and customers.

    Understanding your customers’ expectations and preferences, aligning hybrid work arrangements with those needs, and empowering your team to deliver exceptional service are vital steps in designing a customer-centric hybrid work plan. Transparent communication and a commitment to continuous improvement through measuring success and adapting as needed further solidify your organization’s ability to navigate the complexities of hybrid work.

    Ultimately, by placing customer needs at the forefront of your hybrid work strategy, you can foster a thriving work environment that supports both employee satisfaction and customer success. By embracing this customer-centric approach, business leaders can ensure their organizations remain agile, adaptive, and prosperous in the ever-changing landscape of the modern workplace.

    Gleb Tsipursky

    Source link

  • How The AI Revolution Is Liberating Workers from the Office | Entrepreneur

    How The AI Revolution Is Liberating Workers from the Office | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    The question “do we really need to go to the office?” is something many employees are asking in the face of the leadership at major companies like Amazon, Apple, Disney, Starbucks, and JP Morgan mandating three or more days a week of office-based work. Employees are adamant that they are doing their jobs effectively at home, and data supports the improved productivity of remote work. But many leaders feel concerned about a range of issues, from problematic communication and coordination to cybersecurity, which they feel remote work undermines.

    However, with the advent of generative AI like ChatGPT, we are on the cusp of realizing the full potential of remote and hybrid work by reducing — while not eliminating — the benefits of office visits. AI is not just a futuristic buzzword; it’s a transformative force that’s reshaping the workplace and redefining the meaning of work itself.

    I talk to five-ten leaders each week about hybrid and remote work, and in recent months, our conversations have centered on how generative AI can help us unlock the full power of remote and hybrid workforces. That includes enabling more effective information sharing, enhancing communication and collaboration, improving productivity and efficiency, supporting knowledge management and skill development and ensuring security and privacy.

    Related: Rein in the AI Revolution Through the Power of Legal Liability

    Communication and coordination

    No more watercooler gossip, but who needs it when AI-powered tools can help us share information and coordinate more effectively than ever? AI-driven applications reduce the need for physical office spaces, making remote work a breeze by facilitating instant access to relevant data and documents, streamlining communication channels for optimal collaboration, and providing intelligent recommendations for meetings, resources and priorities. Imagine your office as a well-orchestrated symphony, with AI as the virtuoso conductor.

    By integrating AI into information-sharing systems, remote workers can quickly locate the necessary resources to complete their tasks, reducing the time spent searching for documents or waiting for colleagues to respond to queries. This efficient distribution of knowledge empowers employees to work independently while still maintaining a sense of connection to their colleagues and the organization as a whole.

    Loneliness and isolation can be remote work’s kryptonite, but AI comes to the rescue with innovative solutions that empower communication and collaboration. By harnessing the power of AI, remote workers can leverage smart tools to enhance video conferencing, document sharing and project management. AI can help remote workers video conference like pros by adjusting factors like lighting, the background image and even the “smoothness” of participants’ faces. This helps remote workers look their best on camera and ensures that they can put forward a consistent, professional appearance. AI also makes live video conferences more efficient by providing features like real-time transcription, translation and captioning.

    Productivity and teamwork

    Furthermore, AI-driven platforms can match skillsets and interests for optimal team formation, creating virtual teams that work harmoniously to achieve common goals. Remote workers can engage in peer-to-peer learning and mentoring through AI-curated content and resources, fostering a sense of camaraderie and encouraging the exchange of valuable knowledge and experience. Say goodbye to the lonely freelancer and hello to a thriving, interconnected remote workforce.

    AI is a productivity powerhouse that can free remote workers from the shackles of repetitive tasks, allowing them to focus on higher-value activities. With AI’s help, remote workers can automate mundane tasks and streamline workflows for maximum efficiency. By analyzing patterns in employee behavior and performance, AI can identify areas for improvement and provide tailored recommendations for optimization. This enables remote workers to manage their time effectively and prioritize tasks in a way that maximizes productivity and minimizes burnout.

    In a remote work environment, knowledge is power, and AI is the key to unlocking it. AI empowers remote workers to access and share knowledge by identifying experts and curating relevant content tailored to individual needs. By utilizing natural language processing and machine learning, AI can understand queries and provide personalized answers, enabling remote workers to access timely and relevant information. AI can also curate and organize information from various sources and present it in a user-friendly way, streamlining the process of locating and absorbing knowledge.

    AI supports skill development by personalizing learning paths and offering customized resources for remote workers. By analyzing individual strengths, weaknesses, and interests, AI can recommend targeted training programs and learning materials that enable remote employees to continually expand their skillsets and stay competitive in the job market. AI also facilitates the exchange of best practices, feedback and advice among peers, creating a supportive and growth-oriented remote work environment.

    Related: How Artificial Intelligence is Transforming Employee Productivity

    Cybersecurity and privacy

    Remote work often raises concerns about data security and privacy, but AI has our backs. AI-powered tools can help ensure the security and privacy of remote workers by detecting and preventing cyberattacks with advanced threat intelligence. By continuously monitoring networks and devices for any signs of unauthorized access or malicious activity, AI can quickly identify potential vulnerabilities and neutralize threats before they escalate.

    Additionally, AI can encrypt data and enforce policies to safeguard sensitive information, ensuring that remote workers can confidently access and share company resources without compromising security. This is especially important in industries that handle sensitive data, such as finance and healthcare, where a security breach could have severe consequences.

    Health and wellbeing

    AI can also improve the wellbeing and quality of life of remote workers by monitoring health indicators, providing feedback and reminders and predicting mental health issues. By analyzing data from wearables and other health monitoring devices, AI can provide personalized recommendations for maintaining physical and mental wellbeing. This might include suggestions for exercise, diet and sleep, as well as reminders to take breaks and practice stress-reducing techniques.

    By identifying patterns of behavior that may indicate burnout or other mental health concerns, AI can alert remote workers and their managers to potential issues before they become serious problems. This proactive approach to mental health can help create a healthier and more supportive remote work environment, fostering long-term employee satisfaction and retention.

    Managing AI risks

    While the benefits of generative AI for remote and hybrid work are immense, it’s important to recognize and address the potential risks associated with the widespread adoption of AI technology. By proactively managing these risks, organizations can confidently harness the power of AI to revolutionize the way we work.

    One potential risk is the legal liability associated with AI-driven decisions and actions. As AI systems become increasingly sophisticated and autonomous, questions arise about who is legally responsible when an AI system makes an error or causes harm. Organizations must take steps to ensure that clear guidelines and regulations are in place to determine the extent of their liability in such cases, as well as establish robust governance frameworks for AI decision-making.

    Another challenge to consider is the potential for bias in AI algorithms. Since AI systems are trained on vast amounts of data, they may inadvertently learn and perpetuate existing biases present in the data. This could lead to unfair treatment of certain individuals or groups, resulting in legal and ethical concerns. To mitigate this risk, organizations must prioritize transparency, fairness and accountability in their AI systems by conducting regular audits, using diverse training datasets and ensuring that stakeholders are involved in the development and deployment of AI technology.

    Privacy and data protection are also critical concerns when using AI in remote and hybrid work environments. Organizations must ensure that they are compliant with data protection regulations, such as the General Data Protection Regulation (GDPR), and implement robust privacy policies to safeguard personal information. This includes obtaining explicit consent from remote workers to collect and process their data, as well as implementing strong encryption and access controls to protect sensitive information from unauthorized access or misuse.

    Moreover, the reliance on AI technology in remote work may raise concerns about job displacement and the future of work. While AI can automate repetitive tasks and improve productivity, there’s a risk that some jobs may become obsolete, leading to workforce displacement and social disruption. To address this challenge, organizations must invest in reskilling and upskilling their workforce, ensuring that employees can adapt to the changing job landscape and remain competitive in the age of AI.

    Conclusion

    The benefits of generative AI for remote and hybrid work are immense. By enabling more effective information sharing, enhancing communication and collaboration, improving productivity and efficiency, supporting knowledge management and skill development and ensuring security and privacy, AI is revolutionizing the way we work and making it less important than ever to go to the office.

    Still, it’s crucial for organizations to proactively manage the associated risks and ensure legal liability is properly addressed. By doing so, they can confidently embrace AI technology to unlock the full potential of remote and hybrid workforces and pave the way for a more flexible, efficient and fulfilling work experience.

    The future of work is here, and AI is the driving force behind this transformation. As we continue to embrace AI technology, we can unlock the full potential of remote and hybrid workforces and pave the way for a more flexible, efficient and fulfilling work experience. It’s time to embrace the AI revolution and harness its power to redefine the very concept of work, creating opportunities for growth and innovation that extend far beyond the confines of the traditional office space.

    Gleb Tsipursky

    Source link

  • The Surprising Reason Why Many Leaders Are Forcing Employees Back to The Office | Entrepreneur

    The Surprising Reason Why Many Leaders Are Forcing Employees Back to The Office | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    A recent poll of more than 150 U.S. CEOs reveals a startling reason why many companies are enforcing a return to office. The study indicates that many organizations are struggling to foster strong communication, collaboration and team bonding in these environments. As a result, some companies are pivoting back to traditional in-person work models to address these issues and enhance overall workforce engagement. However, is this retreat to familiar territory the best course of action?

    The siren call of the traditional office model

    The poll found that in a 2022 survey, a mere 31% of U.S. businesses functioned on-site. That included those unable to operate remotely due to the nature of their work (such as factories and retail).

    However, this figure experienced a significant increase of nearly 50% in 2023, reaching 46%. As a result, the percentage of hybrid companies dropped from 61% in 2022 to 48% in 2023, while the proportion of entirely remote companies declined from 7% to 5% during the same time frame.

    It’s no secret that humans are creatures of habit. When faced with challenges in unfamiliar territory, it’s all too tempting to return to what we know. That’s precisely what’s happening with companies grappling with remote and hybrid work models. They find themselves in uncharted waters and, rather than learning to adapt, they’re tempted to go back to the cozy confines of the office-centric model.

    Yet, retreating to familiar ground means sacrificing many of the benefits that remote and hybrid work arrangements offer. Let’s take a closer look at what companies stand to lose if they give in to this siren call.

    Related: Why Employers Forcing a Return to Office is Leading to More Worker Power and Unionization

    Giving up the hybrid work goldmine

    The findings are rather unexpected, considering that in 2022, when CEOs were asked if they were content with their chosen work model, 60% of those utilizing remote or hybrid models responded with a “yes.” A barely noticeable 0.5% expressed intentions to revert to in-person work once the pandemic subsided.

    Intriguingly, the 2023 survey revealed that a mere 5% of companies operating with remote or hybrid arrangements reported decreased performance due to the shift. So, this begs the question: what happened?

    The survey describes how an engineering industry CEO stated that offering flexibility indeed makes it much easier to attract and retain talent. However, he said it also demands more effort from leadership across the organization, including a heightened need for intentional communication, collaborative work distribution and relationship cultivation. CEOs have reported difficulties in achieving the same degree of engagement and participation from remote employees as they did from their in-office counterparts.

    Remote and hybrid work arrangements have proven to deliver increased employee productivity, reduced attrition and access to a global talent market. By going back to the traditional in-person work model, companies are willingly turning their backs on these advantages. It’s akin to discovering a goldmine and then deciding to return to panning for gold in a river. Sure, it’s familiar, but it’s also shortsighted and far less lucrative.

    So, what’s the solution? How can companies avoid the pitfalls of remote and hybrid work without sacrificing the benefits?

    I talk to dozens of leaders each month about these issues, and what I inevitably find is that they try to shoehorn their traditional office-centric models of collaboration into hybrid and remote work. Naturally, they find that the result is weakened culture, collaboration, team bonding, communication and so on. The solution is not to go back to the traditional office-centric model.

    The solution is to adopt methods of building culture, collaboration, team bonding, communication, etc. that are a good fit for a hybrid environment. Then, you get the best of both worlds.

    And yes, it does take more effort at first, as the engineering industry CEO quoted in the study stated. Just like it takes some effort to adopt any new system and learn new ways of collaborating. But you get a permanent boost to your ability to attract and retain talent, gain access to talent around the globe, boost your productivity, and improve the morale and wellbeing of your employees permanently — all in exchange for a temporary effort while you’re updating your systems for the new world.

    Related: You Can’t Return to The Office Without Defeating These Four Major Battles

    The cognitive bias trap: How our brains sabotage hybrid work success

    Unfortunately, a major challenge to getting the best of both worlds is the role of cognitive biases in shaping our decisions and perceptions. Cognitive biases are systematic errors in our thinking that influence our judgment, often leading us to make irrational choices. In the context of hybrid work, two specific cognitive biases stand out as particularly detrimental: status quo bias and functional fixedness.

    The status quo bias refers to our tendency to prefer the current state of affairs over change, even when the alternative may be more beneficial. This bias plays a significant role in the reluctance of organizations to fully embrace remote and hybrid work models. Many leaders, influenced by the status quo bias, perceive a return to traditional in-person work as the safest and most familiar course of action. In doing so, they fail to recognize the potential benefits and opportunities of hybrid work arrangements.

    Functional fixedness is another cognitive bias that hinders our ability to adapt to hybrid work environments. This bias refers to the tendency to see objects or situations only in terms of their traditional use or function. In the context of hybrid work, functional fixedness leads organizations to apply conventional office-centric models to remote and hybrid environments, which ultimately results in weakened culture, collaboration, team bonding and communication.

    To achieve success in the hybrid work environment, leaders must take a step back and recognize the impact of cognitive biases on their decision-making. By doing so, they can make more informed choices that drive innovation and growth, allowing their organizations to thrive in this ever-evolving landscape.

    Related: When Office Return Turns Sour: Apple and Twitter’s Struggles Reveal Fractures in Corporate Culture

    Embracing the hybrid work model: A new frontier

    The key to success in the hybrid work environment lies in adaptation. Leaders must learn to build a culture, foster collaboration, improve team bonding and enhance communication in ways that are tailored for remote and hybrid work. It’s not about forcing a square peg into a round hole by applying traditional office-centric models to these new environments. Instead, companies must forge new paths that allow them to enjoy the best of both worlds.

    1. Create a remote-friendly culture

    To thrive in a hybrid environment, organizations must intentionally build a remote-friendly culture. This means recognizing and celebrating the unique strengths of remote and hybrid work, such as increased flexibility, autonomy, and work-life balance. It’s about moving away from the “out of sight, out of mind” mentality and embracing the idea that remote employees are just as valuable and connected as their in-office counterparts.

    2. Rethink communication strategies

    Effective communication is the lifeblood of any organization, and it’s no different in a hybrid work environment. Companies must adopt communication strategies that foster inclusivity and prevent remote employees from feeling isolated. This may include implementing regular video conferences, creating dedicated channels for team bonding activities, and encouraging frequent check-ins between team members.

    3. Leverage technology for collaboration

    The right tools can make all the difference in fostering collaboration and teamwork in a hybrid environment. Organizations should invest in cutting-edge collaboration software, such as project management tools, video conferencing platforms, and file-sharing systems. These tools can bridge the gap between remote and in-office employees, ensuring that everyone remains connected and engaged, regardless of their physical location.

    4. Prioritize team bonding and connection

    To maintain a strong sense of camaraderie and belonging, organizations must prioritize team bonding activities, both in-person and virtual. Consider organizing regular team-building events, such as virtual happy hours, online games or even off-site retreats. By creating opportunities for employees to connect on a personal level, companies can build a sense of unity that transcends the boundaries of the hybrid work model.

    5. Invest in training and development

    One critical aspect of adapting to the hybrid work environment is ensuring that both leaders and employees have the skills and knowledge necessary to thrive. Companies should invest in training programs that focus on remote work best practices, effective communication, and collaboration in a hybrid environment. By equipping their workforce with the right tools, organizations can set the stage for success in this new frontier.

    Related: Hybrid Employees Are More Productive at Home — But This is When You Should Ask Them to Come Into The Office

    The future of work: Embrace the change, reap the rewards

    It’s clear that the solution to the challenges presented by remote and hybrid work is not to return to traditional in-person work models. Instead, companies must learn to adapt and embrace the unique opportunities that these new environments offer. By doing so, they can enjoy increased productivity, reduced attrition and access to a global talent market.

    The future of work is here, and it’s time for organizations to stop running from it. The wise will adapt, evolving their strategies to create a new normal that leverages the strengths of remote and hybrid work models. By doing so, they’ll position themselves for success in an ever-changing business landscape, reaping the rewards that come with embracing the best of both worlds.

    Gleb Tsipursky

    Source link

  • Why Do We Stay in Dysfunctional Relationships? | Entrepreneur

    Why Do We Stay in Dysfunctional Relationships? | Entrepreneur

    Once you realize you’re pouring time into an unsuccessful venture, project or partnership, why is it so hard to exit and invest your time elsewhere?

    Entrepreneur Staff

    Source link