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The Science of Diversity and the Art of Inclusion

In today’s hyper-dynamic world, the ability to solve problems quicker and bring innovations to market is essential to success.  Diversity is the foundation of better problem solving, innovation, and market prediction.  While there has long been anecdotal proof of diversity’s value, a sound mathematical proof was not available until Scott E. Page published The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools and Societies in January of 2007.
The DifferenceLast Wednesday I was fortunate to be spend a few hours with Scott.  Tiane Mitchell Gordon invited Scott to speak at AOL and asked me to join them since we are working together on a new, results-focused diversity and inclusion curricula.  After his presentation, Scott discussed at length how organizations can better leverage the power of diversity to improve performance and compete better in the 21st century marketplace.
Scott’s book is a revelation to any of us who have had to answer the “prove it” question regarding the competitive power of diversity.  Because the book presents a mathematical proof, it is not the easiest read you will pick up on the topic.  Scott is, after all, a professor of complex systems, political science, and economics.  He recognized the power of diversity from an economic perspective – instead of the typical sociology or human resources perspective.  Fortunately, Scott’s eclectic examples and great sense of humor soften his scientific treatise.
Our discussion was wide ranging, but can be boiled down to the title of this post: The Science of Diversity and the Art of Inclusion.  Scott recognized the mathematical power of diversity, but most of the (very good) books on the topic were anecdotal and qualitative (see Frans Johansson’s Medici Effect, Don Tapscott’s Wikinomics, and James Surowiecki’s Wisdom of Crowds).  Scott wrote his book to provide a mathematical equation that equates the power of diversity.  The hope being that quantitative proof would encourage leaders to diversify their teams.  Of course, building a diverse team is just the beginning.  For diversity to deliver competitive advantage, the art of inclusion must be applied to unleash it.  I’ll get to the art of inclusion in a bit, but let’s first finish pondering the science of diversity.
For too long, diversity has been viewed from a “representation” perspective.  Affirmative action, EEOC lawsuits, and representation quotas put organizations into a reactionary mindset of preventative precaution.  Only now are we seeing organizations emerging from this reactionary morass to recognize the strategic value of diversity.  Organizations are proactively courting diversity as a competitive advantage.  And we can see this dichotomy of reactive vs. proactive reflected in the current discussion of “identity diversity” vs. “skills diversity”.
Identity diversity is “old school” – the representation view of diversity using variables such as gender, race, ethnicity, etc.   And it is a two sided coin – both how you view yourself and how others view you.  While this type of diversity continues to be very important to building diverse teams, it may not be as important as skills diversity.  Skills diversity (you can substitute “cognitive”, “experience”, or “perspective” for “skills”) refers to the tools each individual brings to their team.  While the identity variables still apply to skills diversity, it is driven by the multitude of experiences that make us who we are.  A person’s primary language, type of education, level of education, social customs, political beliefs, value system, problem solving methods, work experience, geographic origins, and a host of other variables all contribute to her skills diversity.
With that understanding of diversity, Scott equates the value of diversity.  He mathematically demonstrates how diversity improves problem solving, innovation, and prediction accuracy.  I encourage you to get Scott’s book for the detailed mathematics.  But let’s bring this back to practical application.  If a leader recognizes the importance of both identity and skills diversity, how does she build a diverse team?  Many great minds are working to answer that question and it is what Scott and I spent the most of our time discussing.  We discussed the possibility for new evaluation tools, skills assessments, psychological profiles, etc. These tools could help leaders peer into the diversity of their current team and potential new hires.  But until those tools are readily available and easy to use, leaders will simply need to be diligent in gauging diversity.
No matter how a leader goes about building a diverse team, the team’s potential will never be realized unless the leader also masters the art of inclusion.  A deceptively simple definition of inclusion is “managing a group so that all diverse members are given the opportunity to participate equally.”  But it is more complex than that.  Depending on the team and the goals, the leader will need to artfully use a number of tools to unlock the team’s potential.
And what are the tools of the art of inclusion?  Because this post is already too long and my ADD is begging me to find something else to do, I will leave the art of inclusion for a future post.  A weaselly way to end the post, I know.  But here’s the (probably obvious) teaser: the tools are nothing that most effective leaders don’t already have in their toolbox.

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Learn to Adapt Links for June 23rd through June 27th

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Learn to Adapt Links for June 23rd

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Learn to Adapt Links for May 28th through May 30th

  • All Sites Must Go Social – "Companies are integrating social media applications into their own site to add personalization and create a sense of community." Think of how this can be used to turn any e-learning site into a social learning site!
  • Wasps Reveal Clues about the Evolution of Intelligence: Scientific American – Experts have long suspected that complex social interaction drove the evolution of large brains in humans. Now a study in wasps supports and refines that theory: it seems that dominant individuals have larger brain regions responsible for higher-order cog
  • Web Strategy: The Three Spheres of Web Strategy (and the skills required) – A great graphic model from Jeremiah Owyang about the balance of community, business, and tech needed for successful websites. Like most three-legged stool models, it can be extrapolated to other things such as biz in general.
  • Web 2.0 Executive Bootcamp – Applied Trends – I'm greatly looking forward to joining Scott Gavin for the first delivery of the Web 2.0 Executive Bootcamp in London on 30 September. If you will be in London that time, please join us for a great day of strategic learning.

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Learn to Adapt Links for May 24th

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Learn to Adapt bookmarks for March 5th through March 10th

These are my links for March 5th through March 10th:

  • Phun – 2D Physics Sandbox (Cool – Download This!) – What a great example of discovery learning, playing to learn, and "teaching" advanced concepts on the Web (OK – on the computer). If you have a geek-in-training at home, have her (or him) download this and play – boom – instant physics course.
  • Scope of Learning Responsibility (The Learning Circuits Blog) – I hope to have time to respond to this one soon. I think the responsibility of corporate learning organizations is changing as quickly as the way people learn is – all due to the Web. The new responsibility may be curator.
  • The Social Graph: Issues and Strategies in 2008 – Dion does the crystal ball as to the impact of social networks in 2008. Loads of insight and ideas that can easily be extrapolated to learning. Although, I don't agree on fatigue – people will tire of too many profiles and demand integration.
  • From Push to Pull: Emerging Models for Mobilizing Resources – A lengthy but insightful whitepaper from John Hagel and John Seely Brown from way back in October 2005. It begins (?) Hagels continued discussion of the organizational transformation needed to move from push to pull.

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Web 2.0: Show Me The Money (Part One)

Here is a simple illustration I put together for a client that displays the six primary monetization methods on the Web. Is is a simplification and expansion on a post from Dion Hinchcliffe from awhile back. The only real “Web 2.0” advances in monetization lurk in the “back door” that was opened up using APIs. Recently, Larry Dignan reiterated a common refrain that APIs are the future of Web monetization based on very rough numbers of how much Amazon makes from its numerous Web Services (additional interesting point here). While the numbers are not yet firm they are the only new monetization method that has arisen with Web 2.0. The illustration shows the monetization methods from the traditional “front door” of a Website as well the new opportunities opened up by APIs (all presented simply enough for even the busiest executive):

web2_monetization_02.jpg

And here is a very brief summary of the six methods:
Advertising: The Web site owner sells spots on the website (“inventory”) to advertisers. There are numerous models for this type of monetization. Some are fixed price, some are per displays (“impressions”), other are based on the visitor clicking or taking some other action from the add link. Example: AOL sells premium ad banner locations for up to $500K per day.
Subscriptions: The Web site owner only makes some or all of the content or functionality available to customers who create an account and use a credit card (or other means) to subscribe to use the content or services. Rhapsody.com charges users $10/month to be able to listen to millions of songs from thousand of artists anytime, anywhere (online – additional charge to download a song).
Retail: The Web site sells products or services directly to the site visitor. This is a single transaction as opposed to an ongoing subscription. Example: iTunes makes it money be selling individual songs for download.
Donations: The Web site allows people who find the site’s content or services useful to donate money to keep the service functional. Example: RadioParadise.com is a user-supported online radio station that generates all its revenue from listener donations.
Fees: This is a B2B charge where the Web site makes some or all of its content or services available to other businesses for a fixed fee. Example: Amazon.com opened many of its online merchant functionality to other companies and generated an additional $250M in revenue in 2005.
Commissions: This is a B2B charge where the Web site makes some or all of its content or services available to other businesses and collects a percentage of the other business’ resulting revenue. Example: Google AdSense allows everyone to put Google text ads on their website and get a percentage of the money Google makes from the advertising.
And that is a wrap of the original document. But…
Coming Soon: Web 2.0 Show Me The Money (Part 2) – wherein I revisit the illustration and update it based on recent developments and the great monetization summary article from Professor Michael Rappa. (I will try to get part two up in the next 30 days!). In the meantime, please leave comments especially if you can point out everything I missed!

Posted in: Business, Internet

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Jeff’s del.icio.us bookmarks for February 6th

These are my links for February 6th:

  • Social Network Operating System : eLearning Technology – More great ideas from Tony Karrer. Good point on the obvious need for "transportable open social graph… to leverage across applications." Also I wonder if the distinction of "people" and "content" is valid. Are we just not another form of content on t
  • Five Ways Women Learn – Learning Styles – Lifelong Learning – Interesting article from a book from back in the day. It raises tow questions immediately: How is this different than how men learn? and How does this manifest itself in how women learn from the Web and from collaborative learning?
  • LUNARR – LUNARR Works Smarter – Lunarr has a new take on the Enterprise 2.0 goal of improving collaboration. They take collaborative wiki-like editing and add email-like messaging system that associates messages with those documents.
  • Howcast – Howcast launched today to be the "YouTube of instructional videos." It was started by three ex-GooTube employees. High audience participation: suggestions, voting on ideas, script editing, etc. A possible mecca for learning videos.
  • Time Warner Plans to Split AOL Businesses – New York Times – Just wanted to bookmark this as a "follow-up" to my February 1 post where I postulate that 2008 will see the splitting and spin-off of the three AOL businesses…

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