Leadership’s Online Labs

Charmain Tan | Dongjie Lin | Fehd Trimech | Vaibhav Sathe

Agenda Massively Multiplayer online role playing game Gameplay of World of Warcraft Leadership skills evaluated Game play vs. Business world Personal Aspects Managerial Implications

MMORPG Massively Multiplayer Online Role Playing Game Very large number of players interact in a

virtual gameplay scenario assuming a particular character World of Warcraft is most subscribed MMORPG with 10.2

million with approx. $12-15/month subscription fees Released in 2004, 4 Expansions so far Competitive and Goal Oriented environment Real time strategy game, players have goals to

accomplish based on resources, most tasks require group formation, sharing/trading of resources possible

High black market (Real World) exists for well equipped accounts, trading as high as $9000

Trailer video

World of Warcraft – Game play Player vs. Player or Player vs. Environment Subscribers need to join one realm or server which

is one instance of gameplay Characters belong to races – Orcs, Humans,

Dwarves Players of same faction (alliance) can communicate

each other through messages or groups Participation of dozens of players coordinating with

each other in quests for several hours Over period of time characters mature and acquire

skills Quest completion provides further experience

points, items and in-game money

Leadership Skills Evaluated

Works well• Face organizational and

strategic challenges like recruiting, retaining, assessing, motivating, rewarding, etc.

• More challenging in some terms due to volunteer workforce and digital medium of communication

• Dynamic leadership, leaders change, new ones come forward

Doesn’t match• No real evaluation of

“high potential” as one needs to achieve level to see great players in action

• No tangible stakes involved, increases risk taking

• Problems are well articulated and not discovered

• Identities adapted to gameplay, reduces “conflicts”

Two environments : Game world vs. Business world

Similarities• Motivation and

incentives. Important motivational challenges (incentive mechanisms that reward the individual performance of players / employers). The incentives can be either short-term (and immediate) or long-term.

• Distribution of the loot that a team accumulates during a successful raid / Distributing end-of-year bonus to employers. Making a strong connection between effort and reward.

Differences• Stakes in games are

lower than in business world. Players aim to achieve goals strictly defined by the game rules.

• Players have avatars whereas employees involve their real personality.

• Speed : things go faster in games.

• Risk taking is encourages in games but a dangerous in business.

• The role of leadership is often temporary. The leader changes if the mission needs specific skills.

Two environments : Game world vs. Business world

Similarities• Transparency of

information. Chosing a strategy in the heat of the action on the basis on the updated data.

• Managing like a meritocracy : people are rewarded for their performance.

• Most real-world companies are already working on capturing and integrating real-time about people, activities and results.

Differences• Transparency of

information. Detailed statistics on individual and group performance, real-time status reports on performance.

• Lack of data makes the leader ignoring real skills of employers.

• Rotation of leadership. Availability of data keep players always ready to assume the leadership if needed.

• Detailed data about players, constantly and automatically updated / static employee files with snapshots of someone’s past experience and training.

• Failing and reattempting is a learning experience in game world / Reattempting is hard in business world.

Leadership: personal aspects Some similarity and discrepancy among the

leaders in online games and real-world business.

ProfessionalSpecialize in: Ongoing recruitmentCreation of incentive systemsPlayer evaluation

Game

Common sense in business,Know the industry and company well

Real

Leadership: personal aspects

Speedy and Efficient

Ultraquick decision making, Based on partial information

Game

Considerate decision makingSometimes based on incomplete information

Real

RiskySince failures is acceptable , taking risk is encouraged

Game

Cautious, taking good care of risk

Real

Leadership: personal aspects

Relationship skills

Exceptional relationship--> forming effective teams, delegating responsibility

Game

Respect & support from below, good working atmosphere

Real

Communication

Game

Real

Managerial Implications: Management

• Frequent swapping of leadership position helps avoid burnout

• No single leader expert in all areas. Better matches individual expertise to tasks

• Empowers employees to take lead, unearthing overlooked talent

Temporary leadership roles in gaming

• Organizations to foster a culture that tolerates failure

• Mimic game structures by breaking down big challenges into smaller projects, thereby making risk more palatable

Game risk taking in trial and error

• Encourage teamwork rather than individualistic work

Gamers must cooperate to advance

Managerial Implications: Incentive systems

• Shorten lag time between successful outcomes and monetary compensation

• Creates stronger connection between effort and reward

Immediacy of compensation in gaming

• Creating clear and communication on reward system increases transparency and incentives

• Individual compensation based on objective performance data is deemed as a fair and meritocratic reward system

Players know their reward points in advance

Managerial Implications: Information system

• Providing employees with better access to information and tools to make their own decisions. Bottom-up instead of top-down

• Dashboards should be accessible to all instead of being located only in headquarters, access only by senior executives

Visible real-time information

• Leaders to be reactive to new information• Organizational culture that is flexible and responsive

to contingencies

Speed-decision making in gaming

• Composite view of employee’s voluntary information about the person’s informal skills and hobbies facilitates formation of teams

Real-time player data

Conclusion - Takeaway

Leadership is not always about an individual’s innate ability, but about the environment as well

Business can learn to adopt online gaming environments to improve leadership at work