Our education systems must focus on developing underlying human capabilities, not just knowledge and skills

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It is absolutely clear that better, broader education will be essential in creating a positive future of work. However we still need to work out precisely what is the education that will be most relevant for tomorrow’s world. Read more

How company directors can integrate innovation and governance to drive performance

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Last week I ran a half-day program on Integrating an Innovation Mindset with Effective Governance for Bursa Malaysia (the Malaysian stock exchange) attended by 160 company directors.

Over the last years I have annually run two-day innovation programs for the Malaysian Director’s Academy (MINDA), designed to develop company directors’ capabilities and mindset to engage with and promote effective innovation in the organizations they lead. I was pleased to have the opportunity to take these ideas to a broader audience of senior company directors in this dynamic economy.

The key issue for company directors is balancing their fiduciary responsibilities to manage the risk of organizations with the imperative of innovation. Organizations that do not change in a rapidly shifting world will inevitably be left behind.

I would argue that it is not just a question of “balance”, but one of actively integrating innovation and governance, in that understanding that NOT innovating effectively – which requires actively moving into uncertainty – is often the greatest risk.
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Just launched: The Commonwealth Bank jobs and skills of the future report

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The future of work has been a central theme of my work for many years. Work sits at the very center of society, the economy, and our individual and collective identities. It may well be the domain that is most disrupted by technological and social change in coming years. And education is at the heart of how we can make these shifts as positive as possible.

As such I was delighted to be commissioned by Commonwealth Bank to create a report in collaboration with their team: The Commonwealth Bank jobs and skills of the future report (12.4MB), to share useful insights for individuals, families and organisations what we can do today to shape a positive future of work for all Australians.

The report has been launched this morning and can be downloaded here (12.4MB).
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Record-Low Trust Levels Show Global Media Needs to Win Back Audience Confidence

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Public confidence in news media has steadily declined in recent years. In fact, according to a poll conducted by communications marketing firm Edelman, it’s hit an all-time low in 17 countries.

The media is not the only institution dealing with trust issues. The Edelman firm has dubbed 2017 the year of “Trust in Crisis,” as faith in business, government, and NGOs has also plummeted.

Trust in media

Survey findings show that the media is distrusted in 82% of the 28 countries polled. The study, conducted in the last quarter of 2016, surveyed more than 33,000 respondents.

In most countries, trust levels decreased from the previous year, with particularly dramatic drops in the United Arab Emirates, Argentina, and Mexico. Trust levels in other countries also fell significantly, with decreases of 10% in Canada, Australia, Ireland, and Colombia.

The country that fared the worst was Turkey, where trust levels came in at a dismal 25%. Russia didn’t do much better, falling to 31%, but nor did the UK at 32%. For comparison, the US sat at 47%, unchanged from the previous year, while news outlets in China, India, and Indonesia maintained high levels of public confidence, despite an 8% drop for China.

Trust levels also varied by media source. People expressed more confidence in search engines and traditional media than in owned media or social media. In fact, 64% reported high trust levels in search engines. Since 2012, confidence in search engines has increased, while faith in both traditional media and social media has gradually declined.

The Edelman report identifies a more general fear that the system is failing as part of growing skepticism toward the media. Media echo chambers, which reinforce rather than challenge existing fears and opinions, exacerbate this distrust.

 

The paradox of social media

When we look at other polls, the picture becomes even more complex.

A lot has changed over the last decade, including the media landscape itself. One of the most obvious changes is how people access news. According to Pew Research Center, about nine out of ten Americans get some of their news online, most with mobile devices. This is a significant increase since 2007 when only two-thirds of respondents reported accessing online news.

As the Reuters Institute Digital News Report 2017 shows, this is a global trend. The report highlights findings from a YouGov survey of more than 70,000 people across 36 countries. Results show that among 18- to 24-year-olds, 64% use online media as their main source of news. Older groups are less likely to do so, but numbers hover around the 50% mark for audiences between ages 25 and 44.

Another dramatic shakeup stems from the diversification of news sources. The Digital News Report also revealed that a third of those in 18 to 24 age bracket now rely on social media as their main news source, and 21% of those aged 25 to 34.

But although people are increasingly dependent on social media for news, they’re also extremely wary. The survey found that just one-quarter of respondents thought social media did a good job of separating fact from fiction. That’s even worse than trust rates in news media, polled at 40%.

This is what we might call the paradox of social media. It makes news pervasive and people depend on it more, but they also have low confidence in it. This is a curious fact. Shouldn’t traditional media look better in comparison and earn a higher trust level as a result? As the Digital News Report speculates, skepticism toward online sources may have spilled over into the public’s confidence in traditional media outlets.

If true, the news isn’t all bad. It means there’s hope for media outlets that promote a clear distinction between the jumble of real and fake news that appears on social media and traditional professional publications.

Political polarization

The Digital News Report also revealed a correlation between distrust and political polarization. Its findings differed from Edelman’s, showing South Korea rather than Turkey at the bottom of the confidence scale, with only 23% of respondents expressing trust in the media. The US also did worse, hitting only 38%, while Turkey received a marginally higher trust level at 40%.

But at the same time, over half of respondents in the US expressed trust in the sources they relied on for news. In other words, they had low confidence in the media in general, but relatively high trust in their preferred news sources.

This points to an interesting trend in the data. In countries with news outlets distributed across a broader, more extreme political spectrum, public confidence in the media is low. It’s higher in countries like Germany, where most news outlets huddle around the middle of the spectrum.

In polarized political climates, the media tends to become polarized as well, reinforcing the views of their main readership while pushing others to the margins. This can be exacerbated by media consolidation and worsened by the echo chamber of news on social media, which tends to show users news that confirms their existing opinions.

The only way to break this echo chamber is by including diverse political viewpoints and considering counterarguments in fair and accurate ways.

The good news

Is there hope that the relationship between the public and the media can be restored?

The good news is that there are bumps in the downward spiral of public confidence in news media. Although the general trend is negative, trust levels have sometimes shown marginal improvement year to year—indicating the situation can be turned around.

Without public trust, there is no news, just private opinions and political propaganda. In the babble of voices online, it’s difficult to walk the line between conforming to new trends and maintaining a distinct and professional identity. But now more than ever, in this extremely politically charged climate, it’s vital that media outlets improve how the public perceives them, and regain public confidence in the news.

The future landscape of financial services will be driven by modularization

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Last week I gave a keynote to the senior leadership team of a major financial services organization at their annual strategy offsite. My brief was to provoke and stimulate, taking them out of their current frame of reference on strategy.

My session dug into key themes such as rapidly declining trust in institutions, the rise of platforms, and decentralization driven by blockchain among other factors.

The reality is that financial services is an exceptionally broad space, and our long-established financial institutions bring together a wide and diverse set of services to their customers.

Newer players including fintech startups tend to address specific offers, attracting customers by doing them better than incumbents. This is illustrated by the well-known ‘unbundling’ diagrams, as shown below. Read more

The emerging jobs of the future and how reputation will trump credentials

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An article in today’s Daily Telegraph on Future of Work: the revolution to 2030 brings some interesting perspectives to bear on how the world of work is changing.

The article quotes me on the jobs of the future:
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How Algorithms and Human Journalists Will Need to Work Together

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Ever since the Associated Press automated the production and publication of quarterly earnings reports in 2014, algorithms that automatically generate news stories from structured, machine-readable data have been shaking up the news industry. The promises of this technology—often referred to as automated (or robot) journalism—are enticing: Once developed, such algorithms could create an unlimited number of news stories on a specific topic at little cost. And they could do it faster, cheaper, with fewer errors and in more languages than any human journalist ever could.

This technology provides an opportunity to make money creating content for very small audiences—even, perhaps, customized news feeds for an audience of just one person. And when it works well, readers perceive the quality of automated news as on par with news written by human journalists.

As a researcher and creator of automated journalism, I’ve found that computerized news reporting can offer key strengths. I’ve also identified important weaknesses that highlight the importance of humans in journalism.

Identifying automation’s abilities

In January 2016, I published the “Guide to Automated Journalism,” which reviewed the state of the technology at the time. It also raised key questions for future research, and discussed potential implications for journalists, news consumers, media outlets and society at large. I found that, despite its potential, automated journalism is still in an early phase.

Right now, automated journalism systems are serving specialized audiences, large and small, with very particular information, producing recaps of lower-league sports events, financial news, crime reports and earthquake alerts. The technology is constrained to these types of tasks because there are limits to what sorts of information it can take in and process into text that humans can easily read and understand.

It works best when handling structured data that is accurate like stock prices. In addition, algorithms can only describe what happened – not why, making it best for routine stories based solely on facts that have little room for uncertainty and interpretation, such as when and where an earthquake happened. And because the major benefit of computerized reporting is that it can do repetitive work quickly and easily, it is best used to cover repetitive topics that require producing a large number of similar stories, such as sporting event reports.

Covering elections

Another useful area for automated news reporting is election coverage—specifically regarding results of the numerous polls that come out almost daily during major campaigns. In late 2016, I teamed up with fellow researchers and the German company AX Semantics to develop automated news based on forecasts for that year’s U.S. presidential election.

The forecasting data were provided by the PollyVote research project, which also hosted the platform for publishing the resulting texts. We established a completely automated process, from collecting and aggregating the raw forecasting data, to exchanging the data with AX Semantics and generating the texts, to publishing those texts.

Over the course of the election season, we published nearly 22,000 automated news articles in English and German. Because they came from a fully automated process, the final texts often had errors, such as typos or missing words. We also had to spend much more time than we had expected troubleshooting problems. Most of the issues came from errors in the source data, rather than the algorithm – highlighting another key challenge of automated journalism.

Finding the limits

The process of developing our own text-generating algorithms taught us firsthand about the potential and limits of automated journalism. It’s crucial to make sure the data is as accurate as possible. And it is easy to automate the process of creating text from a single set of facts, such as the results of a single poll. But adding insights, like comparing that poll to others in the past, is much harder.

Perhaps the most important lesson we learned was how quickly we reached the limits of automation. When developing the rules governing how the algorithm would turn data into text, we had to make decisions that might seem easy for people to make – such as whether a candidate’s lead should be described as “large” or “small,” and what signals could suggest a candidate had momentum in the polls.

Those sorts of subjective decisions are very hard to formulate into predefined rules that should apply to any situation that has occurred historically – much less to any situation that might occur in future data. One reason is that context matters: A four-point lead for Clinton in the run-up to the election, for example, was normal, whereas a four-point lead for Trump would have been big news. The ability to understand that difference and interpret the numbers accordingly is crucial for readers. It remains a barrier that algorithms will have a hard time overcoming.

But human journalists will have a hard time outcompeting automation when covering routine and repetitive fact-based stories that merely require a conversion of raw data into standard writing, such as sports recaps or company earnings reports. Algorithms will be faster at identifying anomalies in the data and generating at least first drafts of many stories.

The ConversationAll is not lost for the people, though. Journalists have plenty of opportunities to take on tasks algorithms cannot perform, like putting those numbers in proper context – as well as providing in-depth analyses, behind-the-scenes reporting and interviews with key people. The two types of coverage will likely become closely integrated, with computers using their strengths and the humans focusing on ours.

Andreas Graefe, Endowed Sky Research Professor, Macromedia University of Applied Sciences This article was originally published on The Conversation.

Keynote slides: The Future of Work and Education

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I had the great pleasure today of doing the opening keynote at CEE2017 Enterprising Minds Conference in Melbourne, organised by the Centre for Educational Enterprise, run by Melbourne Girls Grammar School.

My session pulled out to a very big picture view, starting with the key drivers of Acceleration, Society and Structure, delving into the disruption of Work and the resulting human Capabilities we need, and finally on to the fundamental shifts in Learning, Education and the resulting Leadership that is required.

The slides to my keynote are below. As always, my slides were designed to support my presentation and not to stand alone, but may be somewhat useful to those who weren’t present for my keynote. Many of the slides were in fact videos, in this deck only shown as images.

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Everyone needs to understand the potential impact of AI and automation

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On Tuesday ABC ran a prime-time special program The AI Race, supplemented by other content including analysis and an interactive tool on the impact of AI on jobs.

The program was excellent, looking at people working in a variety of jobs from truck driver to lawyer and how AI might impact them.

I appeared on the program as part of an ‘expert’ panel discussing the implications of automation on the future of work with a group of young people. The segments where I appeared are in the video below.


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List of the top influencers in the future of work

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Influencer lists should be taken with considerable caution, however they can be useful general indicators of those who are shaping conversations in a particular domain.

Atos Netherlands recently shared an analysis taken from Right Relevance of the top influencers in the future of work, shown below.


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