Gamification in change management case-study changce-game

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This study illustrates with a case study how gamification can be used in change management processes. In addition, this study examines and discusses the benefits of applying gamification as a method in change management, especially regarding employee motivation.

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International Journal of Management (IJM) Volume 9, Issue 5, September–Otober 2018, pp.44–54, Article ID: IJM_09_05_006 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=5 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication GAMIFICATION IN CHANGE MANAGEMENT CASE-STUDY CHANGCE-GAME Matthias Kammer Research Assistant, Doctoral Candidate Research Institute for Corporate Management, Logistics and Production TUM School of Management Technical University of Munich, Germany Sebastian Janocha Master’s Degree Candidate Technical University of Munich, Germany Peter Witzgall pi.con – Pulse of Innovation Consulting, Germany ABSTRACT Gamification is being used in more and more industries and in different business areas. Today, there are applications in areas like customer management, marketing, production, innovation management, sales and human resources.However, gamification case studies with a focus on change management are rarely found in those areas. This study illustrates with a case study how gamification can be used in change management processes. In addition, this study examines and discusses the benefits of applying gamification as a method in change management, especially regarding employee motivation. The gamified method that was used in the investigation is called CHANGCE-Game and was applied at a customer of Pulse of Innovation Consulting in June 2018. Keyword head: Gamification, Change Management, Motivation, CHANGCE-Game. Cite this Article: Matthias Kammer, Sebastian Janocha, Peter Witzgall Gamification in Change Management – Case-Study Changce-Game, International Journal of Management, 9 (5),2018, pp. 44–54. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=4 1. INTRODUCTION In the dynamic business world, change is a constant companion. Many people see it as an opportunity, some as a constant danger for their existence.Successfully managing change is not trivial and the fear of existence of some companies is justified.Large companies such as Kodak have already had to file for bankruptcy because change has not been properly managed http://www.iaeme.com/IJM/index.asp 44 editor@iaeme.com
Gamification In Change Management – Case-Study Changce-Game [1].To achieve sustainable success, companies must continually scrutinize their business models, adapt them to the changing environment and update methods and processes because of changing customer needs, new market innovations or new competitors. Although many companies are facing these challenges, research shows that 70% of change efforts are susceptible to failure [2]. Either because the reasons for change were not correctly identified, the sources of resistance were not considered, or the success factors were not recognized [3].One of the biggest uncertainty factors in the context of change are the employees. Since they are most affected by the transformation and will ultimately execute the transition, their motivation and contentment must be ensured throughout the change process [4].A new approach to ensurethe needs of employees and decrease the failure of a change process could be the use of gamification. Parallel to the growing speed of transformation in business, the application of gamification is increasing. Meanwhile, it has become an established method in numerous areas ofcompanies, either implemented as a software tool or as a physical one, and it shows positive effects such as higher motivation, performance, engagement, participation and other essential attributes for organizations and their stakeholders [5]. Applications like Nike+ and Miles&More use gamification in the context of their customer relationship management [6]. MyMarriot Hotel, Flip-Life and Wsabi are further examples of employer branding applications from other companies [7]. Companies such as airBaltic introduced gamified platforms to increase employee engagement and thereby keep satisfaction at a high level [8]. Originating in the media industry, gamification is spreading to the world of management [9]. In this study, we want to present a case study, in which gamification has been used in the context of change management. Furthermore, we want to answer the following question: “What are the concrete benefits of gamification in the context of change management, especially for the employees and for the company?”. Therefore the “CHANGCE-Game” has been applied in a company to induce a change process. The method has already been introduced to literature by Witzgall et al. (2017). It was also analysed by Janocha et al. (2018), focusing on the specific aspect of the incorporated role categorization [10,11].Now, by interviewing the participants before-and-after the implementation, we want to identify the noticeable effects of this gamified application in a business environment as well as derive and recommend general benefits for the use of gamification in change management. Because this is only one case study, the transferability is indeed limited, but trends that can be used for further research can still be identified. 2. THEORETICAL BACKGROUND 2.1.Gamification Gamification is defined as “the use of game design elements in non-game contexts” [9]. Game design elements can be points, badges or achievements,leaderboards, levels, narratives, performance graphs and avatars [5].Those elements are implemented in for example business environments, so called “non-game contexts”, to get certain positive effects like a better performance.In order to develop a gamification application Deterding, Hunicke,Zichermann and Cunningham as well as Wildemann designed different approaches, which are context of further research [9, 12, 13, 14]. Deterding et al. describes abstraction layers with five levels of game design elements [9]. The shared perception in research is that components can be distinguished by the degree of possible perception by its user [11].The MDA framework by Hunicke et al. (2004) can be described in three phases: Mechanics, Dynamics and Aesthetics [12]. Zichermann and Cunningham (2011) also use this type of framework [13]. Wildemann (2017) combines http://www.iaeme.com/IJM/index.asp 45 editor@iaeme.com
Matthias Kammer, Sebastian Janocha, Peter Witzgall different models in order to successfully design a gamified concept and distinguishes between six areas of design: player, behaviour, game mechanics, components, dynamics and aesthetics [14]. Based on these frameworks, gamification is and has been applied in various contexts, showing organizational and personal benefits [15]. With the assistance of enterprise, gamification organizations can increase idea production by 30%, decrease production scrap rate by 17% and heighten the number of applicants by 36% [14]. Gamified concepts tend tospur on productive communication and high performance within organizations [5]. In marketing, gamification promises to enhance customer engagement and loyalty, as shown by the Nike+ fuelband, which increases its customers’ time commitment with the product and service through the design of its competitive social network [6]. It has further proven supportive in customer acquisition efforts [15]. Additional effective applications include strengthening the impact of crowdsourcing initiatives, promoting the use of healthcare systems and widening online communities [5].Apart from the named business applications, gamification also shows utility for educational and training purposes. By embedding gamified systems of interaction, feedback and comparison in an e-learning environment, success rates of learning processes can be increased [16]. The positive impact on the motivation of its users seems to be responsible for the success of these applications [5]. By addressing basic needs of autonomy, relatedness and competence, intrinsic motivation can be increased to complete an activity [17]. Gamified methods provide degrees of freedom for their users, create connections between the players and reward desirable behaviour [15]. On the other hand, extrinsic motivation is also fuelled by the incorporation of systems of incentive, which are represented by points, badges and other types of rewards [18]. This increase of motivation consequently leads to lifted levels of employee satisfaction and participation, as well as their higher performance and productivity [15, 19]. 2.2. Change Management “Change management is the process of continually renewing an organization's direction, structure, and capabilities to serve the ever-changing needs of external and internal customers” [20]. Reasons for change can be triggered from outside or within the company. They can originate from general market mechanisms (e.g. legal specifications) to individual developments (e.g. technological trends). However, regardless of whether the source lies outside or within, it can affect a company’s entire business model and operations, from strategical repositioning to modifying daily work routines [21]. To sidestep possible failure during a change process, many authors already identified sources of resistance, to respond better to the risks of changes [3]. As common in business decisions, economic efficiency plays a major role during an ongoing project. Rising costs and effects such as the sunk cost fallacy oppose new investment decisions [20]. So, if the profitability of the project is no longer justified, the project will be ended earlier than expected. The huge complexity of an ongoing project can also increase to become such a big problem that the endeavour has to end, because, for example, suddenly the analysing and implementing costs exceed the resulting benefit to the company. Furthermore, organizational barriers could also lead to an early project termination. Finally, arguably the biggest source of resistance, as they are most affected and trusted with the realization of the change transition, are the employees of a company. Humans strive for a harmonic state of psychological balance, are equipped with a lethargy for decision-making and are therefore natural antagonists of change [21]. http://www.iaeme.com/IJM/index.asp 46 editor@iaeme.com
Gamification In Change Management – Case-Study Changce-Game To master the sources of resistance, change management suggests different models like those of Lewin (1946), Kotter (1995) and Krüger(2014). These models include steps like creating a consciousness of the need for change, designing a vision of the desired status, developing and realizing an implementation plan, as well as measuring and institutionalizing the results [3, 24, 25]. They all point out that the employees play a key role in the entire process and require special consideration. Therefore, in combination with the models, success factors were derived that must be considered in a change process: 1. The motivation and engagement level of the employees must be ensured. The individuals’ motivation requires the fulfilment of the basic needs for autonomy, relatedness and competence [17]. 2. Engaging employees at an early point transmits the feeling, that the change is not forced and that autonomous decisions can be made purposefully and competently [22]. 3. A change process should be applied in a team to fulfil the need for social integration and additionally draws upon the advantages of team dynamics [3, 22]. 4. A heterogeneous, interdisciplinary group, that is adequate in size, benefits from the diversity of skills and available knowledge [2, 20]. 5. Lastly, efficient communication, competent leadership and the use of consultation services can prove beneficial when undergoing a change within a company [3, 20, 21, 22] 6. Gamified methods have the potential to consider allofthese success factorsand therefore prove to be a promising approach, especially to solve motivation and engagement risks in the context of the change process. 3. METHODOLOGY 3.1.Research Design Although gamification is still a relatively young study field, it alreadyhas an excellent reputation in scientific research [26]. This study wants to expand the existing literature with a case study, which shows the positive effects of applying gamification as a method in change management, especially regarding employee motivation. As this is only one case study, general validity and transferability to other case studies are limited, but trends can still be identified that can be used for further research. In the context of analysing the gamified method "CHANGCE-Game" in an industry setting, a qualitative research design was applied to get a detailed insight of the real-world application and the benefits. Furthermore, to identify the potentials of the CHANGCE-Game and trends of gamification in general in the context of change management the analysis was twofold. In the first part the structure and the gamified components of the method were scrutinized and compared with the general gamification effects of the literature. Then participants of a workshop were interviewed beforeandafter the workshop to identify the concrete practical benefits. The practical part of this research encompasses the execution of the CHANGCE-Game at a hotel and restaurant business in Southern Germany in June 2018, as well as eleven semi- structured, personal interviews with participants before and after the workshop. The open questions prior to the game pertained to general information about the participants and their functions in the organization, employee motivation and change processes, and general perception of workshop methods. The interviews after the execution of the workshop concerned the specific elements of the gamified method and perceived benefits of gamification in change management. Close collaboration with Pulse of Innovation Consulting and countless sources of documented information, such as workshop protocols, company http://www.iaeme.com/IJM/index.asp 47 editor@iaeme.com
Matthias Kammer, Sebastian Janocha, Peter Witzgall websites and the creator’s manuscript, have been used to describe and analyse the approach. Using the MAXQDA software the results of the interviews were coded and analysed. By triangulating different data sources, the validity and objectivity of our findings have been increased, allowing to derive trends and a sounder generalization of the theory on gamification in change management [27]. 3.2. Research Context Case-Study CHANGCE-Game Focal point of this case-study are the benefits of the gamified method called the CHANGCE- Game, which represents a gamified workshop tool within the concept of CHANGCE-thinking of Pulse of Innovation Consulting. It has been subject to previous research, having first been generally introduced [10] and one of its main components of roleplay analysed [11]. The general aim of the CHANGCE-thinking mindset is to combine the systematic search for and implementation of chances, while establishing a culture of chance orientation rather than risk aversion in companies [10]. We define chances as opportunities for enterprises to improve in a certain dimension (e.g. increasing work efficiency through novel communication technologies) [11]. CHANGCE-thinking acts as a guide and offers valuable tools throughout a change process, one of which portrays the starting point in the shape of a gamified workshop, seeking to foster enthusiasm and a lasting drive for change. The CHANGCE-Game allows players to broaden their horizon by exploring eight chance-rooms within their organization, while portraying eight different roles. By using the playful drive of people, a strategic groundwork for future endeavours can be created [14]. The incorporated gamified elements inspire creativity among employees, allowing a thorough examination of their company’s chances and potentials [11]. The CHANGCE-Game consists of three playing phases: preparation, game play and debriefing [10]. Firstly, each player selects a role, which they would like to play with during the workshop. Eight playing pieces represent eight different role types and correspond to eight chance-rooms, which are a symbolic compartmentalization of the organization (see Table 1) [10]. Table 1 CHANGCE-thinking chance-rooms and their respective roles [11] Chance-Room Role Type Description of Role creator, reformer Spirit Spirit initiative, intuitive, lively leader, manager Opportunities Space defining, aware, fact oriented, controlling worker Capabilities Skill process and result oriented, constant team player, connector Collaboration Collaboration motivating, open, communicative, cooperative business man, director Shareholders Shareholder goal oriented, motivating, visionary, dominant bridge builder Flow Flow caring, calm, supportive, balanced, cautious buyer, user Customers Customer confident, demanding, selective, critical observer, protector Environment Social Minder social, just, preserving, sensible http://www.iaeme.com/IJM/index.asp 48 editor@iaeme.com
Gamification In Change Management – Case-Study Changce-Game Still in the preparation phase, the participants identify the major impulses for initiating a change process and develop a self-image of their enterprise in the present as well as for the future. They do so by ranking a set of cards with phrases and adjectives, labelled with changes or characteristics of their enterprise and its surrounding environment (e.g. “technological trends” or “innovative”). Through discussion and consensus, a maximum of nine cards must be selected and placed onto a hierarchy pyramid, according to importance. [10, 11] The gameplay begins with the introduction of the second phase of the workshop. The playing board contains playing fields arranged in a circle, revolving around a balanced platform on which the symbolic chance-rooms stand (see Figure 1). The common goal in the course of the workshop is to balance the central platform by mounting puzzle segments into the chance-rooms. Taking turns rolling a dice, the participants advance their figures around the board. The color-coded fields match the eight chance-rooms, each for which a card is drawn. The playing cards contain statements that are to be discussed among the participants. In the group, employees must agree upon an evaluation of the statement about their company from 1 (disagree) to 5 (agree) and document reasons for their rating as well as potential measures. Once the statements corresponding to a certain chance-room are completed, the segments may be placed on the platform. The final goal is reached once all statement cards have been answered and the balance of the central platform has been restored.[10, 11] Figure 1 CHANGCE-Game Playing Board[11] Concluding with the debriefing phase, employees evaluate their organization’s current situation by filling in a web-diagram of the eight chance-rooms. In a similar manner, the workshop moderators prepare a display of the numerical results of the discussion cards in the form of averages (see Figure 2). Figure two shows the input of the employees as well as the result of the workshop, which was conducted in June 2018. With the help of these numerical results, moderator observations and player documented action items for improvement, an analysis of the chances and potentials can be deduced to serve as the basis for future orientation. In combination with the initially elaborated self- images, a change process can be started. [11] http://www.iaeme.com/IJM/index.asp 49 editor@iaeme.com
Matthias Kammer, Sebastian Janocha, Peter Witzgall Figure 2 CHANGCE-Game Resultsof Case-Study The workshop method uses a gameboard, playing cards, dice and figure pieces to set a gaming environment. From a gamification perspective, it incorporates typical elements such as points, levels, progress indicators, avatars and narratives [5, 9, 14, 15]. A set of rules includes turns and movements of the game figures in order to create a game dynamic in the form of group discussions.Furthermore, the role categorization assigns each participant a role or avatar, thereby requiring an employee to take on a new identity and point of view. The discussion cards are collected, similar to points and visually displayed on the CHANGCE- Board to act as a progress indicator. Additionally, after topics have been discussed successfully playing pieces are awarded and placed onto the CHANGCE-Platform, again documenting the group’s progress throughout the course of play. The approach dictates teamwork to reach a common goal. Finally, the workshop results represent a performance graph by the help of which the employees receive an evaluation of their own enterprise. 4. RESULTS As it was one of the central points of this analysis, we begin to show the benefits of the CHANGCE-Game as a gamified method in change management, especially regarding employee motivation in the following. Afterwards, the other identified benefits are presented. Focusing on the theoretical part of the literature analysis, we identified different motivational factors for employees and compared it with the CHANGCE-Game as well as the needed motivational factors for a change process(see Table 2). Thereby we can derive that for example the implemented gamification elements like points and performance indicators within the CHANGCE-Game create a feedback loop, satisfying the need for feeling competency. Moreover, the workshop contains avatars, which enables freedom of choice and identity development, provoking a sense of autonomy. Also, the narrative of the own company generates social relatedness by setting precise goals and favouring teamwork. In summary, satisfying all the factors within Table 2 indicates that from a theoretical point of view the CHANGCE-Game increases the motivation of the involved employees. [14] The results of the practical part, theconducted workshop and the interviews, are also summarized in Table 2. Employees of the hotel and restaurant business, who participated at http://www.iaeme.com/IJM/index.asp 50 editor@iaeme.com
Gamification In Change Management – Case-Study Changce-Game the CHANGCE-Game, name several factors that influence their work motivation. For 50% job diversity is of significance and also the urgency of the task at hand. While monetary compensation plays a minor role for all interviewees, appreciation by colleagues is of high importance. 100% of the asked state that the identification with the company’s vision, philosophy and values is a key motivational factor and results in a high degree of commitment, also when exposed to change. Without exception the interviewed are empowered to make decisions within their responsible areas, one claiming that others would possibly welcome the opportunity to act more freely. Finally, the work environment at the organization, which also addresses the teamwork philosophy as well as fun, is deemed beneficial for high motivation and willingness to perform. According to 75%, the employer succeeds in offering flexible work conditions.With specific respect to change processes, the employees feel a need to be informed or even incorporated. At the same time, half of the interviewed express the need for a certain degree of freedom, when making decisions and implementing changes.Evaluating the benefits of the CHANGCE-Game, the interviewed participants unanimously agree, that the game-like character of the method generates fun and facilitates the reaching of the workshop goal. In other words, the incorporated gamified elements increase motivation for kicking-off the change process. 100% of the asked state, however, that the method is only granted useful, if the implementation of the results is pursued. The roles used in the method are praised by 72% of the employees, as they allow the discovery of different perspectives and a discussion free of hierarchy. This component, the playing cards and other game similar elements create a workshop setting that distinguishes itself from regular change management approaches, due to its playful notion. 57% of the participants believe that the CHANGCE-Platform and Board act as progress displays to introduce an emotional component as well as a supporting visualization. Furthermore, the teamwork, required to complete the workshop tasks, is seen as a helpful and necessary premise to initiate the change management workshop by all who were interviewed. In conclusion, as one employee formulates, “the playful manner, gamification has a major impact on people’s motivation and concentration.” However, the benefits for the employees do not only include a higher motivation, especially for the initialphase of the change processes, the CHANGCE-Game also increases the identification with the company and the team spirit of the employees. Furthermore, the challenging, goal-oriented work supports self-confidence during the change process. And the benefit for the company? A higher employee motivation leads to more engagement, minimizes the risk of failure during the change process and enables a better productivity (e.g. execution efficiency of the change process). In addition, a higher identification with the company leads to more loyalty and less fluctuation. All ofthese beneficial factors have been confirmed during the interviews. Table 2 Benefit of Gamification and Motivational Factors in Change Management Gamification Benefits according to literature according to literature Employee Interviews Employee Interviews Change Management Motivational Factors Motivational Factors motivational factors [5-9, 12-16, 18, 19] (% of interviewed) (% of interviewed) [3, 4, 17, 20-25] GameBenefits for employees CHANGCE- Benefit and Acknowledgement, Feedback 100 X 100 X Autonomy 100 X 100 X Challenge - X 29 X http://www.iaeme.com/IJM/index.asp 51 editor@iaeme.com
Matthias Kammer, Sebastian Janocha, Peter Witzgall Corporate philosophy 100 X 71 X Employee benefit programs 50 X - - Environment, Teamwork 100 X 100 X Feeling of competence - X 57 X Fun, Enthusiasm 100 X 100 X Goals 50 X 100 X Incentives (e.g. monetary) 100 X 100 X Inspiration 75 X 100 X Interaction 100 X 100 X Management 25 X - X Task variety 50 - 57 X 5. DISCUSSION The performed case study reveals, that the CHANGCE-Game provides the setting necessary to increase the employees’ motivation. By creating a playful, criticism-free and socially engaging atmosphere, the vision for a change process can be developed by the affected company staff. Corresponding literature of change management suggests that autonomy, relatedness and competence need to be provided to increase employee motivation during change processes. Consistent with this, the CHANGCE-Game as well as the gamification fulfils these requirements and thereby increases employee motivation, engagement and performance. Figure 3 visualizes,and Table 2 specifies the complementary relationship discovered in this study.In summary, the application of gamification in change processes bears added value for employees and companies as a whole. The requirements of change processes can be met by gamification. Due to the nature of qualitative research design, this study has considerable limitations. The analysis of a unique gamification approach in a single industrial setting does not imply the general successful application of gamification concepts in change processes. Although the CHANGCE-Game has proven to be a successful tool in various companies, other gamified methods should be observed within transformational projects. Furthermore, a scientifically valuable extension would be the comparison with state-of-the-art procedures used in enterprise change. Also, it has to be proven, if the positive effect of the initial phase of the change processes will kept up afterwards during the whole change process. Future research could hereby aim at empirically proving the benefits of gamification in change management. Figure 3 Benefit of Gamification in Change Management http://www.iaeme.com/IJM/index.asp 52 editor@iaeme.com
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