Gamification of Organizations Explained


One of the prevailing theories of learning is that people learn faster and remember things better when they are having fun, are appropriately challenged and are interested in the subject.  This theory has led to the idea of producing a game-like environment into a learning curriculum.  This has been done in two broad ways:

  1. Gamification 

Gamification is the process of adding game-like elements to a regular set of activities.  Elements such as leaderboards to add a spirit of competition, a point system for performing certain activities, time trials or other time based activities.

These elements can be used to encourage participants to engage in the learning process, work as a team and spend extra time practicing or developing needed skills.

  1. Game-based learning

Game-based learning is a method of taking a learning task and developing a game based on the course syllabus.  Games can reproduce real-life situations such as investing, mathematics and vocabulary and can be used to reinforce memorization of historic events, scientific theories and language studies.

These two methods of game-based learning can be used individually or together and can have a positive effect on the learning outcomes of students but can have a negative impact on some students for a variety of reasons.  

Benefits of using gamification within an organization

Gamification can be used in any situation to foster improved performance on average over the organization.  It provides the “players” with a feeling of competition, motivation and urgency to perform well.  By identifying the key actions or learning activities a participant needs to perform to be successful the game can be set up to support the organization as well as help the player to improve their skills and confidence on a number of venues.

Gamification can include points for reaching sales quotas, fixing computer bugs, reading manuals and any other activity which is beneficial.  Leveling up is another successful strategy for providing players with reasons to learn and improve their skills.

Gamification provides soft motivation for participants

Motivating students, employees and family members is a difficult and sometimes detrimental thing to do.  Often efforts to motivate others can feel like nagging, controlling and manipulative behavior.  By using gamification to motivate it applies soft pressure on the participants.  Allowing them to decide what they want to do, how much time they need to spend and when they want to practice.

The spirit of competition can drive players to perform better and work harder to move to another level, qualify for a special event or win a periodic prize.  Using gamification can provide enough indirect motivation to eliminate the need for direct action which can demotivate rather than motivate individuals.

Gamification can encourage consistent improvement

One of the aspects of gamification is that it naturally groups similarly talented people or groups together.  This natural segregation provides a pull to each of the members of the cohort to continue improving.  As others in the group move forward others feel the pull and work harder to stay with the group.

This is enhanced by implementing a level or tyred system which provides participants with additional benefits for moving up a level.  Benefits can be anything such as special seating at group meetings, additional bonuses or special recognition.  Anything which will motivate the specific group.

Gamification can focus of specific skills

By analyzing the goals and activities needed to succeed in a program it can be determined which skills are needed and when they should be mastered.  With this information they can become part of the game.  Participants can earn points for doing each activity (skill) a certain number of times or at a level of proficiency.  

By providing tangible rewards, players are more likely to master skills even when they don’t feel comfortable performing them in the beginning.  This hellps them to overcome the short term pain of being conciously incompetent in the skill until they become unconciously competent.

Gamification provides a known track to follow

The unknown is scary and uncomfortable which nobody wants to encounter.  People will avoid doing something which they know is beneficial if it leads them into a world they do not know.  By providing a track to follow this feeling is greatly reduced, lowering anxiety and increasing motivation.

When participants can get involved with a small emotional investment and begin with small steps they are more likely to continue the process.  By providing a system of points, levels, bonus activities and access to training the risk of taking action is reduced significantly.

Gamification can encourage teamwork

One of the benefits felt from becoming part of a team sport early in life is the knowledge that success is much easier when everyone works as a team.  Cooperation is a valuable trait which needs to be learned.  By providing some aspect of teamwork within the gamification plan it will make it easier for the group to build cohesiveness.

This can be done by developing teams from different aspects of a goal such as sales, marketing, manufacturing and delivery or by grouping teams together within the same field.  By doing this the group will have a natural motivation to not let others down, provide assistance to others when needed (mentorship) and encourage one another to perform at their best.

Gamification resists backsliding

People are more motivated to work hard at keeping something they have than to work hard for something they haven’t got.  This means that once a participant has achieved a level in a particular program as long as they remain part of the organization they will work hard to maintain that base level.

When the levels are set up to encourage consistent performance or learning/skill acquisition it provides a solid basis for planning.  Knowing that players will perform within a certain percentage of their previous level makes planning easier and more predictable.

Gamification reduces attrition

Contrary to what some believe, remuneration is not the main cause of attrition.  People quit organizations because they are not appreciated, don’t feel part of the group, feel unsuccessful in their position or feel stuck with no prospects.

By implementing gamification within a group it will be easier for players to feel part of the organization.  They will be recognized for achievements like moving up a level or mastering a certain skill giving them a feeling of accomplishment .

The organization can easily determine if members of the group have lost motivation or have reached the top of the level system presently in place.  This gives them clues to either provide support for individuals who are struggling or to add additional levels to the system to provide top performers to stay motivated.

Gamification makes training more specific and valuable

Few people enjoy reading service manuals, organization training manuals or technical books.  They are not written for entertainment and are always packed with information which is usually not relevant to the reader or too concentrated for easy understanding.  This type of training is poorly designed and poorly executed.

Gamification helps the organization to develop a training system which provides useful, relevant information when it is needed for the player.  By thinking about what a player may need for each level an organization has a better chance of developing training for each of the skills needed for the current level the player is at.

With a well developed training system the participants are better able to understand and use the training quickly.  This helps them to internalize the information (which is the goal of all training programs).

Disadvantages of using gamification within an organization

Gamification is not a perfect solution to an organization’s training and performance requirements.  As with any method of training it has problems which can derail any benefits achieved.

Gamification can demotivate less successful participants

Not everyone in an organization has the same abilities.  Some learn at a slower rate, learn using different modalities provided by the organization and may have lower motivation for a variety of reasons.  When they are forced into participating in the organization’s gamification system they may not succeed.  

Not only does this demotivate the participant but may also affect the team they are involved in negatively causing poor relations and eventually could lead to them quitting or transferring.  

Implementation costs to develop a gamification system can be high

To implement a gamification system an organization must analyze the skills, knowledge and resources participants will need throughout the program.  The determination of what elements to include in the system, how they will be awarded and what method of accounting will be used needs consideration.

Determining what type of gamification to implement is also important.  Will it be divided into levels, points or a combination.  How long will the period be; a week, month, quarter or some other time period specific to the industry.  What will be the rewards for each participant; cash bonuses, bragging rights, access to non-monetary benefits or added responsibilities.

All this analysis and planning will cost time and money for the organization prior to any benefit and the benefits may be slow in coming so the organization must be committed to the program months before any results (positive or negative) will be seen.

Gamification opens the door for cheating

Like in any game when people get committed to winning sometimes the pressure to cheat increases.  This means that the organization needs to develop checks to prevent the opportunity for this type of behavior and procedures to follow when participants are discovered.

Not only does this damage the reputation of the organization but can destroy careers.  Participants who feel it necessary to cheat to succeed may be to blame but also the gamification system may also need to shoulder some of the blame.

If it is too difficult for players to advance though the levels or to maintain achieved levels cheating will be more predominant.  The actions and skills needed for each level must match the benefits received for the commitment.

Gamification can produce animosity between participants

Animosity can arise for a number of reasons but when tracking methods are implemented and made public this can lead to negative relations with those on different stages or skill levels.  Depending on the personality of the players the spread of points can lead to unpleasant feelings.

When teamwork is required not all participants will have the same commitment level, time available or learning rate.  This can cause team members to slow the group down or push others past their comfort level, leading to bad relations.

Approaches of implementing Gamification into an organization 

There are many ways gamification can be implemented within an organization.  It can be used in a specific department, through interdepartmental teams, applied throughout an organization specific to each department or any variation.  It can include computer training programs, activity based systems or result oriented scoring.

The best system for any organization depends on the goals of the organization, available funds for implementation and the size of the group.  Organizations which are interested in improving sales will develop entirely different systems then ones focused on quality control.

Before considering implementing any particular system consider the following:

What are the organization’s goals for gamification

Before gamifying an organization it is important to understand what it is you are trying to accomplish.  If you want to make onboarding easier or more successful the program will be different then if you want to improve sales or lower defective product rates.

Identify the top priority skills, information and habits to focus on

Once you have determined the organization’s goal, break down the goal into bite sized pieces.  This is a familiar activity for most goal oriented people but here it has a different purpose.  The goal here is to determine what are the skills, knowledge and habits employees need to succeed in achieving the organization’s goals.

Set minimum, intermediate and high standards for the goals

For each of the above categories there are a set of standards which will determine if the goal was accomplished and to what level the goal was achieved.  Take some time to decide what the standards are for each habit, skill or learning topic.

Organize a timeline for competition of the goals

Some skills and knowledge will be needed right at the beginning of the program and some will be too difficult to understand until the participant has spent some time in the program and some can be done simultaneously.  

Organize the skills, knowledge and habits needed into a timeline.  Determine what needs to be done first and progressive harder in a timeline.  This will give a general plan for what participants need to do first and progressively down the line as they improve.

Decide how the gamification is to be implemented

There are several ways to gamify an organization which can include developing a point program, levels and basic quotas.  The participants could start at zero every time period or could accumulate over a longer period of time.  Some activities could be mandatory while not others.  

  1. Using a point system

To determine the value of each point and the points to be attached to each activity the importance of the activity to the participants success and the value of the activity to the organization needs to be considered.  Sales is an obvious example of this where each point costs the organization in remuneration of some type but should lead to higher sales which raises gross profit.  The key is to attach a point value to each activity which motivates the participant but also provides added value to the organization.

  1. Adding levels

Levels can be point based, action based and/or time based.  By providing participants with a set of activities which must be completed before advancement to the next level the organization can ensure they are getting value from the system and simultaneously motivating participants to move up the levels.

  1. Establishing basic quotas

Some organizations have some things which need to be done before any participation is considered.  In sales it could be a minimum number of calls, for quality assurance it could be a maximum number of defects and for onboarding it could be punctuality and low absente rates.  Whatever the quota they need to be achievable to everyone in the organization which it applies for.

Before deciding what methods to use, research the value of each activity to the organization.  Talk to employees to find out the effort and time it takes to master the skill or knowledge.  With this information you can begin to attach value to each of the activities and skills participants are going to be asked to learn.

Organize the system

Using your timeline and the knowledge of the value and skill required for each, assign a point value or place it in a level (depending on how you have decided to implement the game).  Once everything has a value or is assigned a level consider where and how any mandatory activities are to be tracked.  These are things which have no value assigned to them but must be completed.

Test the gamification

Test the gamification with experienced players.  This could be experienced employees, past students or management staff.  After a period of time, interview the participants.  Ask if anything is too hard, too easy or what is forgotten.  This is a tuning process where the points on each item could be changed, things added or subtracted to levels or eliminated altogether.

Implement the organizational gamification

Just start the game, make changes if necessary.  Have regular get togethers for the participants for mutual encouragement, acknowledgement and socialization. 

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