NLP in Business

How Natural Language Processing is Transforming Customer Service, Marketing, and Sales

As businesses become more customer-centric, understanding customer needs and wants is becoming increasingly important. Natural Language Processing (NLP) is a branch of Artificial Intelligence (AI) that is revolutionizing the way businesses interact with their customers. By analyzing language data, NLP enables businesses to gain a deeper understanding of their customers, improve communication, and automate processes.

Here are some ways that NLP is transforming customer service, marketing, sales, and even the workplace:

Improving Customer Service Interactions

NLP is being used to analyze customer feedback and interactions to improve the overall customer experience. By analyzing customer feedback in real time, businesses can identify common pain points and issues and address them promptly. NLP can also be used to automate customer service interactions through chatbots and virtual assistants, reducing wait times and providing 24/7 support.

Automating Marketing and Sales Processes

NLP is being used to automate marketing and sales processes, allowing businesses to personalize their messaging and improve customer engagement. By analyzing customer interactions and (meta)data, AI and NLP can generate personalized recommendations and product suggestions. This level of personalization can improve customer retention and loyalty, and increase revenue.

Gaining Insights from Unstructured Data

NLP is also being used to analyze unstructured data, such as social media comments and reviews, to gain insights into customer sentiment and preferences. By analyzing this data, businesses can gain a deeper understanding of their customers and adjust their marketing and sales strategies accordingly.

Challenges and Considerations

While NLP has many benefits for businesses, there are also challenges and considerations to be aware of. For example, NLP algorithms can be biased, reflecting the biases of their creators and the data they are trained on. This can result in unfair or discriminatory outcomes. Additionally, NLP may not always accurately capture the nuances of human language, leading to errors or misunderstandings.

NLP in business

At Zortify, we believe that natural language processing (NLP) is a critical tool in driving better decision-making through artificial intelligence. That’s why we’ve built our company around NLP and its applications in human experience management (HXM).

Our Zortify products are based on the latest research and practical expertise in Data & Computer Science, NLP, Visual Computing, Psychology, and People Analytics. We believe that this multidisciplinary approach is key to developing usable and explainable AI solutions that truly make a difference.

One of our primary applications of NLP is in making active listening scalable for organizations across Europe. Our technology enables individuals to express themselves in their own words, whether it’s for personnel selection, customer/employee feedback, or analyzing an entire organization’s culture. By leveraging NLP, we can capture and understand the nuances of human language in a way that wasn’t previously possible.

Conclusion

NLP is transforming the way businesses interact with their customers, enabling them to gain a deeper understanding of customer needs and wants, improve communication, and automate processes. As with any technology, there are considerations and challenges to be aware of. However, by using NLP responsibly and ethically, businesses can improve the overall customer experience and drive growth.

NLP 101: A Beginner’s Guide to Natural Language Processing

Natural Language Processing (NLP) is a field of study that focuses on analysis and synthesis of human language. NLP is a fascinating and rapidly evolving field with a wide range of applications, from chatbots and virtual assistants to sentiment analysis and machine translation.

AI vs. Human Intelligence

Examining the differences between AI and Human Intelligence, and how they can work together to drive Innovation. Artificial intelligence (AI) has been a hot topic in recent years, with advancements in technology and machine learning leading to significant improvements.

Building Trust with Explainable AI: Techniques and Approaches

As AI becomes more pervasive in our lives, it’s becoming increasingly important to understand how these systems work and to be able to trust their decisions. Explainable AI (XAI) is a growing field that aims to create more transparent and interpretable machine learning models. In this article, we’ll explore what XAI is, why it’s important, and how techniques such as decision trees and rule-based systems can be used to build more transparent and trustworthy AI systems.

Introduction

Artificial intelligence (AI) is increasingly being used in a wide range of applications, from chatbots to autonomous vehicles. However, as AI becomes more ubiquitous, concerns have arisen about its transparency and accountability. In particular, there is a growing demand for AI systems that are explainable. Meaning that they can be understood and interpreted by humans. This article will explore the concept of explainable AI, including why it’s important for building trust in AI systems. And how techniques such as decision trees and rule-based systems can be used to create more transparent and interpretable models.

What is Explainable AI?

Explainable AI (XAI) is a subfield of AI that focuses on developing methods and techniques to make AI systems more transparent and interpretable. The goal of XAI is to enable humans to understand the reasoning behind AI decisions and action. Which is critical for building trust in these systems. XAI is especially important in high-stakes applications. Such as healthcare and finance, where decisions made by AI systems can have significant consequences.

Why is Explainable AI Important?

The lack of transparency and interpretability in AI systems is a major obstacle to their widespread adoption. If people cannot understand how an AI system is making decisions or why it is taking a particular action, they are unlikely to trust or rely on that system. This is particularly true in applications where human lives or livelihoods are at stake.

Another reason why XAI is important is that it can help identify and mitigate biases in AI systems. Many machine learning models are trained on biased data, which can lead to discriminatory outcomes. By making AI systems more transparent and interpretable, it becomes easier to identify and correct biases in these models.

How can we achieve Explainable AI?

Several techniques and approaches can be used to achieve XAI. One common approach is to use decision trees. Which are a type of model that creates a tree-like structure of decisions and their possible consequences. Decision trees are easy to understand and can be used to trace the reasoning behind AI decisions.

Exemple of decision tree

Another approach is to use rule-based systems, which are sets of rules that define the conditions under which certain actions should be taken. Rule-based systems are often used in expert systems. Which are AI systems that simulate the decision-making capabilities of a human expert in a particular domain.

A third approach is to use model-agnostic techniques, such as LIME (Local Interpretable Model-Agnostic Explanations) or SHAP (Shapley Additive exPlanations). These techniques can be used with any type of machine learning model and provide local explanations for individual predictions.

Finally

Explainable AI is critical for building trust and transparency in AI systems. By making AI systems more transparent and interpretable, we can identify and correct biases, build trust with users, and ensure that AI is used ethically and responsibly. There are many techniques and approaches to achieving XAI, and organizations should carefully consider their options when implementing AI systems.

NLP 101: A Beginner’s Guide to Natural Language Processing

AI vs. Human Intelligence

Natural Language Processing in Business

The topic of “Quitting” is stirring the HR world. People seem to be resigning in very different ways. Sometimes very officially, increasingly internally, often silently. Yet, what does it say about our work environment when people who do what is expected of them (no less, but also no more) are referred to as “Quitters”? – However, we don’t want to become too philosophical here. The fact is: people feel less connected to their employers today than the generations before them. According to a recent study by EY, only 13% of respondents feel a strong bond to the company (for comparison: in 2017 it was still 34%). For companies, this is both a curse and a blessing at the same time.

The Facets of Quiet Quitting

Let’s start with “Quiet Quitting”. This includes the phenomenon where employees stay in the company, but emotionally and intellectually switch off. They only do the bare minimum and reduce their productivity, creativity, and interaction with colleagues to the required minimum. Not because they feel powerless and unmotivated, but quite consciously, to not let work take up too much space in their lives. Especially among young employees, this attitude was temporarily proclaimed a trend. But is this form of “Quitting” really a problem? – This requires a nuanced view: I think it is quite legitimate for an employee not to constantly go above and beyond the expected. Emotional distance from the company can also be healthy.

When Quiet Quitting Becomes a Problem

The problem arises when employees start to actively block processes and structures, both on formal and informal levels. For example, quite bluntly put, when informal conversations at the coffee machine are refused because they are not part of the employment contract. Such behavior can, if it affects more than just a few employees, lead to a toxic company culture. And can even bring organizations to a standstill. Not all processes can be formally defined. Informal approaches to tasks and challenges can facilitate and expedite work in many areas. Where this dynamic comes to a halt, work also becomes difficult for those who are actually enjoying their work. The risk of resignation increases, especially when there are sufficient job alternatives in the industry.

So, it can be concluded: Quiet Quitting as a conscious action becomes a problem when it blocks or downright poisons the informal and interpersonal in organizations, potentially making work less attractive for all employees.

Detecting and Addressing Silent Resignation

But there is also another form of silent resignation. One that does not come preventively, but as a reaction to the existing working conditions. I would like to refer to it here as “Inner Quitting”. Employees who do not feel seen, do not receive recognition, and do not see the value of their work reflected in tangible results or emotionally, eventually only do the absolute minimum, increasingly become numb and often fall far behind what they could and would achieve in a positive work environment. This form of quitting happens more subconsciously and is not targeted. However, the consequences for the atmosphere among the workforce can be similar to those of consciously working on a low flame.

Regardless of the reasons for the silent retreat. It is vital for companies to continuously detect and counteract such negative developments. For this, they need to find out how their employees are really doing – candidly and unfiltered.

Artificial Intelligence Provides True Employee Insights

Getting authentic insights into the emotions and motives of employees, especially those who feel little connection to the company, is challenging. Traditional, quantitative employee surveys often reach their limits as they can lead to standardized and thus potentially biased answers. Quiet Quitters are likely to hold back or distort their true feelings and thoughts in conventional surveys. Making it difficult to gain a genuine insight into their perspectives and experiences. Here, the use of AI and especially Large Language Model (LLM) technologies can make a significant difference.

LLM-based technology, used in the HR context, is capable of analyzing and evaluating qualitative answers – i.e., text responses – and identifying subtle hints and patterns in the expression of employees. This makes it possible to understand what is actually going on in the minds of the people in the organization. Which needs remain unmet, and where there may be toxic behaviors or structures that undermine employee satisfaction and loyalty. By combining quantitative and qualitative data enabled by AI analyses, companies can gain a deeper, nuanced perspective on the needs and challenges of their teams. And thus make better informed and targeted decisions to improve leadership and corporate culture.

Setting Employees on Default with AI

Conclusion: The multifaceted act of “Quitting” – whether visible and loud, quiet and strategic, or latently internal – reflects the urgency to listen to the desire for change on the part of many employees. This change must be initiated by the people in leadership positions. They have never been better positioned to do so than today. Because AI-based technology is a game changer, especially in HR work. Companies should be bold and loud in going forward and using the new possibilities when it comes to the most valuable thing they have: employees who by default want to do good work.

Quiet Thriving Over Quiet Quitting

AI’s Role in Fostering Proactive Work Culture. Every movement has its counter-movement, and this is also true in the HR sector. While “Quiet Quitting” describes a state in which employees do just the bare minimum, “Quiet Thriving” represents a concept that encourages people to actively participate and shape their own work environment.

Lead Effectively: Speak 20%, Actively Listen 80%!*

*(Spoiler: AI makes it possible) Hand on heart: Do you know the current state of well-being of your employees? Do you understand their worries, challenges, and feelings? Do you know what truly moves them, what challenges they face, what is going well for them, and where they urgently need support?

Attention, narcissism!

Unveiling the truth about narcissism and its impact on teams and companies, discover how AI can now recognize such behavior. From charismatic allure to detrimental consequences, narcissists can disrupt success in various ways. Explore the prevalence of narcissistic traits in executive suites and the alarming trends among younger generations.

Entrepreneurial capital is like a secret weapon for business people, whether you are an entrepreneur, corporate employee or leader – you want to score high in entrepreneurial capital. It’s made up of certain mental powers that help you do well in your work and handle challenges bravely. It’s not about skills or personality traits, it’s about your mindset, how you think and deal with things.

Imagine having an invisible shield that helps you stay strong during hard times and makes running your business and lead your people smoother. That’s what entrepreneurial capital does. It helps you to not give up, believe in your ability, and always expect good things to happen.

The Wonderful Things About Having Entrepreneurial Capital

When a person has lots of entrepreneurial capital, they usually feel better, do their work happily, and achieve more because they can handle stress and problems effectively.

For a whole company, when everyone has high entrepreneurial capital, it leads to good performance all around, and it even earns more money for the company. In fact, high levels of entrepreneurial capital correlates positively with employee engagement, psychological wellbeing, performance, and authentic leadership. (Same research shows that low levels correlate with everything we want to avoid in business i.e., cynicism, high staff turnover, job-stress, anxiety, workplace deviance…)

Resilience: Bouncing Forward and Growing

Imagine a tree. When a storm comes, it bends in the wind. After the storm, it doesn’t just return to its previous shape; it grows even stronger and adapts to withstand future storms better. This is what resilience in the business world is like. It’s not only about coming back to where we were after facing challenges but also bouncing forward, learning, and growing from those experiences. When life throws difficulties our way, we use them as stepping stones to become even more robust and adaptive.

Optimism: The Sun Always Follows the Rain

Optimism signifies maintaining a positive outlook and persistently expecting favourable outcomes. Just like after every spell of rain, we anticipate the sun to shine again, an optimistic mindset in entrepreneurial capital embodies believing that after challenging or difficult periods, positive and prosperous times will follow. This faith in a brighter future drives our actions and decisions, it also makes us more courageous and risk-taking.

Self-Efficacy Conviction: Steering Our Own Ship

Self-efficacy conviction is similar to having an internal locus of control, where we believe that we have the steering wheel of our career journey in our hands. Imagine being the captain of a ship. Regardless of the turbulent seas or calm waters, it’s our belief in our ability to navigate through these varying conditions that defines our self-efficacy conviction. We see that our actions, decisions, and strategies significantly influence our career journey and achievements.

Agility Mindset: Dancing Through Dynamic Shifts

Envision a dancer, seamlessly flowing with the rhythm, effortlessly adapting to every beat change. An agility mindset in entrepreneurial capital mirrors this dancer, gracefully pivoting through the erratic beats of the business world, ensuring each unexpected move becomes a choreographed step towards success. With an agility mindset you embrace change, convert challenges into new opportunities, always staying in sync with the fluctuating markets and trends.

Developing Entrepreneurial Capital: Is it Possible?

Absolutely! Cultivating entrepreneurial capital is achievable by nurturing resilience, self-efficacy conviction, optimism, and an agility mindset, thereby enabling any individual to flourish. This is perfectly done through coaching, workshops, training and even meditation and self-reflection.

In conclusion, entrepreneurial capital is like a secret tool that helps us and our teams to do well in business. By focusing on growing our resilience, self-efficacy conviction, and optimism, not only do we become better entrepreneurs, but we also make our businesses stronger and more successful.

Unlock the Secret Weapon for Success!

Ready to harness this power for your success? Contact Sophia today to discover how Entrepreneurial Capital can elevate you and your company to new heights!

Sophia Karlsson Business Development & HX Consultant

sophia@zortify.com Schedule a meeting VCARD

Quiet Thriving Over Quiet Quitting

AI’s Role in Fostering Proactive Work Culture

Every movement has its counter-movement, and this is also true in the HR sector. While “Quiet Quitting” describes a state in which employees do just the bare minimum. “Quiet Thriving” represents a concept that encourages people to actively participate and shape their own work environment.

Quiet Thriving: A Proactive Counter-Concept

The basic idea behind this approach is that people have an inherent need for joy, development, and fulfillment in their work. These needs shape the motivation to adopt a proactive role. Even in a negatively perceived work environment, rather than merely aiming for the minimum. Such an attitude contributes to mental health and enables individuals to positively shape their environment within their own capabilities.

The “Circle of Control, Influence, and Concern,” a model from Positive Psychology, illustrates the different levels of influence and resulting options for action. It nicely demonstrates that some things are within our control, while others are not. Recognizing and distinguishing between them paves the way to more (inner) freedom and enjoyment in one’s own actions, even under suboptimal conditions. In relation to the work context, this essentially raises three questions:

1. If I cannot control or influence my work environment, can I learn to accept it? (e.g., behavior of my supervisor)
2. If a problem in my work environment is not under my control, can I exert influence on it, so that I at least experience some joy at work? (e.g., work routine)
3. What is under my control? How can I gradually expand my scope of action. To eventually do more than just the bare minimum and contribute enthusiastically to the company’s goals with my own ideas? Not out of compulsion, but from an authentic motivation that enriches me both personally and professionally?

In “Quiet Thriving,” employees consciously engage with their subjective sense of self-efficacy (no matter how small it may be). Proactively shape aspects they can influence, and adjust their attitudes and reactions regarding aspects they initially cannot change. Furthermore, they strategically connect with like-minded individuals and together build a supportive community to strengthen and utilize collective self-efficacy.

The Role of Artificial Intelligence

From an HR perspective, the previously mentioned “Quiet Quitting” tendencies are likely to be observed particularly in employees who perform monotonous or seemingly meaningless tasks. Especially when they cannot see the immediate effect of their work and thus feel unappreciated. Here, HR can specifically intervene and help shape conditions to promote “Thriving.” A prerequisite for this is recognizing the emotional state of the employees. Artificial Intelligence (AI), working with extensive language models (like we know from ChatGPT), can determine how people in the organization are truly feeling by evaluating qualitative data (e.g., open text responses in a survey).

Based on this data, HR can show demotivated and dissatisfied employees opportunities for development and learning, or enable a temporary switch to a different activity. For example, job rotations or further training can break established patterns, provide variety, and set new impulses. AI can also determine which development step is appropriate for which employee. It is fundamentally important that these offers do not come as an additional burden “on top” of the existing workload. But represent a real alternative to the previous range of tasks. A profound understanding of the character traits, states, and needs of the employees can further contribute to entrusting the right people with the right roles within the organization at the right time. Thus creating optimal conditions for them to fulfill their tasks with motivation. Thanks to AI, HR has the opportunity to delve deep into the organization for the first time and tap into the entire human potential that lies dormant within it.

Know Your Privilege

It is important to emphasize that “Quiet Thriving” represents a privileged approach that is not applicable to all life and work situations. In terms of work, it is particularly suitable for office jobs and industries where skilled workers are scarce and employees have at least some degree of influence. At the same time, our awareness of the diversity of work experiences and environments should motivate us to make working life more conducive and fulfilling for as many people as possible. The emerging AI technology offers fascinating possibilities in this regard. Let’s use it to tap into the creative potential that lies dormant in everyone.

Article header by RoonZ on Unsplash

How Companies Get to the Bottom of Quiet Quitting

Lead Effectively: Speak 20%, Actively Listen 80%!*

Attention, narcissism!

The importance of personality analysis in investment decisions

Due diligence is a crucial part of any investment decision, especially when it comes to startups. While financial, legal, and tax aspects are often thoroughly examined, there is one aspect that is sometimes overlooked: the personality of the founders. This article explains why personality analysis is so important for founders and investors, and how it can be integrated into due diligence processes.

First invest in personalities – Then in ideas

Ideas are a dime a dozen, but the personalities of the founders play a decisive role in determining how successful the implementation will be. Therefore, investors should not only check the business in their due diligence, but also the personality behind it. Research shows that an ideal founder personality consists of optimism, a willingness to take risks, and a strong belief in one’s own abilities. In addition, an open, curious, extroverted, and emotionally stable mentality is desirable. By investing in personalities first, investors can reduce the risk of their investment and increase their chances of success.

“Risk comes from not knowing!” – Warren Buffett

Warren Buffett’s quote is particularly relevant when it comes to the personality of the founders. To reduce the risk of investment, it is advantageous to learn as much information as possible about the founders. In this way, horror scenarios like the case of the men’s outfitter “Von Floerke” can be avoided. Four years after the founding of the start-up, the company was on the verge of going out of business – founder David Schirrmacher mocked and agitated against Frank Thelen, his investor, in public. The latter, in turn, described Schirrmacher as no longer sane. The personality of the founder is therefore an essential component to know in advance exactly what you are getting into.

The Corona Crisis makes getting to know someone in person difficult

The Corona crisis has made it difficult for investors and founders to get to know each other in person. Investors and founders normally get to know each other better over a cozy dinner or on a joint date, which is currently absolutely unthinkable. A digital meeting must be enough to decide whether to invest in the founders or not. However, this can come with a high risk. Biased decisions, misjudgments, and missed opportunities are becoming more common. A personality analysis can help mitigate these risks.

“Self-Presentation” – A Dealbreaker

Self-presentation and social desirability are familiar to all of us. One presents oneself better or differently than one is to score points with the other person. Finding the true core behind the facade as an investor is more difficult than you might think. Especially in front of the webcam, it is easy to pretend to convince others. A personality analysis can help investors see through self-presentation and make a more informed decision.

60% of All Startups Fail Due to an Unfavorable Team Composition

Recent research on failed startups from Harvard Business Review shows that 60% of startups fail because of the wrong personalities and constellations within the team. However, not all hope is lost. This can be preemptively counteracted. Through a personality analysis, the team can be evaluated in detail. Which personalities are represented in the team and how do these types harmonize with each other? In this way, everyone can be deployed according to their strengths and contribute to the success of the company in the long term.

In conclusion, personality analysis is an important aspect of due diligence that should not be overlooked. By investing in personalities first, investors can reduce the risk of their investment and increase their chances of success. The Corona crisis has made it more difficult to get to know the founders in person.

Why should psychology be considered in due diligence?

When it comes to conducting due diligence, most people focus on analyzing financial statements, legal documents, and other technical information. However, it’s important not to overlook the role of psychology in due diligence. Here are some reasons why psychology should be considered when conducting due diligence.

“I can do it!”

Founders are characterized by optimism, resilience and self-efficacy conviction. All values are measurable and trainable. Why is that? Successful founders have strong personal resources. They are particularly optimistic, resilient and at the same time convinced of their own effectiveness.

What is Entrepreneurial Capital that we measure at Zortify?

Lead Effectively: Speak 20%, Actively Listen 80%!*

*(Spoiler: AI makes it possible)

Hand on heart: Do you know the current state of well-being of your employees? Do you understand their worries, challenges, and feelings? Do you know what truly moves them? What challenges they face? What is going well for them? And where they urgently need support?

Listening is exhausting

Effective listening requires practice and training. Especially for leaders and particularly in uncertain times when many people are plagued by existential worries. A natural talent for listening is rare. The ability to constantly express our opinions on various channels and be confirmed in our “bubble” does not make listening any easier.

In hierarchical structures, there is also often the unspoken rule that leaders take up the majority of speaking time in meetings – and ultimately are always right. The transition from a dominant speaker to an attentive listener marks a significant step towards a sustainable cultural change in organizations. Which requires time, strength, and perseverance. Because true listening requires a high level of activity. Studies have shown that listening is much more strenuous than speaking. When we speak, our brain is stimulated similarly to when we eat or have sex. Which releases positive energy in our body; on the contrary, active listening significantly depletes our energy reserves.

Can I actually listen?

When thinking of leadership communication skills, many initially think of rhetoric, the ability to present well and maintain verbal control. This perspective needs to change. Because good leaders, who strive for a collaborative, open, and appreciative corporate culture, do not need to talk much. But rather need to listen attentively – regularly and to each individual employee. This leadership ability can be trained like a muscle. A prerequisite for this is to critically reflect on one’s own communication behavior.

The five stages of listening

Listening goes far beyond the simple absorption of words. The quality of listening can be measured in five stages:

Stage 1 (lowest level): Not listening – We pay no attention to the speaker, perhaps constantly looking at our smartphone or otherwise signaling our disinterest. Here, the other person is ignored, and effective communication does not take place.
Stage 2: Listening to speak ourselves – We immediately check the information received for how we can personally interpret or respond to what has been said. The focus is more on formulating our own response than on understanding what has been said.
Stage 3: Listening to agree or disagree – Here, we perceive the words of our conversation partner, but mainly consider them from the point of view of our own opinion and positioning.
Stage 4: the transition to empathetic listening: Understanding what moves our counterpart – Here, we listen not out of self-interest or to evaluate what has been said, but out of genuine interest in the perspective and emotions of the other person.
Stage 5 (highest level): Enabling a better self-understanding of the other person – At this level, listening becomes a mirror that helps our counterpart sort out their own thoughts and feelings and gain new insights or perspectives, without us sending the topics through our personal filter.

Understanding and applying these listening stages, especially stages 4 and 5, enables profound, empathetic communication, creates space for genuine exchange, and fosters mutual appreciation. By actively listening, leaders:

receive accurate information; this increases the likelihood of making wise decisions.
show appreciation to employees.
enhance the sense of belonging and connection among each other.

Actively Listening with AI

However, it is also clear: listening takes time. And given the diverse role expectations on HR in recent years, time has become scarcer. However, the advent of artificial intelligence could herald a turning point here. AI proves to be almost the perfect listener. It can effortlessly analyze text and voice data, a task that was previously reserved for human intelligence and took place in time-consuming and costly assessment and development centers. With AI, qualitative data and complex relationships can be utilized in a completely new way.

Leveraging AI for Qualitative Data

At Zortify, for example, we train our models using artificial neural networks. These can filter information from the environment in a way similar to the human brain. For example, AI is capable of reading out needs and moods from large datasets with qualitative text responses and identifying psychological states of employees. And that’s exactly what it’s all about: recognizing what is there without immediately evaluating it or reflexively reacting to what has been said, as we often unconsciously do in conversations (see stages 2 and 3).

Choreographer Monica Bill Barnes once said in an interview, “Listening is a matter of deciding that you do not have to worry about what you are going to say next.” This is a point that is difficult for us humans, especially when we – as in the professional context – always believe we have to have a competent answer ready. AI does not know such social fears. It listens without its own expectations and thus fundamentally enables a deep understanding of what has been said. This forms a valuable basis for HR experts to initiate specific measures and suggest. For example, an internal job change, a career step, or a confidential conversation. What used to take months or years (or was even completely ignored) is now possible thanks to AI within minutes: Active listening through data analysis, followed by human intervention by HR.

The right setting

Leaders are called upon to develop a sense of which communication channel is most effective for the different personality types in their team. In particular, they should actively approach the “silent” team members again and again and promote continuous exchange. The key here is a setting in which both sides feel comfortable. And what is the best way to find that out? Exactly: by listening attentively.

Article header: Franco Antonio on Unsplash

How Companies Get to the Bottom of Quiet Quitting

Quiet Thriving Over Quiet Quitting

Attention, narcissism!

Founders are characterized by optimism, resilience and self-efficacy conviction. All values are measurable and trainable. Why is that?

Successful founders have strong personal resources. They are particularly optimistic, resilient and at the same time convinced of their own effectiveness. This entrepreneurial capital can be measured, and trained in every person.

Nurturing Entrepreneurial Capital in the face of uncertainty

Around one in ten of the working population in Germany is self-employed.[1] Crises such as the current Corona pandemic hit the self-employed particularly hard. Because they bear the full risk for their entrepreneurial activities. But even before Covid-19, it was true that anyone who wants to realize their own business idea in today’s volatile world needs psychological “capital” from which he or she can draw in difficult phases.

Self-employed people in particular often make risky decisions, work in a complex business environment and have to deal with an uncertain future. At the same time, in the best case, they consistently pursue their vision and also motivate their own employees. How do successful founders manage all this at the same time? The answer: with the help of their entrepreneurial capital, which they carry on their shoulders like an imaginary “resource backpack. This mental capital can be measured – and trained. An analysis offers an important starting point for making existing resources visible and expanding them.

The influence of entrepreneurial capital on business success can explain why relatively few people start up businesses in Germany, even though, according to the Global Entrepreneurship Monitor, many today consider themselves qualified enough and see opportunities to build up their own company. For the support and promotion of innovations and the start-up scene, therefore, the development of entrepreneurial capital is also an important adjusting screw.

What personality traits does entrepreneurial capital comprise?

Entrepreneurial capital forms the basic psychological framework for a successful and satisfied working life. It is based on the concept of “psychological capital,” which is increasingly in focus in psychological research, and comprises certain cognitive resources from which a person can draw to influence his or her own well-being.

These resources are more stable than emotions or moods but at the same time malleable and open to development. A high expression of the interacting resources is related to higher performance, job satisfaction, and psychological well-being. Conversely, individuals with low levels of psychological capital exhibit increased cynical behavior, job stress, and anxiety.

Current research shows that successful founders are particularly convinced of their own effectiveness, resilient as well as optimistic – and significantly higher than their own top managers. These three personality traits form the entrepreneurial capital of each person and, in their interplay, have a significant influence on professional success and job satisfaction:

Factor 1: Self-efficacy beliefs.

An unwieldy word with a strong impact. It refers to confidence in oneself and one’s own abilities to successfully complete tasks. People with a high level of self-efficacy set themselves ambitious goals and can control their own motivation. Even in difficult situations, they do not bury their heads in the imaginary sand. But try to master them as well as possible. Studies show that mastering challenging experiences and social persuasion promote the development of one’s own self-efficacy conviction.

Successful founders are convinced of their own effectiveness.

We know from our everyday life that a person’s actual competence and self-confidence do not always match. There are enough people who believe themselves to be less capable than they actually are – and vice versa. For founders as well as for employees, confidence in one’s own abilities is always an important resource. It helps not only in turbulent times, but also when leading a team or presenting one’s own ideas.

Factor 2: Personal resilience

Let’s imagine the following situation: A pandemic spreads worldwide and investors bail out. A worst-case scenario. However, unexpected events are not only part of building a business in pandemic times. As a rule, a start-up is always associated with a high degree of risk and uncertainty – failure and decisions with a bad outcome are often part of it. In addition, the responsibility increases the larger a start-up becomes. How do successful founders respond to such challenges?

Successful founders show a high level of resilience and deal calmly with unexpected events.

Successful founders show a high level of resilience: they accept reality as it is, tend to improvise, take risks and face challenges with openness. Those who are resilient get back up more quickly after setbacks and failures, cope better with conflicts and deal more calmly with uncertainties. Stumbling blocks? They are much less likely to throw resilient people off track. And if they do fail, they get back on their feet quickly and often recover at an even higher level of their personal self. People with high resilience focus either on their available resources, on the potential risks, or on the process itself, and aim their strategy at achieving the best possible outcome.

Factor 3: Optimistic attitude

Successful founders show a strong basic confidence in a positive future. They see and seize opportunities before others do and thus usually enter “error-prone” new territory. Optimists, however, tend to forgive themselves for mistakes more easily and to see opportunities even in the face of great uncertainty. Instead of being intimidated by possible failure, they believe in the success of their plans.

Looking on the Bright Side – successful founders are particularly optimistic.

What exactly makes an optimist “tick”? Research shows that they explain positive events with personal and lasting causes. In contrast, they attribute negative events to external, temporary and situation-specific causes. The world is perceived as a place where good things happen to you on a regular basis.

How can entrepreneurial capital be measured?

Zortify has developed a scientifically based test that uses artificial intelligence to evaluate a person’s entrepreneurial capital. The algorithm analyzes personality traits based on answers to self-assessment questions and freely formulated texts.

The special feature of AI-based text analysis is that it incorporates non-manipulable results into the evaluation, thus ensuring high validity of the test results. While the subjectivity of reviewers* cannot be completely ruled out, the use of AI technology enables objective and precise results to recognize and harness one’s own potential.

“Self-awareness is the most important cornerstone of emotional intelligence.” Daniel Goleman

What is the benefit of the analysis?

Knowledge about the individual characteristics of entrepreneurial capital provides an important basis for reflection and expands the options for action for guided personality development. The test results can be used to work out clearly defined topics in a coaching session. Previous research has shown that even one to three hours of highly focused microinterventions not only lead to a significant improvement of one’s own mental resources. But also to an increase in performance at one’s own workplace.

It is not only important for the self-employed and founders to invest in their entrepreneurial capital. The analysis provides a good basis for further training offers or decisions about financial support. For example, students with high entrepreneurial capital and a strong interest in entrepreneurship can be filtered and supported with a tailored educational program.

By fostering entrepreneurial capital, HR development can also help managers and employees* become more resilient, more optimistic about the future, and more confident in seeking alternative approaches in a volatile work environment. A transparent, supportive leadership style has an influence on the psychological capital of employees. And this, in turn, determines whether employees leave a company quickly or remain motivated in the long term.

Whether a founder, manager or employee – recognizing and promoting one’s own entrepreneurial capital helps people achieve their own goals and gives them the opportunity to adapt more easily, overcome difficulties and strengthen their mental well-being.

[1] Source: German Federal Statistical Office (Microcensus 2018)

Why should psychology be considered in due diligence?

Why Due Diligence matters: The importance of personality analysis in investment decisions

What is Entrepreneurial Capital that we measure at Zortify?

Why should psychology be considered in due diligence

According to Oxford Languages, the definition of Due diligence in this matter is:. A comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.

Understanding the Human Element

At its core, due diligence is about understanding the risks and opportunities associated with a potential investment. And when it comes to risks and opportunities, it’s important to consider the human element. Understanding the people involved in a potential investment, including their personalities, motivations, and decision-making processes; can provide valuable insights into the potential risks and opportunities associated with that investment.

For example, if a potential investment involves a CEO. Who has a history of making impulsive decisions or has a reputation for being difficult to work with. This could be a red flag that suggests additional risks that should be investigated further. Alternatively, if a potential investment involves a management team. That has a proven track record of successfully navigating difficult market conditions. This could be a positive sign that suggests that the investment may be less risky than it appears on the surface.

Assessing Cultural Fit

In addition to understanding the personalities and motivations of key individuals involved in a potential investment. It’s also important to consider the cultural fit between the investment and the investor. This includes not only the culture of the company or organization being invested in but also the culture of the investor.

For example, if an investor values social responsibility and environmental sustainability. They may be reluctant to invest in a company that has a history of violating environmental regulations or engaging in unethical business practices. Similarly, an investor who values transparency and open communication. He may be wary of investing in a company that has a history of being secretive or opaque about its operations.

By considering the cultural fit between the investment and the investor, due diligence can help to identify potential areas of misalignment that could ultimately lead to problems down the line.

Mitigating Bias and Emotion

Another reason why psychology is important in due diligence is that it can help to mitigate bias and emotion. When people make investment decisions, they are often influenced by a range of cognitive biases and emotions. Such as confirmation bias, overconfidence, and fear of missing out.

By incorporating a psychological perspective into the due diligence process, it’s possible to identify potential biases. As well as emotions that could affect judgment and develop strategies to mitigate them. This could involve conducting surveys or interviews to gain a better understanding of the emotional and cognitive factors that may influence decision making. Or decision making frameworks could be developed that aim to counteract common biases and emotional reactions.

Ensuring a Holistic Approach

Ultimately, the goal of due diligence is to ensure that all potential risks and opportunities associated with a potential investment are thoroughly assessed. By considering the role of psychology in due diligence, it’s possible to ensure a more holistic approach. That takes into account not only the technical aspects of the investment. But also the human and cultural factors that can influence the success or failure of an investment.

Conclusion

When conducting due diligence, it’s important not to overlook the role of psychology. By understanding the personalities, motivations, and decision-making processes of key individuals involved in a potential investment. As well as the cultural fit between the investment and the investor. Due diligence can help to identify potential risks and opportunities that might otherwise be missed. Additionally, by bringing a psychological perspective to due diligence, it’s possible to mitigate biases and emotions that may be clouding judgment. And to ensure a more holistic approach that takes into account all potential factors that can influence the success or failure of an investment.

Why Due Diligence matters: The importance of personality analysis in investment decisions

“I can do it!”

What is Entrepreneurial Capital that we measure at Zortify?

AI vs. Human Intelligence

Understanding the Advantages and Shortcomings of Artificial Intelligence

Examining the differences between AI and Human Intelligence, and how they can work together to drive Innovation

Artificial intelligence (AI) has been a hot topic in recent years, with advancements in technology and machine learning leading to significant improvements in areas such as natural language processing and Machine vision. But while AI has many strengths, it also has its limitations. In this article, we will explore the capabilities and shortcomings of both AI and human intelligence and how they can complement each other to drive innovation.

Understanding AI and Human Intelligence

AI is a type of machine intelligence that can perform tasks that typically require human intelligence, such as learning, reasoning, and problem-solving. It is based on algorithms that can learn from data, identify patterns, and make predictions. Human intelligence, on the other hand, is the cognitive ability of humans to learn, reason, and adapt to new situations.

Strengths and Limitations of AI

One of the major strengths of AI is its ability to process vast amounts of data quickly. Making it useful for tasks such as data analysis and predictive modeling. AI can also work around the clock without getting tired or making errors due to fatigue. However, AI is not perfect and has its limitations. For example, AI lacks the creativity and intuition of humans, making it less suitable for tasks that require a nuanced understanding of human emotions or complex social interactions.

Augmenting Human Intelligence with AI

One of the most promising applications of AI is in augmenting human intelligence. By leveraging the strengths of both AI and HI, we can create more effective solutions to complex problems.

Unleashing the power of AI: Enhancing Human Intelligence for breakthrough solutions.

One area where AI is already being used to augment human intelligence is in the field of recruiting. Traditional recruiting processes can be biased by human judgment, leading to unfair or discriminatory hiring practices. AI, on the other hand, can help to remove bias and make the recruitment process more objective.

Revolutionizing recruitment: How AI is reshaping the Hiring Landscape

AI-powered recruitment tools can analyze resumes and job applications to identify the most qualified candidates. Without being influenced by factors such as age, gender, or ethnicity. These tools can also analyze candidate behavior during interviews. Such as facial expressions and tone of voice, to provide insights into their suitability for the job.

Eliminating Bias, enhancing objectivity: the role of AI in recruiting.

By augmenting human intelligence with AI in the recruitment process, organizations can reduce bias and improve the quality of their hiring decisions. This can lead to a more diverse and inclusive workforce, as well as increased productivity and employee satisfaction. However, it’s important to note that AI is not a perfect solution, and there are still potential risks and limitations that must be addressed.

The Synergy of AI and HI

By combining the strengths of both AI and human intelligence, we can create powerful solutions that are capable of solving complex problems and driving innovation. For example, in the field of medicine, AI can analyze large amounts of medical data and identify patterns that humans may miss. Helping doctors to make more accurate diagnoses and develop more effective treatments.

Another example is in the field of finance, where AI can help to analyze large amounts of financial data and identify potential risks and opportunities, allowing investors to make more informed decisions. By working together, AI and human intelligence can drive innovation and create new opportunities in a wide range of industries.

Conclusion

In conclusion, AI and human intelligence have their strengths and limitations, but by working together, they can achieve more than they could on their own. As technology continues to advance, it is important to understand the capabilities and limitations of AI. And how it can be harnessed to augment human intelligence and drive innovation.

NLP in Business

Improving Customer Service Interactions

Automating Marketing and Sales Processes

Gaining Insights from Unstructured Data

Challenges and Considerations

NLP in business

Conclusion

NLP 101: A Beginner’s Guide to Natural Language Processing

AI vs. Human Intelligence

Building Trust with Explainable AI: Techniques and Approaches

XAI: Building Trust and Transparency in Machine Learning Models

Introduction

What is Explainable AI?

Why is Explainable AI Important?

How can we achieve Explainable AI?

Finally

NLP 101: A Beginner’s Guide to Natural Language Processing

AI vs. Human Intelligence

Natural Language Processing in Business

How Companies Get to the Bottom of Quiet Quitting

The Facets of Quiet Quitting

When Quiet Quitting Becomes a Problem

Detecting and Addressing Silent Resignation

Artificial Intelligence Provides True Employee Insights

Setting Employees on Default with AI

Quiet Thriving Over Quiet Quitting

Lead Effectively: Speak 20%, Actively Listen 80%!*

Attention, narcissism!

What is Entrepreneurial Capital that we measure at Zortify?

The Wonderful Things About Having Entrepreneurial Capital

Resilience: Bouncing Forward and Growing

Optimism: The Sun Always Follows the Rain

Self-Efficacy Conviction: Steering Our Own Ship

Agility Mindset: Dancing Through Dynamic Shifts

Developing Entrepreneurial Capital: Is it Possible?

Unlock the Secret Weapon for Success!

Quiet Thriving Over Quiet Quitting

Quiet Thriving: A Proactive Counter-Concept

The Role of Artificial Intelligence

Know Your Privilege

How Companies Get to the Bottom of Quiet Quitting

Lead Effectively: Speak 20%, Actively Listen 80%!*

Attention, narcissism!

Why Due Diligence matters

The importance of personality analysis in investment decisions

First invest in personalities – Then in ideas

“Risk comes from not knowing!” – Warren Buffett

The Corona Crisis makes getting to know someone in person difficult

“Self-Presentation” – A Dealbreaker

60% of All Startups Fail Due to an Unfavorable Team Composition

Why should psychology be considered in due diligence?

“I can do it!”

What is Entrepreneurial Capital that we measure at Zortify?

Subscribe to Our Newsletter

Lead Effectively: Speak 20%, Actively Listen 80%!*

Listening is exhausting

Can I actually listen?

The five stages of listening

Actively Listening with AI

Leveraging AI for Qualitative Data

The right setting

How Companies Get to the Bottom of Quiet Quitting

Quiet Thriving Over Quiet Quitting

Attention, narcissism!

“I can do it!”

Nurturing Entrepreneurial Capital in the face of uncertainty

What personality traits does entrepreneurial capital comprise?

Factor 1: Self-efficacy beliefs.

Successful founders are convinced of their own effectiveness.

Factor 2: Personal resilience

Successful founders show a high level of resilience and deal calmly with unexpected events.

Factor 3: Optimistic attitude

Looking on the Bright Side – successful founders are particularly optimistic.

How can entrepreneurial capital be measured?

What is the benefit of the analysis?

Why should psychology be considered in due diligence?

Why Due Diligence matters: The importance of personality analysis in investment decisions

What is Entrepreneurial Capital that we measure at Zortify?

Why should psychology be considered in due diligence?

Understanding the Human Element