Enterprise and business first, 2.0 and social second

Summary : Enterprise 2.0 and social business when they become, as it often happens, their own goal, struggle to convince businesses of their significance. The reason is simple : beyond soft and qualitative benefits, the quantitative aspect is often overlook while, in the end, the enterprise has no other purpose than producing tangible wealth. This being the very basis of the concept of enterprise, there’s a need of reconsidering the social phenomenon regarding to this goal. Benefits of these new approaches are obvious in terms of value creation provided the changing nature of our economy that relies more and on people, knowledge and accumulation processes is taken into account. In this context, social and 2.0 speed up the processes that allow the accumulation of knowledge, relationship capital, trust and even reputation. This leads to a conclusion : pushing change in organizations which plan and value creation model does not take this factor into account won’t be more than a pleasant distraction. Organizations need the courage to bring the matter back to its real level where it has to be tackled : the value creation and business model one.

An increasing number of people are working through the world on transforming their organization into a social business or enterprise 2.0. In fact, this is partly wrong. In most cases it’s about making organizations adopt enterprise 2.0 or implement it where it’s possible (even in competition with the current organization), what is not the same thing. I’ve often said what the concept of adoption means to me, easy but fragile replacement for a real reflexion on sense and alignment, so I’ll change and mention this brilliant post from Oliver Marks where Oliver reminds us that “adoption is for kittens”.

Things happen this way for many reasons. Sometimes the people in charge are so passionate that 2.0 and social have become their one and only goal. The rest does not matter as long as many people use the wonderful tool that come with and form communities, regardless to the real business value of these communities. Sometimes the project is managed at a too low level of responsibility, sometimes with a poor sponsorship, so the person in charge does what he/she can with the available means, the provided support and the existing risk of doing too much. We all know what happens in such situations. If, in the first case, it’s only an excess of passion (and passion makes people blind), what causes the second (and may also apply to the first) is that there is no consciousness of the context in which people are operating. Enterprises are enterprises before being 2.0, business is business before being social. If organizations take no benefit from change in the context of reaching their goals, they have no reason to change.

If social and 2.0 forget the reason why enterprise exist, they become their own goal and are, at best, useless. The two above-mentioned cases are perfect evidences : when confined in a stooge role or added to the existing organization without being integrated in real business operations, social/2.0, even adopted, brings nothing. If the enterprise plan is not coherent, aligned with what social can bring, few progress will be made. Of course, many enterprise plans and discourse mention these points but it seldom means that the core of the organization is changing. Instead it’s often a nice making-up on things what don’t fundamentally change.

Don’t you find exasperating that too many discussions and event on the future of business are focused on how such or such technology spreads ? It seems that more and more people do. This revolution is presented as the remedy to all the things businesses suffer from in this early XXIth century. If I compare to this excellent post by Umair Haque, the problem is bigger and the cure needs a deep change of DNA. As a matter of fact most of the businesses that are mentioned in the most aren’t “2.0″ in the traditional meaning. They integrated this paradigm in their corporate plan, their value creation model instead of just trying to make people change the way they work. In this context, social and 2.0 are an important part of tomorrow’s enterprises, but not the only one. But, when applied to good old plans without taking into account new realities at a higher level, they won’t help to avoid the placebo effect.

So…what’s the goal of an enterprise ? [Read more...]

Your indicators say that your online communities are very busy ? So what ?

When a social media project is launched, whether internal or external, it’s often structured in groups or communities. What every project manager fear is to end with empty or moribund communties, so making them busy is an obvious goal from which indicators are drawn. This is pure logic. These indicators are linked to the the use of the tools that support the project. It’s also logical.

It’s obvious that if the indicators depress (ie the community is dead) it’s a bad news and it’s important to take things in hand. But is it right to assume that things are doing well when indicators are doing well too.

Of course, no benefit can be expected is the tool is not used. (Saying that I assume that the whole project was designed and positioned in order to bring real operational benefits and that the tool supports processes that contribute to value creation in one way or another).

But even in the opposite situation, viligance is needed.

- lots of members (or even a satisfying number). Ok, people registered. And so what ? They updated their profile ? Came back once, twice, regularly ? And why do they come for ? Make sure nothing has changed since their last connection ? (Of course I don’t mention the hypothesis of people being registered automatically whithout knowing why…)

- lots of groups are created ((or even a satisfying number) : that’s one more step. Who structures the social space wants to use it and identified needs that groups can meet. But, at the beginning, the number of groups created “only to try” may be huge so being carried away may be a mistake at this time. In fact it’s not a risk but a common practice for users who try to find out what they can do with their new tools. Then, according to the governance, some groups may not be work-related (but some companies accept it because it helps to foster relationships anyway). Of course, I’m not talking about groups created by the company according to its organizational-chart or its own expecations, without making sure that the people in the groups know what’s it about and feel engaged.

- lots of contents (or even a satisfying number) : so you have users distributed among purpose driven groups. Well. If the indicators say some (or a lot) of content is published, you are getting closer to success. But here agin, try to find what’s the reality behind the numbers. On a qualitative point of view first (is the information useful, does it help people to move forward, to improve..) Then have a look at the publications/members ratio. Of course if you have a group open to anyone and if your purpose is to gather as many people as possible to sensibilize them about something, the 1-9-90 rule should apply. If you group is made of people who actually work together in real life, everyday, who have shared goals, participation should be more balanced. If 95% of the contents come from one only person whose job is to feed the group in order it won’t look like a dead end…your indicator is biased. You are doing nothing but moving the main function of you old intranet into on a social platform. It may be a transitional step but in no way a solution for a project that is meant to bring any added value.

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What do your social network and communities produce ?

I write “social network” or “community” to use the most generic term but my words are about all the so-called “2.0″ projects that may take place within companies. Companies have been knowing that in such projects communties, groups must have a purpose, a defined goal. Thank you for not smiling at such a statement of the obvious because it was very far from being obvious to many people in the fist times. By goal, I mean :

- something that makes sense for the enterprise (at least to get things started…in the future, employees may push local project on their own even if it’s not a top level concern)

- something that makes sense for employees, according to their assigned objectives, their available time, their job description, the way they are appraised….

This may seem evident but it’s better to say it once again…juts in case some still neglect it.

Despite of that, some projects still don’t keep their promises. Sometimes they don’t even start. One of the most frequent cause is that the focus whas put on the tool regardless to concrete things : what is the community expected to produce ? What are the expected outcomes ?

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Sometimes you need a community manager. Sometimes a manager is enough…

Among the the fundamental and trendy issues about enterprise 2.0, it’s impossible not to mention this one : what does making a community work and live takes ? According to many enterprises, that’s what make their “enterprise 2.0″ projects succeed or fail. As short and simple it is, this question brings two strategic issues about which going astray is easy for people who always choose the easiest way or are abused by those who tell them they only have to jump on the bandwagon while things have to be meticulously prepared prior to anything.

First, we’re talking about making a community live, animating, emceeing it. Whatever the verb we us it, the purpose is clear : bringing life and energy to something that don’t have it. And when one try to answer objectively “why is there no life in the community”, in 90% case the answer is : people are not interested, they have no interest, it does not make any sense for sense. So the purpose of emceeing is make people understand that the community matters and to “put some oxygen into the bowl”, hoping one or two fished will start dancing. If not, the only solution is to change members and bring people for whom it really makes sense. This is difficult for many reasons : companies want to mobilize people they identified rather than those who would really like to be involved, so building a community that is not built upon the org-chart or (worse) that is made of exernal people is conceptually impossible.

Second, we’re taling about communities. Communities are places where practices, knowledge, informaiton are exchanged and has not to be confused with workgroups which are operational entities. A human entity can be both at the same time, but most of times, inside organizations, it’s one or the other. Groups know that they have to do, to deliver, and that’s why they exist. Groups exist because they have operational purposes. Communities exchange to learn, groups exchange to execute (even if there a learning dimension in the background routine). The group is a manager’s reponsability, the manager being responsible for objective’s achievement. Communties can be handled by external people who is an expert, a skilled communicator while groups only react to hierarchical hierarchy (even if expertise matters in the background).

Do you guess where I’m driving at ?

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Considering the gap between management 2.0 and enterprise 2.0

I’ve been neglecting the management 2.0 topic for a long time although it was what this blog was about since 2005. Last years I slowely slipped from management 2.0 to enterprise 2.0, even if I find it sad that there were so many people to discuss about of make companies use 2.0 tools than people wanting to focus on building a new management framework in which these tools would make sense. But this question is coming back like a boomerang while companies are slowly realizing that small side adjustments won’t be enough to make tools useful and that a systemic overhaul is needed to make tools serve as catalyssts in a new organization model.

In february’s issue of the Harvard Business Review, Gary Hamel put this issue back to the headlines with an article called “Moon shots for management” which clearly defines management issues for the upcoming years.

Namely :

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Is there a 2.0 way to draw an org-chart ?

When talking about enterprise 2.0, something we offer hear is “sounds interesting but our company is not designed to work this way”. Understand : we decide to do something and we “push” it, don’t even think of allowing a bottom-up flow to exist in this context. Of course, that causes gaps, the company isn’t able to meet clients and employee’s needs right away, many realignments being necessary while the exchanges that would makes it easier are not facilitated at all. In  a colorful language, companies use the existing pipes, hoping all pieces will fit together at the end.

That’s why I suggested to think about a Service Oriented Organization, which starting point is not the top of of the pyramid but the goals the organization has to achieve. Don’t forget that the purpose of any company is not to keep people busy or give to what already exist a reason to live but to meet the market’s expectations, even if it means to change what already exist.

Now let’s play a little game.

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To understand enterprise 2.0 companies should learn from theory of constraints

It’s funny to see how history seems to be endlessly repeating, how issues that have been fixed years ago are coming back to the surface.

Because the question of productivity, time management, ROI in an enterprise 2.0 or in a Service Oriented Organization remembers me of something that already took place years ago (and was fixed) in manufacturing industry and seems to be breaking out again in the knowledge and services industry.

It’s nothing more than a nth application of theory of constraints (TOC).

I first looked into this case when I was a student and was very interested in optimization issues (finally I didn’t change that much since I’m mainly blogging about optimizing organization in a knowledge economy context). At the end of a manufacturing management class, the outside contributer advised me to read “the goal”, from Eliyahu M. Goldratt.

First surprise, it was a novel. The proof of the power of storytelling because I’m not sure I would have been caught up in this if it had been writen in a more academic manner.

Second surprise : I was really slapped in the face to realize I had to unlearn many thing I thought being unbreakable truth. The young and inexperienced student I was at this time was convinced that everything was about productivity and outputs there was no sheet anchor. I learned, on the contrary, that it was sometimes efficient to have employees that don’t work and machines that don’t produce anything. It was not that idiot : if the final product needs many pieces to be assembled, it’s no use having a huge sock of “A” if “B” needs more time to be produced. Doing this drives stocks that cost lots of money, so it’s sometimes better to slow production down, even interupt it. And the employee that is, as a consequence, not working, helps you to make money because he’s not making you loose money by creating stocks.

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