Enterprises far beyond enterprise 2.0

A few weeks ago I amused myself proposing a few tracks on what enterprise 2.0 may be in 2009. But I think pushing the reflection beyond would be worth : enterprise 2.0 is only a side of a much complex reality that is enterprise and will be of any use only in a global framework. Since enterprise, and economy in general, can be defined as the place where more and more numerous interactions melts, believing it can be improved by only cosmetic improvements. Evry initiative that’s not aligned with a macro vision that will take all these considerations into account won’t bring anything worthy.

So, let’s put ourselves in the main player’s place.

• The top management

The less we can say is that top management is very worried. Because of the downturn, CEOs are trying to protect the organization. It’s hard to find more revenue so, in order to preserve the result they want costs to be cut. Or spendings, which is not the same thing. In the other hand they know that if they keep on cutting costs, they will soon be unable to make any cent go in the bank so they try to find how to make work more efficient, to work on costs instead of expenses. And, finally, the idea of business networks comes to the surface. But how to make it happen ?

On the other hand, this crises is about something deeper that worries them a lot. Always promising more has its limits and now it seems that these limits have been reached.  Do they have to stop promising the moon since they know organization’s performance have its limit and trying to balance it with financial performance leads to the situation we now know ? Do we have reached the limits of a system and is this crisis the consequence of a management model failure. Do we have to reinvent the way we do business ?

In brief, an increasing demand for more responsability and sustainability in management, that is not so far from a tendency that brings many companies to think their development together with their human ecosystem’s in order not to ruin their tomorrow’s markets.

Many issues that have a lot in common and that, without forseeing the answers that will be given, will have to be taken into account this year.

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What are the limits of your organization ?

In a previous note, I asked you to sort out what can be improved but has no impact on your organization’s final performance and what is a real limit for the organization and which capacity should be increased.

This is a non exhaustive list you can complete according to you own experience. It’s about what we often hear when working on an organizational evolution or transformation project. Keep in mind that working on a “non limit” doesn’t improve anything in the overall performance.

• Control : are the current performance problems due to a lack a control on people and what they do ? Will your company be more efficient with more control and less autonomy for people ?

•  Interactions : does the fact it’s hard to build “employees to employees” interactions a barrier to organization performance ?

• Indicators : will the organization be more efficient with more indicators and reportings ?

• Identification : does the fact it’s hard to quickly identify relevant people on a given issue have a negative impact on performance ? If we make this even more difficult, will it improve the overall performance ?

• Workflows : do you suffer from a lack a workflows ? Will more workflows improve the overall performance ?

• Agility : would more agility have a positive impact on performance ?

• Agilité. Est ce que davantage d’agilité aurait un impact positif sur le fonctionnement de l’organisation ?

• Decision making : would the overall performance be increased if decision making was closer from its subject (subsidiarity, empowerment…) ?

• Feedback : is the lack of feedback, of bottom up communication a barrier to performance ? Or would less feedback have a positive effect ?

Answer to each question and you’ll know where to go. By deduction, you’ll also know that every point that got a “no” is not a limit to overall performance at this time and that reinforcing it is a waste of time. For example I guess that it will clearly appear that spending time on discussing control issues in an enterprise 2.0 project is a nonsense because the lack of control is clearly not a limit.

Perharps some “no” would also need not to be reinforced but to be lightened…

PS : Maybe solution to the limits you will identify will sound very “enterprise 2.0″.

Can indicators take us in the wrong direction ?

Whatever some may think and even if the small enterprise 2.0 world have been overcatious with this notion, measurements are essentials because they help to validate, undersand and manage what’s done.

Except for experimentations (though come to think of it …) and matters of urgency, nothing is done holding one’s  wet finger in the wind.

Everyone who tried at least once to make things change in any organization certainly suffered from indicators’ dictaortship. As a metter of fact it happens that new things sometimes makes indicators turn to red. But could we (heretically) wonder if, sometimes, indicators takes us in wrong direction ?

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Normally, indicators are set in order to evaluate a defined operational model. But, since we are in a context of change, it’s obvious that new ways of doing things won’t match the existing ones, so that they need their own new indicators. In this kind of situation, the biggest barrier to change is that new things differ from existing ones. Scary. Envisage a future because present has to be improved and then refuse it because it’s different from present is quite an interesting mindgame.

Example : in a factory productivity may be a good indicator. When the market gets weaker, refusing to have stocks may also be a great idea. But trying to keep the “stock light” green supposes the productivity light to be red.

It appears that indicators don’t have to be rigidly set but have to evolve according to the objecftve/constraints couple.

That’s not because something is measurable that it has to be measures, it’s not because an indicator exists that it is relevant : indicators have to follow organizations but don’t have to determine it. It’s another clear example of confusion between means and goals.

Can we think we are in a situation of dramatic context change that can makes us revisit some classical indicators ? Some already began with financial ones.

Are organizations trying to push their limits or to please their indicators ?

Whatever the period is, whatever the company’s context is, the goal is to do better. Many projects are launched, what can be changes is changed, sometimes it’s sucessful, sometimes not. Whatever, people will soon have to start over, either for fixing what didn’t work or to improve one more time what’s been improved.

Must we think that managers are doomed to endlessly face the Sisyphus myth or would there be a mean to focus on what really works.

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First of all it could be useful to define what “better” means. For some it would be a qualitative notion, for some others it would be to do more, or with less resources, just when other people would focus on the way their team work. So “better” means a wide range of things.

As for the fact people have to always start over new projects in order to do “better” or “more”, I think it’s something that won’t change. Since the word permanently changes it’s obvious that any solution that works at a given time will be outdated one day or they other. The search fort “better” is not a goal in itself but rather an ongoing process. Those who are interested in this question may have a look at Deming‘s work.

That said, distinguish projects that worked from projects that failed is not that easy. First, before a project can be successful (cost, quality, deadline) without having any impact on the organization and its performance. There are also projects that have a positive impact which is the unexpected side effect of a failde project (remeber 3M’s Post It…) or a lucky idea implemented locally without any macro consideration.

If every project’s purpose is to improve what exists, it’s important to know what has to be improved, since everything can be improved provided enough time and money are available. So the common attitude is to try to improve everything that can be. Decision makers have a wide range of options at their disposal, starting from consultancy, organizational change to the acquiring of new machines, new technologies, in which they have to chose what to do. Most of time, due to the presure of having quick results, they chose what will bring the most visible results for the fewer costs, which is not often a good solution.

Exampple : a small investment allows to raise a machine’s capacity. It could be done in a short time without any impact on the organization nor on people. Very quickly an higher production and, mechanically, a drop in cost prive will be shown. So things are “better”. Now imagine, this machine already had too much capacity, that’s to say the market didn’t need its whole production. So the only impact of the improvement are the fact more stocks are produced or not to use the added capacity you just invested in.

Another example : a manager notices a part of his team in not very busy. Horrified to support useless people on is  budget, it decides to put them at work. To he assignes some of them peripheral and useless tasks, some others are given a new mission that is not that usefull but that will keep them occupied. And then since they have time, he asks them an higher level of reporting. Now imagine (sure…it’s something that never happen in any company) they are not fully occupied because they are only a step in a process and the people in charge on the previous step don’t produce enough or as quickly because of any reason. The manager’s decision doesn’t have any impact on the final result, they don’t create any value. Worse, perhaps those people will be overwhelmed when they’ll be needed for something really useful, when things will come back to a normal situation.

In both case the same mistake was made : the improvement didn’t impact something that what a limit. It may look appallingly trite but any improvement that impact something that is not a limit in a system doesn’t have any impact on the overall performance.

Now, how many times when trying to decide anything, to launch any kind of projets, issues thare are not related to any limit appears in the discussions and prevent people for adressing what is a true limit ?

In these times when all companies try to improve the way they work, does either their focus or objections point at the right things ?

In other words, according to you, what are the true limits in our organizations ? Things that, if they are fixed, will really bring an added performance compared to those that won’t change a thing.

indicateurs, Management, organisation

Looking for 2.0 indicators

Sorry, this blog is very late compared to my french one and I’ll make everything possible to have it updated more frequently. I have a scheduled note dealing with indicators in enterprise 2.0 but it was supposed to be published after my series on “what’s an enterprise in 2007″ and I can’t wait to introduce this subject since I read this very interesting post. It deals with participation in communities but I’d like to tell you a few words about one of its assumptions :

“Given limited time and resources, where do you spend your time to increase participation?”

Ok time is actually limited but can we find a way to “unlimit” it a little. According to me time is limited but in the whole working time, time allowed for participation is not only limited, it’s often equal to zero.

Why ?

The time I give to participation lowers my productivity that’s evaluated locally by my manager. But this time, once converted in money (that’s the real point) may create 10 or 100 times its value in another part of the organization : little local loss and big global earn. But since my manager is in charge of local indicators he has not interest in global, and letting me participate is a logical nonsense for him (despite he knows it’s goog for the organization)
At the community era, do you think we can deal with post-Taylor indicators anymore ?

Does the fact people are evaluated  locally since creation of value is global (with the assumption that in any enterprise value making is the main and only goal) seems to be a nonsense for you ?