If it matters measure it. If it’s new build a new frame of reference.

Summary : When the world and the economy are transforming, the existing frames of references on which be base our thinking and decision making become obsolete. To adapat to their current and future context, organizations not only should have the vision of what they want to become but also implement it in their employees’ day do day work. Not superposing two opposite models in order to let change happen without daring changing the existing but replacing the one with the other. It only makes sense when employees are provided with tools and indicators that favor and reward actions that are aligned with the new model and not with the old one anymore. It also helps to measure the impact of change and measure how far they’ve been. That seldom happens in enterprise 2.0 projects because of a lack of reflexion on new frames of references. Fortunately, examples coming from other fields shows that when one really want to do things well and deep, change is possible and measurable.

A couple of weeks ago I was invited by Danone to talk about their social responsibility program, what made me learn a lot, believe it nor not, in terms of organizational transformation and had many things in common with enterprises 2.0 approaches. How possible is that ? Read what’s coming in the following lines.

Like many enterprises, Danone has understood that the environmental question will be key in its business. It’s already a cultural fact that is not new at all (remember that Antoine Riboud, Danone’s former CEO, used to say that the responsibility of the enterprise did not end at the facilities’ doors…30 years ago) and new an economic fact. There are many chances that, in a near future, carbon will be monetized, so managing it efficiently leads to a competitive advantage.

How did danone do ? First by stating it in its corporate values and project, long before it becomes a trendy topic. Anyone who has a few contacts with Danone knows that concepts such as double project ou triple bottom line are known by everyone and are a share concern. Such an approach need to be embodied and the discourse has to be turned into action. So Danone established a “Nature VP” so the environmental concern has currency at the very top of the organization. But, since Danone is a business and that there is an economic reality behind all that, that people need to change the way they understand and feel what added value means in such a context, they even established a Nature CFO. The logic is obvious : we’re entering a world when things that used to be secondary are becomming essential. So they need  to be integrated into the value calculation system so what was a cost in the previous vision becomes an investment and an opportunity in 2012.

So they invented “green Capex”, some very concretes things to implement to translate this vision and awareness into business. Looking for ROI on a 3 or 5 years scale to take time to learn and not give up too early. But there were no relevant indicators to do that. So they could have come to the conclusion that it was not measurable, what could have lead to the consequence we all know : the project would have become a dead body because no one would have been able to see its impact or one’s personal contribution through one’s decisions, not even the interest of changing one’s thinking and decision making model.

So Danone worked on designing new models allowing to measure the impact of their business in terms of carbon and its short and long term financial consequences. They experimented it on the field, tried to make the most of new data, made an empirical job then tried to model. The organization tried to measure what matters, since it matters. That’s as simple as that.

It also helped to make something else possible : reducing the carbon footprint is now a part of executive’s evaluation and reward system. So everyone, at his own level, in his business unit, in his field is concerned.

But they still were trying to make sense of it for more and more employees. It means that anyone should understand his own role, impact, contribution to the project. It also means that, when facing two possible choices, one making sense in the old paradigm and the other making sense in the new one, they people should make the right one without fearing to put their performance at risk and sacrifice their bonuses.

So Danone co-innovated with SAP to integrate this new model in their business tools, in their production management system. It was all about putting the new model at work in employees’ day to day lives, in the flow of work and avoid schizophrenia. No contradiction here anymore : there’s a single model, a single vision and not an ideal one set on the top of an old operation model that has nothing in common. All indicators, measurement tools, tools supporting processes takes it into account. SAP brought the technology and Danone its knowledge and IP.

Anything in common with enterprise 2.0 projects ?

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The problem with knowledge economy : it does not exist !

Summary : Enterprise 2.0 or social business initiatives aim at crafting organizations that fit what we call the knowledge economy. And that’s quite hard…for one reason. The knowledge economy does not exist. Knowledge work and workers do. Not the economy. What’s missing ? A global environment that would help its blooming, its take-off rather than forcing enterprises to make industrial decisions on matters that are not industrial. Education, law, tax system, accounting has to be rethought from a new angle. In the meantime, anything undertaken by organizations will be bricolage : it will need lots of efforts for marginal or even futile results regarding to the deep transformation challenges that are at stake.

When we talk about new organization or management approach, about the tools that support new ways to communicate or collaborate we often use the knowledge economy as a justification. Moving from an industrial to a knowledge economy means a deep change of context and responses of a new kind from businesses. That’s an obvious fact and none of the current social business or enterprise 2.0 expert has coined anything new : there already was an abundant literacy on these new forms of organization while most of os where still learning writing and counting at school. If we take the technology side apart, any old book from Peter Drucker could be a best seller if published today with the same texts and a socially fashionable title.

So knowledge economy is there and both organizations and people have to deal with it. But what do they do it so slow, with so much reluctance, fears and doubts ? Why can’t we see this draught, this collective march that happened when the world faced its last similar evolution ? The answer is easy : because the knowledge economy does not exist. Not because it’s a dream kept alive buy a few passionate and lunatic people but because it’s not a concrete reality, foundations on which we’ll be able to craft the future.

A field was not enough to craft the agrarian economy. A factory and some steam or electricity did not found the industrial economy. There were organization models designed for the factory. Labor laws evolved to lead the change. Financial mechanisms were set up to make the requires investment possible, what made industrial economy grow. A factory did not made the industrial economy but a set of rules, practices, mechanisms did. They turned a need and an opportunity into reality.

So, what’s about knowledge economy ?

One swallow doesn’t make a summer and a knowledge worker does not make a knowledge economy. Knowledge work exists. Knowledge workers too and they represent each day a bigger part of the working population. They are the resources that may help to build a sustainable growth for the future. But that won’t happen unless some requirements are met.

As a matter of fact, even if the potential exists it’s poorly exploited. First because businesses don’t do everything possible to make the most of it…but that’s an easy pretext. Businesses  also are  looking for sense, for reasons to do things. They don’t find these reasons because they are operating in an environment that did not change that much during the last 50 years. Consequence : they struggle to reinvent their model, to reinvent themselves. Evidence  is those that success, that find the way of a new durable growth, are those who made choices that were both “obvious” regarding to where the world is heading and crazy according to the current environment in which they operate.

What’s missing to craft the appropriate environment ? [Read more...]

Borrowing profitability from the future ?

Summary : in the knowledge economy economy era, investing on human capital development is key but stays marginal because of short term profitability logics. But does this vision actually creates value ? Locally, for the enterprise, it seems so. But globally speaking the question is worth being asked because the related costs does not disappear but are shifted to the society or the future of the enterprise what, in fine, backfires in a long term perspective since it’s becoming harder to pay the debt caused by decisions made in the past. As cycles shorten, it may lead to a dead-end.

A couple of days ago, a started reading again The New Capitalist Manifesto: Building a Disruptively Better Business by Umair Haque.This book was already brilliant when it was issued even if it more comfortable to think that the author was exaggerating too much, that his predictions would never happen. Less than one year after, the least we can say is that he was right.

Many concepts and ideas developed in the book look innovating, disruptive…too much according to some even if the news tell us the contrary. A better explanation would be to say theiy’re thought-provoking. Among these ideas, there’s the one according to which enterprises have been borrowing  their benefits while shifting costs to others for decades and that, one day, the debt becomes so big that the whole system jams.

Practically speaking it means that profitability is often overestimated because enterprises don’t assume all their costs that are shifted to the society of the future of the organization. Environmental costs, training costs…many of these things are known under the name of corporate social responsibility. If the whole costs was taken into account we would see that lots of enterprises are not socially profitable. Le system works until the day when shifted costs became so big that society can’t deal with them. And it backfires on the enterprise.

Social Business and triple bottom line experts (not the social business used to rebrand enterprise 2.0, the real  Social Business) will find here some concepts they know quite well and that I’ll sum up using the words of Antoine Riboud when he was leading Danone : enterprise responsibility does not stop at the enterprise’s doors and making one’s ecosystem poorer to become oneself richer will cause one’s failure because it kills future markets.

I don’t claim I’m able to have such a deep thinking as Haque but, by thinking about these things again and again to assess how relevant they were, I ended asking myself a couple of questions.

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The future of business starts at school. Still a long way to go

Résumé :despite enterprises know they need to change the way they work, they make very slow progress at undertaking a deep change process. The unwieldiness ot their organizational structure is not the only reason to that. People have become the slow factor of change and not only because people don’t like to change. Change implies to re-learn many routines deeply rooted into our minds. If habits are learn young and get rooted over time, we are forced to admit that our education system is key to provide enterprises with a human capital that meet their needs if we don’t want to enter a loose loose game where enterprises struggle to make profess and people lose their added value and their ability to find a job. Enterprises operate in a global context in which they don’t own all the levers and it’s getting essential to build educational systems that favor the learning of collaboration, creativity, mastering a knowledge intensive environment…as well as a proactive attitude toward the emergence of new jobs for people who’ll need to be “oneself entrepreneurs”. Both society and enterprises need new behaviors relying on new values. What means an education system that promotes and teaches them…

Note : This post is mainly bases on my knowledge of the french system but there’s no doubt part of it also applies in many other countries. Those who’d like to know more, laugh or be scares may enjoy this article and all the links it provides.


Despite the fact a wide consensus exists on the need to reinvent the operation and management model, everybody knows it’s far from being easy. In such approaches, people are the slow factor. Their reluctance to change is often mentioned as the main cause but that’s only the visible part of the iceberg. Most of the change process is about unlearning, forgetting wrong reflexes and habits. That’s true for people who’ve been in the workforce for decades but also for the younger. The reason is well known : the “human software” is being programmed from the early years and habits learned young get so deeply rooted that it’s hard to change them afterwards. Contrary, with time, it’s getting harder to acquire new behaviors, most of all when they are the opposite of what has become a part of our unconscious.

In 2006 I wrote on the bad habits we were taught at school, explaining why the damage was already done before people enter the workfoce. Unfortunately, I have not seen any kind of improvement coming and the few smart initiatives are too isolated while we need a critical mass of people sharing the same mindset.

Let’s review some key points.

• Collaboration

I won’t repeat what I wrote in the above mentioned post. But if people are taught young that “one only learns alone”, “knowledge and ideas have to be kept for oneself”, “others should not know what one thinks or does”, it’s easy to understand how they’ll behave once adult. Ok, when we become older, group work is sometimes required by professors. But it’s too late. Rather than thinking together, share and elaborate a common vision, we only divide tasks up according to what each one is better at and the result of the all the individual work is gathered and stacked up instead of being melt. The final result is the sum of all individual skills, never more, what is not what collaboration is about. Of, course, groups form depending on people’s level…a group of good pupils or students will never allow a less talented one to be burden.

• Learning and understanding

In a knwoledge economy, learning, knowing for the sake of knowing is not enough. We need to understand things, make knowledge ours, be able to understand the context to reuse things later, adapt them. That needs exchanges, explainations, discussions, what are the opposite of our model. Of course, writing pages and pages during classes (most of time, nothing more that what’s in the books) may help to learn. But not to understand. Conversations ? Professors know, pupils listen. And the first is infallible so the second should not ask any question implying a answer like “I’m not sure” or “I need to check”.

In the same way, people able to understand the complexity of our world should not be focused on one only discipline, they need of broader understanding of things and their context. Understanding the world, finding relevant models by learning from the past without making the same mistakes needs some historical, economic, geopolitics backgroup…even for future scientists or people willing to spend their lives working with numbers. Our model makes the young starts specializing too young and overlook lots of matters that would help them understand the context around their major.

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Process, enterprise 2.0, lean and agility

Summary: enterprise 2.0 has often been shown as the opposite of formal organizations and processes that have been the rule until then. What raised a keen interest from and fear for others who know that enterprises, organizations with a production purpose, can’t live without processes. In “Enterprise 2.0 and processes”, Yves Caseau shows that putting the one against the other in a Manichean way is wrong and to what extent each one improves and completes the other.

I usually don’t write about french books on this blog, for obvious reasons. By definition, most of the audience I have here can’t read french and even for those who do, prices are too expensive on amazon.com for imported books. But I decided to make an exception for this one because I think it brings a new way of considering things that is worth knowing about for anyone.

This book is Processus et Entreprise 2.0 (Processes and enterprise 2.0 in english), and is about innovation and collaboration through lean management. It’s by Yves Caseau, Senior VP at Bouygues Telecom (large Telco, part of the Bouygues Group). This book is interesting because it makes us look at enterprise 2.0 with a new point of view in this kind of literacy and gives it, in my opinion, a new relevance that lots of CxOs many have not seen until then. As a matter of fact, the common vision focused on social media/communities/passion/engagement often turns its back on value measurement and relies on the only fact one is a believer or not. What I often call “Enterprise Denial” made the message hard to get in “our” european cultural context relying on rational scepticism. Caseau’s approach is different : it starts with processes and shows that enterprise 2.0 is the only possible way to keep them efficient in the future.

Let’s start with some words as an aside. Even if this movement may look odd, I did not came to enterprise 2.0 by the web but by short cuts that were more about operations efficiency.Many parts of  the management side of enterprise 2.0 (or, rather, all the things one should wonder to avoid staying in a world of angelic illusion), have things in common with Theory Of Constraints (anyone should have read The Goal at least once in his life). It’s also impossible to deny that new forms of management we are promoting can be found in Deming’s 14 points, Deming who had also a clear understanding of what what wrong in our economy….30 years ago. The list is very long… It’s interesting, even surprising, to see how the manufacturing industry has solved agility, quality, improvement issues while the world of services and knowledge relying on intangible flows is still struggling. Maybe because the intangible nature of flows makes visual management impossible or makes it easy not to see things one don’t want to see ? Maybe. We’ll discuss this in a future post.

So let’s come back to Caseau’s book. Rather than starting with the assumption that 2.0 (or social) is the answer to anything and try to make the enterprise fit in, he starts with the opposite approach. He starts with problems and ends with a solution that appears to be enterprise 2.0. Like it or not but enterprises are organized on processes that are essential and vital and this won’t change. I’m to talking about the caricature of processes we’re being inflicted to make it too easy to hold them up to public ridicule. but what they should be. Caseau makes it clear that processes should be as light as possible to be manageable, as agile as possible to be improvable. Hence the importance of lean management. Things become really interesting when enterprise 2.0, rather than being seen as a danger for steadiness and processes appears than being a lever that serves agility and innovation. In this context, conversational systems support ongoing learning, innovation and ongoing improvement.

He ends with the necessary cultural of human sided of this necessary change.

Contrary to what some like to promote, processes should not disappear but become people centric to make sense, be understandable, drivable, manageable, improvable. As a matter of fact, processes are here to serve both people and the enterprise while the reality is more about people serving processes. Caseau gives us an “understandable” explanation of the world of processes, quality, Lean, Lean Six Sigma and hits the nail on the head on things like KPIs, information flows management, meetings (that are the more elementary form of exchange…)…

This book will appeal to people who don’t see a clear link between the new paradigm and what the enterprise and its operations are about or see it rather like a danger. A technical book that those who love incantations, acts of faith and fairy tales may enjoy less but that reminds us that 2.0 and social are here to serve the organization. I endlessly repeat that enterprise 2.0 increases the human and knowledge capital that can be tapped to better process execution….that’s what all the book is about.

If I had to summarize the book in one sentence I’d say “looking at the future, feet on the ground”.

Processus et entreprise 2.0 is available on Amazon. It’s so expensive oversees that buying it on amazon.fr and having it shipped could be a better option. I think it’s also available on iTunes for iPad owners.

 

 

 

 

Tomorrow’s enterprise as a galley ?

I won’t teach anything to anyone by saying that, to make someone understand a concept that’s very new to him, an analogy with something known is often the best way to deliver the message. Note that this means is often an easy way for the “pupil” to help a too passionate teacher to keep his feet on the ground. Of course, we need an analogy that “talks” to the person either because he or she knows the subject well or because that’s about something that’s common to everybody.

The other day I happened to have a discussion with a couple of person and a new angle appeared in the discussion on “social” and things like that. It’s only worth what it’s worth but, after all, it’s summer, holidays so we can take the liberty of giving free reins to our imagination.

Let’s take the example of a galley. You know, a boat with people rowing, other shouting at them and one who rule. Let’s try to imagine what a galley 2.0 would look like.

[Read more...]

Should organizations limit collaboration ?

Summary :with the coming of social media in the workplace, organizations began to dream of a spontaneous self-driven collaboration that would get rid of rules and organization frameworks to deliver outstanding results. Today we all have to acknowledge that reality is quite different. Facing an impressive amount of possible options, employees are lost, all the more since the value proposition that’s been made to them made no sense regarding to their daily goals and constraints. Tom Davenport suggests us to limit the scope of collaboration in order to reinforce sense and focus : specific tools for a specific goal for a specific amount of time. But even if this way of doing things was proven successful with average uses, we should not throw the to throw the baby out with the bath water and forget community and serendipity principles : both can work together but are not about the same tasks, the same needs. However, Davenport’s idea may work for most people and, mot of all, directly applies to what’s key for them and impacts value creation.

With the coming of social media in the workplace, came the myth of a global, organic collaboration where everyone would collaborate with others not only to do their job but also to do awesome unexpected extra things, out of organizational silos. Years after, we have to acknowledge that it does not work. Or, at least, not the way we expected to.

The reason is quite simple to get and has been dealt with many times on this blog and many other ones. Everything started with the supposed universal and inevitable nature of networks and communities. But…

- networks shoud not be mistaken for communities…that are not teams either…

- communities are communites…and only exist by the will of people who want to more than their work, go beyond, out of the flow of their work. What is not what organization usually mean by collaboration.

- unlike the web where people using a given tool and sharing the same practices gather to do things together, most of work in the workplace happens in structured teams with known and defined people what implies that practices and tools have to be standardized within these teams There’s a big difference between gathering those who changed and change those have been gathered.

So, the “2.0 paradigmp” is still incomplete in the context of traditional production activities if not slightly improved. What reminds me of two things : [Read more...]

Trying to solve a business problem ? Don’t start with a social media plan !

Résumé : even if maturity on social media is increasing, we still hear to many incantations like “if you dont’ use social media you’re gonna die”. Not only the systematic nature of the discourse, applied to any subject is irritating decising makers and is not a good thing for credibility, but it’s also misleading. Saying that social media are the only way to do anythigs leads to tool-centric strategies instead of problem-solving driven strategies.  No tool will help to execute a plan that does not exist.

Clear-sighted as usual, Luis Suarez rencently wrote :”Dont’ start with the tools, they’re not your final destination”. I am sure that, unlike two years ago, everybody now understands this point of view and that even vendors, for whom it’s a very counter-natural and cultural point of view, now agree that their product is only a part of a global approach.

Yes but…

The small world of people convinced by social media still over-proselyte. The point is not about knowing whether they’re right or not but the manichean and systematic nature of the discourse. Consider any business issue. As soon as it becomes a little bit trendy, we can hear the “if you don’ use social media to….your enterprise will….”. What can be adapted to anything. “If you don’t use social media to innovare /engage / share / communicate, your enterprise will die / become obsolete / lose its customers…”. Maybe one day we’ll be advised to use social media to paint the office’s walls.

A discourse that raises questions in terms of credibility…and is even misleading because partly wrong.

A credibility issue first. Decision makers have been hearing this discourse for years, applied to any possible subject and its systematic nature is irritating them, and slowing losing its credibility. So, there’s no surprise they don’t listen anymore because they know what they’ll be told even before the gurus speak and the social media world is more and more looking like a sect where believers talk to believers.

Remember our childhood. And what our parents used to day to make us eat things we did notlike. “You should eat…. to grow up / not to fall ill / be good at school / not be feel tired”. Every time we felt a little ill or did not feel very weel, we could guess the answser prior to say anything. And, logically, it made use smile..but never changed anything.

Even worse : the discourse is wrong. Let’s repeat it again : Saying that if an enterprise does not use social media to innovate, engage or anything else it will face big problems is an intellectual swindle. You have an innovation / engagement issue, so install the right platform and wait… You may wait for a long time without seeing any change.

There organizations where everything is fine and employees are engaged, other that are innovative, other that are loved by their customers….and that don’t use social media. What does it mean ? It means that, before using social media to do anything, organizations have to decide to do this anythings, build a strategy and plan its execution. In many situations, social media will be a part of the system…but only a part. Organizations that are successful without social media today will come to it one day…but they have time because they already have actual strategies to address these issues and are not waiting for a magic tool to execute plans that have never been built for various reasons (that are not all respectable).

Social media will never help anyone to execute a plan that does not exist to serve a strategy that does not exist to reach a goal that is nothings more than a word that was expected to be self-achieving.

If you want to innovate, engage your employees, harness and capitalize on your knowlede….start by deciding to do so and build a real plan. Then choose the tools to support the plan. In some case you won’t need social media, in some others it will help you to deal with some barrieres and in some case it will help you to do much better. But if you start with the idea that you need social media to be successful, you’ll build a tool centric strategy instead of one that will help you to achieve your business goals because you’ll focus on how to make people use the tool instead of making the tool serve people that serve your strategy.

General Electric, for instance, had a problem solving system that have been working well for a long time “in real life”. Their internal platform only helped them to increase the bandwith of their system. They used social media to serve  real plan. Their system gives sense to the tool that improves the way the system was working. But without the pre-existing problem solving approach, the tool is nothing.

Social media are catalysts, accelerators, tools that can makes things incredibly more efficent and simple. But they won’t support a plan that does not exist. Their use will never solve any issue by itself and won’t prevent businesses to face their actual problems.

Nothing is lost, nothing is created, everything is transformed…but not luckily

Summary : there’s a missing link in the enterprise 2.0 discourse that does not reassure organizations. They’re being asked an impressive effort to generate information, connect people, they’re being told all the benefits they can draw from that but are not explaine the mechanism that will turn this information potential into tangible results. The fact this link misses is certainly one of the reasons that explain why we still lack some matter in the ROI discussion. This transformation, that’s too often overlooked, will certainly be made possible by the implementation of organizational and management mechanisms as well as a redesign of some process.

If a chemist observes an organization through Lavoisier’s words, he would say that it’s impossible to get anything from such a system :

• Nothings is lost : wrong, organizations lose everything. They lose their non capitalized knowledge as people retire of resign. The NASA and Boeing have already painfully learned it, but not everyone has begun to prepare the future. Worse, they can’t even find what’s within their walls. A former CEO of HP used to say “if HP knew what HP knows we’d be three times more productive”. The problem still remains.

• Nothing is created : that’s the difference between business and chemistry : businesses creates, and innovates. In fact that’s theory. Practically talking they don’t create enough. Not enough innovation, not enough solutions to new problems (or not fast enough) : it’s hard to find how to solve a problem, without even mentioning how hard it is to implement any new solution.

• Everything is transformed : of course…provided organizations want it. Not only a reaction does not happen by luck, most of all in organizations where silos are built to prevent elements to mix together and where any reaction has to be kept under control. The taylorian legacy dies hard and the “silos and control” approach still rules, what causes few transformation except by luck or when a manager builds a clandestine laboratory.

Many organizations understands this is a critical stake and know they should favor transformation if they don’t want to be at risk in a near future. Favoring information capitalization and sharing, breaking down silos to create and innovate more and faster…that’s a current (or scheluded) program in many organizations and initiates call it “enterprise 2.0″.

But, to be honnest, most of them are still afraid of embracing this new paradigm, wonder if it’s really worth. They’re still waiting for an answer to this questions, some in terms of ROI calculation some others looking for the certainty that things will improve. Said in other words, they want to be sure the new potential they’ll built will be turned into tangible results. That’s a double edged issue because it both brings an answer to a strategic questions and force organizations to think about reinventing the way their employees actually work, their managers manage. But that’s the difference between an actual improvement and a façade change. [Read more...]

What CRM is and what it should be

The good thing with acronyms is that they are easy to remember. Their weakness is that it’s easy to forget their meaning. Let’s consider CRM for instance, it means “Customer relationship management”. I repeat customer relationship management.

If we have a closer look, we are forced to admit that CRM has been lead astray to become, in the best case, a sales enablement tool and in the worse case a reporting tool to provide informations to sales managers without any benefits for the salespeople who have reluctance to update the data and often both this tedious task.

Don’t blame the tools. It’s the notion of customer relationship that’s been lead astray. Tools only followed the trend.

[Read more...]