Does your enterprise social network really make you more productive ?

Summary : one of the most frequent arguments used in favor of the implementation of an internal social network is productivity improvement through the ability to access and mobilize resources more easily. While that’s an undisputable truth at the individual level (and provided the tool is used by enough people), it does not mean that the company is made more productive : optimizing tasks and optimizing the chain of tasks that lead to the final deliverable, what is the only thing that counts, are not the same thing. So, companies will have to consider their whole production processus and identify their bottlenecks that prevent the chain from taking the most of local improvements.

One of the promises that usually come with a social network (and even with “anything 2.0″) is that some time will be saved. Since, in order to deliver the expected results, people and knowledges have to be put together in order to make progress along a processus, the more these resources are available and accessible, the faster problems are solved, solutions are found and the better decisions are.

So, here’s a very usual indicator : if any employee losts 38 minutes a day to find information, documents or people, if he can save 5, 10 or 15 minutes a day, it means x minutes a week, y minutes a year, what can easily be turned into money. By saving 5 minutes a day, your employees will make you save billions every year.

Hearing such a thing, and even if the promise is seducing and the logics credible, many managers feel there’s something wrong and they’re often right : 5 minutes saved every day, or even 30 may equal to…no saving for the company. But we must not throw the baby out with the bathwater : it’s possible to deliver the promise provided we focus on the right thing.

5 minutes saved at the employee level are…saved at the employee level

So imagine that an employee can save these much-touted 5 minutes a day ? Does it mean that he’ll be productive 1/2h more a week ? 5 minutes is the time for a coffee  break and there are many chances he will use the time he saved for his own purpose. He may also use it to cool off, knowing that even unconsciously he’ll adapt his pace to deliver at the due date. So if he realizes he can save time on some tasks there are many chances that he’ll take advantage of that to slow down or start later. I don’t even mention the case when these five minutes are 20 times 15 seconds…

Of course that’s a positive thing for the organization if employees can cool off, take the time to discuss etc… But that’s not what they were expecting at the beginning..

Optimizing tasks is useless

In fact, the whole value proposal relies on the optimization of a given task : search (whatever people are looking for). Yet, search is only one task, even a sub-task, in a more global processus.

Finding the right information or the right person helps to achieve any assigned task faster. So they can start the next earlier and so on and, at the end of the week, they would be more productive. That’s good for their individual evaluation and they’ll even be rewarded. But what’s the benefit for the organization ? None. The organization may even lose by rewarding people for something that did not change anything.

Generally, people are a link in a much longer chain. The task one achieves is necessary for another to start his part of the work and so on. If the first does things faster but the one who have to carry on or the manager that has to validate are not able to react as fast, some time will be saved for one employee but nothing will change for the company because the overall performance of the whole processus won’t be improved and, at the end, the client (internal or external) won’t be served faster. The only consequence of one employee being more productive is more files, emails and to dos for the others. That increases the pressure on the othere, brings more confusion, make things more complicated because they have to re-priorize things continuoulsy and disperse. In the worst case they’ll try to increase theyr own pace to keep up the with other’s and make more mistakes.

Optimizing people’s work at an individual scale seldom brings the expected results if the processus is not rethought and limiting factors, bottlenecks are not dealed with. It implies individual needs and actions are seen as understood as a part of a longer process that is sometimes formalized, sometimes informal (so to be identified).

It reminds me of a situation I had to deal with a few years ago. A manager was complaining that, despite of all the many undertaken efforts, the productivity of his team was not improving. Of course, he was thinking that employees had to be blamed on for that while the whole staff was close to explode due to the impressive amount of work they had to do and the high level of pressure. At the end, it was made clear that, since the manager had to validate all the files his staff has worked on before pushing it to another team…he didn’t have enough time to deal with all his team was producing. All the efforts the make the team more productive were dashed because he didn’t paid attention to his own role in the processus.

Understanding the whole processus is mandatory

So, it’s easy to understand that, once people’s day to day work has been explored with them and that some new practices that may make them more efficient, productive, have been identified, it’s important to think it as a part of a more global chain, to understand what one’s job serves (and whom), and look for bottlenecks. These bottlecks limit the overall performance of the chain and are often people at the center of a network (even informal), those most of the information has to go through. So they may be managers.

Then, each case has its own story, context and solution. Maybe the decision making process is not relevant, maybe an “a priori” validation is not necessary since corrections can be made afterwards when needed, maybe this part of the job can be handle by other people, maybe the only fact he can access his business tools while away from the office would be enough, maybe the “innovation board” does not meet often enough to deal with all the ideas that are submitted….

“Anything 2.0″ can make many things more fluid but won’t solve the bottlneck question that bridle “anyhting 2.0″ and prevent it from bringing significant performance improvements. Now it’s up to HR and managers to deal with that.

Finally it’s a very old debate that is much older than enterprise 2.0, it’s all about the pursuit of a local maximum vs. a global optimum.

Anyway, measuring any link of the chain is often misleading : what has to be optimized and measured is the whole chain.

Managing attention : a key challenge for the future of businesses

I’ve been willing to tackle this topic for a long time and seing Julien le Nestour‘s presentation at the last Enterprise 2.0 forum made me feel it was high time to put my thoughts in words.

Facing an increasing amount of information and considering the time we need to peruse, process, generate it, time is a key factor. In fact, even ignoring information takes time. But, on the other hand, I’m convinced that the assertion that we’ve reached a point of no return, that we don’t have time anymore to deal with more information is wrong. We don’t have a time problem but a prioritisation one. The point is not to have less accessible information but a better qualification of the information that’s pushed to us (the rest being accessible,findable in case of need) and a better hierarchisation to be able to handle what matters first.

These prioritisation and hierarchisation issues matter even more now that many enterprises and vendors realize that providing users with a unified collaboration context (ie the “unique customized home page” or “unique activity stream”) will be a major issue in the upcoming months. In the general public web we already saw a first attempt with Google  Wave : a service with a really impressive potential that was quickly deserted by those who were supposed to be its power users, those who had to centralize a large amount of information feeds in an unique interface and for whom prioritisation and hierarchisation were the missing feature. On the business side and according to what I saw at Lotusphere, Lotus Notes is also heading this way and I bet that the success of this new approach will highly depend on how the product will handle these issues. If it doesn’t…

So we have to identify some objective criterias for prioritisation. To make it simple, we can say that prioritisation depends on the value created while handling the information. For instance, spending one hour to answer a colleague who needs some information to handle a strategic activity or task is more important than spending one hour to read emails (or anything else) that are nothing but “for your information” emssages.

The same logics applies when trying to introduce a new tool in a context where the ROI is known for being very hard to get. So, Julien showed us of Schlumberger used another indicator called ROA (Return on attention) that helps to evaluate how a new tool is worth according to the value of the time of the user, the number of occurence of a given task and its criticality in a given use case (ok…I simplified it a lot).  This allows not only to easily justify a new tool according to its benefits compared to the current situation but also to take into account the importance of things like ergonomics in an arbitration thats supposed to be economical. As a matter of fact, maybe the best enterprise social software platform on the market has a blog feature but if the interface is so boor that the time people will spend to understand and use it will not be justified by the benefit in return, it’s better to take a tool that’s less “prestigious” but that will be easily used by anybody.

There’s also one more layer of complexity. Prioritisation is not only a matter of individual arbitration but a collective dynamic. I prioritize according to my own benefits and objectives, the anyone who sends me information prioritizes according to is own objectives. What can be strategic for one may be trivial for the other. So it’s important to have some “nice behaviors policies” (think about the other, wonder what is necessary…) and some arbitration mechanisms (when should I help, when should I say no…)

All these questions have to be tackled when tools are implemented, in the change management process and, beforehand, by vendors who won’t be able any longer to afford building bottlenecks and let users sort them out. These bottlenecks are a key issue in enterprise performance and have to be tackled in a systemic and coherent way by tools, business practices, management and organization.

Since real time seems to be a very trendy topic now, understanding its limits according to prioritisation issues may be quite useful.

I’ll conclude quoting Julien Le Nestour : attention is now a key resource, it’s scarce and constrained so its use have to be optimized in priority, even before funding.

The three dimensions of enterprise 2.0

There are many discussions on what enterprise 2.0 is, what it implies. There are many different visions, depending on each one’s interests. From one extreme to the other we start from an utilitarian vision (providing with new tools)  to end with a cultural big bang (new philosophy of organization and economics, new human-centric values). One reassures people even if it’s efficiency is still to be demonstrated and the other scares businesses. None of them is particularly relevant or irrelevant : there’s a piece of truth everywhere and each one builds his own vision finding the balance that meet his values.

This is not very helpful for businesses that are looking for guarantees and certainties. What about facts ? What should they believe in in order to figure things out ?

According to me there are three dimensions that structures the whole discourse on this topic. Everyone is free to mix them together…or not : they can apply either jointly or autonomously.

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Efficiency, performance, constraints and things 2.0

We saw in a previous post that one of the best ways to improve performance was not to push to people to make impossible things but to get rid of the constraints that crub their performance. Once that said, if the vision is understandable by everyone (rather than trying to push something large in a blocked thin pipe, better unblock and enlarge the pipe), it’s still useful to see what can be done in the day to day work.

So let’s find out what those constraints are and how to get rid of them. This will also be a good way to understand that enteprise 2.0 is not a goal by itself but a trigger to achieve organizational goals.

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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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Taking the most of intangible assets creates strong competitive advantage

A glance at McKinsey’s to read one of their latest production : “Using Power Curves to assess industries dynamics“.

A survey based on  150 companies revenue shows that performance doesn’t follow a bell curve but a “power curve” that shows that most companies in a given indistry are above the average. What, said differently, means that few leaders take the biggest part of he revenue and only leave crumbs to the others. Said my way it means that many companies are failing to keep up, what is not an issue in a context of growth when it’s always easy to make feasts with lots of crumbles but is worrying in the current times.

One interesting point of the survey, even if thinking it explains everything would be naive, is about the exploitation of intangible assets in a given industy. In this case the curve is more pronounced than for industries using more conventional assets.

Power curves are also promoted by intangible assets—talent, networks, brands, and intellectual property—because they can drive increasing returns to scale, generate economies of scope, and help differentiate value propositions.

This survey is sectional. I would have liked to know what makes the diffrenece inside a given industry, that’s to say if the impact of intangible assets was likely to be as imporant in “tangible assets” oriented industry  where immaterial capital would have (or not) a major role if it was more taken into account.

A crisis that’s not that economic

Many people agree to admit the time has come to built a kind of new economic order, the drifts of the current system having lead to the situation we all know. But, saying that, people often neglect what I consider being a management failure. As for the hen and the egg it’s hard to say who was responsible but we have to admit both successfully helped one another.

Weeks ago I wrote that logic without good sens leads to catastroph and worried about companies who only had halve strategies, that’s to say that focus on exploiting the present without thinking of allocating part of their ressources in order to prepare the future. Said differently, it’s like promising a linear performance when they only give themselves enough assets to follow a curve limited at its top.

Recently I was backed up by a note by Jon Husband who pointed at an  interview of Henry Mintzberg who was saying it was more a management crisis than an economic one. An opinion I share. A few points I bring out from this interview [Read more...]

How can we tell we are productive…or not ?

According to me it’s really a key issue for the future of organization, call it 2.0 or whatever you want. I’m not talking about the need for productivity but about what productivity is and how we can measure it and say someone is productive or not.

When I was young it was a typical excercise in maths classes : “and at the end can you tell us how many pieces the machine will have produced”. Ok, the purpose was to teach us multiplication and division. A few years later we were old enough to be taught it only worked in a system without interdependance and variability.

But the exercise was always the same and was about a machine or a person doing a repetitive, well known, invariable task. And most of time it was a task in a manufucturing process which made possible to identifiy a product and give it a monetary value.

Today, people’s productivity a key issue and everybody has nothing but this word in mouth. But we have to admit that, beyond the words, the definition of this Holy Graal is very vague. Everybody wants to be productive, wants other people to be productive. But none can can tell clearly what it means nor how the can measure it in order to objectivize what’s nothing more than an impression.

So I’d like to know how you determine your own productivity and as well as your team’s. Time of presence ? Of active presence ? Number of achieved tasks (repetitive or variable tasks ?) ? Created value ? Do you find what you use satisfying or do you think it’s only better than what’s worse, a kind of stopgap.

All your feedbacks are welcome…and feel free to ask you friend to answer. The more information we’ll get the more exhaustive our reflection will be.

PS : For french speaking people, there’s already a few relevant answers on my french blog.

Logic without good sense leads to catastroph

Two weeks ago  I attended a graduation ceremony. In such events I often find speeches boring, but this time I was really interested to ear the message that would be delivered to youn managers/entrepreneurs who will need to find their way in the business world in a time of crisis.

Finally I liked the way things were said, wih lucidity. I left with the title of a book I should buy and a very meaningful quotation : “logic without good sense leads to catastroph”.

What’s logic ? It’s what allows to draw certain consequences from established facts, most of times upon an experience based reasoning.

Good sense ? It’s what makes possible for people to realize that something obvious isn’t that obvious, that a good a priori choice will have negative effects, that avoiding complexity isn’t always a good thing. And that, sometimes, logic has its limits.

Logic is reassuring. It puts things into systems, into equations and gives us certainties about what the future will be. It’s consecrated bread for companies. We earned so much this year so if we do the same the same year we’ll earn as much money. A salesperson had such figures this year, so he’ll do at least the same next year. This way of doing things always worked…so it will work again. If an option matches such scoring criterias it will increase our performance…

Good sense tells us logic does not always work. Examples : the 100m world record is improved by 1/10 second every year. Logic tells us one day people will run the 100m in zero seconds and will break the sound barrier. Good sense tells us it’s impossible. Logic tells us a salesperson car improve his performance by 10% a year. Good sense tells us one day he’ll reach a ceiling unless you are ready to  assume one people would be, one day, able to generate the equivalent of French GDP by selling peanuts at the corner of the street.

Logic, when applied to performace, makes us want to brings everything back to a linear function. So companies make promises and built models based on that. Good senses makes us say performance is rather a curve which asymptotic character is often forgotten. It tends with more and more difficulties to something but never reaches it. Do you remember when you studied functions limits in methematics class.

The two functions seem to coincide during a long time, during decades. Sometimes the performance curve can even be better than what’s expected. But the day comes then they cross each other, split. And what happen then ? [Read more...]