Socializing your decision making process

A good example of process socialization is about decision making. A few weeks ago I read this interesting paper from Olivier Sibony (Associate Director at McKinsey). Since the article is in French I hope Google Translator will provide you with a good english translation.

What is it about ?

Making the right decisions is key to be a successful business. Nothing new here. But Olivier Sibony provides us with interesting numbers.

. Between those who have used the analysis tools the most advanced and recognize those who were far away, the performance gap is important: 2.7 points in return on investment between them. But those who have followed a process of rigorous and objective decision showed a much higher performance: the gain is 7.3 points ROI ! In other words, there are three times more to gain by using a method of decision-making!

The impact of a good decision is obvious and its ROI clear enough to justify enteprises invest in what makes it possible. It would seem obvious that the solution is to be brought by analysis tools and the definition of relevant indicators. Nothings social here. At first sight…

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When does the value of a “social object” have to be measured ?

Let’s be clear, I’m talking about value, not about ROI (although the one is a part of the other) and about “social objects” in the large sense of the word : everything that can exist on a social platform, when using social software. It may be a content, an information specially generated, an information shared from elsewhere, a mark given to any contribution, the contribution to a collaborative work…but also the time taken to do so, the attention mobilized while the person may have had something else to do at this time etc…

Behind the everlasting discussions about ROI stands, before all, the question of the value. Does what is done have value, and what value ? In which ways an information and the time needed to publish it can have any value ? You’ll notice that it turns the ROI question not into something about tools and contents but into something wider made of tools, contents, resources and …the context in which the information is used.

That is a point that is often forgotten : it’s the context that determines values, it’s its limiting factor, more than the intrinsic value of the information itself. An insignificant information may be very valuable at a given moment for a given person even though thousands people will have nothing to do with it. On the other hand, a capital information have no value if nobody uses it. It takes us back to a reflection I’ve had a long time ago about strategy maps : intangibles have no intrinsic value but their value depends on how it’s used.

Talking about an enterprise context, let’s make it clear that “value” means the ability to turn information into money.

So the point, not that trivial, is to know when value has to be measured.

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How to get results through social networks

It’s been a while I haven’t shared one of my “paper” readings. The most interesting book I’ve read these last months is Driving Results Through Social Networks: How Top Organizations Leverage Networks for Performance and Growth.

Businesses are now getting very interested in social networks, making the same mistakes they often did with communities : having a stactic and sometimes erroneous vision. Which leads to predictable results : “we don’t understand”, “where’s the ROI”, “what would make people use this software”….

It’s now time for businesses to understand that :

• Social Networks were not born with the softwares and services that wear the same same and that are only catalysts. It’s the way people have been actually working for a long time. Your company is full of social networks even if no employee has a computer.

• Social networks are not tangles of people who link together and share (or not) information. It’s a way of working in order to get things done. We talk too much of Facebook although business networks are different, have their own rules and purposes.

• Social Networks are not static things that are deployed and set up, they are changing, living things, which internal activity is not predictable.

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ROI of enterprise 2.0 : let’s use old recipes

A pragmatic approach used by many people is to say that, since we’re talking about a paradigm shif, the calculation of ROI can’t be done according to our current thinking processes and deserves an empiric approach.

Of course, knowing that there is no blinder person that the one who don’t want to see, some may answer that empirism is not a serious thing, that companies need a reliable formula to calculate certain results.

So let’s have a look at a good old methodology that no one could disagree with.

• Archimedes found the so cold theorem while having a bath.

• Isaac Newton made a major discovery while sitting under an apple tree from which a fruit felt right on his head.

In both cases, formalization came from experience.

Inspiring ?

Enterprise 2.0 is not only about communities

Since social media have been making its first steps inside enterprises and the context of enterprise 2.0 has been emerging, everybody has been talking about communities. As a matter of fact there’s no better tools to facilitate exchanges within communities, a very orld concept that was given a new youth by this “social revolution”. But this focus on communities, sometimes, makes things more complicated than expected.

Whether they could be communities of practices, of interest, of knowledge, of purpose, communities are supposed to make information and knowledge sharing easier in order each of their members get the most of the other’s and, at the end, everyone gets more than what he gives. Obviously, it’s a key issue for many companies but it’s still hard for them to measure it’s real value. As a matter of fact, the value of intangible is a field where financiers have still a lot of work to do and the fact companies makes things more complicated by forgetting to align knowledge with action.

In an operational point of view, organizations, for which it’s already hard to put numbers on the value of their community and determine the ROI of what improves them (so they ask their providers to take care of that although it should be their own job), often make mistakes when they have to select the communities on which they will focus.

First, becaucse they still are not very talented at identifying the real communities et often mistake those they would like to exist and those that really exist and need help.

Second, because focusing on the traditonal concept of community they loose sight of another kind of group that need this kind of tools and is not a community in the strict sens of the word but that is often forced to conform to a norm that does not fit its needs. It’s about the people who need to work together, in many cases in an informal way since it’s a resort when formal structures reached their limits. The best example was what was done at GE where what prevailed was “the need for people to deliver a process“. You should also have a look at this comment by Chris Jonhson.

This kind of group doesn’t form, can’t be managed, don’t necessarily need the same tools functionnalities as a traditional community. It may be quite disturbing for companies because it implies they have to take into account the way people acutally work, admit they need more freedom in the way they get organized….but it’s surely more lucrative because it’s easy to measure the impact of these new practices on operational processes and then to answer the “ROI question”.

Enterprises may aim at exchanging knowledge to improve everyone’s expertise or “technical and utilitarian” information to get things done. These two approaches are sometimes complementary but are very different in the way they have to be addressed. Applying to one the recipes that work for the other makes things more complicated and may prevent companies to get the more obvious and expected benefits.

Communautés, communautés-de-pratiques, Entreprise 2.0, réseaux sociaux d’entreprise, réseaux sociaux professionnels, réseaux-sociaux, roi

Measuring a system is more relevant than Enterprise 2.0 tools ROI

Before, everything was simple. When people were asking “what’s the ROI”, the answer was “today you are processing this kind of operations with 100 people working with a calculator and a clipboard, it takes one week and the risk of making errors is obvious. With our solution, it takes only one person to enter the datas and calculations are operated in less than a second”. Unanswerable, even if promesses were seldom kept.

Today, in the context of social tools, even if a consensus exists on the principle, finding the formula that turns what a tool can bring into a mathematical model is far from being obvious. The issue is easy to understand : we’re not talking about tool that do a defined set of tasks but about tools that make people more efficient when their job requires them to act out of a model of defined and repeatable actions in a defined human scope.

In brief we can define the ROI of an application that does defined and foreseeable things, not of those who make people more efficient in undefined and unprectable situations. We have to make our thinking model evolve from a “doer application” to an “enabler application”.

Before going further, watch this video. The ROI of the machine and the individual performance are easily calculable. And ask yourself if you day to job still looks like this.

Once done, we have to think about measuring what matters.

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Social networks : are companies looking for the ROI or something else

Whatever people may say, it’s still the hot issue of enterprise social networks. Considering ools that that are not processing tools strictly speaking, benefits have to be found on the new way of doing things they make possible rather than in the tools themselves that are only enablers. As I wrote here, benefits are not on the cloud but in the operational reality.

This said, the answer is still hard to be found.

So we may follow Forrester :

costs-benefits-internal-communities-forrester

I found the list of direct and undirect benefits very exhaustive and clear. But is that enough ?  No. If we can explain, for example, how intangible assets contribute to value creation, we cannot explain in which measure. Let’s consider the CISCO case. Chambers can give a backed up by figures ROI in terms of capacity to drive projects and in financial terms, but I’m not sure that when the decision was made had any figure he was automatically sure he would reach.

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Enterprise 2.0 : my predictions for 2009

Honestly I was not sure I would conform to the annual predictions tradition. Finally, since my 2008 edition was not that bad (shift from “social tools at people’s disposal” to the acknowledgement it needed inclusion in business process) and Susan kindly asks for it, I’ll try to do something interesing this year.

That said, I will divide my note in two parts. As any good “thoughtleader” sometimes mistake predictions for his own wishes, I’ll try to be lucid enough to clearly separate both and end my note with a few pious hopes.

Let’s start !

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Enteprise 2.0 : stop self-medication

As the “enterprise 2.0″ phenomenon is more and more mature, reflections about “what it it” are being slowly replaced by thought about organization, the financial side, feedbacks and “how can we do it” ?

Even if there are few directrix, there are as many way to succeed than there are many companies, the organizational and management side of enterprise 2.0 making many things depend on the company, its culture, its people. On the other hand, many feedbacks tell us what not to do. [Read more...]

Collaborative enterprise project : Feedback Needed

One of my contacts is progressing on the HR component of a corporate project. He lauched some projects, initiatives and would like to exchange about it with people with similar experciences in order to share best practices, idees and make headway together.

Here’s his request.

Hi,
I am managing a programme called Alstom collaborative Way. I’d like to get a dialogue about it. Today, tools exist for and success stories are already starting to come through.
Today the next steps is to manage organizational enablers and blockers and identify how to best capture the benefits of collaborative ways of working. So, feel free to suggest your answers and comments on how to do this.
Alstom is a leader in Power and Transport sector (76,000 people in 70 countries). The programme “Alstom Collaborative Way” aims to enhance employees’ collaborative ways of working by integrating in their practices the use of communities of practice, networks and collaborative information systems. Its goal is to provide means to facilitate, reward and favour the Search, Sharing and Connection between people and between data
The steps of the programme have been: First provide building blocks for a collaborative working environment* for Early adopters and Pilots (see above the 3 “building blocks”). Extract from this tangible proof of business value and take stock on needs for change in order to ensure organizational support of collaborative ways of working. Lastly, pull for the alignment of organizational policies and processes, culture, IT and people management tools.
Example component of the “collaborative working environment”
A policy that sets the Frame for governance and golden rules
A portfolio of IT collaborative tools (“Web 2.0.) such as: Blog, Wiki, Search engines, RSS, document-sharing solutions, Intenal Yellow pages.
Alstom University training content and assessment are aligned to ensure learning is also done through peer-to-peer coaching or exchange of knowledge and creates networking opportunities.
Toolkits to animate small and large meetings in a collaborative way (Open space, Fishbowl, best practice-Marketplace, Cafezhino, Knowledge café, 4-game brainstorming workshopTM).
Collaboration as part of our Competencies framework (basis for performance mgt, promotion, recruitme

You can contact him directly by email : slim.lambert (at) chq.alstom.com

But you can also discuss the topic here.