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.

 

 

 

 

Being done with the enterprise 2.0 value discussion

Summary : many still wonder what new tools will bring to their organization and still have trouble visualizing the benefits. The reason is simple ; they imagine these tools in their current organization while it’s difficult to see their contribution out of a new way of working. Organizations built rules to accomodate to the constraints of existing tools. If these constraints are removed by new tools, organizations have to built new rules that will replace the current ones.

I recently found this post on the value (or lack of) of a new technology. It applies to new technologies in a general way, applying it to social software is very instructive.

First, let’s try to answer a few simple questions.

1°) What’s the main power of this technology

It makes information sharing easier and more efficient as well as enterprise-wide discussions related to business issues, the whole taking place out of organization and application silos. It allows anybody to identify, mobilize, put together all the information, data, expertises and people on a scale that was impossible before because of the above mentioned silos. So it allows, in fine, to provide employees with what they need to be efficient in what is called the “knowledge economy”.

2°) What are the limitations this technology is removing

The difficulty sharing unstructured data, identify information and people out of a silo.

3°) What rules were built to accomodate these limitations ?

In the context of a given business process, organizations started with the assumption the information needed for delivery and decision making was not findable. So they built operation models that rely on preset rules aiming at minimizing exceptions even it it meant to deliver an acceptable result in any situation but never something adapted to a very specific need. Assuming this, knowing that people will never have to look out of the process, the time allocated to informal-out-of-process-and-silos-collaboration was considered as wasted time…what impacted the way people were measured.

List to be continued…

4°) What rules should be implemented now  ?

I won’t elaborate that much on this point because it’s specific to any situation and many contextual elements are needed to give an answer that applies to a specific business, industry, business process. But it may look like “service oriented organizations“, social routines,articulating structured and unstructured work activities, rethinking quality

Taht’s only the starting point of a deeper investigation that has to be conducted within a given organization. Anyway, conclusions are the same than those I made about the ROI of enterprise 2.0.

- technology has no value by itslelf

- technology should allow to to things that couldn’t be done before

- rules were set to accomote the limits of previous technogies. The new technology has no value is old rules are not replaced with new ones adapted to the new potential that can now be harnessed.

In one sentence : rules have been set to accomodate constraints. If any technology removes constraints, rules have to be changed or the technology will be useless.

To end, when organization wonder “how to think” their social network or any social media project, they should wonder what rules have to be removed and what should replace them. Designing such projects without thinking a new way of working is removing all the value of the project from its beginning. It’s also the evidence that, to convince an IT dept,  a value co-construction process has to be implemented with business people because it’s simply not their role to care about how business is done.

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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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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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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