Friday, 2 October 2009

At MLab with the Undercover Boss

 

   Earlier this year, Channel 4 broadcast two documentaries / reality TV programmes featuring senior execs, suitably disguised, spending time with members of their workforce in order to better understand the situation on the ground.

I saw both shows and was impressed with the openness, integrity and attitude of both Andy Edge from Park Resorts and Stephen Martin from Clugston Group.

But broader opinions were divided. Kris Dunn at the HR Capitalist was one of several bloggers questioning the efficacy of, and particularly the environment that had enabled, this approach.

“Could your CEO go undercover to figure out what was going on within the front lines of your company? I've got a couple of reactions to that.  First, if they could do that, the fact that the visibility of your CEO is that low might be part of the problem.  Notice I said "might", because there are multiple ways you could spin that....

So, here's the point when it comes to the CEO going undercover.  Not only did Martin go undercover, but he's going to make a TV show about it.  That raises the ante in the minds of employees.  It's one thing to go undercover, but now you're making a TV show about it.  So work with me here: in the eyes of the employee - you came undercover, brought a film crew under false pretenses, then documented the stuff that was wrong.”

 

Kris’ post was actually made before the show, and I thought I’d wait until I’d watched the programme to respond to it. Of course, I then forgot to do so. However, I’ve just sat through a presentation made by Martin at MLab - Gary Hamel and Julian Birkinshaw’s Management 2.0 think tank. So here goes.

 

Taking a decentric view

Some background first of all (the following section provided my summary of Julian Birkinshaw’s presentation):

 

In their meeting in Half Moon Bay last year, Birkinshaw and Gary Hamel asked their band of revolutionaries to score the series of challenges they had developed (and which then led onto Gary Hamel’s Moon Shots) in two ways:

  • How important is this? (and most people scored the challenge between 8 and 9 out of 10)
  • How much progress have you made (and people scored it between 2 and 3).

 

The challenges for which there were the greatest difference between importance and progress were:

  • Depoliticise decision making
  • Reduce fear and increase trust
  • Retrain managerial minds
  • Dramatically reduce the pull of the past
  • Expand and exploit diversity.

 

They had over 1000 qualitative comments explaining the problems in meeting these challenges and in reviewing and coding these, they identified the following main barriers:

  • Limited bandwidth: not enough time and too few resources -19% of comments
  • Old and orthodox thinking- 15%
  • Disincentives to act – fear of change, executive self interest -14%.

 

What these barriers make clear is that management is the problem and the solution.

One of the reasons for this is that in general, we have little insight into the feelings and views of the people we are managing (fear, confusion, disinterest and distrust all get in the way).

So how do we overcome this lack of insight?

Birkinshaw suggested that we do this by taking a decentric view of the world – trying to understand how management is being perceived from the employee’s POV.

(Evidence for this lack of insight is provided by the fact(?) that the only management books which have been written from the employees’ perspective are ‘Dilbert’ and ‘Who moved my cheese?’!)

This is where Stephen Martin steps in.

 

The case for going undercover

Martin explained that when he was first approached to do a reality TV show he said no, but the opportunity to gain an understanding of his workforce was just too great.  Normally he feels as if he is in an ivory tower – everything gets filtered through levels of management. He needed to understand how the business was going from employees perspective.

One example Martin gave us was a pay cut that Clugston needed to make recently.  HR had tried to explain this by sending employees a letter!  The business hadn’t understood how this action would be or had been interpreted by its workforce.

 

So, was this a good idea or not?

Both Martin and Edge, and their businesses, clearly gained from their experience.  Martin identified some previously unknown talent, and made some significant changes, for example around their apprenticeship programme.  Edge, if anything, experienced even deeper revelations, starting the programme thinking that staff simply needed a pay rise and finishing it with a deeper appreciation of the other things that Park Resorts could be to engage and recognise its staff.

But does this justify their deception?

In an ideal world. certainly not.  But many businesses do many worse things with their staff.  If going under cover can help develop a better / decentric perspective on a workforce, and reduce the other damaging things they do, then I’d suggest this may be a worthwhile trade-off.

Of course, the aim must be to go beyond this.  Asda is a good example.  Their former HR Director, David Smith, who also presented at the event, explained that he always used to spend one day a week talking and listening to his staff.

It needs a level of trust to be able to do this.  But I think it shows that there are even better opportunities than going undercover.

Others include:

  • Develop a culture focusing on role vs grade so that people get used to communicating openly
  • Create a shadow Board
  • Find opportunities for reverse mentoring (eg on the use of social media) to encourage two-way relationships
  • Encourage un-moderated social networking within the organisation.

 

What other ideas would you add to this list?

 

See my other post on the MLab Engagement event: http://moon-shots.ning.com/forum/topics/m-lab-the-art-of-engagement

 

And posts on the previous MLab Management 2.0 event:

 

 

 

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  • Thursday, 1 October 2009

    Don’t get made sick by the social

     

    775px-Ambulance-interior I’m looking forward to joining Bertrand Duperrin for a pre-Enterprise 2.0 summit (ie the European conference) video call later on today to discuss the impact of national specificities on enterprise 2.0 adoption.

    One of the things Duperrin is going to be discussing is that “the word ‘social’ makes execs feel sick”.  This reaction is something I’ve noticed quite a few other comments about recently.

    In his Enterprise 2.0 book, Andrew McCafee explains why he rarely if ever uses the word social when discussing Enterprise 2.0:

    “The adjective social is often applied to the technologies discussed in this book. This label is accurate, but unfortunate. When some managers hear talk of social technologies, they immediately think of technologies that facilitate activities like happy hour, fantasy sports league drafts, and office gossip. They hear “social,” in short, and think it means not work-related, or time wasting, or productivity-draining.”

     

    And commenting on this in Stowe Boyd's post on the Social Business, Tammy Erickson notes:

    “‘Social’ is perhaps accurate, but it is also an unfortunate choice of word for the technology and certainly for the enterprise. In the business world, “social” just doesn’t resonate — and whether we like it or not, it connotes a level of frivolousness that doesn’t encourage business people to grapple with the serious challenges ahead.”

     

    Yes, but.

    I agree with Bertrand’s, Andrew’s and Tammy’s concerns, and I’ve experienced similar reactions myself.  I’ve also posted on Cisco’s preference for business (rather than social) networks.

    It’s often useful to avoid the ‘s’ word.  And with my clients, I often do so myself.

    So we introduce social applications below the radar.  And we pretend that the social business is just the same as what’s been going on before.  And that’s fine.

    Except that it isn’t (the same as before)!  And organisations aren’t going to get the full benefits from social media, and they’re certainly not going to become social businesses or gain Social Advantage, unless they’re comfortable with the Social.

    We need to help our organisations understand.  Business is personal.  Business is social.  Get used to it!

     

     

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  • Wednesday, 30 September 2009

    Social Media in Business conference

     

    SMIB Conversations Matter   I’ll be presenting on ‘Using Social Media for Competitive Advantage’ at the Social Media in Business conference in London on Friday 23rd October:

     

    “The conference examines how social media platforms such as Facebook, YouTube, Twitter, are having a major impact on business practices and culture. How can these tools be utilised, how can you employ strategies within your company to increase profitability, sustain reputation and empower your employees to be brand ambassadors. Indeed should you employ internal social networks within your own organisation as a means of facilitating a sharing community amongst your employees, or should you use public open platforms?

    These tools can be highly disruptive to any company and are changing the fabric of communications through PR and marketing, you can no longer sit back and watch this unfold, you need strategies in place, you need to know what to say, how to say it, and when to say it.

    Conferences of this type ordinarily have a price tag of x4 or x5 the ticket price!

    We are thankful to our sponsors who enable us to bring this conference to you at an affordable figure.

    Register now and join the smart thinkers, stay ahead of the game!”

     

    Other speakers at the conference include:

     

    The cost of attendance is just £161 and readers of this blog can benefit from an additional 15% discount if they quote the following code when booking: 15SBIZ.

     

     

     

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  • Tuesday, 29 September 2009

    My definition of Social Business

     

       My definition of the Social Business / Competitive Society is:

    An organisation than invests in the development of social capital, ie the value of the connections, relationships and conversations taking place between people in an organisation, or working with the organisation. This value can be created and developed by effective leadership (communityship), HR and management practices, internal communication, OD interventions, web 2.0 tools etc.  The value provides the opportunity to transform organisations, ie not just helping to meet existing business objectives but to set new or more stretching business goals.

     

     

    Picture credit: Booksworm

     

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  • Monday, 28 September 2009

    My further thoughts on the Social Business

     

    Employees    Wow, there’s been a lot of debate on Enterprise 2.0 and the Social Business recently (I’m not going to do a list – do a search!).

    And I thought I’d follow-up my post on the 2.0 meme with my perspectives on the Social Business.

    Of course, this is something that I’ve covered extensively before.  This blog started off its life as ‘The New Social Business’ on 24 November 2007, and I’ve shared my likes and dislikes about the term several times since then, eg:

     

    Peoples’ concerns about E2.0 seem to reflect my own:

    • That it’s too focused on technology (McAfee’s new definition that “Enterprise 2.0 is the use of emergent social software platforms by organisations in pursuits of their goals” doesn’t exactly help!).
    • That it’s over-use has led to it becoming distracting jargon.

     

    The term ‘social business’ is therefore preferred by many people for reasons which are also similar to mine (ie concerning the need for business to become more social, if not directly referencing social capital).

    Stowe Boyd sums it up well on the Enterprise 2.0 blog:

    “I have come to believe that this is the place where companies need to focus their attention: socializing the business, not adoption of Web 2.0…

    We need to shift to a much more agile and adaptive way of thinking about social and collective action within businesses, and managing in a very different world than we were even a few years ago, back when Enterprise 2.0 might have seemed like a great term. Nowadays that term may be holding us back and confusing folks that haven’t been as close to the discussion as we have.”

     

    Of course, there are some concerns about the term ‘social business’ too.  Once again, these support my own concerns, and relate to the reasons why I changed the name and address of this blog.

    One additional concern however is that ‘social business’ is owned by Dachis Group (as well as Altimeter Group and other upstart consulting firms).  One comment on The Obvious says:

    “‘Social business design’ is a term Dachis Group uses to distinguish itself in this market  Therefore, I believe the term is not neutral and should not replace the more generic phrase Enterprise 2.0.”

     

    Well Dachis and Altimeter were both only started up in 2008 so I was using the term ‘social business’ well before them.  And I hereby give my permission to anyone who wants to use it to do so!

    However, I’m still not convinced it’s the right term.

    Suggestions on other blogs include ‘integrated business’ and ‘peak hierarchy’.  But I still like ‘Competitive Society’.  What about you?

     

     

     

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  • Monday, 21 September 2009

    Netflix – Enterprise 1.0 or 2.0?

     

     

    Netflix’s culture of freedom and responsibility has been addressed on quite a few blogs, including Strategic HCM, and on other social networking sites, including the Moon Shots ning.

    But it’s comments on the company’s open culture and predisposition to the use of social media – and particularly whether this makes it an example of Enterprise 2.0, that I want to address here (for examples of these comments see Fast Forward and Bertrand Duperrin’s Notepad).

    And I just don’t see it.  A great company – absolutely.  Enterprise 2.0 – no.

     

    To me, this is an example of the ever growing and largely unhelpful use of the ‘2.0’ tag that I’ve just posted on.

    Enterprise 2.0 isn’t just about using web 2.0, but it’s not just about anything new, innovative and exciting either.  It’s about creating an environment where the value of social capital: the connections, relationships and conversations in a business, is taken seriously.  And I don’t see any of this at Netflix. So:

    “Few organizations are more able to access the power of the collective than Netflix”? – I just don’t see it, sorry.

     

    The presentation suggests the company does work as a team – but stresses that this is a pro-sports team, not a kid’s recreation team.  And definitely not a family.  To me, even though they want to avoid brilliant jerks (recognising that the cost to teamwork being too high), it doesn’t even sound like a real pro-sports team. This impression is strengthened by the description of their ‘loosely coupled’ approach. It sounds like a group of highly talented individuals (“stars in every position”). Perhaps the business equivalent of the Madrid Galacticos?

    There’s also the issue about the impact of not investing in recruiting and therefore having to fire people, that I touch on at Strategic HCM.

    The presentation notes that high performance people and effective teamwork can be in tension as these people have strong opinions. This supports Boris Groysberg’s conclusions that a focus on recruiting stars can be bad for business.  But I’m not at all  sure that Netflix has has revolved this dilemma sufficiently.

     

     

     

     

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  • Sunday, 20 September 2009

    My thoughts on 2.0

     

    Training Wreck   I recently commented on a couple of posts on Dan Pontefract’s Training Wreck where he provides his perspectives on the 2.0 meme (web 2.0, enterprise 2.0, learning 2.0, Claire 2.0 etc…).

    And I thought I would post here to expand on my response:

    “2.0 can mean a couple of things. One is that it simply refers to any significant, qualitative vs quantitative shift over the ways things were done before (otherwise we’d be talking about 1.1 not 2.0). But then work 2.0, culture 2.0 could mean anything. So I don’t think that’s a useful route to go.

    But I’d suggest that the other way of looking at this, and the only way I can see to bring these terms closer together is that they’re all about ’social’. Web 2.0 = social technology, enterprise 2.0 = a more social way of organising etc.

    In fact, as we’ve discussed on your previous post, HR in a 2.0 World: Leading vs. Following (http://www.danpontefract.com/?p=117), they’re all about generating social capital.

    Just a personal view of course!”

     

    I’ve previously provided my own view on a few of the 2.0 components listed by Dan:

     

    However, I do tend to agree with Dan that ‘2.0’ is used a bit too much these days, particularly when there is little cohesion between these different applications.

    Take Dan’s Enterprise 2.0 and Work 2.0:

    • Enterprise 2.0: “The use of emergent social software platforms within companies”
    • Work 2.0: “The shift from a 9-5 workday to a flexible workweek inclusive of work locations.”

     

    What’s the similarity between these, other than the 2.0 variants of each terms are somehow more modern?  (This isn’t a criticism of Dan’s analysis, simply of the framework he’s working in).

    My other criticism of this approach is that it leads us to be overly utopian.  Eg:

    • Culture 2.0: “The shift from white ivory tower hierarchical / manage by fear structure to one that is wirearchical, heterarchical, flat, connected and community-driven.”
    • People 2.0: “Employees will seek out an employer that provides an experience, a second family, a place to feel valued, the new ‘employee’ will not be institutionalised.

     

    I believe we can make a step-change to a qualitatively different way of managing organisations without requiring businesses to become social paradises.

    My suggestion, that I made to Dan, and I’ve made previously on this blog too, is that resolving this tension requires us to link a single factor to all 2.0 components.  This will allow us to define all components upon this single common factor, rather than having to create lists of attributes for each one.

    I then suggest that this single factor is a more social approach, based upon connections and relationships.  As evidence of this conclusion, I point towards the fact the web 2.0 (the originating component) is also called the social web ( / social media / social technology etc).

    But that’s a bit vague, so the further refinement that I make to this, is that each 2.0 component focuses on creating social capital.  So web 2.0 is technology that enables the development of social capital, enterprise 2.0 is an organisation than invests in the development of social capital, HR 2.0 is the management of people in a way that leads to the development of social capital, etc.

    This view may not (yet) have wide support, but it does have the considerable benefit of consistency!

     

     

     

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  • Monday, 14 September 2009

    Directors pay and Social Advantage

     

        The Guardian has published an interesting survey of FTSE 100 Directors pay.

    It’s interesting firstly because of the ongoing debate about executive reward at the moment.

    But what I wanted to focus on here, particularly given my recent post on Whole Foods, is the differential in pay between CEOs and average employees.

    In general, the differential is quite a bit less that that described by John Mackey in his presentation on Conscious Capitalism – I presume because we’re looking at the UK rather than the US where the differential is presumably higher?  It’s still a lot higher than Mackey’s recommendation of 19x though.

    And the highest differential – for Bart Becht, CEO at Reckitt Benckiser - is 1374! (ie Becht gets paid 1374 times the amount (£37m) paid to Reckitt Beckiser’s average employee - £27k).

    This clearly isn’t a great basis for effective up and down collaboration.

     

    Mind you, Cisco CEO, John Chambers’, recent $2m under-performance bonus doesn’t seem to be affecting the way it’s becoming more collaborative.

    I guess this is only one part of the equation…

     

     

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  • Tuesday, 8 September 2009

    Management models and Social Advantage

     

        In the latest issue of the MLab’s Labnotes, Julian Birkinshaw suggests that organisations need to think as much about their management models (the choices firms make about what happens inside their organisations) as they do their business models (choices about their sources of revenue, their cost structure etc).

    These choices include:

    • Choices about the nature of the objectives the firm pursues (ranging from alignment to obliquity)
    • Choices about how individuals are motivated to pursue these objectives (extrinsic to intrinsic)
    • Choices about how activities are co-ordinated in the firm (bureaucracy to emergence)
    • Choices about how decisions are made in the firm (hierarchy or collective wisdom).

     

    I think this is a useful, new input to management thinking.

    However, I’m not sure about the four dimensions of Birkinshaw’s framework (the four choices above).  Where does the Social Advantage approach fit into it this for example?

     

    Social Advantage as collective wisdom

    Although it doesn’t fit the framework that neatly, I’d have to say that Social Advantage fits best with the last two choices: managing across (emergence vs bureaucracy) and especially managing down (collective wisdom vs hierarchy).  But then these are ‘means’, and  think Social Advantage is very much about ‘ends’.

    And I think some other dimensions are probably at least as important to Social Advantage as those presented in the model.  For example, what the organisation focuses on – outcomes or business impacts, And how importantly the organisation sees people working together in teams, or just sharing information between themselves.

     

    Collective wisdom AND hierarchy

    Also, although Social Advantage is probably best supported by a flat structure, I don’t see that it requires the end of hierarchy.  To me, the dimensions of the model are probably paradoxes (this and that) rather than polar opposites (this or that).

    Anyway, polar opposites aren’t really in the spirit of the Moon Shots – particularly M20:

    “ Better optimise trade-offs.  Management systems tend to force either-or choices.  What’s needed are hybrid systems that subtly optimise key trade-offs.”

     

    So, I don’t feel very positive about the framework, but I suppose if it encourages organisational leaders to think about their management model, and perhaps what dimensions will be important to them, then I guess it will do its job.

    As Birkinshaw himself notes,

    “There is no one best management model…  Rather, there are choices to be made, and the appropriate choice depends on a host of circumstantial and competitive factors.  Firms who generate competitive advantage out of their management model are the ones that make conscious and distinctive choices about what principles to follow.”

     

    Also see:

     

     

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  • Tuesday, 1 September 2009

    Social Advantage after the downturn

     

       This is why I think Social Advantage is particularly important at the moment:

    “A new survey from The Workforce Institute at Kronos Incorporated suggests that the layoffs experienced by many organizations in the recent economic downturn have had a more adverse impact on productivity than employers may have thought.  The ‘Productivity Drain’ survey finds that 40 percent of employees at organizations affected by layoffs would classify productivity as having been negatively impacted. Furthermore, of those 40 percent, two-thirds of them state that morale is suffering and that employees are less motivated than before. This is in large part due to the level of work that employees are dealing with. Sixty-four percent of respondents felt that there was too much work and not enough employees to do it, and with employees frustrated with the additional workload, half of those surveyed expressed dissatisfaction with their employers’ effort to maintain morale. Perhaps more concerning is that 36 percent of respondents believe that when the economy picks up, as an organization, they would not be prepared to meet the increased demand.”

     

    How do you deal with more work with less people? – manage the relationships between the people, as well as the people themselves.

     

    For more information on the survey, see The Workforce Institute (at Kronos® Incorporated).

    For more information on Social Advantage, see:

     

     

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