CIO Connect Hong Kong

Harnessing Change From Within the OrganisationWhy social media is at its most transformative inside the organisation

Leon Benjamin

A practical guide for CIOs

Leon Benjamin, January 2010

What’s the story?

> Social media actually works• Landscape, news from the front

> Why change comes from within• Social media is at its most transformative ‘inside’ the company

> Command & control organisation is stifling employee productivity• The implications of the shift to network based, peer-to-peer models of production

> Open Source out-performs command and control• Case studies

• The profound changes in the nature of work> The shift to ‘people on demand’ models of labour

• Variable labour costs> Managing people at a distance

> How IT should adapt• Practical guide

> Building a business case• Structured Visual Thinking• Valuating intangibles – relationship capital/guanxi

• Leadership • Self-organising teams, communities of practice

> Talent management• Finding your ‘SuperConnectors’• Getting ready for Gen Y

> Summary & Discussion


200,000,000 blogs

1.5 million residents

“The workers should

appropriate the means of production”

>100,000,000 videos(65,000/day)

www.ebay.com 21 Nov 200614,463,346 auctions

Almost 4,000,000 articles(10 languages)

300,000,000 profiles

Social Media Works

2009: "Twitter" is the world’s most popular English word


Social Media Works

Lenovo saw 20% reductions in call centre activity as customers go to a community (Social Media) website

Intuit introduced “Live Community” into their Turbo Tax products 2 years ago – Unit sales up +30% each year

Blendtec increased sales by 400% with “Will It Blend” YouTube videos

Dell sold $3,000,000 of computers on Twitter

300,000 businesses have a presence on Facebook

Software company Genius.com reports 24% of social media leads convert to sales

Facebook bragged recently that Farmville, a farming simulation game hosted on their site, is now more popular than Twitter, with over 26 million daily users and in excess of 69 million monthly users to its name


Social Media Works


Mornflake Video Competition

> Make a video about your values

• £15k first prize• 10 week campaign

> Facebook/Uvizz• Innovative use of video

technology> Groups, reward

structure• 52 uVizz video

submissions• 11,000 unique views• 20,000 total views• 30-90sec clips• 5 TV quality commercials

> Value = £250k


The Big Shift – Network Economy


What’s that coming over the hill?


The Big Shift


The Biggest Story of the 21st Century?

> The increasing unsuitability of command and control organisation

• Massive advances in technology• Prosperity to millions

> But at what cost to humanity, equality, society and the environment?

> Network organisation as the model of choice• There is a spectre haunting the world. The spectre of peer-

to-peer> Open source production> Collaborative capitalism *not* managerial capitalism

• The future is about less – doing better with less

> Web 2.0> Is about “architectures of participation”> Hanging out where your customers, suppliers, partners,

future talent are


What do these need to survive?

> Orders> Order > Stability> Continuity> Rules> Fear> Withholding

Information> Measurement> Incentives> Competition


The Cost of Command & Control

> Modern Ways Open India’s Doors to Diabetes• Got the cash but it comes with ‘issues’

> Western diet/lifestyle• 35m type 2 diabetics. 75m by 2030

> Work Rage• France Telecom’s suicide rate

> 21 since Feb 2008• One more last week despite ‘interventions’

• 2.6m people in Britain on incapacity benefits > Over 60% there courtesy of workplace stress

> Inequality• USA 1950, CEO earns on average 40 X lowest paid worker• In 2009, CEO earns on average 4,000 X lowest paid worker

> Frequently as high as 200,000 X • 47m Americans without health insurance• In the UK poverty is almost at pre-war levels

> Climate Change• The economy is a wholly owned subsidiary of the environment

> The Story of Stuff, An Inconvenient Truth, etc, etc

> The West: Signs of cracking?• US infant mortality, UK & US drop to 17th & 19th (out of 19) on preventable deaths• 30m Americans on ‘low food security’

> PWC Lotus Notes Experience• Collaboration at partner level only


The Cost of Command & Control


What do these need to survive?

• Everyone is a leader

• Everyone sensing, responding,

• Transparency• Trust• Peers• Agile• Adaptable• Self-organising


The Value of Peer-to-Peer Production

> Open Source Software• Google, Facebook, Yahoo, Amazon, eBay could not exist without Open Source

technology• Linux & Coase’s Penguin

> Yochai Benkler on The Wealth of Networks

> P2P lending• Grameen bank, Kiva, Zopa...many others

> Prosperity without growth• Steady state economies• Fractional work

> Creative commons• The next BladeRunner film

> Crowdsourcing• Crowdsourcing is solving some of the world's most intractable problems

> “The future of a company depends less on the nature of its issues, and more on its capacity to invent social structures able to solve them”. J FNoubel

• NASA Clickworkers• IBM

> Global Jams> Ideal Lists

• GE, Dell, US Fed


The Value of Peer-to-Peer Production

> Open Source Software• Google, Facebook, Yahoo, Amazon, eBay could not exist without

Open Source technology• Linux & Coase’s Penguin

> Yochai Benkler on The Wealth of Networks

> P2P lending• Grameen bank, Kiva, Zopa...many others

> Prosperity without growth• Steady state economies• Fractional work

> Creative commons• NASA Clickworkers• The next BladeRunner film

> Crowdsourcing• Crowdsourcing is solving some of the world's most intractable

problems> “The future of a company depends less on the nature of its

issues, and more on its capacity to invent social structures able to solve them”. J FNoubel


A Perfect Labour Storm?

> Provenance• Recent US research (cf Prof Alan Binder) estimates 30-40 million ‘high end’ white

collar jobs could be lost within the next generation> On that basis the comparable number in the UK could be as much as eight million

• Estimates of 60 million PhD students in Asia by 2015> In 2007 Indian IT services company receives 4m job applications in one year

• 31% of UK workforce retiring in the next 5 years> In the US one-fifth of the country's large, established companies will lose 40

percent or more of their top level talent in the next five years• Unretirement trends & ‘grey ceilings’

> The impact of the credit crisis on pension values

> In Japan, 30% of the adult work force is made up of temporary workers

• If current government policy prevails only 1 in 2 (yes, one in two) people will be employed in Japan in the year 2050

> Temporary work on the rise• Short-term work contracts have increased as a proportion of total employment;

> From 12.7 to 18.3 percent in the Netherlands, > 8.5 to 14 percent in Italy> 11 to 12.3 percent OECD-wide over the past decade> UK currently 25%

> Fractional Work• An Opportunity. Not a threat.


Sources of Fractional Work

100,000 instant access to 100,000 rated and tested professionals who offer technical, marketing and business expertiseRevenues of $200m pa

7,500 distributed home-based agents fastest-growing company (Deloitte & Touche Fast 500)Summer 2009 announced the creation of 500 posts in NY & 100 in Wyoming(Estimated) that more

than 1 million people in Canada and the US make at least part of their living buying and selling on Ebay


Sources of Fractional Work


Platforms


Where to start?

> Devise a strategy• It’s a journey, not an event

> Find/hire Community Managers• Sole purpose is to achieve the same levels of productivity being

achieved by ‘open source’, peer-to-peer production models• Create and lead networks

> Communities of practice

> Adopt different tools & methodologies• Projects/programmes

> Bioteams> ROWE (Best Buy)> Agile development

• The intranet as a conversation platform> Email is important?

• More private messages sent on social networks than email (as of 2008)

> Read The Cluetrain Manifesto• Published in 2000


Creativity Matters


Change comes from within

In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new way

Companies that assume online markets are the same markets that used to watch their ads on television are kidding themselves

To speak with a human voice, companies must share the concerns of their communities.But first, they must belong to a community.

Intranets naturally tend to route around boredom. The best are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation.

We want you to take 50 million of us as seriously as you take one reporter from The Wall Street Journal


Strategy Development

• Group Partners• Structured

Visual Thinking


Strategy Development


Room for discussion?

> Objects in the mirror are closer than they appear......

CIO Connect Hong Kong

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