Organisational Principles for Digital Collaboration

Driving Business Value

Enterprise 2.0 SUMMIT | 26 November 2014

David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter

Organisational Principles for Digital Collaboration

Organisational Principles for Digital Collaboration

Organisational Principles for Digital Collaboration

Agenda

• Business is changing: – the current landscape

– the Digital Enterprise Wave

• Why organisational change?

• Using Digital & Social tools - How do you create value?

• How do you establish your Digital Thinking?

• What do you need beyond Digital capability?

• Why bother?

• Who should be involved?

• What are the key recommendations?

Hang on - can you explain this new digital landscape?

"Move bits, not atoms."

January 1995

Your business model is under threat!

The Digital Enterprise Wave

ride it

or go under!

Infrastructure

Connectivity

Internet

WiFi

3G & 4G

Human Factors

Entrepreneurship

Crowdsourcing

Millennials

Economic

Outsourcing

Offshoring

Low cost

The Digital Enterprise Wave

The Big Shift

Cloud Social Mobile

The Digital Enterprise Wave

Emerging Technologies

Internet of Things

Big Data & Analytics

3D Printing

Artificial Intelligence

The Digital Enterprise Wave

“Business as Usual” Thinking

Point Social Media Solutions

Siloed Communities

Lack of Integration

Legacy Systems of Record

Business as Usual

The Digital Enterprise Wave

We need “Digital” Thinking

Digital and Social inside and out

Business Model Innovation

Systems of Engagement

Design Thinking

Strategy

Skills

Staff

“Shared Values”

Structure

Systems

Style

Hard Systems

Soft Systems

Integrates “hard” and “soft” business systems in a structured way

“technology neutral”

Includes employee engagement

Proven approach

Especially useful for lessons in managing major change

McKinsey 7 “S” Model

The Digital Enterprise Wave

Why organisational change?

• The evidence is mounting – to make digital truly work change is necessary

• The key is change of Mind-set and Culture

• I worry about some current thinking on organisational structure….

• We need “Evolution not Revolution!”

• Fairness to each other and everyone with whom we come in

contact

• Freedom to encourage, help, and allow other associates to grow

in knowledge, skill, and scope of responsibility

• The ability to make one's own commitments and keep them

• Consultation with other associates before undertaking actions that

could impact the reputation of the company

A Team-Based, Flat Lattice Organization

checks and balances to ensure accountability, transparency and honesty

taking responsibility individually and collectively

rather than relying on traditional hierarchical status

Hierarchy - Wirearchy

http://wirearchy.com/what-is-wirearchy/

Organisational Change

• It’s not about changing the org chart – many structures will work

• It is about mind-set and values:

– accountability, transparency and honesty

– checks and balances

– fairness

– freedom to encourage, help, collaborate

– taking responsibility individually and collectively

– empowering employees

Total Value Created

IncreaseRevenue

Average Sale £

Sales Volume

Reduce Costs

Churn

Operating Cost

• Deeper understanding of customer needs• Conversation with customers increases

attachment to business

• Increased marketing penetration at lower cost

• Faster lead generation & customer onboarding

• Faster understanding of product and customer problems

• Pro-active customer retention

• Fast information movement and higher levels of collaboration drives efficiency

• Higher employee engagement drives effectiveness

Close link

Digital Business Value CreationDepending on the business, the impact of digital transformation will vary – but will drive significant value

Bottom line = value creation

Five distinct social collaboration ambitions

Strategy

Skills

Staff

“Shared Values”

Structure

Systems

Style

Hard Systems

Soft Systems

Integrates “hard” and “soft” business systems in a structured way

“technology neutral”

Includes employee engagement

Proven approach

Especially useful for lessons in managing major change

Establishing your Digital Thinking

Strategy

© Simon Sinek - https://www.startwithwhy.com/

Structure

• Information flow must be fast and pervasive

• You must streamline decision making

• Faster time to market

• New teams, cross functional teams

• One of the largest bookmakers in the UK

• 80 year old company undergoing a major culture shift

• Adopting a lean start up model

• Product teams include people who used to be in marketing, IT, product management

• 4-6 week new product cycles

• Touch the customer within weeks – used to be 2 years

Systems

• Fast reaction time to important information

• Old processes & practices must be replaced (and that’s not easy)

• New technology, but easy to deploy and use

• Digital and social at the heart of the business process and creating value

Staff

• Must be on board

• Supported by management at all levels

Gallup State of the Global Workplace: Worldwide, actively disengaged employees

outnumber engaged employees by nearly 2-1

Skills

• Understand the new policies

• Know what’s expected of them

• Know how to operate the new systems

Style

Digital Taylorism Open, Good for All

Shared Values

• Go back and find your “why”

• Ask “what’s in it for me?” at all levels

• Focus on benefits for all

• Look beyond shareholder value

Leading Digital

Four Level of Digital Mastery

Digital Mastery by Industry

What is your level of Digital Mastery?

- generate 9% more revenue- create 26% more profit- 12% higher market valuation

Who should be involved?

• Top Management, the C-Suite - essential

• Engaged employees – essential

• IT/the CIO – connect to the legacy

• Learning/proving by doing - essential

• Good outcomes for all - essential

with

• 76,000 employees now collaborating• Sharing knowledge and expertise through 7,500 purpose built

communities• 30% active users posting 10 collaborative notes per week/per

user• Better knowledge sharing leads to faster response times and

more wins• Reducing response time in some cases from 2 days to 45

minutes• Operational efficiency gains by reducing internal e-mail overload

by an average of 60%• Saving an average of 2 hours a day per employee

Atos "Journey to Collaboration" / Zero emailTM program

Winners Of The 2014 Groundswell Awards (Business-To-Employee Division)

Key recommendations?

Key recommendations?

• Revisit your business model

• Revisit your value proposition

• Pilot, but in an area where there is measurable business benefit

• Learn and adapt

• Roll out, bringing everyone with you

• Ensure everyone shares the benefits

Referenceshttp://en.wikipedia.org/wiki/Nicholas_Negropontehttp://en.wikipedia.org/wiki/Being_Digitalhttp://www.capgemini.com/resources/transform-to-the--power-of-digital http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/http://postshift.com/author/lee/http://www.technologytransformation.com/High%20Perfomance%20Projects.htmhttp://www.bonkersworld.net/organizational-charts/http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svghttp://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-inspiring-as-the-games-it-makes/http://www.gore.com/en_xx/aboutus/culture/http://www.johnlewispartnership.co.uk/about/our-constitution.htmlhttp://wirearchy.com/what-is-wirearchy/http://blog.medallia.com/customer-experience/ceo-top-pyramid/http://www.ibm.com/smarterplanet/us/en/centerforappliedinsights/article/social_insights.htmlhttp://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all-culture-hackers/https://www.startwithwhy.com/http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspxhttp://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie=UTF8&qid=1416926793&sr=1-1&keywords=leading+digitalhttp://www.businessmodelgeneration.com/canvas/bmchttps://strategyzer.com/value-proposition-design

Not for reading – just for reference

David TerrarAgile Elephant | techUK | EuroCloud UK

p: +44 (0)1727 866309 m: +44 (0)7715 159423

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innovation | digital transformation | value creation | (r)evolution