Enterprise 2.0: part 3 – the gap between employee and corporation

The following article is also published through pharmaphorum and is the third in a series about Enterprise 2.0.

As with a lot of technological innovations, business is often behind adopting them compared to consumers.  This was the case with the telephone, with the adoption of email and today with new and social media. Now, when social computing is becoming mainstream, businesses are considering how to deal with this within their own organisation. The question therefore should not be if a company should adopt social computing (aka Enterprise 2.0), but more when.

As discussed in the previous episode of this series, many employees struggle in managing the enormous amount of information they have to process within their jobs. And the infrastructure that offers that information is not helping them in doing their jobs, on the contrary.

“Many employees struggle in managing the enormous amount

of information they have to process within their jobs”

Some facts:

Forty-two percent of our economy is based on ‘tacit interactions’, which means exchange of information and knowledge directly between knowledge-workers (source: McKinsey). Most of this information is in these people’s minds, and not recorded in a database. In other words, a lot of this information is not secured.

Twenty percent of their valuable time, knowledge workers are searching for information required to do their jobs. Indeed, searching, which does not imply that they always find what they need. Which makes sense, because part of that information is not available, as explained above.

Eighty-five of the current available IT infrastructures cannot be accessed by most knowledge-workers (source: Gartner). That means that if relevant information is available somewhere in the database, they do not have the permission to access it.

The gap between the adoption of new technology, in this case collaborative and social interactive media, between the corporate world and the consumer world has never been so apparent. Cloud computing, mobile, social media, we’re all familiar with it in our private lives. However, within our daily work, this is very often not the case. Cloud computing, for example, is by many organisations perceived a scary, insecure and non-compliant phenomenon.

This is what we call consumerization of technology. New (information) technology first emerges in the consumer market before it enters business organisations. And when it enters, it is in most cases received with scepticism and distrust. IT departments are frequently hesitant in adopting these new technologies, especially if it implies loss of control or, in other words, empowerment of the user. When I was still working in the pharma industry I was always surprised at the ‘glass-is-half-empty’ approach of IT, when proposing experimenting with new and social media. While I sincerely expected, maybe naive, that this technological revolution should ignite the passion of every IT-worker.

In fact we’ve reached a point of no return. More and more employees, especially the digital natives, expect free access to information, the ability to connect with co-workers andto share and exchange knowledge and experience, all online. As they are used in their personal lives with their friends and family. As long as the current IT infrastructures (i.e. the intranets and portals) don’t allow or facilitate this, they will take the initiative themselves to create that space. Already, employees ask their IT departments to give them access to their email and intranet through their personal mobile devices. Just because the company does not offer smartphones to all employees, but the sales force. These employees will get very frustrated if their request is not honoured. While the only reason for asking is helping them to do their job easier and better.

“Cloud computing, for example, is by many organisations

perceived a scary, insecure and non-compliant phenomenon.”

Talking about the employee, what is motivating him (or her)? What really drives him to do his upmost to fulfil his tasks? What makes him get up in the morning? Is that salary? Is that a large bonus if mission is accomplished? Or is it something else?

Since the middle of last century behavioural scientists have investigated human motivation. Before that it was thought there were basically two main motivators: biological motivators(hunger, thirst, sleep, sex) and extrinsic motivators (reward and punishment). An interesting experiment by Harry Harlow and Edward Deci with monkeys demonstrated there is a third motivator: intrinsic motivation through joy, happiness and passion. This is the motivator for us humans for playing the piano, for photography and oldtimers. For developing software, which we are so proud of the we’re willing to give it away for free. We’re willing to spend hours of our free time and willing to spend significant amounts of money in these activities because of the satisfaction it gives us. Interesting enough, ever since the industrial revolution, businesses have only adopted extrinsic motivators, such as salary increases and bonuses and never really explored the possibilities of intrinsic motivators. While more than forty years of behavioural research has demonstrated that this is not the way to motivate people. Although the carrot-and-stick approach worked successfully in the 20th century, it has become obsolete in motivating people in the current changed environment. This brings us back to the conclusion we made in the previous episode. Create an environment where employees can excel and improve their skills, where they can choose the path to fulfil their tasks and goals as long as it also serves a higher purpose. Also known as as the three elements of true motivation: Autonomy, Mastery and Purpose (source: Daniel Pink – Drive, the surprising truth about what motivates us)

 “IT departments are frequently hesitant in adopting these new

technologies, especially if it implies loss of control or, in other

words, empowerment of the user.”

So now the urge is clear. Business organisations need to change, significantly. In the way they communicate with their employees, how they are motivated, in the way their workforce is empowered and in the way they are organised online. But where to start? That’s what I will discuss in the following episodes. First I want to ask you to take a look at your own organisation. How are you organised online? What functionalities does your intranet offer? Is it interactive and does it allow collaboration between co-workers. The figure below comes from the congress Intranet 2011, which was held in March recently Utrecht, The Netherlands. It represents the development of the intranet from a one-directional information source to a social operating system that contains all kinds of collaborative applications which drive internal and external work. Can you indicate where your company’s intranet is?

Enterprise 2.0: part 2 – the world around us has changed, forever.

The following article is published through pharmaphorum and is the second in a series about Enterprise 2.0.

The digital revolution has changed the world we live in. During the first wave of the revolution, back in the nineties, we gained access to an incredible amount of information. During the second wave, which started in the early 2000’s, we were able to add information ourselves –  our experiences, opinions, thoughts, comments, ratings and reviews about products and services. Today, the digital revolution has become mobile, where we hold the internet in the palm of our hand with smart-phones and iPads.

Many companies, especially B2C, jumped on the bandwagon of interactive communication, where they saw great opportunities for their marketing activities. But, as discussed in part one of this series, it’s more than just the additional marketing channel that makes the revolution. It has an impact on the way we are organised as a business,  and this goes as deep as our blueprint, our DNA and our identity. This revolution is cultural.

Looking more closely at the changes around us we can identify six trends. These trends reveal the need for companies to prepare themselves for a major change: to reorganise themselves from Enterprise 1.0 to Enterprise 2.0. Let’s take a closer look at these six trends.

“…it’s more than just the additional marketing channel that makes the revolution.”

1. Information overload

As a result of the digital revolution, the amount of information that we have to manage is increasing at an almost daily level. Information that frequently is difficult to find on our intranets. In addition, managing our email is a continuous struggle for many. Who doesn’t have a sort of love-hate relationship with their inbox? The amount of energy wasted within companies with data management is enormous. Although interactions costs (e.g. real life meetings) go down, the volume of interactions is headed towards infinity, leading to unproductive complexity, frustration within the workforce, increased bureaucracy and unmanageable communication (Fig 1, electronic survey McKinsey Quarterly 2005).


Fig 1: Struggle with communication complexity (based on survey McKinsey Quarterly, July 2005)

*80% of those reporting “communication unmanageable” admit having difficulty fulfilling their key responsibilities.

2. Limited access to interactive technologies 

At home, we are used to fast internet connections, enabling us to upload, download and consume video, connect to our friends and family through social networks and talk real-time with each other via Skype. Coming to work, many of us still experience something different: websites such as YouTube and Facebook are blocked as non-productive sites, Flash videos cannot be viewed as the flash player cannot be installed and if you’re lucky to access online video, then frequently bandwidth is the limiting factor of a smooth experience. And that’s not all, the hardware available to the average workforce (computers, mobile phones) are very often seen as costly devices pressing on the annual budgets, rather than devices that improve people’s performance. Back home, the workforce emits sighs of relief, setting themselves behind their brand new and beloved iMac.

3. Cloud computing

More and more services are offered through ‘the Cloud’, which means that databases, file services, email and applications are available through external online servers. No software is required to be installed on the user’s computer, other than a web-browser. Examples of Cloud applications are Hotmail, Google Docs and Salesforce.com. Advantages of cloud computing are that the  applications are accessible anywhere at anytime from any platform (desktop, laptop, smartphone) with the latest versions of the software available. Moving from the comfortable, ‘behind the firewall’ applications to cloud services that are out in the ‘big bad world’ is a tough choice to make for many organisations. Again, the loss of control is bothersome to them, while it may serve the employee’s productivity and in the end can lead to significant cost savings on license fees and service contracts.

“As a result of the digital revolution, the amount of information that we have to manage is increasing at an almost daily level.”

4. Generation gap 

As a result of the digital revolution we can divide the current population into two generations: digital immigrants and digital natives. A digital native is someone who is born after the introduction of digital technologies, let’s say around 1980. A digital immigrant is someone born before the introduction of digital technology. The difference between these two groups is the way they adopt these technologies and integrate them in their lives. With the speed of technological developments increasing, more and more digital immigrants struggle keeping up, leading to conflicts between managers and supervisors (DI’s) and the younger workforce (DN’s).

5. Social, social, social 

Social networking has surpassed email both in number of users and in time spent (Morgan Stanley, Internet Trends, June 2010). This means that people prefer social interaction through online networks over the rather one-dimensional and more impersonal email. But a Facebook group or a Twitter account is no guarantee for successful participation in the communities of your customers. To achieve that you need to do more. “You need to socialise”, according to Brian Solis, Principal at Futureworks and one of the prominent thought leaders in social media.“As a company or as a brand you need to participate in the conversations in such a manner that you’re not only of added value, but that you also involve your customers in your marketing and service activities.” Because of that social media will have an enormous impact in the organisational structure of a company. “Any division within an organisation that is effected by outside influence is going to have to socialise”.  Eventually social media instruments will become as mainstream as email is today, but before that organisations will need to go through a process of cultural change.

6. The Network Society 

Modern society is in a process of becoming a network society. Through the internet we’re constantly connected and becoming less dependent on face to face communication. It’s as Jan van Dijk describes in his book The Network Society that the internet brings interpersonal, organisational and mass communication together. This means we’re moving from centrally and hierarchically organised companies (e.g. Sony, Microsoft, Shell) to true network organisations (e.g. Facebook, Google, Amazon). The main difference between the two extremes is that in the latter the user is more in control and wants to be involved and engaged. This is illustrated by the development in the music industry over the last decade. Music is booming, and artists and consumers have taken over control from big corporations.

These six trends are disruptive to any industry, including pharma. These trends scare CEO’s and management teams. Losing control over their employees and the way they work gives them nightmares. But is that justified? Can we allow ourselves to perform ‘ostrich politics’ by sticking our heads in the sand, hoping it will all pass in a few years? Or is now the time to pick up the challenge and start redesigning our organisations?

“…the volume of interactions is headed towards infinity, leading to unproductive complexity, frustration within the workforce, increasedbureaucracy and unmanageable communication”

Most companies still have an organisational structure designed for the 20th century: hierarchical, directive, silo-structured and sales-driven (aka Enterprise 1.0). Especially in our ‘knowledge-intensive companies’ we need to mobilize the minds of our workforce in such way that we offer them freedom to do their jobs, give them access to information, provide them with a network that enables them to connect with peers and the likeminded and stimulate collaboration and co-creation (aka Enterprise 2.0). Not only will such company create an environment that motivates people and retains talent, it also will lead to an increase in net income per employee.

So the challenge is the organisational redesign of our companies. Moving from Enterprise 1.0 to Enterprise 2.0. The key is the employee. Because, as with the music artist and the music lover, that’s where the power is. Create an environment where your employees can excel, where they feel empowered and acknowledged. Give them autonomy to reach (and surpass) their goals, allow them to master their skills and give purpose to what they do. With that you’ll give your workforce the drive to get up in the morning and go to work, motivated.

What do you think is key to establishing Enterprise 2.0?


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