Learnable Services, CRM, and Social Business Design

March 29, 2010

“Presenting a consistent face to customers improves their comfort and satisfaction.”

R “Ray Wang” and Jeremiah Owyang Social CRM: The New Rules of Relationship Management

Marketing, especially social media marketing, and learning, including organizational learning, are both essential components of a dialogue strategy for customer experience design and management. A dialogue strategy builds on the assumption that companies learn more from customers when customers learn from them, and doing so benefits both. I increasingly think it provides a basic framework to think about, and consider as part of your experience design strategy, when relating to customers. Thought leaders increasingly refer to the challenge as social business design.

Given the maturity and diffusion of social media, a dialogue strategy provides a framework to discuss communication as an ecosystem, whether addressing collaboration, innovation, segmentation, sales, customer service, or brands. The key to the process is understanding customers, attracting them, engaging them with sales in mindempowering them to solve your product and service problems, and learning from them to improve products and services, thereby strengthening your brand. It is not simply segmenting them, targeting them, driving them through interactions, and transacting with them through sales.

Over time, people buy things they need from you rather than someone else because they want what you offer, and because they feel an empathic connection, i.e. that you understand them. From my reading, Wim Rampen’s contention that we need to use segmentation the customer’s way gets to the heart of the point. The challenge of learning how to make an empathic connection increases to the extent that CRM (customer relationship management) aims to align customer engagement directly with business transactions.

Those looking for a direct, sustained connection between customer engagement and sales from Social CRM are expecting too much in my opinion. The key question is whether you know that Jane Smith who called for support tonight also chatted with one of your people earlier, or posted (or tweeted) something positive or negative about you on her blog, or posted something about your product/service to a how-to community forum. Knowing any of those things about Jane’s activities and experiences with your brand increases the potential for empathic connection between your people and Jane, meaning your understanding of what Jane needs from your products/services increases.

It would be nice if a monitoring platform could listen for you and, just automatically, determine how influential Jane Smith really is in the scheme of things. It might be nice to have a social media management system that just took care of everything, gauged the influence of anyone commenting about you online, ranked their value relative to your brand, and prioritized the level of response needed. However, in the near term, regardless of how much we want that panacea, your employees, or outsource partners, are going to need to engage with your customers as though their problems are your own

Nestle’ can speak to that issue recently. It is important to note that the Nestle’ example is not the first time a company’s supply chain management, rather than a product or service per se, came under organized criticism. Nike and Shell, among others, found their own supply chain relationships under fire over the past decade. Indeed, Shell’s early experiment in 1998 with a blog called Tell Shell came under such negative commentary from the public that the company shut it down. Nike, on the other hand, engaged the debate and incorporated the criticisms into its business model, I’ll leave it to you to decide which brand strategy makes the most sense for customer relationships.

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Using Social Network Analysis in Social Business Design

September 23, 2009

radical

My last post discussed the Open/Closed culture fallacy in social business design. I made the point that leaders of large corporations are typically unable to answer the key strategic questions posed by David Armano of the Dachis Group in a recent important post, Re-designing Your Business Culture. Among other questions, David asked:

Do we want real connections established between employees, customers, partners?
How can we reward those in our ecosystem who actively contribute?
Do we actually want to engage those who want to engage us? Can we?

As this post’s subject indicates, my interest here is to explain how social network analysis, applied to the ecosystems of organizations, helps apply social business design in a manner that avoids the fallacy of open/closed business cultures. We can’t know how open or closed a business culture is until we research, analyze, and understand both its formal and informal networks.

As I noted previously,

To paraphrase Valdis Krebs, a social network analyst, more connections are not necessarily betterValdis Krebs, and other social network analysts engaged in ONA (Rob Cross and Steve Borgatti, for example) contend that the most efficient and effective adaptation to emergent challenges lies in “the pattern of direct and indirect links” in the ecosystem. You can read a straightforward overview of ONA by Valdis.

This post continues David’s line of thinking by considering a combination of two of his strategic questions in light of the open/closed culture fallacy. I also take a stab at noting how to answer his last question.

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The Fallacy of Open/Closed Culture in Social Business Design

September 22, 2009

 Think about a closed business culture. Try to visualize what it looks like. What do you see? Does it look something like a pyramid?

Now, think about an open business culture. Try to visualize it. What image comes to mind? Does it look something like a spider web turned on its side?

 These two imaginings pose similar relationships between their parts. A three dimensional pyramid flattened out is about the same shape as a spider web. It is a matter of perspective as to whether one is more open or closed than the other. When connections are made across, rather than only between, the existing nodes in a network we can start to visualize informal relationships in a way that adds value to discussions of culture. It sounds simple, at least initially.

So, how do these observations relate to culture and social business design?

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Empathy and Collaboration in Social Business Design

August 27, 2009
dachis_eco

Source: David Armano "Social Business by Design"

My first corporate position carried the title Methods Analyst, working for a large billing center serving a telephone company. One of my main tasks in that role involved learning how other employees performed their work and documenting it. On each project I typically spent several hours observing people work (what some today call rapid ethnography or guerilla ethnography) and then did in-depth interviews of the people I observed. Usually, at the end of my observation, I took responsibility for doing the work for a brief time under their watchful eye. In some sense you could say my work required me to continuously cross train in other people’s work, analyze the process, and write it up in a technical document.  The main insight I took away from that experience was an appreciation for the importance played by empathy in effective collaboration.

First off, collaboration isn’t just about people sharing information to achieve common goals. Collaboration is about people working with other people to achieve common goals and create value. Advocates of Enterprise 2.0 sometimes make the fundamental mistake of arguing that collaboration is really only about achieving business goals, leaving the implication that incorporating social software into the work flow of organizations is sufficient. Even though goal-orientation is a big part of collaborating, collaboration requires more to achieve goals effectively. It requires shared experience. As Dev Patnaik and Evan Rosen recently noted, empathy and collaboration go hand in hand.

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Shaping Social Business Ecosystems as Learnscapes

August 18, 2009

shapeThe emergence of social media provides people inside and outside organizations with a way to actively speak about, speak to, and engage the product and service offerings of enterprises. Currently, 25% of search results for the World’s Top 20 largest brands are links to user-generated content and 34% of bloggers post opinions about products & brands. Enterprises, on the other hand, listen to, engage, and act on insights gained from social media.

A recent study of social media engagement by Ben Elowitz and Charlene Li covered the 100 largest brands and, among other conclusions, noted that,

One recurring theme throughout these case studies is that engagement cannot remain the sole province of a few social media experts, but instead must be embraced by the entire organization.

Channels, policies, processes, touch points and transactions are increasingly viewed as parts of the social experience organizations use to encourage employees in collaboration (also known as — Enterprise 2.0), and engage customers in conversation (also known as — social media) for the purposes of innovation and transformation of the business. The common goal of the ongoing discussion involves transforming business practices to incorporate social relationships into the value proposition to customers and other stakeholders.

Integrating engagement into enterprises is crucial to strategic efforts to use social software throughout an ecosystem, inside and outside the formal organizational hierarchy, as social business design. My contention is that such integration is most likely to succeed with a focused approach to informal learning. In my last post, Scalable Learning and Learnscapes in Social Business Design, I offered the following point.

The concept of learnscape is a useful framework for thinking about the strategic challenge to the range of learning activities occurring as companies attempt to create feedback loops between their brand experience and the functional areas of their enterprise, especially in regard to the multidisciplinary collaboration needed to make these efforts successful.

The concept of a learnscape, initially outlined by Jay Cross, focuses our attention on designing ecosystems to heighten the innovation and performance of people. I lay out some thoughts about learnscapes and shaping ecosystems below, using key concepts from the Dachis Group’s framework, initially discussed in an earlier post on HP’s WaterCooler project. I don’t claim these insights provide proven techniques for shaping enterprise ecosystems. But, I do think they point in a useful direction for those thinking about Enterprise 2.0 and social media strategy to keep in mind. Read the rest of this entry »


Scalable Learning and Learnscapes in Social Business Design

August 10, 2009

 learnscapeAbout a month ago I read What Would Andrew Do?, an unbook by Jay Cross and friends. I’ve mentioned Jay’s work in previous posts dealing with elearning 2.0 and collaboration in informal learning. In particular, its important to remember that focusing on informal learning doesn’t mean we must disregard the relevance of formal learning because learning is never 100% formal or informal.

However, the term scalable learning probably does require a bit of clarification. After all, isn’t elearning supposed to scale to the size of the learning group and remain available when they need it, where they need it, as long as they are connected to the Web? Well, yes–and it does pretty much. Nevertheless, instructional designers too often fail to incorporate emergent learning requirements of the organization, the enterprise, into  their learning architecture largely because the approaches used to evaluate learning content (whether elearning, blended, or instructor-led) do not incorporate assumptions about the larger ecosystem’s need for the co-creation of knowledge.

The concern for whether the learner is exposed to every thread of content in every course, and assessed for mastery of the information, tends to predominate design thinking about learning, and for compliance training sometimes this is required.  However, too often, instructional design fails to focus on whether the learning scales to support the learner’s ability on-the-job to recognize a problem as a particular kind of problem, much less provide the ability to find the learning content that provides a solution.

I don’t intend to delve here into the minutiae of distinction possible between types of learning. Suffice it to say that when a learning architecture supports all types of learning along the range of formal, non-formal, and informal experience, it must design formal learning in small enough chunks to serve as resources for non-formal and informal learning activities. It also means that the knowledge created using non-formal learning (whether mentored or accomplished in collaboration with peers), or informal learning taken on its own, needs to become a performance resource in developing new formal learning content.

Jay contends that the performance challenges facing organizations are most aptly conceptualized as a learnscape, a concept initially articulated by John Seely Brown and Paul Duguid. In the August 2009 issue of Chief Learning Officer magazine, Jay offers the following synopsis.

Learnscapes are the factory floor of knowledge organizations. The “scape” part underscores the need to deal at the level of the learning environment or ecology…The “learn” part highlights the importance of baking the principles of sound learning into that environment rather than leaving it to chance.

 John Hagel sees learnscapes as part of a global transformation of industrial society that he, John Seely Brown, and Lang Davison call the Big Shift: the move from institutions designed for scalable efficiency to institutions designed for scalable learning. Hagel’s thinking is relevant since, as I explain below, Jay uses the Push/Pull distinction to demarcate formal and informal learning. The basic insight is conveyed by Hagel, Brown, and Davison in their thoughts on Measuring the Big Shift:

Companies must move beyond their fixation on getting bigger and more cost-effective to make the institutional innovations necessary to accelerate performance improvement as they add participants to their ecosystems, expanding learning and innovation in collaboration curves and creation spaces. Companies must move, in other words, from scalable efficiency to scalable learning and performance. Only then will they make the most of our new era’s fast-moving digital infrastructure.

The participants that Hagel, Brown, and Davison refer to consist of consumers, customers, partners, and employees using social media to talk about, talk to, and engage the products and services, i.e. brands, that an enterprise markets. Don’t misunderstand the focus on performance in the discussion of scalable learning. It isn’t about the traditional focus on efficiency, pursuing ever leaner processes for the sake of officially recognized best practices. Rather, the focus is on creating the knowledge needed to adapt to emergent challenges and manage the flow of that adaptation through the enterprise’s ecosystem. For learning architecture it begins with understanding the importance of keeping the focus on distinctions between push and pull learning.

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Social Business Design: Insights from HP’s WaterCooler

July 15, 2009
snakes_handling

Social Media Snake Oil?

Does your organization approach using social media in its business as something to fear or as something to evangelize? Several recent observers note that incorporating social media into business involves changing the culture underlying communication patterns and decision-making in many large organizations.

Amber Naslund, for instance, tells us that adopting social media means changing the mindset on how to do business. In particular, she says using social media in business means “giving your customers a visible, valuable say in how you do things, and having the faith that doing that is just good business.” On the other hand, Caroline Dangson, of IDC contends enterprises aren’t yet sold on social media and that “there are executives still fearful of the transparency that comes with the social media spotlight.” Specifically, Caroline says that,

Corporate culture has everything to do with adoption of social media. I believe the number one factor preventing full adoption of social media is the lack of executive trust in employees. This culture is about control and creates a workplace of silos. This type of workplace is not set up to be social and the silos are barriers to worker productivity.

So, here social media sits, between fear and faith. Needless to say, the truth about social media’s implications for business design lies somewhere in the middle. The fact of the matter, as Todd Defren tells us, is that we need to begin seriously discussing “how Social Media Thinking will impact the greater whole of the company.”

As noted in an earlier post, keeping in mind the distinctions between formal, process-oriented organization and informal, practice-based organization is crucial in thinking through the collaborative challenges posed by social software for enterprises and designing for the experiences supported. We can learn a bit about the complexity of the challenges involved by considering a recent framework offered on social business design by the Dachis Corporation team and discussing the way it relates to a recent report on an experiment in enterprise social media at the Social Computing Lab of HP Laboratories.


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Social Business Design and Multichannel Team Collaboration

July 7, 2009

hub

David Armano recently asked the question, Is the Hub and Spoke Model Adaptable? Anyone who ever worked on a project team in a large organization, especially corporate enterprises, probably recognizes the hub and spoke team design depicted in the graphic above. In this post I take a closer look at the hub and spoke design’s purpose in hierarchical, bureaucratic, organizations–the kind associated with industrial society. Our next post discusses how David answered his question and what an adaptable hub and spoke model implies for social business design.

Project management, typically consisting of one or more team leads clustered in the hub, considers the failure of any spoke’s functional work practices to align with approved best practices as evidence of process ignorance, a failure of competence in following the detailed process requirements in the team’s project plan, not a failure of the organization’s adaptive capability. The hub and spoke model’s basic idea is that a matrix-organization, consisting of cross-functional project teams, optimizes the traditional hierarchical organization by adding increased flexibility in responding to market demands for innovation in products and services, and maintaining adherence to a standard management process. However, as Rob Cross and Robert Thomas observe in their recent book, Driving Results Through Social Networks,

…most projects and processes are enabled by productive networks that form among some (but not all) team members in combination with relationships that bridge to key resources and expertise outside of the team.

In other words, much of the collaborative effort going into innovation projects also involves social networks that aren’t part of project teams. Instead, these networks emerge from relationships with others in the enterprise, or from outside friends and associates. Perhaps this is one of the reasons that some research into geographically distributed teams shows that on average, only 75% of the employees on any given distributed team agree about who is, and who is not, on their team. The challenge increases in importance as project teams form and disband more rapidly to manage risk and opportunity, thereby increasing the already fuzzy distinctions of formal organization, i.e. official teams, and informal organization, i.e. social teams.

Ross Mayfield summarized the point well in the following observation:

Process is “how work should be done.” And Practice is “how work is actually done.” When process fails (exceptions), people use practice to fix things. When process doesn’t exist, practice fills the void. While people don’t realize it when they engage in practice, they actually are tapping into community — an informal social network within or beyond the enterprise to discover expertise and get things done. The problem is that we haven’t had the tools to support good practice. The problem is that we haven’t developed the group memory around practice that creates institutional leverage. In fact, we still design organizations to prevent practice and cultures that hoard knowledge and communities. 

I suggest that the real value of social business design comes from the promise it holds for enabling management practices to develop to deal with the following fact:  Social networks do not respect organizational walls, they never did.

Shared experience, not just shared information, is fundamental to the social networks underlying collaboration and innovation. Many, if not most, employees don’t only need to get to know one another through reputation systems, like who people tag as possessing expertise. As Thomas Vander Wal continues to point out, comfort with one another is needed to develop a shared experience that encourages the open sharing of information.  

Collaboration means getting to know that other employees possess expertise on this or that topic, but also developing comfort with one another by sharing significant symbols relating to self, family, friends, and social activities, thereby understanding one another as people. Shared experience with co-workers and customers is a key factor in innovative business practices. It is especially important to multichannel collaboration.

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Social Business, the Golden Rule, and Open Empathy Organization

May 20, 2009

empathyI first took real notice of the term “social business” in a post early this year over at Peter Kim‘s blog. The concept of social business is not limited to those enterprises seeking to “generate social improvements and serve a broader human development purpose,” though these are certainly admirable goals. Rather, social business is increasingly discussed as a frame of analysis for considering the business implications of  large numbers of people using web 2.0 technologies, especially social media, within corporate enterprises as employees, or outside them as customers.

Channels, policies, processes, touch points and transactions are increasingly viewed as parts of the social experience organizations use to engage employees in collaboration, and customers in conversation. The common goal of the discussion involves transforming business practices to incorporate social relationships into the value proposition to customers and other stakeholders.

My recent reading of Wired to Care by Dev Patnaik (with Peter Mortensen) provided some basic insights for me in thinking about the development of social business practices. I highly recommend it to anyone with an interest in the intersection of experience design and organization. The book explores the concept of empathy in a manner that speaks to the social business discussion by pointing out that the result of a transformation is more than adoption of new technologies such as social media.

Wired to Care offers an approach to organizing business as well as creating design insights on how to engage customers to improve products and services. One of my earliest posts on Skilful Minds, Break the Golden Rule with Customer Dialogue Support, offered the following observation,

Many “customer care” approaches call for treating customers the way you’d like to be treated—the so-called Golden Rule. Treating customers the way we, as service providers want to be treated implies that we inherently know what’s best for them. A customer dialogue approach alternatively assumes that customers know, or can quickly learn, what’s best for them as individual customers. We need to treat customers the way their actions indicate they want, not the way we would want to be treated as a customer.

Reading Wired to Care persuaded me that my previous point only moved the discussion a part of the way to an understanding of the nuances of the Golden Rule for business. Wired to Care offers an interesting point of view on the limitations inherent in the traditional understanding of the Golden Rule, while contending that a full appreciation of it reveals truths about us as individuals, and our relationship to organizations, whether as employees or customers. It outlines three levels of the Golden Rule:

  1. “Do unto others as you would have them do unto you” — the most basic level with limited efficacy unless people share the same view of the world
  2. “Do unto others as they would have done to them” — requires increased empathy to distinguish the wants and needs of individuals
  3. “Do unto each other as we would have done unto us” — provides for empathy by focusing on “how we’d all like to be treated, inside the company and out,” yet also recognizes that good business practice might additionally require treating people “better than they expect to be treated”

Dev contends that the third level of the Golden Rule provides a basis for integrating empathy into the everyday practices of organizations. Though he does not use the term social business, Dev’s analysis offers a foundational strategy for implementing social business through the concept of an Open Empathy Organization.

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Considering Social Media’s Business Value

December 5, 2008

social_media_returns1
A month ago, Don Bartholomew asked the question, “Is 2009 the Tipping Point for Social Media accountability?” Don summarized the meaning of his question about accountability as follows:

So far, the spirit of experimentation has provided a sort of ‘get out of jail free’ card with respect to having to demonstrate the value of digital and social media programs and initiatives.  It looks like 2009 will change all that due primarily to three factors:

– the widespread awareness of social media use in a business context

– the economy

– the economy

In a similar tone, Peter Kim recently took up the issue of return on investment (ROI) of social media. His thoughts on the topic were a response to a post by Lewis Green. Lewis offers a distinction between focusing on ROI and focusing on business Value as two different, though complementary, ways of addressing the importance of social media to business.

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Socializing Big Data through BRPs

September 11, 2013

BTD

To start let’s consider two distinctions about organizational processes. Following Sig over at Thingamy, two basic types of processes exist: easily repeatable processes (ERPs) and barely repeatable processes (BRPs).

ERPs: Processes that handle resources, from human (hiring, firing, payroll and more) to parts and products through supply chains, distribution and production.

BRPs: Typically exceptions to the ERPs, anything that involves people in non-rigid flows through education, health, support, government, consulting or the daily unplanned issues that happens in every organisation.

As I noted in Social Learning and Exception Handling, BRPs result in business exceptions and take up almost all of the time employees spend at work. Interestingly, much of the writing I see on Big Data is about making ERPs more efficient or making guesses about when to expect occurrences of a BRP. In other words, both goals are really about making coordination of organizational efforts more efficient and/or effective.

How organizations coordinate their activities is essential to the way they function. What makes sense for the organization’s internal processes may not make sense in its ecosystem, and vice versa. These are distinctions that analysts of Big Data sometimes fail to note and consider.

For example, in The Industrial Internet the Future is Healthy, Brian Courtney notes the following about the use of sensors in industrial equipment and the benefits derived from storing at big data scale.

Data science is the study of data. It brings together math, statistics, data engineering, machine learning, analytics and pattern matching to help us derive insights from data. Today, industrial data is used to help us determine the health of our assets and to understand if they are running optimally or if they are in an early stage of decay. We use analytics to predict future problems and we train machine learning algorithms to help us identify complex anomalies in large data sets that no human could interpret or understand on their own [my emphasis].

The rationale behind using data science to interpret equipment health is so we can avoid unplanned downtime. Reducing down time increases uptime, and increased uptime leads to increases in production, power, flight and transportation. It ensures higher return on assets, allowing companies to derive more value from investment, lowering total cost of ownership and maximizing longevity.

In other words, Courtney’s analysis of the big data generated from sensors that constantly measure key indicators about a piece of equipment assumes the data ensures a decrease in downtime and an increase in uptime resulting in increases in production, power, flight and transportation. Yet, the implied causal relationship doesn’t translate to all cases, especially those involving barely repeatable processes (BRPs) that produce business exceptions. It is in BRPs that the real usefulness of big data manifests itself, but not on its own. As Dana Boyd and Kate Crawford note in Critical Questions for Big Data, “Managing context in light of Big Data will be an ongoing challenge.”

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Siloed Social Conversations Impede Shared Experience

June 19, 2013

screenshot-altimetersocialbusiness-2013

The Altimeter Group’s report from earlier this year, The Evolution of Social Business: Six Stages of Social Business Transformation, offers the above graphic to exemplify the way social networking develops as the social activities of businesses mature. I tend to feel skeptical about many developmental models in social business simply because markets differ, sometimes in fundamental ways, and businesses organize accordingly. However, since a previous post here summarized the currently dominant Hub and Spoke approach as falling short as a way to organize collaboration in relation to customer experience, I feel elaborating on that point is in order.

Shared experience, not just shared information, is fundamental to the social networks underlying collaboration and innovation. Many, if not most, employees don’t only need to get to know one another through reputation systems, like who people tag as possessing expertise. As Thomas Vander Wal continues to point out, comfort with one another is needed to develop a shared experience that encourages the open sharing of information.

Collaboration means getting to know that other employees possess expertise on this or that topic, but also developing comfort with one another by sharing significant symbols relating to self, family, friends, and social activities, thereby understanding one another as people. Shared experience with co-workers and customers is a key factor in innovative business practices. It is especially important to multichannel collaboration.

Shared experience is so important because, as Karl Weick so deftly noted almost twenty years ago, it provides the basis for mutual understanding or, to put it bluntly, how we understand one another when we do things together. Nancy Dixon recently offered a concise summary of this point which I recommend reading.

I’ve noted the importance of shared experience to collaboration in several posts. Michael Sampson summarized the points I’ve tried to make as aptly as anyone in his post Get to Know Your Virtual Colleagues as People – and Good Things Happen (to Important Things Like Productivity) and his perspective is much appreciated by me. He noted:

Trust between collaborators is an important factor related to collaboration effectiveness. Spending time talking to and learning about the people you work with provides the mechanism for trust to flourish – if they are trustworthy – or diminish – if they are not worthy of your trust…It makes sense that when people experience the same thing together – creating shared history and shared memories – it binds the group together in a much deeper way than merely having the same information.

So, you might say, what does this have to do with organizational silos?

The best way to begin answering the question is to look at an interesting insight offered by Mark Fidelman and Dion Hinchliffe regarding the cross-currents enterprises face in attempts to use social software to increase collaboration. In Rethinking the Customer Journey in a Social World they noted:

…it’s the mindset of the social world, where everyone knows what everyone else is doing, and perhaps even thinking, that may very well be the hardest to adapt to and instill in our corporate culture. It’s a world where those who know how to tap into global knowledge flows in social networks on the “edge” of our businesses will succeed. Thus, we need a new vocabulary for understanding not only our businesses, but how it will deeply affect the entire experience of our customers, from beginning to end. This transformation of thinking and working is required in order to access the significant benefits of truly remaking how we engage with the market.

Their thinking seems torn between insight into where the changes for business are headed and what they think likely to happen in the short-term. Dion in particular recognizes the fact that social business requires organizational transformation when, for instance, he asserts, ” social business is first and foremost a transformation involving people and the organizations they work with.” Yet, if you consider where he thinks the in-roads for social software (including social media) are for business over the next year or so, the contrast in perspective is pretty distinct. Dion says in another post that it is in the vertical space of enterprises where most of the innovation is set to occur for social software.

While general purpose social software platforms can certainly be used in all of these areas, high impact application of social media to the way we work often requires application-specific constraints on conversations and the resultant community activity (my emphasis). This means social customer care benefits from conversations organized around support, social supply chain focused on ERP transactions, and so on, along with software that supports these applied uses.

Yammer spread out over Sharepoint sites is a good example. The enterprise use-cases of social business implementation offered by Ray Wang support Dion’s assertion. Indeed, one of the recent findings by The Community Roundtable offered in their 2013 State of Community Management report is indicative. The report observes that community managers are most often “hubs” and, further, that:

Key factors, such as the amount of cross-functional interactions and size of community teams [with external or internal focus — my point], are putting a resource strain on community managers, particularly in large organizations.

A key organizational point is worth making here because it relates directly to the burdens the hub-and-spoke model, whether  cross-functional or dandelion, places on collaboration between employees, customers, partners, and other stakeholders. Indeed, the “Tip” offered by Jeremiah Owyang of Altimeter regarding the “dandelion” hub-and spoke model is telling. He noted that,

the lines connecting the multiple hubs may be severed.  Tip: provide way for spokes to connect to each other, not just be funneled through a central group.

Just like social networks do not respect organizational boundaries, edge cases do not respect vertical (read, silo-oriented) organizational constraints on conversation. This is an important point when you consider that most of the time spent by employees involves dealing with edge cases, i.e. exceptions to core processes. I suggest that at least part of this outcome results from the fact that not enough employees in the enterprise develop shared experiences. If you agree with me, I guess we just need to think about how to make this happen. If not, then you probably need a bit more detail which, hopefully, you can spare the time for.

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Podular Organization and Edge Businesses

May 9, 2013
Podulation -- From Dave Gray's Connected Company

Podular Design — From Dave Gray’s Connected Company

In Institutional Innovation and Podular Design I noted a number of insights from the Aspen Institute’s report, Institutional Innovation: Oxymoron or Imperative?, especially that “the most important innovation challenges are now in fact institutional in nature.” As an aside, let me just note that institutions typically change in dramatic ways only over long periods of time. Think of institutions such as religion, government, the economy, and then consider the various organizational forms in which these institutions took shape across cultures over time.

One insight I have not discussed in previous posts is relevant to understanding the changing way teams work together in organizations and, by implication, in a Connected Company — as outlined by Dave Gray. Richard Adler the Rapporteur for the Aspen sessions, noted that,

“New findings about the power of collective intelligence and about the most effective ways of organizing teams are providing practical insights about how to accelerate innovation.”

To start, let’s consider many companies organize teams and then turn to the “power of collective intelligence” mentioned by Adler to see how the two relate to podular organization. Several research projects in recent years noted the fuzzy boundaries of teams in large organizations. Skilful Minds first noted this phenomena in Who’s on Your Team? Enterprise 2.0 and Team Boundaries , and then a couple of years later in Social Learning, Collaboration, and Team Identity.

In fact, the phenomena of transitory team membership is so pervasive that some people propose we analyze “teaming” rather than teams when talking about how groups organize for cross-functional purposes within, or between, companies. Consider, for example the way, Mark Mortensen summarizes this trend in team dynamics,

First, organizations increasingly require collaborations to be fluid in their organization and composition, able to adapt to the rapid changes of the external environment. Second, collaborations increasingly overlap with one another, sharing resources — including people — as those resources become more limited due to increased competition. Third, collaborations must increasingly take into consideration the different contexts within which collaborators are embedded, including locations, time zones, cultures, and languages, structures, or organizations.

The liminality of such transitory teams results from several institutional challenges including the high degree of misunderstandings that initially occur due to team members rarely having the time to translate the different ways of thinking that people bring from their professional specializations into a mutual understanding of their shared business purpose. Developing mutual understanding requires shared experiences, getting to know who you are collaborating with, not just what they do or their skills profile. In addition, conflicting functional priorities, and often a lack of clear accountability, make it difficult for such teams to remain focused on the business purpose of their collaboration.

Teams were not always organized this way. As Mortensen notes, teams in multi-divisional companies were, at one time, defined by bounded and stable team membership and common goals that interdependent work was required to meet. Cross-functional teams in such companies today are not typically defined by bounded and stable membership, and common goals are still too often related to divisional performance driven by scalable efficiency rather than a connection to the purpose of the business the team is serving.

As Brown and Hagel recently observed:

Over the last 40 years, the emergence of new digital infrastructures and a global liberalization of economic policy have increased the pace of change exponentially. Many companies that were extremely successful in earlier times of relative stability are now finding that their relationship architectures are fundamentally misaligned with the needs of their business today. As the pace of change increases, many executives focus on product and service innovations to stay afloat. However, there is a deeper and more fundamental opportunity for institutional innovation—redefining the rationale for institutions and developing new relationship architectures within and across institutions to break existing performance trade-offs and expand the realm of what is possible.

Institutional innovation requires embracing a new rationale of “scalable learning” with the goal of creating smarter institutions that can thrive in a world of exponential change.

The challenge then remains how to enable organizations to adapt to their ecosystems by enhancing access to flows of knowledge that are likely to result in learning. Leinwand and Mainardi recently observed that permanent cross-functional teams tend to fare better than transitory teams in engaging organizational ecosystems. As they note:

We’ve recently seen a more robust cross-functional construct emerge, one  with an overarching organizational structure, based on building and maintaining a distinctive capability. Members of these capabilities teams are assigned permanently to them, reporting there rather than through a functional hierarchy.

Permanent cross-functional teams provide an institutional basis for what Hagel and Brown refer to as edge businesses that develop within large-scale enterprises, noting that such companies “should resist the temptation to confront the core, and instead  focus on opportunities on the periphery or at the ‘edge’ of their businesses that can scale rapidly.” I suggest below that Dave Gray’s conception of podular organization affords an important insight regarding how the institutional innovation of edge case businesses can develop and organize. Read the rest of this entry »


Business Exceptions Are Not Always What They Seem

April 30, 2013

factory

Common wisdom among thought leaders discussing learning in organizations notes that most of the learning that occurs happens informally, or socially. A previous Skilful Minds post, Social Flow and the Paradox of Exception Handling in ACM , asserted:

people learning at work rely on social, or informal learning, around 80% of the time. Interestingly, I noted in a former post, Social Learning and Exception Handling, that John Hagel and John Seeley Brown contend that “as much as two-thirds of headcount time in major enterprise functions like marketing, manufacturing and supply chain management is spent on exception handling.” It is not coincidence that the two numbers are aligned.

The most basic point to remember is that exceptions to formal business processes require efforts to design a scalable learning architecture that supports content co-creation needed to adapt to emergent challenges and manage the flow of that adaptation through an enterprise’s ecosystem. Whether judging an adaptation successful requires it to result in new formal learning content, i.e. content co-creation, or a new business process, i.e. organizational innovation, or both, remains an open question.

Informal, social learning is key to exception handling since both make up most of what people do in organizing work in enterprises.

Of course, for every generalization there is usually an exception. My posts on business exceptions to this point largely focus on Barely Repeatable Processes (BRP) where informal and social learning assists employees solve issues raised by the need to improvise and handle exceptions to maintain a good customer experience, or solve issues experienced by other stakeholders such as business partners, suppliers, etc.

Recently, while reading General Electric’s A Connected World blog, one case described there led me to think about informal learning and collaboration with a different twist. It caused me to reconsider exceptions and look at the way attempts to make processes better by using working knowledge learned informally also produces exceptions in some organizational contexts.

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On the Roots of Social Computing

November 17, 2011

I recently received an invitation from Mads Soegaard, Editor-in-Chief at Interaction-Design.org to offer those who read this blog an early view of a new chapter on Social Computing in their encyclopedia. I’m a little late on this writing for you to get a pre-publication view of the chapter but I wanted to make sure and point it out for those who take topics like social computing seriously. Thomas Erickson wrote the chapter. To be candid, I didn’t really know much about Thomas until I read it. He seems like a very interesting person. Thomas’ chapter takes seriously the point of an early comment I made in a post here in 2008 on Social Software, Community, and Organization: Where Practice Meets Process, specifically my point that not enough of the influential discussion on the topic took seriously the roots of what it means to do social computing.

The distinctions involved are as old as the study of social interaction in organizations, especially the characteristics of routine work. However, we don’t need to go back to the 1950s when the distinction first emerged in the study of industrial organization to understand the significance of Ross’ point. Indeed, the early 1980s will do. Rob Kling discussed computing as social organization as early as 1982 in Marshall Yovits’ edited series on Advances In Computers. Drawing from the symbolic interactionist tradition, Rob distinguished between a line of work which, he contended, indicates what people actually do in computing work, compared to formal descriptions of that work, or what we might today refer to as business processes. Kling’s work was one precursor to the focus on computer supported collaborative work  (CSCW) in studies of group collaboration, most notably developed at Xerox PARC.

The social roots of social computing are important for influentials to keep in mind as they discuss current developments in Web 2.0 technologies, especially their use in the enterprise. The point is not a simple academic exercise of giving credit to what came before. Rather, it is to take note that the distinctions made explicit…regarding practice/process are as old as the modern, hierarchical organization and seem to survive regardless of the way communication technology is applied in it. Those who discuss tensions between social software and Enterprise 2.0, or learning management systems and eLearning 2.0, are pointing to persistent challenges in how organizations work.

Thomas’ chapter provides an excellent overview of the roots, history, and development of the concept of social computing as a concept that promises to stand the test of time regardless of the labels used to describe it, e.g. Web 2.0, Social Media, Social Business, Enterprise 2.0, etc. I recommend anyone involved in current discussions related to compound nouns like social media, social business, social “this” or “that” take a look at Thomas’ chapter as well as the Interaction-Design.org encyclopedia which offers in-depth analysis of such topics.


Social Flow and the Paradox of Exception Handling in ACM

September 28, 2011
Compliments of Dave Gray’s photostream

There is nothing like an exception to the way things are done to highlight the need to increase knowledge sharing, especially if the exception is one instance of a pattern that results in bad experiences for customers. As Jay Cross recently noted, people learning at work rely on social, or informal learning, around 80% of the time. Interestingly, I noted in a former post, Social Learning and Exception Handling, that John Hagel and John Seeley Brown contend that “as much as two-thirds of headcount time in major enterprise functions like marketing, manufacturing and supply chain management is spent on exception handling.” It is not coincidence that the two numbers are aligned.

Social Learning and Exception Handling, discussed the organizational challenges involved in dealing with exceptions to business process and their relationship to the shared experience of people working together saying,

The most basic point to remember is that exceptions to formal business processes require efforts to design a scalable learning architecture that supports content co-creation needed to adapt to emergent challenges and manage the flow of that adaptation through an enterprise’s ecosystem. Whether judging an adaptation successful requires it to result in new formal learning content, i.e. content co-creation, or a new business process, i.e. organizational innovation, or both, remains an open question.

Informal, social learning is key to exception handling since both make up most of what people do in organizing work in enterprises. We know people face difficulty when drawing from shared experience, especially in distributed teams because fewer points of common reference exist. Leadership and management consultants often contend a common organizational culture pulls teams together, even though distributed teams frequently span national, regional, and global locations. However, the mere challenge of everyone on a team knowing who else is a member can prove daunting as enterprises grow.

One of the promises of social business is the capability to embed social networks into human relationships to organize business enterprise in a way that people can act together without centralized command and control. The discussions linking the capability involved with its organizational implications for group performance are far fewer. Dave Gray’s discussion of pods in The Connected Company is one notable effort in that direction. In my conception of it, the key challenge is one of organizing businesses for social flow.

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Social Flow and Collaboration in Gameful Design

June 27, 2011

Courtesy of wetwebwork photostream

In Social Flow in Gameful Design I made the point that social flow contrasts to Csikszentmihalyi’s original concept of individual, or solitary flow, in which a person’s engagement in actions is optimal when they lose a sense of time and awareness of self in an intrisincally rewarding feeling of accomplishment. Social flow implies a qualitatively different order of the flow experience, a group-level experience. To that extent, gameful designs that take social flow into consideration incorporate a different set of design principles to those involved in what most people currently refer to as gamification.

In a similar vein, Simon Wiscombe recently observed , “Gamification is inherently flawed because it focuses on rewarding players for the end-state.” He adds that designs that gamify are best when they focus on the journey rather than the outcome, especially if the aim is to evoke the voluntary, ongoing engagement of participants. I emphasize the importance of voluntary experience because if you can’t quit playing when you want to the experience is not a gameful one. Recent social psychological research supports Simon’s point.

Walker recently offered a series of relevant social psychological studies on social flow:

Flow in a social context may be a qualitatively different phenomenon than flow experienced in isolation. Classic research in social psychology has amply demonstrated that people act, think, and feel qualitatively differently within a group than by themselves…Social contexts introduce additional variables that may inhibit, facilitate, or transform flow experiences. Social contexts can be enormously complex. They range from ‘mere presence’ situations where individuals perform in the midst of passive others…, to co-active situations where people perform side-by-side but do not interact, to highly interdependent interactive situations where people must cooperate and coordinate their performances within established groups…In highly interdependent situations, people may serve as agents of flow for each other. This form of social flow is mutual and reciprocal, a form that is likely to be qualitatively different than solitary flow (my emphasis). In mere presence and some co-active social situations, a form of solitary flow is probable because the unit of performance is the individual, however when the unit of performance is a group, especially a team that must do tasks requiring interdependence and cooperation, social flow should be more likely. Social flow should be easily seen in highly cohesive teams in which there is agreement on goals, procedures, roles, and patterns of interpersonal relations and the competency of team members is uniformly high… (see original text for references, my emphasis added).

The main thing to note from Walker’s research is that it confirms Csikszentmihalyi’s point (p. 158) that flow experiences occur most frequently in work settings, yet qualifies it by noting that “social flow is more joyful than solitary flow.” Moreover,  interactive situations compared to co-active ones scored highest in social flow in Walker’s research.

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Social Flow in Gameful Design

May 21, 2011

Courtesy of Haxney's Photostream

To start I want to acknowledge that the term “gamification” is not the subject of this post even though it is the buzz term these days. So before going further let me explain why I think the term is misleading.

When used as a noun, gamification implies a standardized design process and I don’t think one exists for implementing game design that enables relationships in social business. I prefer to follow Jane McGonical’s use of the term gameful to reinforce the point that the spirit of games rather than the mechanics is most important in designing for what makes experience playful, especially in collaboration. I do use gamification in the context of other people’s discussions though.  In additon, I use the verb gamify to imply an activity.

Don’t Gamify Wild Bill discussed the importance of designing for voluntary play in serious games. Playfulness is the baseline requirement for any game designed to provide useful indicators for gauging individual and organizational successes over time.

The qualifier over time is the key point to keep in mind. Specifically, those interested in gamifying employee engagement in social business, and who also aim to effectively use collaboration, must optimally design for emergence not just competition and cooperation as guiding principles.

To echo the position taken by many game designers on the subject of gamification, you can’t simply add game mechanics to employee participation in business processes and expect voluntary engagement by players over time.

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Social Learning and Exception Handling

December 9, 2010

We know that most learning in the workplace is informal. Most observers put it at around 80%. Recently, John Hagel and John Seeley Brown contended that “as much as two-thirds of headcount time in major enterprise functions like marketing, manufacturing and supply chain management is spent on exception handling.” Of course, that fact is a result of the successes of process automation over the past few decades. Yet, still, The Barely Repeatable Process (BRP) persists as an organizational challenge for business.

Earlier discussions here focused on the importance of exceptions, to business process and formal learning. I examined the implications of the Kirkpatrick Evaluation model to the use of social media in learning experience design, while addressing the challenges facing learning leaders. Leading the Business-Centered Learning Experience noted that evaluating formal learning is as much about organizational learning and change management as it is about individual learning, largely because much of the learning, and performance, that matters today occurs at the group level. Marc Rosenberg recently echoed the point in an article in Learning Solutions Magazine, The Special Sauce of Social Learning. Marc noted that social learning is largely a change management challenge for organizations.

 The most basic point to remember is that exceptions to formal business processes require efforts to design a scalable learning architecture that supports content co-creation needed to adapt to emergent challenges and manage the flow of that adaptation through an enterprise’s ecosystem. Whether judging an adaptation successful requires it to result in new formal learning content, i.e. content co-creation, or a new business process, i.e. organizational innovation, or both, remains an open question.

Echoing John Hagel, John Seeley Brown, and Lang Davison’s focus on The Big Shift, Tim Young recently noted the following about  social networking and exception handling,

When an exception happens, we have to step away from our PowerPoint, stop typing an email, or exit a meeting in order to take care of it. Routine work stops. And, our modern reliance on technology to find, aggregate, and alert us to these exceptions has made the task of managing them more burdensome than ever before. Systems that manage exceptions provide the enterprise with vast amounts of data points that have become overwhelming for employees to handle. The applications that we rely on for managing exceptions still rely on process owners to make decisions and respond to the issues. The result is a workforce that isn’t dealing with exceptions well at all. (my emphasis)

The importance of social networking to increasing the effective handling of exceptions is a major focus for those interested in social learning.

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