Business Value Through Collaboration

to In nG tr en od e r uc t a io n

Business Value through Collaboration July 2009

Creating Value through Collaboration {

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The core challenge – and primary opportunity for value creation – in the current economy is the utilization of complex knowledge, formed through the contributions of many specialists – in other words, collaboration nGenera is the world’s foremost expert on managing the enterprise collaboratively § Industry-recognized thought leaders

§ 300+ customers in the Global 2000

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Introducing: The PATH to Collaborative Enterprise Management (CEM) § Our approach to rapidly deliver business outcomes through applied collaboration

About nGenera nGenera was founded in 2006 by Steve Papermaster. He saw that companies needed to find new ways to collaborate to survive market disrupters, break free of 100-year-old models, and be more productive than ever before. { { {

Employees: Locations: Customers: 2000

More than 200 US, Canada, Europe 950, with more than 300 in the Global

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scenario visualization software

| © 2009 nGenera Corp. All Rights Reserved.

research, thought

Management enter-prise

The New Web 2.0 Technologies {

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Bring people together and let them interact, without specifying how they should do so Cause patterns and structure to appear over time Offer significant improvements in: § generating, capturing, and sharing knowledge § letting people find helpful colleagues § tapping into new sources of innovation and expertise § harnessing the “wisdom of crowds

The adjective socialis accurate, but unfortunate: these technologies are not about happy hour, fantasy sports league | © 2009 Tamara Erickson and nGenera. All Rights Reserved.

The Last Ten Years: A Dramatic Set of New Social Technologies 1998 Google founded

2003 My Space founded

2004 Facebook founded

2001 iTunes formed

2005 YouTube founded

2003 Skype founded 2002 Wikipedia founded

2006 Twitter founded

2008 Yammer founded (in-company microblogging)

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Wikinomics: Seven Exciting Ways of Creating Value {

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Peer-to-Peer Production – Applying open source principles to create products made of bits – from operating systems to encyclopedias Ideagoras – Giving companies access to a global marketplace of ideas and uniquely qualified minds to extend their problemsolving capacity Prosumer Communities – Giving customers the tools they need to participate in value creation Scientific Research – Lowering the cost and accelerate the pace of increased understanding Open Platforms – Inviting participation of external partners to build new tools, leverage databases, or invent applications Boundary-Crossing Manufacturing Processes – leveraging human capital to design and assemble physical things Bottom-Up Workplaces – Inviting innovation

Enterprise 2.0 6 | © 2009 nGenera Corp. All Rights Reserved.

Web 2.0 is Not Confined to “New Economy” Companies { {

. . . Nor to those full of Gen Y workers The business use of the new tools of collaboration—is benefits of Enterprise 2.0 are available to any organization. “The future is already here— it’s just not evenly distributed.”

Michael Gass | © 2009 Tamara Erickson and nGenera. All Rights Reserved.

The Twentieth Century: Mastery of Scale and Scope {

Organizations that mastered scale and scope were the ones that dominated the twentieth-century economy § Mobilized productive effort at a cost and quality never before seen

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Organizations optimized around meeting this challenge: § Strong hierarchy and division of responsibility – needing only top leaders to worry about the overall goals, freeing workers to focus on performing the defined work § Strong units or “silos” – allowing each component skill to be developed to a high level § Strict accountability – providing excellent control

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Frederick Taylor explicitly worked to remove knowledge from the daily production process and to center knowledge in a few managers and engineers § Maximize value by making organizational behavior routine

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Today those techniques have become routine – and lead to commodity models § Necessary, but not sufficient

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Now, Everyone’s Challenge: Mobilizing Intelligence {

The core problem of the current economy: § The utilization of complex knowledge, formed through the contributions of many specialists § Harnessing the smallest units of knowledge

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Now, bringing knowledge back in: § Encourage production workers to think about improvements § Encourage sales people to take initiative and responsibility in dealing with customers § Achieve more flexible ways of combining different forms of knowledge and expertise to come up with something better than any one function § Innovate faster § Respond to the market and environment more effectively § Learn and continually improve processes and routines

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Get people to use their particular knowledge and capacities in ways that continuously contribute to the success of the whole

These activities require collaboration | © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Your Key Business Challenge May Not Be “Collaboration” {

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“We have to do more with a LOT less” §

Staff reductions have been severe: 10-25%

§

Of those who remain, only 20% are truly engaged

§

We have to work on the right things – and re-engage key people

“We must preserve our customer base” §

Disruption is our greatest threat and opportunity

§

Decisions we make now affect our long-term viability

“Speed matters” §

Changes are happening faster than ever

§

Short runways on execution (3-6 months)

“We need to consider a new way to operate” § Global, flexible – reinvention of obsolete models

But addressing all these challenges depends on the general capacity to mobilize people with widely diverse | © 2009 nGenera Corp. All Rights Reserved.

Collaboration is a Fundamental Way to Address All Business Priorities Today {

Not something to do in addition to other business priorities

The core opportunity for re-thinking obsolete An essential element of employee engagement – creating commitment and stimulating New possibilities for

The key to successful innovation – bringing ideas

A powerful tool for strengthening the customer experience and your brand

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

This Train is Leaving the Station {

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Increasingly, all organizations will leverage collaborative approaches to add value Old approaches (scope, scale, cost) have been mastered and – although always important – provide little competitive advantage Technology now enables a very different level of performance Competition will shift the playing field

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Shifting to Collaboration Can Be Extremely Difficult 1. Individuals are asked to contribute at a higher level •

Dealing with rich content that flows through infinite links

•

Interacting with peers in new and unfamiliar ways

2. Organizations must modify five centuries of Western tradition •

Moving away from loyalty reciprocated with protection and care, and individual autonomy

•

Accepting performance-based arrangements, with greater interdependence

3. “Collaboration” covers a broad set of activities, each best achieved through different organizational approaches and technologies

Collaboration is good, in part, because it is difficult ~

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Understanding the Nature of Collaboration Collaboration is working together to achieve a level of performance superior to what any one person or entity Collaboration creates synergy, where the value of the whole is greater than

Collaboration

•

is more than connecting, socializing, sharing, or learning (though Collaboration is about getting useful work done. 14 | © 2009 nGenera Corp. All Rights Reserved.

all those things

PATH to Collaborative Enterprise Management Discover

~

Design

~

Deploy

Collaborati ve Enterprise Design

Business Outcomes

Collaborati ve Intents

Collaborati ve Capacity

Alignment and Collaborativ Community e Capacity Engagemen t

Collaborati on Platform

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Collaborati on Results and Metrics

The Ten Collaborative Intents

| © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

PATH to Collaborative Enterprise Management Discover

~

Design

~

Deploy

Collaborati ve Enterprise Design

Business Outcomes

Collaborati ve Intents

Collaborati ve Capacity

Alignment and Collaborativ Community e Capacity Engagemen t

Collaborati on Platform

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Collaborati on Results and Metrics

Some Organizations Better Support Each Collaboration Intent

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r t s u l Il ive | © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

PATH to Collaborative Enterprise Management Discover

~

Design

~

Deploy

Collaborati ve Enterprise Design

Business Outcomes

Collaborati ve Intents

Collaborati ve Capacity

Collaborati on Platform

19 | © 2009 nGenera Corp. All Rights Reserved.

Alignment and Collaborativ Community e Capacity Engagemen t

Collaborati on Results and Metrics

The Collaborative Enterprise Requires a Major Culture Shift

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

. . . And Substantially Different Supporting Processes Bureaucratic Hierarchy

Provide clear and consistent job definitions { Motivate employees to perform consistently and obediently within those jobs { Build a culture of company loyalty { Tie employee interests to longterm company loyalty – create pension funds and internal promotion ladders based on tenure {

Collaborative Enterprise { { {

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Build and maintain a unifying sense of purpose Organize and formalize peer or associational relationships Connect the system to the outside world through planning and sensing Enable the system to learn Allow the organization to form and re-form

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

A Major Academically-Grounded Study of Collaboration The Cooperative Advantage

• An extensive, academically-grounded industry-based study of collaborative teams • Included results from over 50 work groups from 15 leading global companies • Conducted in 2006 by The Concours Institute (now nGenera) and London Business School

| © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

The Ten Factors Enabling Collaborative Capacity

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t s u e l l I iv

| © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

The Collaborative Capacity Assessment Measures Your Current Strengths Relative KEY

Median

Enabling Factor

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r t s u l Il ive Higher scores are more favorable

* Based on scores of over 50 teams from 15 knowledgeintense multinational firms

| © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

Percentage

PATH to Collaborative Enterprise Management Discover

~

Design

~

Deploy

Collaborati ve Enterprise Design

Business Outcomes

Collaborati ve Intents

Collaborati ve Capacity

Alignment and Collaborativ Community e Capacity Engagemen t

Collaborati on Platform

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Collaborati on Results and Metrics

A Cluttered Landscape

“How do I drive results from collaboratio n?”

Technology: Essential Enabler – and Insufficient {

Technological fixes are useful only when the collaborative culture has developed to a significant degree – in a bureaucratic system, people are reluctant to enter the information or use the systems

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Most efforts to implement systemic collaborative platforms have fared poorly or failed § Content- or technology-centric approach Peak of inflated § Isolated Web 2.0 experiments expectatio § Lack of executive sponsorship Plateau § Poor organizational change management of Slope of producti § Difficulty in measuring results enlighten ment Trough of disillusion ment

Technolo gy trigger | © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Gartner’s Hype Cycle

Some Tools and Applications Better Support Each Collaboration Intents

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r t s u l Il ive | © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

Collaborative Applications and Tools Applic ations

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Collaboration Platform

What: Our core platform that hosts all applications, content and

connections Benefits: collaboration

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Low-cost, scalable, secure environment for workgroup

CIM

What: Customer Interaction Management integrating email, chat and

voice Benefits: (via suggestion)

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Customer retention, lower support costs, increased sales

Ideagora

What: Idea generation and management Benefits: Solicit and rank great ideas from any audience about any

topic

{ nJAM

What: simultaneous users Benefits: to great ideas

Large scale, external-facing Ideagora for thousands of Customer, employee and constituent engagement, access

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Simulation

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Wikiforce

What: Business and operating model simulation Benefits: Save costs by simulating the impact of new initiatives before rolling them out

| © 2009 nGenera Corp. All Rights Reserved.

Wiki

Events

Interest Groups

Ideas

Most Popular

Tag Cloud

Top Users

Who’s Online

3rd Party

Collaboration Tools and Applications

Workflow

Conversat ion

Projects

Example of a Collaborative Platform Architecture

Search Recommendations Content Repository

Proc ess

Releva nce

| © 2009 nGenera Corp. All Rights Reserved.

Content & Connecti

PATH to Collaborative Enterprise Management Discover

~

Design

~

Deploy

Collaborati ve Enterprise Design

Business Outcomes

Collaborati ve Intents

Collaborati ve Capacity

Alignment and Collaborativ Community e Capacity Engagemen t

Collaborati on Platform

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Collaborati on Results and Metrics

Collaboration is Fundamentally a Discretionary Activity { { {

People have to want to share ideas and work together It can be catalyzed, but it can’t be mandated It is a “pull” rather than “push” approach

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Creating Community Engagement {

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Enrollment in the collaborative enterprise occurs one person at a time – it is discretionary Incentives include: § Having a stake § Having a voice § Having an impact § Having a community bond

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Often a key element of an engagement process is reframing issue – developing personal connections to the issues A dialogue strategy is crucial

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

PATH to Collaborative Enterprise Management Discover

~

Design

~

Deploy

Collaborati ve Enterprise Design

Business Outcomes

Collaborati ve Intents

Collaborati ve Capacity

Alignment and Collaborativ Community e Capacity Engagemen t

Collaborati on Platform

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Collaborati on Results and Metrics

Metrics – and Results – Geared to Each Collaborative Intent

t a

r t s u l Il ive | © 2009 Tamara J. Erickson and nGenera. All Rights Reserved.

What’s Your Entry Point into the PATH to Collaborative Enterprise Management?

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.

Diagnostic Stages: Collaborative Enterprise Management LEVEL 3

Business Outcomes and Intents Enterprise Design Collaborative Capacity Collaboration Platform Alignment, Engagement and Results

1. Business outcomes highly dependant on collaboration 2. Dynamic, distributed and highly evolved collaborative structures 3. High trust and a community of adults 4. Well-integrated 2.0 tools 5. High levels of commitment to

LEVEL 2

1. Business outcomes with growing requirements for collaboration 2. Increasing use of cross-functional project teams 3. Information is opened strategically, islands of trust 4. Utilization of both 2.0 and traditional communication tools

LEVEL 1

1. Business outcomes not yet formulated around collaboration 2. Hierarchical, siloed, rule-driven environment 3. Relationships characterized by mistrust/opacity 4. Reliance on traditional communication tools (email, phone, face-to-face) 5. Emphasis on self-contained jobCorp. execution 37 | © 2009 nGenera All Rights Reserved.

Collaborative Enterprise Management: All About Business Outcomes { {

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Old way: § Managing collaborative technologies New way: § Collaboratively managing the enterprise § Opportunity to transform enterprise productivity, engagement and innovation by applying collaboration to management processes An integrated PATH: § Begins with thought leadership and innovative research § Focuses on business outcomes § Provides end-to-end insight § Leverages a new breed of collaborative applications on a robust cloud-based platform compatible with Microsoft’s SharePoint and Google’s 38 | © 2009 nGenera Corp. All Rights Reserved.

Your Name Your [email protected] Your phone www.nGenera.com

© 2009 nGenera. All Rights Reserved.

Shift to Collaboration Has Been Underway

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Although the way the enterprise has been organized and how it gets work done has not changed fundamentally for the past 100+ years, there has been some movement to reverse the long trend toward stronger hierarchy: 1970s – Quality circle programs 1980s – Semi-autonomous team formation – brainstorming, consensual prioritization – bounded, homogeneous, stable 1990s – Task forces – people coming together from very different bases of knowledge and experience for relatively brief periods, with no expectation of an on-going relationship – the beginning of extended collaboration 2000s – Web 2.0 – facilitating distributed interaction on an unprecedented scale

| © 2009 Tamara Erickson and nGenera. All Rights Reserved.