Decision-Driven Collaboration

Cisco IBSG Horizons T M Decision-Driven Collaboration Insights from Cisco IBSG Horizons Collaboration Research October 2012 Cisco IBSG Horizons For more information: http://cs.co/ibsg-ddcCisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1

Cisco IBSG Horizons Horizons Collaboration Study 1,028 993 Executives Middle Managers and Individual Contributors  U.S. enterprises with 1,000+  U.S. enterprises with 1,000+ employees employees  18 industries represented  18 industries represented  All titles of director or above  All titles of senior manager (27% CXO) (managing < 5 reports) or  Responsible for making below “critical” company decisions  Knowledge workers only Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2

Cisco IBSG Horizons Quality of Decision Making Determines the Fate of Companies Frequency with which market incumbency is lost due to factors 88% within a company’s control, rather than external causes Source: Matthew S. Olson and Derek van Bever, Stall Points, 2008; Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3

Cisco IBSG Horizons The State of Decision Making Executives who consider their 71% company’s decision making “good” or “excellent” Individual contributors rating company 51% decision making “good” or “excellent” Percentage of firms who have been 32% displaced in the Global 500 in the past decade Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4

Cisco IBSG Horizons Denial of Risk and Peril Stage 3 Denial of Risk and Peril Stage 2 Stage 4 Undisciplined Pursuit of More Grasping for Salvation “Amplifying the positive and discounting the negative” “Big bets and bold goals without Stage 1 Stage 5 empirical data”Hubris Born Capitulation toof Success Irrelevance or Death Source: How the Mighty Fall and Why Some Companies Never Give In, Jim Collins, 2009Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5

Cisco IBSG Horizons Introducing Decision-Driven Collaboration What Is It?  A management framework focused on connecting people to share information and ideas, but emphasizing the outcomes of collaboration (i.e., the quality of decisions) rather than just the volume of interactions  An approach to empowering employees as decision makers and experts in their own right  A strategy to harness employee-led innovation in a disciplined, aligned manner so that the overall decision-making intelligence of the business is increased Decision-Driven Collaboration ≠ Decision Making by Committee Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6

Cisco IBSG Horizons Three Key Elements of Decision-Driven Collaboration Collaborate to Identifying key contributors, soliciting input, sharing Engage ideas Collaborate to Shaping the matter to be decided, considering Evaluate viable alternatives Collaborate to Making a clear decision, aligning the relevant parties, Execute putting it into practice Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7

Cisco IBSG Horizons Decision-Driven Collaboration Targets the Full Lifecycle of How Work Is Done Which of the Following Steps in the Process of Collaboration Do You Think Is the Most Efficient in Your Company Today? Identifying colleagues with the right 26% experience and ideas Contacting and meeting with 20% colleagues Sharing ideas, feedback, and 33% opinions Capturing, consolidating, and analyzing ideas 14% Executing the change or decision 8% that is identified Source: Cisco IBSG, 2012 N = 459 executivesCisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9

Cisco IBSG Horizons Leveraging Employee Expertise? Executives who feel they 68% regularly consult with experts of all levels when making decisions Individual contributors who feel 49% they are not consulted when their expertise is called for Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 10

Cisco IBSG Horizons Usage Gap Inhibits Decision Making Value from Collaboration Tools Two-way business video via telepresence 83% 41% Two-way business video via mobile phone 77% 29% Web conferencing via PC 86% 45% Web conferencing via mobile phone 71% 30% Unified communications across all communications 82% devices (e.g., office phone, mobile phone, tablet PC) 42% Business social software (e.g., corporate social 76% networking, expertise directory) 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Helpful in making better decisions Widely available, highly used Source: Cisco IBSG, 2012 N = 604Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 11

Cisco IBSG Horizons Data-Analysis Tools Are in Place, and Considered Valuable… Agree executives are provided with data 70% analysis technology Agree executives are trained to use data- 67% analysis technology Agree executives are expected to use 65% data-analysis technology Believe data-analysis tools can improve 80% decision making Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 13

Cisco IBSG Horizons …But Are Also Under-Exploited Widely Available and Used by Executives Real-time operations data 35% Decision dashboards 35% Consolidated market intelligence 34% Access and use by individual contributors are roughly half these levels Online tools to locate SMEs 37% Analytics and BI 34% Modeling and forecasting tools 32% Online listening tools 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 14

Cisco IBSG Horizons Key Decision-Making Challenges Affect Execution Top 2 Challenges: Analysis paralysis: decisions #1 bogged down in details (43%) Decisions not well- #2 communicated (32%) Source: Cisco IBSG, 2012 N = 600Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 16

Cisco IBSG Horizons Individual Contributors and their Bosses Diverge on Outcomes and Execution Individual contributors who feel 36% there is not shared understanding with management of a “successful outcome” of a decision (77% of execs feel there is) Individual contributors who feel 41% there is not shared understanding with management of what is “required to execute” a decision (78% of execs feel there is) Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. 2011 Cisco Public Internet Business Solutions Group 17

Cisco IBSG Horizons Employees Have Little Say About Execution Individual contributors who do 57% not feel empowered to offer constructive dissenting views Individual contributors who have “little” or “no opportunity” to 48% improve decision-making process Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 18

Cisco IBSG Horizons Decision-Driven Collaboration Enablers Collaborate to Engage a) Foster an Inclusive  Encourage any information sharing that can improve BusinessPeople a decision outcome Environment  Enable employees to make their voices heard, irrespective of function, geography b) Unbundle  Facilitate access to expertise at point of businessProcess Traditional Teaming need Structures  Enable virtual teaming and clusters of expertsTechnology c) Provide a Platform  Drive inclusiveness and opportunities to problem- for Interaction solve  Enable information-rich, context-aware interactions through technology Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 20

Cisco IBSG Horizons Decision-Driven Collaboration Enablers Collaborate to Evaluate d) Nurture a Culture of  “Democratize” analytics—move analysis beyond the Analysis preserve of executives and “number crunchers”People  Bring analysis to bear closer to the point of business need e) Require True  Constructively challenge entrenched assumptionsProcess Alternatives with fact-based empirical data  For all major decisions, insist on at least two viable alternatives with quantified business casesTechnology f) Create a Listening  Use technology to collect information proactively Infrastructure from customers, partner ecosystem, employees, etc.  Capitalize on the cloud to capture and distill insights from all angles Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 21

Cisco IBSG Horizons Decision-Driven Collaboration Enablers Collaborate to Execute g) Promote Invested  Create a pervasive understanding of how the ExecutionPeople organization creates value and allow everyone to make the best possible decision with this in mind  Make decisions “stickier” h) Measure How You  Drive clarity and accountability by embedding metricsProcess Manage and analytical capabilities throughout decision lifecycle  Assess decision-making success, quality of executionTechnology i) Harness  Free up employee creativity to re-imagine how Employee-Led results can be achieved on their terms (BYOD) Innovation  Leverage innovation and engagement, and direct it to strategic priorities Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 22

Cisco IBSG Horizons Conclusion: Millions of Better Decisions  Top-down innovation tends to be “orderly but dumb”; bottom-up innovation is “chaotic but smart”—can we have the best of both worlds?  Recognize that every single employee is a decision maker—increase the intelligence of every decision taken in the business, unfetter innovation  Go beyond connecting and communicating to empowering smarter evaluation and stronger execution  Steer collaboration at every layer of management to yield millions of better decisions Source: Cisco IBSG, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 23

Decision-Driven Collaboration

by Cisco IBSG (Internet Business Solutions Group) on Oct 09, 2012

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