Leadership implications of the web

The Leadership Implications of theEvolving WebGrady McGonagill, Ed.D.AMcGonagill Consulting Massachusetts Bay Organization Development Learning GroupJanuary 19, 2011

Leadership Implications of the Evolving Web Study  Context: - Bertelsmann Stiftung Leadership Series  Motivation: - Document innovative examples of Web 2.0 tool applications  Methology: - Review of books/articles, Web - Expert interviews  Focus: - Individual sectors (business, government, social) - InternationalMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 2

“Aha - Moments”  The Web is bringing about a revolution with few precedents  Its impact is in the form of new mindsets and culture more than new tools  Implications for leadership: a new paradigm  Implications for organizing: a new sector—a 21st Century Virtual Commons  Most intriguing new concept: “emergence”Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 3

Need for New Leadership Paradigm: 7 Indicators Leadership as an activity rather than a role Recognition of leadership as a collective process From organization-centric to network-centric leadership From organizations as “machines“ to organizations as “organisms“ From planning and controlling to learning and adaptation Need for new levels of leadership capacity From Generation X to Generation YMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 4

Need for New Leadership Paradigm: 7 Indicators Leadership as an activity rather than a role Recognition of leadership as a collective process Need for new levels of leadership capacity From organization-centric to network-centric leadership From organizations as “machines“ to organizations as “organisms“ From planning and controlling to learning and adaptation From Generation X to Generation YMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 7

Need for New Leadership Paradigm: 7 Indicators Leadership as an activity rather than a role Recognition of leadership as a collective process Need for new levels of leadership capacity From organization-centric to network-centric leadership From organizations as machines to organizations as organisms From planning and controlling to learning and adaptation From Generation X to Generation YMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 8

Need for New Leadership Paradigm: 7 Indicators Leadership as an activity rather than a role Recognition of leadership as a collective process Need for new levels of leadership capacity From organization-centric to network-centric leadership From organizations as machines to organizations as organisms From planning and controlling to learning and adaptation From Generation X to Generation YMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 9

Need for New Leadership Paradigm: 7 Indicators Leadership as an activity rather than a role Recognition of leadership as a collective process Need for new levels of leadership capacity From organization-centric to network-centric leadership From organizations as machines to organizations as organisms From planning and control to sensing, adaptating, and learning From Generation X to Generation YMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 10

Need for New Leadership Paradigm: 7 Indicators Leadership as an activity rather than a role Recognition of leadership as a collective process Need for new levels of leadership capacity From organization-centric to network-centric leadership From organizations as “machines“ to organizations as “organisms“ From planning and controlling to learning and adaptation From Generation X to Generation YMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 11

Criteria for a New Paradigm  Adaptive  Supportive of emergence  Cognizant of complexity  Integral  Outcome-orientedMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 12

New Paradigms: 5 Examples  Action Inquiry  Adaptive Leadership  CCL’s DAC model  Integral Leadership  Theory U Page 13Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill

Developing New Mindsets, Skills, Knowledge, Cultures  Mindsets: from the need to control to the “art of letting go”  Skills: - Old: interpersonal skills, coaching, team/group facilitation, systems thinking - New: network leadership, leading “Millennials“  Knowledge: Web 2.0 literacy, cultural literacy  Culture: “Fehlerkultur “ Page 14Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 14

Developing New Mindsets, Skills, Knowledge, Cultures  Mindsets: from the need to control to the “art of letting go”  Skills: - Old: interpersonal skills, coaching, team/group facilitation, systems thinking - New: network leadership, leading “Millennials“  Knowledge: Web 2.0 literacy, cultural literacy  Culture: “Fehlerkultur ” Page 15Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 15

Developing New Mindsets, Skills, Knowledge, Cultures  Mindsets: from the need to control to the “art of letting go”  Skills: - Old: interpersonal skills, coaching, team/group facilitation, systems thinking - New: network leadership, leading “Millennials“  Knowledge: Web 2.0 literacy, cultural literacy  Culture: “Fehlerkultur ” Page 16Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 16

New Leadership Approaches: Developing New Mindsets, Skills, Knowledge, Cultures Mindsets: from the need to control to the “art of letting go“ Skills: - Old: interpersonal skills, coaching, team/group facilitation, systems thinking - New: network leadership, leading “Millennials“ Knowledge: Web 2.0 literacy, cultural literacy Culture: “Fehlerkultur ” Page 17Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 17

New Leadership Approaches: Developing New Mindsets, Skills, Knowledge, Culture  Mindsets: from the need to control to the “art of letting go“  Skills: - Old: interpersonal skills, coaching, team/group facilitation, systems thinking - New: network leadership, leading “Millennials“  Knowledge: Web 2.0 literacy, cultural literacy  Culture: “Fehlerkultur ” Page 18Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 18

The (Organizational) Impact of the Web by Sector 1. Business Sector 2. Social Sector 3. Government Sector 4. A 21st Century “Commons“ Page 19Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 19

Business Sector  Challenges and Opportunities  Examples and Patterns  Cases Page 23Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 23

Challenges and Opportunities  “Enterprise 2.0”: The “Open, Networked Enterprise,” reflecting changes in… - Corporate boundaries (from closed, vertically integrated to open, networked) - Innovation (from closed, within company to open, including co-creation with customers and drawing ideas from a global brain trust) - Marketing (from one-way “push” strategies to two-way conversations) - IT capacity (from company-based to the resource pool of the Cloud) - Intellectual property (from proprietary and protected to open and shared) - Knowledge (from “stocks,” such as books and libraries, to “flows,” such as conversations in which contextually relevant information and tacit knowledge are exchanged) Page 24Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 24

Challenges and Opportunities  New Ecosystems of Competition and Cooperation, in which… - Enterprises offer customers not just a product or service, but a platform capability upon which they can build their own value propositions - Relationships are a two-way street - Companies mimic the biological example of “keystone species” that proactively maintain the health of the entire ecosystem - Networks of businesses now compete with one another - Customers act as “Prosumers” (Producers and Consumers) - Companies operate “on the edge of chaos” Page 25Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 25

Challenges and Opportunities  New Ecosystems of Competition and Cooperation, in which… - Companies offer customers not just a product or service, but a platform capability upon which they can build their own value propositions - Relationships are a two-way street - Companies mimic the biological example of “keystone species” that proactively maintain the health of the entire ecosystem - Networks of businesses now compete with one another - Customers act as “Prosumers” (Producers and Consumers) - Companies operate “on the edge of chaos” Page 26Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 26

Challenges and Opportunities  New Ecosystems of Competition and Cooperation, in which… - Companies offer customers not just a product or service, but a platform capability upon which they can build their own value propositions - Relationships are a two-way street - Companies mimic the biological example of “keystone species” that proactively maintains the health of the entire ecosystem - Networks of businesses now compete with one another - Customers act as “Prosumers” (Producers and Consumers) - Companies operate “on the edge of chaos” Page 27Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 27

Challenges and Opportunities  The “New Industrial Revolution”… - Enables entrepreneurs to compete with established businesses by combining technological innovations with Web-enabled virtual networks - Brings good news for entrepreneurs, consumers, society - Brings bad news for established companies threatened with new, lean competitors Page 28Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 28

Patterns and Examples  Communication between employees and management  Communication among employees  Efficiencies within companies  Relationships between companies and talent outside the company  Relationships between companies and customers  Relationships between companies and suppliers  Relationships among companies  Ecosystems of partners, suppliers and customers Page 29Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 29

Cases ─ Cisco ─ SAP ─ Core Media Page 38Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 38

Cisco  Web-enabled platform ,supporting a “collaborative channel” of communication within an ecosystem of stakeholders (employees, customers, competitors)  Web tools for faster, cheaper, greener meetings  Changes in organizational structure to distribute decision-making, innovate faster, bring products to market sooner Page 39Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 39

SAP  From small company in Walldorf, Germany to 4th largest software company in the world, in 25 years  Creates company-wide software applications  Had to cope with wrenching industry change: moving from large, tightlyintegrated application software to more looselycoupled modules  Introduced Netweaver in 2003 to integrate existing enterprise applications  Dilemma: how to encourage adoption of a radically new, complex product  Solution: SAP Development Network (SDN) Page 40Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 40

Core Media  Hamburg-based supplier of content-management software  Dilemma: “How to stay in control when the market, the technologies in use, global competition, and society itself is changing at an ever- increasing rate?”  Solution: “Let go” of traditional approach to management and embrace the social-networking culture of Enterprise 2.0  Online platform featuring many forms of social media, to enable exchange among staff, customers, partners  Traditional hierarchy replaced by a flexible, highly networked structure  Fostered a culture valuing transparency, openness, non-hierarchical, team-based organizing, upward feedback and criticism  Employed “open-space” facilitation tools to couple individual passion with company needs and opportunitiesMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 42

Exploring the Implications for Leadership in Organizations  Determining how your organization should position itself  Encouraging your organization to respond strategically 1. Gain personal Web literacy and foster it on your team 2. Encourage a long-term thinking process that addresses Web strategies 3. Encourage your organization to develop policies on use of social media 4. Encourage someone in the C-Suite of your organization to initiate a blog 5. Help your organization anticipate/address barriers to open leadership and use of Web tools 6. Encourage your human relations, marketing and communications departments to experiment with social media 7. Discourage ownership of Web strategies by your IT departmentMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 44

Exploring the Implications for Leadership in Organizations  Determining how your organization should position itself  Encouraging your organization to respond strategically 1. Gain personal Web literacy and foster it on your team 2. Encourage a long-term thinking process that addresses Web strategies 3. Encourage your organization to develop policies on use of social media 4. Encourage someone in the C-Suite of your organization to initiate a blog 5. Help your organization anticipate/address barriers to open leadership and use of Web tools 6. Encourage your human relations, marketing and communications departments to experiment with social media 7. Discourage ownership of Web strategies by your IT departmentMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 45

Exploring the Implications for Leadership in Organizations  Determining how your organization should position itself  Encouraging your organization to respond strategically 1. Gain personal Web literacy and foster it on your team 2. Encourage a long-term thinking process that addresses Web strategies 3. Encourage your organization to develop policies on use of social media 4. Encourage someone in the C-Suite of your organization to initiate a blog 5. Help your organization anticipate/address barriers to open leadership and use of Web tools 6. Encourage your human relations, marketing and communications departments to experiment with social media 7. Discourage ownership of Web strategies by your IT departmentMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Page 46

Appendix We offer a comprehensive and detailed overview of Web tools in the context of its brief history - Web 1.0 - Web 2.0 - Web 3.0 etc.Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Page 49

Is the Glass half-full or half-empty? The ultimate impact of the Web is not knowable There are clearly a variety of risks and threats We side with the optimistsMassachusetts Bay Learning Group January 19, 2011 Grady McGonagill Page 50

“A door like this has cracked open five or six times since we got upon our hind legs. It’s the best possible time to be alive, when almosteverything you thought you knew is wrong.” r 2010 Spoken by the character Valentine Coverly in Tom Stoppard’s play Arcadia. Page 51

QUESTIONS FOR DISCUSSION• What is your personal experience of how client organizations are changing as a result of the Web and how leaders are responding?• What do you2010 as the implications for consultants and r see coaches who work with leaders as they confront these changes?• What challenges/dilemmas do you personally face as an OD practitioner as a result of the impact of the Web? Page 52

Evaluation What I got/learned What I most enjoyed What could have been better Value to me (scale of 1-5) Further comments Page 53Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill

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