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Enterprise 2.0 SUMMIT, Frankfurt am Main, 2009
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Measuring Collaborative Performance - Due Diligence for Enterprise 2.0
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Enterprise 2.0 SUMMIT, Frankfurt am Main, 2009
1.
Dr. Kjetil Kristensen ©
Kristensen Consulting 2009 MEASURING COLLABORATIVE PERFORMANCE - Due Diligence for Enterprise 2.0 Enterprise 2.0 SUMMIT Frankfurt am Main - 11 November 2009
2.
Outline Outline Quick introduction: Collaboration
- the big picture Characteristics and challenges Collaborative performance Common misconceptions Suggested approaches Measuring impacts: Due diligence for Enterprise 2.0 Collaboration inventory; diagnostics tools and techniques Success factors for realizing benefits Final reflections © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 2
3.
Collaboration Collaboration – – Opening
Statement Opening Statement “Firms come into being in order to enable human beings to achieve collaboratively what they could not achieve alone. If one accepts this as the true purpose of any organization, then the main focus of executives’ attention should be on how to foster collaboration within their companies” Hansen & Nohria, MIT MR 2004 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 3
4.
The Big Picture The
Big Picture “The only thing that gives an organization a competitive edge… is what it knows, how it uses what it knows, and how fast it can know something new” Laurence Prusak, IBM “If only HP knew what HP knows, we would be three times as profitable” Lew Platt, former HP CEO The majority of work is collaborative Knowledge: 60-80 % of our time is spent on interactions Trend: Portion of interactions growing [Gartner, McKinsey] Technology plays an increasingly important role Reducing the cost of interactions Making it easier to find relevant knowledge and experts New perspectives on knowledge and competitiveness Possible to achieve a quantum leap in productivity The million dollar question is – how to do this? 4 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT
5.
Basic Performance Dimensions Basic
Performance Dimensions Efficiency ( ) Effectiveness ( ) Activity (Ak) O G R I I: Input O: Output G: Goal R: Resources I: Input O: Output G: Goal R: Resources Source: O’Donnell and Duffy, 2001 5 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT
6.
Basic Performance Dimensions Basic
Performance Dimensions Efficiency ( ) Effectiveness ( ) Activity (Ak) O G R I I: Input O: Output G: Goal R: Resources I: Input O: Output G: Goal R: Resources Source: O’Donnell and Duffy, 2001 Make sure you know what you want to achieve 6 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT
7.
Basic Performance Dimensions Basic
Performance Dimensions Efficiency ( ) Effectiveness ( ) Activity (Ak) O G R I I: Input O: Output G: Goal R: Resources I: Input O: Output G: Goal R: Resources Source: O’Donnell and Duffy, 2001 Make sure you know what you want to achieve “There is nothing quite so useless as doing with great efficiency that which should not be done at all.” - Peter Drucker 7 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT
8.
Knowledge Discovery Activity Space Team
Setup Knowledge Worker Requirements Knowledge Worker Requirements © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT Personal Workview Management Overview Real Time Collaboration Based on the 6FP EU-project 8 Efficiency ( ) Effectiveness ( ) Activity (Ak) O G R I I: Input O: Output G: Goal R: Resources I: Input O: Output G: Goal R: Resources
9.
Measuring Collaborative Performance Measuring
Collaborative Performance © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 9 Current Practice Benefits Costs Future Practice
10.
Measuring Collaborative Performance Measuring
Collaborative Performance © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 10 Current Practice Benefits Costs Future Practice Blurry Can be identified Blurry Can be identified Blurry Can be identified
11.
Common Misconceptions Common Misconceptions More
collaboration is always better E 2.0 is primarily about technology or efficiency There are no success stories Knowledge work is unmeasurable Collaboration is so ingrained in what we do that its effects cannot be separated from the rest © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 11 Source: McKinsey, Compustat
12.
Measuring Impacts: Due
Diligence for E2.0 Measuring Impacts: Due Diligence for E2.0 Measuring collaborative performance is about measuring how collaboration contributes to objectives Cause and effect relationship can be difficult to assess That should not prevent us from trying Preparatory work Know the baseline; current problems and their related costs Establish proper links; identify collaboration causalities Collaborative strategies • Objective(s) • Scope (domain) • Advantages A collaboration inventory of approaches and methods are outlined on the next slides © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 12
13.
Evaluate opportunities for collaboration Spot barriers to collaboration Tailor collaboration solutions 1.1 Upside
calibration tool Benchmark data: 107 companies* 1.2 The collaboration matrix Collaboration Inventory Collaboration Inventory - - #1 #1 13 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT Source: Morten T. Hansen: Collaboration. Harvard Business Press, 2009. Collaboration premium Collaboration premium Return on project Return on project Opportunity cost Opportunity cost Collaboration cost Collaboration cost = - - 2.1 The four barrier rating Benchmark data: 107 companies* 2.2 Barrier-to-lever worksheet 3.1 The lever barometer Benchmark data: 107 companies* 3.2 The lever gap analysis Collaboration Premium Concept * Benchmark sample: 107 companies, 50-150 000 employees (mean = 11 076 employees)
14.
Collaboration Inventory Collaboration Inventory
- - #2 #2 Success factors – Mattesich et. al. Environment (3 factors) Membership characteristics (4 factors) Process and structure (6 factors) Communication (2 factors) Purpose (3 factors) Resources (2 factors) Most important success factors for collaboration identified from 40 (18+22) out a total of 414 (133+281) studies Wilder Collaboration Factors Inventory A free online collaboration assessment © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 14 Source: Mattesich Murray-Close & Monsey, 2001
15.
Collaboration Inventory Collaboration Inventory
- - #3 #3 ROC = ((functional area spend) * functional area change) overall UC&C spend Functional area spend = the total annual organizational revenues * the revenue percentage spent on each functional area Functional area change = the percent of improvement on each functional area that the organization believes is attributable to deploying collaboration solutions Overall UC&C spend = the total amount of money an organization spent to deploy their collaboration solution set during a specified time period Many other approaches exist, but The application of these approaches depend on the context If you need to measure and justify, define precise objectives Know the baseline (current performance, costs and benefits) © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 15 Source: Frost & Sullivan, 2009
16.
Example Perf. Measurement Example
Perf. Measurement – – Eng. Design Eng. Design Determining the most productive way of carrying out a set of eng. design tasks 4 different scenarios / platforms tested Simple experiment with defined script Measures Subjective (S) and objective (O) Intersubjctive (IS) and interobjective (IO) Exterior measures (O/IO) Clock Wage plans Checklists Interior measures (S/IS) Forms Semantic differential Forced ranking © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 16
17.
Useful results Some hypotheses
confirmed Other hypotheses rejected Factors & trade-offs in a dashboard format Improved decision support Industrial processes complex But they can be broken down Example Perf. Measurement Example Perf. Measurement – – Results Results © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 17 Interobjective Objective Subjective Intersubjective
18.
Realizing Benefits: 12
Theses on Collaboration Realizing Benefits: 12 Theses on Collaboration 1. Collaboration is an essential part of knowledge work. 2. The majority of work is collaborative. 3. Think, then act. 4. Collaboration requires disciplined management and leadership to succeed. 5. While important, technology is not enough. 6. Work practices should be systematically developed and reviewed. 7. Usability is too important to be left to the technology people alone. 8. The importance of awareness and training cannot be overstated. 9. Collaboration is inherently dynamic and should be treated accordingly. 10. Get your priorities right. 11. Find the sweet spots rather than using a forced approach. 12. Never forget that collaboration is about creating value. Source: KC Blog – www.collaborationperspectives.com 18 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT
19.
Collaborative Performance Collaborative Performance
– – Final Reflections Final Reflections Quick summary We spend 60–80% of our work time on interactions and collaboration Some approach collaboration strategically, others operationally Both perspectives are required to build collaborative advantage Know the baseline – otherwise asymmetries will kill your business case Objective-driven approaches are more likely to succeed Identify potential benefits and barriers before planning solutions Reflect on what you are targeting – effectiveness or efficiency Some final points Justification is possible, but the process is time consuming Methods often require business information that is not readily available Operational collaboration objectives require clear strategic objectives A justification exercise will increase the transparency of trade-offs © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 19
20.
Kjetil Kristensen, PhD Kristensen
Consulting Beddingen 8, Aker Brygge Central Business District N-0250 OSLO, NORWAY E-mail kc@kristensenconsulting.com Office +47 22 82 36 44 Mobile +47 92 61 50 08 Blog www.collaborationperspectives.com Twitter www.twitter.com/k_kristensen Web www.kristensenconsulting.com
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