MEASURING COLLABORATIVE PERFORMANCE
- Due Diligence for Enterprise 2.0
Dr. Kjetil Kristensen          Enterprise 2.0 SUMMI...
Outline

            Quick introduction: Collaboration - the big picture
            Characteristics and challenges
      ...
Collaboration – Opening Statement

            “Firms come into being in order to enable human
            beings to achie...
The Big Picture

            “The only thing that gives an organization a competitive
            edge… is what it knows, ...
Basic Performance Dimensions


        I:   Input
        I:
        O:
        O:
             Input
             Output
...
Basic Performance Dimensions


        I:   Input
        I:
        O:
        O:
             Input
             Output
...
Basic Performance Dimensions


        I:   Input
        I:
        O:
        O:
             Input
             Output
...
Knowledge Worker Requirements
                                                                             I:   Input
    ...
Measuring Collaborative Performance



   Future
  Practice




  Current
  Practice




                                 ...
Measuring Collaborative Performance



   Future                                                        Blurry
  Practice ...
Common Misconceptions

            More collaboration is
            always better
            E 2.0 is primarily about
  ...
Measuring Impacts: Due Diligence for E2.0

            Measuring collaborative performance is about measuring
            ...
Collaboration Inventory - #1


            Evaluate
                                             Spot barriers            ...
Collaboration Inventory - #2

            Success factors – Mattesich et. al.
                 Environment (3 factors)
   ...
Collaboration Inventory - #3

       ROC = ((functional area spend) * functional area change)
                            ...
Example Perf. Measurement – Eng. Design

            Determining the most productive way
            of carrying out a set...
Example Perf. Measurement – Results


                                                                Interobjective


   ...
Realizing Benefits: 12 Theses on Collaboration

       1.    Collaboration is an essential part of knowledge work.
       ...
Collaborative Performance – Final Reflections

       Quick summary
          We spend 60–80% of our work time on interact...
Kjetil Kristensen, PhD

Kristensen Consulting
Beddingen 8, Aker Brygge
Central Business District
N-0250 OSLO, NORWAY
E-mai...
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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. 1. MEASURING COLLABORATIVE PERFORMANCE - Due Diligence for Enterprise 2.0 Dr. Kjetil Kristensen Enterprise 2.0 SUMMIT © Kristensen Consulting 2009 Frankfurt am Main - 11 November 2009
  2. 2. 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. 3. Collaboration – 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. 4. 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? © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 4
  5. 5. Basic Performance Dimensions I: Input I: O: O: Input Output Output Effectiveness ( ) G: G: Goal Goal G R: R: Resources I Activity O (Ak) R Efficiency ( ) Source: O’Donnell and Duffy, 2001 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 5
  6. 6. Basic Performance Dimensions I: Input I: O: O: Input Output Output Effectiveness ( ) G: G: Goal Goal G R: R: Resources I Activity O (Ak) R Make sure you know what you Efficiency ( ) want to achieve Source: O’Donnell and Duffy, 2001 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 6
  7. 7. Basic Performance Dimensions I: Input I: O: O: Input Output Output Effectiveness ( ) G: G: Goal Goal G R: R: Resources “There is nothing quite so useless as doing with I Activity O great efficiency(Ak) which should not be done at all.” that - Peter Drucker R Make sure you know what you Efficiency ( ) want to achieve Source: O’Donnell and Duffy, 2001 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 7
  8. 8. Knowledge Worker Requirements I: Input I: O: O: Input Output Output Effectiveness ( ) G: G: R: Goal Goal Resources G R: Resources I Activity O (Ak) Personal Workview Efficiency ( ) R Activity Space Real Time Collaboration Team Setup Knowledge Discovery Management Overview Based on the 6FP EU-project © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 8
  9. 9. Measuring Collaborative Performance Future Practice Current Practice Costs Benefits © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 9
  10. 10. Measuring Collaborative Performance Future Blurry Practice Can be identified Current Blurry Blurry Practice Can be identified Can be identified Costs Benefits © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 10
  11. 11. 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 Source: McKinsey, Compustat © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 11
  12. 12. 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. 13. Collaboration Inventory - #1 Evaluate Spot barriers Tailor opportunities to collaboration for collaboration solutions collaboration 1.1 Upside calibration tool 2.1 The four barrier rating 3.1 The lever barometer Benchmark data: 107 companies* Benchmark data: 107 companies* Benchmark data: 107 companies* 1.2 The collaboration matrix 2.2 Barrier-to-lever worksheet 3.2 The lever gap analysis * Benchmark sample: 107 companies, 50-150 000 employees (mean = 11 076 employees) Collaboration Premium Concept Collaboration Return on Opportunity Collaboration = - - premium project cost cost Source: Morten T. Hansen: Collaboration. Harvard Business Press, 2009. © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 13
  14. 14. Collaboration Inventory - #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 Source: Mattesich Murray-Close & Monsey, 2001 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 14
  15. 15. Collaboration Inventory - #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) Source: Frost & Sullivan, 2009 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 15
  16. 16. Example Perf. Measurement – 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. 17. Example Perf. Measurement – Results Interobjective Subjective Objective Useful results Some hypotheses confirmed Other hypotheses rejected Factors & trade-offs in a dashboard format Intersubjective Improved decision support Industrial processes complex But they can be broken down © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 17
  18. 18. 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 © Kristensen Consulting 2009 | Enterprise 2.0 SUMMIT 18
  19. 19. Collaborative Performance – 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. 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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