What if Peter Drucker Taught Enterprise 2.0 Strategy?

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Peter Drucker (November 19, 1909 – November 11, 2005) was a writer, management consultant, and self-described “social ecologist.” He is in every practical sense the father of modern management strategy.

As a life long Drucker student, I’ve always imagined how he would have taught or wrote about Enterprise 2.0 and its impact on today’s management and companies. So I decided to turn imagination into reality (well… mine at least) and produced a presentation which I believe would have reflected Drucker’s view of Enterprise 2.0:

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What if Peter Drucker Taught Enterprise 2.0 Strategy?

  1. WHAT IF PETER DRUCKER TAUGHT ENTERPRISE 2.0 STRATEGY
  2. What LESSONS would he draw?
  3. How would he have explained ENTERPRISE 2.0 to solve toKHy’s IusPnLss problems?
  4. LLt’s EXPLORE a proposed Curriculum
  5. INTRODUCTION About successful organizations Drucker stressed three things MANAGEMENT INNOVATION COMMUNITY
  6. Drucker thought a MANAGER’S task is to make the strengths of people effective and their weaknesses irrelevant
  7. Drucker believed that rLlyPnN on yLstLrKHy’s successes are far more risky than constantly INNOVATING
  8. Drucker considered a business an economic organ that was equally a COMMUNITY
  9. As for technology he deemed it an extension of the KNOWLEDGE WORKER
  10. DRUCKER: Work creates a unique social bond HmonNst LmployLLs. |t’s Hlso tOL PntLrMHJL Mor using technology as tools which in turn helps shape corporate culture and personality.
  11. NEITHER TECHNOLOGY OR PEOPLE determines the other, but each shapes the other
  12. So that the result is a more EFFECTIVE CORPORATION
  13. Work has always been SOCIAL
  14. But TODAY’S Enterprise 1.0 knowledge worker is SEPARATED from his colleagues and customers
  15. Blocked by voice mail, email and noise
  16. Blocked by voice mail, email and noise So we’re less social
  17. Blocked by voice mail, email and noise So we’re less social Less of a community
  18. Blocked by voice mail, email and noise So we’re less social Less of a community Less effective
  19. But ENTERPRISE 2.0 technologies and strategies can bring community back to work
  20. STILL YET
  21. ENTERPRISE 2.0 is not a substitute for poor LEADERSHIP
  22. ‚Life can only be understood backwards. But then one forgets the other principle: that it must be lived forwards.‛
  23. So lLt’s look IHJkwHrK HnK sLL WHATWOULD DRUCKERDO
  24. LEHMAN BROTHERS THE 31st FLOOR
  25. Before top LEHMAN EXECUTIVES arrived at Headquarters in NYC they would call the front desk
  26. The front desk would get the security guard to HOLD A PRIVATE ELEVATOR
  27. The private elevator was programmed to go straight to the 31ST FLOOR
  28. Why did they spend an estimated $100,000 to create this process?
  29. Why did they spend an estimated $100,000 to create this process? INEXPLICABLE – ‚GLt out and meet pLoplL tOHt’s your laboratory, hands on‛ DRUCKER
  30. Worse, most Lehman employees NEVER saw OR heard from their top Executives
  31. In fact the CEO was nicknamed the INVISIBLE MAN
  32. HERE HE |S… RICHARD FULD
  33. So why did Lehman Executives AVOIDTHEIR OWNEMPLOYEES
  34. SomL JlHPm tOLy KPKn’t wHnt to IL EXPOSED Mor Hll tOLy KPKn’t unKLrstHnK
  35. Like the sub-prime mortgage CRISIS
  36. Made worse by their ISOLATION
  37. And alarmingly, the best at Lehman were SILENCED as they issued WARNINGS
  38. Execs KPKn’t wHnt to OLHr TRUTH THE
  39. Later, banks refused to do business with Lehman because of its COMPLEX & OPAQUE methods of trading
  40. Soon, investors lost CONFIDENCE And the stocked plunged
  41. Soon, investors lost CONFIDENCE And the stocked plunged -95%
  42. THEN BANKRUPTCY
  43. But if implemented, would ENTERPRISE 2.0 STRATEGY AND TECHNOLOGY have saved Lehman?
  44. DRUCKER & E2.0 LESSONS LEARNED MANAGEMENT Because they were disconnected from the rest of the organization, bad news was either ignored (because they could ignore it in private) or never made it to the 31st floor. ORGANIZATION & COMMUNITY The organization became “sick” when management failed to ask themselves, “how long can this market sustain itself?” or even “what’s our current position and what happens if this bubble pops?” Where were the community feedback loops? TECHNOLOGY RECOMMENDATIONS MindTouch (Social Intranets) or ThoughtFarmer & Yammer (Microblogging ) would have given the Lehman community a social platform to alert the organization to the impending housing bubble collapse.
  45. WOULD E2.0 HAVE SAVED LEHMAN? POSSIBLY No methodologies or technologies can replace extremely poor leadership, but the right E2.0 tools and resulting community would have caused DRUCKER enormous pressure to change course. NO LLOmHn’s demise was a failure of leadership in multiple areas including strategy, risk management, organizational culture, integrity and ethics, and possibly including information systems. Enterprise 2.0 technologies can certainly enable greater information transparency up and down the corporate hierarchy but they cannot solve systemic malfeasance and deception. E2.0 systems would Jas Dhillon not have been able to overcome this organizational ThinkPassenger penchant for secrecy and opaqueness as they were too ingrained in the organizational culture.
  46. GENERAL MOTORS The Aztek – ‚|t looks tOL wHy MontLzumH’s rLvLnNL MLLls.‛
  47. The Original AZTEK concept car wHsn’t tOHt IHK
  48. So HOW did it end up like this?
  49. In fact, the concept car received mostly POSITIVE feedback =
  50. So good in fact that GM decided to PRODUCE the vehicle
  51. SALES anticipation was high GM ANNUAL SALES FORECAST 75,000 PER YEAR
  52. Only 30,000 cars were needed to be sold to BREAK EVEN BREAK EVEN GM ANNUAL POINT SALES FORECAST 30,000 75,000 PER YEAR PER YEAR
  53. But ACTUAL SALES were than lower than break even ACTUAL CARS BREAK EVEN GM ANNUAL SOLD POINT SALES FORECAST 27,332 30,000 75,000 FIRST YEAR PER YEAR PER YEAR
  54. But ACTUAL SALES were than lower than break even ACTUAL CARS BREAK EVEN GM ANNUAL SOLD POINT SALES FORECAST 27,332 30,000 75,000 FIRST YEAR PER YEAR PER YEAR WORSE: Of the cars sold more than 50% were sold to Rental Car fleets
  55. WHAT HAPPENED
  56. Beset by money woes, the Manufacturing Dept. DETHRONED the legendary design department which was blamed for rolling out cars that cost too much to produce.
  57. Then manufacturing boss Don Hackworth & team ordered the design to be DELIBERATELY HARDENED WEIRD FRONT SQUARE BODY END a tall hatchback PLASTIC CLAD SIDING
  58. AS A RESULT
  59. The Aztek is declared a FAILURE
  60. The Aztek is declared a FAILURE SomL JHllLK Pt tOL ‚The AMC PACER of tOL 21st JLntury.‛
  61. ‚WL’K MPrL tOL Nuy wOo GREENLIGHTED the Aztek if we could find anyone willing to Bob Lutz HKmPt Pt.‛ GM Product Boss
  62. Shortly thereafter, and ‚JoPnJPKLntHlly‛ Manufacturing Boss Don Hackworth announced his retirement after 38 years with GM
  63. So what went WRONG?
  64. No one noticed the LEMON
  65. BUT WHY
  66. BUT WHY 3 REASONS
  67. 1 INTERNAL MARKET RESEARCH went unheeded
  68. 1 INTERNAL MARKET RESEARCH went unheeded 2 THE CONCEPT CAR was changed to a Saccharine adaptation of the original
  69. 1 INTERNAL MARKET RESEARCH went unheeded 2 THE CONCEPT CAR was changed to a Saccharine adaptation of the original 3 MANUFACTURING made key decisions based solely on cost
  70. But could ENTERPRISE 2.0 STRATEGY and TECHNOLOGY have saved the Aztek or caused it not to be built?
  71. DRUCKER & E2.0 LESSONS LEARNED MANAGEMENT When the Manufacturing division of Pontiac took “control” they ignored the concept car data and made decisions based on cost. These decisions changed the car and thus demand for it. ORGANIZATION & COMMUNITY Pontiac either ignored key data or didn’t reach out to potential prospective customers once the design changes were made. Thus the build/no build market data was outdated and ultimately wrong. TECHNOLOGY RECOMMENDATIONS ThinkPassenger, Spigit, or Brightidea would have provided a portal for GM to continuously seek community input (customer & employee) in order to test different ideas or gain new ones.
  72. WOULD E2.0 HAVE CHANGED THE OUTCOME? PROBABLY While Manufacturing may have ignored any data produced by having an E2.0 organization, at the very least Pontiac would have seen the weaknesses of the Aztek and DRUCKER responded more sharply and sooner PROBABLY If they were able to measure sentiment of the concept car, manufacturing may have seen that perhaps a new cost model was warranted and gone Mike with original design instead of the design Puterbaugh that was taken to market Mindtouch
  73. September 11 Spooks, Suits & Terror
  74. The Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI) have been at WAR for decades
  75. The reasons behind this war are due to culture, charter, & INEFFECTIVE communication
  76. The Mission of the FBI is to protect the United States from FOREIGN INTELLIGENCE AND TERRORIST ACTIVITIES; to provide leadership and law enforcement assistance to federal, state, local, and international agencies
  77. The CIA is charged with national security, counterintelligence activities, special activities, and other functions related to FOREIGN INTELLIGENCE AND NATIONAL SECURITY as directed by the President.
  78. On Feb 26th, 1993 an explosive devise was planted and DETONATED on the second level of the World Trade Center parking garage
  79. As a result People were killed
  80. were injured
  81. 50 thousand EVACUATED
  82. After an investigation both the CIA and FBI were criticized for how they had communicated information received about the attack prior to the occurrence. Ramzi YouSef
  83. ‚ VP t H l i n fo rm at i o n w a s ex ch a n ge d w i t h A m e r i c a n I n t e l l i ge n c e a n d t h at t h e at t a ck c o u l d h ave b e e n Egyptian P R E V E N T E D i f t h ey President l i s t e n e d t o o u r a dv i s e ‛ Hosni Mubarak
  84. It was assumed by Egyptian Intelligence that the CIA would pass this information along to its domestic counterpart, the FBI. But due to past differences the chain for sharing this information was not in place.
  85. ‚| want coordinated law enforcement and interdiction LMMorts… tOHt mHkL Senator sLnsL…HnK rPNOt Orrin Hatch now, tOLy’rL not‛
  86. But the rivalry lead to other failures in COMMUNICATION
  87. And all of these examples point to a pattern of MISCOMMUNICATION between the FBI and CIA due to mistrust.
  88. Unfortunately, these COMMUNICATION LHpsLs wLrL not MPxLK…
  89. Unfortunately, these COMMUNICATION LHpsLs wLrL not MPxLK… Which led to DEVASTATING CONSEQUENCES
  90. W{Y D|DN’T |T ?
  91. 9/11 TERROR REDUX
  92. "It's going to look like a mosaic that was not put together at the right time. A lot of the failures will go back to the lack of communication Richard Shelby between various Senate agencies." Intelligence Committee
  93. Communication between the FBI and CIA in the months leading up to 9/11 revealed several instances of COMMUNICATION FAILURES
  94. If the two agencies had been effectively sharing intelligence the attacks MAY HAVE BEEN PREVENTED
  95. "In terms of whether or not the FBI and the CIA were COMMUNICATING properly, I think it is clear that they weren't"
  96. As early as January 2000, CIA agents were tracking Khalid Almihdhar and Nawaf Alhazmi in Malaysia at an al-Qaeda conference whom then promptly returned to a flight school in the United States.
  97. But an unnamed CIA officer was quoted as saying ‚No onL pPJkLK up on tOHt‛
  98. Worse, that INFORMATION was not shared with the FBI prior to 9/11
  99. Worse, that INFORMATION was not shared with the FBI prior to 9/11 Nor did the CIA NOTIFY ANY GOVERNMENT agencies when Almihdhar and Alhazmi returned to the United States after the al-Qaeda conference
  100. Thus INS did not catch them upon entry into the United States
  101. Shockingly, Almihdhar and Alhazmi were finally placed on the State Department watch list through CIA communication on August 23, 2001 The CIA cable warned that two ‘BPn LHKLn rLlHtLK PnKPvPKuHls’ OHK HlrLHKy entered the United States and that two other suspected terrorists should be barred from entering
  102. Unfortunately Almihdhar and Alhazmi had already obtained new visas by then and had DISAPPEARED in the US
  103. Unfortunately Almihdhar and Alhazmi had already obtained new visas by then and had DISAPPEARED in the US They were part of the group that flew a passenger airliner into the Pentagon.
  104. Similar issues PLAGUED the FBI
  105. FBI Field Agent Colleen Riley complained to FBI Director Robert Mueller that her immediate supervisors discouraged her Minnesota Field Office to search the computer hard drive and belongings of Zacarius Moussaoui (considered to be the 20th terrorist in the hijackings).
  106. Worse, the FBI was NOT ALLOWED to COOPERATE with the CIA nor see the CIA files on Moussaoui
  107. In a separate occurrence, Special Agent Kenneth Williamson sent a memo to FBI superiors in the summer of 2001 “I’m concerned that suspected al-Qaeda members are enrolled in flight schools in Arizona.”
  108. But WPllPHmson’s superiors largely ignored the memo, and failed to pass information on through intelligence channels
  109. Not only did these concerns fall upon deaf ears, neither FBI office was aware of the otOLr’s rLlHtLK JonJLrns KuL to Hn OUTDATED, INEFFECTIVE INFORMATION system Minneapolis Phoenix
  110. ‚TOL FB| has no way to place leads, tips and other potentially useful information in an electronic repository that agents can sLHrJO‛
  111. ‚TOL FB| has no way to place leads, tips and other potentially useful information in an electronic repository that agents can sLHrJO‛ In effect, not only was the information not passed to others at the FBI, it definitely did not make it to the CIA.
  112. DISTRUST
  113. DISTRUST The cultures at the FBI and CIA lead to an additional level of communication ineffectiveness and contributed to the inaction prior to the 9/11 attacks
  114. DISTRUST There are also various institutional constraints, such as organizational bylaws and even federal laws that restrict certain aspects of the sharing of intelligence between the two agencies.
  115. WHY D|DN’T T{E FB| & CIA CHANGE
  116. FROM THE 1993 ATTACK
  117. If implemented would ENTERPRISE 2.0 STRATEGY AND TECHNOLOGY have changed the culture and IT systems at the FBI and CIA and thus prevented the 9/11 attacks?
  118. DRUCKER & E2.0 LESSONS LEARNED LEADERSHIP The Government failed the American People by not establishing a more effective communication system after the 1993 attacks. They also didn’t act to change the negative impact of FBI/CIA culture ORGANIZATION & COMMUNITY The lack of an organized system, cultural issues, legal restraints and an inferior information sharing structure led to the “malfunction in information”. TECHNOLOGY RECOMMENDATIONS MindTouch (Secure Social Intranets), SharePoint, Jive Software, or Atlassian Confluence would have provided a secure information sharing hub between agencies.
  119. WOULD E2.0 HAVE CHANGED 9/11? POSSIBLY Had the proper information sharing system been in place prior to 9/11, the collaborative efforts of the FBI & CIA may have uncovered the plot. Yet deep cultural issues and DRUCKER a lack of overall leadership may have rendered any E2.0 efforts useless A SKEPTICAL MAYBE while E2.0 solutions would have certainly helped and may have allowed the CIA or FBI connect the dots, I am not convinced Aaron the US Government would have adopted Fulkerson a proper E2.0 strategy due to cultural issues Mindtouch
  120. SUMMARY Organizations are going to change
  121. When there is an easy way to COLLABORATE people always will
  122. The key is to provide technology that enables EASIER collaboration
  123. for COMMUNITY INNOVATION AND MANAGEMENT to thrive
  124. So that the technology facilitates social connections with people
  125. which IMPROVES business
  126. and creates NEW customers
  127. and catastrophic mistakes are AVOIDED
  128. We call this ENTERPRISE 2.0
  129. DRUCKER ‚MHnHNLmLnt is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant. This is what organization is all about, and it is the reason that management is the critical, determining factor.‛
  130. Did you like this presentation? THEN VOTE
  131. Did you like this presentation? THEN VOTE HERE
  132. CREDITS & ATTRIBUTION Slide Sources Notes 7-15 http://www.amctv.com/originals/madmen/ 26 http://www.flickr.com/photos/matthew_cameron/2868770311/sizes/l/ 27 http://www.flickr.com/photos/sparkfun/4255272762/sizes/o/ 39 http://www.entertainmentwallpaper.com 96 http://www.flickr.com/photos/batram/3140360731/ 124 - 129 http://www.amctv.com/originals/madmen/ 120, 123, http://www.druckerinstitute.com/ 132 http://www.amazon.com/Colossal-Failure-Common-Sense-Collapse/dp/0307588335 Lehman Brothers case history 46, 74 http://www.thecontenteconomy.com/2010/01/enterprise-20-and-collective_21.html Oscar Berg
  133. MARK FIDELMAN Enterprise 2.0 Enthusiast @markfidelman

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