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What if Peter Drucker Taught Enterprise 2.0 Strategy?
 

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 ...

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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  • Just cam across these slides. Relevant today as it was two years ago. Keep up the good work.

    @bradholt_IT
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  • EccoLaSlides - You're overthinking the purpose of the presentation. I might add that the mistakes were all made by men. I don't live by politically correct, gender equality rules, nor do I try to rewrite history with them. I stick to the facts.

    I do agree women are underrepresented, but only in the mistake department.
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  • All the way through you use pics from the visually stylish but historically sexist period of Mad Men. Then on slide 131 where you celebrate today's modern era you have 98% pictures of men. Are you pandering? Blinded by the gender inequity of the tech world? Hoping to draw international attention from the parts of the world where women are still largely marginalized from business leadership? Or just being thoughtless?

    The intellectual content of this presentation was very strong. But visual presentation also communicates content, and your thoughtlessness is offensive. Pretty ironic for a social communication message.....
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  • Great pres. Glad you didn't mix in creativity, and stuck with innovation as Drucker said. Business innovation is a big winner from social business, but rarely implemented as it seems unfashionable compared to 'creativity'.

    Walter @adamson
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  • Thanks Ralf. I have another presentation forthcoming on business leader that like Drucker is very inspirational. This one will be on Social Business.
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    What if Peter Drucker Taught Enterprise 2.0 Strategy? What if Peter Drucker Taught Enterprise 2.0 Strategy? Presentation Transcript

    • WHAT IF PETER DRUCKER TAUGHT ENTERPRISE 2.0 STRATEGY
    • What LESSONS would he draw?
    • How would he have explained ENTERPRISE 2.0 to solve toKHy’s IusPnLss problems?
    • LLt’s EXPLORE a proposed Curriculum
    • INTRODUCTION About successful organizations Drucker stressed three things MANAGEMENT INNOVATION COMMUNITY
    • Drucker thought a MANAGER’S task is to make the strengths of people effective and their weaknesses irrelevant
    • Drucker believed that rLlyPnN on yLstLrKHy’s successes are far more risky than constantly INNOVATING
    • Drucker considered a business an economic organ that was equally a COMMUNITY
    • As for technology he deemed it an extension of the KNOWLEDGE WORKER
    • 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.
    • NEITHER TECHNOLOGY OR PEOPLE determines the other, but each shapes the other
    • So that the result is a more EFFECTIVE CORPORATION
    • Work has always been SOCIAL
    • But TODAY’S Enterprise 1.0 knowledge worker is SEPARATED from his colleagues and customers
    • Blocked by voice mail, email and noise
    • Blocked by voice mail, email and noise So we’re less social
    • Blocked by voice mail, email and noise So we’re less social Less of a community
    • Blocked by voice mail, email and noise So we’re less social Less of a community Less effective
    • But ENTERPRISE 2.0 technologies and strategies can bring community back to work
    • STILL YET
    • ENTERPRISE 2.0 is not a substitute for poor LEADERSHIP
    • ‚Life can only be understood backwards. But then one forgets the other principle: that it must be lived forwards.‛
    • So lLt’s look IHJkwHrK HnK sLL WHATWOULD DRUCKERDO
    • LEHMAN BROTHERS THE 31st FLOOR
    • Before top LEHMAN EXECUTIVES arrived at Headquarters in NYC they would call the front desk
    • The front desk would get the security guard to HOLD A PRIVATE ELEVATOR
    • The private elevator was programmed to go straight to the 31ST FLOOR
    • Why did they spend an estimated $100,000 to create this process?
    • 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
    • Worse, most Lehman employees NEVER saw OR heard from their top Executives
    • In fact the CEO was nicknamed the INVISIBLE MAN
    • HERE HE |S… RICHARD FULD
    • So why did Lehman Executives AVOIDTHEIR OWNEMPLOYEES
    • SomL JlHPm tOLy KPKn’t wHnt to IL EXPOSED Mor Hll tOLy KPKn’t unKLrstHnK
    • Like the sub-prime mortgage CRISIS
    • Made worse by their ISOLATION
    • And alarmingly, the best at Lehman were SILENCED as they issued WARNINGS
    • Execs KPKn’t wHnt to OLHr TRUTH THE
    • Later, banks refused to do business with Lehman because of its COMPLEX & OPAQUE methods of trading
    • Soon, investors lost CONFIDENCE And the stocked plunged
    • Soon, investors lost CONFIDENCE And the stocked plunged -95%
    • THEN BANKRUPTCY
    • But if implemented, would ENTERPRISE 2.0 STRATEGY AND TECHNOLOGY have saved Lehman?
    • 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.
    • 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.
    • GENERAL MOTORS The Aztek – ‚|t looks tOL wHy MontLzumH’s rLvLnNL MLLls.‛
    • The Original AZTEK concept car wHsn’t tOHt IHK
    • So HOW did it end up like this?
    • In fact, the concept car received mostly POSITIVE feedback =
    • So good in fact that GM decided to PRODUCE the vehicle
    • SALES anticipation was high GM ANNUAL SALES FORECAST 75,000 PER YEAR
    • 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
    • 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
    • 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
    • WHAT HAPPENED
    • 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.
    • Then manufacturing boss Don Hackworth & team ordered the design to be DELIBERATELY HARDENED WEIRD FRONT SQUARE BODY END a tall hatchback PLASTIC CLAD SIDING
    • AS A RESULT
    • The Aztek is declared a FAILURE
    • The Aztek is declared a FAILURE SomL JHllLK Pt tOL ‚The AMC PACER of tOL 21st JLntury.‛
    • ‚WL’K MPrL tOL Nuy wOo GREENLIGHTED the Aztek if we could find anyone willing to Bob Lutz HKmPt Pt.‛ GM Product Boss
    • Shortly thereafter, and ‚JoPnJPKLntHlly‛ Manufacturing Boss Don Hackworth announced his retirement after 38 years with GM
    • So what went WRONG?
    • No one noticed the LEMON
    • BUT WHY
    • BUT WHY 3 REASONS
    • 1 INTERNAL MARKET RESEARCH went unheeded
    • 1 INTERNAL MARKET RESEARCH went unheeded 2 THE CONCEPT CAR was changed to a Saccharine adaptation of the original
    • 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
    • But could ENTERPRISE 2.0 STRATEGY and TECHNOLOGY have saved the Aztek or caused it not to be built?
    • 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.
    • 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
    • September 11 Spooks, Suits & Terror
    • The Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI) have been at WAR for decades
    • The reasons behind this war are due to culture, charter, & INEFFECTIVE communication
    • 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
    • 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.
    • On Feb 26th, 1993 an explosive devise was planted and DETONATED on the second level of the World Trade Center parking garage
    • As a result People were killed
    • were injured
    • 50 thousand EVACUATED
    • 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
    • ‚ 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
    • 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.
    • ‚| want coordinated law enforcement and interdiction LMMorts… tOHt mHkL Senator sLnsL…HnK rPNOt Orrin Hatch now, tOLy’rL not‛
    • But the rivalry lead to other failures in COMMUNICATION
    • And all of these examples point to a pattern of MISCOMMUNICATION between the FBI and CIA due to mistrust.
    • Unfortunately, these COMMUNICATION LHpsLs wLrL not MPxLK…
    • Unfortunately, these COMMUNICATION LHpsLs wLrL not MPxLK… Which led to DEVASTATING CONSEQUENCES
    • W{Y D|DN’T |T ?
    • 9/11 TERROR REDUX
    • "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
    • Communication between the FBI and CIA in the months leading up to 9/11 revealed several instances of COMMUNICATION FAILURES
    • If the two agencies had been effectively sharing intelligence the attacks MAY HAVE BEEN PREVENTED
    • "In terms of whether or not the FBI and the CIA were COMMUNICATING properly, I think it is clear that they weren't"
    • 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.
    • But an unnamed CIA officer was quoted as saying ‚No onL pPJkLK up on tOHt‛
    • Worse, that INFORMATION was not shared with the FBI prior to 9/11
    • 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
    • Thus INS did not catch them upon entry into the United States
    • 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
    • Unfortunately Almihdhar and Alhazmi had already obtained new visas by then and had DISAPPEARED in the US
    • 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.
    • Similar issues PLAGUED the FBI
    • 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).
    • Worse, the FBI was NOT ALLOWED to COOPERATE with the CIA nor see the CIA files on Moussaoui
    • 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.”
    • But WPllPHmson’s superiors largely ignored the memo, and failed to pass information on through intelligence channels
    • 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
    • ‚TOL FB| has no way to place leads, tips and other potentially useful information in an electronic repository that agents can sLHrJO‛
    • ‚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.
    • DISTRUST
    • 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
    • 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.
    • WHY D|DN’T T{E FB| & CIA CHANGE
    • FROM THE 1993 ATTACK
    • 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?
    • 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.
    • 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
    • SUMMARY Organizations are going to change
    • When there is an easy way to COLLABORATE people always will
    • The key is to provide technology that enables EASIER collaboration
    • for COMMUNITY INNOVATION AND MANAGEMENT to thrive
    • So that the technology facilitates social connections with people
    • which IMPROVES business
    • and creates NEW customers
    • and catastrophic mistakes are AVOIDED
    • We call this ENTERPRISE 2.0
    • 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.‛
    • Did you like this presentation? THEN VOTE
    • Did you like this presentation? THEN VOTE HERE
    • 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
    • MARK FIDELMAN Enterprise 2.0 Enthusiast @markfidelman