Early Enterprise 2.0 perspectives (circa 2005) from Stephen Danelutti of netoCiety. Essentially covers the functions of innovation and change in business transformation efforts supported by social software.

1. innovation + change = transformation Stephen Danelutti

3. Strategic Imperatives for the CEO Sources: 1. Strategos Innovation Survey 2004 (N: 557) 2. 2005 Training and Development Survey CIPD, UK (N: 664) 3. The Innovator's Solution: Clayton Christensen & Michael E. Rayno 4. Winning at Change: John P. Kotter Barriers to Innovation Short-term focus/focus on operations-63% Lack of time, resources, or staff-52% Lack of systematic innovation process-33% Leaders expect payoff sooner than realistic-31% Incentives not structured to reward innovation-31% Innovation core corporate value – Yes 66% “ To be best-in-class we need innovation. Can’t be through continuous improvement of existing work. Without innovation, we’ll always be tactical tuners.” Main drivers for investing in leadership development are to successfully manage organisational change ! Organisations undergo some form of major organisational change every 3 years, but 4 in 10 reorganisations fail to achieve objectives. Over 60 percent of all new-product development efforts are scuttled before they ever reach the market. Of the 40 percent that do see the light of day, 40 percent fail to become profitable and are withdrawn from the market. Fewer than 15 of the 100 or more companies I have studied have successfully transformed themselves. 1 1 2 2 4 3

12. Research – Change Four choices of approach open to leaders to engage everyone in change a) Telling the many what has been decided by the few (instructional with little sell) b) Selling to the many what has been decided by the few (tell with a sell and entertainment) hooligans or spectators c) Driving accountability down by implicating people as individuals (giving people the time, space and process to apply the change/decision to their own work, regardless of the degree of delegation) d) Co-creation: judging who will add value if included in front end decision forming and change/strategy development (not to be confused with a laissez faire culture which is poor at closure and ill disciplined. Co-creation takes robust governance and skill) willing collaborators compliant collaborators personally committed reformers outcome outcome Source: McKinsey 2005

18. Thank you! There are costs and risks to a programme of action, but they are far less than the long range risks and costs of comfortable inaction John F. Kennedy The idea that is not dangerous is unworthy of being called an idea at all Elbert Hubbard Stephen Danelutti Mobile: 0044 (0)7786 115 227 E-mail: [email_address] Web site: www.netociety.com Blog: www.trans4mbiz.blogspot.com