A NEW ERA OF

LEADERSHIP

From Hierarchy To Network
                                        PASI MÄENPÄÄ
               Ex...
ALL SERVICES THAT MATTER
ALREADY HAVE SOCIAL FEATURES


                               RATE
                              ...
FINLAND




40%       are on Facebook.

                             Source: Facebakers 5/2010
FINLAND




86%       look for information on the web
            about products and services.
                           ...
FINLAND




   5               OUT
                   OF           10
     top websites are social media services.

      ...
FINLAND




19
20
(except nordea.fi)


                      OUT
                      OF           20
      top websites i...
SOCIAL MEDIA = DIGITAL MEDIA
DIGITAL MEDIA




PHYSICAL MEDIA
LEISURE & FREE TIME
CHANGES OUR


CULTURE
MEETINGS   SERVICE   SALES   MANAGEMENT    COLLABORATION
MANAGEMENT IS OFTEN DEFINED AS

               COMMUNICATION




COORDINATION                   RESPONSIBILITY
COLLABORATION IS ALSO
               COMMUNICATION




COORDINATION                   RESPONSIBILITY
COMMUNICATION     ✖   COORDINATION     ✖   RESPONSIBILITY




     ALL EFFECTIVE MANAGEMENT & COLLABORATION TODAY IS

    ...
CLOSED INNOVATION → OPEN INNOVATION
                    Henry Chesbrough



            OUTSOURCING → CROWDSOURCING
      ...
?   HOW DID
    WE GET
    HERE
1   EFFICIENCY
BACK TO THE INDUSTRIAL REVOLUTION
ABSOLUTE CENTRALIZATION

     VLADIMIR LENIN
    Soviet Union, 1917-1924




     Let’s run the country
     like a big fa...
CENTRALLY PLANNED ECONOMY
TOP-DOWN DECISIONS ABOUT RESOURCES
ABSOLUTE DECENTRALIZATION

        ADAM SMITH
     Wealth of Nations, 1776




     From mercantilism to
     free market ...
THREE FORCES
                   Rational
                 Self-Interest




         Competition    Supply and
           ...
Theory of transaction costs

       RONAL COASE
  The Nature Of The Firm, 1937




              Vs.

   CD-Rom           ...
Internet reduces
                                     DECENTRALIZATION
CENTRALIZATION   transaction costs


              ...
Infrastructure
Infrastructure: Foundation
          PaaS
Storage: Information
        Dropbox
                  S3
Computing: Automation

Virtual Desktop




             Infrastructure
Workforce: Collaboration

    Meeting Center
Ideas: Innovation
... ... ...
Sales, Marketing, CS: Customer interactions

 Viihde
CLOUD COMPANY

                    ... ... ...
Sales, Marketing, CS: Customer interactions                               I...
2   PREDICTABILITY
F=ma




IF WE HAVE GOOD ENOUGH
MEASURING INSTRUMENTS,
WE CAN UNDERSTAND THE
LOGIC OF NATURE.
Isaac Newton
Plan


                        Do
  Act      PDCA


            Check


MANAGEMENT IS PREDICTION.
        W. Edwards Deming
MEASUREMENT AND PREDICTABILITY.




THIS IS WHAT COMPANIES STRIVE FOR.
THE N-BODY PROBLEM

   HENRI POINCARÉ
 Mathematician (1854-1912)
INTERACTION
     ENERGY                      KINETIC
       (UNPREDICTABLE)
                              ENERGY
         ...
THERE IS ALSO INTERACTION
                       ENERGY BETWEEN
PEOPLE AND ORGANIZATIONS.
SHOULD WE UPDATE OUR
MANAGEMENT WORLD VIEW?
COMMUNICATION PARADIGM SHIFT
PAST                    TODAY
• Point-to-point        • Context based
• Linear               ...
FOLLOW LOGIC

  MANAGERS CHOOSE
  THEIR FOLLOWERS.


NET GENERATION CHOOSES
    WHO TO FOLLOW.



BARACK OBAMA
4 MILLION F...
FOLLOW LOGIC

  MANAGERS CHOOSE
  THEIR FOLLOWERS.


NET GENERATION CHOOSES
    WHO TO FOLLOW.



   TONY HSIEH
1.7 MILLIO...
DO WE ALLOW MISTAKES AND CAN
WE LEARN FROM ALL PRACTICES?
“ PLANS ARE NOTHING; PLANNING IS EVERYTHING. ”
               – Dwight D. Eisenhower
DO WE INCLUDE ITERATION IN
ALL OUR PLANS AND ACTIONS?
FOR MOST COMPANIES LEARNING IS A SEPARATE
 ACTIVITY CARRIED OUT BY HR DEPARTMENTS.
ARE LEARNING AND RESPONSIVENESS
 INHERENT IN ALL OUR PROCESSES?
MANAGEMENT IN AN
 UNCERTAIN ENVIRONMENT
            =
 ENABLING & EMPOWERING
THE INTERACTION OF PEOPLE.
3   RESPONSIBILITY
IN ALL PHYSICAL MEETINGS
  THERE ARE MORE OR LESS
THE WRONG PEOPLE PRESENT.
IN DIGITAL WORKING ENVIRONMENTS
  THERE COULD BE MORE OR LESS
    THE RIGHT PEOPLE PRESENT.
DO WE ENABLE
   EMERGENT COMMUNICATION PRACTICES?


Meeting Center         TelePresence
100 000
CANCELLED FLIGHTS




10 MILLION
STRANDED TRAVELLERS
ALL EFFECTIVE TEAMS TODAY ARE DIGITAL & DISTRIBUTED.
   VIRTUAL TEAMS ARE AS REAL AS PHYSICAL TEAMS.




                 ...
IN ONLINE GAMES
                                                   RESPONSIBILITY IS
                                     ...
WHAT NET GENERATION IS SAYING IS THAT
WORK TODAY IS A BADLY DESIGNED GAME.
INTRODUCTION OF
                        GAME ELEMENTS




2009                                     2010   Ref: Alexa.com

...
STATS   BADGES




        LEADERBOARD
WORK IS A COLLABORATIVE AND COMPETITIVE GAME.
WHAT MATTERS IS HOW THE NETWORK
       RESPONDS TO INDIVIDUAL ACTIONS.




                    Measure:
INTERACTION ENERGY...
WORK TOMORROW IS
DIGITALLY DISTRIBUTED

            EFFICIENT COORDINATION


HIGH QUALITY COMMUNICATION

           WIDE T...
FOLLOW ME.
               From Hierarchy To Network




Designed by:
                                             PASI MÄE...
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A New Era of Leadership - From Hierarchy to Network

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How social media and digital environments are changing management, collaboration and organizations?

A presentation by: Pasi Mäenpää / Elisa at Elisa ICT Forum 2010, Helsinki, Finland.
Presentation consultation and background research: Esko Kilpi & Teemu Arina / dicole.com
Presentation Design: Mikko Kaipio & Markus Koljonen / Dicole.com

See http://www.elisa.com/en/ and http://www.dicole.com for more information.

The presentation also comes with a visually stunning video. Watch and share: "Cloud Company - Change Happens":
http://bit.ly/ChangeHappens

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A New Era of Leadership - From Hierarchy to Network

  1. A NEW ERA OF LEADERSHIP From Hierarchy To Network PASI MÄENPÄÄ Executive Vice President, Corporate Customers
  2. ALL SERVICES THAT MATTER ALREADY HAVE SOCIAL FEATURES RATE VOTE COMMENT SHARE ON
  3. FINLAND 40% are on Facebook. Source: Facebakers 5/2010
  4. FINLAND 86% look for information on the web about products and services. Source: Tilastokeskus
  5. FINLAND 5 OUT OF 10 top websites are social media services. Source: Alexa
  6. FINLAND 19 20 (except nordea.fi) OUT OF 20 top websites include social media features. Source: Alexa
  7. SOCIAL MEDIA = DIGITAL MEDIA
  8. DIGITAL MEDIA PHYSICAL MEDIA
  9. LEISURE & FREE TIME CHANGES OUR CULTURE MEETINGS SERVICE SALES MANAGEMENT COLLABORATION
  10. MANAGEMENT IS OFTEN DEFINED AS COMMUNICATION COORDINATION RESPONSIBILITY
  11. COLLABORATION IS ALSO COMMUNICATION COORDINATION RESPONSIBILITY
  12. COMMUNICATION ✖ COORDINATION ✖ RESPONSIBILITY ALL EFFECTIVE MANAGEMENT & COLLABORATION TODAY IS DIGITALLY DISTRIBUTED
  13. CLOSED INNOVATION → OPEN INNOVATION Henry Chesbrough OUTSOURCING → CROWDSOURCING Jeff Howe MASS PRODUCTION → MASS COLLABORATION Clay Shirky CENTRALIZED PRODUCTION → COMMONS-BASED PEER-PRODUCTION Yochai Benkler
  14. ? HOW DID WE GET HERE
  15. 1 EFFICIENCY
  16. BACK TO THE INDUSTRIAL REVOLUTION
  17. ABSOLUTE CENTRALIZATION VLADIMIR LENIN Soviet Union, 1917-1924 Let’s run the country like a big factory!
  18. CENTRALLY PLANNED ECONOMY TOP-DOWN DECISIONS ABOUT RESOURCES
  19. ABSOLUTE DECENTRALIZATION ADAM SMITH Wealth of Nations, 1776 From mercantilism to free market economy!
  20. THREE FORCES Rational Self-Interest Competition Supply and Demand CREATES ECONOMIC BALANCE
  21. Theory of transaction costs RONAL COASE The Nature Of The Firm, 1937 Vs. CD-Rom Spotify
  22. Internet reduces DECENTRALIZATION CENTRALIZATION transaction costs CLOUD COMPANY
  23. Infrastructure Infrastructure: Foundation PaaS
  24. Storage: Information Dropbox S3
  25. Computing: Automation Virtual Desktop Infrastructure
  26. Workforce: Collaboration Meeting Center
  27. Ideas: Innovation
  28. ... ... ... Sales, Marketing, CS: Customer interactions Viihde
  29. CLOUD COMPANY ... ... ... Sales, Marketing, CS: Customer interactions Ideas: Innovation Viihde Workforce: Collaboration Computing: Automation Virtual Desktop Meeting Center Storage: Information Infrastructure S3 Infrastructure Dropbox PaaS
  30. 2 PREDICTABILITY
  31. F=ma IF WE HAVE GOOD ENOUGH MEASURING INSTRUMENTS, WE CAN UNDERSTAND THE LOGIC OF NATURE. Isaac Newton
  32. Plan Do Act PDCA Check MANAGEMENT IS PREDICTION. W. Edwards Deming
  33. MEASUREMENT AND PREDICTABILITY. THIS IS WHAT COMPANIES STRIVE FOR.
  34. THE N-BODY PROBLEM HENRI POINCARÉ Mathematician (1854-1912)
  35. INTERACTION ENERGY KINETIC (UNPREDICTABLE) ENERGY (PREDICTABLE)
  36. THERE IS ALSO INTERACTION ENERGY BETWEEN PEOPLE AND ORGANIZATIONS.
  37. SHOULD WE UPDATE OUR MANAGEMENT WORLD VIEW?
  38. COMMUNICATION PARADIGM SHIFT PAST TODAY • Point-to-point • Context based • Linear • Temporal • Pre-defined • Emergent • Prediction • Responsiveness LINEAR WORK CREATIVE WORK WHAT IS THE SEQUENCE? WHAT IS THE CONTEXT?
  39. FOLLOW LOGIC MANAGERS CHOOSE THEIR FOLLOWERS. NET GENERATION CHOOSES WHO TO FOLLOW. BARACK OBAMA 4 MILLION FOLLOWERS
  40. FOLLOW LOGIC MANAGERS CHOOSE THEIR FOLLOWERS. NET GENERATION CHOOSES WHO TO FOLLOW. TONY HSIEH 1.7 MILLION FOLLOWERS
  41. DO WE ALLOW MISTAKES AND CAN WE LEARN FROM ALL PRACTICES?
  42. “ PLANS ARE NOTHING; PLANNING IS EVERYTHING. ” – Dwight D. Eisenhower
  43. DO WE INCLUDE ITERATION IN ALL OUR PLANS AND ACTIONS?
  44. FOR MOST COMPANIES LEARNING IS A SEPARATE ACTIVITY CARRIED OUT BY HR DEPARTMENTS.
  45. ARE LEARNING AND RESPONSIVENESS INHERENT IN ALL OUR PROCESSES?
  46. MANAGEMENT IN AN UNCERTAIN ENVIRONMENT = ENABLING & EMPOWERING THE INTERACTION OF PEOPLE.
  47. 3 RESPONSIBILITY
  48. IN ALL PHYSICAL MEETINGS THERE ARE MORE OR LESS THE WRONG PEOPLE PRESENT.
  49. IN DIGITAL WORKING ENVIRONMENTS THERE COULD BE MORE OR LESS THE RIGHT PEOPLE PRESENT.
  50. DO WE ENABLE EMERGENT COMMUNICATION PRACTICES? Meeting Center TelePresence
  51. 100 000 CANCELLED FLIGHTS 10 MILLION STRANDED TRAVELLERS
  52. ALL EFFECTIVE TEAMS TODAY ARE DIGITAL & DISTRIBUTED. VIRTUAL TEAMS ARE AS REAL AS PHYSICAL TEAMS. Image: Halo Wars, Microsoft
  53. IN ONLINE GAMES RESPONSIBILITY IS TAKEN, NOT GIVEN. • 10 minutes • 2 hours • for today • ... Image: World of Warcraft, Blizzard Entertainment
  54. WHAT NET GENERATION IS SAYING IS THAT WORK TODAY IS A BADLY DESIGNED GAME.
  55. INTRODUCTION OF GAME ELEMENTS 2009 2010 Ref: Alexa.com LOCATION-BASED SERVICES COME AND GO. UNTIL THE GAME GOT PROPERLY DESIGNED.
  56. STATS BADGES LEADERBOARD
  57. WORK IS A COLLABORATIVE AND COMPETITIVE GAME.
  58. WHAT MATTERS IS HOW THE NETWORK RESPONDS TO INDIVIDUAL ACTIONS. Measure: INTERACTION ENERGY IN ADDITION TO INDIVIDUAL OUTPUT
  59. WORK TOMORROW IS DIGITALLY DISTRIBUTED EFFICIENT COORDINATION HIGH QUALITY COMMUNICATION WIDE TAKING OF RESPONSIBILITY
  60. FOLLOW ME. From Hierarchy To Network Designed by: PASI MÄENPÄÄ Executive Vice President, Corporate Customers

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