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

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