How Social Networks are Delivering on the Failed Promise of Knowledge Management


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Organizations are inherently social, and when they enable people to reach out and find each other, connections are formed and discoveries are made that transcend org charts. But Intranet 2.0 isn't a zero-sum game. Open communication challenges traditional lines of authority and may be seen as a threat to those who are invested in existing structures. In fact, the biggest barriers to internal social network adoption are political, not technical. In an economy that demands innovation, resourcefulness and knowledge efficiency, do we really have any choice but to change? This presentation looks at how social networks are transforming the way businesses operate and at the bitter medicine some companies must swallow in order to realize their potential.

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  • Ed Marx told us: We just had an article on social media in this week's Modern Healthcare. I posted it on Yammer for everyone. It's an easy way to communicate with the masses.
  • Tags, keywords and filters enable employees to find and subscribe to information that interests them. Problem solved or innovations created by one team can be discovered by others
  • According to Aaron Strout: When we are preparing to speak to a prospective client, our sales folks will regularly ask if anyone has any experience with or knows anyone at the prospective client’s company. You’d be amazed by where some of our best sources of insights come from — in many cases, from places we never would have thought to look or ask.Ed Marx told us: We learned from our experience with electronic health records that when you push top down you run into a lot of resistance... When we were preparing for budgets, I asked people what they'd do if they were in my shoes. I don't believe in cutting training and travel, so what would you do? I've gotten about 10 or 15 responses and some of them were very good ideas. We use it for collaborative communication.
  • …to create community, fulfillment and centers of expertiseTeale Shapcott of SunCorp says, “Staff have the ability to set up their own groups of interest or practice regardless of the division or department they are working for.  Personally, I have found Yammer to be a valuable tool to easily recruit participants for usability testing, participatory design sessions or card sorting workshops.”
  • By empowering the collective creativity and experience of a large group, innovation emerges from the many connections and informal brainstorms that such an experience provides.Jeff Smith, CIO of Suncorp., told us: A couple of years ago, our banking area was interested in developing a mobile platform. There were people in our insurance business that knew a lot about this and they developed a platform that our competitors would spend millions duplicating. We released that product and now have the leading mobile banking platform in Australia and we didn't pay anything for it.
  • The more potential sources of a solution are brought to bear, the more quickly problems get solved. Time that would have been spent searching for solutions is instead applied to putting them into practice.According to Luis Suarez: If I have got a question I need an answer for, there is a great chance I will go and ask my personal network first, before going elsewhere…instead of hiding yourself away behind your Inbox, where no one can see you and therefore everyone thinks you don’t have anything better to do than answering their queries, how about leaving your hide-out space, go out there in the open, start micro-sharing your knowledge?
  • Teale Shapcott writes: Yammer contributes to building strong working relationships with my colleagues. I prefer to publicly thank other staff who have assisted me in projects through Yammer. My appreciation for their assistance is visible to all staff and much more powerful than a ‘one to one’ thank you email. Deloitte Digital says: People started groups around the whole range of things, both as private groups within a service line, as technical groups and even some social groups. For example, people who ride bikes to work, people who lead busy personal lives and a group of moms who return from maternity leave that are struggling with how to balance their lives. It's become embedded in the way we do things.Jennifer Bull of writes: Social media knows no rank, allowing communications to flow from the top to bottom, bottom to top and side to side. It also knows no physical boundaries and can be accessed around the world…Leadership who use social media to converse with employees are generally well liked and well read by employees. Employees like to know that leadership cares enough to have a venue for conversing with them.
  • Enterprise social networks support a kind of grassroots education in which people learn from each other. While not a replacement for formal training, this ongoing, on-the-job development constantly builds a company’s inventory of skills in a context that is directly relevant to the way the company does business. Cost to the human resources budget: $0.
  • Ed Marx told us: [Yammer]became our primary form of communication. I stopped all e-mail to my staff. Then marketing and communications began to see the power of collaboration. We know the traps we get into with copies and reply to all. I like to communicate and be very transparent. So every day I micro-blog and use Yammer. If I did that with e-mail there would be all these reply-to-alls. It doesn't clog up everyone's e-mail. If they aren't interested in the topic, they can ignore it.
  • Every organization has outstanding people whose contributions received little notice, either because they prefer to stay in the background or they work best by influencing others. Enterprise social networks on earth these contributions by uncovering the conversations that lead to productive outcomes. In doing so, they help address one of the most common reasons for employee turnover: People don't feel recognized or appreciated. Using the social network, managers can more easily identify the rainmakers and ensure that they are rewarded appropriately. Aaron Strout and Joe Cascio write: By analyzing conversations and watching the conversations of employees, senior managers can easily identify who these connectors are and then ensure these employees compensation and titles match their internal value AND start to add additional connectors if too much information is flowing through any one individual.
  • How Social Networks are Delivering on the Failed Promise of Knowledge Management

    1. 1. Intranet 2.0: How Social Networks are Delivering on the Failed Promise of Knowledge Management Paul Gillin, Author The New Influencers Secrets of Social Media Marketing Social Marketing to the Business Customer
    2. 2. Game Changers About About Others Me Profiles and activity streams have changed the nature of our online interactions Passions & Interests Page 2
    3. 3. The Power of 130 The average Facebook member has 130 friends, who each receive notifications of their network’s Facebook activities Page 3
    4. 4. “Companies are implementing social from the inside out[by] deploying intranet-based social systems. The topthree drivers for such deployments are employeecollaboration, efficiency in locating people andresources, and idea generation.” Informationweek, Nov. 17, 2011 Enterprises will spend $3.5 Billion in 2016 in enterprise social software up from $0.5 Billion in 2010. ABI Research Page 4
    5. 5. Inside is Safer How organizations are becoming more social 20% Internal deployment 43% External deployment Mass market social 41% networks Source: 2011 IBM Tech Trends Report Page 5
    6. 6. •Forrester Research expects the enterprise social network market tonearly double from $1.06 billion in 2011 to $1.997 billion 2014.•IDC projects that the global market for social platforms will jump from$630 million in 2011 to $1.86 billion by 2014. Page 6
    7. 7. Business Benefits of Internal Web 2.0Increasing speed of access to knowledge Reducing communications costs Increasing speed of access to internal… Decreasing travel costs Increasing employee satisfaction Reducing operational costs Reducing time to market for…Innovations for new products or services Increasing revenue 0 20 40 60 80 100 McKinsey 2010 survey of 3,249 executives Page 7
    8. 8. Activity Streams• The primary event propagation mechanism for Social Business• Aggregate events from multiple systems/sources• Can be filtered based on source / action required• Events provide“embedded experiences”• Provides a single go-to place to view and interact across multiple places Page 8
    9. 9. Page 9
    10. 10. Doing Away With This Approval Approval Approval Approval Answer Need Page 10
    11. 11. Does anyone speak fluentGerman? Who’s interested in helping create a green energy policy? Page 11
    12. 12. “Web 2.0 also seems to promote significantlymore flexible processes at internally networked organizations: Respondents say that information is shared more readily and less hierarchically, collaboration across organizational silos is more common, andtasks are more often tackled in a project-based fashion.” McKinsey 2010 survey of 3,249 executives Page 12
    13. 13. “Companies that are highly effective communicatorshad 47% higher total returns to shareholders over the last five years compared with firms that are the least effective communicators.” Towers Watson 2009/2010 Communication ROI Study Report Page 13
    14. 14. “Our data show that fully networked enterprises are not only more likely to bemarket leaders or to be gaining market sharebut also use management practices that lead to margins higher than those of companies using the Web in more limited ways.” McKinsey 2010 survey of 3,249 executives Page 14
    15. 15. 1. Preserve Tacit Institutional Knowledge Page 15
    16. 16. 2. Reduce Waste/Duplication Page 16
    17. 17. 3. Collectively Problem-Solve/Crowdsource Page 17
    18. 18. 4. Organize Like-minded People Page 18
    19. 19. 5. Spur Innovation Page 19
    20. 20. 6. Reduce Time To Market Page 20
    21. 21. 7. Improve Employee Engagement Page 21
    22. 22. 8. Support Learning And Development Page 22
    23. 23. 9. Improve Internal Communications (And Reduce E-mail Volume) Page 23
    24. 24. 10. Identify Key Performers Page 24
    25. 25. • Employee asked how to get more paint trays• Others asked how she was selling so many• She shared her idea on how to sell paint trays• The idea generated > $1M in additional revenue IT Insider One division launched a contest seeking 50 unique prototypes that contained 3M technology. In six weeks, the contest generated 45 prototypes from across the U.S. 3M filed seven patents on the work that resulted. Page 25
    26. 26. An internal social network has grown from 2,000 to more than 20,000users in two years. By tackling problems from the bottom up, thecompany has slashed development times and identified waste andduplication. Its first global product, Promptis Ready Mix, was a directresult of cooperation across its worldwide workforce.Participation in employee communities grew from 1,000 people to28,500 in 18 months. The internal network now supports 2300 groupsadministered by employees in four categories: Expert and professional,Personal, Initiative and service and Projects and working teams Page 26
    27. 27. “Roughly half of the internally and externallynetworked enterprises slid back into the category of developing organizations…less than 15 percent…moved up to the next tier…It appears that it is easier to lose the benefits of social technologies than to become a more networked enterprise.” McKinsey, Nov., 2011 Page 28
    28. 28. Trouble in the Ranks How Would You Rate the Success of Your Internal Social Networking Systems? 10% Great 13% 28% Good 25% 33% Average 37% 17% Fair 15% 12% Poor 10% 2010 2011 Source: Informationweek, Jan., 2012 Page 29
    29. 29. Impact of enterprise social network on the organization Improve collaboration between departments Find and share expertise Share best practicesSupport transformation or evolution of culture Create virtual "watercooler" Reduce internal e-mail Speed decision-making Streamline business process Reduce volume of meetings Improve employee retention 0 10 20 30 40 50 60 70 80 90 100 Very little impact Some impact Moderate impact Significant impact Source: Altimeter Group, Feb. 22, 2012 Page 30
    30. 30. Wing and a Prayer? How well do you feel your organization is measuring the impact of enterprise social networking? Very well Somewhat well Somewhat poorly Very poorly Source: Altimeter Group, Feb. 22, 2012 Page 31
    31. 31. Skeptics “Merely having social networking on all the time can divert employee attention.“ Andrea Matwyshyn, professor of legal studies, Wharton "Today, social networking is being thought of as a separate thing. Well see that fade over time, and it will become just part of the way we interact." Kartik Hosanagar, professor of operations and info mgt, Wharton Source: “Is Business-centric Social Networking a Revolution -- or a Ruse?” Knowledge@Wharton Page 32
    32. 32. Thank you! Paul Gillin Site: 508-656-0734 Blog: Twitter: pgillin Free bi-weekly newsletter; sign up at Page 33