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A NEW ERA OF

LEADERSHIP

From Hierarchy To Network
                                        PASI MÄENPÄÄ
               Executive Vice President, Corporate Customers
ALL SERVICES THAT MATTER
ALREADY HAVE SOCIAL FEATURES


                               RATE
                               VOTE
                               COMMENT
                               SHARE ON
FINLAND




40%       are on Facebook.

                             Source: Facebakers 5/2010
FINLAND




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




   5               OUT
                   OF           10
     top websites are social media services.

                                               Source: Alexa
FINLAND




19
20
(except nordea.fi)


                      OUT
                      OF           20
      top websites include social media features.


                                                    Source: Alexa
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

    DIGITALLY DISTRIBUTED
CLOSED INNOVATION → OPEN INNOVATION
                    Henry Chesbrough



            OUTSOURCING → CROWDSOURCING
                       Jeff Howe



        MASS PRODUCTION → MASS COLLABORATION
                       Clay Shirky



CENTRALIZED PRODUCTION → COMMONS-BASED PEER-PRODUCTION
                     Yochai Benkler
?   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 factory!
CENTRALLY PLANNED ECONOMY
TOP-DOWN DECISIONS ABOUT RESOURCES
ABSOLUTE DECENTRALIZATION

        ADAM SMITH
     Wealth of Nations, 1776




     From mercantilism to
     free market economy!
THREE FORCES
                   Rational
                 Self-Interest




         Competition    Supply and
                         Demand



          CREATES ECONOMIC BALANCE
Theory of transaction costs

       RONAL COASE
  The Nature Of The Firm, 1937




              Vs.

   CD-Rom            Spotify
Internet reduces
                                     DECENTRALIZATION
CENTRALIZATION   transaction costs


                     CLOUD
                    COMPANY
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                               Ideas: Innovation
     Viihde




              Workforce: Collaboration                  Computing: Automation

                                                        Virtual Desktop
                Meeting Center




                                 Storage: Information
                                                             Infrastructure
                                                   S3             Infrastructure
                                         Dropbox
                                                                             PaaS
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
                         (PREDICTABLE)
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                • Temporal
• Pre-defined            • Emergent
• Prediction            • Responsiveness


LINEAR WORK             CREATIVE WORK
WHAT IS THE SEQUENCE?   WHAT IS THE CONTEXT?
FOLLOW LOGIC

  MANAGERS CHOOSE
  THEIR FOLLOWERS.


NET GENERATION CHOOSES
    WHO TO FOLLOW.



BARACK OBAMA
4 MILLION FOLLOWERS
FOLLOW LOGIC

  MANAGERS CHOOSE
  THEIR FOLLOWERS.


NET GENERATION CHOOSES
    WHO TO FOLLOW.



   TONY HSIEH
1.7 MILLION FOLLOWERS
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.




                                       Image: Halo Wars, Microsoft
IN ONLINE GAMES
                                                   RESPONSIBILITY IS
                                                   TAKEN, NOT GIVEN.
                                                   •   10 minutes
                                                   •   2 hours
                                                   •   for today
                                                   •   ...




Image: World of Warcraft, Blizzard Entertainment
WHAT NET GENERATION IS SAYING IS THAT
WORK TODAY IS A BADLY DESIGNED GAME.
INTRODUCTION OF
                        GAME ELEMENTS




2009                                     2010   Ref: Alexa.com




       LOCATION-BASED SERVICES COME AND GO.
       UNTIL THE GAME GOT PROPERLY DESIGNED.
STATS   BADGES




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




                    Measure:
INTERACTION ENERGY IN ADDITION TO INDIVIDUAL OUTPUT
WORK TOMORROW IS
DIGITALLY DISTRIBUTED

            EFFICIENT COORDINATION


HIGH QUALITY COMMUNICATION

           WIDE TAKING OF RESPONSIBILITY
FOLLOW ME.
               From Hierarchy To Network




Designed by:
                                             PASI MÄENPÄÄ
                    Executive Vice President, Corporate Customers

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