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Organisational Principles for 
Digital Collaboration 
David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter 
Enterprise 2.0 SUMMIT | 26 November 2014 
Driving Business Value
Organisational Principles for 
Digital Collaboration
Organisational Principles for 
Digital Collaboration
Organisational Principles for 
Digital Collaboration
Agenda 
• Business is changing: 
– the current landscape 
– the Digital Enterprise Wave 
• Why organisational change? 
• Using Digital & Social tools - How do you create value? 
• How do you establish your Digital Thinking? 
• What do you need beyond Digital capability? 
• Why bother? 
• Who should be involved? 
• What are the key recommendations?
Hang on - can you explain 
this new digital landscape?
January 1995 
"Move bits, not atoms."
Your business model 
is under threat!
The Digital Enterprise Wave 
ride it 
or go under!
Infrastructure 
Connectivity 
Internet 
WiFi 
3G & 4G 
Human Factors 
Entrepreneurship 
Crowdsourcing 
Millennials 
Economic 
Outsourcing 
Offshoring 
Low cost
The Digital Enterprise Wave
The Big Shift 
Cloud Social Mobile
The Digital Enterprise Wave
Emerging Technologies 
Big Data & Analytics 
Internet of Things 
3D Printing 
Artificial Intelligence
The Digital Enterprise Wave
“Business as Usual” Thinking 
Point Social Media Solutions 
Siloed Communities 
Lack of Integration 
Legacy Systems of Record 
Business as Usual
The Digital Enterprise Wave
We need “Digital” Thinking 
Digital and Social inside and out 
Business Model Innovation 
Systems of Engagement 
Design Thinking
McKinsey 7 “S” Model 
Strategy 
Skills 
Structure 
“Shared 
Values” 
Staff 
Hard Systems 
Systems 
Style 
Soft Systems 
 Integrates “hard” and 
“soft” business 
systems in a 
structured way 
 “technology neutral” 
 Includes employee 
engagement 
 Proven approach 
 Especially useful for 
lessons in managing 
major change
The Digital Enterprise Wave
Why organisational change? 
• The evidence is mounting – to make digital 
truly work change is necessary 
• The key is change of Mind-set and Culture 
• I worry about some current thinking on 
organisational structure…. 
• We need “Evolution not Revolution!”
A Team-Based, Flat Lattice Organization 
• Fairness to each other and everyone with whom we come in 
contact 
• Freedom to encourage, help, and allow other associates to grow 
in knowledge, skill, and scope of responsibility 
• The ability to make one's own commitments and keep them 
• Consultation with other associates before undertaking actions that 
could impact the reputation of the company
checks and balances to ensure 
accountability, transparency and honesty
Hierarchy - Wirearchy 
taking responsibility individually and collectively 
rather than relying on traditional hierarchical status 
http://wirearchy.com/what-is-wirearchy/
Organisational Change 
• It’s not about changing the org chart – many 
structures will work 
• It is about mind-set and values: 
– accountability, transparency and honesty 
– checks and balances 
– fairness 
– freedom to encourage, help, collaborate 
– taking responsibility individually and collectively 
– empowering employees
Total Value 
Created 
Bottom line = value creation 
Increase 
Revenue 
Average Sale £ 
Sales Volume 
Reduce Costs 
Churn 
Operating Cost 
• Deeper understanding of customer needs 
• Conversation with customers increases 
attachment to business 
• Increased marketing penetration at lower 
cost 
• Faster lead generation & customer 
onboarding 
• Faster understanding of product and 
customer problems 
• Pro-active customer retention 
• Fast information movement and higher 
levels of collaboration drives efficiency 
• Higher employee engagement drives 
effectiveness 
Close 
link 
Digital Business Value Creation 
Depending on the business, the 
impact of digital transformation 
will vary – but will drive 
significant value
Five distinct 
social collaboration ambitions
Establishing your Digital Thinking 
Strategy 
Skills 
Structure 
“Shared 
Values” 
Staff 
Hard Systems 
Systems 
Style 
Soft Systems 
 Integrates “hard” and 
“soft” business 
systems in a 
structured way 
 “technology neutral” 
 Includes employee 
engagement 
 Proven approach 
 Especially useful for 
lessons in managing 
major change
Strategy 
© Simon Sinek - https://www.startwithwhy.com/
Structure 
• Information flow must be fast and pervasive 
• You must streamline decision making 
• Faster time to market 
• New teams, cross functional teams
• One of the largest bookmakers in the UK 
• 80 year old company undergoing a major culture 
shift 
• Adopting a lean start up model 
• Product teams include people who used to be in 
marketing, IT, product management 
• 4-6 week new product cycles 
• Touch the customer within weeks – used to be 2 
years
Systems 
• Fast reaction time to important information 
• Old processes & practices must be replaced 
(and that’s not easy) 
• New technology, but easy to deploy and use 
• Digital and social at the heart of the business 
process and creating value
Staff 
• Must be on board 
• Supported by management at all levels 
Gallup State of the Global Workplace: 
 Worldwide, actively disengaged employees 
outnumber engaged employees by nearly 2-1
Skills 
• Understand the new policies 
• Know what’s expected of them 
• Know how to operate the new systems
Style 
Digital Taylorism Open, Good for All
Shared Values 
• Go back and find your “why” 
• Ask “what’s in it for me?” at all levels 
• Focus on benefits for all 
• Look beyond shareholder value
Leading Digital
Four Level of Digital Mastery
Digital Mastery by Industry
What is your level of Digital Mastery? 
- generate 9% more revenue 
- create 26% more profit 
- 12% higher market valuation
Who should be involved? 
• Top Management, the C-Suite - essential 
• Engaged employees – essential 
• IT/the CIO – connect to the legacy 
• Learning/proving by doing - essential 
• Good outcomes for all - essential
with 
Winners Of The 2014 Groundswell Awards 
(Business-To-Employee Division) 
Atos "Journey to Collaboration" / Zero emailTM program 
• 76,000 employees now collaborating 
• Sharing knowledge and expertise through 7,500 purpose built 
communities 
• 30% active users posting 10 collaborative notes per week/per 
user 
• Better knowledge sharing leads to faster response times and 
more wins 
• Reducing response time in some cases from 2 days to 45 
minutes 
• Operational efficiency gains by reducing internal e-mail overload 
by an average of 60% 
• Saving an average of 2 hours a day per employee
Key recommendations?
Key recommendations? 
• Revisit your business model 
• Revisit your value proposition 
• Pilot, but in an area where there is 
measurable business benefit 
• Learn and adapt 
• Roll out, bringing everyone with you 
• Ensure everyone shares the benefits
References 
http://en.wikipedia.org/wiki/Nicholas_Negroponte 
http://en.wikipedia.org/wiki/Being_Digital 
http://www.capgemini.com/resources/transform-to-the--power-of-digital 
http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/ 
http://postshift.com/author/lee/ 
http://www.technologytransformation.com/High%20Perfomance%20Projects.htm 
http://www.bonkersworld.net/organizational-charts/ 
http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svg 
http://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-inspiring-as-the-games-it-makes/ 
http://www.gore.com/en_xx/aboutus/culture/ 
http://www.johnlewispartnership.co.uk/about/our-constitution.html 
http://wirearchy.com/what-is-wirearchy/ 
http://blog.medallia.com/customer-experience/ceo-top-pyramid/ 
http://www.ibm.com/smarterplanet/us/en/centerforappliedinsights/article/social_insights.html 
http://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all-culture-hackers/ 
https://www.startwithwhy.com/ 
http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx 
http://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie 
=UTF8&qid=1416926793&sr=1-1&keywords=leading+digital 
http://www.businessmodelgeneration.com/canvas/bmc 
https://strategyzer.com/value-proposition-design 
Not for reading – just for reference
David Terrar 
Agile Elephant | techUK | EuroCloud UK 
p: +44 (0)1727 866309 
m: +44 (0)7715 159423 
e: david@theagileelephant.com 
w: www.theagileelephant.com 
skype: david_terrar 
twitter: http://twittter.com/DT @DT 
linkedin: http://www.linkedin.com/in/davidterrar 
blog: http://theagileelephant.com/blog 
& http://medium.com/@DT 
innovation | digital transformation | value creation | (r)evolution

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Organisational principles for digital collaboration - keynote at Enterprise 2.0 SUMMIT London

  • 1. Organisational Principles for Digital Collaboration David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter Enterprise 2.0 SUMMIT | 26 November 2014 Driving Business Value
  • 2. Organisational Principles for Digital Collaboration
  • 3. Organisational Principles for Digital Collaboration
  • 4. Organisational Principles for Digital Collaboration
  • 5. Agenda • Business is changing: – the current landscape – the Digital Enterprise Wave • Why organisational change? • Using Digital & Social tools - How do you create value? • How do you establish your Digital Thinking? • What do you need beyond Digital capability? • Why bother? • Who should be involved? • What are the key recommendations?
  • 6. Hang on - can you explain this new digital landscape?
  • 7. January 1995 "Move bits, not atoms."
  • 8.
  • 9.
  • 10.
  • 11. Your business model is under threat!
  • 12. The Digital Enterprise Wave ride it or go under!
  • 13. Infrastructure Connectivity Internet WiFi 3G & 4G Human Factors Entrepreneurship Crowdsourcing Millennials Economic Outsourcing Offshoring Low cost
  • 14.
  • 15.
  • 16.
  • 18. The Big Shift Cloud Social Mobile
  • 20. Emerging Technologies Big Data & Analytics Internet of Things 3D Printing Artificial Intelligence
  • 22. “Business as Usual” Thinking Point Social Media Solutions Siloed Communities Lack of Integration Legacy Systems of Record Business as Usual
  • 24. We need “Digital” Thinking Digital and Social inside and out Business Model Innovation Systems of Engagement Design Thinking
  • 25. McKinsey 7 “S” Model Strategy Skills Structure “Shared Values” Staff Hard Systems Systems Style Soft Systems  Integrates “hard” and “soft” business systems in a structured way  “technology neutral”  Includes employee engagement  Proven approach  Especially useful for lessons in managing major change
  • 27. Why organisational change? • The evidence is mounting – to make digital truly work change is necessary • The key is change of Mind-set and Culture • I worry about some current thinking on organisational structure…. • We need “Evolution not Revolution!”
  • 28.
  • 29.
  • 30.
  • 31. A Team-Based, Flat Lattice Organization • Fairness to each other and everyone with whom we come in contact • Freedom to encourage, help, and allow other associates to grow in knowledge, skill, and scope of responsibility • The ability to make one's own commitments and keep them • Consultation with other associates before undertaking actions that could impact the reputation of the company
  • 32. checks and balances to ensure accountability, transparency and honesty
  • 33. Hierarchy - Wirearchy taking responsibility individually and collectively rather than relying on traditional hierarchical status http://wirearchy.com/what-is-wirearchy/
  • 34.
  • 35. Organisational Change • It’s not about changing the org chart – many structures will work • It is about mind-set and values: – accountability, transparency and honesty – checks and balances – fairness – freedom to encourage, help, collaborate – taking responsibility individually and collectively – empowering employees
  • 36. Total Value Created Bottom line = value creation Increase Revenue Average Sale £ Sales Volume Reduce Costs Churn Operating Cost • Deeper understanding of customer needs • Conversation with customers increases attachment to business • Increased marketing penetration at lower cost • Faster lead generation & customer onboarding • Faster understanding of product and customer problems • Pro-active customer retention • Fast information movement and higher levels of collaboration drives efficiency • Higher employee engagement drives effectiveness Close link Digital Business Value Creation Depending on the business, the impact of digital transformation will vary – but will drive significant value
  • 37. Five distinct social collaboration ambitions
  • 38.
  • 39. Establishing your Digital Thinking Strategy Skills Structure “Shared Values” Staff Hard Systems Systems Style Soft Systems  Integrates “hard” and “soft” business systems in a structured way  “technology neutral”  Includes employee engagement  Proven approach  Especially useful for lessons in managing major change
  • 40. Strategy © Simon Sinek - https://www.startwithwhy.com/
  • 41. Structure • Information flow must be fast and pervasive • You must streamline decision making • Faster time to market • New teams, cross functional teams
  • 42. • One of the largest bookmakers in the UK • 80 year old company undergoing a major culture shift • Adopting a lean start up model • Product teams include people who used to be in marketing, IT, product management • 4-6 week new product cycles • Touch the customer within weeks – used to be 2 years
  • 43. Systems • Fast reaction time to important information • Old processes & practices must be replaced (and that’s not easy) • New technology, but easy to deploy and use • Digital and social at the heart of the business process and creating value
  • 44. Staff • Must be on board • Supported by management at all levels Gallup State of the Global Workplace:  Worldwide, actively disengaged employees outnumber engaged employees by nearly 2-1
  • 45. Skills • Understand the new policies • Know what’s expected of them • Know how to operate the new systems
  • 46. Style Digital Taylorism Open, Good for All
  • 47. Shared Values • Go back and find your “why” • Ask “what’s in it for me?” at all levels • Focus on benefits for all • Look beyond shareholder value
  • 48.
  • 50. Four Level of Digital Mastery
  • 51. Digital Mastery by Industry
  • 52. What is your level of Digital Mastery? - generate 9% more revenue - create 26% more profit - 12% higher market valuation
  • 53. Who should be involved? • Top Management, the C-Suite - essential • Engaged employees – essential • IT/the CIO – connect to the legacy • Learning/proving by doing - essential • Good outcomes for all - essential
  • 54. with Winners Of The 2014 Groundswell Awards (Business-To-Employee Division) Atos "Journey to Collaboration" / Zero emailTM program • 76,000 employees now collaborating • Sharing knowledge and expertise through 7,500 purpose built communities • 30% active users posting 10 collaborative notes per week/per user • Better knowledge sharing leads to faster response times and more wins • Reducing response time in some cases from 2 days to 45 minutes • Operational efficiency gains by reducing internal e-mail overload by an average of 60% • Saving an average of 2 hours a day per employee
  • 56.
  • 57.
  • 58. Key recommendations? • Revisit your business model • Revisit your value proposition • Pilot, but in an area where there is measurable business benefit • Learn and adapt • Roll out, bringing everyone with you • Ensure everyone shares the benefits
  • 59. References http://en.wikipedia.org/wiki/Nicholas_Negroponte http://en.wikipedia.org/wiki/Being_Digital http://www.capgemini.com/resources/transform-to-the--power-of-digital http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/ http://postshift.com/author/lee/ http://www.technologytransformation.com/High%20Perfomance%20Projects.htm http://www.bonkersworld.net/organizational-charts/ http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svg http://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-inspiring-as-the-games-it-makes/ http://www.gore.com/en_xx/aboutus/culture/ http://www.johnlewispartnership.co.uk/about/our-constitution.html http://wirearchy.com/what-is-wirearchy/ http://blog.medallia.com/customer-experience/ceo-top-pyramid/ http://www.ibm.com/smarterplanet/us/en/centerforappliedinsights/article/social_insights.html http://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all-culture-hackers/ https://www.startwithwhy.com/ http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx http://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie =UTF8&qid=1416926793&sr=1-1&keywords=leading+digital http://www.businessmodelgeneration.com/canvas/bmc https://strategyzer.com/value-proposition-design Not for reading – just for reference
  • 60. David Terrar Agile Elephant | techUK | EuroCloud UK p: +44 (0)1727 866309 m: +44 (0)7715 159423 e: david@theagileelephant.com w: www.theagileelephant.com skype: david_terrar twitter: http://twittter.com/DT @DT linkedin: http://www.linkedin.com/in/davidterrar blog: http://theagileelephant.com/blog & http://medium.com/@DT innovation | digital transformation | value creation | (r)evolution