I spent half a day recently talking about Enterprise 2.0 with a group of senior human resources managers from very large organizations. I took away two broad impressions from the session, of which one was unanticipated and encouraging while the other was less surprising and less optimistic.
First, the good news: these executives were sincerely enthusiastic about E2.0, more so than I expected them to be. After many years of teaching senior managers, one thing I’ve noticed is that when confronted with a new phenomenon many of them respond by immediately and reflexively engaging in risk analysis and mitigation. This does not mean that they’re unimaginative pessimists, or that climbing the corporate ladder has drummed all the joy and sense of possibility out of them. It simply means that part of job is to anticipate negative outcomes within their areas of responsibility and take reasonable steps to prevent them from occurring.
IT executives see all the bad things computers can do, and all the bad things that can be done to them, and get paid in part to make sure these things don’t happen. When I talk with CIOs I’m always struck by how quickly they focus on the security concerns related to E2.0, and how many seem to feel that the benefits won’t be worth the risks.
HR executives see all the bad things people can do, so I was expecting them to have a similarly cautious reaction to E2.0 (which is a concept at the intersection of people and computers). Instead, I found the group to be truly excited about the possibilities offered by emergent social software platforms. I got the strong impression that for these people phrases like ‘engaging the workforce’ and ‘our people are our most valuable asset’ are not corporate boilerplate; they are instead words that guide the work of HR leaders.
I asked the group to talk about the risks associated with E2.0, and they quickly brought up the concern of sensitive information jumping over the firewall. Then they stopped, and waited politely for me to move on to the next topic. Instead, I pressed them to think harder, and to imagine employees in their companies using the new platforms to harass coworkers, post hate speech or porn, rant about their bosses, etc. And the response I heard back was essentially "We suppose those things could happen, and to some extent they probably will, but we’re not that concerned about them." This group of HR executives, in other words, seemed very comfortable trusting their companies’ employees to do the right thing with E2.0 tools.
One of the participants related a telling anecdote. Her company employs a lot of young people, and became concerned a while back how the company was being discussed and represented in their blogs, MySpace pages, Facebook profiles, etc. So she and some colleagues decided to go look at all these environments. She learned that a lot of the young employees mentioned their company as part of their digital identity, and that they virtually always did so in appropriate ways. She said that the worst thing she found, after a lot of looking around, was a photo of a training session in which account numbers were visible on a blackboard. It turned out that they were dummy account numbers and that the person who posted the photo, when made aware of the concern, immediately apologized and took it down.
I’m still not quite sure why the people people were more optimistic about E2.0 than the computer people have been. I suspect it has something to do with the fact that employees can learn over time and evolve their behavior, while computers can’t. As a result, the workforce needs less constant babysitting and can be trusted much more than the IT infrastructure.
The pessimistic-yet-expected conclusion from the session is that many large organizations are not yet ready to embrace the deep lateralization that comes with Web 2.0 and Enterprise 2.0. Lateralization here means letting parties interact, communicate, and share information directly with each other without a lot of built-in filtering or moderation. The HR executives uniformly felt that their companies would not allow their websites to include a ‘community’ section where customers could hold discussions, post issues, and help each other find solutions. "Our lawyers / compliance officers / CEO would never allow it" was the common conclusion. When we brought up the fact that the same customers are surely interacting with each other somewhere on the Internet the imagined retort from the lawyers / compliance officers / CEO was "Fine. But at least they’re not doing in within our domain name, so we can’t be perceived as giving tacit or explicit acknowledgment of the problems being discussed."
There’s a lot of evidence that community forums cut costs, save time, and increase customer satisfaction. But the deeply conservative attitude toward lateralization I wrote about a while back still seems to predominate. The question I wasn’t astute enough to ask the HR executives was "Do your companies have differing attitudes toward external vs. internal lateralization? You say it wouldn’t fly to allow customers to talk directly with each other on the corporate Web site. Will it fly to let employees do the same on the corporate Intranet?"
So let’s throw this question open. Please leave a comment and tell us what you think: are the companies you know well more comfortable with lateralization on the Intranet than on the public Web site? If so, why do you think this is? Or are they equally comfortable / uncomfortable with both? Finally, what will it take to increase corporate comfort at both levels, and to accelerate Enterprise 2.0?
{ 14 comments… read them below or add one }
Q: What will it take to increase corporate comfort at both levels, and to accelerate Enterprise 2.0?
A: A change of generations in top management?
We have had some early adopters use our software to power their intranet. Interestingly, I can think of one case in particular where the entire initiative was originated by the CEO and then handed to the VP of HR to run. This was a non-tech company with a very open culture and felt like E2.0 was about “people” and there for should be enabled by their people department.
The lateralization question does have a strong connection to company culture but I think the big impasse is that most executives don’t know what to picture as the final result (or have a plan on how to get there). Moving from communication to collaboration is something that needs to be demystified. My guess is that 2008 will go a long way to helping draft that map for companies so it’s less nebulous.
Moving from a document-centric security/control model to a people-centric, empowered workflow model is a big paradigm shift that will require a clear cross-organizational plan.
I guess it depends on your business model, and the cost benefit ratio. Lateralization on the public website has several risks and might not even work for B2B companies with small number of customers. It´s a scenario where the benefit is unclear, while the risks are very clear. IMHO there´s a sinergy that only comes with big numbers, and I see it working mostly for B2C enterprises.
On the other hand intranet lateralization is a more controlled environment, and the benefits are more clear and easier to sell to higher management, thus a better ratio.
It’s always to throw out Red Herrings to NOT try something, than to actually experiment and find out what the positive outcomes might be. This is the same sort of issue I’ve run into when I find people completely focused on cost reductions vs. revenue generation.
You can only cut so much before there’s nothing left.
Everything in moderation, including moderation!
Kudos to the HR people who get the fact that you can’t avoid all bad behavior, but you can frame and react quickly when something does come up.
I thought this was such an important article that I commented on it extensively on my blog post today. Rather than go on far longer than etiquette allows, I hope you might get an opportunity to check it out at http://www.leadersintheknow.info.
Again, a very insightful post.
You ask: “Are the companies you know well more comfortable with lateralization on the Intranet than on the public Web site?”
I can speak for my own company and companies for which I have worked in the past, namely Plumtree Software (now part of BEA Systems, a big proponent of enterprise social computing). I can also speak for a large government site which I’ve been helping architect and build for the better part of the past five years.
The answer is a unilateral yes: executives and government policy-makers are more comfortable allowing people to engage in lateralization through social software either 1) behind the firewall or 2) in online communities that are restricted to employees/gov’t personnel (despite being part of the internet cloud for easy accessibility).
And: “If so, why do you think this is?”
I’m reminded of a truism used against gun control: “guns don’t kill people; people kill people.” While the statement is true, it has a huge flaw in that it’s a lot easier to slaughter tens — if not hundreds — of people with an automatic weapon than it is with a handgun, a knife or a sharp stick.
The same can be said for Web 2.0 and Enterprise 2.0 software. The 1s and 0s are not the source of the problem. It’s the people. We are highly unpredictable and erratic creatures that are prone to all sorts of odd behavior. Facebook, MySpace, YouTube, etc. simply make it easier to expose yourself (and your employer) to serious harm based on inappropriate posting in public forums.
Employers are naturally paranoid — and they should be — because Web 2.0 has made it easier than ever to expose sensitive or defamatory material to a wide audience. However, they would be best suited in focusing their concerns on the human resources problem, i.e. how do I keep my employees happy, productive, engaged and loyal rather than worrying about restricting access to Web 2.0 tools that can cause harm, inside the firewall or out.
Unlike automatic weapons, the same tools we can use to defame our employers or leak sensitive information are — ironically — the tools that I hope will make us happier about our jobs so that we don’t feel a need to do something destructive!
While there sure isn’t a one-size-fits-all answer to the question whether E2.0 will fly easier on an intranet, I’ve experienced some companies to be rather willing to try it externally (despite the perceived risks), as they felt, that there was quantifiable benefit there (e.g. more sales thru higher customer loyality).
Internaly there is “only” the promise of better communication, collaboration and thus rised employee productivity. Things that I find of high value, but that don’t get very much attention in many companies… also (sometimes especially) in HR…
Therefore I was also astonished by what these HR-Managers said. But that’s great – so there’s hope!
Hi Andy,
Since I attended the session you are referring to I thought I would add my observations. My one big takeaway was that most Fortune 500 organizations are taking a “wait and see approach” to E2.0 and are hesitant to embrace lateralization right away. I think many companies fear the loss of control that comes with lateralization. That said, I also feel that companies recognize that E2.0 and lateralization is the future/inevitable and so they will slowly begin to experiment and dip their toes in the water. Like any new technology, there will be your early adopters and late adopters. I think E2.0 adoption will escalate when companies figure out just how it adds value to them either in terms of interacting with customers or allowing for more effective collaboration and innovation. As company leaders hear of more examples of the positive results of lateralization, I think you will see more widespread adoption. Companies that want to become Next Generation Enterprises will ultimately move to the use of E2.0 platforms internally and externally to connect with partners and customers.
The decision to lateralize internally or externally is situational. Or, more appropriately put, it depends on the priority (and benefits as perceived by the management) of a company at a given period of time. It is also, in some parts, influenced by the type of industry the company operates in. For example, a B2C company might engage its customers more deeply than a knowledge company. It may be that a company engages in external lateralization selectively. For example, a product company may choose to externalize its ‘requirements analyses or ‘ideation’ phases and internalize the ‘design phase’. It may be a point of argument that smaller companies with limited ‘resources’ might see more value in lateralizing (to leverage the ‘weak ties’) than a company which is ‘self sufficient’.
I see tremendous value in lateralizing the value creation process in all companies. It is a matter of choice (and time) as to how one goes about doing it. Having said that, when a company sees the value (of lateralization) outweighing everything else (including security), it will go all-out for it!
IT security in the healtcare sector, where I am an OD manager, is a major concern. The use of enterprise2.0 is on the drawing board here for 2008 because our culture is comfortable with lateralization in non-technical circumstances. The assurance of security that internal social media provides is very much in line with who we are and with our emerging needs for continuous collaboration.
We have been deploying these types of technologies inside companies for almost 8 years now. I would say that while there is still resistance amoung people in the enterprise, it is much less than even three years ago. That is good.
Said this, some people are afraid of change, whatever the change may be. One of the strategies we have seen is to help the company understand their facilitative role in guiding the conversation. For larger communities positive facilitation is one of the most important strategies for results. It can help companies unearth their issues and strategic gaps to come up with positive solutions.
Another strategy is accountability – associate people with their comments and activity. Not many people would like to lose their job over a blog post.
Finally, examples of companies successfully doing this (internal E2.0 efforts) are emerging and getting attention. This will inspire others to make the leap and overcome their fears. We have seen some really great success stories.
I also work in MNC and i totally agree with what Joe Grochowski said. I would not reveal the name of my organization but its fastest growing IT company and they are implementing E2.0 for some of the domains.
I was a victim of this corporate paranoia back in 1985 when working as a software engineer for the second largest computer manufacturer. Anyway, I was fired for misuse of company assets for posting a lawnmower for sale on the company bulletin board after hours no less. Turns out they were looking to downsize and used that as an excuse. I fought it on the grounds of wrongful termination and won.
This occurred a month after I was given an excellent performance review.
Anyway, the experience permanently scarred my entire outlook on corporations and I’ve been self employed ever since. Jumping forward to 2008, the business climate has become even more suffocating with employers Googling prospective hires before and during employment, using keystroke loggers, email spying, and using other spying software to monitor their employees activities. Where is the line drawn for invasion of privacy if an employee is being productive and performing well for their company. That same energy should be used by HR
and upper management to further the company’s interests rather than acting as activity police!
My 2 Cents
Steve
thank you for this nice and informative post.
thanks,
http://www.nannytoyou.com