@jnestour | coreedges.comEnterprise 2.0 Summit | Frankfürt - Nov 09

How-to Leverage the Power of Feedback and the Law of Participation

Julien Le Nestour

“The evidence is mounting that corporate prediction markets work as advertised, delivering quick, accurate, and decisive predictions in areas of great interest. So are there any good reasons left for not using them, or at least experimenting with them? I ask seriously: why would any enlightened company not avail itself of this technology?”

SOURCE: http://andrewmcafee.org/2009/07/mobs-rule/

—Andrew McAfee

“The evidence is mounting that corporate prediction markets work as advertised, delivering quick, accurate, and decisive predictions in areas of great interest. So are there any good reasons left for not using them, or at least experimenting with them? I ask seriously: why would any enlightened company not avail itself of this technology?”

SOURCE: http://andrewmcafee.org/2009/07/mobs-rule/

—Andrew McAfee

E2.0 tools: hyper-efficient as interaction enablers

E2.0 tools: enable network (+ others) effects

E2.0 tools: enable increasing returns to scale

E2.0 tools: powering interactions

E2.0 tools: hyper-efficient as interaction enablers

E2.0 tools: enable network (or combinatorial, etc.) effects

E2.0 tools: enable increasing returns of scale

E2.0 tools: powering interactionsReal Challenge:

How to achieve“Enterprise Adoption”?

➡ End-users use them➡ IT deploys them➡ Executives support them

matt knoth

Real Challenge:“Enterprise Adoption”

Employee

Decision Makers

IT Managers

End-Users

From... To...

1. Unbundling “employees”

From generic employee concept...

2. Organizational Context

“Employee” concept

Company A

PHOTO: iStockPhoto

A CB

“Employee” concept

From generic employee concept...

2. Organizational Context

... to employee shaped by organizational context

Organizational Structure Culture

Workflows PowerStructure

True “employee” concept

Individual position + Organizational Context

How much do they shape us?

“Street Corner Society”

—William Foot Whyte (1943)

scion_cho

“The Physical Effect on the Individual of the Idea of Death suggested by the Collectivity.”

—Marcel Mauss (1926)

3. Smart, rational actors

StakeHolders = Actors who:

➡ are their ultimate decision-makers➡ have goals and enjoyable actions➡ use all leverage possible to achieve these

Actors

➡ unbundle different types of employees➡ actors’ perception, self-perception and goals are strongly shaped by organizational context➡ actors are smart, rational, and make their own decisions

Adoption?

➡ Simple: when it satisfies own goals at an acceptable cost

➡ Explore all 3 actors using the concept of “Return on Attention”

Michele Catania

Return on Attention

EUSKALANATOashley rose

EUSKALANATOashley rose

Perception Cognition

killthebird

Optimizing attention through perception

Information & Stimuli

Attention

Attention as a resource is becoming scarcer and scarcer...

Information & Stimuli

Attention

scarce = valuable

Information & Stimuli

Attention

Key concept/tool:Return On Attention

ROA: end-user level

pchweat

Predictor of Value

➡ evaluated at the individual, end-user level➡ optimizing the scarcest resource➡ if ROA is good enough, will use tools

Defining ROA

➡ perceived return from a unit of time spent using an application➡ Return = information, authority, etc. minus opportunity cost, monetary cost if any, etc.

Characteristics of ROA

➡ impacted by every “non-nil” factors➡ as weak as the weakest link in the chain➡ subjective and situated

Criteria Examples

➡ Application Usability➡ Training required?➡ RSS feeds/alerts?➡ Mobile Interface?➡ Hardware limitations?

➡ Priority versus other activities?➡ Need to change established workflows?➡ Perception from common organizational culture?

ROA as predictor of adoption

➡ At individual level, but dependent on organizational context (can emphasize dumbness)➡ Understand finely anticipated ROA at individual level➡ If ROA>0 absolutely and relatively to other activities/applications➡ Predictor of value, hence of adoption

ROA: IT level

ansel mcadams

ROA as IT metric

➡ Use ROA as an aggregated set of criteria:➡ Properties of application➡ How these properties weave together with the corporate fabric

➡ ROA: aggregates all the single trade-offs each application incorporates➡ From features to ROA for application comparison➡ Now, what is the impact of a tool?

ROA as component

ROA

ROA as component

X

Population Subset

ROA

Ex. of criteria for Typology

Criteria Definition

Corporate Specificity Applications or Activities are unique to company?

Transformational, Transactional, Tacit Nature of Work

Knowledge Manipulation / Decision-Making Nature of Knowledge Work

Drucker’s executive scale

“Every knowledge worker in a modern organization is an “executive” if, by virtue of his position or knowledge, he is responsible for a

contribution that materially affects the capacity of the organization to perform and to obtain

results.”

SOURCE: McKinsey Quarterly; The Effective Executive - Peter Drucker

ROA as component

X $$$Relative Value per positions

Population Subset

X

ROA

ROA as component

X $$$Relative Value per positions

Population Subset

X X !

Frequency of activity,

weighted by criticality

ROA

ROA as component

X $$$Relative Value per positions

Population Subset

X X !

Frequency of activity,

weighted by criticality

ROA

= anticipated effect on Business KPI

Weighted ROA

Weighted ROA: portfolio management

➡ Weighted ROA enables comparison between different IT projects: automation, CRM, social enterprise computing➡ Enables IT Portfolio management to both invest and arbitrate between projects

How should IT use ROA?

➡ Develop expertise in anticipating ROA for different types of positions➡ Develop expertise in approximating weighted ROA➡ Improve ROA of existing applications/processes➡ Number of strategies: consumer apps, internal SAAS, etc.

➡ Manage portfolio agnostically with ROA as key metric (NOT ROI)

Indeed...

ROA: Executive level

Paolo Màrgari

Interest of weighted ROA for executives

➡ Make concrete what hitherto unknown➡ Incorporate and mitigate the risks (decision-making)➡ Fully participate in IT decision-making

ROA: congruence tools + organization

➡ Understand ROA comes from congruence of tools and organizational context➡ ROA is situated: Focus on bounded use cases, processes of high value: prioritization

Re-engineer organization

➡ Re-engineer organization to extract full value from E2.0 technologies➡ Institutional Innovation➡ Redefine business metrics, based on new organizational modes and tools➡ In parallel with E2.0 technologies introduction

Ex.: Supplier Prediction Market

➡ Emile Servan-Schreiber (Newsfuture)➡ Ex. of Boeing dreamliner➡ PMs threaten established internal org➡ PMs threaten supplier-customer relationship➡ Institutional innovation: PM run by neutral 3rd-party, confidentially at supplier, with aggregate results and metrics provided to customer (ex. delay of more than 6 months)

➡ Depends on each organization➡ Need to take a holistic view: quality of technology, but mainly organizational context➡ Patterns exist: E2.0 industry is not making it simple to identify and use them➡ Consultants: also look outside of E2.0 world, towards incredible companies, to look for innovative organizational context, not tools

How-to Leverage the Power of Feedback and the Law of Participation?

Thank You

@jnestour | coreedges.com