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"Despite all the wonderful things in the second paragraph of his letter that Mr. Sheffer says about GE, Wall Street has had persistently negative view of the firm: GE’s share price has declined by 35 percent over the past ten years. GE is one of three firms in the list (along with Wal-Mart and Johnson & Johnson) that is doing markedly worse than the S&P 500, which is at +32 percent over the ten-year period.
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Instead of pursuing maximizing shareholder value as most of the Hay “leaders”, like GE, are doing, these firms are focused on delighting customers with continuous innovation. Paradoxically, it turns out that a tight focus on delighting customers makes more money than a tight focus on making money.
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It’s about understanding the principles of radical management that are needed to succeed in the customer-driven world of the 21st Century marketplace.
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"It’s a pretty simple equation at the end of the day. When businesses decide to invest in technology, they are hoping to ultimately get more value back than they put in. The time windows for such investment are generally 2 years, more or less. This was recently validated for me as I helped judge the entries for the 2012 CIO 100 Awards. I was surprised that many companies expect 100% ROI in rather short periods of time, often in just sixth month for efforts that may have taken years to implement. Whether this is generally unrealistic or actually achievable is besides the point."
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These days the talk in enterprise circles is about the next generation of IT, specifically what it is, why it’s valuable, and how to get there. This new wave of IT is generally accepted to revolve around smart mobile, cloud computing, big data, consumerization, and most germane this to discussion: social.
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"The really hard part of managing in larger organizations is in managing the layers and competing forces. Often we forget to reinforce acceptable behaviours, we leave role structures lose and incomplete and we set deliverables in often ‘woolly’ ways. This just promotes uncertainly and it is not an adaptive organization in leaving this so open. These unnatural built-in tensions create this shearing effect. They grind against each other, like tectonic plates that force further disruption and upheaval."
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Part of the innovation activities has been assigned to some other cost centre, or the capacity was already established and we often don’t break these down and assign these clearly enough to the different activities, we should, but into outcome orientation ones. Were the activities contributing to efficiency or innovation? We judge these through effectiveness of the outcome.
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We need to balance existing performance engines for repeatable everyday tasks with innovation delivery engines for new activities to make our organizations function more effectively
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"“Can business processes and social media co-exist?” – This was one of the first big questions on day 2 of the Enterprise 2.0 Summit asked by Bertrand Duperrin from Nextmodernity and that question lead to a very interesting discussion of the role of social tools in the world of Business Process Management (BPM) – something that links nicely back to the theme from day 1 of harnessing the conversations taking place in the organization. Traditional BPM lack a proper feedback loop to ensure proper organizational learning, but if you intelligently integrate social tools, this gap may be filled."
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If you just add a social layer inside the processes, you may find yourself creating ‘social silos’ effectively working against the purpose you are trying to accomplish
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If we are to succeed with more ‘social’ business processes, we simply MUST get out there and involve people – all people.
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"Even though many organizations demonstrated clearly by their recent decisions (i.e., downsizing) that they see people as costs, I still buy into the saying that "people are an organization's most important asset." Why? Look at the research emerging in the past twenty years or so around the Employee Engagement Equation:
~ the more engaged your workforce = the more productive and profitable your company "
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C = Customer: Can you connect the dots between employee engagement and customer engagement?
O = Opportunity: Can you identify the opportunity that employee engagement presents to the organization?
S = Strategy: Can you link employee engagement to the strategy of the business?
T = Timing: Can you convey the urgency? -
When people are committed, they are proud of their organization and when they are engaged, they see their work as contributing to the organization’s mission, which they strongly believe is important.
"One of the things I’ve posted on quite frequently at this blog, is the need to combing real and virtual (or as Nokia say, analogue and digital) activities in order to best achieve certain outcomes."
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When all workshops were completed, the 700 participants then returned to their teams to engage them in the ongoing process. It was at this point that the online community came to the fore.
"The way we currently think about community management – for the most part – is a role played by someone managing a set of relationships often mediated by an online destination"
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Over the last nine months working with and speaking with a wide array of individuals who are practicing community management it has become apparent that community management is not only an explicit role or career but also a general approach to management.
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A better understanding of how to incorporate real-time conversation into traditional workflows
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As from the common practice of working with this model they have added a input level to the diagram that discribes the denominator of the classical ROI formula in terms of costs for the Intranet management. “Output” describes the produced content by the input - in quantity, frequency, reach & actuality, comprehensability & usability. “Outgrowth” explains the perceived messages from Intranet output - measured for example by the knowledge about the contents of the distributed messages/information. “Outcome” indicates the effects from the “outgrowth” in regards to the changed behavior in terms of participation in any Intranet services. At the top of the model “outflow” pictures the business effects of the changes in behavior.
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At this point I would like to focus on the part of “information management & distribution” as this is a precondition for the impacts on collaboration and also seen as the more difficult part to measure.
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While the GPRA is nowadays not differentiating between level 2 & 3 and therefore proclaims only a three-level model (output / outgrowth & outcome / outflow), for a further discussion on how Enterprise 2.0 is effecting the business value a differentiated four-level model would be more suitable
With a social infrastructure in place, a company will manage its resources with best efforts to produce intended, or expected, outcomes. In addition, the transformation will produce emergent outcomes. Doing business differently will produce different results: product breakthroughs, process improvements, and broader interpersonal connections.
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