Social Maturity at Scale: From Evangelism to Execution

It takes a village to raise a tectonic shift in the way companies communicate and operate at scale.  No, it will take a network of connected villages.  And it will take  over a decade to get past the early adoption phase for social business transformation inside large enterprises.  A few threads and blog posts are prompting me to write a few thoughts on where we are in the evolution of social business maturity.  The one that most notably hit home for me was Luis Suarez’s Willy Loman, Death of a SocBiz/E20 Evangelist post this week: Dear Social Business Evangelist Where Art Thou?

We discussed Luis’s post internally in the  Council, and it falls on the heels of another conversation we had recently regarding the perception that internal social business transformation is failing or has failed in many companies.

This poll is very informal, and granted, we have a survey bias in that  all Council members are working hard to bring social transformation to their enterprises.  Yet, there are ZERO failures reported and even the 25% of the members who indicated they feel they’re way behind are not “giving up.”  All our members recognize this is a long haul and are putting in place the mechanisms to realize a fully-integrated social business in thought and deed.

 

Some Council member comments:

“If this is failure, I couldn’t handle success.”

“On the other side of the hype curve is a plateau, not a canyon.”

“No. Not at all. Do we have 100% adoption in the company and every single employee conducting every single work activity in a social way? No.   Have we changed the way a significant number of people in the company (let’s say somewhere between 30% and 50%) look to solve their problems, voice the opinions, raise ideas to places they could have rarely reached before?  Yep. Have we impacted employee engagement scores in a positive way?  Yep.  Is the cost vs. the benefit so prohibitive that is gives execs pause to consider the ROI more closely?  Not even remotely. They are bought in to the value. Are execs sharing openly and daily? Nope.  Some are trying though…some better than others.       Are execs supportive of the conversation taking place and willing to jump in occasionally when the attention level and criticality warrant doing so?  Yep. Can I keep up with the demand of people requesting consulting about ideas on how to leverage “social” in their business areas in ways we never even considered?  Barely.”

“+1 to [Council member] in his comment about changing “measure” to “observe”. I would ask the naysayers if they’ve ever heard about Lean. Social tools and their usage patterns are allowing us to collaborate more effectively and to make work visible so it can be improved. Activities. Connections. Flowpaths. Improvement. These are the four “rules in use”. On a factory floor, improvement comes from the ability to see how activities interconnect to get parts out the door. I would argue that a fundamental, basic problem with knowledge work as most people do it is that it went underground with desktop productivity and email. It is completely invisible. With the use of social tools and their integration into the flow of “real business transactions” (such as Chatter, etc…) – that’s how we make the work visible so we can improve it. That’s where I see value in companies like mine; It is certainly not in, ‘hey ya’ll, we have a blog, documentation wiki, and micro-sharing activity stream so now we’ll be more profitable.'”

“Without our [social software platform], there is simply no way that our corporate culture would have had the major shift it has in the last four years. And that shift has allowed [Council company] to completely transform our business from [a dying model to a thriving one].”

“+1 to [Council member’s] ten-year adoption, as I always see it as our long journey towards a high mountain range. After nearly 2 years of ground works, I consider we are just passing the first base-camp – the “awareness” camp.  We start to see some paths leading us toward the 2nd camp, but not the whole path to the end.. not yet. Yes, we haven’t reached the end and we are not able to measure where we are, but we know we are in progress – step-by-step.”

“This is no different than adoption of a new technology that changes the way we work dramatically, and how we communicate.  I bet that the history of email adoption in the past is no different, and had the same resistance.  Changing the way we communicate, which has been done for decades, and people who have lived for decades in that mode in not going to happen overnight.   When people come to work, they want to be productive, and want to understand how communicating in a different manner will achieve their end goals.  I believe this is at least a 5 year journey… I have worked at multiple companies, and when the top leadership makes a direction change, or wants to align multiple fragmented divisions together, that change takes 5 years or more since it is about changing the culture, how people work with each other, and they want to align themselves to the new strategy.  Also, people changes are made to enable faster traction.  In the social journey, if we don’t give the same importance, have top leadership backing, and put the right people in the right place, the journey will be slow, and organic.  I am a strong believer and proponent of this social journey, and I see success down the line!

In short, the era of evangelism is over and we should all be rejoicing that the suits are showing up.  One of our members said, “I’m sending the suits.”   At the core of the transformation, however, is the ideals that innovator/disrupters like Luis Suarez and many more of my e20 friends have championed from the beginning: transparency, collaboration/sharing, authenticity, and even trust.  Trust may be the most difficult challenge for the 21st century enterprise, and I sometimes wonder if all companies can succeed here.  (See this exceptional post on “Relational Trust” by Peter Stoyko that explains this elegantly.)  But, at the end of the day, the planks of humanizing the enterprise will succeed, along with the commercial interest all profit-oriented enterprises have in generating returns for their stakeholders.

The directive for all evangelists has moved from enlightenment to engagement.  The drive to deliver social engagement at scale is the next crusade.  I’m interested to see the role that gamification companies such as Badgeville and Bunchball will bring to the social business sector, as well as innovative metrics and dashboards that are being developed such as Moxie Software is creating for its clients  that measure and report on business outcomes vs. platform activity.  As the customer marketing (heretofore social media/SCRM) data begins to pour through the pipes in the firewall, the ability to measure and make sense of that social engagement will be even more profound.  The development team here at Dachis Group is building a formidable arsenal of tools and services to measure this kind of engagement at scale, as well.  (Sign up!)  We are still in the early stages of the transformation that so many of us predicted and, to some degree, made happen.  The challenge for every company is to stop trying to homogenize the market and rather celebrate the diversity of approaches that exist to succeeding with social business.  Each enterprise has its unique opportunity to succeed in this space, and it still takes the courage and creativity of the Intrapreneur to identify these opportunities, spur adoption of these new principles, and ferret out the next one.  So, the evangelist’s job has become more serious and less pious.  And that only means we are succeeding and growing, in real business terms. Everybody take a bow. And put on your suit.  This is happening.

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More Serendipitous Social Upside Vignettes

Continuing with my series on unexpected windfalls and other business benefits realized from socialworking, here are two more examples.  I need to anonymize these to protect the member companies.  One is a large retailer, the other is a large life sciences multi-national.

Social Delivers the Goods (and more)

We’ve all had that experience when we waited for that shiny, new appliance to be delivered.  In this case, it was a washing machine.  Our member, a large retailer, prides itself on its service to customers in its appliance department.  When the delivery driver arrives at the home, they pick up the old appliance, install the new, test it for 15 minutes, and teach the homeowner how to operate it.

This leading retailer delivers thousands of appliances every day.  Delivery drivers (independently) were starting to see problems with a particular model of washer.  As it turns out, a fitting on the back of the washer had been changed by the manufacturer, and they were leaking after installation. The vendor didn’t know about it, the merchant didn’t know, and the drivers definitely were not informed the manufacturer had made the change.  But, the same problem was presenting itself around the country from different stores delivering the appliance.

A few of the delivery drivers turned to the company’s community space and asked, “Is anyone getting leaking problems on this model of washer?”  Once they realized what happened, they were able to stop a problem that would have been a major issue in returns, liability, flooding basements and utility rooms, simply because the manufacturer had decided to change the fittings and didn’t inform the merchants. (Do I hear social supply chain anyone?)

The activity stream of collaboration and sharing got the message to the merchants and back to the vendor and the problem was fixed in a matter of weeks vs. months.  Without a social platform for this mass-scale type sharing, it could have racked up hundreds of thousands of dollars in damages to customers’ homes, diminished customer experience, aggravation, etc., before it bubbled to the surface in a meaningful way.  “The platform gave them the opportunity to share.  Now, the enterprise has to listen,” said our member.

The rewards of over-sharing

Many of our members (some say, like Sisyphus) are trying hard to change the culture at their large organization to encourage new social behaviors.  One of the killer tools in the social toolkit is the “work out loud” axiom.   Work out loud dictates that rather than burying your work in email threads or unsharable telephone calls, you publish what you’re doing and thinking online in a collaborative space (all day long) so others can learn what you know, and likewise, you can mine the intelligence of others’ expertise and experience.   This sort of thinking often falls into criticism from those who are not enmeshed in social business transformation.  The particular vignette  I’m about to discuss cropped up in a thread in the Council where I was grousing about grief I was getting in our Enterprise Irregulars back channel on social business.  My EI compadre, Esteban Kolsky, had expressed his opinion on all things social with this comment directed to me:

…that has nothing to do with being social, and they are not mutually exclusive. you can collaborate without being transparent or authentic – and the whole Kumbaya aspect of being social has been overplayed and shown to have not correlations with real business results. The whole “social” revolution is not about producing more data (as most people expect) but about purposeful engagement in new channels – which if you did not know how to do before, you cannot do now. Know who you engage and how, not just throw you stuff out there for everyone to pick it up. Twitter is no more than an awesome and free PR tool, not an engagement network. Facebook is no more than a way to stay in touch with friends and family. If you can prove otherwise, I am listening- but the people with the best results in the “social” world will tell you it is not simply about “being out there” or being transparent or authentic or collaborative.

Of course, I politely disagreed with Esteban, but in the subsequent discussion with the Council members, a number of great gems emerged to reinforce my opinion.  One of which is the following shared by one of our Life Sciences members:

“Serendipity happens. If you just wait to share until someone ‘needs to know’…you miss potential opportunities. We had this happen a few weeks ago. A marketing person shared information openly to create awareness about their approach to a new project…and someone from research saw it, and commented about some existing data from her department along the same lines. The two teams got together offline as a result and saved us tons of money thanks to knowledge re-use and reduced duplicate effort. Without just ‘being out there’ for the sake of ‘being out there’…that wouldn’t have happened because we are too large to identify all those opportunities on purpose.”

I asked him if he could quantify the savings.  He investigated it and related this to us:

Savings from serendipity: $250K – a planned research project was cancelled thanks to the shared learning across departments.  The existing data was determined to be more informative toward the cause than what the new project would have generated anyway.

Increased Sales: Sales projections estimate a potential sales increase of $30M over 5 years, thanks to the improvements applied to the marketing approach.

Intangibles:  Better insight into customer experiences, leading to improved resources that aid in providing better outcomes for the consumer.

So, by being transparent, authentic, and collaborative in this new way, the member company decreased operational expense by $250K and potentially added $30M in future sales from this single event.

Another member, Joachim Stroh, summed up the conversation neatly with this illustration.

Enjoy!

And the Academy Award goes to… Atlassian.

picture-7Atlassian is the Enterprise 2.0 sector’s Slumdog Millionaire. It’s an inspiring rags to riches story of two young college graduates who set out to earn at least a “graduate salary” (approximately $30K/yr USD) by creating a business, rather than taking a corporate job like their university friends did. Now, Mike and Scott were not living in a slum and neither did pure luck have anything to do with their fortune; moreover, their example is establishing a high bar for success for enterprise social software startups.

Last week, I got into a bit of a snit with Atlassian’s marketing folks on Twitter because they approached me about writing a post on Atlassian reaching $100M in all time revenue. Now, I knew the company was a growth engine, but I found it hard to believe they’d become a $100M company since the last time I had spoken to them. It turns out it was all a big misunderstanding. Mike Cannon-Brookes told me today that from the beginning, Atlassian’s backoffice systems have been tracking total cumulative revenue. On February 17th, the company had crossed the $100M threshhold. Mike actually tweeted it and Atlassian’s Laura Kahlil blogged about it on the Atlassian blog the next day. I didn’t understand the significance of the $100M cumulative number and was concerned people would mistake the number for annual sales. Listening to Mike talk about how they noticed the number and got excited about it as a milestone made it obvious to me I was wrong to give them a hard time.

I wrote about Atlassian in October of 2006. They impressed me then, and their continued success is a bright light in otherwise dismal economic news. Atlassian has pumped millions into the Australian economy and has created hundreds of jobs around the world (Atlassian has offices in 5 cities, including San Francisco). Further, their strong organic growth is a testament to the power of listening to your customers and focusing on delivering products customers love.

We can debate product features and what’s fashionable in enterprise social software for days on end. But in today’s economic climate, I celebrate success, job creation, growth, and independence.

Kudos to the Atlassian team.

(For longtime ITSinsider readers… it wasn’t lost on me that Michelle and Barack chose Etta James’ “At Last” for their ballroom dance on the night of the inauguration. )

Update: Just found out Mike was nominated by the World Economic Forum as a Young Global Leader for 2009. Smile.