Tim Walters, Partner and Principal Analyst Mary Laplante, Vice President, Client Services

DCG helps business leaders navigate the digital transformation and create competitive advantage from disruption.

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About Digital Clarity Group

@tim_walters @just_clarity

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Authored by: Jill Finger Gibson Marianne Kay Scott Liewehr Cathy McKnight Tim Walters, Ph.D. Tiffany Elliot

Research and reports available for download at http://digitalclaritygroup.com

Create the company’s “value zone” (Vineet Nayar) Companies in the top quartile of

engagement had 50% higher total shareholder return.

Each incremental % of employees who become engaged predicts incremental 0.6% growth in sales.

(Aon Hewitt)

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6 Source: http://www.netjmc.com/business-value/decrease-of-interest-in-enterprise-social-software-signals-a-shift-from-tool-to-behavior/

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≅50%

≅78%

≅8%

Source: http://www.netjmc.com/business-value/decrease-of-interest-in-enterprise-social-software-signals-a-shift-from-tool-to-behavior/

8 Source: http://www.netjmc.com/business-value/decrease-of-interest-in-enterprise-social-software-signals-a-shift-from-tool-to-behavior/

9 Source: http://www.netjmc.com/business-value/decrease-of-interest-in-enterprise-social-software-signals-a-shift-from-tool-to-behavior/

10 Source: http://www.netjmc.com/business-value/decrease-of-interest-in-enterprise-social-software-signals-a-shift-from-tool-to-behavior/

“When asked to rank their company’s social business maturity on a scale of 1 to 10, more than half of respondents gave their company a score of 3 or below. Only 31% gave a rating of 4 to 6. Just 17% ranked their company at 7 or above.”

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Source: “Social Business: Shifting Out Of First Gear” Based on survey of 2545 executives in 99 countries and 25 industries. Note that the report defines “social business” to include consumer social sites (Facebook, LinkedIn, etc), internal social networks (e.g., Cisco Learning Network), enterprise social tools (e.g., Jive, Yammer, or custom built), and social-based data and marketing intelligence.

“77 percent of business and IT leaders say their companies are currently using social collaboration technologies”

12 Source: “Is enterprise social collaboration living up to its promise,” May 2013. Survey of 1000 business leaders and 4000 employees.

“77 percent of business and IT leaders say their companies are currently using social collaboration technologies”

“82 percent of businesses currently using social collaboration tools want to use more of them in the future”

13 Source: “Is enterprise social collaboration living up to its promise,” May 2013. Survey of 1000 business leaders and 4000 employees.

“77 percent of business and IT leaders say their companies are currently using social collaboration technologies”

“82 percent of businesses currently using social collaboration tools want to use more of them in the future”

“The most widely used social technologies” are Facebook (74%) and Twitter (51%)

14 Source: “Is enterprise social collaboration living up to its promise,” May 2013. Survey of 1000 business leaders and 4000 employees.

“77 percent of business and IT leaders say their companies are currently using social collaboration technologies”

“82 percent of businesses currently using social collaboration tools want to use more of them in the future”

“The most widely used social technologies” are Facebook (74%) and Twitter (51%)

“Business and IT decision-makers have a false sense of accomplishment when it comes to social collaboration”

15 Source: “Is enterprise social collaboration living up to its promise,” May 2013. Survey of 1000 business leaders and 4000 employees.

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Platform megalomania Inattention to knowledge processes Misunderstanding social “Up with people!”

@tim_walters @just_clarity

“Build it and they will come.” 18

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80% OF SOCIAL BUSINESS

EFFORTS WILL Not HIT THE

MARK FOR INTENDED

BENEFITS

Source: Gartner, January 2013

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“The What – the social platform itself – is already dealt with, at least for early adopters.” Now we’re “tackling the big

issues of How.” – Jane McConnell

How and WHY?

23 Source: http://www.netjmc.com/business-value/decrease-of-interest-in-enterprise-social-software-signals-a-shift-from-tool-to-behavior

24 Source: http://www.forbes.com/sites/stevedenning/2012/10/31/dont-diss-the-paradigm-shift-in-management/ . Deloitte analysis of 20,000 US Frims

“It begins with the idea that a firm is in business to make money for the shareholders. To this end, managers direct and control the workers. Work is coordinated by rules, plans and reports, i.e. bureaucracy. The overriding value is that of ever greater efficiency. Communications are top-down and aimed at maintaining control. Work revolves around “the boss”. The firm’s principal focus is internal. Its principal dynamic is control with the objective of ever greater efficiency.” – Steve Denning

25 Source: http://www.forbes.com/sites/stevedenning/2012/10/31/dont-diss-the-paradigm-shift-in-management/

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“As organizations begin to realize that they need to transform the way they operate, and to challenge their structure and purpose, in order to survive in a world of increasing complexity and fierce competition, rethinking the very nature of work has become critical.” (Thierry de Baillon)

“Employees are increasingly looking for

personal growth, purpose recognition, access, influence, impact….The future of work is about getting back to basics and unleashing the power of people.” (Ayelet Baron)

“Change in the workplace starts and ends with people, with how they relate to and work with one another. You need people who understand people as part of your team.” (Richard Martin)

Source: http://changeagentsworldwide.com/book/1

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“The starting point for organizational change is to realize that our understanding of how we work, alone, with others, and together has altered. The foundations of business that most organizations are operating on are no longer relevant, if they ever were. We need to operate in ways that are aligned with our inherent characteristics.” (Clark Quinn)

“If old world organizations are going to

keep their best people from fleeing to greener pastures (or find willing new recruits from colleges), then the first thing they’re going to have to do is recognize that each and every one of their staff are unique individuals, with passions, dreams, ideas, and a spirit of independence.” (Rob Caldera)

Source: http://changeagentsworldwide.com/book/1

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11. “The philosophers have

only interpreted the world in various ways. The point

is to change it.”

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11. “The social tools have only

impacted the world of work in various ways. The

point is to change it.”

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They should change it.

We must change it.

You ought to change it.

Someone, anyone, please change it!

“The point is to change it.”

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(Literally: “It arrives thereupon to change it.”)

There is no subject in the sentence, no actor or agent that

could/will “change the world.” Why? Because Marx wants to

emphasize that change is not just a matter of people

“changing their minds,” of deciding to change. People do

effect change, but only in the context of (and in conjunction

with) changed conditions.

Look at three instances where changed conditions are at

work (and in the workplace) “behind the scenes.”

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“[Employers have to] recognize that each and every one of their staff are unique individuals, with passions, dreams, ideas, and a spirit of independence.” (Rob Caldera)

But: Wasn’t this true for our parents? Grandparents? Workers now nearing retirement?

So: What is different today that makes Rob’s insight pertinent now (and for the future of work)?

Source: http://changeagentsworldwide.com/book/1

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“This dimension [team work and collaboration] has been successively discovered—and forgotten and then loudly rediscovered—by Mary Parker Follett in the 1920s, Elton Mayo and Chester Barnard in the 1930s, Abraham Maslow in the 1940s, Douglas McGregor in the 1960s, Peters and Waterman in the 1980s, Smith and Katzenbach in the 1990s and Richard Hackman in the 2000s. . . .[M]anagers would for a time embrace collaboration and teams, and then in a crisis, disband the teams and revert to the default model of . . . controlling individuals.” (Steve Denning)

So: Why did the previous change agents fail? What is different today that makes Steve’s call for “radical management” more realistic and likely to succeed?

Source: http://www.forbes.com/sites/stevedenning/2012/10/31/dont-diss-the-paradigm-shift-in-management/

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But: Previous generations also had unique habits.

And: All firms must acknowledge the need to accommodate. (Otherwise, millennials must just adapt to the world of work, as did previous generations.)

So: What is different today that makes this gen’s demands so powerful?

Source: http://theweek.com/article/index/232375/how-millennials-are-transforming-the-workplace

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People

Digital disruption empowers consumers Outside – In (Forrester) Delighting customers (Steve Denning) The consumer expectation/demand for

positive experiences

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41 Source: Harris Interactive survey of North American consumers, 2011.

42 Source: Okeeffe & Company survey of 1,342 senior executives, 2012.

Global executives say the cost of

not providing “positive, consistent,

and brand relevant experiences” is

20% of total revenue

“Consumers are empowered by information and shared opinions, and they are emboldened by choice. They have developed an appetite for rich and rewarding interactions, and they rarely hesitate to seek alternatives when disappointed. Increasingly, companies will succeed and fail according to the quality of the experiences that they offer.”

- The CEM Imperative: Experience Management in the Age of the Empowered Consumer Digital Clarity Group

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People

what it means

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• Business justification • Clear/measurable impact, value

proposition, ROI

• A driver for org transformation

• A justification for social practices and tools (i.e., specific value-generating activities

• Business driver that justifies a radical shift in practice

• A “why” that proves a radical shift in the conditions of value production

Support for digitization/automation of work

Structure and accelerator for business transformation

Org-wide support Fundamental

transformation of business practices (e.g. outside-in)

(Software) support for agility, responsiveness, innovation, “consumerization”

Cure for declining business performance

Structure for organization-wide customer-centricity

@tim_walters @just_clarity

Social is not appreciated if held to traditional standards (e.g., ROI)

Social will not be widely adopted if it is judged by (and aspires only to) the established goals of efficiency, productivity, and cost reduction

Social will not be successful if it is a collaborative façade on traditional hierarchical organizations

Social will not be effective if it serves as a Band-Aid on the gaping wounds of non-customer-centric companies

CEM is the inescapable business imperative – and provides the necessary business focus for social, organizational change, and the future of work 47 @tim_walters @just_clarity

Tim Walters, Ph.D. | Partner, Principal Analyst @tim_walters twalters@digitalclaritygroup.com www.digitalclaritygroup.com