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While the command-control organization was effective in organizing the work of early twentieth-century assembly lines, it has long outlived its usefulness when it comes to organizing the collaborative work of networked, distributed teams. Enterprise 2.0, named after the Web 2.0 technologies it leverages, is the moniker given to organizations that move away from the restrictive pyramid of command-control. In Enterprise 2.0 organizations, power will shift from executives to networked teams. What does that mean? What on earth will this look like? What will managers, CXOs, and "bosses" do in Enterprise 2.0? Will the command-control leadership give up this power easily...or fight it every step of the way? And where will Project Managers fit into all of this? This conference will make an attempt to answer these very difficult questions by pointing to real world examples of organizations moving towards the twenty-first century vision of "work" BIOGRAPHY Elisabeth Bucci (PMP, MBA) has over 26 years of experience managing technically complex projects across many industries, ranging from manufacturing to engineering to IT. As a project management consultant with Projissima inc, she leverages her project management skills to solve business problems for companies both big and small, with a very special place in her heart for entrepreneurs (her small way of "changing the world"). You can follow her attempts to overthrow Enterprise 1.0, as well as her insights into the highs and lows of being a project manager, on her blog at www. thepassionateprojectmanager. com .
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More than a buzz word: What Enterprise 2.0 might look like
(Hint: Not a triangle)
Elisabeth BucciProjissima inc.
Agenda
• Introduction/Expectations• History• Why Change?• What is Enterprise 2.0?• Examples, Take-away• Go forth…
Introduction
• Who am I?• Why am I here?
Expectations
• No one really knows, certainly not me• An * = uhhh..• There is no easy button• There is no one-size-fits all• There is very little information about real cases• 45 minutes is not enough to explain everything• My objective: get you talking about this
Before we can understand Enterprise 2.0, we must understand Enterprise 1.0
History
• Second Industrial Revolution 1860 - 1914• Perfect storm– electricity– interchangeable parts– telegraph– railroads
• Assembly lines• Economies of scale: Bigger is cheaper
How to manage “bigness”
Command-Control = Enterprise 1.0 = 260-year-old business model
260 yr old business model
• Two Fredericks• Frederick the Great of Prussia 1740-1786– won battles with an undisciplined army of mercenaries and
criminals• Frederick Taylor “Scientific management” 1890s • Solution = mechanical bureaucracy: – soldiers/workers are machines– ultra-specialization of tasks– chain of command: each soldier/worker receives orders from
only one superior– soldiers/workers don’t question, they fear
Why this worked
• Easy• Two roles:– Boss: “Do what I tell you”– Employee: “Do what I am told”
• Process– Do it this (one best) way– Repeat
• Communication: memos top-down• Any colour you want as long as it’s black
A socio-economic shift
• Command-Control = E 1.0 was more than a structure, it was a part of a socio-economic shift– unskilled workers built things they could afford to buy,
ie cars– birth of the middle class– birth of the suburbs (cars)– birth of the stock market– birth of the labour movement– abundance of consumer goods, right up to the smart
phone and the tablet
Why change?WHAT 1880s TodayCommunication 1:1 many:manyWorker education illiterate peasants college / university
public educationaccess to information
only the boss everywhere
markets England, US, Europe global villagesocial structure class system equalitycapital lots, gave birth to
stock marketsmall, private-owned
batch size BIG 1
1:manyWeb 1.0 Web 2.0
many:many
Web 2.0
allows users to interact and collaborate as
creators of user-generated content in a
network
beyond the static pages of earlier web sites and passive viewing of content.
http://en.wikipedia.org/wiki/Web_2.0
What is Web 2.0?
Web 2.0 = killer app
• new patterns of connectivity beyond institutional control (govt, corp)
• redefining what “local” means• “democratization” = removing middle men• no permission required!• freeing the customer’s voice– music, news, television, publishing
• freeing the people’s voice (Arab spring)• FINALLY: freeing the employee’s voice
“We cannot command-control our way through the pace and the complexity of 21st century business and society.”
The Future of Social Business is Paved with Good Intentions, CMS Wire, Deb Lavoy
Why change?
Why change?
• Return-on-Assets has dropped 75% since 1965• Businesses with engaged employees have
3x times operating margin
Original Source: The Human Enterprise: Progress or Perish, by Deb Lavoy
Why change?
Keep up or be gone.
What is Enterprise 2.0?
• Andrew McAfee first coined the term in 2006– “The use of Web 2.0 technologies by knowledge
workers within organizations”• Sounds like “Social business”• Problem: technology is not enough– Ever tried to make a wiki work in a Command-
Control structure? – Answer: you can’t
So, what is Enterprise 2.0?
• A new business model profiting from the unlimited potential of people, based on networked, self-managed teams and incorporating democratic values
• A socio-economic-political shift• A paradigm shift• Capitalist (but non-exploitative)*
What E2.0 is not
• Socialism• socialism failed because without the profit motive there
is no incentive to perform• Holding hands and singing and yoga• Democracy*– democratic values and democracy are not the same thing
• Consensus*• Anarchy• More than technology
Enterprise 2.0 needs…
PM
Change the shape
PM
Is this a triangle?
PM PM
or a circle?
PM PM
or a web?
We need to change the shapenot triangles not squaresbut circlesmany circles all interconnecting
Change the shape
New Leadership Style
• Not: – “Do what I tell you, stop asking questions”– “Ask me for my approval”– “Why did you apply for that (internal) position without
asking me first”– “cc me on every email you write”– “Don’t talk to my boss”– “Send it to me, I will send it to my boss”– “No, that idea is too…crazy/weird/unusual”– “Cascade this information down to your direct reports”
Enterprise 1.0, with command and control, is limited in its capability by the intelligence and capability of the Executive team. In 1.0 enterprises, the workforce is there to amplify the capabilities of the executives. Executives are the constraint...it is the executives that restrain growth and capability because the organization cannot amplify what the executive can't see.
In Enterprise 2.0 power and capability flows the other way — from the network to the leadership. In Enterprise 2.0, executives (leaders) inquire and align collective intelligence and capability. They can access the collective capabilities of the workforce.
The Future of Social Business is Paved with (Good) Intentions, by Deb Lavoy
role of executive:to command and control
power flows from executive to employee
Enterprise 1.0
power flows from networks to executive
role of executive:to inquire and align
Enterprise 2.0
Can a “leader” who has climbed a pyramid learn to “inquire and align?”
E1.0 E2.0
Web 2.0 is just starting to tip the balance…
What does it look like?
• Zappos “Holocracy®”• Valve
“A fearless adventure in knowing what to do when no one’s there telling you what to do”
• Automattic– Book
“The Year Without Pants: Wordpress.com and the Future of Work” by Scott Berkun (a project manager who worked at Automattic for 2 years as a team lead)
Holocracy®
• Holocracy® hit the biz news when Zappos announced its implementation– Zappos: on-line shoes/clothing, 1500 employees, $1B annual
revenue, bought by Amazon in 2009• What is holocracy®?– “holons” + “hierarchy”– a hierarchy of nesting/interlinking circles– a registered trademark (argh)– circles can be self-directed, self-organizing…or not
• has a constitution, governance, roles– Sounds like… process, projects
Holocracy® (cont)
• Energizing roles: – an organizational entity with a “Purpose” to
express, “Domains” to control, and “Accountabilities” to perform.
• Partners– responsible for sensing Tension (difference between
what is and what could be)– responsible for breaking down Accountabilities into
Projects and Next-Actions– Sounds like…Project Manager!!
Valve
• video games development and distribution• privately owned• 300+ employees• estimated profit $8 - $16 M / employee– more than Google/Apple
• Employee Handbook
Valve (cont)
A company with no management structure “Now, I can tell you that, deep down, you don’t really believe that last sentence. I certainly didn’t when I first heard it. How could a 300-person company not have any formal management? My observation is that it takes new hires about six months before they fully accept that no one is going to tell them what to do…” Michael Abrash, Valve employee
Valve (cont)
• employees choose their own projects• desks on wheels to move it to the projects
they wish to join• key ideas:– the best projects attract the best people– you do things because you care, not because your
boss told you to– creative people do not need bosses and
performance reviews
Take-away
• Leadership style = inquire, align• CEO = leader, benign• Privately owned (Valve) or acts like it (Zappos)– no Board– more freedom to make decisions
• Skill sets required– team-building– moving things forward to Done
Why PMs matter
• E2.0 requires team-building and networking skills that we have already acquired to survive the pyramid
• Our skill set matters more than the pyramid leadership style
• Any alternative to the pyramid will require:– roles– responsibilities– process
• Work in E2.0 is unique, has a start, end…projects!
Go forth…
• Know your value. Your skills matter.• Learn Web 2.0 in your personal life. Master it. • Jump on any Web 2.0 initiatives in your
company. Learn. Failure is inevitable and good.• Hone your network/team-building skills.• Informal power: you have it. Use it. Do no
harm. Don’t be evil.
Go forth…
• Stay away from the pyramid-climbers. Except those that can learn to “inquire and align”.
• Be an emergent leader. Add value.• Create oases of E2.0 within your pyramid– treat your project as a micro-enterprise where you
are the CEO– make new rules
Keep learning
• Deb Lavoy articles used as research for this presentation:Is Collaboration Limited by StructureIf Social Business is the Answer, What is the QuestionOr just read everything she’s written, see here.
• Go back through this presentation and read the hyperlinked documents
My past work on E2.0
• PMI Montreal Presentation December, 2013 “Why Projects Managers should care more about Social Media”
• Blog post PMs are the Next Generation Leaders, FR
Let’s keep talking
blog: The Passionate Project ManagerTwitter: @ElisabethBucciLinkedIn: Elisabeth Bucciemail: [email protected]
Go forth…and change the world.
