by Adam Hartung | Oct 8, 2009 | Current Affairs, General, Innovation, Leadership, Lock-in, Web/Tech, Weblogs
"Companies Say No to Friending or Tweeting at Work" is the headline in The National Law Journal. According to the article, somewhere between 54% (according to a Robert Half survey) and 76% (according to a ScanSafe survey) of companies block employees from connecting to social networking sites like Facebook, Twitter, Linked-In, Plaxo, etc. The reasons sound so traditional – starting with lost productivity and moving on to fear of data theft.
And of course, there's the bogeyman to worry about too.
In the 1940s and 1950s success was all about mass production. Show up for work on time, don't be late, don't be absent, and do your job. We had assembly lines to operate. Making stuff meant we needed to get people into the plant, and have them do their job. The more efficient people were, the more things a plant could make – be it cars or washers or televisions. So control everything the employee did on the job to make sure each minute is spent welding, typing, adding, inspecting or whatever their task. Fredrick Taylor became a business guru, running around with stopwatches calculating how to get more work out the door by controlling everything workers did.
Have people noticed that its 2009? Today, there are places where such focus on task implementation is important. But most of those places aren't in the USA. Those kinds of jobs have moved elsewhere. Even in America's manufacturing plants (and in most plants in the developed world) it is more important that an employee be thinking about their work. More gains are made by intelligent application – new ideas for processes or activities – than from Tayler-ist style efforts to whip people into working harder and more efficiently. Would you rather have a drone employee (a human robot) or a smart employee thinking about how to be more productive and successful? Sweat shop behavior doesn't make more money in a world where intelligence and insight are worth a lot more than hours in the chair.
Yet Lock-in to old efficiency notions still remain. In the 1930s there was a movement to ban adding machines for fear the tapes (the old white tape that ran out the top) would be stolen by employees. Better to stick with humans doing the adding – less risky. When PCs came along practically all IT departments wanted to ban them – saying that they posed an inherent risk to productivity (people might use them for things besides work) and employees would capture data on them and leak it to competitors. When the internet emerged in the 1990s huge numbers of employers banned access because they didn't know what people would do on the web and they feared everyone would be shopping all day, or emailing their friends. And who knew what kind of information they would leak about the company! In each instance, a tool that dramatically improved business performance was met with "this will hurt productivity. And don't you think this poses a serious risk?"
For those who aren't looking for the bogeyman, this presents an opportunity. Those who first adopted adding machines quickly improved performance – and those who adopted PCs improved productivity (spreadsheets and word processing gave early adopters huge advantages) – and those who adopted the internet rapidly sold more to new customers while finding more low cost suppliers and automated lots of business processes in their supply chain taking down operating costs. These innovations created Challenges to old ways of doing things, but they also created huge opportunities for those willing to Disrupt old patterns and use White Space to see how they could improve their business.
Every day millions of people are starting to use – and millions more are increasing their use of – social networks. You can get an incredible sense of the pulse of many communities. You find out what's going on with customers, potential customers and colleagues incredibly fast. These networks help sift through billions of megabytes of data and bring critical items of importance to you (and your business) remarkably fast. They act as a new distribution system for information – think of them as a water cooler on steroids taken to the "nth" power. These are not on-line solitaire environments, these are places where people exchange information and learn. Really fast.
Today, having informed employees who can take action separates winners from losers. Those who want to be in the forefront of competition are already thinking about how these environments connect them with critical information. Help them connect to customer and vendor communities. Help them improve productivity by increasing the pace of information exchange. If you aren't afraid of the bogeyman then you have an opportunity to get a leg up on the fearful by not only accepting, but encouraging the use of social networks. The faster you "get it" the better off you'll be. It's likely to introduce ideas for Disrupting your business during this downturn and opening White Space to get you growing again!
Postscript –
An article in the recent New Yorker Magazine "Not So Fast" takes a deep look at Fredrick Taylor and the history of "scientific management." According to the article, Taylor and his colleagues often made up their data, and their conclusions, and the results they promised were almost never achieved. Interesting reading on how the myth was created, and became legend. Perhaps sending most of what was taught for decades as "business best practice" at leading business schools in a seriously misguided direction. Well worth a read for those with time to pick up a little history – and some insights to how business myths are developed and promulgated.
by Adam Hartung | Oct 4, 2009 | Books, Defend & Extend, In the Rapids, In the Whirlpool, Lifecycle, Web/Tech
Do you remember when AOL dominated the internet? In the early 1990s most people who used the internet actually were AOL clients. They bought their internet access, via dial-up modems, from AOL. Their interface (browser) was from AOL. And most of the sites – and navigation – was driven by AOL. AOL was the "monster" of the web. And it created enormous value for investors from this leadership position. It's value stormed to over $160billion!
Chart from Silicon Alley Insider
But as we can see, once acquired by Time Warner AOL tried to Defend & Extend its position. These actions pushed AOL into the Swamp, an undefendable position in the rapidly growing internet world. Defending its position proved impossible, as people found better and lower cost solutions for accessing and using the web. Now AOL is in the Whirlpool, fast disappearing – an historical anecdote about early internet days.
Apple has only about 2% market share in mobile phones. On the one hand, this could appear nearly immaterial. But if we look at usage, we see a very different story
Chart courtesy Silicon Alley Insider
iPhone application growth, which is clearly becoming logarithmic, demonstrates a change in the marketplace. People are clearly using these devices for more than making calls. Unlike AOL, which tried to hold people into their environment – or even Motorola's RAZR which tried to dominate sales of phones with pricing – Apple isn't trying to Defend & Extend a market position. Apple is creating a market disruption by changing how mobile devices are used. Promulgating applications increases demand for the iPhone (and iTouch) as not just phones but as replacements for laptops and other internet devices. Possibly ereaders like Kindle. This pulls people toward Apple's devices, which will generate strong future growth. By constantly bringing out new uses, Apple disrupts the market for phones, computers and internet access devices. Positioning its own products to be big winners as demand continues growing, and keeping Apple in the Rapids.
PostScript –
I was pleased to see a recent Wall Street Journal article "What Kills Great Companies: Inertia." The message of Lock-in as a source of business problems keeps spreading. This time Gary Hamel talks about some of the sources of Lock-in he sees. Reads like he bought a copy of "Create Marketplace Disruption"!
by Adam Hartung | Mar 28, 2009 | Current Affairs, In the Whirlpool, Leadership, Lifecycle, Quotes, Web/Tech, Weblogs
"If you don't read the newspaper you are uninformed. If you do read the newspaper you are misinformed." — Mark Twain
"All I know is what I read in the newspaper. That makes me the most ignorant man alive." —- Will Rogers
What both these great writers understood was that when you get most of your news from one source, you get only what that source chooses to tell you, and only a single interpretation of the news. Since newspapers began there has been controversy about bias in news reporting. Many famous newspapers were considered "conservative" or "liberal" based upon the political opinions of the owners. The reality is that when a newspaper reporter tells you a story, what you read – down to the word choices - is affected by the opinions and feelings of the author, as well as those of the editor and perhaps even the publisher.
The great breakthrough of the internet is you aren't restricted to a single (or possibly) two sources. You can find articles about anything from a political speech to an automobile accident published by 5, 10 maybe hundreds or thousands of sources. And for many news items the internet provides you not only multiple opportunities to read how the "facts" are told, but you can find multiple articles that interpret those facts. This plethora of coverage means that internet readers have the opportunity to be as selective, or as broad, as they choose. And it means that the ability of publishers to "control the direction" of a story is dramatically diminished. Readers, by looking across multiple sources, can determine as a group which "facts" they find accurate, and which "interpretation" they find most genuine. Because of the internet, news coverage is "democratized" in a way that has never before been possible.
Newspapers provided a method of informing the public for a very, very long time. But they have an internal weakness they cannot overcome – the printing means that only one version of a story is told and it can only be economically told once per day. The distribution method makes newspapers an "event" that occurs at "deadline", and the cost is high enough that there's only enough advertising to support the printing and distribution of one newspapers in most markets. When you get down to the printing – the "paper" in "newspaper" – it has limits that create a weakness.
The internet is disruptive because it overcomes the limitations of printing. It is available 24×7 not just to read, but to be updated and current with the latest information. A person anywhere can read input from multiple sources. The internet makes up-to-the-minute news coverage of everything available to people in rural, remote locations as quickly as it does those "on the scene", thus opening an interest in world or very local events to everyone on the planet, regardless of location. And this means this "no cost distribution" (not no cost of fact acquistion, or interpretation, or writing – just distribution) allows the internet to do what economist Joseph Schumpeter called "creatively destroy" the old value in newspapers.
Those who bemoan the loss of newspapers need to spend more time on the internet. There are so many sources for so much news that we are today the best informed society in the history of mankind. The financial problems at newspaper publishing have not diminished the quantity or quality of news coverage. Those are higher than ever. And the businesses that jump into this market, by developing networks to access the most/best news and interpretation at the lowest cost – while delivering it in a format that is easy for readers to find and absorb – will be successful. And it will be harder than ever for those trying to create the news (such as politicians and political pundits) to decry "bias" in a world where all opinions are available to everyone.
