open management final_9.21

OpenManagementPage|1

OpenManagement:TheconceptofOpenManagementandexplorationofthenewimperativesfor

organizationsandtheirleaders

September21,2009

HaydnShaughnessy,Partner,[email protected]

TedShelton,Partner,[email protected]


AbstractOvertimecertaintheoriesofmanagementhavehadaprofoundimpactonthewayenterprisesareperceived,organizedandmanaged.Taylor’sScientificManagementandPorter’sCompetitiveAdvantageareclassicexamples.Butmuchoftheintellectualworkofdevelopingorganizationalstructuresandmanagementtechniqueshasaddressedonlyonespecificsetofchallengesposedbytheindustrialrevolution,efficientlyscalinganorganizationofsemi‐skilledlaborersengagedinrepetitivetasks.Whileefficiencyinthemanagementoflaborremainsimportanttoday,overthepastfewdecadesanewsetofimperativeshavebeenforcingtheirwayontothemanagementagenda.Anincreasingamountoftheproductivecapacityofoureconomiesisnowdedicatedtotasksthatengagetheintelligenceofourworkers‐‐notjusttheirbodies.Furthermore,invirtuallyeveryindustrytheroleofinnovationhasprofoundlychangedthecompetitivelandscape.Webelievethesetwochallengescallforacceleratedchangeinthegovernancemodelfororganizationsofeverysizeandtype.Theideaofopenmanagementencapsulatesbetterthananythingelsewhatthatchangeshouldbe.Inthispaperweexaminetheunderlyingshiftsinoureconomyandexplorepracticalillustrationsofhowspecificorganizationsaregrapplingwiththischange.Inparticularwelookathowtechnologyischangingboththenatureofourworkandsocialdynamicsinourworkplacesandasaresultisalteringthemannerinwhichwemustorganize,manage,andrewardemployees.Wealsoseektounderstandhowtheseshiftsarealsobreakingdownwallsbetween“employees”and“customers”andcreateentirelynewmodelsofactivityacrossallofourbusinessprocesses.Ourconsistentthesisisthatamoreparticipatoryandmoreengagedleadershipstyleisneededforpost‐industrialorganizationsinwhichthenatureofworkhasforevershiftedawayfromrepetitionanddrudgery.Inthisnewmodelwherecreativityandcollaborationareneededfromeveryemployee,companiesmusttransformtheirpolicies,philosophies,andorganizationalmodelstosucceed.Thatisultimatelytheobjectiveofwhatwecallopenmanagement.


Introduction

ItwouldberelativelyeasytoassumethatthechallengesyourbusinessisfacinghavenothingincommonwiththosefacingGoogle.Afterall,Googlehasgrownfasterintermsofemployeesandinitsgeographicscaleofoperationsthananyotherorganizationinhistory.AndthebusinessisentirelydrivenbythelogicoftheInternet,withitsendproductwhollydigital,itscustomersconnectingelectronicallyfromeverypartoftheworld,anditsemployeesmostlyhighlyskilledandwelleducated.Andcertainlythecharacteristicsoftheweb(onwhichGoogle’sorganizationalstructureisbased)–itsspeed,transparency,andinclusiveness–doseemtobeatoddswiththetraditionalcharacteristicsoforganizations;deliberative,structuredandoftensecretive.Butperhapsitisthosecharacteristicsthatareholdingorganizationsbackfromachievingthegrowthandprofitabilityofwhichtheycouldbecapable.IfthereissomethingtolearnfromGoogleandotherbusinessesthatareadoptingsimilarmethods,thestartingpointistounderstandthewaysinwhichourbusinessesaresimilartoGoogleandthusarefacingthesameproblems.Thetwoideasthatwewillexamineare(1)theshiftfrommanualtointellectualworkand(2)theinnovationimperative.

Brainsvs.Brawn

Throughouthistory,individualintelligenceandcollectivelaborhavebeenthedefiningelementsofourorganizationsandsocieties.Economicsystems,politicalstructures,andindividualorganizationshaveallgrappledwiththechallengeofprovidingasingleindividualorasmallgroupofindividualswiththepowertomakedecisionsandtransmittheauthorityofthosedecisionstoavastnumberofotherswhowouldthencarrythemoutthroughtheirphysicalactivities.Ascivilizationshavegrownmorecomplexandmorepopulouswehaverequiredincreasinglymoresophisticatedstructuresandprocessestoallowthismodeloftopdowndecisionmakingtoscaleacrossever‐largerorganizations.Inthesecondhalfofthetwentiethcenturytwotechnologicaltrendsbegantotransformthenatureofwork.Thefirstwastheincreasingpaceofdevelopmentofinformationsystemsthattransformedawidearrayoforganizationalfunctions,introducinganewclassofworkerintoorganizations.Sometimescalled“knowledgeworkers”theseemployeeswereengagedinthecreation,manipulation,anddisseminationofinformationthroughthesenewsystems,necessarilyincreasingtheintangible“intellectual”contentofproductsandservices.


Secondly,automation(andincreasinglyrobotics)istransforminglaboraltogether,significantlyreducingthenumberofpeopleengagedinthemanualcomponentsofbusinessprocesses,therebysimultaneouslyreducingthe“labor”contentoftheseproductsandservices.ThephenomenonofmanufacturingactivitiesmovingtocheaperlabormarketssuchasChinaistheresultofatemporaryadvantageoflowcosthumanlabor(nottomentionweakindustrialpollutionlawsandenforcement).Overthelongrun,thecostforhumanlaborwillexceedthecostofroboticlaborforvirtuallyeverytypeofphysicalactivity.Thistransferofvaluefromphysicallabortointellectualcontentistransformingthepeople,activities,andmanagementstylesofourorganizationsandforcingrevaluationsofwherefirmswillfindcompetitiveadvantageintheyearsahead.Thusthereisanemergingadvantageofcollectiveintelligenceoverindividualintelligenceacrossawiderangeofbusinessactivities.Andinallcasesasignificantpartofthenewagendaisinnovation.

Innovation

Businessesaretypicallyengagedinoneormoreofthreedistinctactivitycategories,eachofwhichhasanassociatedrelevantsetofprocessesandpeople.ConsultantandauthorGeoffreyMoorecallsthesethreegroups“inventors,deployers,andoptimizers.”Ultimatelybusinessecosystemsrequireallthreecategoriestoinordertosucceed,whetherthoseallexistinthesamecompanyorwhethertheycanbefoundindifferentfirmswhichthenforgerelationshipswithoneanother.Whilejustoneofthesecategoriesofactivityistaskedformallywith“invention,”Moorepointsoutthatinnovation(asdistinctfrominvention)hasbecomecriticalacrossallthreeactivities.Atthetailendofproductlifecycles,optimizersinnovateonmethodsforextractingthemostvaluefromwell‐understoodproductsandmarkets.Productsinrapidlyexpandingmarketsrequireworkerswhocanadaptanddevelopnewmethodsandstrategiesforfuelingrapidadoptionandthedevelopmentofnewmarketopportunities(thegroupMoorecallsthedeployers).Andfinallyfuturebusinessopportunitiesrequireresearch&development(R&D)activitiesorstart‐upculturestofuelinvention.


Figure1:Categoriesofbusinessactivityinrelationtoinnovationchallenges

Competitiveadvantageacrosstheentirebusinesscycleincreasinglycomesfrominnovationandthusfromtheintellectualcontributionsofouremployees.Butbuildingorganizationsinwhichinnovationisacentralpartoftheculturerequiressignificantchangesinthewaywethinkaboutthestructureandprocessofthoseorganizations.

Google

Google’sCEOEricSchmidtstatestheneworganizationalimperativesimply:

“…smartpeoplewanttoworkwithsmartpeopleandtheywanttobeinformed.”(GaryHamelinterviewedEricSchmidtinMay,2008forManagementLab)

Butafreeflowofinformationposesathreattotraditionalhierarchicalorganizations.Thinkofthisasatensionbetweentwoextremes,inwhicheachhasadvantagesanddisadvantages.


Inthetraditionalorganizationalmodelweprizehierarchyandstructureasservingtheobjectiveofoperationalefficiency.Inthismodelitisassumedthatonecannotanticipatethattheaverageemployeewillmakeavaluablecontributiontodecisionmakingbecausehecannotbeexpectedtohavethenecessaryintellectualskills.Plusthecostofcommunicationistoohightoprovidesufficientinformationtoinformleadershipopinionsortocollectandevaluatecontributionsfromthemassofemployees.ButGooglerecognizedthattheInternetvastlyreducedthecostofcommunication,thesinglelargestcostinbusinesscoordination,nearlytozero.AndinGoogle’sbusiness,theworkforcewasalreadyhighlyeducatedandthuscouldbeexpectedtohavetheintellectualskillstodosomethingwiththisinformation.InwhatwemightcalltheGooglemodel,incontrasttotraditionalstructureandhierarchy,theorganizationprizesempowermentanddevelopsmechanisms(mediatedbytechnology)toexploittheresultingchaos.Inthismodelthereisanexpectationthateveryimportantdecisionmustbedebatedandthattheroleofaleaderisnottomakedecisionsbuttoaskquestionsthatraiseobjectionsandfosterdebatesothatthegrouparrivesnotatcommonoutcomesbutinthebestoutcomes–allwithinthelimitsofadeadline.AsSchmidtdrylynotes,“Withouttimelimitsthemodellookslikeauniversity”–ultimatelythedifferenceisthatbusinessesmustoperatewithspeed,requiringdeadlinesfordecisions.TheorganizationalmodelthatGoogleisconsciouslyevolvingembracesthecharacteristicsoftheweb–speed,transparency,andinclusiveness,whichSchmidtlabels“porousness.”AndfarfrombelievingthattheapplicabilityofthismodelislimitedtoGoogle,Schmidtobservesthatthisisacharacteristicofanyhighperformingorganizationtoday.

BestBuy

In2007,intheUSelectronicsretailingmarket,twocompaniesstoodabovetherestinthescaleoftheiroperations,CircuitCityandBestBuy.Thewayinwhichthesetwocompanieseachapproachedthechallengesofalong‐termshiftinconsumerbuyingbehaviorandtheimmediatechallengeofaneconomicdownturnprovidesausefulnon‐Internetexampleofthevalueofporousness.Whilemanydifferencesbetweenthesetwobusinessescanbecitedfortheireventualdivergentfates(CircuitCitydeclaredbankruptcyin2008),wewilllookonlyattheircontrastingapproachestolabor.Facingsignificantmargindecay,CircuitCityattackedthecostequationfortheirbusinessbyterminating3400ofthemostexperienced(andthusmostexpensive)membersoftheirsales


staff.Reducingcostshadashort‐termpositiveimpact,butwasimmediatelynoticedbyregularcustomerswhocouldnolongerexpecttoreceivequalifiedassistanceintheselectionofproductsinCircuitCitystores.FromanarticleatthetimeintheWashingtonPost:

"IthinkeventhoughsalesweresoftinMarch,thisisclearlywhyAprilsaleswereworse.Theywerereplacedwithlessknowledgeableassociates,"saidTimAllen,ananalystwithJefferies&Co.Inparticular,thetelevisionsshowingdisappointingresultsare"intensivesales"requiringmoreinformedemployees,Allensaid."It’sabig‐ticketpurchaseforsomebody.Andiftheyfeellikethey’renotgettingtherightadviceorarebeingmisledbysomeonewhodoesn’tknow,itwouldbedefinitelyfrustrating.Theywilltaketheirbusinesselsewhere."

Incontrastby2007BestBuywasbusyrollingout“BlueShirtNation,”asocialnetworkfortheiremployees.Ratherthanlookatlaborasacostthatcouldeasilybereducedbyterminatingthemostexperiencedemployees,BestBuy’sapproachwastoinvestinandcelebratetheirstaff,creatingwaysfortheirmostexperiencedsalespeopletogainrecognitionandrespectintheorganizationbysharingtheirownideasandexperiences.BlueShirtNationhasbecomeanengineforinnovationwithinBestBuy,allowingdistantemployeeswhoperformsimilartasks,butneverwouldhavecomeincontactwitheachother,toexchangeideas(andcomplaints!)abouttheirworkingenvironmentandthecompanyasawhole.Theresultsaremanifold,withincreasedmorale,efficiency,serviceinnovation,andprofits,allcomingfromexpandingtheroleofemployeesascontributorstothebusiness.

TheWealthofNetworks

Inhis2006book“WealthofNetworks”YaleLawProfessorYochaiBenklerprovidesanargumentthatad‐hocgroupscanbemoreefficientthanfor‐profitenterpriseswhenengagedincertainkindsofproductiveactivities,focusingononesinwhichthereisalargeintellectualcontribution.SimilartohowAdamSmithinhis1776work“WealthofNations”exploredthenewlyemergingideasoftheindustrialage,Benklerdescribesasetofdynamicsthathesimilarlyproposeswillhaveenormousandradicalimplicationsforthewayinwhichworkisorganized,performed,andrewarded.


Callingthisnewformofactivity“socialproduction,”Benklerexploreshowthecombinationofcheapandwidelyaccessiblecomputation,theconnectingtissueofcommunicationsnetworks,andthedevelopmentofsoftwaretoprovidefacilitationandcoordinationwilltransformthewayourcivilizationproducesgoodsandservices.ButwhileBenklerisparticularlyinterestedinthewayinwhichtheseadhocgroupsprovidealternativestotheactivitiesofcommercialefforts(suchasthedevelopmentofLinuxasanalternativetoMicrosoft’soperatingsystems)ourexperienceshowsthatthis“wealthofnetworks”isalsotransformingthemethodsandorganizationalstructureoffor‐profitbusinesses.CompaniesasvariedasGoogleandBestBuyhavediscoveredthatsocialtechnologiescreateanewsetofdynamicsinthecommonprocessesoftheirbusinesses.Whilethreateningtoindividualsinvestedinoldpowerstructuresoraccustomedtoexistingworkpatterns,whenembracedthesenewmodelsmakesignificantcontributionstoproductivity.

SocialProduction’sImpactonMarketing

Formostorganizations,thefirstpartoftheiractivitiestobeimpactedbytherisingchaosofthesenewmodelsisinthemarketingandcommunicationsdepartments.Thelogicofthewebisalreadytransformingmediaandwithitthewaysinwhichourproductsandbrandsarepromotedandunderstoodbycustomers.Themarketingprofessionalspromotingourbusinessestodaywereeducatedinaneraofone‐waymarketcommunications.Develophighlevelmessages,buyadvertising,briefjournalists–mostofourhardwonknowledgeofwhatworkswhenbuildingmarketsislimitedtothesebroadcastingmodels.Butthewebisdemandingtwo‐wayengagementandisdrawinginouremployeeswithorwithoutourconsent.Theaveragemarketerstruggleswithmultiplechannelsofcommunicationsandwiththeideaofusingeverydayvoicesviablogs,microblogsandsocialnetworkstocommunicateabouttheirproductandbrand.Inmanyrespectsthatchallengeisinternaltomarketing–weaningimaginativepeopleofflargecreativebudgetsandfocusingthemonmanymorebutsmallerchallenges.Butanimportantpartoftheresistancecomesfromtheperceivedlossofcontrolthatthesenewmediumsbring.


Theriseofthefourthestatehaslongposedachallengetothehegemonyofcorporationsinconstructingtheirownstoriesinthemarketplace.“Porousness,”(seeexplanationabove)wasalreadyacceleratingthecapabilitiesofmediacompaniesinthe1990sasimprovingcommunicationsnetworksmadeitevereasierforemployeesandcustomerstoofferthemarketalternativeperspectivestocompanysanctionedviews.Droppingthecostofcommunicationstovirtuallyzerohasmadeeveryindividualintoakindofmediaoutlet,creatingacacophonyofcompetingperspectivesaroundeverycompany.Control,ifiteveractuallyexisted,hasbeenthoroughlylost(orisintheprocessofbeinglost)byeveryorganization.Marketingandcommunicationsprofessionalsmustembraceopencommunicationsstrategiesinordertoengagewiththesevibrantmarketplaces.Butinsodoingtheywillbringchangeintotheirorganizationsaswell.

Figure2:Emergentorganizationalchange


BeyondMarketing

Onceanorganizationbeginstorecognizethepower(andchallenges)inherentinopencommunications,thecontentofthosecommunicationswillbegintoimpacteverybusinessfunctionfromproductdevelopmenttocustomerservice.Externalpressureonspecificcompanyactivitiesorproductaspectswillempowerinternalactivists,eagertotransformcompany‐marketrelations.Customerswillsuggestproductfeaturesorimprovements,challengingthebeliefthatnewproductdevelopmentshouldbedoneinsecrecy.Productsupportwilloccurinadhocpublicexchanges,threateningthenotionthatcustomerservicecommunicationsoccurinprivatebetweenthecompanyanditscustomers.Companyactivitiesthatraisequality,ethical,orlegalissueswillbedebatedopenly,bringingnewpressuresonhoworganizationsconductthemselves.Whilesomecompanies,likeBestBuy,willembracethesechangesandlearntoturnthemtotheiradvantage,otherswilltrytopickandchooseamongstthevariouselements.Butanunderlyinglogicbindsthesenewpracticestogetheranddemandsanoverallrevisionofmanagementphilosophy,organizationalstructure,andbusinesspractices.

Figure3:Anevolvingmodelofenterpriserelationships


OpenManagement

Openmanagementisatermweusetodescribenewprocessesthatallowcompaniestocreateorganizationalresponsiveness,innovationandgrowthinthetimescalesthatourcurrenteconomydemands.Inthebeginningofthetwentiethcentury,FrederickWinslowTaylorgaveanametothenewlyevolvingtechniquesofthetimeneededtomanageindustrialscalebusinesses.Callinghisnewdiscipline“scientificmanagement,”Taylor’sideasseemedradicalinhisday.Scalerequiredthedevelopmentofformsofmanagementthathavebecomethelegacyproblemofthe21stcentury–commandandcontrol,dissociativehierarchy,strictadherencetofinancialobjectives,andrigidreportingprocedures.Theopenmanagementhypothesisisthatpeertopeercommunicationandcollaborationwhichusesincreasinglycheapandaccessiblecomputernetworkswillbreakdownthecommandandcontrolstructure,re‐associatedistributedmembersofanorganizationpreviouslyseparatedbyhierarchy,andevenprovidealternativestorigidreportingprocedures,butnonethelessalloworganizationstoachieveorexceedthesameobjectives.Inadditiontoashiftinthinking,inordertosucceedtheenterpriseneedstointroducetechnologiesthatsupportthismoreproductiveorganizationalmodel.Theseneedtobebackedbyincentives,bothemotionalandfinancial,thathelpovercomecynicismandrelationshiproadblocks.Thosetechnologiesinclude:

• internalsocialnetworksthatsupportcollaborationandwhichblurcorporateandsocialboundaries

• innovationplatformsthatcreatetheinnovationengineto

frequentlyredefinecorebusiness

• communityplatformswherecorporationscantakealeadorsimplyparticipate

• eco‐systemplatformsandopenAPIstoconsolidaterapidfireinnovationandcreateopenmarketingchannelsthatdelivertoirrationalmarkets

• predictionmarketsthatrevealthecrowdsviewofprogress


• ideagorastofosterasenseofopenideationwhereideasaremoreintegraltocorporateculture

• socialmediatoolssuchasblogsandtweetstoenablecommunicationswithcustomersacrossthecompany

• Opendataplatformstocollatedataandinsightsfromtheopinionandsentimentstreamoftheweb.

Thesearethetypesoftechnologiesyoucaninitiateonanexperimentalbasis,providingalanguageofchangewhiletheemphasisisstilloncontinuity.Thechangestheseplatformsbringarenonethelessprofound.Likeanytechnology,themachineislessthanhalfthestory.Anotherpartisthedegreetowhichtheypromoteacollaborativeenvironmentwherevalueissignaledbetweenpeopleandtoseniormanagement.Butperhapsthemostimportantpartisthedegreetowhichseniormanagementunderstandsandcommunicatesanewdirectionandoracontext.Wesuggestleadingwithcommunicationsactivitiessuchasthiscancreateacommonbasisforengagementthatcanpermeateorganizations,giventhatmanyorganizationsarefundamentallymarketing‐led.Infact“openness”isredefiningorganizationsandmarketsinkeyareasoftheeconomy.

Figure4:Theevolvingenterprisemodel


Thesetypesofinitiativescouldbepreciselywhatmaybridgethereturnonassetsthatmanyeconomiescurrentlylack.Buttheyinvolveleadersrenouncingthecrownjewelsoratleastacknowledgingthatthepeopleyouemployandthesystemsyoumanageneedtobetransformed.Aswemovetoopenmanagementthejobofthemanagerbecomestoleadinnovativeexercisessuchasanopencontentstrategy‐‐thejobistopersuadeandleadstaffinawaytheyarenotthreatenedbytherebrandingoftheorganization.Thatrebrandingtakesthemawayfromthecertaintiesofhierarchy.Wethoughtadecadeagoitwouldleadthemtoanon‐hierarchicalorganization.Wenowknowithastoleadthemtoanopen,porousorganizationthatexistsinastateofflux.Fluxis:

• Anerosionofanybrandvaluesthatspeaktocertainty

towardsanewsetofbrandvaluesthatspeakstocommunication,connection,reach,experimentation,trial,trust,community,eco‐system.

• Anerosionofinternalworkprocessestowardsworkprocessesthatcrossthestaff‐marketdividewhetherwithsuppliers,newentrants,ideagenerators,orcustomers.Oncecrossed,thecombinedcommunityisinherentlynetworkbasedandneedsnetworktechnologiesthatoptimizeefficacyandcapturevalue.

• Anerosionofinternalhierarchiesandtraditionalmessagingcontroltowardsorganizationswherethebestcommunicators,advocatesandnetworkersthrive.

• Atransitiontoinnovationprocesseswheredependencyswitchesfrominternallab‐basedapproachestotheeco‐system;itneedstobeaccompaniedbyan“everyonecounts”attitudethatrequiresgreatnetworkingtechnologyandsupportaswellasresponsivenesstogetitright.Thewatchwordisyoudon’tknowwhereyourbestideaswillcomefromandyoucannotaffordtomissthem.

• Atransitiontostructuresthatmakeorganizationsproactiveinchangeprocessesandresponsiveincommunications,i.e.messagingthatsays,thisisourpathtothefuture;intelligencethatallowsimmediateresponsivenesstotheinevitablecritique(andtobemanagemistakesopenlyandhonestly).


• Newplatformsandbusinessintelligencethatallowleaderstooverseeandleadthesenewprocessesandcapturevalue.

TheRequirements

Onceyoubecomemoreprogrammaticaboutthis,ratherthansayingwewilladoptblogging,twitterorsocialnetworksinordertosell,thenthequestionsyouaskchangeto:Howdowerapidlyde‐layer,changeattitudestoworkroles,createnewresponsibilitycentersandnewjobdescriptions,createaffinitybetweenemployees,suppliersandcustomers,embraceanybrightmindintotheproductdevelopmentandmarketingprocess,andallowawidercommunitytohelpusensurewearesettingtherightgoalsforourbusiness,communityoreco‐system?Thesearethekindsofquestionsyoumightbetemptedtoaskenroute:

• HowdoIretainsomedegreeofcontroloverthethingsbeingsaidaboutme?

• HowdoIcontrolwhatmystaffaredoing?• HowcanIunderstandnetworksthewayIunderstand

hierarchy,i.e.whatarethereportingprocedures?Thetruthisyoudonotcontrolstaffanyway.Chancesareyourindustryisunder‐deliveringincriticalwaysbecauseofHRissues;youcannotcontrolwhatissaidaboutyou–youcanonlypretendto.Wherethefuturebecomesmorepalatableforexecutives–whodoneedoversightfacilities–isthatcomputernetworkscansupportmuchofwhatwehavereferencedhere,softwarebasedcommunicationssupportandnewplatformsdesignedtomakethenewopenandextendedorganizationaccountable.


Figure5:Athreepartapproachtochange


Forexample,platformsthathelpinthecommunitygenerationofideascomewithbuiltinmetrics.Webconversationsareinherentlymonitorable.Alldataistheretobemined.Employee’sconversationswithyourcommunityarepartofyourrecordofvaluecreation.Measurementandreportingarenottheissues.Theissueultimatelyischange–howquicklyareyoupreparedtorespondtotheneedforchange;howwelladaptedareyoutoleadit?Theprocess,inourview,iseasilydivisibleintocategoriesthatallowyoumaximuminfluence.Themodernchangeprocessesisroughlydivisibleintothesethreecategories(SeeFigure5).

CommunicationsHowyoucommunicatenewvaluesinternallycoupledtohowyoufacilitateemployeestocommunicateexternallytocustomers,prospects,existingsuppliersandpotentialsuppliers.Thesumtotalshouldbeanewbondoftrustbetweensuppliers,potentialsuppliers,employees,customersandprospects.

KnowledgeHowyoucapturebusinessintelligencethatallowsyoutobebothproactiveincommunicatingyournewvaluestotheaudiencesthatmatter;andhowyouareabletorespondalongthewayaschangedrawscriticismyourway.Thesumtotalshouldbearesponsiveorganization.

PlatformsThesupporttoolsyouneedtooptimizecommunications,generatenewideas,convertideasintoproductsthatyoursupplierandcustomercommunitybuyintoandthatletyourealizevalue–ascreatedbyyoureco‐systemandemployees.Thesumtotalisatrustsystemthatallowsyoutosetmetrics,monitorprogressandgeneratereports.


ConclusionWeseebusinessandsocietyinneedofprofoundtransformation.Atthesametimewebelievethetoolsexisttomakethistransformationmoreprofoundandmorerapidthananywehavepreviouslyexperienced.Businessactuallythrivesontransformation.Organizationscanadoptachange‐orientedmindsetandbegintheprocesswithexternalcommunicationsinitiatives,understandingthatarapidfeedbackloopwillcarrythischangebackintotheorganizationinavarietyofforms.AsEricSchmidtsaidwhenaskedwhetherthelessonshehadlearnedatGooglecouldbeappliedtoanyotherorganization:“Everyonewantsthesamething,theywanttobeheard…ifyougotoaso‐calledboringoldcompanypeopletherewanttobeempoweredtoo,buttheculturedoesn’tallowthis…”Begintochangethatcultureandbehavioralchangewillfollow.

open management final_9.21

Documents