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". Note: This slide show was first presented at the PMI Montreal Symposium on October 8, 2014

1. More than a buzz word: What
Enterprise 2.0 might look like
(Hint: Not a triangle)
Elisabeth Bucci
Projissima inc.

2. Agenda
• Introduction/Expectations
• History
• Why Change?
• What is Enterprise 2.0?
• Examples, Take-away
• Go forth…

3. Introduction
• Who am I?
• Why am I here?

4. 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

5. Before we can understand
Enterprise 2.0, we must
understand Enterprise 1.0

6. History
• Second Industrial Revolution 1860 - 1914
• Perfect storm
– electricity
– interchangeable parts
– telegraph
– railroads
• Assembly lines
• Economies of scale: Bigger is cheaper

7. How to manage “bigness”
Command-Control = Enterprise 1.0
= 260-year-old business model

8. 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

9. 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

10. 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

11. Why change?
WHAT 1880s Today
Communication 1:1 many:many
Worker education illiterate peasants college / university
public education
access to
information
only the boss everywhere
markets England, US, Europe global village
social structure class system equality
capital lots, gave birth to
stock market
small, private-owned
batch size BIG 1

12. 1:many
Web 1.0 Web 2.0
many:many
Web 2.0

13. 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?

14. 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

15. “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?

16. 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

17. Why change?
Keep up or be gone.

18. 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

19. 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)*

20. 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

21. Enterprise 2.0 needs…
New Leadership Style
A new shape
Web 2.0
Collaboration

22. PM
Change the shape

23. PM
Is this a triangle?

24. PM PM
or a circle?

25. PM PM
or a web?

26. We need to change the
shape
not triangles
not squares
but circles
many circles
all interconnecting
Change the shape

27. 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”

28. 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.

29. 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

30. role of
executive:
to command
and control
power flows
from
executive to
employee
Enterprise 1.0

31. power flows from
networks to
executive
role of executive:
to inquire and align
Enterprise 2.0

32. Can a “leader” who has
climbed a pyramid learn to
“inquire and align?”

33. E1.0 E2.0

34. Web 2.0 is just starting
to tip the balance…

35. 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)

36. 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

37. 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!!

38. Valve
• video games development and distribution
• privately owned
• 300+ employees
• estimated profit $8 - $16 M / employee
– more than Google/Apple
• Employee Handbook

39. 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

40. 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

41. 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

42. 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!

43. 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.

44. 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

45. Keep learning
• Deb Lavoy articles used as research for this
presentation:
Is Collaboration Limited by Structure
If Social Business is the Answer, What is the
Question
Or just read everything she’s written, see here.
• Go back through this presentation and read
the hyperlinked documents

46. 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

47. Let’s keep talking
blog: The Passionate Project Manager
Twitter: @ElisabethBucci
LinkedIn: Elisabeth Bucci
email: elisabeth@projissima.ca

48. Go forth…
and change the world.