A New Era of Leadership - From Hierarchy to Network

A New Era of Leadership - From Hierarchy to Network
A NEW ERA OF LEADERSHIP From Hierarchy To Network PASI MÄENPÄÄ Executive Vice President, Corporate Customers
ALL SERVICES THAT MATTER ALREADY HAVE SOCIAL FEATURES RATE VOTE COMMENT SHARE ON
FINLAND 40% are on Facebook. Source: Facebakers 5/2010
FINLAND 86% look for information on the web about products and services. Source: Tilastokeskus
FINLAND 5 OUT OF 10 top websites are social media services. Source: Alexa
FINLAND 19 20 (except nordea.ﬁ) OUT OF 20 top websites include social media features. Source: Alexa
SOCIAL MEDIA = DIGITAL MEDIA
DIGITAL MEDIA PHYSICAL MEDIA
LEISURE & FREE TIME CHANGES OUR CULTURE MEETINGS SERVICE SALES MANAGEMENT COLLABORATION
MANAGEMENT IS OFTEN DEFINED AS COMMUNICATION COORDINATION RESPONSIBILITY
COLLABORATION IS ALSO COMMUNICATION COORDINATION RESPONSIBILITY
COMMUNICATION ✖ COORDINATION ✖ RESPONSIBILITY ALL EFFECTIVE MANAGEMENT & COLLABORATION TODAY IS DIGITALLY DISTRIBUTED
CLOSED INNOVATION → OPEN INNOVATION Henry Chesbrough OUTSOURCING → CROWDSOURCING Jeff Howe MASS PRODUCTION → MASS COLLABORATION Clay Shirky CENTRALIZED PRODUCTION → COMMONS-BASED PEER-PRODUCTION Yochai Benkler
? HOW DID WE GET HERE
1 EFFICIENCY
BACK TO THE INDUSTRIAL REVOLUTION
ABSOLUTE CENTRALIZATION VLADIMIR LENIN Soviet Union, 1917-1924 Let’s run the country like a big factory!
CENTRALLY PLANNED ECONOMY TOP-DOWN DECISIONS ABOUT RESOURCES
ABSOLUTE DECENTRALIZATION ADAM SMITH Wealth of Nations, 1776 From mercantilism to free market economy!
THREE FORCES Rational Self-Interest Competition Supply and Demand CREATES ECONOMIC BALANCE
Theory of transaction costs RONAL COASE The Nature Of The Firm, 1937 Vs. CD-Rom Spotify
Internet reduces DECENTRALIZATION CENTRALIZATION transaction costs CLOUD COMPANY
Infrastructure Infrastructure: Foundation PaaS
Storage: Information Dropbox S3
Computing: Automation Virtual Desktop Infrastructure
Workforce: Collaboration Meeting Center
Ideas: Innovation
... ... ... Sales, Marketing, CS: Customer interactions Viihde
CLOUD COMPANY ... ... ... Sales, Marketing, CS: Customer interactions Ideas: Innovation Viihde Workforce: Collaboration Computing: Automation Virtual Desktop Meeting Center Storage: Information Infrastructure S3 Infrastructure Dropbox PaaS
2 PREDICTABILITY
F=ma IF WE HAVE GOOD ENOUGH MEASURING INSTRUMENTS, WE CAN UNDERSTAND THE LOGIC OF NATURE. Isaac Newton
Plan Do Act PDCA Check MANAGEMENT IS PREDICTION. W. Edwards Deming
MEASUREMENT AND PREDICTABILITY. THIS IS WHAT COMPANIES STRIVE FOR.
THE N-BODY PROBLEM HENRI POINCARÉ Mathematician (1854-1912)
INTERACTION ENERGY KINETIC (UNPREDICTABLE) ENERGY (PREDICTABLE)
THERE IS ALSO INTERACTION ENERGY BETWEEN PEOPLE AND ORGANIZATIONS.
SHOULD WE UPDATE OUR MANAGEMENT WORLD VIEW?
COMMUNICATION PARADIGM SHIFT PAST TODAY • Point-to-point • Context based • Linear • Temporal • Pre-deﬁned • Emergent • Prediction • Responsiveness LINEAR WORK CREATIVE WORK WHAT IS THE SEQUENCE? WHAT IS THE CONTEXT?
FOLLOW LOGIC MANAGERS CHOOSE THEIR FOLLOWERS. NET GENERATION CHOOSES WHO TO FOLLOW. BARACK OBAMA 4 MILLION FOLLOWERS
FOLLOW LOGIC MANAGERS CHOOSE THEIR FOLLOWERS. NET GENERATION CHOOSES WHO TO FOLLOW. TONY HSIEH 1.7 MILLION FOLLOWERS
DO WE ALLOW MISTAKES AND CAN WE LEARN FROM ALL PRACTICES?
“ PLANS ARE NOTHING; PLANNING IS EVERYTHING. ” – Dwight D. Eisenhower
DO WE INCLUDE ITERATION IN ALL OUR PLANS AND ACTIONS?
FOR MOST COMPANIES LEARNING IS A SEPARATE ACTIVITY CARRIED OUT BY HR DEPARTMENTS.
ARE LEARNING AND RESPONSIVENESS INHERENT IN ALL OUR PROCESSES?
MANAGEMENT IN AN UNCERTAIN ENVIRONMENT = ENABLING & EMPOWERING THE INTERACTION OF PEOPLE.
3 RESPONSIBILITY
IN ALL PHYSICAL MEETINGS THERE ARE MORE OR LESS THE WRONG PEOPLE PRESENT.
IN DIGITAL WORKING ENVIRONMENTS THERE COULD BE MORE OR LESS THE RIGHT PEOPLE PRESENT.
DO WE ENABLE EMERGENT COMMUNICATION PRACTICES? Meeting Center TelePresence
100 000 CANCELLED FLIGHTS 10 MILLION STRANDED TRAVELLERS
ALL EFFECTIVE TEAMS TODAY ARE DIGITAL & DISTRIBUTED. VIRTUAL TEAMS ARE AS REAL AS PHYSICAL TEAMS. Image: Halo Wars, Microsoft
IN ONLINE GAMES RESPONSIBILITY IS TAKEN, NOT GIVEN. • 10 minutes • 2 hours • for today • ... Image: World of Warcraft, Blizzard Entertainment
WHAT NET GENERATION IS SAYING IS THAT WORK TODAY IS A BADLY DESIGNED GAME.
INTRODUCTION OF GAME ELEMENTS 2009 2010 Ref: Alexa.com LOCATION-BASED SERVICES COME AND GO. UNTIL THE GAME GOT PROPERLY DESIGNED.
STATS BADGES LEADERBOARD
WORK IS A COLLABORATIVE AND COMPETITIVE GAME.
WHAT MATTERS IS HOW THE NETWORK RESPONDS TO INDIVIDUAL ACTIONS. Measure: INTERACTION ENERGY IN ADDITION TO INDIVIDUAL OUTPUT
WORK TOMORROW IS DIGITALLY DISTRIBUTED EFFICIENT COORDINATION HIGH QUALITY COMMUNICATION WIDE TAKING OF RESPONSIBILITY
FOLLOW ME. From Hierarchy To Network Designed by: PASI MÄENPÄÄ Executive Vice President, Corporate Customers

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