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How-to Leverage the Power of Feedback
and the Law of Participation

Julien Le Nestour


@jnestour | coreedges.com
Enterprise 2.0 Summit | Frankfürt - Nov 09
“The evidence is mounting that corporate
prediction markets work as advertised, delivering
quick, accurate, and decisive predictions in areas
of great interest.
So are there any good reasons left for not using
them, or at least experimenting with them?
I ask seriously: why would any enlightened
company not avail itself of this technology?”


                                                     —Andrew McAfee

SOURCE: http://andrewmcafee.org/2009/07/mobs-rule/
“The evidence is mounting that corporate
prediction markets work as advertised, delivering
quick, accurate, and decisive predictions in areas
of great interest.
So are there any good reasons left for not using
them, or at least experimenting with them?
I ask seriously: why would any enlightened
company not avail itself of this technology?”


                                                     —Andrew McAfee

SOURCE: http://andrewmcafee.org/2009/07/mobs-rule/
E2.0 tools: powering interactions




E2.0 tools: hyper-efficient as interaction enablers

E2.0 tools: enable network (+ others) effects

E2.0 tools: enable increasing returns to scale
E2.0 tools: powering interactions
            Real Challenge:
               How to achieve
E2.0 tools: hyper-efficient Adoption”?
          “Enterprise as interaction enablers
E2.0 tools: enable network (or combinatorial,
       ➡
etc.) effects
           End-users use them
       ➡
E2.0 tools: IT deploys them
            enable increasing returns of scale

       ➡ Executives support them
Real Challenge:
             “Enterprise Adoption”


matt knoth
1. Unbundling “employees”

 From...               To...


                    End-Users
Employee

                Decision          IT
                Makers         Managers
2. Organizational Context


From generic employee concept...
“Employee” concept




                         Company A

PHOTO: iStockPhoto
“Employee” concept




B           A        C
2. Organizational Context


From generic employee concept...


... to employee shaped by
organizational context
Organizational
                 Culture
  Structure




                  Power
  Workflows
                 Structure
True “employee” concept



 Individual position +
Organizational Context
How much do they shape us?
“Street Corner Society”



—William Foot Whyte (1943)
scion_cho
“The Physical Effect on the
Individual of the Idea of Death
suggested by the Collectivity.”

        —Marcel Mauss (1926)
3. Smart, rational actors

StakeHolders = Actors who:

➡ are their ultimate decision-makers
➡ have goals and enjoyable actions
➡ use all leverage possible to achieve
these
Actors



➡ unbundle different types of employees
➡ actors’ perception, self-perception and
goals are strongly shaped by
organizational context
➡ actors are smart, rational, and make
their own decisions
Adoption?




➡ Simple: when it satisfies own goals at
an acceptable cost

➡ Explore all 3 actors using the concept
of “Return on Attention”
Return on Attention



Michele Catania
ashley rose   EUSKALANATO
Perception   Cognition




ashley rose                            EUSKALANATO
Optimizing attention through perception

killthebird
Attention



Attention as a resource
is becoming scarcer and scarcer...




Information & Stimuli
Attention




     scarce = valuable


Information & Stimuli
Attention



   Key concept/tool:
  Return On Attention

Information & Stimuli
ROA: end-user level



pchweat
Predictor of Value



➡ evaluated at the individual, end-user
level
➡ optimizing the scarcest resource
➡ if ROA is good enough, will use tools
Defining ROA



➡ perceived return from a unit of time
spent using an application
➡ Return =
information, authority, etc. minus
opportunity cost, monetary cost if any,
etc.
Characteristics of ROA




➡ impacted by every “non-nil” factors
➡ as weak as the weakest link in the chain
➡ subjective and situated
Criteria Examples



                          ➡ Priority versus other
➡ Application Usability   activities?
➡ Training required?      ➡ Need to change
➡ RSS feeds/alerts?       established workflows?
➡ Mobile Interface?       ➡ Perception from
➡ Hardware limitations?   common organizational
                          culture?
ROA as predictor of adoption



➡ At individual level, but dependent on
organizational context (can emphasize dumbness)
➡ Understand finely anticipated ROA at individual
level
➡ If ROA>0 absolutely and relatively to other
activities/applications
➡ Predictor of value, hence of adoption
ROA: IT level



ansel mcadams
ROA as IT metric



➡ Use ROA as an aggregated set of criteria:
 ➡ Properties of application
 ➡ How these properties weave together with the
 corporate fabric
➡ ROA: aggregates all the single trade-offs each
application incorporates
➡ From features to ROA for application comparison
➡ Now, what is the impact of a tool?
ROA as component




ROA
ROA as component


      X
ROA       Population
            Subset
Ex. of criteria for Typology

                                     Criteria                                          Definition
                                                                          Applications or Activities are
                     Corporate Specificity
                                                                             unique to company?
         Transformational, Transactional,
                                                                                    Nature of Work
                      Tacit
              Knowledge Manipulation /
                                                                           Nature of Knowledge Work
                  Decision-Making
                                                                           “Every knowledge worker in a modern
                                                                      organization is an “executive” if, by virtue of his
                                                                      position or knowledge, he is responsible for a
                 Drucker’s executive scale                           contribution that materially affects the capacity
                                                                       of the organization to perform and to obtain
                                                                                           results.”


SOURCE: McKinsey Quarterly; The Effective Executive - Peter Drucker
ROA as component


      X                X       $$$
ROA       Population       Relative Value
            Subset         per positions
ROA as component


      X                X       $$$          X         !
ROA       Population       Relative Value       Frequency of
            Subset         per positions           activity,
                                                weighted by
                                                  criticality
ROA as component


      X                X       $$$          X         !
ROA       Population       Relative Value       Frequency of
            Subset         per positions           activity,
                                                weighted by
                                                  criticality


Weighted ROA = anticipated effect
               on Business KPI
Weighted ROA: portfolio management




➡ Weighted ROA enables comparison between
different IT projects: automation, CRM, social
enterprise computing
➡ Enables IT Portfolio management to both invest
and arbitrate between projects
How should IT use ROA?



➡ Develop expertise in anticipating ROA for different
types of positions
➡ Develop expertise in approximating weighted ROA
➡ Improve ROA of existing applications/processes
  ➡ Number of strategies: consumer apps, internal
  SAAS, etc.
➡ Manage portfolio agnostically with ROA as key
metric (NOT ROI)
Indeed...
ROA: Executive level



Paolo Màrgari
Interest of weighted ROA for executives




➡ Make concrete what hitherto unknown
➡ Incorporate and mitigate the risks (decision-
making)
➡ Fully participate in IT decision-making
ROA: congruence tools + organization




➡ Understand ROA comes from congruence of tools
and organizational context
➡ ROA is situated: Focus on bounded use cases,
processes of high value: prioritization
Re-engineer organization



➡ Re-engineer organization to extract full value from
E2.0 technologies
➡ Institutional Innovation
➡ Redefine business metrics, based on new
organizational modes and tools
➡ In parallel with E2.0 technologies introduction
Ex.: Supplier Prediction Market



➡ Emile Servan-Schreiber (Newsfuture)
➡ Ex. of Boeing dreamliner
➡ PMs threaten established internal org
➡ PMs threaten supplier-customer relationship
➡ Institutional innovation: PM run by neutral 3rd-
party, confidentially at supplier, with aggregate
results and metrics provided to customer (ex. delay of
more than 6 months)
How-to Leverage the Power of Feedback
and the Law of Participation?


 ➡ Depends on each organization
 ➡ Need to take a holistic view: quality of technology,
 but mainly organizational context
 ➡ Patterns exist: E2.0 industry is not making it simple
 to identify and use them
 ➡ Consultants: also look outside of E2.0 world,
 towards incredible companies, to look for innovative
 organizational context, not tools
Thank You


@jnestour | coreedges.com

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How to Leverage the Power of Feedback and the Law of Participation | Enterprise 2.0 Summit in Frankfürt Nov. 09

  • 1. How-to Leverage the Power of Feedback and the Law of Participation Julien Le Nestour @jnestour | coreedges.com Enterprise 2.0 Summit | Frankfürt - Nov 09
  • 2. “The evidence is mounting that corporate prediction markets work as advertised, delivering quick, accurate, and decisive predictions in areas of great interest. So are there any good reasons left for not using them, or at least experimenting with them? I ask seriously: why would any enlightened company not avail itself of this technology?” —Andrew McAfee SOURCE: http://andrewmcafee.org/2009/07/mobs-rule/
  • 3. “The evidence is mounting that corporate prediction markets work as advertised, delivering quick, accurate, and decisive predictions in areas of great interest. So are there any good reasons left for not using them, or at least experimenting with them? I ask seriously: why would any enlightened company not avail itself of this technology?” —Andrew McAfee SOURCE: http://andrewmcafee.org/2009/07/mobs-rule/
  • 4. E2.0 tools: powering interactions E2.0 tools: hyper-efficient as interaction enablers E2.0 tools: enable network (+ others) effects E2.0 tools: enable increasing returns to scale
  • 5. E2.0 tools: powering interactions Real Challenge: How to achieve E2.0 tools: hyper-efficient Adoption”? “Enterprise as interaction enablers E2.0 tools: enable network (or combinatorial, ➡ etc.) effects End-users use them ➡ E2.0 tools: IT deploys them enable increasing returns of scale ➡ Executives support them
  • 6. Real Challenge: “Enterprise Adoption” matt knoth
  • 7. 1. Unbundling “employees” From... To... End-Users Employee Decision IT Makers Managers
  • 8. 2. Organizational Context From generic employee concept...
  • 9. “Employee” concept Company A PHOTO: iStockPhoto
  • 11. 2. Organizational Context From generic employee concept... ... to employee shaped by organizational context
  • 12. Organizational Culture Structure Power Workflows Structure
  • 13. True “employee” concept Individual position + Organizational Context
  • 14. How much do they shape us?
  • 17. “The Physical Effect on the Individual of the Idea of Death suggested by the Collectivity.” —Marcel Mauss (1926)
  • 18. 3. Smart, rational actors StakeHolders = Actors who: ➡ are their ultimate decision-makers ➡ have goals and enjoyable actions ➡ use all leverage possible to achieve these
  • 19. Actors ➡ unbundle different types of employees ➡ actors’ perception, self-perception and goals are strongly shaped by organizational context ➡ actors are smart, rational, and make their own decisions
  • 20. Adoption? ➡ Simple: when it satisfies own goals at an acceptable cost ➡ Explore all 3 actors using the concept of “Return on Attention”
  • 22. ashley rose EUSKALANATO
  • 23. Perception Cognition ashley rose EUSKALANATO
  • 24. Optimizing attention through perception killthebird
  • 25. Attention Attention as a resource is becoming scarcer and scarcer... Information & Stimuli
  • 26. Attention scarce = valuable Information & Stimuli
  • 27. Attention Key concept/tool: Return On Attention Information & Stimuli
  • 29. Predictor of Value ➡ evaluated at the individual, end-user level ➡ optimizing the scarcest resource ➡ if ROA is good enough, will use tools
  • 30. Defining ROA ➡ perceived return from a unit of time spent using an application ➡ Return = information, authority, etc. minus opportunity cost, monetary cost if any, etc.
  • 31. Characteristics of ROA ➡ impacted by every “non-nil” factors ➡ as weak as the weakest link in the chain ➡ subjective and situated
  • 32. Criteria Examples ➡ Priority versus other ➡ Application Usability activities? ➡ Training required? ➡ Need to change ➡ RSS feeds/alerts? established workflows? ➡ Mobile Interface? ➡ Perception from ➡ Hardware limitations? common organizational culture?
  • 33. ROA as predictor of adoption ➡ At individual level, but dependent on organizational context (can emphasize dumbness) ➡ Understand finely anticipated ROA at individual level ➡ If ROA>0 absolutely and relatively to other activities/applications ➡ Predictor of value, hence of adoption
  • 35. ROA as IT metric ➡ Use ROA as an aggregated set of criteria: ➡ Properties of application ➡ How these properties weave together with the corporate fabric ➡ ROA: aggregates all the single trade-offs each application incorporates ➡ From features to ROA for application comparison ➡ Now, what is the impact of a tool?
  • 37. ROA as component X ROA Population Subset
  • 38. Ex. of criteria for Typology Criteria Definition Applications or Activities are Corporate Specificity unique to company? Transformational, Transactional, Nature of Work Tacit Knowledge Manipulation / Nature of Knowledge Work Decision-Making “Every knowledge worker in a modern organization is an “executive” if, by virtue of his position or knowledge, he is responsible for a Drucker’s executive scale contribution that materially affects the capacity of the organization to perform and to obtain results.” SOURCE: McKinsey Quarterly; The Effective Executive - Peter Drucker
  • 39. ROA as component X X $$$ ROA Population Relative Value Subset per positions
  • 40. ROA as component X X $$$ X ! ROA Population Relative Value Frequency of Subset per positions activity, weighted by criticality
  • 41. ROA as component X X $$$ X ! ROA Population Relative Value Frequency of Subset per positions activity, weighted by criticality Weighted ROA = anticipated effect on Business KPI
  • 42. Weighted ROA: portfolio management ➡ Weighted ROA enables comparison between different IT projects: automation, CRM, social enterprise computing ➡ Enables IT Portfolio management to both invest and arbitrate between projects
  • 43. How should IT use ROA? ➡ Develop expertise in anticipating ROA for different types of positions ➡ Develop expertise in approximating weighted ROA ➡ Improve ROA of existing applications/processes ➡ Number of strategies: consumer apps, internal SAAS, etc. ➡ Manage portfolio agnostically with ROA as key metric (NOT ROI)
  • 46. Interest of weighted ROA for executives ➡ Make concrete what hitherto unknown ➡ Incorporate and mitigate the risks (decision- making) ➡ Fully participate in IT decision-making
  • 47. ROA: congruence tools + organization ➡ Understand ROA comes from congruence of tools and organizational context ➡ ROA is situated: Focus on bounded use cases, processes of high value: prioritization
  • 48. Re-engineer organization ➡ Re-engineer organization to extract full value from E2.0 technologies ➡ Institutional Innovation ➡ Redefine business metrics, based on new organizational modes and tools ➡ In parallel with E2.0 technologies introduction
  • 49. Ex.: Supplier Prediction Market ➡ Emile Servan-Schreiber (Newsfuture) ➡ Ex. of Boeing dreamliner ➡ PMs threaten established internal org ➡ PMs threaten supplier-customer relationship ➡ Institutional innovation: PM run by neutral 3rd- party, confidentially at supplier, with aggregate results and metrics provided to customer (ex. delay of more than 6 months)
  • 50. How-to Leverage the Power of Feedback and the Law of Participation? ➡ Depends on each organization ➡ Need to take a holistic view: quality of technology, but mainly organizational context ➡ Patterns exist: E2.0 industry is not making it simple to identify and use them ➡ Consultants: also look outside of E2.0 world, towards incredible companies, to look for innovative organizational context, not tools
  • 51. Thank You @jnestour | coreedges.com