January 2011 mbodlg.org program

1. The Leadership Implications of the
Evolving Web
Grady McGonagill, Ed.D.
A
McGonagill Consulting
Massachusetts Bay Organization
Development Learning Group
January 19, 2011

2. Leadership Implications of the Evolving Web Study
 Context:
- Bertelsmann Stiftung Leadership Series
 Motivation:
- Document innovative examples of Web 2.0 tool applications
 Methology:
- Review of books/articles, Web
- Expert interviews
 Focus:
- Individual sectors (business, government, social)
- International
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3. “Aha - Moments”
 The Web is bringing about a revolution with few precedents
 Its impact is in the form of new mindsets and culture more than new
tools
 Implications for leadership: a new paradigm
 Implications for organizing: a new sector—a 21st Century Virtual
Commons
 Most intriguing new concept: “emergence”
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4. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 From organization-centric to network-centric leadership
 From organizations as “machines“ to organizations as “organisms“
 From planning and controlling to learning and adaptation
 Need for new levels of leadership capacity
 From Generation X to Generation Y
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5. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 From organization-centric to network-centric leadership
 From organizations as “machines“ to organizations as “organisms“
 From planning and controlling to learning and adaptation
 Need for new levels of leadership capacity
 From Generation X to Generation Y
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6. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 From organization-centric to network-centric leadership
 From organizations as “machines“ to organizations as “organisms“
 From planning and controlling to learning and adaptation
 Need for new levels of leadership capacity
 From Generation X to Generation Y
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7. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 Need for new levels of leadership capacity
 From organization-centric to network-centric leadership
 From organizations as “machines“ to organizations as “organisms“
 From planning and controlling to learning and adaptation
 From Generation X to Generation Y
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8. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 Need for new levels of leadership capacity
 From organization-centric to network-centric leadership
 From organizations as machines to organizations as organisms
 From planning and controlling to learning and adaptation
 From Generation X to Generation Y
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9. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 Need for new levels of leadership capacity
 From organization-centric to network-centric leadership
 From organizations as machines to organizations as
organisms
 From planning and controlling to learning and adaptation
 From Generation X to Generation Y
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10. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 Need for new levels of leadership capacity
 From organization-centric to network-centric leadership
 From organizations as machines to organizations as organisms
 From planning and control to sensing, adaptating, and
learning
 From Generation X to Generation Y
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11. Need for New Leadership Paradigm:
7 Indicators
 Leadership as an activity rather than a role
 Recognition of leadership as a collective process
 Need for new levels of leadership capacity
 From organization-centric to network-centric leadership
 From organizations as “machines“ to organizations as “organisms“
 From planning and controlling to learning and adaptation
 From Generation X to Generation Y
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12. Criteria for a New Paradigm
 Adaptive
 Supportive of emergence
 Cognizant of complexity
 Integral
 Outcome-oriented
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13. New Paradigms: 5 Examples
 Action Inquiry
 Adaptive Leadership
 CCL’s DAC model
 Integral Leadership
 Theory U
Page 13
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill

14. Developing New Mindsets, Skills, Knowledge, Cultures
 Mindsets: from the need to control to the “art of letting go”
 Skills:
- Old: interpersonal skills, coaching, team/group facilitation, systems thinking
- New: network leadership, leading “Millennials“
 Knowledge: Web 2.0 literacy, cultural literacy
 Culture: “Fehlerkultur “
Page 14
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15. Developing New Mindsets, Skills, Knowledge, Cultures
 Mindsets: from the need to control to the “art of letting go”
 Skills:
- Old: interpersonal skills, coaching, team/group facilitation, systems thinking
- New: network leadership, leading “Millennials“
 Knowledge: Web 2.0 literacy, cultural literacy
 Culture: “Fehlerkultur ”
Page 15
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16. Developing New Mindsets, Skills, Knowledge, Cultures
 Mindsets: from the need to control to the “art of letting go”
 Skills:
- Old: interpersonal skills, coaching, team/group facilitation, systems
thinking
- New: network leadership, leading “Millennials“
 Knowledge: Web 2.0 literacy, cultural literacy
 Culture: “Fehlerkultur ”
Page 16
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17. New Leadership Approaches: Developing New Mindsets,
Skills, Knowledge, Cultures
 Mindsets: from the need to control to the “art of letting go“
 Skills:
- Old: interpersonal skills, coaching, team/group facilitation, systems thinking
- New: network leadership, leading “Millennials“
 Knowledge: Web 2.0 literacy, cultural literacy
 Culture: “Fehlerkultur ”
Page 17
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18. New Leadership Approaches: Developing New Mindsets,
Skills, Knowledge, Culture
 Mindsets: from the need to control to the “art of letting go“
 Skills:
- Old: interpersonal skills, coaching, team/group facilitation, systems thinking
- New: network leadership, leading “Millennials“
 Knowledge: Web 2.0 literacy, cultural literacy
 Culture: “Fehlerkultur ”
Page 18
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19. The (Organizational) Impact of the Web by Sector
1. Business Sector
2. Social Sector
3. Government Sector
4. A 21st Century “Commons“
Page 19
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20. The (Organizational) Impact of the Web by Sector
1. Business Sector
2. Social Sector
3. Government Sector
4. A 21st Century “Commons“
Page 20
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21. The (Organizational) Impact of the Web by Sector
1. Business Sector
2. Social Sector
3. Government Sector
4. A 21st Century “Commons“
Page 21
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22. The (Organizational) Impact of the Web by Sector
1. Business Sector
2. Social Sector
3. Government Sector
4. A 21st Century “Commons“
Page 22
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23. Business Sector
 Challenges and Opportunities
 Examples and Patterns
 Cases
Page 23
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24. Challenges and Opportunities
 “Enterprise 2.0”: The “Open, Networked Enterprise,” reflecting
changes in…
- Corporate boundaries (from closed, vertically integrated to open, networked)
- Innovation (from closed, within company to open, including co-creation with
customers and drawing ideas from a global brain trust)
- Marketing (from one-way “push” strategies to two-way conversations)
- IT capacity (from company-based to the resource pool of the Cloud)
- Intellectual property (from proprietary and protected to open and shared)
- Knowledge (from “stocks,” such as books and libraries, to “flows,” such as
conversations in which contextually relevant information and tacit knowledge
are exchanged)
Page 24
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25. Challenges and Opportunities
 New Ecosystems of Competition and Cooperation, in which…
- Enterprises offer customers not just a product or service, but a platform
capability upon which they can build their own value propositions
- Relationships are a two-way street
- Companies mimic the biological example of “keystone species” that proactively
maintain the health of the entire ecosystem
- Networks of businesses now compete with one another
- Customers act as “Prosumers” (Producers and Consumers)
- Companies operate “on the edge of chaos”
Page 25
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26. Challenges and Opportunities
 New Ecosystems of Competition and Cooperation, in which…
- Companies offer customers not just a product or service, but a platform
capability upon which they can build their own value propositions
- Relationships are a two-way street
- Companies mimic the biological example of “keystone species” that proactively
maintain the health of the entire ecosystem
- Networks of businesses now compete with one another
- Customers act as “Prosumers” (Producers and Consumers)
- Companies operate “on the edge of chaos”
Page 26
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27. Challenges and Opportunities
 New Ecosystems of Competition and Cooperation, in which…
- Companies offer customers not just a product or service, but a platform
capability upon which they can build their own value propositions
- Relationships are a two-way street
- Companies mimic the biological example of “keystone species” that proactively
maintains the health of the entire ecosystem
- Networks of businesses now compete with one another
- Customers act as “Prosumers” (Producers and Consumers)
- Companies operate “on the edge of chaos”
Page 27
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28. Challenges and Opportunities
 The “New Industrial Revolution”…
- Enables entrepreneurs to compete with established businesses by combining
technological innovations with Web-enabled virtual networks
- Brings good news for entrepreneurs, consumers, society
- Brings bad news for established companies threatened with new, lean
competitors
Page 28
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29. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 29
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30. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 30
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31. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 31
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32. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 32
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33. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 33
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34. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 34
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35. Patterns and Examples
 Communication between employees and management
 Communication among employees
 Efficiencies within companies
 Relationships between companies and talent outside the
company
 Relationships between companies and customers
 Relationships between companies and suppliers
 Relationships among companies
 Ecosystems of partners, suppliers and customers
Page 37
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36. Cases
─ Cisco
─ SAP
─ Core Media
Page 38
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37. Cisco
 Web-enabled platform ,supporting a “collaborative channel” of
communication within an ecosystem of stakeholders (employees,
customers, competitors)
 Web tools for faster, cheaper, greener meetings
 Changes in organizational structure to distribute decision-making,
innovate faster, bring products to market sooner
Page 39
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38. SAP
 From small company in Walldorf, Germany to 4th largest software
company in the world, in 25 years
 Creates company-wide software applications
 Had to cope with wrenching industry change: moving from large,
tightlyintegrated application software to more looselycoupled modules
 Introduced Netweaver in 2003 to integrate existing enterprise
applications
 Dilemma: how to encourage adoption of a radically new, complex
product
 Solution: SAP Development Network (SDN)
Page 40
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39. Core Media
 Hamburg-based supplier of content-management software
 Dilemma: “How to stay in control when the market, the technologies in
use, global competition, and society itself is changing at an ever-
increasing rate?”
 Solution: “Let go” of traditional approach to management and
embrace the social-networking culture of Enterprise 2.0
 Online platform featuring many forms of social media, to enable
exchange among staff, customers, partners
 Traditional hierarchy replaced by a flexible, highly networked structure
 Fostered a culture valuing transparency, openness, non-hierarchical,
team-based organizing, upward feedback and criticism
 Employed “open-space” facilitation tools to couple individual passion
with company needs and opportunities
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40. Exploring the Implications for Leadership in
Organizations
 Determining how your organization should position itself
 Encouraging your organization to respond strategically
1. Gain personal Web literacy and foster it on your team
2. Encourage a long-term thinking process that addresses Web
strategies
3. Encourage your organization to develop policies on use of social media
4. Encourage someone in the C-Suite of your organization to initiate a blog
5. Help your organization anticipate/address barriers to open leadership and use
of Web tools
6. Encourage your human relations, marketing and communications departments
to experiment with social media
7. Discourage ownership of Web strategies by your IT department
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 44

41. Exploring the Implications for Leadership in
Organizations
 Determining how your organization should position itself
 Encouraging your organization to respond strategically
1. Gain personal Web literacy and foster it on your team
2. Encourage a long-term thinking process that addresses Web
strategies
3. Encourage your organization to develop policies on use of social media
4. Encourage someone in the C-Suite of your organization to initiate a blog
5. Help your organization anticipate/address barriers to open leadership and use
of Web tools
6. Encourage your human relations, marketing and communications departments
to experiment with social media
7. Discourage ownership of Web strategies by your IT department
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Seite 45

42. Exploring the Implications for Leadership in
Organizations
 Determining how your organization should position itself
 Encouraging your organization to respond strategically
1. Gain personal Web literacy and foster it on your team
2. Encourage a long-term thinking process that addresses Web
strategies
3. Encourage your organization to develop policies on use of social media
4. Encourage someone in the C-Suite of your organization to initiate a blog
5. Help your organization anticipate/address barriers to open leadership and use
of Web tools
6. Encourage your human relations, marketing and communications departments
to experiment with social media
7. Discourage ownership of Web strategies by your IT department
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Page 46

43. Exploring the Implications for Leadership in
Organizations
 Determining how your organization should position itself
 Encouraging your organization to respond strategically
1. Gain personal Web literacy and foster it on your team
2. Encourage a long-term thinking process that addresses Web
strategies
3. Encourage your organization to develop policies on use of social
media
4. Encourage someone in the C-Suite of your organization to initiate a blog
5. Help your organization anticipate/address barriers to open leadership and use
of Web tools
6. Encourage your human relations, marketing and communications departments
to experiment with social media
7. Discourage ownership of Web strategies by your IT department
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Page 47

44. Exploring the Implications for Leadership in
Organizations
 Determining how your organization should position itself
 Encouraging your organization to respond strategically
1. Gain personal Web literacy and foster it on your team
2. Encourage a long-term thinking process that addresses Web
strategies
3. Encourage your organization to develop policies on use of social media
4. Encourage someone in the C-Suite of your organization to initiate a blog
5. Help your organization anticipate/address barriers to open leadership and use
of Web tools
6. Encourage your human relations, marketing and communications departments
to experiment with social media
7. Discourage ownership of Web strategies by your IT department
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill Page 48

45. Appendix
 We offer a comprehensive and detailed overview of Web tools in the
context of its brief history
- Web 1.0
- Web 2.0
- Web 3.0 etc.
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46. Is the Glass half-full or half-empty?
 The ultimate impact of the Web is not knowable
 There are clearly a variety of risks and threats
 We side with the optimists
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47. “A door like this has cracked open five or six times since we got up
on our hind legs. It’s the best possible time to be alive, when almost
everything you thought you knew is wrong.”
r 2010
Spoken by the character Valentine Coverly in Tom
Stoppard’s play Arcadia.
Page 51

48. QUESTIONS FOR DISCUSSION
• What is your personal experience of how client
organizations are changing as a result of the Web and how
leaders are responding?
• What do you2010 as the implications for consultants and
r see
coaches who work with leaders as they confront these
changes?
• What challenges/dilemmas do you personally face as an OD
practitioner as a result of the impact of the Web?
Page 52

49. Evaluation
What I got/learned
What I most enjoyed
What could have been better
Value to me (scale of 1-5)
Further comments
Page 53
Massachusetts Bay Learning Group January 19, 2011 Grady McGonagill