Tim Walters: Despite great enthusiasm and some positive results, enterprise social tools and practices have failed to make a significant impact in terms of implementations, adoption, regular use, or business results. In this (abridged) keynote presentation from the Social Now conference in Amsterdam (April 2014), I argue that enterprise social will continue to falter as long as the focus is on 1) the tools and practices (the "build it and they will come" fallacy) or 2) the benefits for the employees (the "it's all about the people" fallacy). Rather, social business will flourish when it is used to address a fundamental shift in business conditions -- namely, the empowerment of consumers and the consequent need for all firms to master customer experience management (CEM).
Social, Now? What Will (Finally) Change the World of Work?
1. Social, Now?
What will (ïŹnally) change the world of work?
Social
 Now
 Amsterdam
 2014
Â
Tim Walters, Partner and Principal Analyst
Digital Clarity Group
7. Dreary news from the front
7
Â
Source:
 h?p://www.netjmc.com/business-Ââvalue/decrease-Ââof-Ââinterest-Ââin-Ââenterprise-Ââsocial-ÂâsoIware-Ââsignals-Ââa-ÂâshiI-Ââfrom-Ââtool-Ââto-Ââbehavior/
Â
8. 8
Â
Growth is slowing â dramatically
â 50%
Â
â 78%
Â
â 8%
Â
Source:
 h?p://www.netjmc.com/business-Ââvalue/decrease-Ââof-Ââinterest-Ââin-Ââenterprise-Ââsocial-ÂâsoIware-Ââsignals-Ââa-ÂâshiI-Ââfrom-Ââtool-Ââto-Ââbehavior/
Â
9. 9
Â
Deployment falters at âthe chasmâ
Source:
 h?p://www.netjmc.com/business-Ââvalue/decrease-Ââof-Ââinterest-Ââin-Ââenterprise-Ââsocial-ÂâsoIware-Ââsignals-Ââa-ÂâshiI-Ââfrom-Ââtool-Ââto-Ââbehavior/
Â
10. 10
Â
Early adopters donât . . . adopt
Source:
 h?p://www.netjmc.com/business-Ââvalue/decrease-Ââof-Ââinterest-Ââin-Ââenterprise-Ââsocial-ÂâsoIware-Ââsignals-Ââa-ÂâshiI-Ââfrom-Ââtool-Ââto-Ââbehavior/
Â
11. 11
Â
Trivial impact on daily work
Source:
 h?p://www.netjmc.com/business-Ââvalue/decrease-Ââof-Ââinterest-Ââin-Ââenterprise-Ââsocial-ÂâsoIware-Ââsignals-Ââa-ÂâshiI-Ââfrom-Ââtool-Ââto-Ââbehavior/
Â
12. âWhen asked to rank their companyâs social
business maturity on a scale of 1 to 10,
more than half of respondents gave their
company a score of 3 or below. Only 31%
gave a rating of 4 to 6. Just 17% ranked
their company at 7 or above.â
12
Â
MIT/Sloan 2013 Global Study
Source:
 âSocial
 Business:
 ShiIing
 Out
 Of
 First
 Gearâ
 Based
 on
 survey
 of
 2545
 execu6ves
 in
 99
 countries
 and
 25
Â
industries.
 Note
 that
 the
 report
 deïŹnes
 âsocial
 businessâ
 to
 include
 consumer
 social
 sites
 (Facebook,
 LinkedIn,
Â
etc),
 internal
 social
 networks
 (e.g.,
 Cisco
 Learning
 Network),
 enterprise
 social
 tools
 (e.g.,
 Jive,
 Yammer,
 or
 custom
Â
built),
 and
 social-Ââbased
 data
 and
 marke6ng
 intelligence.
Â
@6m_walters
Â
13. §ï§âŻ â77 percent of business and IT leaders say their
companies are currently using social
collaboration technologiesâ
§ï§âŻ â82 percent of businesses currently using social
collaboration tools want to use more of them in
the futureâ
§ï§âŻ âThe most widely used social technologiesâ are
Facebook (74%) and Twitter (51%)
§ï§âŻ âBusiness and IT decision-makers have a false
sense of accomplishment when it comes to
social collaborationâ
13
Â
Avanade Global Survey of Ent. Social
Source:
 âIs
 enterprise
 social
 collabora6on
 living
 up
 to
 its
 promise,â
 May
 2013.
 Survey
 of
 1000
 business
 leaders
 and
 4000
 employees.
Â
Â
14. 14
Â
Itâs safe to say . . .
Social tools are
the green eggs
and ham of
enterprise
software.
(Social advocates badger
reluctant employees to
try/adopt them. In the
book, it works â thus
conïŹrming itâs a work of
ïŹction.)
15. 15
Â
Why isnât social working? (My list)
§ï§âŻ Misunderstanding social
§ï§âŻ Platform megalomania
§ï§âŻ Inattention to knowledge processes
§ï§âŻ âUp with people!â
@6m_walters
Â
18. Really? If itâs all about the people, why
do so many initiatives look like this?
18
 @6m_walters
Â
Enterprise Social Adoption
(aka the Lemming Curve)
19. Supporting people is not enough
19
Â
80%OF SOCIAL BUSINESS EFFORTS
WILL Not HIT THE MARK FOR
INTENDED BENEFITS
Source:
 Gartner,
 January
 2013
Â
@6m_walters
Â
21. §ï§âŻ Lack of urgency
§ï§âŻ Middle management forgotten
§ï§âŻ No real empowerment
§ï§âŻ Fragmented digital environments
§ï§âŻ A lot to learn about change
21
Â
Why isnât social working? (Jane
McConnell)
Source:
 h?p://www.netjmc.com/social-Ââcollabora6on/5-Ââreasons-Ââsocial-Ââintranets-Ââhave-Âânot-Ââtaken-ÂâoïŹ/
Â
22. 22
Â
What will (ïŹnally) change the world
of work?
Social tools
23. âThe What â the social platform itself â
is already dealt with, at least for early
adopters.â Now weâre âtackling the big
issues of How.â â Jane McConnell
Better: How and WHY?
23
Â
Source:
 h?p://www.netjmc.com/business-Ââvalue/decrease-Ââof-Ââinterest-Ââin-Ââenterprise-Ââsocial-ÂâsoIware-Ââsignals-Ââa-ÂâshiI-Ââfrom-Ââtool-Ââto-Ââbehavior
Â
24. 24
Â
Why? Traditional business is
broken . . .
Source:
 h?p://www.forbes.com/sites/stevedenning/2012/10/31/dont-Ââdiss-Ââthe-Ââparadigm-ÂâshiI-Ââin-Ââmanagement/
 .
 Deloi?e
 analysis
 of
 20,000
 US
 Frims
Â
Return on assets
and invested
capital are Œ what
they were in 1965.
25. âIt begins with the idea that a firm is in business to
make money for the shareholders. To this end,
managers direct and control the workers. Work is
coordinated by rules, plans and reports, i.e.
bureaucracy. The overriding value is that of ever
greater efficiency. Communications are top-down
and aimed at maintaining control. Work revolves
around âthe bossâ. The firmâs principal focus is
internal. Its principal dynamic is control with the
objective of ever greater efficiency.â
â Steve Denning
25
Â
. . . and rewards dehumanizing
practices
Source:
 h?p://www.forbes.com/sites/stevedenning/2012/10/31/dont-Ââdiss-Ââthe-Ââparadigm-ÂâshiI-Ââin-Ââmanagement/
Â
Â
26. 26
Â
How? Ask the Change Agents
§ï§âŻ âAs organizations begin to realize that they
need to transform the way they operate, and
to challenge their structure and purpose, in
order to survive in a world of increasing
complexity and fierce competition,
rethinking the very nature of work has
become critical.â (Thierry de Baillon)
§ï§âŻ âEmployees are increasingly looking for
personal growth, purpose recognition,
access, influence, impactâŠ.The future of
work is about getting back to basics and
unleashing the power of people.â (Ayelet
Baron)
§ï§âŻ âChange in the workplace starts and ends
with people, with how they relate to and
work with one another. You need people
who understand people as part of your
team.â (Richard Martin)
Source:
 h?p://changeagentsworldwide.com/book/1
Â
27. 27
Â
. . . and ask some others, too
§ï§âŻ âThe starting point for organizational
change is to realize that our
understanding of how we work, alone,
with others, and together has altered.
The foundations of business that most
organizations are operating on are no
longer relevant, if they ever were. We
need to operate in ways that are
aligned with our inherent
characteristics.â (Clark Quinn)
§ï§âŻ âIf old world organizations are going to
keep their best people from fleeing to
greener pastures (or find willing new
recruits from colleges), then the first
thing theyâre going to have to do is
recognize that each and every one of
their staff are unique individuals, with
passions, dreams, ideas, and a spirit of
independence.â (Rob Caldera)
Source:
 h?p://changeagentsworldwide.com/book/1
Â
28. 11.
âThe philosophers have
only interpreted the world
in various ways. The point
is to change it.â
28
Â
The Godfather of Change
Management
29. The social tools have only
interpreted the world of
work in various ways. The
point is to change it.
29
Â
The Mother of All Change Agents?
@6m_walters
Â
30. 30
Â
But . . . notice what Marx does not say
They should change it.
We must change it.
You ought to change it.
Someone, anyone, please change it!
31. âThe point is to change it.â
31
Â
Whereâs the Change Agent?
Es kommt drauf an, sie zu verÀndern.
(Literally: âIt arrives thereupon to change it.â)
There is no subject in the sentence, no actor or agent that could/will
âchange the world.â Why? Because Marx wants to emphasize that
change is not just a matter of people âchanging their minds,â of
deciding to change. People do effect change, but only in the context
of (and in conjunction with) changed conditions.
Look at three instances where changed conditions are at work (and in
the workplace) âbehind the scenes.â
32. 32
Â
1. Todayâs employees
§ï§âŻ â[Employers have to] recognize that each
and every one of their staff are unique
individuals, with passions, dreams, ideas,
and a spirit of independence.â (Rob
Caldera)
§ï§âŻ But: Wasnât this true for our parents?
Grandparents? Workers now nearing
retirement?
§ï§âŻ So: What is different today that makes
Robâs insight pertinent now (and for the
future of work)?
Source:
 h?p://changeagentsworldwide.com/book/1
Â
33. 33
Â
2. Yesterdayâs Change Agents
§ï§âŻ âThis dimension [team work and collaboration] has
been successively discoveredâand forgotten and
then loudly rediscoveredâby Mary Parker Follett in
the 1920s, Elton Mayo and Chester Barnard in the
1930s, Abraham Maslow in the 1940s, Douglas
McGregor in the 1960s, Peters and Waterman in the
1980s, Smith and Katzenbach in the 1990s and
Richard Hackman in the 2000s. . . .[M]anagers
would for a time embrace collaboration and teams,
and then in a crisis, disband the teams and revert to
the default model of . . . controlling
individuals.â (Steve Denning)
§ï§âŻ So: Why did the previous change agents fail? What
is different today that makes Steveâs call for âradical
managementâ more realistic and likely to succeed?
Source:
 h?p://www.forbes.com/sites/stevedenning/2012/10/31/dont-Ââdiss-Ââthe-Ââparadigm-ÂâshiI-Ââin-Ââmanagement/
Â
Â
34. 34
Â
3. Accommodating Millennials
§ï§âŻ But: Previous
generations also had
unique habits.
§ï§âŻ And: All firms must
acknowledge the need
to accommodate.
(Otherwise, millennials
must just adapt to the
world of work, as did
previous generations.)
§ï§âŻ So: What is different
today that makes this
genâs demands so
powerful?
Source:
 h?p://theweek.com/ar6cle/index/232375/how-Ââmillennials-Ââare-Ââtransforming-Ââthe-Ââworkplace
Â
35. 35
Â
What will (ïŹnally) change the world
of work?
Social tools
People
A change in conditions?
36. §ï§âŻ Digital disruption empowers consumers
§ï§âŻ Outside â In (Forrester)
§ï§âŻ Delighting customers (Steve Denning)
§ï§âŻ The consumer expectation/demand for
positive experiences
36
Â
What has changed?
38. Only
Â
38
Â
1%
Â
feel
 their
Â
expecta6ons
Â
for
 good
Â
customer
Â
service
 are
Â
always
 met
Â
Â
Source:
 Harris
 Interac6ve
 survey
 of
 North
 American
 consumers,
 2011.
Â
Â
Among U.S. consumers
@6m_walters
Â
39. 39
Â
Say they have switched business
to a competitor due to poor
customer experience
Source:
 Harris
 Interac6ve
 survey
 of
 North
 American
 consumers,
 2011.
 Commissioned
 by
 RightNow.
Â
@6m_walters
Â
40. 40
Â
Source:
 OkeeïŹe
 &
 Company
 survey
 of
 1,342
 senior
 execu6ves,
 2012.
Â
Â
Â
Â
Global executives say the cost of
not providing âpositive, consistent,
and brand relevant experiencesâ is
20% of total revenue@6m_walters
Â
41. âConsumers are empowered by information
and shared opinions, and they are emboldened
by choice. They have developed an appetite
for rich and rewarding interactions, and they
rarely hesitate to seek alternatives when
disappointed. Increasingly, companies will
succeed and fail according to the quality of the
experiences that they offer.â
- The CEM Imperative: Experience Management in the Age of the Empowered Consumer
Digital Clarity Group
41
 @6m_walters
Â
42. 42
Â
What will (ïŹnally) change the world
of work?
Social tools
People
ĂŸïŸ A change in conditions= empowered consumers= CEM
43. Agent
 Drivers
 Iner-a/Inhibitors
Â
Vendors
Â
Compe66ve
 diïŹeren6a6on;
Â
client
 needs
Â
Est.
 business
 model;
 installed
Â
base
 (switching
 cost)
Â
Enterprise
 (end
 users)
Â
Customer
 sa6sfac6on,
Â
revenue,
 shareholder
 value
Â
Â
Customer
 expecta6ons;
Â
security/regulatory
 reqs
Â
Consumers
Â
Convenience,
 pleasure,
Â
relevance,
 empowerment
Â
43
Â
Seeking Change Agents
§ï§âŻ Consumers relate âpurelyâ to change. They âdictateâ the
future because they have no interest in it.
§ï§âŻ âConsumerization of ITâ really means: Aspire to make IT
digital experiences as responsive, flexible, open, and
hungry as todayâs digital consumer.
@6m_walters
Â
44. 44
Â
How you think of consumers
Source:
 h?p://www.na6onalgrocers.org/resource-Ââcenter/nga-Ââresearch/consumer-Ââpanel-Ââsurvey
 @6m_walters
Â
45. 45
Â
How you should think of consumers
Source:
 h?p://www.thena6onal.ae/lifestyle/web-Ââgoes-Ââtruly-Ââworldwide-Ââwith-Ââsmartphones
 @6m_walters
Â
46. Consumer no longer names a buyer, or
even a person. It is a name we give to
the process of change.
46
Â
Change is the only constant
@6m_walters
Â
47. §ï§âŻ Millennials are a mindset, not an age group
§ï§âŻ They bring (in)to work the changed conditions of
the business environment
§ï§âŻ They represent and literally embody the appetites,
expectations, and unarticulated desires of
consumers
§ï§âŻ The millennial mindset should not be
âaccommodated,â it should be leveraged as an
(in)valuable asset
§ï§âŻ Work (places, process, structures) change for the
sake of consumers . . . and benefit employees
(millennial or not) (only) as a result
47
Â
Accommodating Millennials?
49. Provides
-⯠Support for digitalization/
automation of work
-⯠Structure and accelerator for
business transformation
49
Â
Social
Â
CEM
Â
Org
Â
Transforma6on
Â
Needs
-⯠Business justification
-⯠Clear/measurable impact, value
proposition, ROI
Provides
-⯠Cure for declining business
performance
-⯠Structure for organization-
wide customer-centricity
Needs
-⯠Business driver that
justifies a radical shift
in practice
-⯠A âwhyâ that proves a
radical shift in the
conditions of value
production
Provides
-⯠A driver for org transformation
-⯠A justification for social
practices and tools (i.e.,
specific value-generating
activities
Needs
-⯠Org-wide support
-⯠Fundamental transformation of
business practices (e.g. outside-in)
-⯠(Software) support for agility,
responsiveness, innovation,
âconsumerizationâ
50. §ï§âŻ Social is not appreciated if held to traditional
standards (e.g., ROI)
§ï§âŻ Social will not be widely adopted if it is judged by
(and aspires only to) the established goals of
efficiency, productivity, and cost reduction
§ï§âŻ Social will not be successful if it is a collaborative
façade on traditional hierarchical organizations
§ï§âŻ Social will not be effective if it serves as a Band-Aid
on the gaping wounds of non-customer-centric
companies
§ï§âŻ CEM is the inescapable business imperative â and
provides the necessary business focus for social,
organizational change, and the future of work
50
Â
Social now â and for the future
@6m_walters
Â
51. 51
Â
âYou may hate gravity, but
gravity does not care.â
(Clayton Christensen)
Think of CEM as gravity.
52. Tim Walters | Partner, Principal Analyst
@tim_walters
twalters@digitalclaritygroup.com
www.digitalclaritygroup.com