Adoption roadblocks – part 2

by admin on October 12, 2006

in Innovation

In the early morning session, Andrew McAfee talked at length about organisational norms and how these are exemplified in social science studies. He told the story where seminary trainees were asked to give a sermon on the parable of the Good Samaritan but were also told they had very little time to prepare. A person was dressed up as a down and out drunk and positioned along the route to the sermon area. Without exception, the seminary trainees walked over the person as thought he didn’t exist.

In the Zimbardo experiment, people were separated into guards and prisoners. the guards were given free rein to mistreat the prisoners. Over time, otherwise normal, well adjusted people became increasingly violent to the ‘prisoners’ right to the point where the experiment had to be halted.

In real life, people were observed standing by and watching as a woman was savagely attacked – an event which subsequently led to the theory of Bystander Apathy. In the business sense, these examples can loosely be translated to ‘not getting involved’ and ‘doing as you’re told.’ But these traits don’t sit well with the idea of innovation because by its nature, innovation is disruptive.

In the afternoon session, a panel that included Tara Hunt and Rod Boothby talked about the challenges of introducing new social computing technologies into the workspace. Tara said it’s hard in large organisations because a number of the services are free or very low cost. Large companies expect big ticket software and think there is something inherently wrong if there isn’t a big price ticket. Strange but true.

Rod challenged the notion of compliance, arguing that SOX for example doesn’t cater for change and therefore the compliance excuse for not adopting technology doesn’t stand up to scrutiny. He suggested what he calls ‘cab fare’ expensing of low cost software. No-one queries the cost of a taxi expense – the level at which new technologies can be acquired. He is, in other words, suggesting a stealth approach that avoids the objections he sees coming from IT and other gatekeepers, which want to control the environment.

While I see what Rod says as making sense if you want to force fit change, it cannot be the right approach. No manager likes to be duped and while ‘under the radar’ approaches have worked, it is based on the dangerous assumption that social computing IS a good that delivers value. This is not from proven, even though intuitively it seems right.

Unfortunately, we don’t have many answers at this time. Social software presents special challenges. What happens if…and the list is pretty long (people tell company secrets to the wider world, release embarrassing facts…). This is very different from other software where the issues are more around ‘does it work?’

I think we’re approaching this in the wrong way. We already know that only a small fraction of people are likely to be highly active. These are the people we need to discover and allow free expression. The question companies have to ask themselves then is not can we allow this new ‘stuff’ but can we afford not to? Innovation is never easy, but, handled with care, it can work.

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This page may be of interest "Social Networking in the enterprise -- a nightmare come true?

Dennis,
while I agree with your critique on SOX, risk management in my book is nothing less than common sense. The values at risk are too important to open up to anyone. A bank may trust their employees, but they still require a key to access the safe.
I would *love* to see Web 2.0 succeed in the enterprise, but there needs to be a risk management approach included to *enable* this kind of success.

Frank:
Although I don't agree with his approach, I have some sympathy for Rod's position. SOX has become the full time employment charter for audit teams around the world. The fact is that processes change and compliance audits only provide a snapshot in time. The way the 'rules' are being interpreted is a costly straightjacket that somehow has to be overcome. Otherwise it stifles innovation.

I find a depressing number of enterprises overplay the dangers and risks citing some of the more outlandish stuff we see out on the 'net. Understandable but a reflection of the lack of trust they have in their own people?

It's more of the command and control mentality that, to my mind, expresses the fear siloed managers have of their power being eroded by others. Again, understandable. But not sustainable on a long term basis. Even with the strictures of ERM which you rightly raise.

Dennis,
Rod's SOX argumentation is typical sales bull. Ask any company required to do SOX, they'll kick his butt the moment he enters their building. I like Web 2.0 apps as much as the next guy, but if you don't know how to behave in an enterprise environment you better stay out. Enterprise Risk Management is a MUST, it's not optional. Get this or continue doing Google Maps mashups.

Appreciate your thoughts about the difficulty of implementing social software in enterprises - I'm in the process of working out how at the moment. A thought on the "Mr 1%" - for that minority of very/moderately active participants to be a worthwhile number, in most SMB's you would have to make the tool (whatever it happens to be; blog/wiki/etc) available to most, if not all of the employees.
I'm looking to use a wiki as a (relatively) cheap way of capturing and developing ideas - which is a numbers game to some extent, so I don't want to filter at that early stage, and I want maximum participation. While I'm happy to start small, it needs to ramp up to a substantial percentage of the 2000 total employees in the business.

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