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If Culture eats (Enterprise 2.0) Strategy 
for breakfast …
f b kf t




      … how do we take culture on?




                                                                    ActEdge Arno Hesse (CC) 2009
                                         Enterprise2Open
                                   Unconference at Enterprise 2 0
                                                at Enterprise 2.0




                                                                               o
                                         June 24, 2009 in Boston
                                                Arno Hesse
                                 ActEdge  innovating engagement
                                 ActEdge – innovating engagement
                                        arno.hesse@actedge.com
                                                Twitter:  @ahesse
                                                                    1
So what is Culture?
Shared Set of …
Shared Set of



                                          Perceptions
                                               p




Assumptions         Values      … that
                                guide …
                                          Judgments




                                                        ActEdge Arno Hesse (CC) 2009
                                                                   o
  Beliefs         Behavioral 
                   Patterns
                                            Actions

                                                        2
Culture – Illustrative Examples


                                                  Failure: blame the 
                                                  market!

 It’s all about the    Team before 
 numbers               individual                    Perceptions
                                                          p


  Assumptions              Values
                                                  Best numbers = 
                                        … that    promotion!
                                        guide …
                                                     Judgments




                                                                        ActEdge Arno Hesse (CC) 2009
 Experience            Boss always 
 matters               leads meetings




                                                                                   o
     Beliefs            Behavioral                Fine‐tune accoun‐
                         Patterns                 ting systems


                                                       Actions

                                                                        3
Culture Check: Where is your organization 
before Enterprise 2 0?
       Enterprise 2.0?

Assumptions
Ass mptions                   Values


   ….




  Beliefs
  B li f                    Behavioral 
                            Behavioral
                             Patterns




                                             ActEdge Arno Hesse (CC) 2009
                                                        o
                                             4
E2: What Culture Aspects Matter?

                                                    Exercise:

1. E2 Outcomes: Which culture aspects will be affected (in a successful implementation)?

2. E2 Inputs: Which culture pre‐condition will support or hinder an implementation?


       Working Together                  Individual’s Environment     Organization’s Stance

           Teamwork                              Autonomy             Adaptive Nimbleness

     Information Sharing                       Accountability         External Market Focus




                                                                                              ActEdge Arno Hesse (CC) 2009
              Trust                      Creativity and Innovation       Aggressiveness

             Politics                           Bureaucracy              Customer Driven
                                                                         Customer Driven




                                                                                                         o
         Silo Mentality                          Hierarchical              Risk‐Taking


Subset of Culture Assessment instrument (overall 36 scales)

                                                                                              5
Enterprise 2.0:  Promise or Threat?




                                                                              ActEdge Arno Hesse (CC) 2009
                                                                                         o
      Marketing example from Whitney Michael’s Whitepaper on Enterprise 2.0


                                                                              6
Enterprise 2.0:  Promise or Threat?

                    We say…

                     Flat Organization!


                         Some hear …


                               Fewer Promotions?

                           Didn’t I do the right things all 




                                                               ActEdge Arno Hesse (CC) 2009
                            those years to get ahead?




                                                                          o
                                                               7
Enterprise 2.0:  Promise or Threat?

                    We say…

                     Agility! Flexibility!


                         Some hear …

                          Nothing to count on anymore?
                              Now that I finally figured out 
                                         f     yfg




                                                                ActEdge Arno Hesse (CC) 2009
                                how to work the system, 
                               everything will be in flux?




                                                                           o
                                                                8
Enterprise 2.0:  Promise or Threat?

                    We say…
                      Open Borders! 
                      Transparency!


                        Some hear …

                              Even more interference?

                          You mean the guys from audit 
                          You mean the guys from audit




                                                          ActEdge Arno Hesse (CC) 2009
                              can see EVERYTHING?
                           They can’t handle the truth.




                                                                     o
                                                          9
Select the right Change Agents
                                                                                  Your Champions of Change

                                   The Micro‐Political Forces of Change
                                   The Micro
                                   The Micro‐Political Forces of Change
                Blockers               Snipers            Followers        Cheerleaders      Visionaries

                                                              ?
                   X                                                  ?
                                                          ?           ?             !
                                                                  ?          !
                   X                                      ?           ?

                 Owners of             Behave like         Underlying      Relationship-       Driven by
             opposing  ‐ often       followers until      resistance to    oriented and     vision: intrinsic
             rational ‐ visions.
               ti   l ii           triggered b lit h
                                   ti      d by glitch    change until 
                                                           h         til   motivated b
                                                                              ti t d by        motivation
                                                                                                  ti ti




                                                                                                                ActEdge Arno Hesse (CC) 2009
               Triggered by                              benefits proven    anticipated
               provocation.                                                  benefits




                                                                                                                           o
            Isolate (distract)                                              Allocate to      Surround with 
                                          Leave alone for now               visionaries       cheerleaders
             Keep as anti‐
 Phase 1:      example              Round some up around change 
                                    R   d              d h                   Empower, provide resources
                                                                             E            id
                                            champions
                                                                                 Separate from others
                                                                                                                10
Assess the Organization’s Capacity to Change
 Which unit to choose for the initial pilot?
                                                  Capacity to Change
Indifferent to External Environment                                    In Touch with External Environment
Limited awareness of customers, competition                            Scrutinizes and responds to customers,
and market                                                             competitors and broader market conditions
Indifferent to Internal Environment                                    In Touch with Internal Environment
Not open to assessing and learning from                                Actively solicits feedback from within the org;
organizational experience                                              modifies the organization to promote excellence
Doubts about Senior Management                                         Confidence in Senior Management
Senior management is perceived as not                                  Senior management is admired; perceived to be
working as team and not worthy of trust                                trustworthy and to work as a team
Lack of Confidence in Employees                                        Confidence in Employees
Rigid and conforming policies; lack of trust in                        Limited bureaucracy; high levels of trust in
employees                                                              employees; employee independence is valued
Fixation on Financial Results                                          Relevance of Broader Meaning
Organizational goals are limited to financial                          Inspiring organizational vision and mission;




                                                                                                                         ActEdge Arno Hesse (CC) 2009
results; goals do not inspire                                          goals expand beyond financial results
Procedural/Bureaucratic                                                Aggressive, Risk-Taking
Risk-averse; conforming; unadventurous                                 Open to new ideas and approaches; risk-




                                                                                                                                    o
                                                                       tolerant; non-conforming
Inadequate Systems and Procedures                                      Adequate Systems and Procedures
Systems do not support organization’s goals                            Systems are in place that support key
                                                                       organizational processes
Overextended; Too Much on Plate                                        Available Bandwidth/Resources
Employees working at full capacity; unable to                          Employees are capable of taking on additional
take on additional workload                                            work
From: feedback report to client                                                                                          11
Culture Change Takeaways for E2


 Purpose! Enterprise 2.0 is the answer to what question… ?


 If Culture matters, include culture expertise in Enterprise 
 2.0 deployments (and sales)
        p y        (          )

 Soothe the anti‐bodies by proofing the benefits in a 
 smaller, subversive pilot
 smaller subversive pilot




                                                                ActEdge Arno Hesse (CC) 2009
 Assess the organization’s Capacity to Change when charting 




                                                                           o
 the game plan
                      p            p      y     p ,
 Executives lead Enterprise 2.0 adoption by example, 
 not mandate
                                                                12

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When Culture Eats Enterprise 2.0 Strategy for Breakfast

  • 1. If Culture eats (Enterprise 2.0) Strategy  for breakfast … f b kf t … how do we take culture on? ActEdge Arno Hesse (CC) 2009 Enterprise2Open Unconference at Enterprise 2 0 at Enterprise 2.0 o June 24, 2009 in Boston Arno Hesse ActEdge  innovating engagement ActEdge – innovating engagement arno.hesse@actedge.com Twitter:  @ahesse 1
  • 2. So what is Culture? Shared Set of … Shared Set of Perceptions p Assumptions Values … that guide … Judgments ActEdge Arno Hesse (CC) 2009 o Beliefs Behavioral  Patterns Actions 2
  • 3. Culture – Illustrative Examples Failure: blame the  market! It’s all about the  Team before  numbers individual Perceptions p Assumptions Values Best numbers =  … that promotion! guide … Judgments ActEdge Arno Hesse (CC) 2009 Experience  Boss always  matters leads meetings o Beliefs Behavioral  Fine‐tune accoun‐ Patterns ting systems Actions 3
  • 4. Culture Check: Where is your organization  before Enterprise 2 0? Enterprise 2.0? Assumptions Ass mptions Values …. Beliefs B li f Behavioral  Behavioral Patterns ActEdge Arno Hesse (CC) 2009 o 4
  • 5. E2: What Culture Aspects Matter? Exercise: 1. E2 Outcomes: Which culture aspects will be affected (in a successful implementation)? 2. E2 Inputs: Which culture pre‐condition will support or hinder an implementation? Working Together Individual’s Environment Organization’s Stance Teamwork Autonomy Adaptive Nimbleness Information Sharing Accountability External Market Focus ActEdge Arno Hesse (CC) 2009 Trust Creativity and Innovation Aggressiveness Politics Bureaucracy Customer Driven Customer Driven o Silo Mentality Hierarchical Risk‐Taking Subset of Culture Assessment instrument (overall 36 scales) 5
  • 6. Enterprise 2.0:  Promise or Threat? ActEdge Arno Hesse (CC) 2009 o Marketing example from Whitney Michael’s Whitepaper on Enterprise 2.0 6
  • 7. Enterprise 2.0:  Promise or Threat? We say… Flat Organization! Some hear … Fewer Promotions? Didn’t I do the right things all  ActEdge Arno Hesse (CC) 2009 those years to get ahead? o 7
  • 8. Enterprise 2.0:  Promise or Threat? We say… Agility! Flexibility! Some hear … Nothing to count on anymore? Now that I finally figured out  f yfg ActEdge Arno Hesse (CC) 2009 how to work the system,  everything will be in flux? o 8
  • 9. Enterprise 2.0:  Promise or Threat? We say… Open Borders!  Transparency! Some hear … Even more interference? You mean the guys from audit  You mean the guys from audit ActEdge Arno Hesse (CC) 2009 can see EVERYTHING? They can’t handle the truth. o 9
  • 10. Select the right Change Agents Your Champions of Change The Micro‐Political Forces of Change The Micro The Micro‐Political Forces of Change Blockers Snipers Followers Cheerleaders Visionaries ? X ? ? ? ! ? ! X ? ? Owners of  Behave like  Underlying  Relationship- Driven by opposing  ‐ often  followers until  resistance to  oriented and vision: intrinsic rational ‐ visions. ti l ii triggered b lit h ti d by glitch change until  h til motivated b ti t d by motivation ti ti ActEdge Arno Hesse (CC) 2009 Triggered by  benefits proven anticipated provocation. benefits o Isolate (distract) Allocate to  Surround with  Leave alone for now visionaries cheerleaders Keep as anti‐ Phase 1: example Round some up around change  R d d h Empower, provide resources E id champions Separate from others 10
  • 11. Assess the Organization’s Capacity to Change Which unit to choose for the initial pilot? Capacity to Change Indifferent to External Environment In Touch with External Environment Limited awareness of customers, competition Scrutinizes and responds to customers, and market competitors and broader market conditions Indifferent to Internal Environment In Touch with Internal Environment Not open to assessing and learning from Actively solicits feedback from within the org; organizational experience modifies the organization to promote excellence Doubts about Senior Management Confidence in Senior Management Senior management is perceived as not Senior management is admired; perceived to be working as team and not worthy of trust trustworthy and to work as a team Lack of Confidence in Employees Confidence in Employees Rigid and conforming policies; lack of trust in Limited bureaucracy; high levels of trust in employees employees; employee independence is valued Fixation on Financial Results Relevance of Broader Meaning Organizational goals are limited to financial Inspiring organizational vision and mission; ActEdge Arno Hesse (CC) 2009 results; goals do not inspire goals expand beyond financial results Procedural/Bureaucratic Aggressive, Risk-Taking Risk-averse; conforming; unadventurous Open to new ideas and approaches; risk- o tolerant; non-conforming Inadequate Systems and Procedures Adequate Systems and Procedures Systems do not support organization’s goals Systems are in place that support key organizational processes Overextended; Too Much on Plate Available Bandwidth/Resources Employees working at full capacity; unable to Employees are capable of taking on additional take on additional workload work From: feedback report to client 11
  • 12. Culture Change Takeaways for E2 Purpose! Enterprise 2.0 is the answer to what question… ? If Culture matters, include culture expertise in Enterprise  2.0 deployments (and sales) p y ( ) Soothe the anti‐bodies by proofing the benefits in a  smaller, subversive pilot smaller subversive pilot ActEdge Arno Hesse (CC) 2009 Assess the organization’s Capacity to Change when charting  o the game plan p p y p , Executives lead Enterprise 2.0 adoption by example,  not mandate 12