Enterprise 2.0 Is Changing Hierarchy

Just how revolutionary is the power of software? Is the modern corporation fully in charge of its internal changes? Are knowledge workers – influenced greatly by their experiences on the Web – forcing change against the necessary conservatism of management? And to the extent that this may be the case, how much of the cause comes from the technology itself?

These questions arise because respected knowledge thinker Tom Davenport plays devil’s advocate and says that Enterprise 2.0 simply won’t happen as generally conceived, because the enterprise won’t give up its traditional hierarchy.

“Enterprise 2.0 software and the Internet won’t make organizational hierarchy and politics go away. They won’t make the ideas of the front-line worker in corporations as influential as those of the CEO. Most of the barriers that prevent knowledge from flowing freely in organizations – power differentials, lack of trust, missing incentives, unsupportive cultures, and the general busyness of employees today – won’t be addressed or substantially changed by technology alone.” – Why Enterprise 2.0 Won’t Transform Organizations

In this short and controversial viewpoint Professor Davenport doesn’t give any collateral reasoning, nor does he show the state of play with the forces currently impinging on the modern enterprise.

Luis Suarez does both, in his lengthy post over at ITtoolbox, where he picks up on this story and adds his observations, largely in refutation. He notes the key point missed by Tom, that Enterprise 2.0 is already happening.

“Why not? After all, it is already happening in most places. I mean, if you look at the rampant rate of adoption of Enterprise 2.0 within the corporate world it would, at least, make you wonder if it would stick around for a while, or not. My take is that pretty much like in the consumer / producer market, things may have started slow, but they are here to stay.

“I agree that it may not be as influential as that one from the CEO, but still it will be an important one that would help shake things bottom-up in such a way that they could transform the way knowledge workers interact feeling part of that new knowledge-based company they are rebuilding. Do you think that the CEO is going to be able to make that switch with one of his influential speeches? I doubt it. Do you think that a bunch of knowledge workers can provoke that change from bottom-up? You bet!” – Enterprise 2.0

Luis also illustrates how the barriers of the former hierarchy are changing shape in direct response to technology. He cites his post of (synchronistically) just the day before:

“The key thing in here is that people are empowered to share what they feel would be worth while sharing with others and that at some point there would be other folks out there who would be able to connect with those webloggers because of the content they share. As simple as that.

“So just because it is not useful to you, it doesn’t mean it would not be useful for anyone else. We are all entitled to have a voice and express our own thoughts and ideas in whichever way we decide to go ahead with whether it will be done for a business reason or not. It will then be up to others to stick around or not, but don’t underestimate the power of knowledge sharing by every single knowledge worker out there, because there is a great chance that you will eventually bump into different “golden nuggets of information” that you would be able to reuse at some point and, why not?, find ways to connect with those different knowledge workers that you may not have thought possible in the past.” –
How To Build An Enterprise 2.0 Culture – Empowering Everyone to Have a Voice and Starting Small

Luis is a great believer in the bottom-up approach to creating usable knowledge management systems, as are we at Dovetail Software. We’ve written extensively about the tacit knowledge pervading the enterprise that currently goes untapped, and how knowledge management will come to unlock and utilize this knowledge. Modern CRM thinking applies the same view to the attitudes and preferences of the customer: today’s CRM software development is focused strongly on unlocking this “tacit knowledge” held by the customer. In both case, Web 2.0 technology will play central roles – in fact, only the technology makes this possible.

To make another answer to Tom Davenport’s thesis, and as a companion view to Luis Suarez’s feeling that it’s a people revolution, we’ll quote ourselves. As we said in a post (synchronistically again) just yesterday, where we compared Enterprise 2.0 with Web 3.0:

“But Enterprise 2.0 is not a people revolution, it’s a knowledge revolution. Collaboration is not being made easy simply because bosses suddenly feel a rush of sympathy for their workers’ desire to hang out with their friends. It’s happening because the efficient disposition of corporate data is a survival necessity today, and loosening some of the former hierarchy is a useful part of freeing information within the enterprise.” – Web 3.0 and Enterprise Knowledge

Having said this, we have to acknowledge the impact of individuals on the system. Enterprise 2.0 itself, as conceived in its original theory, is viewed as an inevitable process brought about by individual workers going outside the enterprise network to engage with services on the Web network. We learn on the Web that we can work better, as Luis illustrates:

“That command-and-control attitude is a thing of the past because, for the first time in a while, knowledge workers are realising that they are in control themselves of how they work, share knowledge and collaborate with other fellow colleagues. And as result of that, they are seeing how their productivity has increased quite a bit with a whole lot less effort by just helping themselves make those connections. Yes, the good old motto of working smarter without necessarily making it harder.” – Enterprise 2.0

So we return to the question, just how revolutionary is this software being developed today? If the top-down imperatives are to enable the bottom-up evolution, to create agility necessary for the survival of the modern enterprise, what weight does the enabling technology itself deserve in this equation?

We often cite the energizing effect of deploying Dovetail tools in a Clarify install. Not to belabor this point, but when agents arrive for work in the morning, and find on their desktops applications that look the same as the old ones, but that contain a flood of new features and functions, what happens is that they get excited. What happens is change, as workflows reshape themselves, and innovation and collaboration become more possible; customer satisfaction rises, as customers sense the new confidence in agents, derived from increased ability to process cases.

No one tells these workers to act this way. No inspiration from even the most charismatic leader can compel agents to be this energized. What we’re seeing is the bottom-up change, created from infrastructure developed by top-down command. This syndrome, of top-down empowering bottom-up, is a viable method of changing the enterprise in its systems and in its culture altogether. It carries risks, but the reward is worth it. This is what’s happening, for the sake of prosperity and survival, throughout business, across the Web, and all over the world.

Tomorrow we’ll look at more of these forces at work.

Published Wednesday, May 02, 2007 2:49 PM
Filed under , , , , ,

Comment Notification

If you would like to receive an email when updates are made to this post, please register here

Subscribe to this post's comments using RSS

Comments

No Comments

Leave a Comment

(required) 
(optional)
(required) 

  
Enter Code Here: Required
Submit