Archive for May, 2009

Systems to organize what employees have to do, or want to do?

I blogged before on the difficulty Enterprise 2.0 faces for entering big organizations. It suddendly occured to me the other day that current IT systems (ERP, CRM,..) are mainly meant to track and organize what employees have to do. While Web 2.0 tools are doing wonders aggregating intentions and organizing actions of people according to what each one of them wants to do.

It is not new that Markets and Hierarchies represent two forms of coordination with their specificities. In this sense, Web 2.0 seems very suited for Markets, allowing people with diverse interests to loosely collaborate for a while, before moving to something else. With that in mind, it seems that Enterprise 2.0 is confronting a very tough challenge, it wants to re-use for Hierarchies the tools that seem to be almost meant for Markets.

But for people who have been in management positions, it is clear that the command and control model has its limits. That a good part of your job is actually to create meaning so that what people have to do, more or less align with what they like to do. It is even more so when you deal with knowledge workers, where there is a strong asymmetry of information, where they know what they have to do, and you as a manager painstakingly try to keep up with what they are explaining to you.

This is why, even though I believe it will be difficult and require a lot of cultural changes, I still think that big organizations can benefit from the new Web 2.0 tools. At the heart of the change will probably be a modification on the way we conceive firms. But, when some corporations let employee use part of their work time as they wish, there is still hope that big organizations can transform themselves to adopt more decentralized working models.

Trying to make value out of what your employees want to do, instead of what top management thinks they have to do is obviously a big shift. But who said the latter should be the ultimate way to run hierarchies. If there is indeed value in the former, evolution will naturally produce new types of organizations thriving on those principles. If you’re still running on the old model, you’ll just have he choice between mutating or sinking into oblivion.