Culture

  • MIT Technology Review Featuring The Culture of Collaboration

    Technology journalist and former Wall Street Journal reporter Lee Gomes and I had a thought-provoking chat earlier this week about collaboration. Lee was interviewing me for a question-and-answer style profile in the MIT Technology Review. The Review was capping off a series of stories about collaboration with the interview on The Culture of Collaboration book. I’m glad that the editor accurately summed up my perspective in the headline: "Collaborating Takes More than Technology."

    You can read the article here.

    Lee did a good job playing devil’s advocate. Among the issues and questions he raised: “Command and control might not be pretty, but it gets things done. Couldn’t an overemphasis on collaboration paralyze an organization?" I responded this way:

    "What paralyzes an organization is when management compromises value by failing to tap ideas, expertise, and assets. What also paralyzes an organization is when requests for decisions languish in in-boxes rather than hashing out issues spontaneously. Paying a few people to think and paying everybody else to carry out orders creates far less value than breaking down barriers among silos and enabling people to engage each other spontaneously."

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  • Taking Collaborative Risk at The State Department

    Shifting from command-and-control to collaborative culture involves what might be termed collaborative risk, but some organizations are realizing that there’s greater risk in clinging to old ways of working.

     

    State Department Logo One organization that is recognizing the need for taking collaborative risk is the United States Department of State. “We’re a very risk-averse culture,” notes Duncan MacInnes, principal deputy coordinator for the Bureau of International Information Programs. State Department professionals fear that misstating policy or saying the wrong thing could become a diplomatic crisis. This parallels the fear in companies that trade secrets or market-moving information could leak. Nevertheless, the State Department has determined that the benefits of collaborating internally and externally outweigh the risks of resisting work style change.

     

    Change agents across the State Department are guiding the culture towards embracing collaboration. These change agents have wisely realized that eliminating disincentives to collaboration is as important as creating incentives. Therefore, the Department has updated its policies to eliminate disincentives to taking collaborative risk. “People will make mistakes, and those who have made too many mistakes have not been dinged for it,” according to MacInnes. This approach is critical to shifting the culture, because people must feel that the organization values collaborative risk and will provide the cover for them to try new ways of working.

     

    Externally, the State Department enables embassies to broadcast their own events including speeches by ambassadors on the Web with input from the public. The State Department uses ConnectSolutions Podium high-definition webcasting, which lets users ask live text questions, text chat with each other about the event, and leave video comments. The ConnectSolutions Real-Time Collaboration Platform enhances and extends Adobe Connect web conferencing. Embassies are also using the tool to collaborate internally. At first, embassy staff resisted the shift. “We’re showing them a new way to work, and we’re meeting in the middle,” says Tim Receveur, a foreign affairs officer coordinating global use of the tool.

     

    Aside from real-time collaboration, the State Department is also chalking up results in collaborating asynchronously. Over 3500 State Department team members have contributed some 12,000 articles to Diplopedia, an internal online encyclopedia based on Wikipedia. You can view an amusing video on Diplopedia here. The Department has also seen compelling growth in the use of an ideation tool. Ideation means developing and refining ideas so that people can make their organization better. The tool, dubbed Secretary Clinton’s Sounding Board, is based on a blogging platform. The tool lets people across embassies, bureaus, regions and levels of leadership brainstorm, make process improvements and create value collaboratively.

     

    In the last eighteen months, people have contributed 1800 ideas. “What in the past would have been water-cooler conversation that went nowhere is now [getting results], because the person who can make it happen is part of the conversation,” explains Richard Boly, director of e-Diplomacy. The ideation tool lets a person hired locally who’s working in a small West African consulate to collaborate, brainstorm and develop communities of interest with counterparts globally.

     

    One success factor for Richard and his team as they guide the work style shift is focusing on “the how rather than the what” for starters and saving the “thorniest issues” for last. By thorniest issues, Richard means U.S. policy and diplomacy. Meantime, he and his colleagues are encouraging culture shift and emphasizing use of collaborative tools for brainstorming improvements in “how” policy can be crafted. As the culture warms to the new way of working, the change agents believe diplomats will more collaboratively create policy itself.  

     

    Private industry is now looking to the State Department for clues regarding how to engage people effectively through corporate ideation tools. Increasingly, companies collaborate through ideation tools with their customers, but lag in collaborating internally. A big factor is fear. Companies often fail to give people cover so that they take collaborative risks. In this case, the Federal government may clear a path for business.

     

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  • The Much-Maligned Meeting and Collaboration

    The “M” word creates more outbursts of opinion than practically any other word in business.

     

    I’m referring to the word meeting. Almost everybody has a—usually negative—gut reaction to the notion of meetings. Plenty of people would prefer being stuck on a tarmac than stuck in a meeting. Even though water and snacks are often available at meetings, our time belongs to others. On the tarmac, there’s no guarantee of refreshments, but at least our time is our own. In fact, meeting-bashing has become welcome break-room conversation.

     

    Nevertheless, technology vendors have invested huge resources in meetings. So, it’s not just employers who want to load up our schedules with meetings. There are vendors with vested interests in making meetings even more integral to our work than they are now.

     

    Last night on CNN’s “Larry King Live,” Larry asked Microsoft founder Bill Gates his opinion of the Apple iPad. Gates responded, “We’re all trying to get to something that you just have to take to a meeting and use.” He added, “It still isn’t the device that I would take to a meeting, because it just has no input.” You can view the video clip here. So, one way Bill gauges the effectiveness of the iPad and similar devices is whether we will want to take them to a meeting. Bill—and by inference, Microsoft—apparently remains focused on keeping us in meetings. In reality, it’s more important whether the iPad and any similar device fits into our lifestyles and work styles than whether we’ll want to bring it to meetings.

     

    Are meetings collaborative? There’s nothing inherently collaborative about an in-person or virtual meeting. That’s right. Using virtual meeting tools is no guarantee that we’re collaborating. Joining a web conference, using telepresence or IMing the day away creates little value unless these tools fit into collaborative organizational culture and practices.

     

    If we compete with colleagues and our teams and organizations reflect “star culture”, do the tools we use make us collaborative? No. It takes more than tools to make collaboration happen. If we fill our ranks with millennials and send them to meetings with devices loaded with collaborative capabilities, will those meetings automatically become collaborative? Don’t bet on it.

     

    The biggest beef about meetings is that they’re a waste of time. In other words, they fail to create value. If we come together as a group and we’re working together to create value, we’re collaborating. So, we’ve essentially transcended the notion of a meeting and instead we’re in a collaborative session. Organizations and vendors should seek to remake meetings as collaborative sessions.

     

    In the final chapter of The Culture of Collaboration book, I note that “Today we struggle to collaborate as effectively at a distance as we do in the same room. Tomorrow the challenge becomes the reverse.” As collaborating in the same room starts seeming awkward, that’s the new frontier. But organizations and technology vendors take note: it’s about creating more value through collaboration rather than better meetings.

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  • California Academy of Sciences Collaborates to Discover Mammals

    Collaboration requires long-term thinking. That’s where universities, libraries, museums, and research organizations often eclipse for-profit companies. Pressure to generate quarterly returns can compromise long-term value, particularly at publicly-held companies. With less pressure to deliver immediate results, research-driven, non-profit organizations can focus more on creating long-term value. Maybe it’s a new take on history or a scientific discovery. Regardless, the work product may remain relevant hundreds of years from now.

     

    That said, competition internally and within fields of study can prove more ferocious in the research arena than in corporations—whether it’s competing for limited grant dollars or for publishing articles in academic journals. Like corporations, the best research organizations mitigate unhealthful competition by thinking and acting towards creating long-term value. In this realm, long-term value can extend into eternity.

     

    Knowing the collaborative mindset of the California Academy of Sciences, I accepted an invitation to attend a briefing and preview tour last Thursday of the Academy’s new Extreme Mammals exhibit, which runs through September 12, 2010. For background on architectural collaboration in the Academy’s building design, see my February 17, 2009 post.

     

    San Francisco is the Extreme Mammals exhibit’s second stop after opening at the American Museum of Natural History in New York.  Over tea and cupcakes, I had a compelling pre-tour conversation with Greg Farrington, the self-proclaimed “chief penguin” or executive director of the Academy. Farrington, a chemist, is the former president of Lehigh University. “You might think everything in the world has been discovered at least twice, but it hasn’t,” Farrington noted. Touring the exhibit confirmed Farrington’s point.

      
    Elephant-shrew
      
    The exhibit features extinct, living and recently-discovered mammals including the striped rabbit identified as a new species in 1999 and the gray faced sengi or giant elephant shrew discovered in 2008. Galen Rathbun,  
    a behavioral biologist at the Academy and Francesco Rovero of the Trento Museum of Sciences in Italy and other collaborators discovered the gray-faced sengi in the Ndundulu Forest in Tanzania’s Udzungwa Mountains. It was the first new species of giant elephant shrew discovered in 126 years.

     

    Rathbun accompanied us on the tour and later took a small group behind several locked doors to view a collection of shrew specimens shelved inside fireproof cabinets in the Academy’s research collections. The collections include 26 million specimens of animals, insects, reptiles, birds, plants, fish and gems. Rathbun noted that several collaborating research institutions had loaned shrew specimens to the Academy for research.

     

    One participant asked birds and mammals curator Jack Dumbacher if we could look inside the special cabinet that contains extinct animals and so-called “type specimens” of newly-discovered mammals. Dumbacher obliged, and we walked down the aisle past many rows of cabinets until we reached a shorter cabinet set apart from the others. As Jack unlocked the cabinet, he unleashed a ripe odor along with a feast for the eyes of preserved birds, rodents, and bats. The treasures also include the largest egg in the world from the elephant bird of Madagascar. A model of the egg is on display in the Academy’s public area.

     

    Back to the public galleries and the Extreme Mammals exhibit. Scientists and administrators from global institutions have collaborated on the show, which the American Museum of Natural History organized. Collaborators shared knowledge, pieced together skeletons and gathered skulls, fossils and taxidermy specimens for Extreme Mammals. The result is a compelling experience for visitors who gain insight into the extreme variety of mammals and the awesome biodiversity of our planet.

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  • Breaking Corporate Rules to Collaborate

    What happens when team members want to collaborate, but command-and-control approaches and internal competition prevail in culture and processes? New research indicates team members are starting to “spoof the system” by flouting organizational guidelines and creating work-arounds so they can collaborate. The global study conducted by InsightExpress and funded by Cisco surveyed more than two thousand end users and a thousand information technology decision makers from ten countries. The study found that 52 percent of organizations prohibit the use of social media applications and 50 percent of end users admit to ignoring company policies at least once a week. “End users have started to take things into their own hands,” says Alan Cohen, Cisco’s vice president of enterprise solutions.

     

    The study found that users most willing to break company policies are those in the United Kingdom and France. Respondents in China were least likely to violate corporate rules. Still, the survey found that companies in China and India had significantly higher adoption rates of collaborative tools than companies in the United States or the United Kingdom. This is likely because companies in these growing economies are relatively new, and therefore their infrastructures are by no means set in stone.

     

    Ironically, the study found that 77 percent of IT decision makers plan to increase spending on collaboration tools this year, while team members say corporate policies are constraining collaboration. Investing in collaborative tools makes little sense if an organization lacks the culture and processes to support the tools. The result is a schizophrenic organization in which some team members break rules, others operate by the book, and most team members get confused by mixed messages. Considering the study results, a prime opportunity exists for leaders to think and act collaboratively and for organizations to adopt collaborative culture.

     

    Cisco will gladly sell you any and all of its more than 60 collaboration products. But buying these products or those of any other collaboration tools vendor will produce limited results unless your organization makes a fundamental commitment to collaboration. This shift includes moving away from command-and-control, internally-competitive culture and processes and replacing the pass-along, serial approach to work and decision-making with spontaneous, real-time models. I address this in the introduction to The Culture of Collaboration book.

     

    Intercompany Collaboration: Focus on Culture and Processes

     

    On another note…outmoded culture and processes can curb collaboration and compromise value—whether we’re talking about within a company or “outside the firewall.”  As vendors and standards groups resolve intercompany collaboration technology issues, there’s a temptation to conclude that intercompany collaboration is “good to go.”

     

    About three weeks ago, I participated in a discussion via TelePresence with Cisco senior vice presidents Tony Bates and Barry O’Sullivan. The company was discussing details of its new Intercompany Media Engine, which extends unified communications among companies. So, a supplier can easily view the availability or “presence status” of a customer, connect via instant messaging, and easily escalate the interaction to a voice call, web conference, or telepresence. You can view video of a demo call here. Meantime, the Internet Engineering Task Force (IETF) is working on an open standard for telepresence and unified communications so that people can interact regardless of technology vendor. This has particular relevance for business partners with different installed telepresence brands. Ultimately, the challenge for intercompany collaborators goes well beyond the technology. Organizations must focus on adopting collaborative culture and processes and integrating them across organizational boundaries.

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  • Empathy and Collaboration: What’s the Link?

    Are empathic people more likely to collaborate? Or are collaborators more likely to empathize?

     

    Dev Patnaik Dev Patnaik, author of Wired to Care, and I tossed around these and other questions during an engaging discussion this afternoon. “Collaboration allows for empathy and creativity to occur” is Dev’s view. We can argue this chicken-or-egg question either way, but the point is that empathy and collaboration are fellow travelers. While I argue in The Culture of Collaboration book that collaborating creates value, Dev argues that empathy makes money for companies.

     

    Almost everything in business has become data-driven. The thinking is…if you can’t measure it, it doesn’t matter. Even traditionally less data driven disciplines such as public relations have become more numbers-oriented. Data certainly provides valuable insight, but it doesn’t tell the whole story. After all, the road is littered with businesses that have used numbers—real or manufactured—to hide destructive practices. Bernie Madoff, who’s not exactly a poster boy for empathy, comes to mind.

     

    I’ve been noticing recently some cracks developing in this data-obsessed foundation on which we build and grow businesses. Clearly, Dev’s antenna is up, and he’s noticing something similar. Dev likens the shift to the change in painting (canvases, not houses) that occurred after the adoption of the camera. Expressionism replaced realism.

     

    According to Dev, we’re moving into the “abstract expressionist phase of management.” It’s no longer enough to be a great numbers person. We’re now expecting more of our leaders, and empathy and collaboration are among those qualities. Because a collaborative organization creates greater value, there’s an increasing role for collaborative leaders. And the same is true for empathy.

     

    Understanding the feelings of others is good behavior, but empathy particularly pays off when companies—that is the people who work for companies– understand what their customers are feeling. And in Wired to Care, Dev deftly weaves into his narrative numerous examples—ranging from Harley-Davidson to Nike—of companies that have achieved impressive results through empathy.

     

    Dev asked me about the relationship between empathy and collaboration, and I’ve been thinking more about it since we talked. The strongest link is that both qualities involve focusing less on self and more on others. The opposite of collaborative behavior is internally-competitive, command-and-control behavior. This is a form of self absorption. Another form of self absorption is lack of understanding how others feel.

     

    While reading Dev’s book, I wondered whether its author is empathetic. So I asked him. “I’m not a very empathic person,” Dev insisted.  That struggle with empathy, though drives Dev’s interest in the topic. He points to the reputation of Apple CEO Steve Jobs as technologically-challenged. Jobs and Apple are ideally suited to sort out usability, Dev argues, because of this struggle. It’s not exactly analogous, but I take Dev’s point. And at the risk of treading into blurb-like territory, Wired to Care will make you think and act differently.

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  • Kaiser’s Garfield Center Enhances Innovation, Collaboration

    With the growing use of tools enabling collaboration at a distance, it’s easy to forget the value of same-room collaboration and the role of the physical workplace environment. Environment—both physical and virtual– is one of the Ten Cultural Elements of Collaboration that I identify in The Culture of Collaboration book.

     

    It’s essential to bring collaborative capabilities to people so that collaboration becomes integrated with work styles. Forcing people to walk down the hall or go someplace to collaborate falls short. Therefore, it may seem counter-intuitive that dedicated collaborative spaces not only enhance collaboration, but also are crucial components of collaborative organizations.

     

    Our research at The Culture of Collaboration® Institute shows that the most collaborative organizations integrate dedicated collaborative spaces into work flow. The distinction is that these physical spaces are by no means the primary means of organizational collaboration. In some cases, dedicated collaborative spaces bridge physical and virtual environments by including geographically-dispersed team members through telepresence or videoconferencing.  

     

    Garfield Center Yesterday, I had the opportunity to explore one such dedicated collaborative space. From the outside, Kaiser Permanente’s Sidney R. Garfield Health Care Innovation Center looks like a warehouse. In fact, it’s a former check processing center in an industrial park in San Leandro, California. On the inside, the Garfield Center is anything but ordinary. The future of healthcare delivery is unfolding in this 37-thousand square foot laboratory. The Garfield Center includes multiple environments ranging from patient room prototypes to homes outfitted with monitoring and telemedicine technologies.

     

    There are lots of gee-whiz technologies and environments including a concept operating room in which researchers are testing tools including augmented virtual reality. But what’s most significant about the Garfield Center is that people from across Kaiser regardless of level, role or region come together to brainstorm, innovate and collaborate. Doctors and nurses partner with architects and technologists to create prototypes for patient care in this “touchdown location for innovation work” as Sherry Fry, operations specialist for the Center, describes it. Anybody at Kaiser can use the facility as long as the activity is interdisciplinary. “The Garfield Center has become synonymous with innovation at Kaiser,” notes Dr. Yan Chow, associate director of innovation and advanced technology for Kaiser Permanente.

     

    In developing the 3-year-old Garfield Center, Kaiser researchers studied models outside healthcare, notably the McDonald’s Innovation Center near Chicago. Kaiser also studied Mayo Clinic's S.P.A.R.C. unit, which I describe in my book. S.P.A.R.C. stands for See Plan Act Refine Communicate. Through S.P.A.R.C., Mayo assembles cross-functional collaborators to conduct live prototyping of healthcare service delivery.

     

    The value of dedicated collaborative spaces is that they help break down barriers among silos. As doctors engage architects and facilities people brainstorm with technologists, ideas become prototypes which ultimately deliver measurable value.

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  • Collaborating out of the Downturn Focus of Blog Talk Radio Interview

    I discussed collaboration with Zane Safrit yesterday morning on his hour-long Blog Talk Radio show. You can listen to the show here.

     

    When he was CEO of Conference Calls Unlimited, Zane masterfully used blogging as a marketing and business tool. His small company, based in a rural Iowa community, adopted collaborative culture and tools as an advantage in a marketplace saturated with large players. Zane is a super-capable, collaborative leader.

     

    Our conversation ranged from common denominators and motivators for companies wanting to adopt collaborative culture and the biggest mistakes companies make. We also discussed the need to replace star-oriented culture and the role of collaboration in an economic recovery.

     

    Zane asked me how companies can balance the need for collaboration with the need for consistency, routines and procedures. It’s a thoughtful question that organizations should consider. I explained that it’s necessary to include collaboration in policies and procedures, so that people are consistently collaborative J.

     

    Towards the end of the show, we focused more on the economy. Zane asked me about the biggest trends regarding collaborative culture over the next two years. Here’s what I said:

     

    People are going to realize what collaboration is and what it isn’t, and I absolutely believe that collaboration will help deliver us from the downturn. We need to abandon the herd mentality. I blogged about this on March 15, 2009 with a call to action. You can read the post here.

     

    There’s a misconception that collaboration is about running with the herd. Real collaboration involves constructive confrontation….coming together to hash out issues, make decisions, improve processes and develop products and services. And it’s much broader than companies. It’s about governments collaborating across agencies and departments, with citizens and with other governments. It’s about people working together to create value in our communities.

     

    It’s about changing education so that we’re developing collaborators. The more educated people are, the more competitive they are. Our educational system beats collaboration out of us. That’s changing.

     

    I’ve lived and worked in smaller communities where many people get jobs right out of high school. They’re used to working together to cook dinner at the VFW or help neighbors repair tornado damage. It’s this type of attitude that we need to nourish in our country, in higher education, in companies, in and among governments. Coming out of this downturn, star culture and internal competition are unaffordable. Collaboration will drive the recovery.

     

    “How will that change our economy, culture, country?” Zane asked me.

    I responded:

     

    It’ll be back to basics…working together to create real value. The mortgage mess, the financial collapse were rooted in artificial value. We gave the keys to the country and the economy to star competitors… the best and the brightest who went to top schools and competed for themselves without considering the bigger picture. Now we need to entrust our companies, governments and communities to collaborators. And we’re going to build long-term, sustainable value.

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  • Abandon Herd Mentality to Avoid Post-Digital Dark Ages

    There’s a dangerous—and convenient—misconception that collaboration is about stampeding with the herd. The misconception is convenient, because often people in organizations and neighborhoods figure out which way everybody’s running, and they follow suit. This tendency leads to mediocrity at best and can poison teams, organizations, industries, the economy, and our collective culture.

     

    In contrast, collaboration often requires constructive confrontation, one of the Ten Cultural Elements of Collaboration that I identify in my book. Rather than running in a pack, we can—through collaboration—come together in real time and hash out issues, improve processes and create better products and services.

     

    Unlike collaboration, herd mentality is choking off innovation and ingenuity, two cornerstones of the collective culture and consciousness particularly in the United States. Running with the crowd created the dot com bubble, the real estate bubble, mortgage crisis, and arguably fed Bernie Madoff’s Ponzi scheme.

     

    In much the same way the herd embraced and artificially ran up dot com stocks and real estate and plunged the world into a deep recession, the herd is now embracing the downturn with abandon. Media, legislators, regulators and stakeholders that were complicit in the dot com and real estate bubbles are now condemning the behavior they embraced. It’s easy to pile on, but where were these voices during the run up and creation of these unsustainable bubbles?

     

    In San Francisco, every day I see a couple of more empty storefronts on my flight path. And it’s the same story in New York. I was walking up Madison Avenue several weeks ago, and shuttered stores lined many blocks. People I know who eight months ago insisted on following the herd to the latest trendy restaurant are now eating take-out tacos or microwaving macaroni and cheese, even though they can well afford to eat in restaurants. Being cheap now propels the herd, so the herd is feeding the recession rather than a recovery. John Maynard Keynes, the economist, called the tendency to hoard rather than spend the paradox of thrift. His point, while controversial, was that unnecessary savings during a recession ultimately lowers savings because of the decrease in economic growth.

     

    Businesses faced with a credit crunch are slashing research and development budgets, cutting the meat rather than just the fat, and jeopardizing their futures. With bad economic news monopolizing computer screens, the downturn is feeding on itself.

     

    The period between the fall of Rome in the fifth century and the early Middle Ages in the tenth century is often called the Dark Ages. It was an era marked by cultural decline, ignorance, lack of enlightenment and societal collapse. The course on which we are headed as we follow the herd to avoid risk, innovation and investment is towards what I call the Post-Digital Dark Ages. While fiscal prudence and frugality make good business sense even in boom times, many companies are sacrificing long-term opportunities for short-term concerns.

     

    A Chevron spokesperson recently told me that the company has a dearth of people in their 40’s, because Chevron imposed a hiring freeze for ten years in the 1980’s and early 1990’s. The idea was to cut costs, but that strategy provided short-term benefits with long-term repercussions.  The ultimate result is a talent and knowledge gap.  As experienced team members retire, there is a lack of people with long-term institutional knowledge to replace them. Chevron wants to avoid a similar situation in this downturn and will reportedly continue recruiting regardless of short-term economic concerns.

     

    Exigent circumstances provide an opportunity to collaborate, think creatively, innovate, and create incredible value. But opportunity must be seized! The downturn is undeniably an exigent circumstance. Rather than succumbing to the herd mentality, we must reject a Post-Digital Dark Ages and engage and challenge one another to define and refine common goals, innovate, reinvent, invest for the long-term, and pave a path towards economic recovery.

     

    We now have access to tools and technologies that we could only dream about during previous downturns. Our challenge is to use these tools to strengthen rather than undermine traditional values of innovation and ingenuity. We must harness a range of real-time and asynchronous collaborative tools plus same-room collaboration to enhance real relationships sustainable in person or at a distance. As we build trust, we must strive to improve shared ideas through constructive confrontation and broad input regardless of level, role or region.

     

    More broadly, we must change the conversation from doom and gloom to growth and recovery. Let’s change our approach from hibernation and indecision to collaborative action. People are hibernating, because of across-the-board cost cutting and management edicts banning many necessary business expenses. The result is that team members are lying low, unable or unwilling to perform necessary functions. Therefore, management’s attempt to improve balance sheets is actually leaching value out of companies.  Also, we must find and employ collaborative problem solvers who can rethink how we’re doing business.  

     

    If we continue stampeding with the herd, we risk the onset of a Post-Digital Dark Ages. Through collaboration, we can ultimately exit the downturn with a more sustainable, long-term focus throughout business, government and society.

     

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  • Innovation Value Institute Enhances Collaboration and Unlocks IT Value

    As I stepped into the new “innovation zone” outfitted with leather couches, lounge chairs and café-style tables and stools at Chevron’s headquarters in San Ramon, California yesterday, ideas were flying. The Innovation Value Institute, a consortium focused on enhancing information technology’s role and demonstrating its value, has set up shop for two days at Chevron and yesterday announced its efforts. You can hear the announcement and see slides here. Collaboration is fundamental to IVI in that:

     

    1) Competitors are collaborating in the consortium

    2) IVI’s framework will enhance collaboration between IT and business units

     

    The core consortium includes oil and gas competitors Chevron and BP, competing consulting firms Boston Consulting Group and Ernst & Young, and software companies Microsoft and SAP. Northrop Grumman is also part of the core group as is Intel. In fact, Martin Curley, Intel’s global director of IT innovation, co-directs the Institute, which is housed at the National University of Ireland, Maynooth. Each company is sharing intellectual property, and the partners are all getting more out of the collaboration than the IP that they’re investing. Through the consortium, according to Curley, the members are shifting their thinking and approach from “competitive advantage to collaborative advantage.”

     

    IT is evolving from a service to a “business-embedded” role within enterprises. “IT organizations grew up with the service business model… acting as waiters and waitresses. What technology can I serve you today?” notes Natalie Stone, director of business strategy for Northrop Grumman. “We’ve come pretty far, and we’re poised to take the next leap.”

     

    That next leap for the consortium members involves developing an IT Capability Maturity Framework (IT-CMF) of 36 interconnected processes—things like service analytics and intelligence, enterprise architecture, and innovation management. The idea is to establish a common language and standards for measuring how IT creates business value.

     

    So, how does IVI quantify the value? Ralf Dreischmeier, partner and managing director of the Boston Consulting Group, says the consortium is focused on “50/50/50.” That means increasing IT return-on-investment by fifty percent, reducing time-to-market by fifty percent, and reducing business costs by fifty percent.

     

    Consortiums often deliver little more than announcements and joint news releases, because of the lack of collaboration. “Five to ten years ago, this would have been dead,” insists Dreischmeier. “People were much more protectionist, thinking only about their little environment.”  IVI is succeeding because of the premium its members are putting on trust, sharing and innovation. These are three of the Ten Cultural

    Elements of Collaboration that I identify In The Culture of Collaboration book.

     

    In parallel, businesses can create greater value if there is more trust between IT and business units. “If you don’t have the trust, there’s no way you’re going to make IT better,” acknowledges Chevron CIO Louie Ehrlich. Environment is another element, and Chevron’s “innovation zone” is designed to enhance collaboration and experimentation. “Chevron likes to do things with quality or not at all, but sometimes we need to lighten up and make mistakes,” insists Jack Anderson, Chevron’s innovation specialist, a consortium participant who is also championing collaboration within his company.

     

    I’ve blogged and written in my book, spoken and advised organizations about how cultural diversity enhances collaboration, enables broader input and contributes to better decisions and products. Culture may be regional, organizational, functional, or departmental. The IVI includes cultural diversity on all of these levels. “Diverse groups work much better together,” is how Edwina Fitzmaurice, partner with Ernst & Young, sums it up. Fitzmaurice, based in Ireland, has a diverse professional background including stints as CEO of Prudential Europe Management Services and CIO of J. Rothschild International.

     

    Many of the consortium members—and many other enterprises and IT vendors—have developed their own frameworks for IT value. Microsoft is no exception. There’s broad agreement, though, that an industry standard framework makes more sense for vendors and enterprises. “We can then talk about our product portfolio in a way that resonates rather than being product-centered,” says Samm DiStasio, senior director for business architecture and optimization in Microsoft’s enterprise and partner group.

     

    Ultimately, ITI’s work will be publicly available—but it will never be finished. The nature of a collaborative framework is that it’s dynamic. As business shifts and IT evolves, ITI’s model will also change.

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