Organizational Culture

  • 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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  • Mayo Clinic Enhancing Collaboration

    The Mayo Clinic, founded on the principle of collaboration, is taking collaboration and innovation to the next level. With a mission nothing short of transforming how healthcare is experienced and delivered, Mayo’s Center for Innovation integrates emerging collaborative tools into processes and culture. The Center for Innovation includes Mayo’s innovative S.P.A.R.C. design lab.

     

    While writing The Culture of Collaboration book, I conducted on-site research at S.P.A.R.C. and throughout Mayo. Now it’s time for an update. The catalyst was a recent conversation with Chris Yeh of PBworks, which offers a hosted wiki-oriented business collaboration platform with newly-added integrated voice conferencing. Mayo is piloting PBworks along with other online collaborative spaces. “We call it a sandbox where people can figure things out,” Francesca Dickson of Mayo’s Center for Innovation told me yesterday during a Skype video call.

     

    Francesca and Beth Kreofsky of Mayo’s Center for Innovation provided an inside view of how Mayo is evolving, and we talked about the role of tools. Aside from PBworks, Mayo is also piloting “ideation” tools that let team members share ideas and build on them based on “focused questions.” One such tool is Jive.

     

    Besides asynchronous social tools, Mayo is now piloting instant messaging in several departments including nursing and radiology. Paging, a precursor to instant messaging, is deeply engrained in Mayo’s culture. Anybody can page the CEO and expect a prompt call back. Hierarchy is muted at Mayo, and the CEO is always a practicing physician. Mayo’s culture is ripe for IM and unified communications through which people can connect spontaneously through IM, voice or video regardless of level, role or region.

     

    Meantime, paging persists at Mayo. The Center for Innovation’s mission is to keep Mayo, well, innovating. So the Center is demonstrating to the organization that IM offers a clear advantage over paging.

     

    Video is another tool that’s part-and-parcel of Mayo’s culture. Mayo was an early user of videoconferencing to encourage collaboration among its three campuses. Mayo has already piloted Cisco TelePresence with a hospital in Duluth, Minnesota. And beginning in April, patients in Canon Falls, Minnesota will receive consultations from Mayo specialists via TelePresence.

     

    By integrating new collaborative tools into its already collaborative culture, Mayo will likely enhance healthcare delivery and create greater value.

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  • Collaborating with Salespeople Provides Unfiltered Information

    Hierarchy dies hard in many organizations, so breaking down barriers among levels can prove particularly challenging.

     

    Team members must feel it’s culturally acceptable to engage senior leaders on the fly, and likewise senior leaders must feel culturally comfortable reaching out across the organization to connect with front-line managers, factory workers and salespeople. This gives leaders access to real-time, unfiltered information. In The Culture of Collaboration book, I write about the Dow Chemical Company’s collaborative culture and the collaborative leadership approach of Dow CEO Andrew Liveris. In a compelling interview by Susan Daker  in the Monday, January 25 edition of the Wall Street Journal, Andrew describes how Dow taps its salespeople for real-time intelligence about customer needs.

     

    Wisely, Dow recognizes that the role of salespeople goes beyond addressing customer needs and closing deals.  Dow salespeople collaborate with Research & Development and senior leaders to ensure that products meet customer needs. This may sound like a no brainer, but countless salespeople from many companies have told me that marketing, R&D and senior leaders have little interest in their customer insights. In such organizations, an “us and them” attitude develops between salespeople and management. And therefore the organization loses opportunities to gain real-time intelligence that would otherwise create value.

     

    For years, salespeople have been underutilized. After all, they’re the eyes and ears of an organization. They can also be an early warning system for market shifts and product issues. Good salespeople understand their customers’ businesses, challenges, and industry trends. Isn’t that information important to R&D and senior leadership? Absolutely! In fact, companies pay dearly for similar intelligence and information from consultants and researchers.

     

    In a collaborative organization, senior leaders reach out to salespeople for unfiltered, real-time information and input into decisions.  Salespeople, in turn, engage and collaborate across leadership levels and across functions, business units and regions. Presence-enabled tools enhance this by letting people find each other and collaborate in real-time, enabling salespeople to share intelligence with senior leaders, R&D and others. But tools can only enhance and extend collaboration. For salespeople to contribute to product development and strategy, the organizational culture must support informal, spontaneous interactions regardless of level or title.

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  • It Takes More Than Sharing Information to Prevent Terrorist Attacks

    More than eight years after lack of collaboration among intelligence agencies contributed to the September 11, 2001 terrorist attacks on the United States, the Central Intelligence Agency is facing new allegations that it failed to share vital information that could have thwarted last week’s attempted bomb attack on Northwest flight 253.  

    ODNI Logo President Obama yesterday scolded the United States Intelligence Community for “a systemic failure” because intelligence agencies apparently never shared all of their information about the suspect before he boarded the plane and was ultimately subdued by passengers. The National Security Agency reportedly had information that Al Qaeda operatives in Yemen were preparing a Nigerian to commit a terrorist attack against the United States. And the Central Intelligence Agency had reportedly met with the father of Umar Farouk Abdulmutallab , the suspect, at the U.S. Embassy in Nigeria. The suspect’s father apparently informed the CIA of his son’s radicalization. Had there been greater collaboration among agencies, President Obama has said that the suspect’s name would have appeared on the so-called No Fly List, which likely would have prevented him from boarding the Northwest plane.

     

    According to the lead story in today’s Wall Street Journal, officials of the National Counterterrorism Center which acts as a clearinghouse for terrorism data, have indicated that the CIA failed to share all of its information with other agencies.

     

    The problem is that terrorists are often highly collaborative, but the Intelligence Community has lagged behind in embracing collaboration. The 911 Commission Report recommended a reorganization of the 16-agency Intelligence Community under a Director of National Intelligence. The report also recommended increased information sharing among agencies to thwart future attacks. Subsequently, President Bush signed the Intelligence Reform and Terrorism Prevention Act of 2004 which established the Office of the Director of National Intelligence (ODNI), the National Counterterrorism Center, and called for “open-source intelligence.” In 2007, ODNI implemented a 100-day plan and a 500-day plan for Integration and Collaboration among agencies.

     

    As part of the new commitment to collaboration, the Intelligence Community adopted A-Space, modeled after MySpace and Facebook, so that analysts could share information across agencies. The community has also adopted Intellipedia, a cross-agency wiki.

     

    On the sixth anniversary of the terrorist attacks, I gave a speech to the Intelligence Community. The speech was sponsored and hosted by ODNI. In the speech and during subsequent meetings with senior intelligence officials, I insisted that it would take much more than tools and a top-down collaboration initiative for the Intelligence Community to actually collaborate. Our research at The Culture of Collaboration® Institute indicates that in any organization, people may buy into collaboration as a concept, but in practice it’s a totally different story. Therefore, reducing fear of collaboration and changing behavior are crucial to cultural shift.

     

    Clearly, intelligence requires protecting classified information just as corporations must protect trade secrets. But aside from keeping outsiders from obtaining information, many career intelligence officers have been conditioned to embrace secrecy within their community. This fosters information hoarding, intra-agency rivalry and intelligence failures. It takes more than new tools and technologies and more than even an act of Congress to abandon this deeply-engrained conditioning.

     

    Sharing information among agencies is undoubtedly necessary, but thwarting attacks requires much more. Even if agencies make information available to one another, people need to know how to act on that information.  Therefore, I will reiterate here two major points on which I’ve counseled senior intelligence officials:

     

    1) Favor on-the-fly decisions over chain-of-command decisions.

    2) Encourage spontaneous interaction over scheduled encounters and meetings

     

    The White House and intelligence officials can talk ad nauseam about sharing information. If, however, analysts and other intelligence personnel are expected to run decisions “up the flagpole” and are inclined to schedule meetings rather than connect with colleagues and hash out issues on the fly, it will remain difficult to thwart attacks.

     

    As I noted in The Culture of Collaboration book, "the in-box culture is dead." And if asynchronous information sharing persists without the necessary real-time cultural components, intelligence failures will continue. The cultural shift necessary to prevent security lapses like the one aboard Northwest flight 253 involves moving beyond information and data sharing—and embracing real-time collaboration.

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  • BusinessWeek.com Launches Collaboration Column

    Internal competition wreaks havoc in organizations, compromising collaboration and reducing value. The cost is often hidden, but it can be significant. That’s why my first column on collaboration for BusinessWeek.com focuses on internal competition. The column is part of the site’s Management section, which offers actionable business information. So my column offers 5 ways that leaders can reduce internal competition.

    Check out “The Hidden Cost of Internal Competition” on the BusinessWeek.com site.

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  • Cisco’s John Chambers: the Hardest Part is the Culture

    I was watching Cisco CEO John Chambers do his trademark walk-and-talk style keynote yesterday at the Hilton San Francisco Union Square as Cisco was kicking off its Collaboration Summit when suddenly John interrupted his pitch for collaboration.

     

    “Do you know what the hardest change is in this?” he queried the audience rhetorically. “As any CEO will tell you, it’s the culture.”

     

    John’s observation resonated with me in that the fundamental premise of The Culture of Collaboration book is that “without a culture of collaboration, the best processes, systems, tools and leadership strategies fall flat.” In the book, I also note that “the overwhelming reason why collaboration eludes organizations involves culture.”

     

    Understanding the role of culture in creating a collaborative enterprise is paramount, particularly as Cisco introduces 61 collaboration products. Collaboration tools are key enablers, but they are far more effective in enabling collaboration in enterprises with collaborative cultures and processes.  Cisco has been focusing on collaboration more than any other initiative as an organizational imperitive and in product efforts. Now the company is fixated on persuading customers that it has reached a milestone in innovating collaboration. With that in mind, Cisco vice president of enterprise solutions Alan Cohen, a history buff and blogger, noted that Cisco was announcing its slew of products on the 20th anniversary of the Berlin Wall’s fall and observed that it was one of the “biggest transitions in our history.”

     

    As Tony Bates, Senior Vice President and General Manager of the Enterprise Group, highlighted Cisco’s major product introductions, he emphasized the increasing role of video in collaboration—from Flip Video camcorders to WebEx web conferencing to telepresence—and the interactivity of these tools. You can read details of the product announcements here.

     

    At a cocktail party following the keynotes, Tony and I had an engaging conversation about how the role of video has evolved. I mentioned that when I was researching my first book, Personal Videoconferencing, in the mid-1990’s, there was considerable push back against real-time video as a viable business tool. People were scared of the camera, and there was a pervasive view that one needed to have highly-honed presentation skills to use videoconferencing. Tony observed that people are increasingly accepting that the way they conduct themselves in meetings and in one-on-one workplace interactions is good enough for many video interactions.

     

    Currently, most telepresence and web conferencing interactions are scheduled. As organizational cultures evolve to support more real-time collaboration, video interaction will become more spontaneous. Then real-time video will transcend communications and become part-and-parcel of collaboration. 

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  • Replacing ROI with Return on Collaboration?

    Yesterday I had a compelling discussion with Alla Reznik, director of global voice and collaboration for Verizon. Alla is from Russia, and she’s the only U.S.-based marketing professional I know who can provide input on the Russian language edition of The Culture of Collaboration book published by Ecom of Moscow. Alla and I chatted about regional cultural differences in how people collaborate—and differences in how they respond to surveys.

     

    It was a timely discussion, because today Verizon and Cisco are releasing a new study tackling return on investment (ROI) for collaboration expenditures. ROI has long frustrated collaboration tools vendors, because of the difficulty in quantifying “soft” benefits such as corporate reputation. The research, conducted by Frost & Sullivan, identifies a model for measuring what it calls return on collaboration (ROC).

     

    ROC measures the impact of collaboration on key functional areas. These include research and development, human resources, sales, marketing, investor relations, and public relations. Traditional ROI measures money gained or lost on an investment. In contrast, ROC tracks the amount of “improvement” derived from a financial investment in collaboration. The study identified research and development, sales and marketing as the functional areas with the highest ROC.

     

    The study called “Meetings Around the World 2: Charting the Course of Advanced Collaboration” is based on questionnaires completed by 3662 information technology and line-of-business decision makers in 10 countries. Respondents represented enterprises plus small and medium sized businesses. Nearly half the organizations are using unified communications and collaboration tools ranging from enterprise instant messaging to Cisco TelePresence. Among the study’s key findings is that collaboration is more than twice as important as strategic orientation and six times more important than market factors in determining business performance.

     

     

    “The world has changed quite a bit since 2006,” according to Alla, who was referring to the 2006 study dubbed “Meetings Around the World 1.” This earlier study determined that collaboration fuels business performance and that collaboration capability is based on technology, culture and structure. The new study indicates that culture and structure are even more important to collaboration than they were in the previous study conducted in 2006.  The point is that collaboration technology makes the most difference in organizations with collaborative cultures and structures. Similarly, the fundamental premise of The Culture of Collaboration book is that maximizing time, talent and tools to create value requires collaborative culture.

     

    The main purpose of the study is to convince business decision makers to invest in collaboration tools and technologies.  One conclusion is that a $1 million investment in collaboration tools and technologies will deliver a $4 million dollar “improvement.” However, this result apparently fails to consider whether the organization has adopted a collaborative culture. I would argue that a $1 million investment by an organization with a collaborative culture will produce greater results than the same investment by an organization with a command-and-control, internally-competitive culture. So while the study does highlight the role of culture and structure, more work is necessary in integrating these elements into measuring ROC.

     

    The big question for Verizon and Cisco is whether CFO’s, CIO’s and business decision makers will accept ROC. “We’re curious ourselves,” Alla told me. While there’s work to do in proving the value of collaboration, ROC is an important step towards evaluating the return on collaboration investment.

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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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  • Collaboration Curing Multiple Sclerosis

    It was definitely unorthodox. Many said it was impossible. But it looks like The Myelin Repair Foundation has done it. MRF, which is working on curing multiple sclerosis, is about to meet its ambitious goal of licensing a discovery for commercial drug development within five years. Through a collaborative research model, the Silicon Valley-based foundation has reduced drug development time from 15 years to 5 years. MRF is negotiating with a biotech company and believes a license agreement is in the works.

     

    Intuit Founder Scott Cook, a foundation supporter, suggested I research MRF when I was writing The Culture of Collaboration book.  In the book, I tell the story of how Scott Johnson, who has MS, learned that a cure was taking three or four times as long because of competition among researchers. This prompted Johnson to rethink the culture of medical research and begin changing that culture. Scientists often refuse to share data and information, because they compete for limited grant money and for publishing articles in top medical journals. The answer was to get experts in different disciplines to collaborate. So Johnson raised money, ultimately plowed $20 million into drug discovery work, and built a collaborative medical research foundation.

     

    Johnson brought in fellow tech start-up veteran Russell Bromley as chief operating officer. And Johnson and Bromley recruited five principal investigators who head labs.  They proposed a level of collaboration for curing disease that none of the scientists had ever experienced. Their focus was to repair myelin, the sheath that surrounds the nerves, which MS damages. Johnson and Bromley with input from the researchers developed a Collaborative Research Process, which addresses everything from tools to incentives.

     

    Since its founding in 2004, MRF has advanced work towards a cure for MS beyond anything anybody else had imagined within this timeframe. “Because of our work, we have a much clearer understanding of how to drive neural stem cells to the site of myelin damage in the central nervous system and instruct the myelin-producing cells to remyelinate,” Johnson writes in his recent president’s message.

     

    The Myelin Repair Foundation’s game-changing collaborative approach sets a new standard for medical research. The broader medical research community should sit up and take notice that collaboration among researchers creates greater value than competition.

     

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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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