Management 2.0 facilitates informed decisions and allows companies to tap into the power of the interactive web.
Gary Hamel, a web and management guru, suggests five ways for companies on how to unleash the collaborative potential of their employees by providing them with today’s web tools. The main challenge is to change the mindset of the the top management in order to launch technological platforms that supports their need for informed decisions. He shows how traditionally viewed offline challenges can be solved with web-based solutions.
Below I’ve chosen two of his suggestions which I find most inspiring:
1. Organisational design flaw # 1: Share of voice equals share of power: That is, your position in the corporate hierarchy decides your influence on key issues.
A web based solution: The internet is thoughtocracy. The best analysis can actucally beat position. How? Encourage your employees to write critical inhouse blogs. Track the numbers of posts read, the numbers of readers the most popular writers reach, how many people forward posts to colleagues, etc. Thus, tap in to the ‘authority index’ .
2. Organisational design # 2: Under-informed decisions: It’s virtually impossible for a small number of top executives to accurate estimate the cost and benifits of a certain decision. However, decisions need to be taken. How to decrease the risk?
A potential web-based solution: Create ‘opinion markets’ online. Allow employees to buy securities ‘that would pay out only if the initiative achieved a predermined rate of return’ when launching a new, big project. Say, when launching a major organisational change programme or merging with a competitor, the number of employees interested in buying securities in the project will decide the price of the securities. The corporate number crackers will be able to present a market logic to how this may work. The point is that an opinion market will express the people’s belief in an initiative and at the same time encourage innovative thinking, because if a project turns out successful in the when it was originally not thought so, it will actually pay out to have taken the risk.
- You may read Gary Hamel’s all five suggestions in his article ‘Moving Management Online (part two)’ at page 5-7 in Management Lab’s newsletter.
- You may also listen to Mr Hamel talking about this issue in one of his Harvard Business Online podcasts (but, ehem, listening to him is quite boring).