Skip to main content

Six ways to make Web 2.0 work - The McKinsey Quarterly - Six ...

Popularity Report

Total Popularity Score: 0
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

Rank

Related Lists

Bookmark History

Saved by 26 people (-4 private), first by anonymouse user on 2009-02-19


Public Sticky notes

Many of the dissenters cite impediments such as organizational structure, the inability of managers to understand the new levers of change, and a lack of understanding about how value is created using Web 2.0 tools. We have found that, unless a number of success factors are present, Web 2.0 efforts often fail to launch or to reach expected heights of usage. Executives who are suspicious or uncomfortable with perceived changes or risks often call off these efforts. Others fail because managers simply don’t know how to encourage the type of participation that will produce meaningful results.

Highlighted by gawedwedge

Many of the dissenters cite impediments such as organizational structure, the inability of managers to understand the new levers of change, and a lack of understanding about how value is created using Web 2.0 tools.

Highlighted by vkidd32

To date, as many survey respondents are dissatisfied with their use of Web 2.0 technologies as are satisfied

Highlighted by pgillin

Executives who are suspicious or uncomfortable with perceived changes or risks often call off these efforts. Others fail because managers simply don’t know how to encourage the type of participation that will produce meaningful results.

Highlighted by vkidd32

We have found that, unless a number of success factors are present, Web 2.0 efforts often fail to launch or to reach expected heights of usage. Executives who are suspicious or uncomfortable with perceived changes or risks often call off these efforts

Highlighted by pgillin

To date, as many survey respondents are dissatisfied with their use of Web 2.0 technologies as are satisfied. Many of the dissenters cite impediments such as organizational structure, the inability of managers to understand the new levers of change, and a lack of understanding about how value is created using Web 2.0 tools.

Highlighted by cristode

Executives who are suspicious or uncomfortable with perceived changes or risks often call off these efforts. Others fail because managers simply don’t know how to encourage the type of participation that will produce meaningful results.

Highlighted by cristode

What distinguishes them from previous technologies is the high degree of participation they require to be effective. Unlike ERP and CRM, where most users either simply process information in the form of reports or use the technology to execute transactions (such as issuing payments or entering customer orders), Web 2.0 technologies are interactive and require users to generate new information and content or to edit the work of other participants.

Highlighted by gawedwedge

What distinguishes them from previous technologies is the high degree of participation they require to be effective

Highlighted by vkidd32

What distinguishes them from previous technologies is the high degree of participation they require to be effective

Highlighted by pgillin

Web 2.0 technologies are interactive and require users to generate new information and content or to edit the work of other participants.

Highlighted by vkidd32

New technologies constantly appear as the Internet continues to evolve. Of the companies we interviewed for our research, all were using at least one of these tools. What distinguishes them from previous technologies is the high degree of participation they require to be effective.

Highlighted by cristode

Earlier technologies often required expensive and lengthy technical implementations, as well as the realignment of formal business processes. With such memories still fresh, some executives naturally remain wary of Web 2.0. But the new tools are different. While they are inherently disruptive and often challenge an organization and its culture, they are not technically complex to implement. Rather, they are a relatively lightweight overlay to the existing infrastructure and do not necessarily require complex technology integration.

Highlighted by gawedwedge

While they are inherently disruptive and often challenge an organization and its culture, they are not technically complex to implement.

Highlighted by vkidd32

relatively lightweight overlay to the existing infrastructure and do not necessarily require complex technology integration.

Highlighted by vkidd32

While they are inherently disruptive and often challenge an organization and its culture, they are not technically complex to implement. Rather, they are a relatively lightweight overlay to the existing infrastructure and do not necessarily require complex technology integration.

Highlighted by pgillin

underused human potential at companies an immense “cognitive surplus”

Highlighted by gawedwedge

Clay Shirky, an adjunct professor at New York University, calls the underused human potential at companies an immense “cognitive surplus” and one that could be tapped by participatory tools.

Highlighted by maximizen

he underused human potential at companies an immense “cognitive surplus” and one that could be tapped by participatory tools.

Highlighted by vkidd32

But the new tools are different. While they are inherently disruptive and often challenge an organization and its culture, they are not technically complex to implement. Rather, they are a relatively lightweight overlay to the existing infrastructure and do not necessarily require complex technology integration.

Highlighted by cristode

Our most recent Web 2.0 survey demonstrates that despite early frustrations, a growing number of companies remain committed to capturing the collaborative benefits of Web 2.0

Highlighted by vkidd32

Since we first polled global executives two years ago, the adoption of these tools has continued. Spending on them is now a relatively modest $1 billion, but the level of investment is expected to grow by more than 15 percent annually over the next five years, despite the current recession.3

Highlighted by pgillin

Our most recent Web 2.0 survey demonstrates that despite early frustrations, a growing number of companies remain committed to capturing the collaborative benefits of Web 2.0.2 Since we first polled global executives two years ago, the adoption of these tools has continued. Spending on them is now a relatively modest $1 billion, but the level of investment is expected to grow by more than 15 percent annually over the next five years, despite the current recession

Highlighted by cristode

The transformation to a bottom-up culture needs help from the top.

Highlighted by vkidd32

The transformation to a bottom-up culture needs help from the top.

Highlighted by pgillin

a “build it and they will come” philosophy

Highlighted by vkidd32

Successful participation

Highlighted by vkidd32

requires not only grassroots activity but also a different leadership approach: senior executives often become role models and lead through informal channels

Highlighted by vkidd32

Successful participation, however, requires not only grassroots activity but also a different leadership approach: senior executives often become role models and lead through informal channels.

Highlighted by pgillin

The transformation to a bottom-up culture needs help from the top

Highlighted by cristode

acted as a role model by establishing his own blog

Highlighted by vkidd32

Successful participation, however, requires not only grassroots activity but also a different leadership approach: senior executives often become role models and lead through informal channels.

Highlighted by cristode

The best uses come from users—but they require help to scale

Highlighted by vkidd32

The executive evangelized the benefits of Web 2.0 technologies to other senior leaders and acted as a role model by establishing his own blog. He set goals for adoption across the organization, as well as for the volume of contributions. The result was widespread acceptance and collaboration across the company’s divisions.

Highlighted by cristode

our research shows the applications that drive the most value through participatory technologies often aren’t those that management expects.

Highlighted by vkidd32

By contrast, our research shows the applications that drive the most value through participatory technologies often aren’t those that management expects.

Highlighted by pgillin

organizations try to dictate their preferred uses of the technologies—a strategy that fits applications designed specifically to improve the performance of known processes—rather than observing what works and then scaling it up

Highlighted by vkidd32

The best uses come from users—but they require help to scale.

Highlighted by cristode

Efforts go awry when organizations try to dictate their preferred uses of the technologies—a strategy that fits applications designed specifically to improve the performance of known processes—rather than observing what works and then scaling it up

Highlighted by pgillin

chooses the wrong uses, organizations often don’t regroup by switching to applications that might be successful

Highlighted by vkidd32

y contrast, our research shows the applications that drive the most value through participatory technologies often aren’t those that management expects.

Highlighted by cristode

The intended use never caught on, but people in the company’s recruiting staff began using the tools to share recruiting tips and pass along information about specific candidates and their qualifications.

Highlighted by vkidd32

The intended use never caught on, but people in the company’s recruiting staff began using the tools to share recruiting tips and pass along information about specific candidates and their qualifications.

Highlighted by pgillin

Efforts go awry when organizations try to dictate their preferred uses of the technologies—a strategy that fits applications designed specifically to improve the performance of known processes—rather than observing what works and then scaling it up.

Highlighted by cristode

—in this case, using Web 2.0 for collaborative project management

Highlighted by vkidd32

frontline staffers who found the best use for a participatory technology

Highlighted by vkidd32

What’s in the workflow is what gets used. Perhaps because of the novelty of Web 2.0 initiatives, they’re often considered separate from mainstream work. Earlier generations of technologies, by contrast, often explicitly replaced the tools employees used to accomplish tasks. Thus, using Web 2.0 and participating in online work communities often becomes just another “to do” on an already crowded list of tasks.

Highlighted by maximizen

What’s in the workflow is what gets used

Highlighted by vkidd32

often considered separate from mainstream work

Highlighted by vkidd32

often becomes just another “to do” on an already crowded list of tasks.

Highlighted by vkidd32

At AT&T, it was frontline staffers who found the best use for a participatory technology—in this case, using Web 2.0 for collaborative project management. Rather than dictating the use, management broadened participation by supporting an awareness campaign to seed further experimentation. Over a 12-month period, the use of the technology rose to 95 percent of employees, from 65 percent.

Highlighted by cristode

highest chance of success when incorporated into a user’s daily workflow

Highlighted by vkidd32

with the excitement of the launch, contributions seem to flourish. As normal daily workloads pile up, however, the energy and attention surrounding the rollout decline, as does participation

Highlighted by vkidd32

What’s in the workflow is what gets used

Highlighted by cristode

Participatory technologies have the highest chance of success when incorporated into a user’s daily workflow. The importance of this principle is sometimes masked by short-term success when technologies are unveiled with great fanfare; with the excitement of the launch, contributions seem to flourish.

Highlighted by cristode

It has modified the way work is typically done and has made Web tools relevant to how employees actually do their jobs

Highlighted by vkidd32

use blogs and wikis as core tools for reporting on the progress of their work

Highlighted by vkidd32

stay abreast of their progress and provide direction by using tools that make it easy to mine data on workflows

Highlighted by vkidd32

allows senior managers to allocate resources to the most important and time-sensitive projects.

Highlighted by vkidd32

Once Pixar built video into the wikis, their quality improved as critiques became more relevant

Highlighted by vkidd32

Appeal to the participants’ egos and needs—not just their wallets

Highlighted by vkidd32

Pixar moved in a similar direction when it upgraded a Web 2.0 tool that didn’t quite mesh with the way animators did their jobs. The company started with basic text-based wikis to share information about films in production and to document meeting notes. That was unsatisfactory, since collaborative problem solving at the studio works best when animators, software engineers, managers, and directors analyze and discuss real clips and frames from a movie.4 Once Pixar built video into the wikis, their quality improved as critiques became more relevant. The efficiency of the project groups increased as well.

Highlighted by cristode

In one failed attempt, a leading Web company set performance evaluation criteria that included the frequency of postings on the company’s newly launched wiki. While individuals were posting enough entries to meet the benchmarks, the contributions were generally of low quality

Highlighted by vkidd32

Appeal to the participants’ egos and needs—not just their wallets

Highlighted by cristode

A more effective approach

Highlighted by vkidd32

bolstering the reputation of participants in relevant communities, rewarding enthusiasm, or acknowledging the quality and usefulness of contributions

Highlighted by vkidd32

A more effective approach plays to the Web’s ethos and the participants’ desire for recognition: bolstering the reputation of participants in relevant communities, rewarding enthusiasm, or acknowledging the quality and usefulness of contributions.

Highlighted by pgillin

when prizes for contributions were handed out at prominent company meetings, employees submitted many more ideas for business improvements than they did when the awards were given in less-public forums.

Highlighted by vkidd32

While individuals were posting enough entries to meet the benchmarks, the contributions were generally of low quality. Similarly, a professional-services firm tried to use steady management pressure to get individuals to post on wikis. Participation increased when managers doled out frequent feedback but never reached self-sustaining levels.

Highlighted by cristode

The right solution comes from the right participants

Highlighted by vkidd32

create a critical mass for participation as well as add value is another key to success

Highlighted by vkidd32

A more effective approach plays to the Web’s ethos and the participants’ desire for recognition: bolstering the reputation of participants in relevant communities, rewarding enthusiasm, or acknowledging the quality and usefulness of contributions. ArcelorMittal, for instance, found that when prizes for contributions were handed out at prominent company meetings, employees submitted many more ideas for business improvements than they did when the awards were given in less-public forums.

Highlighted by cristode

With participatory technologies, it’s far from obvious which individuals will be the best participants. Without the right base, efforts are often ineffective

Highlighted by vkidd32

The right solution comes from the right participants.

Highlighted by cristode

When P&G introduced wikis and blogs to foster collaboration among its workgroups, the company targeted technology-savvy and respected opinion leaders within the organization

Highlighted by vkidd32

With participatory technologies, it’s far from obvious which individuals will be the best participants. Without the right base, efforts are often ineffective.

Highlighted by cristode

Best Buy experimented with internal information markets, the goal was to ensure that participation helped to create value. In these markets, employees place bets on business outcomes, such as sales forecasts

Highlighted by vkidd32

To select users who will help drive a self-sustaining effort (often enthusiastic early technology adopters who have rich personal networks and will thus share knowledge and exchange ideas), a thoughtful approach is required. When P&G introduced wikis and blogs to foster collaboration among its workgroups, the company targeted technology-savvy and respected opinion leaders within the organization. Some of these people ranked high in the corporate hierarchy, while others were influential scientists or employees to whom other colleagues would turn for advice or other assistance.

Highlighted by cristode

The resulting forecasts were more accurate than those produced by the company’s experts

Highlighted by vkidd32

Balance the top-down and self-management of risk

Highlighted by vkidd32

Numerous executives we interviewed said that participatory initiatives had been stalled by legal and HR concerns. These risks differ markedly from those of previous technology adoptions, where the chief downside was high costs and poor execution

Highlighted by pgillin

Companies often have difficulty maintaining the right balance of freedom and control. Some organizations, trying to accommodate new Web standards, have adopted total laissez-faire policies, eschewing even basic controls that screen out inappropriate postings. In some cases, these organizations have been burned.

Highlighted by vkidd32

Balance the top-down and self-management of risk

Highlighted by cristode

should work with the legal, HR, and IT security functions to establish reasonable policies, such as prohibiting anonymous posting

Highlighted by vkidd32

Numerous executives we interviewed said that participatory initiatives had been stalled by legal and HR concerns. These risks differ markedly from those of previous technology adoptions, where the chief downside was high costs and poor execution.

Highlighted by cristode

The sites of some companies incorporate “flag as inappropriate” buttons, which temporarily remove suspect postings until they can be reviewed, though officials report that these functions are rarely used. Participatory technologies should include auditing functions, similar to those for e-mail, that track all contributions and their authors. Ultimately, however, companies must recognize that successful participation means engaging in authentic conversations with participants.

Highlighted by pgillin

Companies often have difficulty maintaining the right balance of freedom and control. Some organizations, trying to accommodate new Web standards, have adopted total laissez-faire policies, eschewing even basic controls that screen out inappropriate postings. In some cases, these organizations have been burned.

Highlighted by cristode

Ultimately, however, companies must recognize that successful participation means engaging in authentic conversations with participants.

Highlighted by vkidd32

Prudent managers should work with the legal, HR, and IT security functions to establish reasonable policies, such as prohibiting anonymous posting.

Highlighted by cristode

Company leaders first need to survey their current practices. Once they feel comfortable with some level of controlled disruption, they can begin testing the new participatory tools.

Highlighted by vkidd32

articipatory technologies should include auditing functions, similar to those for e-mail, that track all contributions and their authors. Ultimately, however, companies must recognize that successful participation means engaging in authentic conversations with participants.

Highlighted by cristode

Keep the conversation going on Twitter

Do our six recommendations agree with the successes and failures you’ve seen? Is the economic downturn affecting your perception and use of Web 2.0 tools? What organizations get the most out of Web 2.0, and why? Use the #web2.0work hashtag to respond to this article and these questions on Twitter. We’ll be following them and responding via our McKinsey Quarterly account, @McKQuarterly.

Highlighted by maximizen