What if Peter Drucker Taught Enterprise 2.0 Strategy?

1. WHAT IF PETER DRUCKER TAUGHT ENTERPRISE 2.0 STRATEGY

2. What LESSONS would he draw?

3. How would he have explained ENTERPRISE 2.0 to solve toKHy’s IusPnLss problems?

4. LLt’s EXPLORE a proposed Curriculum

6. INTRODUCTION About successful organizations Drucker stressed three things MANAGEMENT INNOVATION COMMUNITY

7. Drucker thought a MANAGER’S task is to make the strengths of people effective and their weaknesses irrelevant

8. Drucker believed that rLlyPnN on yLstLrKHy’s successes are far more risky than constantly INNOVATING

9. Drucker considered a business an economic organ that was equally a COMMUNITY

10. As for technology he deemed it an extension of the KNOWLEDGE WORKER

11. DRUCKER: Work creates a unique social bond HmonNst LmployLLs. |t’s Hlso tOL PntLrMHJL Mor using technology as tools which in turn helps shape corporate culture and personality.

12. NEITHER TECHNOLOGY OR PEOPLE determines the other, but each shapes the other

13. So that the result is a more EFFECTIVE CORPORATION

14. Work has always been SOCIAL

15. But TODAY’S Enterprise 1.0 knowledge worker is SEPARATED from his colleagues and customers

16. Blocked by voice mail, email and noise

17. Blocked by voice mail, email and noise So we’re less social

18. Blocked by voice mail, email and noise So we’re less social Less of a community

19. Blocked by voice mail, email and noise So we’re less social Less of a community Less effective

20. ButENTERPRISE 2.0 technologies and strategies can bring community back to work

21. STILL YET

22. ENTERPRISE 2.0 is not a substitute for poor LEADERSHIP

23. ‚Life can only be understood backwards. But then one forgets the other principle: that it must be lived forwards.‛

24. So lLt’s look IHJkwHrK HnK sLL WHATWOULD DRUCKERDO

25. LEHMAN BROTHERS THE 31st FLOOR

27. Before top LEHMAN EXECUTIVES arrived at Headquarters in NYC they would call the front desk

28. The front desk would get the security guard to HOLD A PRIVATE ELEVATOR

29. The private elevator was programmed to go straight to the 31ST FLOOR

30. Why did they spend an estimated $100,000 to create this process?

31. Why did they spend an estimated $100,000 to create this process? INEXPLICABLE–‚GLt out and meet pLoplL tOHt’s your laboratory, hands on‛ DRUCKER

32. Worse, most Lehman employees NEVER saw OR heard from their top Executives

33. In fact the CEO was nicknamed the INVISIBLE MAN

34. HERE HE |S… RICHARD FULD

35. So why did Lehman Executives AVOIDTHEIR OWNEMPLOYEES

36. SomL JlHPm tOLy KPKn’t wHnt to IL EXPOSEDMor Hll tOLy KPKn’t unKLrstHnK

37. Like the sub-prime mortgage CRISIS

38. Made worse by their ISOLATION

39. And alarmingly, the best at Lehman were SILENCED as they issued WARNINGS

40. Execs KPKn’t wHnt to OLHr THE TRUTH

41. Later, banks refused to do business with Lehman because of its COMPLEX & OPAQUE methods of trading

42. Soon, investors lost CONFIDENCE And the stocked plunged

43. Soon, investors lost CONFIDENCE And the stocked plunged -95%

44. THEN BANKRUPTCY

45. But if implemented, would ENTERPRISE 2.0 STRATEGY AND TECHNOLOGY have saved Lehman?

46. DRUCKER & E2.0 LESSONS LEARNED MANAGEMENT Because they were disconnected from the rest of the organization, bad news was either ignored (because they could ignore it in private) or never made it to the 31st floor. ORGANIZATION & COMMUNITY The organization became “sick” when management failed to ask themselves, “how long can this market sustain itself?” or even “what’s our current position and what happens if this bubble pops?” Where were the community feedback loops? TECHNOLOGY RECOMMENDATIONS MindTouch (Social Intranets) or ThoughtFarmer & Yammer (Microblogging ) would have given the Lehman community a social platform to alert the organization to the impending housing bubble collapse.

47. WOULD E2.0 HAVE SAVED LEHMAN? POSSIBLYNo methodologies or technologies can replace extremely poor leadership, but the right E2.0 tools and resulting community would have caused enormous pressure to change course. DRUCKER NOLLOmHn’s demise was a failure of leadership in multiple areas including strategy, risk management, organizational culture, integrity and ethics, and possibly including information systems. Enterprise 2.0 technologies can certainly enable greater information transparency up and down the corporate hierarchy but they cannot solve systemic malfeasance and deception. E2.0 systems would not have been able to overcome this organizational penchant for secrecy and opaqueness as they were too ingrained in the organizational culture. Jas Dhillon ThinkPassenger

48. GENERAL MOTORS The Aztek –‚|t looks tOL wHy MontLzumH’s rLvLnNL MLLls.‛

49. The Original AZTEK concept car wHsn’t tOHt IHK

50. So HOW did it end up like this?