David Stillwell, Science Director, Cambridge Personality Research
 Azeem Azhar, Founder & CEO, Peer Index
 Martin Talks, President, Digital, Draft FCB.
 Nathalie Nahai, Digital Strategy | Web Psychology, The Web Psychologist

It was a highly interactive session, becoming a trending topic on Twitter and ending up as one of the most talked about events of the week, with Nathalie Nahai winning speaker of the week award. Gabrielle Laine-Peters has curated an excellent storify of the event which gives an overview of what was covered, and the video of the session is now on YouTube:

David talked about the impact of personality type on our on-line behaviours,  Nathalie introduced neuroesthetics, Azeem shared insights from PeerIndex and Martin was our caveman-in-residence. With cognitive, experimental, applied and evolutionary psychology covered, I threw in some social psychology: Should we consider groups as a unit of influence, rather that individuals? We often think about influence as an end point, but we’re constantly influencing and being influenced. It is a networked effect, at least in what we see in the work we do here – a business is built of influences working together and against each other, shaping opinions, making things happen, blocking things. Messages flow across the network, spreading, branching and interrupting.

It was very interesting that the lean methodology came up during the session. Want to test a new product? Create a Minimum Viable Product, test it and adapt it. Even the experts find it very hard to predict behaviours. Sometimes a good old-fashioned experiment is the fastest way to find out what will work. Decision making is a complex process, involving emotional factors that lead to “evidence” gathering to  justify the decision rationally. The over riding evidence is that we aren’t as rational as we think we are (although not totally unpredictable)!

Nathalie has posted her slides and has a book coming out soon, and Martin has posted a podcast of interviews. And, if you missed it or want more, keep your eyes peeled – Chinwag has a longer half-day event in May – more details soon.

Life in a modern business is tough and it’s getting tougher. It’s something that came up again and again during the sessions at Social Media Week London.

I suspect that if I asked you to grab a piece of paper and sketch a graph of the amount of change in your organisation over time it would look something like this.

The amount of change is going up. To make things even more interesting, the rate at which the change is going up is increasing too. Double whammy – your graph has an upward curve. Of course you know this already – the amount of change you saw last year was significantly more than the year before, and next year you expect to see even more.

If your graph doesn’t look like this then you’re lucky. Maybe you work in an industry where things are calmer? If so, you can stop reading now, this post isn’t for you.

Now think about how your business learns. How quickly can it change direction? How quickly can it reshuffle people and teams? How rapidly can it find and build new skillsets? What is your organisation’s capacity for learning from and reacting to change?

Once again let’s sketch a graph. Does yours look like this?

As time goes by it gets harder to improve. As you reach economies of scale it gets much more difficult to incrementally improve your processes, you’ve grabbed all the ‘low hanging fruit’ and you’re now into what a former boss of mine used to call the ‘hard yards’.

Anyone think there’s a problem with the shape of these two different graphs? Of course there is – the change curve is getting steeper at the same time as the capacity to learn is flattening out.

In fact what happens if you superimpose the two? You get something like this.

So – and here’s the big question… Which side of the “interesting” line do you think you are on right now? If you’re not already on the scary right-hand side of it, you will be soon – social technology is pushing us there by increasing the speed of communication and driving the rate of change.

So what are the implications? How do our organisations adapt to an environment where the world changes so fast it outstrips our capacity to learn how to deal with it?

One of my favourite thinkers on the subject is Eddie Obeng (a Professor at the School of Entrepreneurship and Innovation at Henley Business School). His book All Change – The Project Leaders Secret Handbook is one of the best practical guides to managing change I’ve ever read. I first heard Eddie talk about this dilemma over 15 years ago – yes, he was drawing the same curves back then – so he’s obviously a man ahead of his time. He calls the right hand side of the line the “New World” and writes and teaches about how businesses can organise themselves to cope with it – you should check him out.

When we started building Milestone Planner, we knew that we wanted to build a tool that would help people and organisations operate in the “New World“. Plans are made, but then change quickly to keep in step with the rapidly changing landscape. People work in ‘virtual teams’ in a fluid organisation. More and more of the companies we work with are looking to find some clarity in this rapidly changing world, where old notions of command and control are being made obsolete, and a new, networked organisation is emerging.

At the heart of Milestone Planner is the idea that organisations in the New World are no longer rigid hierarchies, but networks. There are many great tools out there for planning and project management which worked really well in the old world, but we’re aiming for something different. We believe we have something very special in Milestone Planner and as we continue to develop it for our New World customers, I’m pleased to say we’re finding more ways of helping them manage the change and find some sanity on the right hand side of the graph. Social technology may have caused some of the problem, but it also has some of the answers.

That was the topic for my talk at Social Media in Enterprise (#SMiE) at Cass Business School – with much thanks to David Terrar and Alan Patrick for putting on a great event.

Recently someone said to me “Two types of people look at you funny.” – those two types of people being undertakers and psychologists. The sad thing is that most businesses would rather see an undertaker than a psychologist, even though the heart of all of their business problems is people-related. Worse still, when businesses look to deploy social media or any other form of collaborative technology, they tend to tackle the technical-feature decisions, rather than the social-people ones. If you approach social media without the psychology, you just end up with the media – you may as well just pay your staff to watch TV. And, sadly, that’s what many businesses do with their communications – they broadcast information out, and don’t build in the vital return paths that provide the business intelligence that is needed to excel.

Is your business social? Or is it anti-social?

A distinction has to be made between process-centric and knowledge-centric businesses. All organisations feature both aspects, but the balance is radically different. For example, a manufacturer of commodity items in a market with little competition will tend to be highly process-centric. It is all about doing the same thing, those processes, faster and cheaper. Better and smarter would be good, but it isn’t mandatory. At the other end of the scale, a market analysis company in a highly competitive market is highly knowledge-centric. Cheaper and faster might be good in such an environment, but ultimately better and smarter win out. In a knowledge-centric business informal communication is a key component of value creation. As soon as you define that informal communication in its context you are talking about social interaction. The leap to seeing the business value of social software isn’t a big one, but before we go there it’s worth pondering the social nature of business a little further.

Hired for a purpose or for a higher purpose?

Even a cursory perusal of the literature that covers running a successful business is likely to convince you of one thing: Businesses that succeed, and continue to succeed, are driven by a big vision that reaches beyond the walls of the business itself, and towards some higher (social) goal. I challenge anyone to name many successful business where the initial staff were hired just to do a job. From Cisco Systems to Zappos, from Google to Innocent, you will find companies full of motivated staff who spend most of their time more convinced that they are changing the world than changing the balance sheet. Before you join, invest in or do business with any company, ask these questions:

What is the (social) purpose of the business? How does it contribute to society? How does it support community?

The answers will tell you more about the health of the business than any annual report. Businesses are, and have always been, social. Business leaders may have lost sight of the imperative need for a social purpose in recent decades, but consumers are marching to remind them that the right to make money is predicated on the responsibility to serve the society which the business is, in reality, totally reliant on. It has always been so. The social enterprise is not a new concept, and while Cadbury may now be Kraft, a new generation of socially aware businesses is starting to spring forth. Now, before I get accused of being a hippy, let me be the first to point out that running a business is fundamentally about bringing in the cash. However, the permission to make money is granted by the customers and their influencers (society and societies). Ignoring that is a guaranteed path to failure.

Does money grow on trees – or in networks?

Whenever someone engages with a new business, there is the inevitable, and sensible, desire to know how it works. What baffles me is that more often than not, the answer to such enthusiastic enquiries is to thrust an org chart into the inquisitor’s hands. Never, in my entire life, has one of these curious artefacts reflected the current employee reporting chain in any business with more than a dozen or so staff. Even if, by some miracle of information engineering, it did, that would still tell me precious little about how the day-to-day operations of the business proceed. That branch of the tree diagram on the right, that seems to have a cluster of titles related to accounting – do those individuals just spend their days talking to themselves, never interacting with the other parts of the organisation? Of course not. A functioning business is a network of people connected by communication channels and focussed around projects (points of purpose), documents (information) and meetings (interactions). It’s not about individuals, as much as an organisation may build its policies that way, it is about teams and teams of teams. It’s social.

Belief is the first step to behaviour

Social systems require trust, purpose and commonality to persist. They require other things too, but these three are key health indicators. Without trust factions form and fiefdoms emerge. Without purpose effort is applied in conflicting directions, or not at all, leading to dissipation and disillusionment. Without commonality, the social mesh is fractured and broken by misunderstandings. I’m sure you’ve never worked in a business that has been wrecked by fiefdoms, dissipation and continual misunderstandings, but let’s say that you have a friend who has. Now you know why. Putting the ship right requires changing what people believe, and that isn’t easy. And yet “just believe” seems to be the leading business case for most social software in business. That’s no way to make a business case. This is business, and it’s all about the Benjamin’s. Changing what people believe starts there. However, I have an issue with “ROI”. I’ve run a billion dollar P&L, which carried the joyous privilege of having to review ROI-based business cases every week. The problem? Randomly Ordered Integers, the lot of them. Admittedly they were sometimes created with passion and care, but every existing ROI spreadsheet is a case of garbage in, garbage out – or as one fellow exec put it “a barrel load of assumptions carefully chosen and arranged to summon up the letters Y, E and S.”

Let’s start with a different question: Where is the intellectual property in your organisation? If it is a knowledge-based business, a good guess is that it is in the heads (and conversations) of employees and buried in inboxes on laptops. Just before you say “but it’s on the server,” what’s the size limit on your employee’s mailbox? And where does it go after that? This is the fate of enterprise 1.0 software and mobile email. Email has to be one of the singularly most inefficient ways of moving information around a network of people. Almost any tool that frees employees from unproductive hours tending to their inbox will pay for itself in weeks. If it can rescue the millions of dollars worth of information that is lost each time an employee leaves an organisation, through the information that walks out of the door in their heads and the email archive that becomes deleted or inaccessible once they leave, you have a gold mine. That’s the ROI.

“Are you here to set up the socialist system?”

Neatly filed under “you couldn’t make it up,” the cordial greeting from an employee at a recent customer – “are you here to set up the socialist system?” – I wish I could claim to be such an idealist, but actually I was just there to train a few people to blog. This is about software, not politics, but social software deployments often cause more politics than an election campaign. Effective social software distributes communication across the human network. In doing so it can wipe out the power-bases of middle managers and those that exercise influence through the creation of information vacuums. Those folks are smart enough to spot the change coming and don’t take kindly to it. That’s no reason to avoid social software though. The scarcest resource in any business is not financial capital. Financial capital can be created from thin air, at least on a temporary basis (see compound debt products as a proof point). The scarcest resource in any business is human capital. Human capital does not appear from thin air, it has to be attracted, nurtured and maintained. If you can find the right human capital for a business, the financial capital will follow.

Making a change

To break down the fiefdoms and fix the dissipation and misunderstanding requires transparency, an emergent plan and building some common understanding within the organisation. Once these three take root, trust, purpose and commonality will emerge. The challenge is that transparency, emergent plans and common understanding can be highly illusive when all you have are fiefdoms, dissipation and misunderstanding. Time for a plan B. That plan B is to look through the organisation for groups that already exhibit the very behaviour that social media promotes and equip them with the tools. It will usually be in the most innovative areas of the business. Enable the teams and let them lead by example.

Business is changing, and success rests in enabling change to propagate more quickly, and that happens through more efficient human networks. Business is social. It needs social software.

I’ll talk more about that in a future post. At the individual, consumer level social graphs are a map of the relationships people have, and have had. It isn’t unusual for a student entering the workplace to have thousands of contacts on Facebook. Social Graphs are big news, so when I heard that Social Media Week‘s London Partner, Chinwag, were running an event titled “Understanding Social Graph Optimization” I headed up to town.

While we aren’t about “monetizing” social graphs at SocialOptic - we’re about helping people to be more productive – for big media companies Social Graphs spell h-u-g-e o-p-p-o-r-t-u-n-i-t-y. The event was at the IAB‘s offices, and sponsored by instant messaging provider Meebo, and with an interesting line up for the panel:

• Antony Mayfield (Chair) – SVP Social Media, iCrossing
• Carter Brokaw, CRO, Meebo
• Ajit Jaokar, Future Text
• Vincent Sider, Head of Strategy: Social Media, Gaming & Presence, BT
• Maz Nadjm, Online Community Product Manager, BSKYB
• Trevor Johnson, Head of Strategy and Planning, EMEA – facebook

There was lots of talk about how BT is (and isn’t) using Twitter. Interestingly I’m currently having a Twitter exchange with @BTcare about an issue accessing Milestone Planner from a BT OpenZone hotspot, which they have been most helpful about. The focus was more about “leveraging the social graph” than optimising it, something that made me feel a little uneasy.

The general feeling from the panel was that users are happy to share their social graphs for providers to use, as long as it is done with their permission, and they get something back from it. However, Facebook’s Trevor Johnson said ”it’s not about monetization, it is about users.” Facebook isn’t a stranger to concerns over how data is used, and Chinwag’s Sam Michel pitched in a question about user privacy, and more specifically users’ understanding of privacy issues. It’s definitely an emerging challenge, worthy of consideration. The convestion spread to Twitter, a few quotable highlights:

@juliusduncan: Social Graph Optimisation SGO has taken over from SMO in the past 6-9 months Carter Brokaw – CRO, Meebo #smwldn

@benjaminellis: LOL, @mazi on content: “sharing is caring, but love is not free.” #smwLDN

@zoe9: #smwLDN Maz Nadjm, BSKYB says social media is a collective effort in an organisation not just for marketing.

@yay_tar: RT @juliusduncan: #smwldn ‘if you can’t get the buy in of the CEO up front, you are in trouble’ Vincent Sider, BT Strategist

The panel’s closing comments on social media contained some gems:

• BT :- It’s all about education. Create an eco system where customers can be rewarded.
• Sky :- It’s all about iteration. Test out something small and take it forward.
• Facebook :- Don’t put yourself under pressure to do something big and immediate. Iterate.
• Meeba :- Enable people to interact with content. Watch and learn, and listen, and itterate against your content.
• Future Text :- Think of what the customer wants.

So, the theme seems to be start small, learn, and grow. That’s advice that’ll go down very well here! By the way, for anyone involved in Social Media week that would like to, sign up for Milestone Planner Standard Edition and @ or DM us on twitter (@SocialOptic) for three months free Milestone Planner Professional Edition – this week only!

• Edit milestones – no more pop up box! Just click the title to change it. Click the Milestone ‘triangle’ to pop up the status chooser and select red, yellow, green or blue (completed) – or delete the milestone. It’s whizzy, you’ve got to try it!
• See the owner – click on the person icon and choose an owner for the milestone. Type a name, and click ‘invite’ to bring them into the project. If you hover over the milestone owners’s name, any milestones belonging to  that person will glow. You might want to zoom right out on the timeline for the best effect!
• Scroll Wheel Support – for those of you with mouse wheels and track pads, you can scroll up and down using them.

A Greater Sense of History

The biggest change has been to how “history” is handled. When you hover a mouse over a milestone, it will reveal the when the milestone was last updated, and what the most recent change to the milestone was – with little icons for date, owner, text update, etc – and who may the update. If you click on the “Show history” pull down, you can see more of the change history:

In the Standard Edition of Milestone Planner, you have the last few changes, in the Professional Edition you have access to the full history since the milestone was created. You’ll notice the history isn’t just what happened to the milestone (created, slipped, status change, …), it can include an explanation or comment as well.

Whenever you update a milestone, the history box will pop up and ask you for a comment. It is optional, but sometimes it is helpful to add an explanation. For example, if I slip a milestone back 5 days I might want to add a note to explain that it will be late because Dave has been stuck at home in the snow. You can also add a URL into a note, for example linking to a relevant document or an image. The link will be hyperlinked in the history view.

Conversations Around Milestones

As you see, your team can now have conversations around any milestone, interwoven with the changes to it. The conversation is kept in one place, so everyone working on the milestone can see who and what is being affected by what they are working towards. This makes it much easier to distribute the management of the project, but ensure that things still remain on track. Even users with standard access to a project (who can’t add or move milestones) can add comments.

Conversations Face to Face

That’s probably enough of a brain dump for one post! Starting next week is Social Media Week, with events all around the world  - It is going to be great (I might have a slight bias). I’ll be at Social Media Week London (event schedule here – the tickets are almost all gone) and speaking at “Social Media in Enterprises”  on at Cass Business School on Tuesday (more detail on the Business Two Zero blog) and “Social Media Measurement” at Sun’s offices on Friday. Do come and say hello – I’m always very happy to chat about Milestone Planner!

Keep your browser warm, there’s more coming very soon!