Translating Social Change Into Forecasts of Business Effects is an Easy Process Coursehero
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Should Companies Embrace Social Business? CASE STUDY s companies become more dispersed in the slobal marketplace, businesses are turning communication on both social media and email, increasing the time and cost of performing their increasingly to workplace collaboration tech- jobs. BASF, the world's largest chemical producer nology, including tools for internal social network- with subsidiaries and joint ventures in more than 80 ing. These tools can promote employee collaboration countries, prohibited some project teams from using and knowledge sharing, and help employees make e-mail to encourage employees to use new social faster decisions, develop more innovative ideas for media tools. products and services, and become more engaged in Social business requires a change in thinking, their work and their companies. including the ability to view the organization more Adoption of internal enterprise social networking democratically in a flatter and more horizontal way. is also being driven by the flood of email that em- A social business is much more open to everyone's ployees typically receive each day and are increase ideas. A secretary, assembly line worker, or sales ingly unable to handle. Hundreds of email messages clerk might be the source of the next big idea. As a must be opened, read, answered, forwarded, or result, getting people to espouse social business tools deleted. For example, too much email is what drove requires a more of a "pull" approach, one that en- Hawk Ridge Systems to adopt a Glip, a cloud-based gages workers and offers them a significantly better social tool for its 200 employees located in 15 of- way to work. In most cases, they can't be forced to fices in the United States and Canada. Glip features use social business apps. real-time messaging, group chat, videoconferencing, Enterprise capabilities for managing social net- shared calendars, task management, and file sharing works and sharing digital content can help or hurt an all in one place. Glip helped Hawk Ridge operations organization. Social networks can provide rich and manager Samuel Eakin go from 200 to around 30 diverse sources of information that enhance orga- emails per day. Another driver of enterprise social nizational productivity, efficiency, and innovation, networking is "app fatigue." In order to collaborate, or they can be used to support pre-existing groups many employees have to log on to numerous apps, of like-minded people that are reluctant to com- creating additional work. Contemporary enterprise municate and exchange knowledge with outsiders. social networking systems often integrate multiple Productivity and morale will fall if employees use capabilities in one place. internal social networks to criticize others or pursue A recent survey of 421 professionals conducted by personal agendas. Harvard Business Review Analytics Services found Social business applications modeled on consumer- that collaboration tools could be effective in boosting facing platforms such as Facebook and Twitter will efficiency and productivity, while enabling users to not necessarily work well in an organization or make better business decisions. The products also organizational department that has incompatible expanded the potential for innovation. However, objectives. Will the firm use social business for opera- not all companies are successfully using them. tions, human resources, or innovation? The social Implementation and adoption of enterprise social media platform that will work best depends on its networking depend not only on the capabilities of specific business purpose. Additionally, employees the technology but on the organization's culture and who have actively used Facebook and Twitter in their the compatibility of these tools with the firm's busi- personal lives are often hesitant to use similar social ness processes. tools for work purposes because they see social media When firms introduce new social media technol- primarily as an informal, personal means of self- ogy (as well as other technologies), a sizable number expression and communication with friends and fam- of employees resist the new tools, clinging to old ily. Most managers want employees to use internal ways of working, including email, because these social tools to communicate informally about work, methods are more familiar and comfortable. There but not to discuss personal matters. Employees ac- are companies where employees have duplicated customed to Facebook and Twitter may have trouble
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imagining how they could use social tools without program for senior executives; and training employee getting personal. experts to spread know-how of the new social tools This means that instead of focusing on the tech- and approaches within the company, and demonstrate nology, businesses should first identify how social their usefulness. Using IBM Connections as the social initiatives will actually improve work practices for business toolset, Covestro's efforts are now paying off: employees and managers. They need a detailed 50 percent of employees are now routinely active in understanding of social networks: how people are the company's enterprise social network. Although currently working, with whom they are working, ROI on social business initiatives has been difficult to what their needs are, and measures for overcoming measure, Covestro has benefited from faster knowledge employee biases and resistance. flows, increased efficiency, and lower operating costs. A successful social business strategy requires Another company that has made social business leadership and behavioral changes. Just sponsor- work is ModCloth, a popular online apparel, accesso- ing a social project is not enough-managers need ries, and home decor retailer noted for its fun and en- to demonstrate their commitment to a more open, gaging customer shopping experience. The company's transparent work style. Employees who are used business is based on strong social media ties with cus- to collaborating and doing business in more tradi- tomers, with 134,000 Twitter followers and 1,600,000 tional ways need an incentive to use social software. Facebook "likes." Because social networks played such Changing an organization to work in a different way a large role in ModCloth's growth and development, requires enlisting those most engaged and interested the company was eager to adopt social networking to help design and build the right workplace environ- tools for internal communication. ModCloth adopted ment for using social technologies. Microsoft's Yammer as its social business tool. Management needs to ensure that the internal ModCloth started piloting Yammer with a small and external social networking efforts of the com- test group, and used a People Team to promote the pany are providing genuine value to the business. tool. Yammer caught on quickly with employees, Content on the networks needs to be relevant, up to and was soon being used by over 250 employees date, and easy to access; users need to be able to con- across four offices in the United States. Every new nect to people that have the information they need ModCloth employee is introduced to Yammer on his and that would otherwise be difficult or impossible or her first day of work. Yammer helps new hires to reach. Social business tools should be appropriate learn their coworkers' names and feel they are part for the tasks on hand and the organization's business of the company. processes, and users need to understand how and Yammer has proved very useful for connecting why to use them. people and ideas, saving ModCloth considerable For example, NASA's Goddard Space Flight time and money. For example, Scott Hernandez, Center had to abandon a custom-built enterprise ModCloth Head of Talent Acquisition, has used social network called Spacebook because no one Yammer to identify promising hires for engineering knew how its social tools would help people do their through referrals from ModCloth employees. jobs. Spacebook had been designed and developed Yammer has helped save teams from duplicating without taking into consideration the organization's work that has already been done. ModCloth's User culture and politics. This is not an isolated phenom- Experience group began designing a research cam- enon. Dimension Data found that one-fourth of the paign to find out what users wanted in mobile appli- 900 enterprises it surveyed focused more on the suc- cations for the company, posting news of the project cessful implementation of collaboration technology, to Yammer. Within hours, a member of ModCloth's rather than how it's used and adopted. Social Team posted the results of a large user survey Despite the challenges associated with launching on mobile expectations, including a detailed spread- an internal social network, there are companies using sheet with customer feedback data that it had already these networks successfully. For example, Covestro, a completed. The User Experience team was able to leading global supplier of coatings and adhesives, save two weeks of work. polyurethanes, and highly impact-resistant plastics, The Esquel Group, based in Hong Kong, is a sup- made social collaboration a success by making the plier of cotton textiles and apparel, doing everything tools more accessible; demonstrating the value of these from cotton farming and fabric production to gar- tools in pilot projects; employing a reverse mentoring ment manufacturing and finishing. Its core business
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76 Part One Organizations, Management, and the Networked Enterprise is making cotton tops for fashion brands such as Esquel's industry is one where companies often Lacoste, Ralph Lauren, and Nike. This company move to lower-wage countries as labor costs rise. was attracted to internal social networking as a way Rather than relocating operations, Esquel prefers to unite its different lines of business in various to achieve savings through improvements in produc- locations. Esquel chose Microsoft Yammer as its en- tivity. By helping employees work more efficiently terprise social networking tool. Esquel employees and effectively, business social networking has helped communicate in a variety of languages, so it espe- Esquel save approximately $2 million each year. cially appreciated Yammer's translation capabilities. Sources: "Top Four Social Collaboration Software Fails," search- Management sees many benefits in being able mobilecoputing techtarget.com, accessed February 7, 2018; to "listen" to its workforce. When people post com- "Modcloth: Keeping Emplayers Engaged While Scaling Up, ' and plaints on the network, it is able to find innovative "Esquel Group: Social Technology Weaves in Enterprise Together," solutions and new ideas. For example, workers in blogs office.com, recessed February 7, 2018: Margaret Jones and Cordelia Kroch, The Growth of an Enterprise Social Network Esquel's garment operation posted a complaint on a BASE," www.simply-communicate.com, accessed March 12, Yammer about having to wait in a long line to re- 201 8; Paul Leonardi and Thedal Nerley, "What Managers Nood in charge their cards for purchasing meals in the com- Know About Social Books " Harvard Business Review, November pany cafeteria. Four months later, the company had December 201 7; Sue Hildreth, "What's Next for Workplace CollaborationF searchcontentmanagement.com, March 2, 2017; a solution-a kiosk that instantly transferred funds Arunima Majumdor "] Remors Why Collaboration Tools Fail from payroll to the meal card. in Make the intended Impact," cLearning feduary, January 20, Ideas posted on Yammer were used to improve 2017, Harvard Business Review Analytic Services, "Collaboration Esquel's quality control process. Instead of using mea- Technology Boosts Organizations," Insight Enterprises Inc. (February 13, 2017); and Dimension Data, *2016 Connected suring tape to ensure that sleeves and collars matched Enterprise Report, " 2018. specifications, an employee in the quality control de- partment used Yammer to float the idea of an electric ruler. The concept was refined through more Yammer CASE STUDY QUESTIONS discussion. Instead of taking measurements and write 2-13 Identify the management, organization, and ing numbers down, staff can capture measurements technology factors affecting adoption of inter- faster and more accurately electronically. nal corporate social networks. Yammer also helps Faquel replicate innovation- 2-14 Compare the experiences implementing and efficiency-promoting solutions throughout the internal social networks of the organizations company. Traditionally, an innovation at one site described in this case. Why were some often is not rolled out to other locations. Yammer successful? What role did management provides a channel for news of innovations and play in this process? better practices to spread more easily throughout 2-15 Should all companies implement internal the organization. enterprise social networks? Why or why not?
Case study question 1:
Identify the management, organization, and technology factors affecting adoption of internal corporate social networks.
Case study question 2:
Compare the experiences implementing internal social networks of the organizations described in this case. Why were some successful? What role did management play in this process?
Case study question 3:
Should all companies implement internal enterprise social networks? Why or why not?
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