Innovators in Social Media

BusinessWeek published one of the first articles we have seen about a trend we commented on last year - social media inside the enterprise.  Social Media will provide a powerful new way to enable organizational development and change management inside companies, particularly those with borders created by siloes.  No World Borders has been following these trends for years and it is gratifying to see main stream media cover them and legitimize them now.

"At Ford, Scott Monty is using social media to remake the automaker's image—and reinvigorate its culture 

It started out with a simple question, on blogs, Facebook, and Twitter: Who should we profile as a Voice of Innovation for social media? Names poured in. Some commenters treated it as a vote, some as an essay contest. Others, including marketing maven Seth Godin, objected to the whole exercise. "Sorry to be a curmudgeon," he wrote. "But I really like BW best when they lead the discussion, not referee it."

Still, this process was bringing in names—lots we'd never heard of—and telling us about people doing all sorts of things with social media. What was wrong with that? Only one thing. As some commenters pointed out, we cast too wide a net. Social media, after all, extends from freewheeling entrepreneurs who build new software applications to consultants laboring inside giant corporations. It includes people who use it to push a product and those who use it to further an idea or just themselves. How could all of these innovators fit into a single category? They couldn't.

So we divided social media into four categories and picked a representative of each. They are:

1) Toolmasters: Imaginative techies whose schemes and applications open new doors and lead to insights. Our toolmaster is Noah Brier, who works days in New York at Barbarian Group, an interactive marketing shop. By night, Brier, 26,pieces together new social-media apps, including Brand Tags, a Web page that shows brand names and invites visitors to describe each with a single word or phrase. The more a word is repeated, the bigger its type, making it simple to see what folks think.

2) Eyes to the World: People innovating with social media to help others. Beth Kanter is our pick. She uses every avenue on the World Wide Web to raise funds for Cambodian childrenthrough her own charity, the Sharing Foundation. And she shares what she learns with nonprofits everywhere. Kanter, 52, is also a Net pioneer. A longtime employee of the Boston Symphony, she plunged into the Internet in the early 1990s. She started tapping friends—and friends of friends—through her blog while adopting two Cambodian children in 2000.

3) Crowdstrappers: Entrepreneurs or consultants who harness new approaches in social media to reposition or invigorate businesses—either their clients' or their own. Here we selectEric Brown, who has turned his apartment business in Royal Oak, Mich., into a social media laboratory. Brown, 49, has no training in social media. But he believes in openness and hopes that the ease of communicating through blogs, Twitter, and Facebook, can turn him into a better landlord.

4) Hidden heroes: These are people working inside old-style enterprises and use social media to change the culture and operations. Our choice is Scott Monty, who heads up social media at Ford Motor (F).

You'll see more on the first three nearby. Meantime, here's a fuller story on Monty.

When Ford came looking last year for a social media maven, Scott Monty had an answer for the auto giant: No. Monty, a consultant in Joseph Jaffe's Crayon consulting company, had been living in Boston for 20 years. He got to work with lots of blue-chip clients, from Coca-Cola (KO) to American Airlines (AMR). Why move to work inside an auto company—in Detroit?

Then he started thinking. "Here was one of the most storied brands in American culture asking me to do what I liked doing specifically for them, and I said no. I'm still shaking my head about that." When he reconnected with Ford, he said yes—and since July, Monty has been busy on blogs, on Twitter, and in the hallways of Ford trying to revive the culture of a suffering industrial giant. His boss, Chief Executive Alan Mullaly, compares the transformation of Ford to "changing the tires on a car going 60 miles per hour."

Monty's challenge, as he sees it, is to communicate to the rest of the world the same lesson that he learned himself: that Ford is not a stodgy company tied to the past. "I realized that I'd fallen victim to the very thing that Ford was trying to combat," he says. "There were assumptions I'd made that just weren't true anymore. These are the things I struggle with every day. We've got a big perception problem to overcome."

His first goal is to "humanize the brand, giving Ford as many faces as possible." The most prominent face, of course, is Mulally himself, who appears to be a willing experimenter. Last month at the Detroit auto show, Monty says, he collared the CEO coming out of a meeting and asked if he would answer some questions on Twitter.

"What's Twitter?" Mulally asked.

After Monty explained, he asked his followers on Twitter for questions for the Ford CEO. Mulally stayed with him and gamely answered a few. (True, there's no sign of him yet on Twitter, but that could be a good thing: The guy is dealing with 2008 annual losses of $14.6 billion, and sales that fell 40% in January.)

Monty says he wants to "democratize social media" within Ford, deputizing tens of thousands of employees to represent the company. They have blogs, of course, and have reached out to all tech and green bloggers. But the challenge is less about technology, Monty says, than changing the culture of an organization, making it so that people aren't afraid to speak up. "It's like being at a dinner party," Monty says. "If someone says something derogatory about Ford, do you just sit there? No, you respond."

Innovation is a Team Sport

Indifference, hostility, and isolation are among the major obstacles to a healthy innovation environment

BusinessWeek said it well. "In most companies, just about all the cards are stacked against the nurturing of innovation, especially the kinds of new ideas and disruptive innovations that generally lead to major changes in the marketplace and within the business.

Following are some of the behaviors observed in companies throughout the years that have convinced us how difficult it is to create an environment in which innovation can flourish.

Indifference

While just about every CEO and senior executive of a company pays lip service to innovation, many do not really mean it. They mouth the words—it would be politically incorrect not to embrace innovation—but they do little beyond that.

That's not because they are not good, smart, and highly competent people. It's just that innovation is not a part of their DNA. The majority of executives make it to top positions by being very good operational managers: meeting sales objectives, improving products and services to keep up with competitors, supporting existing customers and acquiring new ones, managing mergers and acquisitions, achieving the required financial results quarter after quarter, and so on. These management jobs are very tough and getting tougher, given our rapidly changing, fiercely competitive, global business environment. Being a good manager takes very hard work, attention to detail, and organizational discipline.

But as executives rise up in the organization, other skills become increasingly important. They need to transition from being a manager to being a leader.

Management is about business results and processes. Leadership is about people. The key quality you need in good leadership is passion—the urgency to attack and solve the complex problems that all organizations face. To do so, you need to be surrounded by highly talented people, and you need to find a way to transmit your passion to them, so they will buy into your vision of the future, perform at the highest possible levels, and come up with innovative solutions to the challenges of achieving the vision.

When skies are blue, a company might be able to cruise along with top managers who are indifferent leaders. Such managers are typically executing tactical, incremental strategies where the critical ingredients are good, disciplined management as well as operational excellence. But once the skies begin to darken, as they inevitably do, such managers will get into deep trouble, and often end up taking a business down with them. Their most talented innovators and strategists, those whose skills are now badly needed to help set the business on the proper course, have either long departed or become so disenchanted that they have nothing left to give.

Hostility

In general, managers who do not actively encourage new ideas and innovations in their organizations do so because of indifference. They will typically listen politely to your new idea, provide some encouragement, and offer good advice. If they are being honest, they will tell you they barely have the time, energy, and budget to help much beyond a pat on the back now and then.

But some managers go beyond indifference. Their initial reaction to any new idea is negative, if not downright hostile. This is particularly true if the idea comes from someone outside their own organization.

Some of them also exhibit characteristics that many of us would associate with being a bully. Typically, the corporate bullies I have met have achieved their high management positions because, despite their poor interpersonal skills, they are very good at other parts of the job. Sometimes, they are excellent innovators themselves, but given their autocratic tendencies, innovation for them is a one-man or one-woman show. They tend to be poor team players: Collaborative innovation is not for them.

Such hostile behavior is hugely detrimental to a healthy innovation environment. People championing new ideas, especially if they are potentially disruptive new ideas, are going against the grain of what the business is currently doing. Rejection is painful, especially coming from people in positions of authority. Senior managers can nurture those new ideas through positive words and actions, or they can stop them on their tracks by being overly negative and combative.

Isolation

I strongly believe innovation is a team sport. The 2004 National Innovation Initiative report observed that innovation "is multidisciplinary and technologically complex. It arises from the intersections of different fields or spheres of activity." That is why it often takes a group of people who are not only highly talented but who bring together diverse skills and points of view in order to successfully tackle the kinds of complex problems we face in the 21st century.

But perhaps even more important, a collaborative approach to innovation helps provide the energy and emotional support that new ideas need in their very early stages. New ideas are almost always rough and ill-formed at first. In my experience, nothing works better than bouncing ideas off other, supportive people. This back-and-forth dialog is crucial in helping to shape the idea into something more concrete, understandable, and actionable. Then it is more ready to face the tougher challenges and criticisms from line management and others in the organization.

That is why isolating people in organizational silos is one of the biggest obstacles to innovation. Companies that are serious about innovation do everything possible to break down silos and encourage communication and collaboration across the organization and beyond.

Fostering innovation is very hard, especially if the innovation is disruptive in nature. A spirit of innovation and collaboration does not come naturally to an organization. For such a spirit to take hold, it must become an integral part of the company's culture. None of this is easy, but it is what a company must do if it truly wants to create a healthy environment in which innovation can flourish.

Inspired by BusinessWeek and Irving Wladawsky-Berger, who retired from IBM last year after a 37-year career at the company. He is presently working on technology and innovation with IBM and Citigroup, and is a visiting professor at MIT and Imperial College.