In a recent project with a large Energy company, I was working with the senior management and staff to help develop and embed a customer-centric culture. It is their belief and mine (based on extensive research) that a customer-focused business will drive ongoing prosperity. In our research, along with that of many others, we have found that an important factor in enabling a customer culture to become embedded is internal cross-functional collaboration. We found senior and middle management in the Energy company were stymied in their attempts to focus on customers by emails and informational meetings that dominated their work day. Functions were working in silos with very little cross-function collaboration referencing customers and how to increase customer value.
This is typical of so many large organizations.
Don Tapscott, the author of several books on the impact of digitization on our work world, discusses new forms of collaboration in his newest book, Radical Openness: Four Principles for Unthinkable Success.
In an interview in September 2012, recorded in the McKinsey Quarterly, Tapscott described the new social media tools for collaboration:
“How do we get beyond e-mail to these new social platforms that include an industrial-strength social network? Not through Facebook, because that’s not the right tool. But there are tools now: wikis, blogs, microblogging, ideation tools, jams, next-generation project management, what I call collaborative decision management. These are social tools for decision making. These are the new operating systems for the 21st-century enterprise in the sense that these are the platforms upon which talent—you can think of talent as the app—works, and performs, and creates capability.
We had this view that knowledge is a finite asset, it’s inside the boundaries of companies, and you manage it by containerizing it. And this was, of course, illusory, because knowledge is an infinite resource. The most important knowledge is not inside the boundaries of a company. You don’t achieve it through containerization, you achieve it through collaboration.
So, there’s a big change that’s underway right now in rethinking knowledge management. It’s really moving toward what I would call content collaboration, as opposed to trying to stick knowledge into a box where we can access it. E-mail is sort of like what Mark Twain said about the weather. Everybody’s talking about it, and nobody’s doing anything about it. We have to get rid of e-mail.
You need to have a new collaborative suite where, rather than receiving 50 e-mails about a project, you go there and you see what’s new. All the documents that are pertinent to that project are available. You can create a new subgroup to talk about something. You can have a challenge or an ideation or a digital brainstorm to advance the interests of that project. You can co-create a document on a wiki. You can micro-blog the results of this to other people in the corporation who need to be alerted.”
This thinking and these tools apply directly to sharing knowledge about customers and competitors. Effective use of the tools can have a substantial impact on innovation, competitiveness and customer value if they are directed towards sharing across the business a deep understanding of customers, competitors and the changing market environment. This will strengthen an organization’s customer culture which in turn will drive future growth and profitability.
How would you rate your level of cross-functional collaboration? To what degree are you using the new social media tools for internal collaboration? Why not benchmark your level of collaboration and take action to strengthen it?
If you want to build this capability in your organization check out our MarketCulture Academy.