Influences of the digital economy

This month we’ve been contemplating leaders and leadership. It’s one thing to talk about content – but what about context and the effects of technology on leadership and creativity? It’s likely no surprise that we look for ways to shift how we manage because of the pervasive influence and power of the evolving digital economy of which social media is a part.

For decades pundits have debated the merits of modifying the “control and command” model of management. And we actually may be closer to having to modify that model. Why? Because we are witnessing one of the greatest shifts in how people use technology to communicate with each other, how goods and services are marketed and the accompanying need for greater collaboration and “co-creation”. The belief is that digital economies boost productivity, global competitiveness and social well-being.

This is a remarkable shift. It directly targets accepted management and leadership styles and practices, work structures and business relationships. The digital economy encourages – no, demands – the release of creativity and innovation to increase connectivity, build dynamic teams and to focus results.

In an interesting article on Social Architecture (a manifesto), Luc Galoppin, COO at MedeMerkers, we get a pretty clear glimpse of the possible depth of change anticipated due to social media and the digital economy. Galoppin says that:

“Successful organizations are those who are aware of that shift and who tap into the new literacy of collaboration that social media has brought us. The result is a new balance between hierarchy and community that is called social architecture.”

Galoppin’s article attempts to address the “so what” factor. He lays out what he thinks is involved at an operational level: who’s affected, what are the benefits and what scares us about the change associated with social media and the digital economy. Reactions range from resistance and annoyance to excitement.

As always, it takes courage to experiment with new opportunities especially in terms of how we manage and compensate people, and leverage our resources and relationships. How well we collaborate with partners, clients and stakeholders, and how we use technology to help support that collaboration (as we navigate through massive information on the internet) will have a direct impact on our success and sustainability.  And let’s face it – those who have the shinniest toys don’t always win – if they don’t know how to use them!

Social media by its own virtues transforms communications and marketing and our ability to “link in” and interact at work and in our personal lives. We may not be able to immediately attribute some of the shifts at work to social media or the digital economy. But observe the early adapters in an organisation who explore and use different approaches to get results – up and down the line and in between the lines. As Mr. Galoppin puts it:

“Collaboration is the new literacy. But it requires managers to replace systems of control with platforms of trust. The internet is the first medium to honor multiple intelligences. For instance, let’s have a look at literacy. In our narrow view of the world literacy involves only text, but there is also image and screen literacy.”

Managers can no longer be passive observers conducting people as if they were expendable widgets. Plainly, social media is specifically affecting the core of our business:  ”…the streams remain the same, but the focus needs a radical change”.

You’re likely saying:  ”As if constant corporate change isn’t difficult enough! Now we need ‘radical’ change!” One has to wonder though, how this will actually play out in our larger institutions like governments and the highly regulated financial sector – where any change is tricky.

Let’s be real – across-the-board unprecedented change of this nature is challenging if it’s not recognised, embraced with enthusiasm and embedded in how we do things.  As always the question: What’s the ROI on this:  improved quality of life and bottom lines – and is there value for clients, partners, and tax payers? Well, some countries have a digital economy strategy while others also have departments with ministers overseeing the activities.

Even as we’ve read about the impact of the social media and the digital economy, some of us still resist. And yet a good number of us are thinking: it’s a no brainer! Social media and technology have been part of the experience for years, period. These folks take it for granted and likely don’t even see the shift as “change” – evolution maybe – but not change.

Yes, the times are a-changin’ and we’re very curious to hear from you about how you think the Galoppin’s manifesto on social architecture could affect the way you work and the way your organisation does business.