If we want to reach some "Management 2.0" as a new level, we have to understand this and abandon money as the top line for steering and (re-)learn to steer by as well as for direct added value.
I really don't claim this to be new findings - but I state this as a root, a key finding that bears a big potential for management evolution. So I take this chance to recall it to you once again.
A typical business is focused on money, aims for profit measured in money, and hence, is steered by money. A typical Web 2.0 ECO-system, on the contrary, isn't. Instead, it is focused on solving some kind of problem, aims for direct added value for the participants and hence is steered by direct added value, no money included.
Take a typical group site, like the MIX, that might show their interest: There is a community which gives hints or discusses problems, participants share a common passion or mission. “Mixers“ gain value directly by exchanging information about management techniques, and by their own contributions they may gain attention and can experience self-efficacy (which is a strong motivator). Moreover every participant is interested in the development of management, and thus we share a passion/a mission.
Just think about why I have posted this, or why you've read it, and how Mr. Hamilton is “steering“. No money included.
This strongly differs from a typical company. Simplified: Some products are produced for customers, for money. There I work for money. Steering is done by the management by funding (money) and, of course, aims for profit. Everything is steered by money.
This doesn’t mean you can't make money by Web 2.0-rules (look at Google), but it means you aren't steering the 2.0-part by money. “Google’s mission is to organize the world‘s information and make it universally accessible and useful.“
(Google) And it seems they have understood not to steer by money: They give away big technologies for free (i.e. Android, but there is far more). They bring new information-services to the world (i.e. maps, news), thereby adding direct value to their participants. Since it’s free of charge and adds direct value to people's life, they become participants and start adding value to Google (for instance information at google-earth). But of course, you pay for your ads.
Not only if you want to start a Web 2.0 ECO-system, even if you buy a well functioning one you have to be careful not to steer by money:
Oracle bought SUN. Thereby ORACLE became owner of the OpenOffice-project. After a while some of the project-participants made their own new libre-office project. Since everything is open-source, ORACLE had no means of stopping them. I guess they started steering by money. By the way, they made a radical change and are transferring the OpenOffice development to a free foundation.
In contrast to the more general statements above, some hopefully helpful hints from my observations throughout the software-scene:
- Remember, if you want to steer: you have to contribute by direct added value (e. g. IBM, SAP,… they contribute by manpower and code in several open projects, thereby influencing the direction).
- Remember, if you want to steer: top contributors are “managers“, treat them that way (you need not, but may pay some of them some companies do)
- Focus on adding more direct value to more participants and make use easy. Ask yourself: Is this useful, easy to use? Could this be useful for somebody else? Could somebody else contribute. If possible, improve and expand.
- If you have to make money: You have to clearly separate 2.0-steered parts form money-steered parts.
- If you need to take money from your participants: Take as little as possible and only if they are commited or entangled. If you have a free offer with a commercial extent: Keep the free offer really attractive and useful without the commercial side.
Without that you won't build a strong community. If it’s possible, have a business-model which combines 2.0 money-free markets with money-driven markets (Two widely used schemes: free content & advertising, free-software system & commercial support-services)
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