The content of this text is subject to continuous improvement and is updated every 6 months or so. The next content refreshment is scheduled for late 1999.
"Unorganization: The Implementation Toolkit" contains the following sections:
Section A- Introduction
A description of the unorganized world
The economic reasoning behind firms
Section B- The Unorganization Practices
Teleworking
Mobile Working
Internet Email Alerts
Corporate Email
Vehicle Positioning
Job Dispatch
Point Of Sale
Remote Monitoring
Summary
Outsourcing
Partnering
Types of cooperation
Attracting business partners
Honesty in business partner relations
Partnering arrangements
Customer Service
Introduction
Definitions
Characteristics of excellent customer service
Reliability is heavenly
Why customer service problems exist (The 3 I's)
Care enough to care
The dependency criteria
Mechanisms for avoiding customer service
Modes of customer service
opporTUNEitizing
Customer Loyalty Schemes
Customer Service Charters
The ultimate stimulus for excellent customer service
Summary
Bibliography
Knowledge Management
Section C- The Enabling Technologies
The end of technophobia
Position Location- The People Pollers
Electronic agents
The Internet
Dynamic authoring
Electronic banking
Implications for organizations
Downstructuring case studies
Summary
Feedback
Biography
Section A- Introduction
The way business is conducted in the 21st century will be very different to that of the 20th century. The same end of commerce will be pursued in very different ways. Instead of all work activities being carried out in an integrated manner and all employees going to offices and factories, work will be much more flexible and dynamic and distributed. The emphasis will be on outcomes and results, not location and membership. People will work from wherever they are- it might be at home, an office or on the move. Companies will focus on their core business and outsource non-strategic tasks. They will simultaneously deploy their expertise in as many ways as possible by forming business partnerships with external, independent companies. Information and knowledge will drive the company and act as its lifeblood, customer service will be the key outcome. Business will be about deploying knowledge and sharing information in a way that meets customer requirements. The very communication that goes on between internal and external stakeholders in the business will be the structure of the company.
"Unorganization: The Implementation Toolkit" is aimed at managers who are looking to change their organized company to align it more closely with todays unorganized global world environment. By implementing these tools, managers can unorganize their companies and thereby maximize the amount of business that thee do whilst minimizing the amount of busyness. So why did we ever end up with organizations as we know them today and why is this new way of working and organizing now possible?
The economic reasoning behind firms
To find out why formal integrated organizations exist at all, it is necessary to delve into just a little economic theory. Basically, when you produce something, you can use a firm or a market to do it. You can carry out the economic activity yourself or get someone else to do it. A market is an open dynamic external mechanism for carrying out economic activity. A firm is a formal stable internal mechanism for doing business.
Firms exist and employ people when economic activities are carried out using the firm and not the market. If markets were used all of the time, wed all be self-employed. So why use firms and not markets to produce? Because the costs of using the market differ from those costs incurred using the firm to carry out exactly the same transaction. In fact the costs of using the firm must be lower than those incurred using the market. Otherwise we would choose to organize that economic activity using the market because it would be cheaper.
"To understand why, consider that all organizations must choose between making the goods or services they need internally, or buying them through market transactions with external suppliers. General Motors, for example, must decide whether to make tires or buy them from a tire manufacturer... market transactions often require higher coordination costs than internal coordination within the firm. For example, to buy something in a market, you may need to compare a number of potential suppliers, negotiate contracts, and perform formal accounting for the money that changes hands. But a market purchase has the advantage of allowing the buyer to benefit from the suppliers economies of scales [because they make a lot of tires for other firms as well] and to choose the best product currently available as needs change." (BRADLEY ET AL, 1993).
It was the economist COASE who defined why and when firms exist. He worked out that the costs of using the market arise from the necessity of finding out what the relevant prices are. Other market costs arise from negotiating and concluding a separate contract for each transaction that takes place in a market. These costs can be reduced by using a firm because managers are able to negotiate one longer-term contract rather than a series of market contracts.
A "firm will tend to expand until the costs of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction by means of an exchange in the open market or the costs of organizing another firm.". Production is viewed as a set of activities, for example, the production of pins involves drawing metal into thin wire, then cutting and pointing the metal. Each of these activities can be carried out using either the market or within the firm. Hence, Coase defines the firm as a means of co-ordinating production within the firm without using external markets. (COASE, 1937).
Basically whereas in the organized world the cheapest and preferred way to carry out business was within the firm, in the unorganized world, the costs of organizing transactions using the market has fallen. The invention and availability of new enabling technologies such as the Internet and electronic agents (personal electronic programmable servants) are reducing the costs of using the market. It is now easier and cheaper for individuals to put out a bid, find out information and negotiate. This is the economic rationale behind unorganization. It is also the reason why individuals can thrive in the unorganized world, without necessarily being a member of an institution such as a company. Technologies such as electronic agents are also taking over from individuals much of the administrative and non-value adding burden carried in hierarchies by organizational infrastructure, facilitating unorganization.
This book will now continue by discussing the unorganization practices of teleworking, mobile working, outsourcing, partnering, knowledge management and customer service that companies can implement to make their company more flexible and dynamic and attractive to people to work with. This book will then continue with an explanation of the technologies that will enable these practices to be successfully implemented- the Internet, electronic agents, mobile communications and satellite mobile communications and so on. It is the very existence of these technologies that make these practices possible- the underlying technologies can be deployed to enable novel work practices and business applications.
Section B- The Unorganization Practices
Teleworking
We will now explore the philosophical and practical implications of teleworking, defined as working from home, as opposed to mobile working, which also involves working from somewhere other than the traditional office. Whereas teleworking is working from where you live, mobile working is working from anywhere you are- be it fixed or mobile locations. We have moved from the old orderly organized world to a new global, diverse unorganized world. Because the world has changed, so too has the nature and form of work. We need to find ways of increasing the amount of business done in organizational contexts and reducing the amount of busyness. Navigating ourselves to the office is a transaction cost incurred just to get ourselves in a position to transact and do business. Teleworking recognizes the wastefulness of such outmoded systems of work and provides a viable alternative. It saves time and energy and reduces the stress from, for example, congestion. As such, work is increasingly changing from static and office-centric to dynamic and home-centric.
Office-based employees do get access to the full resources they need to carry out their job. These resources may not be readily available for teleworkers. These work tools encompass a photocopier, fax machine, stationary, overhead projectors, conference and meeting facilities, printers, information technology and secretarial support. However, many of these services and devices are available in portable or inexpensive multiple formats, for example printers, scanners and fax machines in one unit aimed at the small office, home office (SOHO) market. The benefits of teleworking need to be offset against the cost of providing the home technology- laptop or desktop PCs, printers, faxes, mobile or fixed phone lines. For the first time, all of the tools and enabling technologies necessary to facilitate effective teleworking are both effective and cost-effective.
Teleworking is facilitated by the recent rapid advances in the power of enabling technologies (described at the end of this book) coupled with a significant reduction in their prices. These technologies include email, Personal Computers, high speed modems and so on. Remote intranet access using a simple remote password or other security feature is perfectly viable. Technologies are widely available that enable us to work from wherever we are. A persons availability and presence are no longer limited to geographic proximity, but can be conferred electronically using communication technology tools. With a personal telephone number, people are available at the end of their mobile phone to customers or colleagues calling the personal telephone number at any time. A personal telephone number is re-routable to any other telephone number anywhere at anytime- it can be routed to home OR office or any other phone, without callers knowing my current location (or particularly caring).
These technologies mean that the generation and communication of work content is location independent. It is not dependent upon any particular physical, geographical environment. The simple fact is that not everyone works best in the same environment, some people work better in the morning, some late at night, some work better in supervised environments, some create better autonomously. People should be able to work wherever they can best produce their agreed output. Employees should not be expected in a certain place day in, day out when location does not affect the quality of output. Teleworking considers and meets this requirement for diversity.
In this global world, more and more work involves customers and colleagues located overseas, who are often in different time zones. As such, the requirement to be in an office between 9 to 5 is arbitrary when my 9 to 5 differs from that of my business associates. Working from home allows people to fuse business and pleasure, making and taking calls when and where it is convenient for all parties.
These days, physical office buildings are expensive, inefficient resources. Companies incur high fixed costs to maintain buildings and yet they are only occupied for part of the day. Even during working days, many people are out of the office but simultaneously office-based departments such as customer care are overcrowded. Teleworking reduces the fixed costs of doing business. Organizations have a huge investment in office resources- they pay a lot of money for resources that are under-utilized. I am always skeptical when I read about some company spending a few tens of millions of dollars on new flagship premises. There are of course those who think that buildings say a lot about the company and they may be right: bloated companies require bloated and stuffed premises. As a former director of Saatchi & Saatchi, the advertising agency rightly put it: "There are usually three telltale signs a company has hit bottom: it takes on a lease in a new building that it names after itself, it signs all board directors to long-term contracts, and it buys a corporate jet." (GOLMAN, 1997).
Offices will not be abolished as teleworking becomes more widespread- instead we will deploy those spaces more dynamically and intensively. In the age of teleworking, offices will be much more as a social meeting place for collaborating interactively about ideas and projects, getting feedback and taking advice, discussing the ideas generated and written up at home. As one teleworker reports: "I often used to feel guilty just sitting back in the office and thinking about ideas, and felt the need to look busy all the time, now I don't have to worry about how I get the job done, just as long as I do!". Many people find that their productivity is higher at home because there are fewer distractions such as ringing telephones and people entering and leaving the office.
Teleworking is providing popular with employees of both sexes. But it is often enthusiastically embraced by women in particular. As one female teleworker reflected: "Women are still expected to undertake most of the tasks such as cleaning and cooking related to the household, and look good. But these days I can work in my track suit if I feel like it and I don't have to put on lots of make-up if I am spending the day at home and writing a report and talking to colleagues and customers on the phone. I certainly would not want to have videoconferencing facilities from my home!".
The opportunity to socialize in offices is often claimed as a very important reason why people join a company and go to work. Work is a change of scene from home, with colleagues to socialize and make friends with. My own impression is that any advantage of contact with other people is outweighed by the territorial protection that people exercise over their desk and just the henpecking and politicking and such like that makes the office environment uncomfortable. Teleworking gives people greater choice and control over when and how much socializing they engage in when working.
There are however also some weaknesses and challenges with teleworking that need to be recognized and minimized. Pure teleworking, in which the teleworker works solely from home, can lead to that person feeling isolated, losing their sense of belonging and feeling "out of the loop". Even if there is an effective organizational communication system in which everyone inside and outside of the traditional company office is informed of the latest developments, much of the informal information sharing that provides context and perspective is not included in email, fax and even telephone conversations. Even when colleagues collaborating across distances know and trust each other, they rarely communicate with the same depth and width as they would in face-to-face communication. As such, working from home should always be coupled with deliberate and regular face-to-face meetings between the teleworkers and their other colleagues, in an office or other shared space.
Not all forms of work and types of people are equally suited or inclined to telework. Environments in which teleworking is most suited and appropriate include stand-alone work such as writing reports and preparing proposals and presentations. For example, a company may have a core business and several people spread around the globe developing business in new areas. Because the areas of business share little overlap, those people outside the core business are likely to have more in common with and a need to collaborate more closely with people carrying out the same or similar tasks overseas. As such, there is little requirement to be sitting next to someone in the core business team and that work can be carried out from home.
On the other hand, prison workers cannot yet work from home- although with the wider use of electronic tagging- they could in the future monitor and apprehend offenders who break curfews from their home. Manufacturing work would be more difficult to carry out using a telework system. In fact, before the creation of factories that bought production activity into a single firm, a so called "piecework" system was in place in which people produced a certain component at their home and these separately produced were then integrated into a whole. As we have seen, factories were then set up because of the transaction costs from negotiating prices for the components, arranging for integration of the parts, correcting errors in the production specification that arose from ineffectively communicated or executed requirements and so on. However, these days, the very technologies that facilitate teleworking are also reducing these transaction costs. As such, whilst we are certain to see an increased incidence of teleworking in knowledge work, we may also see more outsourcing of the production of manufacturing components.
Teleworking does require a change in the way remote staff are managed. Clearly, direct supervision and observation of work output and behavior is thankfully no longer possible in a teleworking environment. Managers who supervise, monitor and enforce will thankfully be replaced by mentors- who advise, lead by example, motivate and support. Direct supervision will be replaced by mutually agreed performance targets and goals (which may include rewards for turning up at the office) along with regular communication about the extent to which those targets are being met, advice given and so on. The focus will be on results achieved rather than mere presence in an office.
As we have seen then, teleworking is taking off because it is beneficial to both the employer and the employee- it helps improve productivity, reduce office costs, attract and retain the best staff, encourage an entrepreneurial culture and teaches employees how to deploy the technologies effectively. Teleworking rightly puts the focus on business and not busyness!
Mobile Working
Teleworkers tend to work from home- and may replicate the desk and computer infrastructure that they would have in an office. But there is another form of working away from the office- mobile working. This involves using mobile technologies such as mobile phones and laptop computers to work from wherever you are- be that on the train, in a hotel, overseas or wherever. People have been working at home for centuries, but mobile working has only really become possible over the last few years.
The computing and communications technologies have evolved to the stage where the battery life, size and weight and price of the equipment needed for mobile working is good enough for mobile working to be a viable option. There are still some limitations with mobile technologies- laptop computers do have short battery lives and mobile data communication speeds are very slow compared with the fixed telephone networks that teleworkers and office workers routinely use. (Mobile data speeds are typically only a quarter of the speed of fixed data communications). However, these technology constraints have been falling, and will continue to do so.
At any one time during the working day, about half of the workforce is likely to be away from their desks- be that because of meetings, lunch, vacation, out-of-the-office visits or whatever. This means that there is a requirement for people who are in the office to keep in contact with people who are away from their desks, and people who are out of the office to communicate with their office and access the information that is being sent to their office. Some jobs involve routine mobile activity- field sales and service management are good examples- everyone from couriers to lorry drivers to merchandising representatives to taxi drivers to bus conductors to cabin service staff are routinely away from a fixed environment, and would therefore be likely to benefit from mobile working.
Mobile working requires different attributes to teleworking or office working. Mobile workers need to have all the information that they require to do their job locally where the customer is. This means that the mobile worker cannot afford to be disorganized- they need to have some idea of what the job is, who the customer is and what the customer wants in advance of arrival at the remote location. Hence, the key to mobile working is making sure that the information flows between people- wherever they may be- so that the right person is in the right place with the right skills to do the job right. Because of the narrow bandwidth of mobile communications data transfer, it is important that mobile workers have a lot of the information they need with them locally- in their head, customer and product information stored on laptop computers, spare parts in their vehicle and so on. The best way to configure a mobile application is for the unchanging data such as product specifications to be stored locally with the mobile worker (on say CD-ROMs), whilst the changing information, such as job status, is communicated using mobile data communications.
Mobile workers also need to be resilient- in addition to the constraints of the mobile technologies themselves, the mobile working environment is likely to be much less convivial and convenient for work than an office or home environment. Working in a mobile place- such as a moving, vibrating, noisy train- or in a forest or with a laptop set up on your lap- is a more difficult and less comfortable working environment. Mobile workers therefore have to be able to transcend that environment and get the job done anyway.
The ideal situation is that the nature and form of work changes little when the work environment does- that is to say, the person can get straight down to productive business wherever they may be. Unfortunately, different modem connectors and so on hinder this smooth changeover in working environments. As such, mobile working requires people who have at least some technical proficiency, because the support staff such as Information Technology (IT) staff that are available in offices are not readily available to physically configure equipment and so on whilst employees are on the road.
Let us look at how just one technology, the Short Message Service (SMS) that is built into mobile phone standards such as the Global System for Mobile (GSM), can be used to exchange information in both directions between mobile workers and their office or other mobile staff. This non-voice mobile service alone facilitates a large number of business applications. (SMS is one of the unorganization author Simon Buckinghams other lifestreams. See his home page http://www.mobilesms.com for further details).
Internet Email Alerts
Typically, when an Internet email user gets a new email in their mailbox, they do not get notified of this fact. They have to dial in speculatively and periodically to find out whether they have received any new emails since they last checked their mailbox contents. However, by linking Internet email with the Short Message Service, email users can be notified whenever a new email is received. This is the mobile equivalent of todays desktop PCs with sound cards that play a tune or display a message on the screen to inform office workers when a new email arrives.
The Internet email alert is provided in the form of a short message that typically details the sender of the email along with the subject field and first few words of the email message. Most Internet email solutions incorporate filtering, such that users are only notified of certain messages with user-defined keywords in the subject field or from certain senders. Users could find it expensive or inconvenient to be alerted about every email they receive (including unsolicited "spam" emails), which would reduce the perceived value of the service. The user can then decide whether to dial in immediately and download that email or collect it later.
Once a user has been notified by the Short Message Service about a new Internet email message, the wireless email platform then typically allows a range of methods for accessing the entire email message. Access methods include using the PSTN (Public Switched Telephone Network: a fixed, wire-line telephone network) or GSM Data, downloading the entire message to a fax machine, viewing it on an Internet page or receiving more of the email in the form of a series of concatenated short messages.
Corporate Email
The Short Message Service can be used to extend the use of corporate email systems beyond an employees desk and office PC. With about half of all employees typically away from their desks at any one time, it is important to be kept in touch and be able to keep in touch with the office email systems at all times. These corporate email systems run on Local Area computer Networks (LAN) and include Microsoft Mail, Microsoft Exchange, Lotus Notes and Lotus cc:Mail. Corporate email solutions based on the Short Message Service are typically two-way gateways that work by adding a mobile software module to both individual email client software on the LAN and to the corporate email server software.
The Short Message Service allows mobile users to be notified about new corporate email messages and given information such as the sender and subject. Typically, but depending on the specific application software being used, the software add-on to the corporate email software lets users located in an office send a short message from their existing email software to colleagues who are away from their desks. Mobile employees can also reply to that email by sending a short message from their mobile phone keypad or connected mobile terminal. The reply is routed via the Short Message Service Center to the corporate LAN email server. It has then arrived back in the corporate environment. A software add-on to the corporate LAN email server then typically correlates the inbound and outbound messages and routes the reply directly back to the specific email user on the corporate LAN.
Vehicle Positioning
This application integrates satellite positioning systems that tell people where they are, with the Short Message Service which lets people tell others where they are. The Global Positioning System (GPS) is a free-to-use global network of 24 satellites run by the USA Department of Defense. Anyone with a Global Positioning System (GPS) receiver can receive their satellite position and thereby find out where they are.
The Short Message Service is ideal for sending Global Positioning System (GPS) position information such as longitude, latitude and bearer. This Global Positioning System (GPS) information is typically about 60 characters in length, leaving room for other information such as the vehicle registration details, average speed from the tachometer and so on to be transmitted as part of the same short message. As such, the information needed to run this application fits well within the 160 GSM Short Message Service characters. Additionally, because the Short Message Service uses the GSM networks signaling path, location messages can be transmitted simultaneously with voice calls. As such, vehicle positioning can run in the background, transparent to the drivers other activities. It would be an onerous burden if the vehicle driver had to regularly communicate this position information by voice. As such vehicle positioning is an ideal Short Message Service application, demonstrating that voice is not always the most efficient medium for communication.
The Short Message Service has proven itself to be the preferred means of communicating vehicle positioning information. Previously, packet-radio type networks were used such as Ardis/ RAM Mobile Data. Because these networks are limited in their geographical coverage, stolen vehicle recovery became a "race against time", with recovery agencies such as the police seeking to apprehend the vehicle before it reached an area not covered by the communications network, and thereby disappeared out of coverage. The increasingly global coverage of GSM and the Short Message Service has reduced this problem.
Position updates can typically be automated at any update frequency required, depending on the urgency of the application. For example, emergency services applications may need to know the location of emergency vehicles every five minutes, whereas long distance haulage companies may only need to find out lorry positions every hour. Typically mobile network operators find that because the position updates are automatically generated, vehicle positioning applications are amongst the leading generators of short messages.
Typically the position information is sent using the Short Message Service back to an office or monitoring station. This host typically has a PC that is running mapping software along with a mobile phone or other communications device such as X.25 connected to it to receive the incoming position updates. Every time a new position update comes in, an icon depicting that vehicle is automatically updated on the map. Visually, the fleet operator has a good overview as to where each vehicle is. The mapping software can be anything from off-the-shelf packages such as Microsoft Autoroute to customized and highly detailed maps.
This position information can be used for several applications:
"Smart automobiles". Increasingly more cars will roll off the production line with built-in GSM communications. Rather than some mobile phone users simply having a hands-free car kit fitted into their vehicle on an ad-hoc basis, automobiles will routinely come with pre-planned space and support for mobile communications use. As cars lose their mobility to traffic congestion, they will simultaneously remain "automobiles" through integrated mobile communications. The implementation of such automotive communications will be phased:
Phase 1: From mid-1998 onwards, integration between GSM terminals and the vehicle audio system. This means that, for example, when incoming mobile calls are received, the radio volume is automatically muted and the speakers are used to voice the incoming call.
Phase 2: From mid-1999, GSM terminals will interface with the on-board automotive electronics such as the cars door locks, engine-management system, instrument panel and headlights. There is an information bus that runs around a vehicle. The GSM terminal will connect to the information bus via the engine management sub-system. This will allow several applications:
Remote vehicle diagnostics such that the Short Message Service is used to proactively alert the car dealer or manufacturer when potential problems arise such as engine temperatures are high, brake pads are worn down or oil flow is slowing. Any such problems will be communicated to the manufacturer whose systems will diagnose the problem and transmit a fix back to the car- and every other affected vehicle. Real-time performance statistics will be gathered and sent to the car companys product development and manufacturing departments.
Not only that, but organizations such as roadside assistance companies will be able to "dial into" the vehicle and find out what is wrong with it- ensuring that the breakdown vehicle has the required parts on board to fix the problem when it arrives to assist.
Once corporate customers know where their vehicle fleet is, they can use this information to deploy the nearest available sales and service personnel to meet customer requests as they come into a call center or sales office. Because the location of the nearest suitable personnel is known, this simultaneously improves customer responsiveness whilst reducing the cost of deploying company resources. Hence, vehicle management applications allow companies to manage and deploy their fleet of vehicles more effectively.
As well as ongoing fleet management, vehicle positioning applications can be used for ad-hoc stolen vehicle tracking. Short Message Service use is then only activated when a vehicle is reported stolen so that the police can attempt to recover it. Such applications sometimes use so called "ring fencing": this means that tracking is initiated as soon as a vehicle leaves a certain pre-defined area. For example, if heavy earthmoving equipment is removed from a construction site, tracking is activated.
As such, linking GPS with SMS facilitates a wide range of different applications which will become increasingly widespread and commonplace in the twenty-first century.
Job Dispatch
At first glance, 160 characters may not seem very long, but it is in fact sufficient length for communicating most delivery addresses such as those needed for a sales, service or some other job dispatch application.
The Short Message Service is used to assign and communicate new jobs from office-based staff to mobile field staff. Customers typically telephone a call center whose staff take the call and categorize it. Those calls requiring a visit by field sales or service representative can then be escalated to those mobile workers using the Short Message Service. Job dispatch applications can optionally be combined with vehicle positioning applications- such that the nearest available suitable personnel can be deployed serve a customer.
The Short Message Service can be used not only to send the job out, but also as a means for the service engineer or sales person to send in a short status message such as "Job 1234 complete, on my way to 1235". This helps to keep the office informed of progress towards meeting the customers requirement.
Some job dispatch applications begin with separate SMS software packages, but the ideal situation is integration between call center packages such as Computer Integrated Telephony (CTI) software and the Short Message Service. In that way, queries can be taken and logged in a standard way, and then mobilized when necessary.
Point Of Sale
The Short Message Service can be used in a retail environment for credit card authorization. It is particularly convenient to use mobile technology when making sales from, for example, carts in the middle of isles at shopping malls or at sports stadiums, where it would be inconvenient to trail a PSTN wire. A mobile phone is connected to a Point Of Sale terminal such as a credit card swipe and keypad, and the credit card number is sent to a bank for authorization. The authorization code is then returned using the Short Message Service to the Point of Sale terminal.
Credit card information exchanged over the GSM mobile network is secure because as the section on security explains, all short messages are encrypted over the signaling channel and are therefore extremely difficult to intercept. For short bursts of transaction information such as credit card numbers, the Short Message Service is ideal.
Remote Monitoring
The Short Message Service can be used to manage machines in a remote monitoring environment. This provides people with a stream of valuable information from a remote location when an important event occurs that they need to know about. The information is automatically delivered electronically without having to constantly employ physical resources locally on the off chance that such an event occurs.
Examples of remote monitoring applications include:
Vending machines. Mobile phones can be interfaced with vending machines such that when an item of stock is running low, a short message can be sent directly to a service engineer who can then restock the machine. Rather than having to check the stock levels periodically just in case the machine stock is running low, stock levels are known exactly and vending machines can therefore be restocked just in time. Resources can thereby be deployed much more effectively.
Similarly, water and gas flow meters can be monitored, with a short message generated when the flow of gas or water through the pipes falls or rises. Such falls could signify a drought or leak. Rises in gas pressure could represent a safety hazard.
Remote meter reading is also possible using the Short Message Service, with remote interrogation of meters to ensure that the customer bills are set at the right level. Short messages can be sent to the meter requesting the current meter reading. A short message can then be returned stating the exact usage level. This eliminates the costly manual meter reading process which entails sending out human meter readers to check meters, requiring customers to write down and send in actual readings through the post for subsequent processing, dealing with disputed bills and so on.
Computer system fault information can also be sent out using the Short Message Service, such that when a computer or peripheral malfunctions, an engineer receives details such as "Mainframe 23b in Leeds: error code 164: disc drive corruption".
Summary
The Short Message Service is just one of the mobile data communications technologies that allows information to flow relatively freely between people wherever they are located. Such technologies are a powerful enabler of mobile working, and are currently radically under-deployed. They will however be used much more widely as the nature and form of work becomes more unorganized- dynamic, flexible and location-independent- in the 21st century.
Outsourcing
There is a high and increasing usage of outsourcing when doing business in the unorganized world as companies seek ways to transfer activities that have traditionally been carried out within the organization. Outsourcing arises anytime an organization "elects to utilize outside, independent workers to conduct work-related tasks." (NELSON-NESVIG). Outsourcing entails a transfer of responsibility for a certain business activity, which may in the case of an established business be accompanied by a transfer of assets (staff or equipment) between customer and supplier. (Source: SITA). A great many different functions and activities are being outsourced by different companies, including Information Technology (IT), payroll, property management, legal, catering, telecoms, distribution, transport, manufacturing and packaging services.
Different companies have different attitudes towards outsourcing- some organizations are reluctant to allow any activities to be carried out externally to their company. This guide is very much aimed at people with open minds who are willing to assess the potential of outsourcing some parts of their business.
The question of transaction costs and transaction benefits is of central importance to rational decision makers considering which activities could be outsourced. Transaction costs are the costs of getting in a position to do business- for example, transaction costs are incurred when negotiating to carry out business, before the business itself is actually undertaken. When carrying out the same task, different levels of transaction costs arise when using outsourcing compared with those levels of transaction costs incurred internally within the company.
Companies can often benefit from outsourcing because transaction costs can be reduced by transferring the burden of problem resolution closest to those people with the greatest level of the relevant expertise and other resources. Activities that are outsourced are often the core business of the supplier of outsourcing services but only peripheral to the customer using outsourcing. The costs of running that activity can be reduced by taking advantage of economies of scale- it is cheaper to share fixed infrastructure costs out across a large number of customers.
In the organized world, organizations were integrated and formally
carried out a lot of activities in the value chain themselves. In the unorganized world,
technologies have
reduced the transaction costs of using external companies to do business- and this has
facilitated practices such as outsourcing non-strategic tasks, leveraging core competences
widely by partnerships and alliances and so on. Hence, with increasing specialization in
core competences, the things the company excels in, the question of
how you identify them is a very important one. We need to focus on business and eliminate
the busyness that arises in organizational contexts.
Hamel and Prahlalad in their book "Competing for the Future" discuss core
competences and some tools for analyzing business activities. Michael Porter's value chain
analysis is also useful for systematically appraising all the activities a company is
currently undertaking and finding out where the costs are and where the profits are being
made. Once the company understands its value chain, it can then look for ways to reduce
the costs (outsourcing the task if it is not strategic) and enhance the revenues/ profits
(through partnering etc). Value chain analysis is looking at all the stages from
conception of product through to completion -e.g. development, manufacture, marketing,
distribution, sales. (Value Chain Analysis is discussed in Porters book
"Competitive Strategy").
When deciding which activities to outsource, companies should consider the following questions:
What is our core business?
A company needs to understand what its unique expertise is. It also needs to define which business activities it is unwilling to outsource. Companies often assess what to outsource by asking themselves what in their business activity is strategic- what cant be outsourced? They should retain in-house those activities that differentiate them from their competitors. For example, it may cost more for companies to carry out customer service in-house, but the benefits derived from having direct customer contact, in terms, for example, of getting feedback on customer satisfaction, can often more than compensate for this cost disadvantage. The decision about what the companys core business is simultaneously defines which business activities are not strategic and are therefore potential candidates for outsourcing.
The company can then try to locate companies to become outsourcing partners who can take over these non-strategic responsibilities. Even if a company identifies an activity that it could theoretically outsource, it may not be able to identify a suitable company to outsource those activities to. Even if it identifies a suitable company, it may not be able to agree mutually acceptable commercial terms with that potential, suitable outsourcing partner. As such, after deciding what to outsource, companies must also determine how to outsource those tasks and who to outsource them to. If you outsource non-strategic tasks to a reliable business partner, then there is likely to be no disadvantage compared to doing the job internally, along with the probable benefit of freeing your resources to focus on core business tasks. Outsourcing to an unreliable business partner can be an expensive failure that requires close managing and monitoring. Additionally, after the functions and responsibilities have been transferred, the bargaining relationship is transferred in favor of the outsourcing supplier, because it is difficult for the outsourcing customer to regain control of the outsourced activities. As such, outsourcing partners should be selected carefully and the outsourcing arrangements (usually a contract) carefully formatted. Companies implementing outsourcing should therefore:
Use multiple suppliers in order to reduce the dependence on and increase the accountability of the supplier of outsourcing services.
Appoint lead suppliers. Supplier management is time and labor intensive- especially when multiple suppliers are used. Some companies who use multiple suppliers at their different facilities appoint a different lead supplier in each facility, responsible for coordinating with the other suppliers. Those same lead suppliers are subcontractors at other facilities- this ensures the interdependence between suppliers that makes sure they cooperate and keeps the transaction cost burden of coordinating the different suppliers away from the customer. (SEE: HARVARD BUSINESS REVIEW, MAY-JUNE 1995).
Include performance targets for suppliers such as penalty clauses that set minimum service levels. Outsourcing customers need to incentivize excellent services by rewarding their consistent achievement, and punishing suppliers when it does not happen. The customer should also avoid being locked into the outsourcing supplier by keeping the period of the contract quite short, say, a couple of years, and building in escape clauses if things go wrong or take unexpected or unsatisfactory turns.
Ultimately, I feel that the best way to take advantage of the benefits of outsourcing whilst minimizing the potential downside and disadvantages is for the supplier and customer of outsourcing services to be BUSINESS PARTNERS. In this way, there is voluntary interdependence for achieving optimal results- both partners share the benefits and the costs. If both companies are sharing in the revenues generated from the outsourcing partnership, then clearly there is the incentive to keep the infrastructure delivering that service up and running. For example, if a company outsources some new channel development and the outsourcing partners revenues are directly related to its success, such as the number of new sales outlets gained and the quantity and quality of sales those outlets generate, then they are incentivized to develop as many sales as they can.
In summary, outsourcing is a key method of unorganizing traditionally integrated organizations. Outsourcing customers should insure they incentivize their suppliers by maintaining their independence and rewarding excellence. Outsourcing suppliers should focus on achieving excellence. Such outsourcing partnerships are then win-win and mutually beneficial.
Partnering
Business partnerships are an important means of doing business in the unorganized world. Instead of taking an integrated, organized approach and carrying out all aspects of a business in-house, companies are increasingly focusing on their so-called "core competences"- the things they excel at and are experts in. They are then outsourcing non-strategic tasks and simultaneously using business partnerships to leverage their expertise by deploying it as widely as possible and finding as many applications for it as they can imagine.
Business partnerships are being facilitated by new technologies such as the Internet and mobile communications that make it easier for companies to share information and communicate beyond the traditional formal office boundaries. These technologies have reduced the transaction costs (the costs of getting into a position to do business, before the business has actually begun). "Partnering involves companies recognizing that the fall in transaction costs means that they no longer have to be self-contained. It is now more cost-effective to concentrate on "core competencies" [the activities a company excels at which sets it apart and helps maintain its existence] and form "value networks" with organizations that can complement their strengths. This will require new skills to co-operate rather than fight with competitors." (TRAPP, 6OCT96).
Lets look at this issue of when companies co-operate and when they compete because complex inter-relationships between firms are often confusing given converging industries and global markets. The same companies compete here and simultaneously co-operate elsewhere or on some other issue. The key text that helped me to understand this issue was the book "Co-opetition" by NALEBUFF AND BRANDENBURGER. "Business is cooperation when it comes to creating [and expanding] a pie and competition when it comes to dividing it up." Hence we see a lot of partnering activity which is aimed at creating industry standards.
Business partnerships fulfill many of the social aspects of business in the unorganized world, acting as regular contacts and support systems. There are complimentary products and services for every companys offering and every company of every size needs to establish systematic dialogues with companies who have complimentary skills or mutual customers. Every company needs to set up a business partners program!
For example, if I manufacture laptop computers and you have some software that facilitates remote access for laptop users to office databases, then this software is likely to be of interest to a number of my laptop customers. By bundling your software with my hardware and perhaps a mobile phone subscription, I can add value to my customer by providing a complete, tailor-made solution rather than simply a piece of hardware. This facilitates sales to the mutual benefit of the hardware, software and mobile phone company. Win-win relationships are the name of the game. Leveraging complimentary skill sets for mutual gain is the order of the day!
Ideally, whenever a customer expresses a particular business requirement, you can always meet their need. You either fulfill it yourself in-house or are in a position to work with a business partner company that you have regular contact with and are confident about their ability to meet that customers requirement professionally. Satisfaction of what has now become a mutual customer in turn builds customer loyalty. Once you have got some sales, you can undertake some publicity by generating case studies in industry publications and take it from there.
Types of cooperation
I distinguish between four key levels of cooperation in the unorganized world:
Networking: This involves developing and using a list of contact people who can be called up when particular knowledge or skills are required. Your network is effectively means anyone youve ever met who you got a business card from or corresponded with or knew in school!
Suppliers: When a company supplies a standard product or service in a standard way on an occasional or ad-hoc basis. Supplier relations involve hands off cooperation. Companies could use other suppliers to meet their requirements- there is little interdependence between the companies as neither account for a significant proportion of each others business.
Business partnerships: People with whom you have formalized and regular contact and exchange information about the market you are competing in and customers. Business partnerships involve non-exclusive relationships set up without significant exchange of money between the business partners. Often non-contractual relationships based on mutual benefit and trust. Business partners may work with your direct competitors. After all, if I am a small Windows software house, I cant afford just to sell my Windows software to just one laptop manufacturer without significant financial inducement to do an exclusive deal (in which case they become a strategic alliance partner). To survive and thrive I need to target the whole industry. The key is to provide better responsiveness and support than competitors who are also partnering the same companies. In business partnerships, co-operation is essential.
Strategic Alliances: Exclusive relationships such that, for example, if one laptop manufacturer signs an alliance with one mobile phone network, one of their laptop competitors then signs up with one of their mobile phone competitors. Often involves significant investment of monetary funds by both parties to finance the research and development and marketing campaigns in an attempt to create industry standards. Alliances are longer-term relationships based on a contract between the parties that preclude and make it difficult to do business with direct competitors to the alliance parties. This is where competition comes into play: exclusive deals preclude business development initiatives with competitors who are not in the strategic alliance. Alliances require extra effort in managing because of the need to negotiate with both your own company and your alliance partners. It can be difficult to identify the right alliance partners and this changes as new competition emerges. Some companies hedge their bets on what will become the standard and join multiple alliances. For example, France Telecom joined both the Ico Global Communications and Globalstar consortia for satellite mobile phones. Alliances tend to be between large companies with equal but complimentary strengths. Business success is doable with business partnerships but without Strategic Alliances, hence not having alliances is not a showstopper.
Hence, business partnering is a sensible way of building contact and cooperation beyond simple networking and supplier communications, whilst avoiding the risks of signing an exclusive strategic alliance with any one company.
Attracting business partners
There are a few main ways to sign up business partners and get them to support your product or service, and turn it into a standard or market leader. You can offer business partners any one or combination of the following:
1. Free kit: Offer business partnerships fee access to your products or services so that they can trial and demonstrate them. For example, a computer company could give away prototypes of its new computers so that software developers have software ready to ship when the product does.
2. Support: Offer business partners lots of commercial and technical support to partners, which may benefit them even if the product or service is inferior to that of direct competitors.
3. Installed base: Offer business partners a user base so large that developing something to target that user base will maximize the likelihood of generating volume sales and revenue.
4. Best kit: Tell business partners that they are getting the opportunity to work with a company that leads in a particular core competence. For example, tell potential business partners that they have the opportunity to use the state-of-the-art innovative ideas or those that are the most advanced and reliable around. This is by far the hardest advantage to develop but once you have it its probably the easiest (certainly the cheapest) way to sign up business partners. (See KAWASAKI, 1992).
Take, for example, the case of Apple Computer. Their computers are acknowledged leaders in design and perhaps even user interface (intuitive icons etc.). But for their hardware to sell they needed lots of software applications that people could run on the proprietary Apple operating system. Hence they hired a couple of "evangelists" to target the software development community. Eventually a "compelling application" was developed which was attractive and exciting enough to potential computer buyers that they decided to purchase an Apple computer. In their case, the compelling applications were a spreadsheet for easily performing complex mathematical calculations and desktop publishing software that complemented, synergized and took full advantage of the underlying Apple platform friendliness. (See KAWASAKI, 1992).
Honesty in business partner relations
Whichever incentives you offer to attract business partners, in all cases, being honest makes economic sense. Say, for example, I introduce you to my customer. If you then turn around and take one of my competitors into meet my customer then clearly this is negative behavior and the business partnership is as good as over. Similarly if I share information about your customer prospects with your competitor then you are never going to trust me with information again let alone recommend me to your customers.
The fact that business partnerships are non-contractual and involve neither ownership nor control makes everyones behavior accountable, ultimately to the market. And I can share feedback with people in my network and other business partners about you, facilitating other contacts and opportunities if you are a good company or losing you business by advising people to steer clear of you if you are unprofessional. Whether they accept my advice depends in turn on their view of me! The medium is the market and the mechanism is business partnering facilitated by communications technologies.
Fundamentally, an open and fair style of management is needed when dealing with business partners. They are independent companies that you do not control and they often business partner with your competitors as well. Obviously if you present a business partner with a good opportunity to say share the space on your stand at an exhibition then you can expect and tell the business partner not to advertise your competitors or such like. (Not that they would if they are decent people with integrity). Honest and charismatic management is needed, dictatorial management styles will not succeed. "Managing strategic partnerships, coalitions, and alliances has forced managers to shift their thinking from the traditional task of controlling a hierarchy to managing a network." (BRADLEY ET AL, 1993). New technologies are the tools that facilitate business partnering even across national borders, but it is trust that sustains the business partnership.
Partnering arrangements
In the unorganized world, it is difficult to define how a business partnership will progress in advance, because new opportunities and potential business partners are emerging all the time. Business models never cease evolving, largely through actions and feedback from customers, partners and employees. It is therefore difficult to structure a business partnership agreement- if you try to encompass all opportunities in a contract then you end up with a complicated deal. If you sign a standard agreement, you preclude or make difficult collaboration on emergent novel transformational opportunities. It is difficult to make commitments to, for example, sell a minimum volume of product in advance. It is difficult to agree revenue shares before there are any revenues! The potential for mutual gain is intent enough- who knows in advance whether the business partnership will be a success or not?
As such, business partnerships these days can consist simply of a Letter of Intent- this is effectively a commitment to go forward and a commitment to commit resources in order to move forward. There may also be the need for a Non Disclosure Agreement if both business partners are not accountable for their reputation in the marketplace. If either party can widely communicate that the other is not a trustworthy or reliable business partner, then the threat of loss of reputation, coupled with personal honesty and integrity, should ensure that sensitive information is not disclosed. The rule is: do not disclose anything to anyone who you do not trust to keep the information private. If in doubt, do not disclose.
As soon as potential customers with a serious interest in using the services provided by the business partners are located, the focus should become working together to facilitate winning that business. After some time had been spent understanding each companys products, people and philosophy, the business partnerships should evolve into something that is mutually beneficial. There may in fact not even be any formal ongoing agreements between the business partners- not even a Letter Of Intent- instead, business is carried out on a case by case, customer by customer basis. It is more stressful dealing on a case-by-case basis than knowing in advance what the exact terms of the business would be for future customers. However, once a technical and commercial model has emerged and proven successful for other mutual customers, it becomes clearer to all business partners how future deals should be arranged, even if the exact costs are not known. Mutual customers mean that a working relationship had been established, along with some familiarity and a little trust.
The idea behind successful business partnerships is to ensure that all parties to the partnership are not left MATERIALLY ANY WORSE OFF BECAUSE OF HAVING BEEN IN THE PARTNERSHIP when the business partnership breaks up at a later date. At with all commercial activity, its success depends upon minimizing busyness and maximizing business. Business partners need to have sufficient knowledge to understand each others offering (usually acquired before commencement of the business partnership!) and a commitment to seek and win mutual customers.
Customer Service
Introduction
Everyone knows that excellent customer service is essential. However, static organizational structures tend to get in the way of achieving it. Too often, customer service is unresponsive or when it comes to non-routine requests and inquiries- plain inept. Anything other than routine, regular queries go unsatisfied. Tom Peters, the business guru, rightly championed excellent customer service in the 1980s and highlighted cases where employees were empowered to meet customer requests. However, the customer service revolution never occurred- the general standard of customer service remains sub-standard. In unorganized companies where the focus is on external outcomes rather than internal processes, customers really are king.
Definitions
Customer service arises whenever a purchaser and a seller interact. This interaction can be voluntary at the time of purchase or forced at times of breakdown or complaint.
Routine customer service is that type and level of service given in the normal course of events. An example of routine service is when a customer knows exactly what they wish to purchase and it is readily available from the supplier. In such cases, customer service is on the whole satisfactory- it is rarely memorable such that it induces positive feelings- but it is also rarely dissatisfactory.
Non-routine customer service arises when a customer's expectations cannot be met immediately or have not been met. Responding positively to such customers requires a customer service representative to improvise. They must find or create a suitable compromise or solution to appease and please that customer- and have the confidence and mandate to carry out the actions involved. Generally, dealing with non-routine requests is more difficult than routine requests.
Carrying out such non-routine tasks in a way that satisfies customers is not easily reconciled with the static procedures and hierarchy that are commonplace in organized business organizations. Employees are expected to follow the same procedures irrespective of the wishes or needs of different customers. As we will see in a later section, this is where opporTUNEitizing is used to make structure more dynamic.
Characteristics of excellent customer service
Excellent customer service should be the aim of all suppliers of products and services. It has the following characteristics:
Responsive. Excellent customer service is responsive. A timely response is important- the customer had a requirement when they contacted you and they are likely to have delayed expressing their need. If you delay responding they will solve their problem in some other way. You will have missed an opportunity to serve that customer and the next person they call will probably be one of your competitors.
Reliable. Excellent customer service is consistently responsive, with continuously high levels of customer service. The only surprises that customers find welcome and positive are those that improve the service they receive and exceed their expectations. Customers want excellent customer service and they want it every time.
Reliability is heavenly
"The modem has detected that the Point of Presence you have connected to is busy. Do you wish to try again?". I just dialed in to pick up my email and check unorgan.com and got this error message. When I finally did get connected, I could not connect to unorg. Unreliable suppliers such as Internet service and server providers really annoy me.
The same supplier within a couple of months quoted me two very different prices for the same job. I was quoted '119 for 250 business cards that a couple of months ago had cost '59.
Quality is about consistent reliability. I want good service and I want it every time. Quality requires both consistency and reliability. A good friend is a reliable and a consistent friend.
I actively advocate and practice shame and exit strategies from unreliable and unprofessional suppliers to encourage greater customer responsiveness. I try to tell other people when I get badly served using this Internet forum, and I stop using unreliable companies. After all, if they get away with offering bad customer service without financial loss, what incentive will they have to improve that service? If every consumer behaved in this way, the inefficient companies would soon be forced to improve or go out of business. The other way of ensuring accountability for customer service reliability is by specifying performance targets within the supply contract- such that I get rewarded with compensation and the supplier gets stung financially if their service falls below certain performance standards.
It is costly for employers to deal with queries, recalls, complaints and so on and the same is true for the consumer who is inconvenienced and frustrated by unreliability. Unreliability is not good for either party- buyer or seller- yet it persists in abundance.
On the other hand, companies that can deliver consistent reliability every time at the all time, such as Coca-Cola, will thrive well into the future, because they are just so rare. Reliability is heavenly.
Respectful. Informed, attentive, cheerful, polite and helpful customer service representatives should treat customers with respect.
Excellent customer service is therefore reliable, respectful and responsive.
Why customer service problems exist
Unreliable customer service persists because of the existence of a lack of incentives, a lack of information and a lack of independence.
Incentives. I suspect that a lack of adequate incentives is at the heart of the many of the problems people face when dealing with organizations- such as inadequate customer service.
Too often, the employees carrying out customer service do not care enough about the service they are providing. They are not rewarded for providing a high level of service. Poor service arises from a lack of accountability for results.
People seem to make an implicit or explicit bargain with themselves to cede independence in return for regular- if pretty fixed- incentives. Managers hold back from giving responsibilities that truly challenge people. As a result, employees compromise their ability and achievement in return for regular pay. Only by rewarding directly for effort- which turns out to be almost impossible within organizations- can we expect the individuals to be fully incentivized to perform to the highest of their abilities, serve customers excellently and so on.
Customer service staff should not see their task as to clear the lines as soon as possible and satisfice the customer. Instead, they should delight the customer, seeing the customer as a future revenue source and not a present cost.
The customer could be a window shopper with no intention of making any purchases. The costs of providing the service need to be weighed against the benefits. It is important to view the customer in terms of the value of purchases over time, and not assess them on the basis of that purchase alone. Repeat visitors soon become an asset rather than an expense.
In fact, service can be very profitable if you charge for it. For example, the aircraft engine division of General Electric makes half of its revenue and two-thirds of its profit from post-sales service. (FINANCIAL TIMES, 20JAN97). One day, thirty or more years ago, Coca-Cola fired all its sales people and the next day re-hired them as service personnel. It felt that it had a big enough installed base of customers to increase the amount of business these existing customers did, as well as go after new business.
Care enough to Care
Nobody really cares these days. Employees who rely on receiving their salary to eat find out that their manager has not signed off the time sheet they had to fill out. Somebody in the bank I used to use forgot to order the eurocheques I need to withdraw money to live on when I am overseas.
A couple of years ago, a nurse was able to gain access to the children which she murdered because the other staff reportedly were "lacking in energy and initiative". This is hardly any wonder when the sister on duty at another hospital said that her shift was one long struggle to secure the people and equipment needed to get the job done.
"A judge yesterday attacked the "paper-lust of bureaucrats" in the criminal justice system which had left a violent teenager free to murder a 72-year-old man. Mr. Justice Rougier said he was appalled that Darren Lawrence, 17, had been cautioned seven times but had not appeared before a court in the past two years despite a catalogue of violence and assaults. The judge said it was grotesque that 46 forms would have to be filled in before someone of Lawrence's age could be prosecuted for a violent offense... It is to be hoped those who exercise authority will eradicate this lamentable state of affairs and will agree with me that the safety of the public and the maintenance of law and order is more important than the proliferation of desk jobs and the consequential paperwork and will take appropriate action and swiftly." (DAILY TELEGRAPH, Bureaucrats 'left teenager free to kill pensioner', 18DEC96).
A cleaner once switched off a computer that was running an important process. She just saw the switch as a switch and had no empathy with the thousands of calls that could not be made by the network's customers. To ensure such an error never occurred again, my company merely introduced a series of checklists and sign-offs and other procedures.
Caring is about seeing not just bank account details, patients and computers but also the food that money buys, the person and family behind the illness and the work that is done with the computer. It is about putting yourself in someone else's shoes. It is about focusing on people and not procedures. More than anything, caring is not about introducing bureaucratic procedures when all you really need is someone who cares.
Care enough and you could discover the medical phenomenon known as "helper high" in which a sense of fulfillment makes the helper feel good about what they have done. Caring is a core competence which leads to improved customer responsiveness. If you care then it will surprise some people and astound the rest. Care enough to care. Care, please, think. Care.
Information. Too often, different people in the same department answer the same customer query in different ways. Too often, only one person can actually make the decision and solve the customer's problem. That's why you often have to ask to see the manager to get something done properly.
All staff should have the knowledge to solve the problem- or at least the knowledge to locate the person who has got the necessary knowledge for that particular problem. This may entail cross-training in which people with a certain functional or operational responsibility also have sufficient knowledge to accurately and confidently answer customer queries. Technology tools such as intranets allow general and specific information to be shared across organizations.
Independence. Too often, the quality of customer service is dependent upon the input and agreement of other employees. They may not be willing or available to respond in a timely way. Customer service staff are forced to rely on their managers providing the mandate and resources to serve customers, and these internal processes are often slow and static.
The person solving the customer's problem should have the mandate to serve customers as a priority- the customer comes first. They should be empowered to do what it takes to resolve the customer's query or complaint. External matters should be seen and felt to be of greater importance than internal matters- because without external customers there is no need for internal activity.
Independence, information and incentives are the three things that must be present for excellent customer service. Customer service staff should be enabled with information that allows them to quickly and accurately solve that customer's problem, empowered by independence and encouraged by incentives to do whatever it takes to resolve the customer's query or complaint.
Incentives without independence means the person serving the customer comes up against barriers and structures that prevent the necessary measures from being carried out. Independence without incentives means that excellent customer service is dependent upon the intrinsic motivation that person has to serve the customer. This varies too much between people and in the same people at different times to bring about the consistent reliability that is the cornerstone of excellent customer service. Incentives and independence without information means that the employee can do what it takes to serve the customer but does not know what is necessary. As such, excellent customer service requires independence, information and incentives simultaneously.
The dependency criteria
I have devised a "dependency criteria" to assess the need for and role of customer service in the unorganized world. The dependency criteria states that to achieve excellent customer service, all actions and policies from all people in groupings of any and every size, be they suppliers or purchasers, should be taken with a view to reduce dependency and the affects of dependency and encourage realization of voluntary independence. In terms of customer service desirability, the things marked "BAD" in the Dependency Grid below should be discouraged and eliminated, whilst the things marked "GOOD" should be facilitated and encouraged.
Forced dependence e.g. customer needs instructions from a vendor on how to use a product OR Customer has no other viable choices over where to make a purchase from BAD |
Voluntary dependence e.g. employee has the ways and means of meeting the customer's requirements closely but nevertheless unnecessarily involves other employees or falsely blames other employees for the customer not being served satisfactorily BAD |
Forced independence e.g. customer needing instructions from a vendor on how to use a product but not being able to get through BAD |
Voluntary independence e.g. employee has the ways and means of meeting the customer's requirements closely GOOD |
Forced interdependence e.g. employee has the ways and means of meeting the customer's requirements closely but procedures dictate that they must use or get permission from other employees to carry out customer requirements BAD |
Voluntary interdependence e.g. people partnering with others to closely meet customer requirements OR customer exercises a free choice and decides to rely on the customer service representative when buying something GOOD |
Mechanisms for avoiding customer service
The very requirement for customer service is a transaction cost- it is a by-product of a need or wish to transact. This means that customer service is derivative rather than fundamental. However, customers are increasingly automating the purchase of routine necessities and viewing shopping as a voluntary pleasurable leisure time activity. As such, customers expect friendly and responsive customer service.
When a customer wishes to transact, they should be making a positive voluntary choice- because they want to make that purchase from that place. There are many ways in which the requirement for and dependency on customer service- either at the time of purchase or the point of failure- can be avoided completely.
Prevention is better than correction: it is better to avoid suboptimal situations altogether than optimize them. For example, no queues at all is preferable to customer service attendants handing out drinks and entertaining waiting customers. Still, if that wait is unavoidable and prevention not possible, then optimization is better than nothing. If a problem bothers a customer and this problem recurs- such as insufficient customer order forms or pens to fill them in with- then it is not sufficient that when the customer asks for more pens they are passed across with a friendly smile and apology. Repeat offenders are never truly sorry, if they were, they would not keep re-offending.
The need for customer service can be minimized using the following mechanisms:
Par down and focus on essentials
Minimize the number of purchases you make- this minimizes the need for initial or subsequent interactions with customer service staff. The need for customer service is necessitated by possessions. To avoid requiring customer service, we should avoid the accumulation of non-essential possessions for the sake of conspicuous consumption and status signaling. (See Unorganization: The Lifestyle Handbook on unorgan.com for more information on what and what not to spend you money on).
Choose simple, high quality products and use professional services
When you have located a purchase that you consider to be necessary as well as nice, you should avoid unreliable equipment and inconsistent quality. Sourcing through lower priced but less reliable suppliers can be expensive "false economy" by requiring customer service and repairs, needing replacing sooner, causing non-productive time and so on.
The products and services themselves should be as simple to use as possible. This reduces the requirement to refer to and rely upon other people to work out how to use something. For example, a 50-page instruction manual should not be needed on how to use a particular mobile phone.
Brands (product or service identities such as trademarks) comprise an inner core and an outer core. The inner core is the product itself and the outer core is the branding and marketing of the inner core. Customer service is part of the outer core- you need a lot more of it if the inner core is of lower quality and vice versa. Consumers should be wary of purchasing products on the basis of glossy brochures and sales people's pitches alone. They should see the products working, try them out, ask existing owners, review independent research and so on.
It is also important that sales people do not make false promises to potential purchasers- these only create false expectations and lead to customer disappointment. It is far better to under-promise and over-deliver.
Things do break down because we do not unfortunately live in a perfectly unorganized world. Built-in obsolescence does exist and not every company has seven sigma quality accreditation.
Modes of customer service
When customer service has been avoided, its occurrence is either out of a positive choice or because it was unavoidable.
Customer service arises in different places in different ways:
Customer home electronic, supplier remote electronic e.g. customer accesses supplier's electronic commerce enabled Internet site |
Customer remote physical, supplier home physical e.g. customer visits supplier's office or outlet |
Customer home physical, supplier remote physical e.g. customer telephones supplier |
Customer home physical, supplier remote physical e.g. supplier visits customer's office or home |
Local face-to-face customer service such as when customers visit a physical shop (Customer remote physical, supplier home physical)
Friendly and personal customer service should be given in this scenario because the customer has made the effort to locate and visit the supplier's premises.
The premises should be well stocked and adequately staffed. This maximizes the likelihood that customers will leave the premises having been successfully and satisfactorily served from both a product and person point of view. In other words, the customer should have got the product they were looking for and been served it in a responsive, reliable and respectful manner.
Remote but human-to-human customer service such as when you telephone a supplier (Customer home physical, supplier remote physical)
This can be a frustrating and inefficient form of communication. It is difficult to get past the voice mail systems, get hold of the person that has the answers, get the answers from the person who has the answers and so on.
When a customer rings in, both sales and service inquiries involve some sort of call center taking the calls, logging them and filtering those inquiries which can be dealt with there and then from those which need to be escalated for further investigation. Call identity and routing allows the same people to take different types of calls.
First-time customers should ideally have to make no more than one menu choice before being connected to a live human operator. Regular users of electronic systems such as telephone banking should always have the option of connecting to a live operator at any stage of their call.
Supplier visits the customer's residence (Customer home physical, supplier remote physical)
These days, technology is making the provision of customer service in the customer's home easier to carry out, and therefore less costly. The supplier may need to go out to where the product or appliance is being used in order to service it, repair it, install it or whatever. The supplier's sales and service vehicles should be fitted with a location device (such as a Global Positioning System (GPS) receiver). These vehicles regularly send in location information about where they are currently located over a mobile data network to a sales and service center. Whenever a new position update comes in, the position of a little icon depicting that vehicle changes on electronic mapping software running at the host. Visually, the company has an overview of its entire fleet and can use this information to dispatch the closest available suitable personnel to a sales or service inquiry. This not only increases customer responsiveness, but also saves money by retaining customers and deploying resources more effectively.
Electronic forms rather than paper should be used to log, assign and complete fault reports. Of course, it is necessary but not sufficient to use such technology- all employees must also care about what they are doing and what level of service they are giving.
Person to computer customer service such as when you use electronic commerce and order, for instance, a book from Amazon.com (Customer home electronic, supplier home electronic).
In such cases, the customer does not actually speak to or otherwise communicate with any staff at the electronic commerce vendor. As such, it is always reassuring if the supplier acknowledges receipt of the order and keeps the customer informed at key stages in the customer service process. The customer then has information about the status of their order and progress with it. It is also reassuring to be given a customer reference number- something to confirm that the complaint or sale has been logged and is being processed. This assists both the organization and the customer in completing the transaction effectively.
It does not matter how "busy" you are- being responsive and acknowledging the receipt of communication from a customer should be your premier priority. If you cannot respond in full immediately, let the person know. There is nothing as rude and frustrating as not knowing whether communications have been received and more important acted upon. Automatic email responders that send out a brief message acknowledging receipt are a useful first step that is better than no response at all- but a personal tailored response is better.
opporTUNEitizing
Delivering excellent customer service is everyone's job- but rigid organizational structures tend to allocate specific responsibility for particular types of customer service requests to particular people in particular departments. This rigid allocation process increases the dependence on those particular people being available for the customer to be served excellently.
Removing static structures facilitates the communication necessary to know the situation and serve customers promptly and accurately. The elimination of job titles and functional responsibilities removes the territorial attitude that a particular customer or area is not my responsibility or concern. Employees should be knowledgeable, competent, empowered and able to make decisions and act upon them.
The unorganization theory advocates two main ways of removing static structures from organizations to align them more closely to today's global and competitive unorganized world. These techniques are called opporTUNEitizing and downstructuring. Whereas downstructuring is the practice of eliminating organizational structure, opporTUNEitizing is the practice of making such structures dynamic.
Knowledge workers spend the majority of their time and effort developing new product and service ideas to satisfy customers. For such knowledge work, downstructuring techniques such as eliminating job descriptions, teleworking, reducing systems and procedures are useful. Because idea creation is not related to time or place, downstructuring is a useful tool that facilitates location independent working.
Downstructuring is less applicable for time and mission critical tasks such as customer service. However, it is also necessary in physical industries to free employees to take responsibility for product quality and customer service and continuously improve systems and processes. This is where opporTUNEitizing comes in.
Excellent customer service starts with flexible and dynamic internal processes. opporTUNEitizing delivers this by allowing employees to meet their end objectives of personal learning and customer responsiveness by minimizing the means (static systems, procedures, structures) that hinder the achievement of such objectives. Too many procedures were set up merely with the intention of arbitrary control of "subordinates". These can no longer be carried out in the competitive unorganized world and are the first to be eliminated. The remaining facilitatory procedures should then be opporTUNEitized, such that they are followed during routine activity, but can be transcended when circumstances deviate from routine. This is opporTUNEitizing- having procedures that are followed in routine cases but also empowering individuals to use their initiative both to improve routine procedures and also to bypass any procedures to meet non-routine customer requests.
"opporTUNEitizing" is the technique that empowers more than one person to make accurate decisions and provide adequate customer service. Customer service staff spend the majority of their time carrying out routine tasks by following set practices. They need to create when they are solving non-routine customer requests and requirements. As such, because it combines optimal completion of routine tasks with optimal completion of non-routine tasks, opporTUNEitizing is the predominant tool used for delivering excellent customer service.
opporTUNEitizing techniques include cross-training so that an employee has a core skill and focus but can and does work on other tasks related to the production and distribution process. They work in other areas according to personal interest and customer need. In this way, neither customers nor employees are dependent upon the willingness of another person to provide excellent customer service.
Tune your internal processes to be in the opportune place to take full advantage of opportunities to serve customers.
Customer Loyalty Schemes
A UK-based chain of grocery stores (Tesco) pioneered the introduction of a loyalty program through which customers were given money off vouchers in direct proportion to the amount they spent in that store. Its main competitor (Sainsburys) dismissed the loyalty scheme as trivial. Yet, millions of people signed up and that supermarket was soon introducing its own loyalty card. Some of the loyalty vouchers were good for money off specific products and others for money off any purchase. These custom vouchers were generated using computer analysis of purchase dynamics- data mining of all the stored records of a customer's purchases.
Many similar loyalty programs have now been up and running for a couple of years, yet I have still not joined any, despite the fact that I shop in Tesco nearly every day. This is because I consider this level of information about my eating habits an invasion of my privacy. I consider my life to be an open book and have nothing to hide, but I do not like strangers to have more detailed information about what I do than my family and myself have. This is knowledge about my specific micro-behavior- someone can tell what is in my kitchen cupboards and ascertain what I am eating. I am also embarrassed by how much junk food I consume and don't want it recorded anywhere!
There are some privacy laws that prevent disclosure by the supermarket of this information- but I do not trust a static paper-based law over the curiosity of an individual. I get an itemized bill from my telephone company- but they only know who I called and when- not what I talked about (hopefully). I also get detailed credit card and bank statements, but neither comprehensively or accurately represents my spending patterns. Because I use multiple suppliers, any one bill only represents a subset of my transactions. I may make a cash withdrawal, but what I spend it on is my own business. It is important for customers to have multiple sources for similar services since quite often, the customer service offered by one company will let them down. Being able to immediately switch to another supplier confers accountability on the suboptimal service deliverer, and convenience for the customer who is not damaged by the inflexibility and unresponsiveness of the supplier.
As a consumer, I avoid loyalty programs because of the privacy issue and because everyone has a different loyalty card, necessitating carrying lots of cards around, and because the rewards don't often justify the bother. One point for every ten dollars spent is not exactly the financial jackpot! I can see why customer loyalty programs are useful tools for retailers and other companies. As with knowledge management programs, having a central store of data on customers can provide a lot of information and intelligence about customer behavior.
I like simple customer loyalty programs such as a cafe I visited in Norway that gave out a paper business card on the back of which is a place to put a stamp denoting how many coffees a customer has bought. Once five stamps have been collected, the sixth coffee is free! Simple, easy, valuable. The information is not electronically stored, is controlled by the customer and helps the company gets its name and address into the customer's wallet.
Customer loyalty is important- but finding the right means to retain it is even more crucial.
Customer Service Charters
I am an advocate of having customer service charters. In the early 1990s in Britain, the Conservative Party that was then in government introduced a citizen's charter that committed public bodies to meeting certain performance targets. Such charters are a positive step that let customers know firstly the minimum performance standards that organization is targeting and secondly the compensation paid to customers when those customer service standards are not met. The level of service you will provide customers should be clearly and explicitly stated and employees empowered to meet those charter commitments.
When performance targets are specified within customer service charters, customers are rewarded with compensation and the supplier is stung financially if their service falls below those performance targets. Poor performance should be penalized: this is an explicit commitment to customers: it categorically states in writing the performance standards that the company is looking to achieve. Such charters also provide customers with an established complaints procedure through which they can air their complaints.
Customer service charters confer both incentives and independence on employees to allow them to dedicate their time and energy to serving customers. When such a charter exists, an employee going outside of routine procedures to meet or exceed customer service standards can use the charter to justify the necessity of that action to others in the organization. This confers independence. The charter also incentivizes responsive customer service- or at least disincentivizes a lack of responsiveness through penalty.
Examples of customer service charters include compensation if your order is not fulfilled or responded to within a certain timeframe and twice the difference back if it doesn't prove to be cheaper switching to a competing service. These commitments should be clear and specific. Other less explicit service commitments from, for example, grocery stores to open up more checkouts when queues exceed a certain length are positive and welcome, but should optimally be specific.
It is important to set the right targets at the right levels- which is often very difficult to do given the limited understanding of managers. Measures always distort attention away from other important goals. The costs of achieving the set targets should also be considered.
A customer service charter can attempt to optimize customer responsiveness within current organizational forms. Customer service charters are useful ways of improving the mandate and rewards for customer service within existing organizations that suffer from politics, chains of command and so on. But it is very difficult for managers who suffer from bounded rationality to accurately and fairly reward employees for excellent customer service. The company directors are accountable for the company's performance but they do not provide the customer service themselves. In order to get the sort of performance they need, the directors stipulate that organizational procedures be implemented instead of focusing on the outcome rather than the process and opporTUNEitizing. The whole process is flawed, as is the very existence of non-owning employees and static organizations.
Given these facts, the ultimate accountability is conferred by viable choices within free markets. When effective competition is in place, customers can go elsewhere if the standards fall below their own personal expectations- that may be more or less challenging than the stipulated performance standards.
The ultimate stimulus for excellent customer service
I believe that the best way to incentivize people to learn, collaborate, create, achieve excellence and all of those other positive constructs associated with work, including serving customers excellently, is within market-based companies in which members voluntarily cooperate and collaborate to meet customer requirements. If its my customer, as opposed to my company's customer- if they are ringing me and not my company- then I am directly motivated and rewarded for responding with excellence.
In the same way as capitalism confers accountability on entrepreneurs, a lack of market forces and monetary incentives WITHIN organizations leads to non-motivation and lack of responsiveness. The people accountable for the company's performance are not those providing the customer service. In order to get the sort of performance they need, the directors stipulate that organizational procedures be implemented to coerce certain standards. The whole process is flawed, as is the very existence of non-owning employees and static organizations. Only in self-employed situations where people are responsible for their results and directly accountable for the service they provide for customers, can great initial service and customer service be expected. Only independence and ownership and accountability and reward for performance can deliver consistent customer excellence.
Under the transaction costs paradigm (Coase) economic activity can be carried out within markets or firms. Firms as we know them today- office based, permanent staff, integrated arose because the transaction costs from organizing using the market were higher than those from using the firm for the same amount of production. But now enabling technologies are reducing transaction costs and thereby facilitating collaboration within markets- partnering, outsourcing, teleworking and so on. We are persisting unnecessarily with our outmoded offices and organizations.
True incentives are found within dynamic, positive constructs such as markets. Some of this incentive is compelled by the need to bring in an income but most of it is motivated because direction and course are not being set by someone else or confined with static structures.
Truly and consistently great initial and ongoing customer service can only be expected when people are responsible for their results and directly accountable for the service they provide to their customers. Only independence and ownership and accountability and reward for performance can deliver consistent customer excellence.
As such, customer service standards have improved. Competition has spurred a much wider variety of choices for customers. This has incentivized companies to provide their customers with great services. But the standards of customer service are still inconsistent within and between different businesses. Organizations should look to create greater incentives and independence for their employees through opporTUNEitizing measures such as customer service charters that take priority over existing company procedures for non-routine customer service. And ultimately, the best way to realize consistently excellent customer service are entrepreneurs in free markets.
Conclusion
There is so much bad and average customer service out there that any company or person who genuinely goes out of their way to serve a customer excellently is a valuable asset. Customer service is still a competitive advantage that sets a company apart from its competitors. Serving the customer well is the absolute key to ongoing business success and enduring customer relationships.
Bibliography
Karr and Blohowiak, The Complete Idiot's Guide to Great Customer Service, Alpha Book, 1997.
This is a lucid, comprehensive guide to improving customer service in practice. It contains, for example, information about SMARTS: the requirement for customer service charters to be Specific, Measurable, Achievable, Relevant to customers, Timely and Supported by the organization.
To order the book, click here:
http://www.amazon.com/exec/obidos/ISBN=0028619536/unorganizationA/
Knowledge Management
There is much talk about the high importance of "knowledge management" and "intellectual capital" in the unorganized world in which we work with our heads and not with our hands. In the unorganized world, the only property that matters is intellectual property, the only matter that matters is brain matter.
Knowledge is relevant, useful information about things that are important to the organization such as its customers, competitors, product development processes and so on. Knowledge management is all about capturing and leveraging valuable information and making it widely available for use by other people throughout the organization. Knowledge management concerns itself with packaging up information into "components" which when combined and modified can be reused in other places and contexts by other people in the organization.
Positively, knowledge management techniques are lateral across the organization and therefore transcend current structures. This reduces the dependency of employees on their fellow department members. The knowledge is stored and accessible throughout the organization regardless of geography or operating unit. This is achieved using new technologies such as intranets and relational databases. Hence, someone in one area of the company can access information from other areas and past projects to help them make sense of and respond to current projects for different clients. Different employees can refine rather than reinvent knowledge and thereby respond more quickly to the current demands of customers.
In the pre-knowledge management era, most situation and job-specific information resided in the heads of people. Different people may have been carrying out the same sorts of tasks in other parts of the same organization. Yet, the two people may not have talked to one another, let alone shared knowledge about how best to get their similar jobs done. It is also quite clear that knowledge has in the past been difficult to access- because it resided either in brain cells in heads or on paper in locked up filing cabinets. Moreover, some senior managers deliberately protected their knowledge whereas the new imperative for leaders is to diffuse useful information throughout the organization.
The value of having a knowledge database within an existing organization depends upon the extent to which the knowledge and ideas available IN the company are more useful than those available outside the company. External knowledge sources include Internet-related media such as Internet sites and external communities of interest in the form of discussion forums and email lists.
It would be interesting to compare the value of the knowledge gained using the same sensitive search engine tool such as Alta Vista on the public Internet and on the private knowledge database. Perhaps the internally stored knowledge would be more specific to that company and its requirements- requiring less original thought from the employees to solve the problem. Information overload is a myth. Technology tools such as search engines and intelligent agents give everyone the ability to filter down and closely identify the exact type of answers they want.
Knowledge management is less useful when the sought after answers have not been generated in that organization at all. This is the case even in the impossible situation of having a knowledge database that is completely coherent and therefore containing all the valuable knowledge that resides within the organization. Employees must be certain to reassess the truth in the knowledge every time they reuse it- in a fast changing world, information captured in the past may no longer be relevant. For example, some management consultants and Internet commentators have made the mistake of extrapolating the increasing returns model to explain the content-driven era, when in fact it ceased being important in the distribution-driven era.
It is clearly useful to encourage information "externalities" where someone else benefits from being an employee of a particular company because they can access the proprietary knowledge of other people in their organization. Whether I would want to join a management consultancy in order to gain access to its confidential knowledge database is very mute indeed. Its value would depend on the unique truths in its knowledge. These insights and truths are not available from any other sources and are applicable to other situations.
I can well understand why organizations want to gain access to the knowledge in their employees heads. Employees can be rewarded for complying with such systems and contributing to the knowledge database. In fact, gathering the knowledge is necessary but not sufficient for successful knowledge management- that knowledge also has to be used and applied. Hence, rewarding employees for sharing and using knowledge is necessary to get people to use the system extensively. Once they have shared all their valuable information in the knowledge database, employees need to continue creating new knowledge.
Knowledge management is the search for an advantage of persisting with organizations as we know them based on formal membership. It is an attempt to turn an organization into something more than just a formal and uncomfortable collection of individuals working in the same company but not necessarily together or for the same ends.
It may well be useful to have a knowledge database so that when an employee leaves the company, the new recruit has access to the knowledge nuggets of wisdom left behind. Currently, successors have to rely primarily on just a set of quality manuals and procedures explaining what actions to take to do the job- not how or what to think. Knowledge management is to knowledge-based organizations what job procedures were in administration and manufacturing-based organizations.
It is very easy to imagine the implementation of knowledge management exercises as mandatory. Information "components" would then be passed up the hierarchy and signed off and agreed by managers before being posted to the knowledge database. Technology must be accompanied by attitude change- otherwise it just automates rather than informates. The knowledge sharing and collaboration should be voluntary and not mandatory. Compulsion is never the best way to achieve a valuable enduring end.
The fundamental flaws of organized business organizations of bounded rationality, dependence, transaction costs and force (See "Unorganization: The Individual Handbook") coupled with the fundamental change in the operating environment that is the global and diverse unorganized world mean that knowledge management is improvement within a suboptimal organizational form. It is evolutionary improvement in a fundamentally different world.
The optimal way to share knowledge and stimulate effective collaboration and creation to meet end customer requirements is within "collapsible corporations". In these dynamic organizational forms, people with complementary expertise voluntarily collaborate to share knowledge in order to solve a particular problem. Such voluntary free market based forms optimize the incentives to collaborate and widen the quantity and quality of knowledge that can be accessed.
In sum then, knowledge is essential but knowledge management not sufficient to ensure the survival of organizations as we know them. Development and deployment of knowledge is the reason for companies to exist in the unorganized world. This essential sharing of information and collaboration to develop new knowledge should preferably take place in voluntary contexts rather than because employees are compelled to contribute to knowledge databases.
Section C- The Enabling Technologies
The end of technophobia
As we saw in Section A, thanks to technologies, it is becoming a lot easier to coordinate economic activity using markets rather than firms. It is the existence of transaction costs when using free markets that provides the economic justification for the existence of firms. "The costs of using the market arise from the necessity to find out what the relevant prices are, and the costs of negotiating and concluding a separate contract for each transaction which takes place in a market". (COASE, 1937).
Technology is only a means to an end. Its ultimate impact depends on how it is being applied and used. Technologies are not the holy grail that will cure the world of all its ills. The technologies I discuss here do not prevent hunger or end poverty. But they will facilitate the pursuit by individuals of the many economic opportunities in the unorganized world that will earn them income, the most effective way of improving access to food, shelter and education. "Give me a lever long enough and I can move the world." (ARCHIMEDES). I believe that that lever is technology. What humanity can dream, technology can deliver.
People say to me that technologies are not going to make that much of a difference because there is widespread technophobia amongst people, i.e. a reluctance to use technologies because of their perceived complexity. The technologies may well exist but attitudes that are receptive to new technological developments do not.
Technologies become really persuasive when applications built using them do not require users to change their habits. Instead of individuals having to adapt their habits and behavior to overcome the limitations of the technologies, technologies are now portable, flexible and useable. Technologies have to work consistently otherwise the user has to figure out why the technology has stopped rather than thinking about what they want to use it for.
I genuinely think that technologies have now developed to the stage where they are so reliable and easy to use that they become transparent to the user. The structure of Internet is complicated but the mechanism through which email messages are actually sent and how data is transferred from servers is transparent and irrelevant to Internet users. The man machine interface for both the hardware and the software is getting to be so intuitive and easy to use that the user can learn by using with very little training. When Internet browsers are built into televisions, some people will still think theyre using teletext.
Take for instance, mobile phones. As we saw in the "Mobile Working" section, mobile phones are a great technology for keeping in touch whilst on the move. Three generations of mobile phones have emerged so far, each successive generation more reliable and flexible than the last:
Analogue: You could only easily use analogue cellular to make voice calls, and typically only in any one country.
Digital mobile phone systems added fax, data and messaging capabilities as well as voice telephone service in many countries.
Satellite services will supplement the digital offerings and coverage and offer new services such as position location and available to 98% of the worlds landmass.
With each new generation of technology, the services which can de deployed on them become more and more wide ranging and truly limited only by imagination. We are reaching that stage, with exciting implications for unorganizing companies.
Lets take a look at some of the more important new technologies that decrease transaction costs and what they can be used for.
Position Location- The People Pollers
Another technology that I believe will profoundly affect both individuals and institutions is position location satellite services. Position location applications will really take off with the launch the late 1990s of the satellite-based mobile telephone networks. These satellite networks will provide mobile telecommunications service in 98% of the world's landmass excluding only the poles (North and South rather than Poland!). The most powerful of the new position location services is that proposed for the Globalstar mobile satellite system whose 48 satellites will be launched from 1997 with commercial service beginning in early 1999. (See www.globalstar.com). Many regulatory, financial and technical challenges have already been overcome. Globalstar will let anyone with a position location terminal such as a mobile telephone find out their position. Additionally, the location of terminals can be remotely requested- letting someone in an office or house find out where someone else is. Not only can users find out where they are, but they can choose to tell other people their position too.
One service that uses the underlying position location technology is what I call "The People Pollers". This service lets polled people with mobile phones communicate requests for assistance to other people directly or via a central monitoring station. The monitoring station can either manually or automatically assign the nearest suitable rescue personnel to the polled person requesting assistance. Rapid response in order to save lives can be provided. Rescue personnel could be, for example, other family members, the police, fire or ambulance, doctors or nurses, students, graduates, soldiers or post office workers. All the telecommunication company would do is route the calls to the chosen personnel. The police person would then locate the polled person using position location services (moving towards them on the map).
Position location only terminals could be given to the police for controlled distribution to those in particular need of security, such as handicapped or threatened people. The People Pollers would act as a deterrent to personal crimes such as robbery, rape and abduction. It connects the individual to other people when necessary whilst allowing them to go about their own business autonomously in the normal course of events.
Position location services within mobile satellite systems are not however the only technology that offers great potential to shift the balance of power away from institutions towards all individuals.
Electronic agents
Electronic agents are another such technology and are defined as "mobile programs which go to places in the network to carry out their owners' instructions. They can be thought of as extensions of the people who dispatch them." (AT&T). Agents are "self-contained programs that roam communications networks delivering and receiving messages or looking for information or services." (FOREMSKI, 7/1/94).
Four main types of electronic agents can be identified:
Get Me Information Agents can, for example, autonomously search the Internet for relevant information.
Find And Buy agents can locate the least expensive purchase and organize payment and delivery of the purchase itself.
Alert Me When It Happens agents can be told to check departure times for delays and inform in the case that any arise.
Wait For Trigger Then Act agents can for example be told to purchase shares when stock prices fall to a certain level on a certain stock. (BLAKESEE, 1996).
Electronic agents can learn their master's preferences and interests and identify patterns from which tasks can start to be automated on their master's behalf.
Once issued with instructions, the agents are sent out with budgets which entitle them to use resources. When agents are created, a certain budget is allotted to allow the agent to perform its task. helps to ensure that the costs of using agents for completing tasks are in relation to the benefits and importance derived by the agent's master. (ECONOMIST, 14/05/94).
The owner of agents does not even need be involved in negotiating and organizing transactions. Agents can talk to other agents, allowing most buying and selling to be automated. The seller's agent will be able to identify those buyer's agents which are worth dealing with, remember their past preferences and make them special offers and send them tailored information. (WALL STREET JOURNAL, 27/09/94). "Software Agents could Solve Many of Life's Little Mysteries: Ever buy something, and then wonder if you'd bought the best one at the lowest price? Did you ever try to charge something on your credit card, only to find you'd reached your credit limit? How about going to the video store, only to find that the movie you want is out? Perfect information does not exist and probably never will, but it sure would be nice if many of life's little mysteries were solved before they made you feel embarrassed, frustrated, or just plain grumpy... The solution is an invention called an electronic agent- a smart little computer program that runs at your behest, watches out for your interests, and lets you know when something's happened or changed that might affect your life, or even if something happens that might just interest you." (DICKENSON).
Electronic agents are powerful because they will change the way commerce is conducted and people socialize. The implications of electronic agents go far beyond simply helping individuals to keep track of changes in the external environment which affect and interest them. This could happen even whilst the individual is still in a hierarchy. Agents will also affect how firms will be organized. For example, previously it has been merchandisers who have flooded the marketplace with advertising about their products. With electronic agents this can be reversed so that a seller's market becomes more of a buyer's market. The buyer's agent could for instance inform the seller that they are an interested buyer with certain requirements, giving the seller the opportunity to respond. Individuals can respond using their own agents, and could collaborate with their partners and put together a package that meets the buyer's exact requirement. (KLINE, 01/95).
Individuals simply tell their electronic agent what assistance is needed and it goes off and finds it from the appropriate source. First the agent will check the availability of others whom their masters have an affinity with, such as family members, friends and business partners. If these people are not available or not able to respond quickly, the agent routes the signal to a suitable alternative organization or individual. My agent has learned which are the competent private organizations by observing the company's agents and what their masters are telling them to do. Electronic agents belonging to people who have used the company in the past can be instantaneously queried: word of mouth remains the most effective form of advertising.
Electronic agents will empower individuals and thereby threaten the form and reason for existence of organizations as well. Marc Porat, former Chief Executive Officer of General Magic, a company that created some agent technology, describes the effect of agents on individuals and institutions. "The transaction cost of finding you, and arriving at some sort of exchange value is high... The invention of electronic agents will allow people to abstract their commercial desires from their physical selves- to create representatives of themselves- that go off and do useful things for them in the marketplace, buying and selling goods and services. We have always been firmly rooted in ourselves, except for minor exceptions like the ability to call a travel agent or a stockbroker and have that agent do things for us. Until now, only the rich could afford agents. But with digital technology, people will have the ability to create electronic agents for free, essentially- or close to free- to do things for them." (KLINE, 01/95). "There's never been a time in history where the ordinary customer can put out a request-for-proposal into the market at large and have vendors bid on it. Corporations can do it. Governments can do it. But not consumers." Now, with agent technologies, individuals can do what institutions do, facilitating collapsible corporations.
The Internet
The Internet is a technology with the potential for very positive affects on individuals. "The Internet is a worldwide telecommunications network linking several million computer systems and more than 30m users who exchange electronic mail and browse for information. It is self-regulating and under the control of no authority." (CANE, 15/06/95). [There are probably now closer to 100 million Internet users globally). The Internet lets individuals publish their work with little or no entry barriers. The Internet reduces the entry barriers to opportunities because access is even and success is based more on talent than membership. It is easy for any individual to have a global presence instantly using media such as the Internet. Any individual can cheaply set up an Internet site and people around the world can then cheaply access that information and contact the owner of the Internet site for more information using electronic mail. No one censors or edits or otherwise judges that content, and no-one can prevent its publication. Its success depends upon the perceived value of the content published there. Now I know why they spell the Internet with a capital "I". Given its impact, I think it deserves it.
An off-shoot of the Internet, the intranet, will provide a central information repository for individuals and companies to use to store and share their knowledge. An intranet is a World Wide Web home page set up using the same software as Internet pages, but with a so-called security "firewall" limiting access to authorized organizational members. Any organizational member anywhere can dial into the intranet site for the cost of a local telephone call using standard World Wide Web browser software such as Netscape Navigator. They can then view whatever is on their private Internet site, be it project plans, customer tenders, requests for project members and other internal company specific information. The company as electronic bulletin board perhaps.
Dynamic authoring
Intranet infrastructure can already be used to unorganize companies- today. Imagine two separate companies with different skill sets collaborating on a project. Partner company or person A can collaborate with Partner B using standard Internet technology, namely Internet browsers locally and so-called dynamic authoring at the host offices. When the server gets a request for information from a Internet browser it extracts this information from the business database and sends it to the requester. This process is known as Internet dynamic authoring, a powerful facilitating process for collaboration between Company A and Company B. Dynamic authoring basically means that business database records which are not stored directly on the Internet can nonetheless be sent in real time into a tailor-made Internet page. The Internet is the common means through which both companies can access and display information.
This collaboration can take place irrespective of any lack of compatibility between the PC platforms they are running their browsers on. Company A could have an Apple Macintosh environment and Company B a Windows PC platform. Despite this, information can be exchanged across the Internet anyway. Neither does it matter what type of platform the business database is running on. Dynamic authoring translates information from one environment into the shareable Internet format.
Dynamic authoring also overcomes the need to manually update Internet pages as information changes. Instead, tailored data can be published as and when it is requested, and is always up-to-date with the business service data. For example, parcel tracking Internet sites dynamically author the current position of packages by taking data from the parcel companys database systems and posting it into Internet format on the parcel inquirers Internet browser. The information available to the parcel inquirer can be restricted to the status of their package only. The parcel companys "extranet" relationships with other suppliers, for example, airlines, are "firewalled" off (Security is provided to protect private data from public access). An extranet is an intranet which suppliers, strategic partners and other collaborators have access to.
The power of the Internet is that individuals, separate organizations or separate departments or branch offices can be connected through it. The Internet provides an inexpensive global information delivery mechanism and means by which electronic transactions can take place through computer networks. Transient relationships are possible because expensive dedicated leased lines for electronic data exchange are not needed. Instead, individuals just need an inexpensive Internet service provider account, which can be dialed up from a fixed telephone or mobile network modem. With dynamic authoring, any information can be shared from any database, providing people have sufficient access rights. Controlled relationships are facilitated because firewall security restricts access to those data sets Company B wants Company A to have access to. The firewall acts as an information filter.
Electronic banking
To illustrate the profound implications of Internet technologies such as Internet browsers and dynamic authoring, I will describe how they will transform the banking industry. Most people currently use a high street bank, in other words, they visit a geographically located physical branch to transact. Personally, I really dislike this physical branch model and having to be physically present to transact at a counter or Automatic Teller Machine (ATM). It is energy consuming getting from work or home down to the branch, and time consuming getting to the branch and queuing for counter service. Ideally, customers could transact and withdraw cash remotely from wherever they are. This is both more convenient for customers and cheaper per transaction for banks. Physical branch banks in the UK bleed between 55% and 70% of their income as costs, telephone banks around 25%, on-line banks under 20%. (HOLLINGER AND GRAHAM, 26/10/96).
As I envisage it, this conventional banking model will be replaced by my model of electronic banking, called the Internet browser model. This new model involves the banks using Internet dynamic authoring of information from any of their host business databases. At the same time, the banks customers use Internet browsers running on any device to access "virtual branches" for banking services such as transferring funds and arranging loans. Internet browsers will soon be integrated into every device, from smart mobile phones to network computers (NCs). Internet browsers will be the universal client (i.e. information access mechanism) and will be ubiquitous such that there will not be "information haves" and "information have-nots". Instead, everyone will have access to a Internet browser from some consumer device such as a TV, telephone or PC. NCs are stripped down PCs with software applications such as spreadsheets stored not on the local device but on the Internet itself.
As ever, dynamic authoring will be critical in developing true electronic banking. A customer would enter the banks Internet address (such as www.bankZ.com) into their Internet browser, which dials up the banks Internet Server. The requested information is located in the banks business service databases and dynamically authored into an Internet template for transmission back to the originating Internet browser. None of this information need go through a one off process of transferring all the data into Internet format. Customers can transact using this basic model of client Internet browser and host dynamic authoring.
For example, when shopping, funds can be transferred in real time from the purchasers to the sellers bank accounts using Internet browsers. Electronic tills will have integrated Internet browsers, as will ATMs. Smart mobile phones will become electronic purses. Dynamic authoring means that buyers and sellers can use different banks and legacy database systems and different Internet browser enabled devices. The banks just need access through each others firewalls to "clear" funds periodically. And the technology is available now, the applications just need to be implemented.
And it is not just the banks which will be transformed by ubiquitous Internet browsers and powerful dynamic authoring. Its just information after all, and all the Internet is is an information delivery mechanism. I wrote about this topic in a letter published in the Financial Times called "Web requires professional surfers":
If in "Rise of the Internet threatens traditional banks market", (FT, AUGUST 12th 1996), you replace the word "banks" with "companies" and the word "branch" with "office", you end up with an emerging truth. That is, all companies in all sectors are significantly affected by applications of technologies such as the Internet.
Web-based order processing, that is, Internet front ends to traditional legacy database systems, are the next big trend which many banks and other retailers will adopt as they move past entry level Internet presence.
Technologies such as credit [secure] credit card authorisation, Java and ActiveX will facilitate interactive Web pages, increasing the attractiveness of online transactions.
If you combine the impact of the Internet with other technologies such as smart mobile phones and position location systems you begin to see the possibility of "collapsible corporations" defined by transient transaction-oriented electronic signals and not physical, geographical structures such as branches.
Traditional vested interests may deny this but as the growth in the graph in your article shows, these trends are irresistible. The repercussions in terms of "technological capitalism", in which individuals can participate in, and benefit from, free markets, are phenomenal.
Entry barriers to the Internet are low and publishing and retailing opportunities high. The waves that the Web will throw up will require pro-surfers." (BUCKINGHAM, 21/08/96).
Implications for organizations
Technologies such as the Internet will have profound implications for the way that work and companies are organized. They are a fundamental facilitator of unorganizing companies because you no longer need a high cost fixed overhead administrative office infrastructure. Think of the massive savings in fixed overheads if your head office is an Internet site. When you are using the Internet you dont even need to have a Internet or e-mail Server at your offices.
Currently, organizational processes are based around physical piles of paper-based documents. There is so much paper in offices: filling cabinets, in trays full of "snail mail" post, management reports, invoices, forms etc. It has got to the stage where it quicker to dial directory inquiries than locate a business card to get a telephone number. Information is out of date before we have time to file in (which has the advantage that we can simply put it in the recycling bin!).
We need to apply information technology in organizations for several reasons:
To process the increased amount of information available in order to understand events in the unorganized world and identify global market opportunities. This means that information cannot be segregated on the basis of rules to restrict volume, timeliness, breadth and usefulness of information as it is in hierarchies. The availability of data must no longer be restricted to conversations, filling cabinets, and managers heads. It can be shared throughout the corporation.
To prevent information from being distorted and delayed. Employees can go directly to the source of information by calling it up using an Internet browser. Effectively you make the access to information more transparent, thereby removing the low level barriers to high level thinking.
To allow information to be accessed and processed in parallel rather than sequentially by making information available to relevant Business Partners, suppliers and employees.
To provide employees with the information they need to make decisions, for example, the ability to access a Business Partners home pages to see if they have a suitable capability to deliver a customer solution.
Most companies still have paper-based sales order processes which involve many different people who are often geographically dispersed. Pieces of paper can travel many miles during processing. Such paper-based processes can be replaced by electronic ones. It is already possible for electronic forms to be called up through an Internet browser and completed and sent across the Internet, processed (automatically by electronic agents) and passed on through intranets and extranets to other companies such as banks. This dramatically speeds up the processing time and thus the responsiveness. It also reduces the number of data entry errors by replacing handwritten forms with electronic forms that have drop down menus from which options can be clicked on. The browser becomes the key to the electronic filling cabinet with incoming and outgoing mail automatically sorted and stored in that companys electronic file along with hypertext links to that companys home Internet pages.
This will clearly automate the data preparation and entry jobs, with resulting loss of administrative jobs. However, it is vitally important to remember that "information technology is characterized by a fundamental duality that has not yet been fully appreciated. On the one hand, the technology can be applied to automating operations according to a logic that hardly differs from that of the nineteenth-century machine system- replace the human body with a technology that enables the same processes to be performed with more continuity and control. On the other, the same technology simultaneously generates information about the underlying productive and administrative processes through which an organization accomplishes its work... In this way information technology supersedes the traditional logic of automation... Activities, events, and objects are translated into and made visible by information when a technology informates as well as automates." (ZUBOFF, 1988). For example, supermarket scanners automate the grocery checkout process and simultaneously generate information that can be used for market research and stock re-ordering. Technology does far more than just routinize and eliminate jobs, it increases the intellectual work for all employees and the value they can add through the ideas they generate when interpreting this data. Technology frees employees from mundane routine, letting them do the fun stuff like create and innovate.
The informating process means that we are going to need "knowledge workers" who make sense of the patterns of data, thereby adding value to it. "Our definition of a knowledge worker is someone who sits behind a desk and plans to take information and crunch it with ideas". (LEVY, 1995). This is a great definition except the desk does not have to be in an office. The very nature of work has changed from working with our hands to working with our heads. We need to aware that as ever people inevitably can only process this data in incomplete ways and that more data is not necessarily better data. Just as we need to have visited and explored places to really understand them, we still require some actual human contacts and physical visits to better understand business processes and objectives.
Downstructuring case studies
Let me now describe a company that has already downstructured. Channel Africa, part of the South African Broadcasting Corporation (SABC), radically downstructured to adjust to the post-apartheid unorganized world.
Since the early 1990s, South Africa has been undergoing a fundamental transition from the restricted, old, organized apartheid world to a new, largely unorganized society with freedom of movement and universal elections. As was to be expected, this revolution has permanently affected all individuals, companies, institutions and politicians in South Africa. In response, the countrys monopoly broadcaster, the South African Broadcasting Corporation (SABC), engaged in radical downsizing, including the compulsory sale of many local radio stations and liberalization in particular of local commercial radio. These efforts further stimulated the establishment of numerous private and independent community radio stations throughout South Africa.
Among the SABC units grappling with this revolution is Channel Africa, a pan-African short-wave radio network, broadcasting in English, French, Portuguese, Kiswahili and two other African languages. Radio, especially short-wave radio remains a vital means of communication and information dissemination in Africa. The general lack of infrastructure means that there is heavy reliance on battery operated, and, more recently, wind-up radios not requiring batteries (designed in England and built initially in South Africa before being moved to Brazil).
Executive Editor at Channel Africa is Hans-Dieter Winkens, the essential architect and visionary behind the move to cope with the new unorganized world by downstructuring. 54-year old Hans has seen both sides of the coin, having emigrated to South Africa from the post-world war two ruins of nazi Germany as a young boy and having, decades later, worked as an administrative assistant in the former Afrikaner-dominated regime in Soweto, where Johannesburgs black people were forced to live under apartheid.
It was the injustice that Hans observed during his work in the townships that ultimately led him to join the SABC, which was then one of the prime organs of preservation of the status quo. He soon took on the role of full-time Shop Steward in a trade union, which was seeking economic equality through traditional, organized routes. As one of the prime movers in negotiations between the union and the SABC management, Hans helped smooth the SABCs transformation to the unorganized world at a time of radical management changes.
The fairness and integrity he showed in those negotiations established his reputation to the extent that he was called on to take on the job of Executive Editor of Channel Africa. The low worker morale caused by an absence of leadership and vision appeared to be beyond help. Indeed, it had been the major reason why Hans had initially refused to consider getting involved. One of the other reasons was that the new South African government had not committed itself to continued funding, but had hinted that the foreign broadcaster would have to become self-supporting.
Shortly after joining Channel Africa, and grappling for a method to bring about the necessary fundamental change in the company culture, strategy and structure, he turned to the Internet and located the unorganization Internet site www.unorgan.com
Intuitively following "worker-centric" sentiments and reading "unorganization" spurred Hans to use downstructuring, RATHER THAN restructuring or downsizing, to less painfully achieve the necessary transition. To this day, and despite a continued absence of firm state assurances, he has steadfastly maintained a policy of not engaging in forced retrenchment. The pressures of change have nevertheless moved more than 20% of Channel Africas total work force to either resign or accept a voluntary retrenchment package. Among them were quite a few people who Hans knew would thrive on the challenge of "work" versus "job and position" and were therefore encouraged to leave Channel Africa.
Downstructuring within Channel Africa involved the following initiatives:
1. "Learn to live your dream!" was the message to the small [more than 90] group of broadcasters in six languages. "Channel Africa is in the business of enhancing capacities for informed decision-making in the daily lives of millions of Africans all over the continent. It does so by way of providing appropriate news and information upon which such decisions may be based. As long as the window of state funding remains open, lets get ourselves empowered to become excellent performers in that area. Lets foster the African unity that will be so essential for the continents future, by becoming the foremost "afrocentric" news and information content providers to broadcasters all over the continent and the world. Lets make that vision and mission WORK!"
2. "Positions" and the rules and policies entrenching the hierarchy, such as job descriptions - which coerced employee compliance and constrained employee growth - were abolished. All employees were encouraged to assume the title of "partner" and each partner was set free to change and expand their role and to explore their full potential. Basically, Channel Africas "employees" were told to decide for themselves by their actions who stays in the company and in which areas the company will remain active.
Crucially, however, the companys leadership did not merely abolish administration and controls, but provided the newly liberated employees with the technological tools to support them in the transition. Downstructuring is not simply cutting administration, it is also providing people with the technology tools that amplify their presence and effectiveness and let them be all that they can be. To downstructure, you cannot just cut the employees loose. You cannot simply turn up and announce that all of those people not fully occupied and keeping busy rather than doing business are now free to find themselves some other real work to do and thereby expand their work and responsibility and learn more. Downstructuring must be accompanied by the use of new technologies both within the office and by remote employees. At the host, technologies such as intranets and dynamic authoring are needed to automate paper-based processes and simultaneously informate and liberate those employees carrying out administration. Mobile workers out of the office need laptops, mobile phones and personal telephone numbers so that they can work from wherever they are.
3. Digitalization - Channel Africa had been the first unit at the SABC headquarters to install digital audio recording and broadcast technologies. Despite clear advantages over the old analogue production techniques, Hans found that the systems had been severely under-utilized. Fear of the unknown and of their own capacities - as well as uncertainty of management reaction - had essentially suppressed system utilization and development. The rapid switch to digital technology meant that some analogue specialists faced the choice of learning to use the digital technology or to transfer to other units still using analogue technology.
Hans dispelled the handicapping myths and replaced "We cant!" with "Lets DO it!". Virtually all Channel Africans, even partners who had for years been cooped up in administrative desk jobs, are now doing digital audio editing and are harvesting program material. Soon, they will all be challenged to try their hand at web authoring and webcasting via Channel Africas new Internet site. And their personalities, capacities and capabilities will also feature, perhaps opening up new opportunities for them and for Channel Africa.
4. Supply of mobile field technologies - Hans told Channel Africas employees that, despite relatively good line links, news gathering did not start and stop at the companys headquarters. [Incidentally, the structure of the SABC headquarters building still bears stark reminders of the old, rigidly structured apartheid days, when its strangely arranged elevators were separated for white and non-white people]. The newly mobile correspondents, liberated from their office desks, were given access to cellular and direct-to-satellite mobile telephones. When travelling around Africa on assignment, the correspondents can now use the mobile phones to file their reports from wherever they are, and occasionally call in and ask for advice or help.
Channel Africa "employees" were also encouraged to purchase PCs with modems and sound cards so that they could start working from home.
5. Partners are given access to all but the most private and personal (e.g. salaries) data pertaining to Channel Africas operations in a concerted effort to encourage debate around expenditures and value for money activities or ventures. Hans argues that such openness is essential in building team accountability and will eventually act as a self-regulating force, preventing misuse of funds. He says: "All our partners are perfectly capable of maintaining their complex economic lives. So why should they not become involved in the economics of Channel Africa? We are all mutually accountable to the South African people in the application of their tax Rands!"
Different "employees" responded differently to these changes according to the personal instincts and beliefs. As Hans emailed Simon Buckingham, the author of this book:
"Apropos unorganisation, Im having the normal backlash from people who would prefer to be employees rather than partners and would like to revert to titles and positions linked to remuneration. Also finding it slow going with progress on entrepreneurial incentives. Establishing criteria for performance excellence through consultation and consensus is also an uphill battle, what with the multitude of perspectives brought to the discussion by so many different cultures. Non-performance linked incentives I have introduced relate mainly to Channel Africas [new Technology] partnership infrastructure, like sponsored Internet access, peripherals such as CD-ROM, sound cards, software, etc. IF prospective partners acquire their own PCs. That way, I can provide links for them to study and be inspired by while they are at home and set the scene for their greater independence and participation."
"So many changes, so little time! What with a dozen people climbing off the bus this month due to fear of the unorganized future, new people clamouring to be part of our new way of life, new people starting, people coming for basic introductions to the wonderful world of technology, etc. In the latter category, I now have a TV and film set designer/ dresser/ marionettist/ effects maker/ .... in her 40s learning to manipulate the mouse herself through playing solitaire on one of our machines and thus acquainting herself with the new tools in order to acquire the vital skills and thus ensure her own future.
Many regards Hans."
[That PC-trainee, NOT a Channel Africa employee, was subsequently forcibly retrenched by the SABC on recommendations by McKinsey consultants. She became one of more than 1,000 victims of outmoded bottom-line driven downsizing].
Those partners who were able to change their attitude and who were flexible and energetic enough to accept the challenges and opportunities from their new-found freedom thrived. For example, a young female reporter with a sparkle in her eyes took a satellite mobile phone and went off to cover some political elections in a remote African country. This was exclusive and groundbreaking coverage of a significant, yet virtually ignored event. As a result of the quality of such exclusives, this reporter subsequently received two job offers from other broadcasting companies covering Africa.
She declined both offers, and remains with Channel Africa, but both she and Hans know that she and other such partners now have job choices and alternative stages upon which they can perform and earn a living doing what they do best - empowered to DO it.
However, many people felt neither willing nor able to reinvent themselves and left Channel Africa altogether. They accepted severance packages, known within the SABC generally as "retrenchment packages". Their future is uncertain though, and dependent on personal attitude change: some took the sizeable sums for leaving and invested in new businesses based on their hobbies and interests. These people no doubt found new enthusiasm and drive. Others simply went home and wondered how they could get their economic life onto another track.
But then again, the positive transition to the post-apartheid world necessitated a fundamental transition from outmoded organized ways and means can never be achieved without some difficulties. You simply cannot reverse decades of folly overnight.
The greatest advantage of using downstructuring rather than downsizing or restructuring to reinvent Channel Africa was that the new leadership put "employees" in charge of their own destinies and future prosperity. Instead of being helpless at the hands of their managers, and subject to their decisions, hapless victims when decisions turn sour, the employees were given the choice: "Reinvent yourself and your job or leave!".
Summary
We have seen throughout this book how technology tools such as Internet email, laptop computers and mobile phones are facilitating the unorganization of business organizations through programs to increase use of practices such as teleworking, outsourcing and partnering. Companies can thereby become more flexible and global and yet simultaneously maintain and enhance communication within and around the company. New technologies facilitate new ways of working. Companies looking to survive and thrive in the 21st century need to embrace and implement these unorganization practices.
If I was a company director looking to unorganize my organization to align it more closely to the very different operating environment in the 21st century, I would choose one of these unorganization practices and implement it. If your costs are too high, reduce them by outsourcing non-strategic tasks. If you have a great offering that too few people are using, find some suitable business partners. If office space is in short supply, identify groups of people who can telework. Provide mobile workers with the right communications technologies to make the job allocation and customer service process more efficient. Gather knowledge.
And above all else, remember that it is not sufficient to simply deploy new technologies and continue with the old management practices. Management and organization need to be aligned, just as environment and organization do. Harmony is the goal- do what comes naturally. As someone rightly said, you have to combine "high tech with high touch". The technologies are just a means to an end, as are the practices. At the end of the day, the key thing is that everything we do in organizational contexts is business and not busyness! All companies and individuals must repeatedly ask themselves whether their actions are business or business and ensure that they eliminate existing and imminent busyness whilst maximizing the business that gets done.
The main barrier to implementing unorganization in companies is likely to be the vested interests of managers keen to maintain their existing power bases. The technologies certainly exist and companies. Attitude lags reality. It is a challenge for managers to change their company- to recognize that in fact the same ends of profits and income can be achieved via very different unorganized ends. Decision makers have to recognize that in setting their employees free from their offices and desks, they are in fact also making them more and not less accountable. It is also hard for individual employees to make the change- they need to motivate themselves to work from home, discipline themselves to communicate routinely and regularly with people and overcome the guilt they feel about not continuously working at their job all day long. Everyone in the company that is unorganizing needs to get the right attitude and the right execution- to see what is possible and then make it happen. Change in the unorganized world is inevitable. So make sure it is enjoyable.
Feedback
This book is at the junction of at least two others published on https://www.unorgan.com "Unorganization: The Business Handbook" and "Unorganization: The Individual Handbook". The former analyzes the old organized forms of organizations and systematically suggests theoretical alternatives. The later is much more about employment in the unorganized world where employees are "branders" creating opportunities for themselves. The "unorganization" author Simon Buckingham welcomes all feedback is happy to enter into a dialog with companies looking to make a change for the unorganized world. Send an email to simon@unorgan.com He hopes that you will not simply read this book, but implement it too.
Bibliography
The sources quoted in "Unorganization: The Implementation Toolkit" are listed below. Please note that the section called "Books" on the front page of www.unorgan.com reviews many of these books and many others that of interest to you.
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