Organizational Leadership in the Social Age, Introduction

Communication methods and styles in our socially networked world have changed. To remain effective, leadership methods and styles must change as well. Most business leaders use instant messaging to be more efficient, and some have embraced social networking tools like wikis and blogs to powerfully influence large communities. But in many ways, a socially networked world calls for an overall re-assessment of leadership skills and values.

In a series of blog posts, I’ll be highlighting ways in which traditional leadership skills and values are being reshaped in this changing world. For the business leader I’ve identified three primary skills and values that are most affected by social networking: 1) a renewed focus on people; 2) a renewed commitment to honesty and transparency; and 3) increased risk-taking, or, to put it another way, decreased risk aversion.

This last point is perhaps the most powerful and least obvious advantage offered by social networking. In my role as Vice President of Technology and Innovation at IBM I saw first hand that social networking tools were able to quickly and efficiently bring together the best minds around an idea or project. This highly efficient innovation environment significantly reduced the risk normally associated with R&D. Communities around the world can help fine-tune a product or service lowering the R&D cost. In The Social Factor I suggested that this changing risk profile presents a great opportunity for businesses and individuals. The business leader is now free to consider greater investments in R&D as a way to gain a competitive advantage, but without increased risk.

In the next blog post, I’ll explore the ways social networking has led to a renewed focus on people, and their ability to uniquely contribute to the organization. The business leader can leverage this new emphasis to motivate employees to deliver better products faster, and have fun doing it!