Business communications to shift to social networks

CEBU, Philippines - A study conducted by technology solutions giant IBM revealed that business opinion makers or the chief executive officers (CEOs) in the future will shift their focus from using e-mail and the phone as primary communication vehicles to using social networks as a new path for direct engagements.

IBM’s latest study on more than 1,700 CEOs from 64 countries and 18 industries further showed that at present, only 16 percent of CEOs are using social business platforms to connect with customers as individuals, but that number is poised to spike to 57 percent within the next five years.

According to the 2012 IBM CEO study, this trend is even more significant in ASEAN where the use of social networks is expected to go up to 68 percent from the current 25 percent, as ASEAN CEOs plan to step-change from traditional to social media while continuing face-to-face engagement.

Coming after decades of top-down control, the shift has substantial ramifications – not just for the CEOs themselves – but for their organizations, managers, and employees, as well as for universities and business schools, and information technology suppliers.

The IBM’s research finds that technology is viewed as a powerful tool to recast organizational structures. More than half of CEOs (Global: 53 percent, ASEAN: 53 percent) are planning to use technology to facilitate greater partnering and collaboration with outside organizations, while 52 percent (ASEAN: 47 percent) are shifting their attention to promoting great internal collaboration.

“CEOs realize at this point that even greater levels of control are not the key to greater innovation and financial performance. Rather, leaders have seen how extremely dynamic social networks can serve as the foundation of amazing levels of collaboration. ASEAN CEOs, in particular, are keen to leverage social networks and focus on collaboration – both internally and externally with customers and partners,” said Jack Arambulo, Country Manager for Global Business Services, IBM Philippines.

Greater openness is not without risks. Openness increases vulnerability. The Internet – especially through social networks – can provide a worldwide stage to any employee interaction, positive or negative. For organizations to operate effectively in this environment, employees must internalize and embody the organizations’ values and mission. Thus, organizations must equip employees with a set of guiding principles that they can use to empower everyday decision making.

ASEAN CEOs, more so than their global peers, regard interpersonal skills of collaboration (Global: 75 percent, ASEAN: 87 percent) and creativity (Global: 61 percent, ASEAN: 72 percent) as key drivers of employee success to operate in a more complex, interconnected environment.

“Given their intent to create greater openness, CEOs are looking for employees who will thrive in this kind of atmosphere. CEOs are increasingly focused on finding employees with the ability to constantly reinvent themselves. These employees are comfortable with change; they learn as they go, often from others’ experiences,” added Arambulo.

To build its next-generation workforce, organizations have to actively recruit and hire employees who excel at working in open, team-based environments. At the same time, leaders must build and support practices to help employees thrive, such as encouraging the development of unconventional teams, promoting experiential learning techniques and empowering the use of high-value employee networks.

The trend toward greater collaboration extends beyond the corporation to external partnering relationships. Partnering is now at an all-time high. More than two-thirds of Global CEO’s (69 percent) IBM spoke to intend to partner extensively. In ASEAN this number is even higher at 79 percent, with CEOs in the region aiming to partner extensively as part of their core innovation strategy.

This study is the fifth edition of IBM’s biennial Global CEO Study series. To better understand the challenges and goals of today’s CEOs, IBM consultants met face-to-face with the largest-known sample of these executives.

Between September 2011 and January 2012, 1,709 CEOs and senior public sector leaders were interviewed worldwide to better understand their future plans and challenges in an increasingly connected economy. —  (FREEMAN)