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Managing Technology Democracy in the Workplace Power to the people? Managing technology democracy in the workplace Sponsored by A report from the Economist Intelligence Unit Power to the people? Managing technology democracy in the workplace Preface ower to the people? Managing technology democracy in the workplace is an Economist Intelligence P Unit white paper, sponsored by Trend Micro. The Economist Intelligence Unit bears sole responsibility for the content of the report. The Economist Intelligence Unit’s editorial team executed the survey, conducted the analysis and wrote the report. The findings and views expressed here do not necessarily reflect the views of the sponsor. Our research drew on two main initiatives: l We conducted an online survey in March and April 2009. In all, 390 executives from seven European countries took part. l To supplement the survey results, we also conducted in-depth interviews with senior executives and independent experts on technology use in the workplace. The author of this report was Svetlana Grant and the editor was Denis McCauley. Our sincere thanks go to the survey participants and interviewees for sharing their time and insights on this topic. September 2009 © The Economist Intelligence Unit Limited 2009 Power to the people? Managing technology democracy in the workplace Executive summary echnology changes are often accompanied by fanfare, but in recent years at least one quiet Ttechnology revolution has been developing in the workplace. Individuals are adopting for work use the applications and devices they have learned to use in their personal lives. Applications previously accessed only on home computers, such as wikis and social networking sites, now appear on business PCs. Nearly every employee is now equipped with a personal mobile device and can become an online publisher with the help of blogs. As a result, employees are challenging the technology status quo in their organisation. Many are demanding “technology democracy”—greater freedom to use the information technology (IT) applications and devices of their choice in order to conduct their work more effectively. Companies are not entirely ready for this development. In Europe, many firms resist the notion of according greater technology choice to employees and business units. Just under one-half—48%—of respondents to an Economist Intelligence Unit survey of European executives conducted for this study say that management of their firms is supportive of expanding technology freedom at the grassroots level, but virtually the same number, 47%, say the opposite. On a hopeful note, executives tend to see more opportunity than risk to their business from this development. Nonetheless, the use of new IT tools goes on at many firms without clear IT guidelines and proper training. In their absence, business risks are likely to increase for these firms. This pressure from below on company management and the IT function will to continue to mount. Generation Y, also known as the “millennials”, is populating the workforce in increasing numbers, and it will not be long before they begin advancing to middle management positions. Increasingly reliant on social media, messaging and other personal networking technologies to conduct their work, this generation will challenge the established modes of IT management in organisations. Other key findings from the research are highlighted below. l Innovation and morale stand most to benefit from technology freedom. Over 40% of European executives are prepared to deal with the risks of technology democracy in order to reap its business benefits. The chief gains, they believe, will come in the form of better grassroots innovation, as well as higher morale on the part of employees who are trusted to make at least some technology decisions for themselves. 2 © The Economist Intelligence Unit Limited 2009 Power to the people? Managing technology democracy in the workplace l The risks are real but can be managed. The fears of executives who resist according greater technology freedom in their firms are not misplaced. No few employees have wasted valuable work time using Web 2.0 applications for personal purposes, and companies have been damaged by sensitive information appearing on blogs, for example. Survey respondents agree that the biggest risks from technology democracy are lower productivity, the loss of confidential information and an increased vulnerability to viruses. l Keeping technology chaos in check requires clear rules. Where any degree of democracy exists, technology freedom must be supported by clear rules and regulations to prevent a descent into chaos. The most important means of minimising productivity loss and security risks include conducting regular and mandatory training courses for employees, developing formal guidelines and continuing the work of upgrading network defences. l Firms must provide better training on using new technologies. Most executives in the survey claim that their firms have drafted IT policies to govern employees’ use of devices, applications and websites in the workplace. But few have begun to instil these guidelines in the minds of employees: no more than 21% of surveyed firms provide training on the use of personal communications devices, and only 17% do this in regard to social networking applications. More worryingly, no more than one-fifth have plans to do so in the future. l Some IT decentralisation may be needed to manage the security risks. When asked their view on the implications of greater technology freedom for the IT function, survey respondents’ reply that Six steps to keep technology democracy from media and personal communication devices should also become part descending into chaos of regular employee training. l Be ready to devolve some security oversight. Securing the ever- expanding universe of applications and devices that employees use Whether or not management is supportive of expanding technology could overwhelm the centralised IT function. Trained IT specialists freedom, grassroots pressure to use new technologies will not go in the business units may be better placed to manage this aspect of away. The research suggests a few measures that all organisations information security. can implement to ensure that this pressure remains creative and not l Develop in-house social networking tools. Large companies destructive. should consider building internal social networking applications, l Publish clear guidelines for technology use and update them which can deliver the benefits of information sharing—especially regularly. Clarifying the rules of technology engagement for improved innovation—without the security risks. Such tools may employees is imperative in order to minimise the threat of security not be right for all firms, however, as they can require significant breaches (and productivity loss). They must also be updated resources to build and maintain. frequently, as technologies change at breathtaking speed. l Make the business units a partner of IT. Current mantra holds l Make the guidelines specific. Some firms which encourage the that the IT function must become a “true partner” of the business workplace use of blogs and social networks, for example, require units. This should also work the other way round. Employees employees, among other things, to identify themselves clearly and often have a keener sense than IT of the business utility of a new to use disclaimers when discussing the firm, and to avoid citing application, and line managers may have a better knowledge of clients, partners or suppliers without their approval. employees’ technology needs and practices. Involving business l Educate and train. It is not enough to develop guidelines; they units in technology decision-making will ensure that this knowledge must be communicated to employees. Courses on the use of social is tapped, and will also expand awareness of new risks. 3 © The Economist Intelligence Unit Limited 2009 Power to the people? Managing technology democracy in the workplace the delegation of responsibility for information security to individual business units is the most likely outcome. This would allow the IT function to focus on other tasks, such as the management of firewalls and other aspects of physical network security and tracking new external threats. The technology democracy survey alone accounting for 30% of the group. A range of functions was represented in the survey, with general management, strategy and business The analysis in this study is based in part on development, sales and marketing, finance and IT an online survey, conducted by the Economist the most prominent. Respondents hailed from 8 Intelligence Unit in March and April 2009, of 390 different industries, as well as a range of company executives based in the UK, Germany, France, sizes, with one-half of respondents coming from Italy, the Netherlands, Sweden and Russia. The large firms—those with over US$500m in annual sample was senior: 49% of all respondents were revenue. More details on the survey sample and C-level executives, with CEOs and board members results can be found in the appendix. 4 © The Economist Intelligence Unit Limited 2009 Power to the people? Managing technology democracy in the workplace Introduction: Challenging the established order he traditional model of information technology (IT) management in organisations may be likened Tto a benevolent dictatorship. The IT function, led by the chief information officer (CIO), chief technology officer (CTO) or IT director—having the best interests of the business
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