UPDATED 16:15 EDT / FEBRUARY 18 2010

Companies’ Irrational Fear of Social Media

Irving Wladawsky-Berger has put together a good review of several studies and reports concerning business use of social networks:

Why are so many companies reluctant to embrace social networking?  One of the articles in The Economist special report focused on this question – Yammering away at the office: a distraction or a bonus?  “An astonishing amount of time is being wasted on investigating the amount of time being wasted on social networks,” it provocatively starts out saying, and then adds:  “Studies regularly claim that the use of Twitter, Facebook and other such services poses a threat to corporate wealth.”

Those worried about the use of social networks in business often mention their fear that staff might use them to broadcast politically incorrect comments.  This fear seems groundless.  Employees already have access to social networks through their personal PCs and mobile devices, so they need not wait for corporate sanctioned channels should they wish to post inappropriate comments.  Better to deal with the issue directly, by providing guidance to employees on the proper use of social networks.

The traditional, industrial age hierarchic organization must evolve.  Firms must embrace more flexible organizational structures, better suited to help them reach out, absorb and integrate all the knowledge flows, expertise and talent out there.  The Internet, social networks and related communication technologies are helping create such flexible organizations, as well as having a huge impact on the way people collaborate and generally relate to each other.  That, in the end, is their real value to the business.

image Mr Wladawsky-Berger has a lot of experience with the business use of social networks from his long career as a senior executive at IBM. The company was one of the first to embrace blogging and social networks.

He discusses fears that businesses have regarding their employees broadcasting inappropriate comments. He points out:

"Employees already have access to social networks through their personal PCs and mobile devices, so they need not wait for corporate sanctioned channels should they wish to post inappropriate comments. Better to deal with the issue directly, by providing guidance to employees on the proper use of social networks."

Several years ago IBM put together an excellent guide for employees: IBM Social Computing Guidelines.

Another concern companies have with social networks in business, is losing control over their employees, "who now have tools that enable them to easily collaborate with colleagues and friends inside and outside the company."

But, “such individual and community empowerment is precisely the key value of social networks.”

Indeed.

[Editor’s Note: Cross-posted from Silicon Valley Watcher, edited slightly for context. –mrh]


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