New World Order actually refers to a conspiracy theory where world power lies in the hands of but a few. In fact, social technologies are shaping a new world in which the ability to communicate broadly and influence is available to a majority of all people (notwithstanding disparate wealth and power distribution otherwise).
“The Digital Disruption,” by Eric Schmidt and Jared Cohen, which appears in the November/December issue of Foreign Affairs, discusses the broad implications – the risks and the opportunities – that social technologies have for governments. Significantly, the article bears a striking resemblance to the story Business has been coping with for years.
To consider the magnitude of impact social technologies are having is astonishing: not only the world’s biggest businesses have been affected – the mightiest world governments are realizing that social technologies affect their ability to govern, to spread ideas, and even their legitimacy.
The story is the same: New communication technologies are empowering individuals unlike ever before. Anyone who can get online or has a mobile phone is connected to an enormous world network that can mobilize in real-time. This presents both a terrible threat and a tremendous opportunity.
Which does this apply to, government or business? To both, of course.
The difference between the two – and where governments have done far less – is that businesses have had to experiment with social media. Government has a distinct advantage over business in the fact that there isn’t exactly a lot of competition, and you could say its “customers” are locked-in. It’s not the same as business, where I can buy Nike if I don’t like Adidas. I’m not that likely to move to Canada or Europe, just because I don’t like something my government is doing.
Nevertheless, governments around the world are feeling the impact of citizen connections, as they organize in real-time and band together to weigh in on issues that matter to them. Governments must follow suit, to weigh in on subjects that will be discussed with or without them. As they do, there is an ever-growing pool of lessons available – the successes and failures of businesses.
Below, I’ve demonstrated a number of parallels between business and government with regard to social media, using quotes from Groundswell, Open Leadership, and the recent Foreign Affairs article when it comes to:
- Openness
- It’s Unstoppable
- It’s Irreversible
- Transparency
- Threats
- (Lack of) Regulation
- Benefits
- Adapt & Adopt
- It’s Not Really an Option
What does it ultimately mean? Governments will go through many of the same pains that businesses are now. Policy analysts take note.
Historical vs. Contemporary Openness
Consider the following quote: “People have always rebelled against institutional power, in social movements like labor unions and political revolutions. But the rough balance between the scale economies of institutions and the rebellion of their constituents has shifted because of the advent and spread of social technologies.” That could have easily appeared in Foreign Affairs article, but was in fact written by Charlene Li and Josh Bernoff in Groundswell, in early 2008.
In her most recent book, Open Leadership, Li refers to Samuel Huntington’s description of the “king’s dilemma.” She summarizes: “A forward-thinking king, who gives rights and freedom to serfs and makes them citizens, may end up abdicating his throne as these citizens agitate for more and more freedom over time. But a worse fate awaited those who clamped down on reform and repressed the populace; the pent-up demand for power, coupled with new ways for people to self-organize and communicate, led to an explosive reaction…”
And this quote from Groundswell could just as easily apply to governments and their citizens, rather than companies and employees: “Even inside companies, your employees are connecting on social networks, building ideas with online collaboration tools, and discussing the pros and cons of your policies and priorities.”
Unstoppable
The groundswell is broad, ever shifting, and ever growing. It encompasses blogs and wikis; podcasts and youtube; and consumers who rate products, buy and sell from each other, write their own news, and find their own deals. It’s global. It’s unstoppable. … And it’s utterly foreign to the powerful companies and institutions — and their leaderships — that run things now. (Groundswell)
Not even governments can stop, control, or spy on all sources of information all the time. (The Digital Disruption)
Irreversible
The phenomenon itself is based on people acting on their eternal desire to connect. It has created a permanent, long-lasting shift in the way the world works. (Groundswell)
Old solutions will not work in this new era. Governments will have to build new alliances that reflect the rise in citizen power and the changing nature of the state. (The Digital Disruption)
If you are among the many executives who long for the “good ol’ days” when rules and roles were clear, indulge yourself in that kind of thinking for just a few more minutes –then it’s time to get to work. This is a fad that will not fade, but only grow stronger, with or without you. (Open Leadership)
Transparency
Dealing with this dilemma will pose particular challenges for democratic nations that share common principles of openness and freedom. Their ideals will clash with well-founded concerns about national security. (The Digital Disruption)
This is not about total transparency and complete openness, whereby everyone from customers to competitors has access to all information and everyone is involved in all decisions. Such an unrealistic extreme of complete openness is untenable if a business is to sustain its competitive advantage and ability to execute. (Open Leadership)
Threats
In Groundswell, Li and Bernoff write: “Business and other institutions are built on control, and the groundswell weakens and undermines control.”
Schmidt and Cohen write: “Governments will be caught off-guard when large numbers of their citizens, armed with virtually nothing but cell phones, take part in mini-rebellions that challenge their authority.” (The Digital Disruption).
Business leaders are terrified about the power of social technologies, but they are also intrigued and excited about the opportunities. (Open Leadership)
Lack of Regulation
Schmidt and Cohen refer to “the wealth of platforms that allow individuals to consume, distribute, and create their own content without government control.” (The Digital Disruption)
Blogs, user-generated video, and podcasts aren’t regulated, so anything is possible. Unlike journalists, bloggers may sometimes mix fact and opinion, report rumors, and fail to disclose conflicts of interests. (Groundswell)
Benefits
[Leaders] know that greater transparency and authenticity can bring significant benefits to their organizations, yet they have a gut-wrenching fear that such an opening involves tremendous risk as well. (Open Leadership)
Democratic states must recognize that their citizens’ use of technology may be a more effective vehicle to promote the values of freedom, equality, and human rights globally than government-led initiatives. (The Digital Disruption)
Adoption
“As your customers and employees become more adept at using social and other emerging technologies, they will push you to be more open, urging you to let go in ways in which you may not be comfortable. Your natural inclination may be to fight this trend, to see it as a fad that you hope will fade and simply go away. It won’t.” (Open Leadership)
“Not all states will be able to control or embrace the empowerment of the individual.” (The Digital Disruption)
Engagement: The only option
Schmidt and Cohen write in Foreign Affairs, “In an era when the power of the individual and the group grows daily, those governments that ride the technological wave will clearly be best positioned to assert their influence and bring others into their orbits. And those that do not will find themselves at odds with their citizens.”
In Open Leadership, Li writes: “It seems counterintuitive, but the act of engaging with people, of accepting that they have the power, can actually put you in a position to counter negative behavior. In fact, it’s really the only chance you have of being able to influence the outcome.”
Businesses are currently paving the path of social innovation, learning from one another, and experiencing their own victories and defeats. As governments begin to go through similar processes, they should learn from what’s already been done.