Paper on Directing crowdsourcing, Sourcing and Social Media Leadership

8/6/2019 Paper on Directing crowdsourcing, Sourcing and Social Media Leadership

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ITSM

Directing Sourcing and Services

Frank WillemsProfessor of Business Network Direction, Hanze University Groningen Schoolof Computer Science and Centre of Applied Research and Innovation Entrepreneurship and partner at Twynstra Gudde


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Groningen, 27th April 2011


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The illiterate of the 21st century will not be those who cannot read andwrite, but those who cannot learn, relearn, and unlearn.

Alvin Toffler

Imagination is more important than knowledge. For knowledge is limited."

Albert Einstein


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Directing business networks

In this age, the internet age, new and interesting connectionsbetween people and organisations are emerging. This requiresdirective leadership. The change process is well underway and manyprofessionals are looking for answers within that process. The

Business Network Direction professorship is developing knowledgeabout direction, and finding new ways of applying it, interweavingresearch, education and business.

A nice example that illustrates these interesting connections and the quest

for answers is the Wikipilot project we are conducting at Hanze University

Groningen in conjunction with Datema. Datema is a market leader in the

distribution of nautical safety solutions, charts and supporting publications for

the shipping industry.

This nautical information is crucially important when manning a sea-going

vessel, to ensure a safe voyage, and it must also be updated as quickly aspossible in the event of any changes. Since the quality of the information

must comply with extremely high standards, it has to be verified by official

bodies. This is often a slow process, and as a result it can sometimes take

months for crucial updates to charts to be ready.

A concept was developed to enable users to generate nautical information

themselves and share it through a process known in business as

crowdsourcing. Crowdsourcing is an innovative sourcing solution that allows

you to resolve knowledge and capacity issues quickly and extremely

effectively. At the same time, there is a need for better and more effective

communication in maritime circles. Social networks like Hyves, Facebook and

Twitter are still not sufficiently utilised at sea, and this is mainly due to

shortcomings in communication technology.

So a plan was devised to set up a nautical data centre and a social

community for professional maritime use, with the emphasis on safety at sea.

Building up a large group of users, in order to supply the nautical data centre

with sufficient information and to guarantee that it is kept as up to date as

possible, is crucially important for this project. Of course, using open, high-

quality, recognised standards are essential too.

At the moment we are working on this project with forty students from three

Hanze University Groningen schools, Datema development teams, and

managers and researchers from the university, with support from Syntens

and a community of seafarers as our sounding board. Both the technology

and the community are being created in parallel, using an open source

approach and the very latest development methodologies, all in a short


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space of time. At the end of 2010 the first prototype applications will be

ready, and we will be able to begin introducing them.

This is an innovation that brings together people and technology, and is

directed by an educational institution, businesses and users. Social

innovation principles are being used for societal purposes, and with mutualinteraction. This crowdsourcing project is generating a great deal of curiosity,

commitment and enthusiasm among the participants. The vision for the

future has already become reality.

Direction in the Dutch transaction economy

The Dutch economy is increasingly becoming a transaction economy. Firstly,much of the prosperity in the world is due to specialisation and division ofwork, both of which have accelerated, partly because of internet andtechnology usage. More specialisation and division of work also means moretransactions, which need to be coordinated. In our globalised world, the costs

and the activities this entails, the transaction costs and the direction, arebecoming ever more significant. Direction is essential for optimising thetransaction costs on the one hand, and making best use of the advantages ofspecialisation and division of work on the other.

Shifting production locations creates the need for directionIn our country, employment opportunities in agriculture and industry havebeen falling for many years, while at the same time there has been a trendincrease in employment opportunities in trade and service provision1. Thistrend can be attributed to the rise in division of work and specialisation, bothin our own economy and in the world as a whole2. Thanks to the opportunitiesthe internet offers us in terms of knowledge sharing, innovation and

connections, this trend has accelerated exponentially since the turn of the21st century. To a greater extent than ever before, it is possible to achieveeconomies of scale and make use of the diversity of the offer and theavailability of sources for the production or composition of goods andservices. And we have been aware of the effect for many years: productionfacilities are located in the (relatively) cheapest places. The availability of rawmaterials and the presence of capital both physical capital goods andhuman capital are determining factors when choosing the town or countryin which to locate production and processing facilities. For knowledge-intensive goods, products and services, some interesting developments arenow emerging, such as crowdsourcing, open innovation and co-creation; withthese forms of sourcing, the variety and the offer are unlimited because the

related transaction costs can be kept down. These developments are alsomaking a strong impact on the production and processing of physical capitalgoods, and require high-quality direction.

Funnily enough, we in the Netherlands can fall back on the directive skills wehave perfected as a trading nation since the Golden Age, or perhaps evenbefore that era. We need the positive aspects of the Dutch East IndiaCompany mentality, but could well be tripped up by the negative aspects.


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The Chinese were aware of these as early as the 17th century. Researchconducted by Kees Zandvliet, a curator at the Rijksmuseum, shows that theChinese regarded the Dutch as greedy and cunning. And that we knew a lotabout expensive commodities and were clever in the way we strove to get agood deal.

According to the Chinese3: "They will even put their lives on the line to makea profit, and nowhere is too far for them to go. These people are also verycapable and resourceful, they make sails like spiders' webs which can turn inall directions to catch the wind, so the wind is with them wherever they go."It is inevitable that the past will catch up with us as we look to the future, andour sense that much of our affluence is down to this could bring prosperity toour country in the future as well4. If we focus on direction in research,education and entrepreneurship, we will secure a part of this future.

Directing

Not long ago, the word "direction" would bring to mind the idea of directing a

music video or film. And a good parallel can be drawn from the film anddirectors' training handbook: "the director runs the show in terms of all thingscreative and anything to do with content, and ensures that the productionprocess runs smoothly. The director is involved in all creative and content-related decisions. The production process consists of three phases: pre-production, production and post-production5. Direction is all aboutconnecting supply and demand, and the ability to translate content into thedesired solution is essential. Direction also requires creativity in theexecution phase.

Directing refers to an activity within an organisation, or to an enterprise thatdirectly or indirectly earns a large proportion of its profits by orchestratingthe various transactions in a chain or sector.

At the front of the chain or sector, the director has the skills to translatedemand from a buyer or client into specifications and requirements for thecapital goods or services, and therefore sources, that need to be acquired. Inbusiness this is known as demand management.

At the other end of the chain or sector, the director has the skills to acquirethe necessary sources, manage the suppliers and partners, and control thesources delivered. In business this is known as 'supply management'.

The art of direction is to achieve the right match between supply anddemand.

Many people's experience is that, when demand management is introducedand applied, the ICT industry often takes over from the business and theclient. And when supply management is implemented for handling tenders, incapacity acquisition, sometimes organisations go too far, with unpleasantconsequences in the form of unsuccessful projects and tenders. There isperhaps a nice parallel to be drawn here with our experiences in the Golden


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Age. Fortunately the world of purchasing is also becoming increasingly relianton demand management6 and we are seeing the first signs of a generalintroduction of direction activities.

The enneahedron as a tool for organising directionA proven tool for organising direction activities is the Amsterdam Information

Management Model - the enneahedron developed by Professor Rik Maes7.See figure 1.

In the left-hand column the business activities are carried out throughactivities involving alignment (strategy development), organisation(designing and planning business activities) and performance (ensuring thatthe core activities are carried out).

The right-hand column is concerned with the development, implementationand execution of the services, acquired from the capital goods, which supportthe business. For acquiring the sources in this service column, people areincreasingly seeking alternative solutions, such as outsourcing, in-house

procurement, cooperative working and shared services.


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Direction has three process chainsIt is clear that direction is positioned in the middle column between businessand service, ie between demand and supply. Direction has three processchains8:- Coordinating innovations and commencing projects: supporting the

business in its need for new applications and the search for alternative

solutions in the acquisition of sources. If this leads to new services, aproject will be commenced to develop them.

- Managing changes and projects: anticipating the business's need forchanges to the deployment of capital goods and services and thusadapting well to the capacity required. An important activity within this ishaving an overview, so that in the event of scarce capacity, when changesand projects are underway, the trade-off choices can be made, prioritiescan be established and the selection and implementation can be carriedout.

- Coordinating the delivery of services and service continuity: ensuring thatthe services acquired are sufficient and remain sufficient for the needs ofthe business.

In the figure below, the enneahedron has been adapted to show theapplication of direction activities.


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Figure 1: The enneahedron with the addition of process chains in thedirecting organisation and direction tasks

With direction, the skills of the directors are also a factorOrganisation is an important step, because in the execution of chain activitiesand transactions there is a high risk of error. In addition to organisation, the

professionals charged with carrying out direction tasks must have thenecessary skills. I am deliberately emphasising skills here, because in thebusiness world I have observed that when companies set up directingorganisations they mostly focus on establishing processes, tasks andresponsibilities. They seem to forget that for direction to be effective, it isprincipally the leadership skills of the directors, when they conduct theirdirection activities, which generate the anticipated end result and make it asuccess. I will come back to the change issue and the leadershipdevelopment required later.

CMMI: a quality framework for directionMoreover, the quality of the direction activities are extremely important. How

do know whether you are conducting the right direction activities, andwhether you are conducting them effectively? There is a practical, recognisedappraisal framework for this, called the CMMI (Capability Maturity ModelIntegration)9. Having worked on the Kwintes project10, I was closely involvedin improving the CMMI model, turning it from a development and projectmanagement model into a model that is also suitable for delivering servicesand conducting direction activities.

The CMMI for Acquisition model is extremely useful for direction. Thisappraisal framework gives five maturity levels to describe the status of adirecting organisation and its processes. The lowest level, CMMI level 1,denotes an organisation entirely devoid of a controlled direction process. AtCMMI level 2 the activities implemented adhere to guidelines and are plannedand executed in a controlled manner. At CMMI level 3 the direction activitiesare standardised and the professionals conducting the direction activitieshave the required competencies. At CMMI level 4, quality is optimised andperformance is continuously improved. And at the highest level, CMMI level 5,the direction processes are optimally established and the professionals arecapable of supporting other players in the chain in making improvements andchanges to the chain11.

Direction involves five primary tasksIn a CMMI for Acquisition cluster, there are the following five primarydirection tasks:1. Account and portfolio management: ensuring that, at strategic level, you

know what the business and the client want and can translate that intopotential solutions. For this task it is important to have clear frameworkswithin which these solutions are sought. When do we make it ourselves,should we buy it or should we work with other people or organisations?

2. Cooperative working and project leadership: ensuring that there is a goodrelationship with the delivery entity and that the necessary conditions forconducting the projects are met.


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3. Sourcing management: the core of the sourcing activities, which involvesmaking everything run smoothly, planning and ensuring that there is anoverview of the need and utilisation of capacity. Also supporting thesupplier and partner selection process, and making a substantialcontribution to purchasing in the acquisition of capital goods and services.

4. Demand management: determining, at operational level, whether the

demand, requirements and wishes of the recipients are in line with what isbeing supplied. For knowledge-intensive products and services this alsomeans making a substantial contribution to the demand specification.

5. Supply management: directing suppliers and partners at operational leveland verifying that the quality of the supplies fulfils the specifiedrequirements. Contract and supplier management are key constituentactivities.

At present in the Netherlands, many organisations are working onprofessionalising their direction and service activities, and it is true to say ofmost organisations that they are somewhere around CMMI level 2. Tooptimise the functioning of a transaction chain, these activities and

professionals need to be at CMMI level 3 at least. There is still much work tobe done.

Sourcing

In summary, without sourcing there is no immediate need for direction.Direction means matching supply with demand, while sourcing meansensuring that the required capacity is procured in the right way. Therefore,sourcing and direction are closely linked.

Sourcing is: organising potential supply sources; ensuring the continuity ofthe supply; seeking out alternative supply sources; and keeping thenecessary knowledge for acquiring sources, and knowledge of the market, upto date. Sourcing also involves identifying the best possible suppliers andpartners and assigning the required volumes to these suppliers andpartners12

The Kraljic Matrix as a tool for segmenting products and services whensourcing choices are madeBy far the most commonly used portfolio model for segmenting suppliers,services and markets is the Kraljic product portfolio matrix13. In business, thematrix is applied during the sourcing decision process to establish how theproducts and services are segmented and how they should be developed in

the future. The positioning of the client in respect of the suppliers' marketalso plays a role in this. The matrix can also be used to determine the bestway to maintain relationships with suppliers and partners.

Kraljic identifies four different quadrants with accompanying methods fordealing with suppliers or partners:- Routine: products in this group normal products can be easily sourced

from many different suppliers and have a low unit value. Examples ofthese products are standard services such as telephony, catering,


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cleaning and ICT workstations. Generally, these are bought for the lowestpossible price.

- Leverage: with products that are oftenprofit enhancing, the lowest price isno longer the most important concern. The smooth running of theproduction process and the connection with the purchaser's business areregarded as more important. Products and services in this category may

include ERP software, relocation projects, payroll administration, databasemanagement and archive management.

- Bottleneck: products and services in this group merit extra attentionbecause they are difficult to obtain. Causes may be a monopolist in themarket or a structural scarcity of the products or services. Therelationship with these suppliers is focused on the long term and onmutual trust.

- Strategic: for the development and supply of these products and services,in-depth partnership arrangements are made. Products and services inthis group represent a substantial proportion of the cost price of the endproduct and are sourced from a single supplier with whom a strategicrelationship is maintained. The mobilisation of creative forms of sourcing

such as co-creation and crowdsourcing is also segmented in this quadrantdue to the knowledge-intensive relationship with the participants.

Figure 2 shows an example of an applied Kraljic matrix for the segmentationof services. The size of the each bubble signifies the volume of the products.When combined with good analysis, the Kraljic matrix provides effectivesupport when planning and making decisions about possible sourcingvariants.

Figure 2: Kraljic matrix with example of segmentation of services

Four generations of sourcing solutions: the first generation


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Sourcing has been around for a very long time, particularly the traditionalsourcing solutions such as outsourcing, commodity purchasing, engagingexternal parties and European tendering. You could call these the firstgeneration of sourcing solutions. The capacity and services for this sourcinggeneration are generally found in the routine Kraljic quadrant.

The first generation laid an important foundation for the further development

of sourcing solutions. As a result of the experience gained, clients havebecome more aware of how to approach capacity sourcing. They are nowmore able to manage suppliers, and specify what they want and how theywant it. They are therefore in a better position to make good, realistic dealswith suppliers. These deals are more specific about what should be deliveredin terms of quality, innovation and service orientation. The GiarteOutsourcing Performance Study of October 2010 showed that the perceivedquality of traditional ICT sourcing solutions is rising slowly but surely. After aperiod of dissatisfaction, some stability is starting to emerge, which isextremely important as a foundation for the further development of theservices14.

The second generation of sourcing is characterised by a deepening of theclient/supplier relationshipAs a result of the further development of the products and services, andexperiences of the first generation of sourcing solutions, the need arose foranother type of sourcing solutions. This is how the second generation ofsourcing came into being. This second generation involves activities such asthe purchase of administrative services, like salary and payrolladministration, the purchase and integration of call centres and helpdesks,the introduction of new workplace concepts, and the provision of completearchitecture solutions and security solutions. Cloud computing and hostingcan be classified as second generation sourcing solutions and are currentlymuch in demand. The hallmark of this generation of sourcing solutions is thatthe relationship between client and supplier is more oriented towards theadded value that can be offered, as opposed to when a standard service issimply purchased by the client. A good relationship, trust and clearcommunication between both parties are therefore essential.

The third generation of sourcing is the ultimate partnershipIn addition to the second generation of sourcing just described, we are alsoseeing a third generation of sourcing gaining influence. This third generationof sourcing involves services that are less standard, where the client andsupplier work together, more like partners, instead of adhering to thetraditional client/supplier relationship. For instance, an organisation may havean idea with strong market potential, but may not have the specificknowledge in-house to develop the product by itself and bring it to market. Ifthis is the case, with the third generation of sourcing, a strategic partnershipis entered into with a supplier, so that both parties can develop the newproduct together and share the necessary capacity. Then they bring theproduct to market together. Within this third generation of sourcing, a widevariety of initiatives are already underway. A high-profile initiative within thisthird generation of sourcing is the formation of Shared Service Centres ascooperative ventures. A nice example of this is the Zuidwest Frysln ICT


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Cooperative Venture (ISZF): the ISFZ has successfully taken overresponsibility for ICT issues from the municipalities, fire brigades and inter-municipal social services. This cooperative partnership between thesemunicipalities has resulted in uniformity in terms of workplace management,standardisation of core applications and a single ICT purchasing organisation.

The nice thing about this solution is that it developed out of a lack of

personnel and a need to find solutions, but, instead of merely relying onoutsourcing, other forms of organisation were investigated. There are otherexamples of these sorts of initiatives, and in the coming years business andgovernment will be adopting more of these kinds of third generation sourcingsolutions15.

Through my consultancy group, within Twynstra Gudde, we bundled togetherour practical experiences of making decisions about possible sourcingsolutions and created a decision tree. This decision tree, in figure 3, isfrequently used as an initial checklist for exploring opportunities.

Figure 3: Decision tree for the adoption of sourcing solutions

The fourth generation of sourcing: unlimited connections between peopleThe characteristic feature of the fourth generation of sourcing is that, toobtain capacity and services with the aid of internet technology, relationshipsare forged between people and, to a lesser extent, organisations. The modernapplication of this technology, such as social media, community portals,


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Figure 5: Boschma and Groen generational research findings

I often hear that working with internet communities and social media is moresomething that the young people of generation Y/Einstein do. This is logical,

because they have grown up with computers and learn from primary schoolonwards to evaluate each other in groups. However, for the older generationsof the population, it is much more unusual to work in groups and shareeverything over the internet. Network formation and communitydevelopment is taking off more and more among the baby boomergeneration and generation X, but to a large extent is being prompted byinitiatives from generation Einstein and the trendsetters in generation X. Atpresent, the formation of these networks is still dominated by a quest foridentity, leadership and personality. Enthusiasm is an important motive in allof this. Authenticity, transparency,facilitative leadership, attentiveness, trustand cooperative working are the hallmarks of an organisation geared towardsnetworks and cooperative working18.

Marketing and leadership guru Seth Godin calls this our quest for somethingto believe in. Trendsetters who adopt social media find that it is very easy tocreate genuine connections between people and infinitely possible to supporteach other. We live in a world where we have the leverage to make thingshappen, the desire to do work we believe in, and a marketplace that isbegging us to be remarkable19.


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Networks and communities are emerging almost by themselvesAs we are witnessing a development which involves three generations of thepopulation encouraging each other to form communities using thepossibilities offered by the internet, and at the same time seeing adevelopment centred around identity, leadership and personality engaging

many people, it is inevitable that networks and communities will form almostby themselves.

This is not really a new concept: Roberto Assagioli, the founder ofpsychosynthesis, wrote in around 1930 about the 'Solidarity Principle and the'Law of Group Endeavour'.His argument at the time was: "As a result of the development process of ourcivilisation we are learning that, for our planet to survive, we must takeresponsibility upon ourselves to be one humanity. And to be true participantsin the one life, in harmony with all the riches of nature (mineral, plant,animal, human, and so on) as they manifest themselves in their countlessforms. The same is true of group endeavour the need, in our modern world

with its huge population and conflicting desires, to work together instead ofcompeting, to strive for the good of the whole instead of personaldominance20.

And back then the internet did not yet exist. Now it is possible for us toaccess everything and everyone, easily, from anywhere in the world and fornot much money, via the internet. People and groups can organisethemselves differently, and that is what is happening. And the boundaries oforganisations are constantly being exceeded. Excellent trends are beingcreated for this reason and many people are sources of inspiration orpioneers. I think the nice thing is that it is just happening organically, andthat it is predominantly a collective movement with generation Einsteininspiring us, by showing us how simple it can be.

Crowdsourcing as an effective sourcing solutionCrowdsourcing is an English neologism, used to denote a development thatfirst began in 2005, whereby organisations (government, businesses orinstitutions) or people make use of a large group of individuals who are notspecified in advance (professionals, volunteers and interested parties) forconsultancy, innovation, policy making, the sharing of knowledge andexperience, and research.

Although crowdsourcing does not necessarily have to be done over theinternet, this is the most commonly used method. The crowdsourcingphilosophy was first introduced at the turn of the 21st century with JamesSurowiecki's book The Wisdom of Crowds. The term 'crowdsourcing' was usedfor the first time in 2006 by Jeff Howe, a portmanteau of the words 'crowd'and 'sourcing21. Crowdsourcing is a fourth generation sourcing solution parexcellence, allowing you to resolve knowledge and capacity issues quicklyand extremely effectively. In addition to crowdsourcing, other forms ofsourcing solutions, like co-creation and open innovation, are appearing. Theyhave much in common with crowdsourcing in terms of their principles and


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solutions, will generate some big surprises and completely break away fromexisting patterns.

Deployment of social media is crucial and makes it fun and excitingSocial media are online platforms where users provide the content with no orlittle interference from professional editors. There is also mutual interaction

and dialogue between the users. Social media sites such as Hyves, Facebook,YouTube, Twitter and LinkedIn have millions of users and it is impossible toimagine life without them now as communication tools between people. Sinceit is the users themselves who are contributing, this is also becoming thebiggest data gathering process in the world. In fact you could say that it isthe most dynamic knowledge gathering exercise in the world. Which makes itextremely interesting as a source of data, because analyses make it possibleto establish what people are doing, which trends are important and hip, andwhat the real news is.

I often hear people say that so much useless information, and evennonsense, is shared within social media communities. My answer is this: it is

evidence of what many people are experiencing in their lives, because it is arepresentation of what people in our world are doing. The most importantthing is knowing how to get what you need out of it and adding in informationthat other people can use. If you know what you are looking for and searchproperly, you get what you want. And that requires a little practice andpatience. Begin by observing what is happening and try to discover how youcan make your own contribution by adopting social media. Allow yourself tobe inspired and follow the people you like. Then it will happen almostnaturally.

The highly reputed research and analysis agency Gartner provides annualforecasts about developments in ICT. They indicate the following trends forsocial media:

- Blogging, a type of internet service enabling users to publish short textor multimedia fragments on the internet, is mature and accepted as a toolfor improving productivity.- Social software platforms and mobile social networks are at the end ofthe hype phase and will initially cause some disillusionment before beingfully adopted.- Many technologies and solutions will be developed, which will allowanalyses of social media and networks to be conducted.- Privacy and personal safety solutions are still at the developmentstage, but they are on the way, and absolutely essential.- The solutions that will be deployed in the long term are unifiedcommunications (voice calls and cooperative working via the internet),open social software standards and idea generators via crowdsourcing.- Crowdsourcing is about to break through.


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power, and therefore leadership, so is capable of carrying through thesourcing issue to a successful conclusion. Developments in theprofessionalisation of direction are still at a fairly early stage, particularlywith the fourth generation of sourcing solutions.

I am convinced that all four sourcing generations can learn a lot from one

another and will even find support when the professionalisation of thedirective capability is generally established.

For all four sourcing generations, everything starts with leadership. Andthere are many theories and visions of leadership. My inspiring colleague,Professor Leon de Caluw, in his fascinating new book, MensenVeranderen (Changing People), takes a look at leadership22. Roughlyspeaking, leadership is characterised by the following behaviours.Leaders:- have a vision and are able to formulate goals and tasks in an idealistic

way;- have immense self-belief and rocksolid confidence;- set high standards, both for themselves and their colleagues,

demonstrate authority and have self-discipline;- are very good communicators and are able to empower colleagues.

They behave in a motivational and emotional way, which makescolleagues perform better;

- are highly perceptive, good listeners and good speakers.

These behaviours are vital in an environment which requires professionaldirection. Based on the Groundswell research into social communities andopen leadership23, and my own experience of leadership in communities, Imyself would like to add a number of behaviours specific to direction.Leaders:- are capable of learning, make mistakes, and, on the basis of feedback,

are able to improve and change;- bring together people and opportunities via communities, through

fourth generation sourcing with the use of social media and othersourcing generations via cooperative working relationships;

- are enthusiastic and able to share their passion with a peer group.

It looks good on paper as a list, but how do you do it in practice? And canyou develop these behaviours, or do you have to be born with them?

There are no cut and dried answers to these questions, particularlybecause there will be situational differences in direction when each of thefour sourcing generations are applied. The Business Network Directionprofessorship will be researching this over the coming years, preferably inpartnership with you.

Before that begins, I can already name a few success factors for directingbusiness networks well, on the basis of a number of projects and practicalresearch I have conducted.- Never forget that this is all about working with people. Approach the

professionalisation and organisation of direction using change


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management principles and realise that dynamism always rocks theboat. For support on this subject, look into the leadership behaviours Imentioned earlier.

- Aim to establish the qualitative level for the professionalisation ofdirection at CMMI for Acquisition level 3. Instituting and working withCMMI level 3 activities, such as standards compliance, integral

capacity planning, integrated project management, integral riskmanagement and the development of professionals and theorganisation, all require a high level of leadership, practical experienceand the right mentality. The three process chains are applied here too more visibly for the first, second and third generations, and more asguidance for the fourth generation.

- Ensure that supply and demand are tightly connected. They mustdevelop until they are at a comparable level of professionalism. Themost difficult part of this is professionalising the demand side: peopleoften do not know exactly what they want and how to get it. Directionshould lend a helping hand here and, together with the demand side,accelerate the professionalisation. Generally, the supply side

professionalises itself, due to the increasing quality standards in themarket.

- Set up a network of professionals, support, businesspeople,participants and followers. If you use social media, social networks andtraditional networks to help you, anyone you need can be found andconnected with in just six steps24.

- Utilise talent and the wisdom of the crowd with the aid of networks.Experiment with social media and ensure that you focus firmly on yourown enthusiasm and peer group25.

- Experience and examine what happens, evaluate, improve andpersevere. Also make sure you enjoy yourself!

As a result, a professional atmosphere and working method will emerge,which will lead to an important change. After all, direction forces you totrade vertical management for horizontal management (leadership)26. Andif you can apply these principles correctly, the opportunities andsuccesses are unlimited.

Conclusion and final message

Due to the Dutch economy turning into a transaction economy, the use of

internet technology within it, and the growth of social communities, the need

has arisen for directive capabilities. Sourcing supports this by correctlydeploying the capacity needed. Direction and sourcing are very closely linked

and are applicable to both traditional sourcing solutions and the most modern

solutions, such as crowdsourcing and social media. It is essential that the

quality of the direction and the competencies of the professionals are

mobilised, with the aim of attaining CMMI level 3 at least. In all of this, the

role of direction is to be the link between supply and demand. And to achieve

this, directive leadership is a key success factor.


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Sources


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1 Centraal Bureau voor de Statistiek, cijfers landbouw, industrie, handel en dienstverlening, www.cbs.nl

2 Prof. Dr. Frank den Butter, Transactiemanagement, Sleutelcompetentie voor Nederland bij een regierol in de globalisering,

Stichting Maatschappij en Onderneming, March 2008

3 Kees Zandvliet e.a., De Nederlandse Ontmoetingen met Azi 1600-1950, Rijksmuseum Amsterdam, 2002

4 Prof. Dr. Frank den Butter, Nederland als transactie-economie: regievoering en handel hebben de toekomst, Haarlemse

voordrachten LXVII, May 2007

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6 Gerco Rietveld, Inkoop een nieuw paradigma, May 2009

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http://primavera.fee.uva.nl/

8 Frank Willems, Het inrichten van regie vraagt om een veranderaanpak, Handboek regie op uitbestedingsrelaties, Platform

Outsourcing Nederland, 2008

9

CMMI Open standaard en toetskader voor ontwikkelprojecten, regie en dienstverlening, Carnegie Mellon University,http://www.sei.cmu.edu/cmmi/

10 Dr. Frank Niessink e.a., IT Service CMM a pocket guide, 2004

11 Jan Jaap Cannegieter e.a., De kleine CMMi voor acquisitie, 2009

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13 Peter Kraljic, Purchasing must become Supply Management, Harvard Business Review, 1983

14 Marco Gianotten e.a, Outsourcing Performance 2011 Outlook Strategy Research, Giarte Media Group 2010

15

Frank Willems e.a, Outsourcingsdeal of outsourcingsrelatie, Outsource Magazine Jaarboek 2009

16 Don Tapscott, Macro Wikinomics, Rebooting the business and the World, 2010

17 Jeroen Boschma and Inez Groen, Generatie Einstein, communiceren met jongeren in de 21e eeuw, 2006

18 Menno Lanting, Connekt, de impact van social netwerken op organisaties en leiderschap, 2010

19 Seth Godin, Tribes, jij moet ons leiden, 2008

20 Roberto Assagioli, Psychosynthesis: A Collection of Basic Writings (with thanks to Petra Moes for her translations and

inspiration), http://www.spacebetween.us

21

Jeff Howe, Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business, 2009

22 Prof. Dr. Leon de Caluw et al, Mensen veranderen: waarom, wanneer en hoe mensen (niet) veranderen, 2010

23 Charlene Li and Josh Bernoff , Groundswell, winning in a World transformed by social technologies, 2008 and Charlene

Li, Open Leadership, how social technology can transform the way you lead, 2010

24 Duncan Watts, Six Degrees, the Science of a Connected Age, 2004

25 Martijn Aslander, Erwin Witteveen, Easycratie, de toekomst van werken en organiseren, 2010


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26 Dr. Adriaan Bekman, Horizontaal leiderschap, onderzoek naar leiderschap in organisaties, 2009

Documents

Paper on Directing crowdsourcing, Sourcing and Social Media Leadership