INSEAD: What inspired you to write this book? Matthew Fraser & Soumitra Dutta: We were brainstorming about a possible theme for a book project, and we focused early on exploring the phenomenon of the 'social life of corporations'. It was a perfect topic because it called on our different areas of expertise – Matthew in media industries

INSEAD: The title is interesting and whimsical. How did you come up with it?

MF&SD: We discussed possible titles in the project's early stages and decided to take inspiration from the analysis itself. We began with the notion of a 'clash' or 'tension' between the vertical structures of corporate bureaucracies and the horizontal dynamics of social networks. We came up with an image from both worlds and merged them. From the corporate world, it was easy - the boardroom. From the world of online social networking, we took a sampling of some of the things that Facebook members do online – poking, throwing sheep, vampire biting, and so on. We decided that 'throwing sheep' was the best image. Hence the title, bringing the two worlds together - Throwing Sheep in the Boardroom.

INSEAD: What kind of audience will your book appeal to?

MF&SD: From the outset, we decided that we were going to write a book for a general audience – or what we defined as 'educated citizens'. Some 600 million people worldwide use online social networks – nearly half of that number on Facebook, MySpace, and LinkedIn. It didn't take great powers of insight to understand that most of those people are not PhDs in computer science or MBAs. So we decided to take an approach that was more inclusive than exclusive – the book is not an 'ivory tower' academic book, it's aimed at a wide audience. It's for anybody who is interested in online social networking, business strategy, organisational behaviour, pop culture, economics and politics. It could be read by a 19-year-old university student as well as a 60-year-old CEO of a Fortune 500 company. We have written it so that both would benefit from the ideas in the book.

INSEAD: From research carried out for your book, can you highlight one true story that depicts the strengths and influences of social networking?

MF&SD: A recent example comes from the financial crisis. Suddenly, a lot of people are anxious about their career situations – and they are rushing onto social networking sites such as LinkedIn to reinvigorate their social capital. LinkedIn has reported soaring membership levels since the economic collapse. In the old days, people 'activated' their network to job search by making calls and taking people out to lunch. Recruiters and headhunters are also actively using Web 2.0 platforms such as Facebook and LinkedIn. Our book features an entire chapter devoted to the 'strength of weak ties' that analyses this phenomenon.

INSEAD: How is social networking transforming the dynamics of business models, organisational behaviour and civic participation?

MF&SD: We have a powerful example with Barack Obama of how Web 2.0 social platforms are being harnessed politically. Obama won the presidential election online. It took his rivals Hillary Clinton and John McCain a long time to figure it out, but Obama's campaign momentum started on Facebook, YouTube and sites like BlackPlanet. He also used mobile messaging and podcasting very effectively. The 'Yes We Can' video wasn't an official Obama campaign ad – it was posted on YouTube where it received massive viral distribution and was seen by millions of Americans. It transformed Obama into an MTV-style pop star, especially with young voters. And it was the youth vote that made the difference on election day - Obama captured 70%.

INSEAD: What can senior managers gain from understanding the dynamics of the Web 2.0 and social networking sites?

MF&SD: The challenge for senior managers is to get over what we call the 'fear factor' and tune out the naysayers in their organisations who are resisting Web 2.0 tools at the workplace because they feel threatened by them. When open, networked communications enter corporate bureaucracies – especially on blogs and wikis – a lot of people feel threatened because they have been in gatekeeper positions controlling information. They don't like open communication. But harnessing the benefits of 'collective intelligence' can, when managed well, boost morale, increase productivity, stimulate innovation, and even enhance over financial performance. There is an 'ROI' (return on investment) case for Web 2.0 tools if they are leveraged intelligently. What we are seeing now is a powerful resistance within organisations because people with entrenched power feel threatened.

INSEAD: Are any businesses actively using social networking sites in their organisational structures?

MF&SD: Yes, many, not surprisingly big high-tech and computer firms like IBM and Cisco are on the leading edge. But companies in manufacturing like General Motors are using platforms like blogs. There are also many examples of companies using Web 2.0 to consult and collaborate with their customers. This is transforming the dynamics of research and development (R&D) and innovation. Innovation is becoming 'open'. Proctor & Gamble is one good example. So is the pharmaceutical industry. R&D departments are no longer internal corporate units – they are open-ended networks that extend into a company's customer base and into society in general. Companies can no longer assume that the smartest people are working inside their corporate walls.

INSEAD: What advice would you give to senior managers who wish to integrate social networking into their organisational structures?

MF&SD: First, get over the fear factor, but also establish guidelines. The key is to loosen control without losing control. Second, allow your employees and customers to participate in setting the corporate agenda. This requires not only 'giving up' some control but also educating and channelling the energy of (potentially) thousands of eager individuals who wish to contribute and be part of the organisation's action agenda. Finally, embrace the phenomenon and be open to learning and experimentation. You cannot hide from it – you have to learn how to leverage it smartly. There will not always be clear answers and sometimes you will have to significantly transform your business models. But you need to have the courage to move ahead and not shy away from it.

INSEAD: What do you predict will happen to social networking sites in say ten years from now?

MF&SD: It's possible that what we now call Web 2.0 tools will simply be a normal way of running a company and doing business. We are very early in the process. The term 'Web 2.0' was coined only four or five years ago, and most of the sites like Facebook are only a few years old. The Web 2.0 e-ruption is not over, and it will produce winners and losers. One of the key changes that we shall see will be the redefinition of the role of customers and citizens at large in defining the agenda of global business. The financial crisis that has enveloped global economies in recent months has motivated governments and societies to take a more active part in how businesses are run and managed. This trend will get accentuated further with Web 2.0 tools, which empower citizens and increase their ability to participate in the action agenda of corporations and governments.

INSEAD: How does Second Life (SL) fit into the social networking framework?

MF&SD: SL has received a lot of mainstream media attention which has been a mixed blessing because both its virtues and vices have come into sharp focus. It can be credited with pioneering the 'virtual' space, especially with avatars. A number of major companies like IBM are active on SL and it has become an effective education tool. MBA schools like INSEAD, for example, have a presence on Second Life. You can also go there to obtain health information. It offers many positive benefits. On the downside, it has been plagued with bad optics due to its association with sexual tourism, gambling, and financial defalcations that led to the collapse of its banking system. In many ways, it is still climbing out of that disaster. In the meantime, other virtual worlds are emerging. Google has one called Lively, and of course there is Cyworld in South Korea, not to mention all the gaming worlds such as World of Warcraft.

INSEAD: Will social networking be integrated into any courses at INSEAD?

MF&SD:  Elements of the social networking theme are embedded in selective courses at INSEAD. However, we are in the process of creating a dedicated course on the subject and are preparing a set of case studies on the overall themes covered in our book. If members of the alumni community have any interesting stories or case studies related to social networking within their organisational or social contexts, we would be very happy to hear from them. This would provide another interesting avenue for collaboration between INSEAD faculty and alumni. We are also happy to come and speak about our research to alumni groups around the world – just contact us!