Since FG SQUARED is sponsoring the Interactive Austin 2008 forum to bring together Central Texas area professionals well-versed in the application of social media and interactive services to business purposes, I was fascinated by an article that I read recently in Web 2.0 boot camp. The title was “Why traditionally minded execs need a little basic training to conquer their mistrust of social networking and document sharing.” It sited the logistical advantages of social networks to get colleagues, employees and customers in touch. The article also acknowledged that Wikis as the answer to eliminating the long hours in email distributions.

With such obvious advantages, why is it that companies seem to freeze before they adopt these low-cost social media tools. The learning curve on such tools is simply not that great … so why the hold up?

The article speculates on the mistrust of senior executives and that it may arise from the roots of social media – many of the tools were developed originally as “fun stuff” and now are being touted as business tools. The roots of social media may create a some disbelief with business professionals as to whether these clever tools are actually suitable for serious business purposes.

The article also pegs an even bigger concern. – the fear factor that Kathleen Gilroy, a Web 2.0 consultant with the Otter Group in Cambridge, MA, describes. Social media threatens the standard hierarchy structures in business. It has a flattening effect on organizations that engage. No longer is the information reserved just for those in the “pup tent”- but for a much larger group in the organization.

Understandably, many executives are afraid to give up control and to give everyone a voice. The new organizational structure (that results from the application of social media within an organization) and its effectiveness in communications are often unknown to many of executives at this point in time. There are concerns that inaccurate information will slip out online.

However, executive fear and procrastination will not necessarily stop the social media wave. Dion Hinchcliffe, president and CTO of Hinchcliffe & Co. with a track record training over 4,000 executives globally, has worked with many executives who decide to embrace social media corporate-wide – only to find that many of their departments were already using many of the Web 2.0 tools.

With more content now being produced through social media than traditional media, it seems clear that the social media wave is cresting and that companies need to prepare for the wake. Corporations need to find management approaches that create checks and balances to control the distribution of corporate information. Brand consistency is also crucial. Companies have to address these issues and challenges and then balance the additional work involved in the transition with the additional exposure available by going global and social online.