This is one the clearest explanation of the challenge business faces to understand the value of social media I have read. The illustration are superb. I have spent the last two years researching this very challenge from a leadership point of view which I had tried to articulate in my first book the connected leader where I make the case that leaders should connect to the network in order to delver formal objectives. This new research for my forthcoming book Leadershift – reinventing leadership for the age of mass collaboration indicates that most of the leadership tactics we use add to rather than remove the institutional friction you identified