Networked individuals trump organizations

2005 was the year when more than 50% of US workers’ occupations involved non-routine cognitive work, that long-awaited milestone. - Stowe Boyd

jobs and work“Work has become distributed, discontinuous, and decentralized, hence, 3D”, says Stowe. As hyperlinks subvert hierarchy, so does work fragmentation subvert organizations. Given the nature of 3D work, it may be possible that we are witnessing the end of the corporation as a wealth-generation machine, just as its current power seems to have no limits.

In knowledge-based work the primary unit of value creation has shifted from the organization to the individual. Work is modularized and distributed globally across algorithms and human work.Ross Dawson

Stowe Boyd calls this the rise of the emergent business. We can look at this change from the perspective of knowledge networks, in which most of us will be working, whether we are farmers or software engineers. A knowledge network in balance is founded on openness which enables transparency. This in turn fosters a diversity of ideas, and promotes innovative thinking. The emergent property of all of these exchanges is trust.

In an economy based on trusted knowledge networks of individuals, the role of the organization may revert to merely a supporting one. We might even see corporations bidding for the privilege of supporting knowledge networks. This is quite the opposite from today, where someone recently stated on a forum that 95% of companies are not in the top 5%, yet they all demand the top 5% of talent. Perhaps in the future companies will have to fight for talent.

open societiesAs more people work in distributed networks they may realize how little they have to gain from organizations. If autonomy, mastery, and a sense of purpose motivate people to work, as Dan Pink says, then networks are a much better vehicle for rewarding work than organizations can ever be. It’s the difference between intrinsic and extrinsic motivation. While the industrial era, based on the principles of scientific management, used extrinsic rewards, the network era requires personal motivation. Organizations, driven by external and formal direction, cannot compete with self-motivated and connected workers in the network era.

industrial management

Connected leadership

How is leadership in a hyper-connected workplace different? It’s been an ongoing conversation here, as this comment by Stephen Downes, on leadership as an emergent property, provides a counterpoint to certain popular leadership literature, especially “great man” theories.

‘Leadership’ is the trait people who have been successful ascribe as the reason for their success.
It is one of those properties that appears to be empirically unverifiable and is probably fictional.

In preparing for our connected worker program, I reviewed my previous posts on leadership and created a short synthesis of the key points. With life in perpetual Beta as a guiding perspective, networked organizations have to learn how to deal with ambiguity and complexity. Those in leadership and management positions must find ways to nurture creativity and critical thinking. Too often there are organizational barriers that prevent this. The 21st century workplace is all about understanding networks, modelling network learning, and strengthening networks. Anyone can show leadership in these areas.

Another guiding principle for modern organizational design is for loose hierarchies and strong networks. This is succinctly explained in the definition of wirearchy: a dynamic two-way flow of  power and authority, based on knowledge, trust, credibility and a focus on results, enabled by interconnected people and technology”. As networked, distributed work becomes the norm, trust will emerge from environments that are open, transparent, and diverse. Supporting social networks ensures that knowledge is shared and contributes to organizational longevity. Organizations need to learn as fast as their environments.

As a result of improved trust in the workplace, leadership will be seen for what it is – an emergent property of a network in balance and not some special property available to only the select few. This requires leadership from everyone – an aggressively intelligent and engaged workforce, learning with each other. In today’s workplace, it is a significant disadvantage to not actively participate in social learning networks.

Leadership in networks does not come from above, as there is no top. To know the culture of the workplace, one must be the culture. Marinate in it and understand it. This cannot be done while trying to control the culture. Organizational resilience is strengthened when those in leadership roles let go of control.

Related posts:

The Connected Leader

From Hierarchies to Wirearchies

The Connected Workplace

The Connected WorkerToday’s digitally connected workplace demands a completely new set of skills. Our increasing interconnectedness is illuminating the complexity of our work environments. More connections create more possibilities, as well as more potential problems.

On the negative side, we are seeing that simple work keeps getting automated, like automatic bank machines. Complicated work, for which standardized processes can be developed, usually gets outsourced to the lowest cost of labor.

On the positive side, complex work can provide unique business advantages and creative work can help to identify new business opportunities. However, complex work is difficult to copy and creative work constantly changes.

But both complex and creative work require greater implicit knowledge. Implicit knowledge, unlike explicit knowledge, is difficult to codify and standardize. It is also difficult to transfer.

Implicit knowledge is best developed through conversations and social relationships. It requires trust before people willingly share their know-how. Social networks can enable better and faster knowledge feedback for people who trust each and share their knowledge. But hierarchies and work control structures constrain conversations. Few people want to share their ignorance with the boss who controls their paycheck. But if we agree that complex and creative work are where long-term business value lies, then learning amongst ourselves is the real work in organizations today. In this emerging network era, social learning is how work gets done.

Becoming a successful social organization will require more than just the implementation of enterprise social technologies. Developing, supporting, and encouraging people to use a range of new social workplace skills will be just as important. Individual skills, in addition to new organizational support structures, are both required.

Personal knowledge management (PKM) skills can help to make sense of, and learn from, the constant stream of information that workers encounter from social channels both inside and outside the organization. Keeping track of digital information flows and separating the signal from the noise is difficult. There is little time to make sense of it all. We may feel like we are just not able to stay current and make informed decisions. PKM gives a framework to develop a network of people and sources of information that one can draw from on a daily basis. PKM is a process of filtering, creating, and discerning, and it also helps manage individual professional development through continuous learning.

Collaboration skills can help workers to share knowledge so that people work and learn cooperatively in teams, communities of practice, and social networks. In order to support collaborative working and learning in the organization, it is important to experience what it means to work and learn collaboratively, and understand the new community and collaboration skills that are involved. “You can’t train someone to be social, only show them how to be social.” Practice is necessary.

The power of social networks, like electricity, will inevitably change almost every existing business model. Leaders need to understand the importance of organizational architecture. Working smarter in the future workplace starts by organizing to embrace networks, manage complexity, and build trust. The 21st century connected enterprise is a new world of work and learning.

For example, traditional training structures, based on institutions, programs, courses and classes, are changing. Probably the biggest change we are seeing is that the content delivery model is being replaced by more social and collaborative frameworks. This is due to almost universal Internet connectivity, especially with mobile devices, as well as a growing familiarity with online social networks.

Work is changing and so organizational learning must change. There is an urgent need for organizational support functions (HR, OD, KM, Training) to move beyond offering training services and toward supporting learning as it is happening in the digitally connected workplace. The connected workplace will not wait for the training department to catch up.

#itashare

From hierarchies to wirearchies

Work in the network era needs to be both cooperative and collaborative, meaning that organizations have to support both types of activities. This may not be an easy transition for companies based almost uniquely on command and control leadership. But in this emerging network era, cooperative innovation trumps collaborative innovation, writes Stowe Boyd.

My experience is that communities of practice can help make the transition from hierarchies to networks, or as Jon Husband describes the resulting structure; wirearchy. Communities of practice, both internal and external; can be safe places between highly focused work and potentially chaotic social networking. The Community Roundtable has a Community Maturity Model that describes this transition, in four stages. The model makes it relatively easy to see where your organization stands and where it should go.

Community Maturity Model

The CMM aligns with my own way of looking at the need to balance structured work and the sharing of complex knowledge, with the concurrent requirement for unstructured social networking which can increase innovation through a diversity of ideas. I have added in the four CMM stages to the image below. Communities of practice can link collaboration and cooperation, and help weave the organization and its people into a wirearchy.

Wirearchy – “a dynamic two-way flow of power and authority based on knowledge, trust, credibility and a focus on results, enabled by interconnected people and technology.” - Jon Husband

HCNW

Getting there may not be easy, but the evidence is showing that it is necessary. For example, here is how Yammer builds its products, according to Kris Gale, VP of Engineering:

Yammer’s biggest rule of thumb is 2 to 10 people, 2 to 10 weeks – which means they generally don’t do projects that are larger or more complicated.  There is a non-linear relationship between the complexity of a project and the wrap-up integration phase at the end.  If you go anywhere beyond ten weeks, the percentage of time in the wrap-up phase becomes disproportionate. - First Round Capital

This sounds like it’s aligned with the general rules of dealing with complexity, developed by Dave Snowden. Each project at Yammer is a probe. It’s also small enough so that the potential ROI does not drive the company off the rails. A small project failure is much easier to deal with than a large one. Yammer understands that working in a hyper-connected economy makes formal and complex work less predictable, so project cycles are kept short. As Gale goes on to explain:

I don’t think you should be building a product.  I think you should be building an organization that builds a product.

Be very wary of only trusting managers with engineering decisions; in fact, you should delegate these all the way down to individual contributors.  If managers are the only ones making decisions as you grow past thirty to forty people, this should be a red flag.  - First Round Capital

probe sense respond

Becoming a wirearchy requires new organizational structures that incorporate communities and networks. In addition, they require new ways of doing work, like thinking in terms of perpetual Beta and doing manageable probes to test complex problems. It’s a new way of doing work, within a new work structure. Both are required.

Note: At the Connected Worker, we offer frameworks and coaching to develop these skills for your organization.

#itashare

First structure the work system

Working Together
Complexity (Cynefin) Social (TIMN) Practices Group Work
Chaotic Tribal Novel Action
Simple Tribal + Institutional Best Coordination
Complicated Tribal + Institutional + Markets Good Collaboration
Complex Tribal + Institutional + Markets + Networks Emergent Cooperation

I developed the above table in 2009 to explain that working together [follow link for background info] requires different types of group work according to the complexity of the environment. The tension I see in workplaces today is a direct result of two (almost) opposing principles for organizational design that are necessary in workplaces that deal with complex environments, networks, emergent practices & cooperative work.

First, complex work requires strong ties and high levels of trust to enable work teams to function. On the other hand, innovation needs loose ties and a wide network to get diverse points of view. In these loose networks, cooperation (sharing freely without any quid pro quo) is the order of the day, not collaboration (working together toward a common objective).

The problem is that in a TIMN world, one cannot focus only on networks and complexity and ignore the rest. Therefore there is no single answer on how diverse a work team should be, or the right balance between time spent with loose networks and time spent focused on projects. It’s not as simple as tacking on 20% time. Work and learning are in dynamic tension at all times. While some action and coordination in the workplace can be automated with performance support systems, collaboration and cooperation are still intensely human and require continuous learning.

My recommendation has been to support workplace activities that are both cooperative and collaborative and also to provide the necessary support structures. However, my observations to date show that a third piece is required, and that is the fostering of communities of practice to connect the two. These communities, internal and external; are a safe place between highly focused work and potentially chaotic social networking. I also see the support of communities of practice, through skill development and structural support, as a primary role for learning & development staff.

how work gets done in network era

Enabling people to work in all three spaces is more natural than boxing work as a separate activity from learning and development. John Bordeaux has had similar thoughts about the need to focus on organizational design instead of process design. I think humans, with their complex brains, can develop processes that work, if they are in organizations that allow them to be natural. I also think that this model can work with junior employees, if they are treated like adults. John asks a key question, “Why do we work in organizations where natural interactions and instincts are discouraged?”

Others have written about new organizational structures, such as heterarchy, wirearchy, et al.  We cannot fall into the trap of the last decade, where “flat organizations” were supposed to destroy hierarchy.  Sociology is not extinct.  But radical new organizations are possible and are in fact happening.  A dear friend now works for a consulting firm where people come together into ad hoc teams to tackle projects.  The firm itself is just the backplane, providing health care, office space, etc – in exchange for a percentage of revenue.  The consultants/engineers/developers/project managers self-organize around opportunities.  The morale is high, the reputation is strong, and the life balance is exquisite.  This model does not suit junior employees, and would not work for many areas outside professional services – but it represents a triumph of natural systems over machine processes.  It maximizes crew methodologies for client value.

From ideas to ideology

Charles Green wrote a few years ago that management is still fighting the industrial revolution:

Ideas lead technology. Technology leads organizations. Organizations lead institutions. Then ideology brings up the rear, lagging all the rest—that’s when things really get set in concrete.

So basically, ideas are enabled by new technology around which new organizations are created. Only then do new institutions get built in order to support the new dominant ideology.

So what does the current set of pillars that informs management look like?

The industrial era was based on the notion of standardization and best practices. Factories and mass production enabled corporations, like General Motors, from which business schools such as MIT’s Sloan School of Management (Alfred Sloan was president & CEO of GM) were created to develop managers trained in some variation of the principles of scientific management. Here is an excerpt from F.W. Taylor’s Principles of Scientific Management (1911):

It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions, and enforced cooperation that this faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone.

The network era is starting to take shape and some of the pillars are getting set in place, while others are in the making and not yet guaranteed to be part of the mix. Ideas like wirearchy and open business have been taken up in conjunction with new internet technologies, especially social media. There are experiments with new organizations, like  B Corporations that have social and environmental components, or peer to peer production.  It’s not obvious what the new institutions will look like, but we are seeing frenzied action in the educational sector as new and old players vie for dominance.

Perhaps new institutions will look like Massively Open Online Courses (MOOC’s). Perhaps not. But before a dominant ideology emerges we will see much more experimentation during this shift period. Will the dominant ideology be more like the “unassailable techno-humanitarian” TED Talks, or perhaps have the grassroots qualities of Shareable? My initial stab at a new ideology is a Taylorist mash-up: The principles of Connected Management:

It is only through innovative and contextual methods, the self-selection of the most appropriate tools and work conditions, and willing cooperation that more productive work can be assured. And the duty of being transparent in our work and sharing our knowledge rests with all workers.

However, if history is to be repeated, things will only stabilize after the new dominant ideology sets in place. Meanwhile, we will continue to live in very interesting times.

connected management

It’s the worldview, stupid

I have written on various topics on this blog over the years. For example, I believe that it is only by working (and learning) interdependently, retaining our autonomy, co-developing our mastery and feeling a shared sense of purpose that we will be truly motivated. Imagine my surprise when I watched the movie, Crossroads: Labor pains of a new worldview, when it began with interdependence and then went on to discuss recent mass, decentralized, social world events; the need for cooperation; the Stanford Prison Experiment; and how our social networks influence our behaviour.

This documentary clearly shows that if we change our worldview, we can change the future, for good. However, institutional, business, and political leaders are too committed to the status quo. Meanwhile, the global poor are too busy surviving. That leaves those in the middle, and I would surmise that would be most of the people reading this blog. It’s up to us. As noted in the video, research shows that it only takes 10% of a population to spread an idea. If you understand that we are all connected and that only together will we get ourselves out of the messes we have created, then this video is for you.

Watching this movie was like seeing many of my thoughts put together in a single narrative. I have seen several future-looking videos in recent years but this one really covers the complexities of our current situation. It is worth the one hour of your time. I strongly recommend it. If you are planning on taking my March workshop on social learning in business, it will be required viewing. Changing our worldview will be a process of social learning.

Social learning is how work gets redesigned in the network era

Jon Husband referred me to a 2005 paper by Martin Weisbord, Techniques to Match our Values (PDF) that discusses the shifts in approaches to work design over the past century, from scientific management, to socio-technical redesign, to “whole system in a room”. The paper is a must-read for anyone involved in organizational design & development. Weisbord shows that even large group, participatory redesign efforts may not be good enough to deal with the rapid environmental changes all organizations face today in a networked world.

No matter what strategies we choose, if we organization designers want job satisfaction, we still are stuck with finding techniques equal to our values. Techniques cascade down the generations like Niagara Falls. Values move like glaciers. Techniques fill whole bookshelves. Values take up hardly space room at all. I can still say mine in eight words: Productive workplaces that foster dignity, meaning and community.

In the intervening years since Weisbord wrote this paper describing his whole system in a room technique,  there has been one major change – the room is virtual and it is almost immeasurable. This change has the potential to involve everyone in the constant process of organizational redesign. Social learning can help organizations address rapid and constant organizational change, and get people committed. As Weisbord states, “Nobody has yet figured out how to commit people to organizational designs, even very good ones, over which they have no influence.” Social learning, facilitated by transparency, work narration and shared power, keeps everyone involved in organizational redesign, through ongoing conversations. John Kellden clearly shows the value of social learning, in The 11 Conversations: it’s return on engagement.

11 conversations by John Kellden

Weisbord’s conclusion tells us that we have to work on these things together.

I can tell you right now, though, what the future holds: unpredictable change. All we have to work with is our own experience . The learning curve belongs to all of us.

But for once, we have the technologies that can help enable this.

social learning is how work gets doneSocial learning is also how work gets redesigned in the network era.

Collaboration is a means not an end

Collaboration Isn’t Working: What We Have Here is a Chasm writes Deb Lavoy in CMS Wire.

Why do teams fail to act the way we think they will? Are we oversimplifying the notion of team? What about organizations? Where is the deeper insight on the relationship between teams and organizations? Why isn’t a sophisticated vocabulary breaking out? Why do we not yet have 100 words for different kinds of collaboration and teams, as expert in it as we think Eskimos are about snow? What is the difference between an intranet, a community and a team?

My immediate response was to say to myself, why of course it isn’t working, based on my own observations and client experiences. Collaboration is only part of the solution to building social or open businesses. I have looked at the two types of behaviours necessary in a social enterprise: collaboration and cooperation. Cooperation differs from collaboration in that it is sharing freely without any expectation of reciprocation or reward. Try to get people to openly cooperate in most businesses and they will be reprimanded for not being focused on their jobs, the bottom line, or shareholder value. However, cooperation contributes to the REAL bottom line: the entire business ecosystem.

One other necessary change in becoming a real social business is much more difficult. Both Don Tapscott (via Ross Dawson) and I see certain principles necessary for open networked business.  Transparency, Collaboration, Sharing, and Narration are all relatively easy. Empowerment, or distributed power, is rarely, if ever, discussed when it comes to social business. It’s the big gorilla in the room that can scare owners, executives, and managers senseless. But we have the technology to move away from command & control, because, as Gwynne Dyer clearly shows, “Tyranny was the solution to what was essentially a communications problem.” We no longer have that communications problem in business.

Social business lacks overarching principles. Social business is a means to an end, not an end in itself. For me the objective is clearly the democratization of the workplace. Many business leaders shirk away from such thoughts. Wirearchy, as Deb notes, is an excellent example of such a principle [notice the bit about "power & authority"]. It sounds more like a democracy than a well-oiled industrial business machine.

“Wirearchy: a dynamic flow of power and authority based on trust, knowledge, credibility and a focus on results enabled by interconnected people and technology.”

wirearchy

Vendors of collaboration platforms are selling tools that can enable a more democratic workplace, but most clients don’t want that, so vendors don’t mention it. Business just wants more efficient and effective work. Networks, by their very nature, subvert hierarchies, whether those in charge like it or not. But hyper-connected work environments require different operating principles. That’s the big shift that has happened over the past two decades. It’s becoming much more obvious now because people outside the business structures are seeing the value of cooperation in a networked world; Wikipedia being the best-known example. Many in business still need to wake up to the notion of cooperating with your environment, your customers, your suppliers, and especially your workers.

Until workplaces becomes more cooperative, enterprise collaboration software will amount to very little. Social business is just a hollow shell without democracy (I wrote that a year ago and little has changed). Businesses can harness the powers of knowledge networks by promoting cooperative behaviours, within an overarching organizing principle like Wirearchy. While it’s not about the technology, the technology has changed everything. I cannot see any other way that businesses will remain relevant in a networked world other than by becoming more open, and democratic.

Managing in Complexity

As our markets and technologies get more complex, we need new models to get work done. For instance, we know that creative work can yield more innovation, yet our workplaces usually stifle creativity. Many of our practices are still premised on work being simple or complicated. Simple systems are easily knowable, whereas complicated systems, while not simple, are still knowable through analysis. These can be easily managed. However, complex systems are not fully knowable, though they can be partially understood through interaction with them. This is antithetical to many workplace control protocols.

Every day, jobs and work are getting automated and outsourced. If companies want to remain competitive in the global market, they need to focus on complex and creative work. Much of complex work is in exception-handling and when exceptions are the rule, rigid rules must become the exception.

We have to understand complex adaptive systems and develop work structures that let us focus our efforts on learning as we work in order to continuously develop next practices. In a knowledge-intensive and creative workplace the role of leadership becomes supportive and inspirational rather than directive. Artificial boundaries that limit collaboration and communication only serve to drag projects, and companies, down and create opportunities for more agile competitors.

A new mindset toward work is required. Frameworks like hyper-connected pattern-seeking or networked unmanagement can promote new perspectives on what valued work really should be. This can be fostered in a culture of perpetual Beta. Perpetual Beta means we accept never getting to the final release of our work, and that our learning will never stop. Organizations need to realize they will never reach some future point where everything stabilizes and they don’t need to learn or do anything new.

In additional to a new mindset, workers need autonomy. But many are not ready for it. We are trained early in life to look to authority for direction in learning and work. The idea that there is a right answer or an expert with the right answer begins in our schools. Too often, the message from the workplace continues to be that good employees wait for their managers to tell them what to do. This is counter-productive in dealing with complexity and working in perpetual Beta. It also destroys creativity. When we move away from a linear “design it first, then build it” mindset, we can then engage everyone in critical and systems thinking. Workers must be passionate, adaptive, innovative, and collaborative. Autonomy is the just beginning.

Fostering autonomy starts by looking at work differently. For example, dropping the notion of being paid for time is one way to start this change. An hourly wage implies that people are interchangeable. But no two minds are the same. Being paid for time fosters neither autonomy nor agility. There are many other human resource practices should be questioned and dropped, such as job competencies, or one-size-fits all training programs.

The new networked workplace requires both collaboration and cooperation. Complex problems cannot be solved alone. Tacit knowledge flows in networks through social learning. Learner autonomy is a foundation for effective social learning. It is the lubricant for a more agile organization. Agility becomes a necessity as we deal with increasing complexity. In order to develop the necessary emergent practices to handle complexity we therefore need to cultivate the diversity and autonomy of each worker. We also must foster richer and deeper connections which can be built through meaningful conversations. This is social learning in the workplace.

Change and complexity are becoming the norm in our work. We already see this with increasing numbers of freelancers and contractors. Any work where complexity is not the norm will be of diminishing value. Embracing complexity, and even chaos, is where the future of work lies.

As traditional core activities get automated or outsourced, almost all high value work will be done at the outer edge of organizations. At the fuzzy edge of the organization life is complex and even chaotic. On this periphery, where things are less homogenous, there is more diversity and more opportunities for innovation. Individuals, project teams and organizations have to move operations to the edge to continue learning and developing. In this century a greater percentage of workers will be moving to the edge. The core will be managed by very few internal staff. What does this mean for management? No matter what model one prefers, it will have to be more open, networked and cooperative. Are you ready to move to the edge?

edges_gapingvoid