Books

Book reviews

The Hyper-social Organization – Review

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The main premise of The Hyper-social Organization is that social media, connectivity, and always-on technology are enabling what humans do naturally — be very social.

The authors on knowledge management:

Of course, one of the big challenges for companies is that, unlike information or data, knowledge does not flow easily, as it relies on long-term trust-based relationships. Indeed, data and information are facts that describe a situation and can be generated by machines, whereas knowledge consists of truths, beliefs, methods, solutions, ideas and other elements that are created by humans and shared among people who trust one another. So one of the keys to success in this new economic reality is to move from a transactional world to a long-term trust-based world.

I have to like these questions the authors ask organizational leaders:

How good are you at engaging your detractors? How much of a “perpetual beta” culture do you have in your company? Do you consider your customer service department to be a cost center, or something more?

On the value of marketing materials:

McKinsey estimates that two-thirds of all buying decision-focused conversations do not involve anyone from the company. In a separate study, IDC estimated that only 20 percent of all content developed by the typical marketing department is actually used by the sales organization. What we can extrapolate from this information is that the content developed by most marketing departments is used in less than 7 percent of all buying decisions.

The most interesting part of the book is the Hyper-Sociality Index, based on four pillars:

Tribes vs Segments — “In a hyper-social environment you need to reach the tribes whose members influence one another – not the market segments that can be targeted with direct mail and ad campaigns”

Human-centricity vs Company-centricity — “… the shift in attention to the human elements of your business can help to improve product development, marketing, sales, talent management, knowledge management, and customer service.”

Networks vs Channels — “Data and information flow through channels, whereas networks allow knowledge to flow.”

Social Messiness vs Process and Hierarchy — “SEAMS: sensing, engaging, activating, measuring, storytelling” [Note: this does not align with the Cynefin framework that advocates a Probe — Sense — Respond approach to complexity, so I think SEAMS lacks the flexibility necessary in complex environments.]

The authors pose a similar question I have been asking for years as well, “Will traditional hierarchical organizations, with multiple levels of management between the tribes and corporate decision makers, enjoy any sort of advantage in a hyper-social future?”

Finally, here are 8 characteristics of hyper-social leaders:

  1. Behave like humans, not faceless entities
  2. Ditch the rule books and embrace values
  3. Live their values
  4. Trust people and create trusted environments
  5. Embrace transparency
  6. Embrace diversity
  7. Never compromise on quality
  8. Let go of control

If these concepts are new to you, I would recommend this book. I noticed that John Hagel is often quoted in this book, so you may want to pick up his latest book as well, or instead — The Power of Pull

Where Good Ideas Come From – Review

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“The premise that innovation prospers when ideas can serendipitously connect and recombine with other ideas, when hunches can stumble across other hunches that successfully fill in their blanks, may seem like an obvious truth, but the strange fact is that a great deal of the past two centuries of legal and folk wisdom about innovation has pursued the exact opposite argument, building walls between ideas, keeping them from the kind of random, serendipitous connections that exist in dreams and in the organic compounds of life.”

This one sentence sums up the core ideas in Steven Johnson’s book, Where Good Ideas Come From: The natural history of innovation. Johnson goes on to explain what organizations can do to foster innovation:

“The secret to organizational inspiration is to build information networks that allow hunches to persist and disperse and recombine. Instead of cloistering your hunches in brainstorm sessions or R&D labs, create an environment where brainstorming is something that is constantly running in the background, throughout the organization, a collective version of the 20-percent-time concept that proved so successful for Google and 3M. One way to do this is to create an open database of hunches, the Web 2.0 version of the traditional suggestion box.”

This is what organizational social learning using social media can do – enable a free flow of hunches and ideas. The chapter on The Fourth Quadrant provides some specific advice for business innovation. The quadrant is the Non-market/Network which “corresponds to open-source or academic environments, where ideas can be built upon and reimagined in large, collaborative networks.” Innovations in this quadrant include: Braille, RNA splicing, Quantum Mechanics, Punch Cards, Germ Theory and many others developed at an increasing pace post-1850, as we became electrified [my observation here].

“Participants in the fourth quadrant don’t have these costs [protecting intellectual assets through barricades of artificial scarcity]: they can concentrate on coming up with new ideas, not building fortresses around the old ones. And because these ideas can freely circulate through the infosphere, they can be refined and expanded by other minds in the network.”

Steven Johnson presented this morning at the CSTD conference , reinforcing these points and making several others. He talked about the concept of getting more parts (or ideas) on the table in order to have more to work with and more potential connections. I liked his view of intellectual property protection as an ‘innovation tax’. He also talked about the emerging role of the organizational translator who can help break down silos and enable better communication and collaboration, similar to the ideas in the post, adapting to a networked world.

Overall it’s a great book with some solid advice for any organization.

Update: Video of SBJ discussing Maple Syrup, Airplane Crashes & the Power of non-Market Innovation (the fourth quadrant).

Third Industrial Revolution – Review

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The future should be networked, writes Jeremy Rifkin in The Third Industrial Revolution. He sees the next industrial age, one bridging industrialism to continental collaboration as the most feasible post-carbon future. This era of networked energy will be based on 5 pillars, all essential for a successful transition:

  1. shift to renewable energy
  2. shift buildings to become local power plants
  3. deploy energy stores locally, especially hydrogen
  4. use the Internet to create a smart energy-sharing grid
  5. shift transportation to plug-in & fuel cell power

Europe is leading the way and Rifkin spends a good part of the book setting up a narrative and understanding for an American audience. There’s lots here on how power is created, controlled and regulated. I was most interested in the way Rifkin connects so many perspectives together. The first part talks about energy but the book continues with sections on economics, politics and education. There is a good review of how many of our current institutions were forged at the beginning of the second industrial revolution, around 1890 – e.g. corporations, schools, utilities.

He discusses how bureaucracies are an outdated form of control. This resonated with me after my presentation on social media to federal assistant deputy ministers only a few weeks ago:

Still, systemic thinking is a difficult task in a bureaucratic environment where there is a strong drive to hold on to turf and protect domains. This is what leads to what I call the DG (director general) abyss – the process by which big-picture ideas, agreed to at the ministerial level and even higher at the head-of-state level, lose their heft and become increasingly smaller and more narrow in vision and scope as they descend down into the departments and agencies, finally ending up as a shadow of their former selves, languishing in the minutia of countless reports, studies and evaluations, whose purposes become increasingly obtuse, even to those tasked with managing them.

The institutions we created to mirror the dominant energy producer of the 20th century, big oil, are a large part of the problem:

The oil age from its onset has been characterized by gigantism and centralization. That’s because harnessing oil and other elite fossil fuels requires large amounts of capital and favors vertical economies of scale, which necessitates a top-down command and control structure. The oil business is one of the largest industries in the world. It’s also the most costly enterprise for collecting, processing and distributing energy ever conceived by humankind.

As the Internet economy has shifted to a distributed and collaborative model, so too must the energy economy. It will be a battle between centralized and distributed energy and how easy it will be for localities to participate and profit. Rifkin provides great detail on how this can be done by 2050 and his model has already been adopted by the European Union while the US and Canada lag behind. The younger generation already understand this model, as the President of Spain noted, “For a younger generation growing up on the Internet and comfortable interacting in social media, the hierarchically organized flow of authority and power from the top down is old school.”

Rifkin includes a good analysis of the education system and its issues, with a section entitled, The Biosphere becomes the Learning Environment. Though I found the first part a bit slow going I really enjoyed the second half and the synthesis it provides on much of my professional work. Near the end, Rifkin summarizes the fundamental communications shifts we’ve experienced, echoing Marshall McLuhan:

All forager-hunter societies were oral cultures, steeped in mythological consciousness. The great hydraulic agricultural civilizations were organized around writing and gave rise to theological consciousness. Print technology became the communication medium to organize the myriad activities of the coal- and steam-powered first Industrial Revolution, 200 years ago. Print communication also led to a transformation from theological to ideological consciousness during the Enlightenment. In the 20th century, electronic communications became the command and control mechanism to manage a second industrial revolution, based on the oil economy and the automobile. Electronic communication spawned a new psychological consciousness.

Today we are on the verge of another seismic shift. Distributed information and communication technologies are converging with distributed renewable energies, creating the infrastructure for a third industrial revolution. In the 21st century, hundreds of millions of people will transform their buildings into power plants to harvest renewable energies on-site, store those energies in the form of hydrogen, and share electricity with one other across continental grids that act much like the Internet. The open-source sharing of energy will give rise to collaborative energy spaces, not unlike the collaborative social spaces on the Internet.

The third industrial revolution paves the way for biosphere consciousness.

Grist for the cognitive mill

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A book that influenced many of my opinions on education is Kieran Egan’s, The Educated Mind: How Cognitive Tools Shape our Understanding. Egan says that Western education is based on three incompatible ideas:

  1. Education as Socialization (age cohorts, class groupings, team sports)
  2. Education as learning about Truth & Reality, based on Plato (varied subjects, academic material, connection to culture)
  3. Education as discovery of our nature, based on Rousseau (personal sense-making, teacher as facilitator)

One of these ideas may be dominant at any given time but no education system can foster all three at once. Therefore we keep trying to re-balance something that can never be balanced. It’s a constantly shifting three-legged stool. In addition, each one by itself is inadequate in a modern society, writes Egan.

Socialization to generally agreed norms and values that we have inherited is no longer straightforwardly viable in modern multicultural societies undergoing rapid technology-driven changes. The Platonic program comes with ideas about reaching a transcendent truth or privileged knowledge that is no longer credible. The conception of individual development we have inherited is based on a belief in some culture-neutral process that is no longer sustainable.

I think Egan’s recommendations for a different system make more sense than any other I have read over the years and it’s a shame his work has not been picked up by educators. However, my aim in this post is not to review these. I’m interested in a conversation Dave Cormier has initiated because this is what Egan has articulated in the first chapter of his book. Dave asks:

 The why of education should be the first question that we answer in any discussion in the field. The answer to the ‘why of education’ question should be debated, mulled and hammered, on and on, and be at the centre of the work that we do. Sadly, it seems to be very difficult to say anything about “what learning is” and “why we educate our children”.

I don’t think it can be adequately answered because our society has not gone beyond the initial three incompatible ideas. Until we address these, we will keep spinning in circles. Dave suggests a shift to a nomadic education model and this might work, but not without addressing the baggage of the three core ideas. Maybe we need three distinct school systems. Perhaps we can examine Egan’s model that breaks from the three core ideas and suggests one where there is no set curriculum and any subject is “grist for the cognitive mill”.

B.H. Liddell Hart, military historian, wrote that “The only thing harder than getting a new idea into the military mind is getting an old one out.” And so with the educator’s mind.

The Freelance Revolution

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The notion that work is changing and that free agent knowledge workers will dominate the new economy was something I discussed in my Master’s thesis, published in 1998.  I’ve been talking about free agents as the future of work on this blog almost since I started it. I wrote that free agents are the future of work in 2004 when I noticed that it was getting much easier to be a free agent. In my first year as a freelancer, I learned business lesson #1 : there IS NO BUSINESS until you have a customer.

After three years, I created a list of what being a free agent meant to me:

10. Doing my own tech support

9. Only working seven days a week

8. Paying cash & avoiding monthly payments

7. Time for exercise and reading

6. Lots of short breaks, but no long holidays

5. Getting asked to volunteer more

4. Seeing more of my banker

3. Seeing more of my family

2. Looking forward to Mondays

1. Creating my own opportunities

I likened free agentry to a natural enterprise and noted that salaried work is a mug’s game:

Corporations have had continuous profits while workers have seen none of it. Trickle down economics doesn’t work. One of the few options for individual workers is to establish a new work contract. However, unions are losing influence and collective bargaining hasn’t done much for workers’ wages.

It’s getting easier for individuals to connect with social applications like Facebook and we are also seeing tools like Linked-In for business. The tools for individual workers to connect and collaborate are now available, though we don’t have the culture or mindset to fully embrace them yet.

My brush with full-time employment inspired me to write: you do not own me:

I have often referred to salaried employment as indentured servitude, and practices such as non-compete clauses are examples of this culture. Perhaps with more worker mobility, a growing body of free-agents and less dependence on corporations for work, we may see this culture changing. Let’s hope that the lawyers hear about this soon.

My recommendation two years ago was – freelancers unite:

If contract work seems like the only option, then start networking with co-workers and competitors. Band together as a guild or association and help each other out. Think of it as a freelancers union and look into group health care, joint marketing and shared administration. You can’t do this working 40 hours a week for The Man. The deck is stacked with laws supporting either employers and employees but the future of knowledge work is free-agency. The powers that be, corporations and unions, won’t change to help out freelancers, we have to help ourselves.

Being a free agent has been like riding the roller coaster, but after this decade it seems that it is becoming the norm. One of my inspirations when I went on my own was Dan Pink’s Free Agent Nation. Via @DanielPink on Twitter, I just came across this article in The Atlantic – The Freelance Surge is the Industrial Revolution of Our Time:

This transition is nothing less than a revolution. We haven’t seen a shift in the workforce this significant in almost 100 years when we transitioned from an agricultural to an industrial economy. Now, employees are leaving the traditional workplace and opting to piece together a professional life on their own. As of 2005, one-third of our workforce participated in this “freelance economy.” Data show that number has only increased over the past six years. Entrepreneurial activity in 2009 was at its highest level in 14 years, online freelance job postings skyrocketed in 2010, and companies are increasingly outsourcing work. While the economy has unwillingly pushed some people into independent work, many have chosen it because of greater flexibility that lets them skip the dreary office environment and focus on more personally fulfilling projects.

Welcome to the revolution, folks. Let’s keep working together.

Outliers, success and chance

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Summer seems to be for reading and I just finished Gladwell’s Outliers: the story of success, in two days. Like his other books, it’s an easy read with lots of anecdotes. At the end, I thought to myself, what I can take away from this, other than some interesting stories?

The culture of our community strongly influences our health. This culture is more than what we see and can be affected by norms that are hundreds of years old and no longer visible.

When and where we were born have a significant impact on our chances for success. Just being intelligent or creative is not enough. We need chance to favour us; such as reducing competition during periods of low birth rates, or to be born early in the year so that we physically develop ahead of our peers and are perceived as “better”.

It takes a long time to develop deep skill in an area, about 10,000 hours, says Gladwell. The advantage is to those who develop these skills just before they come into great demand, like computer programming before the 1980’s or tailoring prior to an explosion of the garment industry. Like being born at the right moment, timing is everything.

Culture can also help or hinder a society as it changes. For example, Korean culture initially hindered effective communications in airplane cockpits but its culture and language have positioned it well in mathematics, science and education in general.

Echoing Dan Pink’s Drive (Autonomy, Mastery, Sense of Purpose), Gladwell concludes that meaningful work has three defining attributes:

Those three things – autonomy, complexity, and a connection between effort and reward – are, most people agree, the three qualities that work has to have if it is to be satisfying. It is not how much money we make that ultimately makes us happy between nine and five.

I was born in a year with heavy competition, 1959, the bulge of the baby boom. I have had lots of peer competition. Luckily, I got on the Web early, part of my second career, because my first career was good, but not a huge success (I was not on a promotion track when I left the military). I’ve developed skill with social media, especially blogging, amounting to close to 10,000 hours by now. There are about ~2,000 posts on this blog, I’ve made +17,000 Tweets and I’ve spent a lot of time in countless social network systems.

I got a head start because I saw the potential of the Web before my peers did. This was based on a series of serendipitous chances like transferring to the military Training branch and then getting posted to a project that required knowledge about flight simulation and computer based training, which few of us had, so I had to learn as I went along. This pushed me to go back to school and get a Master’s degree which then helped me get a job at a university where I got deeper into learning technologies.

My Canadian culture seems to make me less entrepreneurial than my American counterparts but I think I’m better at understanding other cultures. Good for supporting a business, but probably not leading one. Consulting seems to be a good fit, but I may not have gone into freelancing had I not been laid-off (twice in two years).

For someone 20 years younger than me, I think Outliers would be a good read and might help make some of life’s decisions a bit easier.

The adaptive organisation

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Continuing from the post: Adapting …

The adaptive organisation is the second-last chapter of Adapt: Why success always starts with failure, followed by Adapting and you. In the final chapters, Tim Harford examines how groups and individuals can strive to adapt, and here are some highlights.

“So let’s first acknowledge a crucial difference: individuals, unlike populations, can succeed without adapting.” This statement explains a lot about what happens in organizations ;)

Case study of Timpson:

The first thing Timpson does when it buys another business is to rip out the electronic point-of-sale machines (there are always EPOS machines) and replace them with old-fashioned cash registers. ‘EPOS lets people at head office run the business’, explains John Timpson. ‘I don’t want them to run the business.’ EPOS machines empower head offices but they make it harder to be flexible and give customers what they need.

… how senior executives must feel when their cutting-edge, market-leading business finds itself being disrupted by a foolish-looking new technology:

A sufficiently disruptive innovation bypasses almost everybody who matters at a company: the Rolodex full of key customers becomes useless; the old skills are no longer called for; decades of industry experience count for nothing. In short, everyone who counts in a company will lose status if the disruptive innovation catches on inside that company — and whether consciously or unconsciously, they will often make sure that it doesn’t.

These, then, are the three obstacles to heeding that old advice, ‘learn from your mistakes’:

  1. denial, because we cannot separate our error from sense of self-worth;
  2. self-destructive behaviour, because … we compound our losses by trying to compensate for them;
  3. rose-tinted processes … whereby we remember past mistakes as though they were triumphs, or mash together our failures with our successes.

How to overcome these obstacles:

“Honest advice from others is better.”

Perhaps there is one reason why researchers find that self-employed people tend to be happier than the employed: they receive implicit approval of what they do every time somebody pays their invoice, whereas people with regular jobs tend to receive feedback that is both less frequent and less meaningful.

“So it’s worth remembering once again why it is worth experimenting, even though many experiments will, indeed, end in failure. It’s because the process of correcting the mistakes can be more liberating than the mistakes themselves are crushing, even though at the time we so often feel that the reverse is true.”

The book covers and cites several key points from The Innovator’s Dilemma and The Future of Management, which may make it a bit tedious for those who’ve read many management books, but overall I would recommend it as a fresh perspective on some key organizational and structural issues.

 

Adapting

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I’ve just started reading Tim Harford’s book, Adapt: Why success always starts with failure.

Here are my highlights/notes from Chapter One, Adapting:

Planning vs Adapting

“Ormerod’s discovery strongly implies that effective planning is rare in the modern economy.”

“The Soviet failure revealed itself much more gradually: it was a pathological inability to experiment.”

Design Principles

Palchinsky principles’:

first, seek out new ideas and try new things;

second, when trying something new, do it on a scale where failure is survivable;

third, seek out feedback and learn from your mistakes as you go along.

[note that Palchinsky worked in the Soviet Union]

Hierarchies

“There is a limit to how much honest feedback most leaders really want to hear; and because we know this, most of us sugar-coat our opinions whenever we speak to a powerful person. In a deep hierarchy, that process is repeated many times, until the truth is utterly concealed inside a thick layer of sweet-talk.”

Next: the adaptive organization

Mapping quality with VNA

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Our NetWorkShop on Saturday was a great success and I think everyone left with a better understanding of networks, as well as some ideas for future pursuit. One main message that came through early in the workshop is that you cannot manage a network. That’s probably the biggest barrier to Net Work in most organizations. We also went through a few exercises to describe some of our networks and created value network maps that looked much messier than this one, by Patti Anklam.

Our value network analyses (VNA) looked like this:

One key insight for me is that when analyzing networks we need to describe the connections in detail. It’s not just mapping the nodes, but understanding how they are connected. With Value Network Analysis, one looks at tangible and intangible asset transfers. Process maps often ignore the type of connection and show it as an arrow without describing all the fuzzy relationships. This is a limitation of performance analysis as it often misses the social aspect of organizations.

Incorporating a process map like performance analysis into a value network analysis might give us deeper insights into how an organization and its people actually work. Given that more of our work collaboration happens in networks and uses social media platforms, this is the direction our analysis should go. As Jay Deragon notes, it’s not the outputs that really matter but the quality of the connected processes. I’ve added comments on the need for descriptions of relationships and quality of connections to the performance analysis process map above. It’s just a start.

More photos of our NetWorkShop are on Flickr.

Patti Anklam’s book on Net Work is now available on the Kindle.

Enterprise Social Technology – Review

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Scott Klososky sent me a copy of Enterprise Social Technology with this handwritten note, “If nothing else, it shows what can be done using crowd sourcing.” The story of how this book was written provides an interesting subtext to its main subject. As project manager Corey Travis writes:

For the content, we decided to heavily outline the chapters, then narrow the crowd by picking three potential writers for each chapter. We had them each write the full chapter and submit their version, and we then picked the best. We have no idea whether anyone has used this model before; we just believed it would help us create a stellar book, and we are pleased with how it worked out.

The book’s twelve chapters follow Scott’s recommended implementation strategy for enterprise social technology, from Setting Social Tech Goals and Assembling the Team to Developing Pilot Projects and Security & Regulations. Each chapter concludes with a summary of key points and there is lots of good information that any organization could use, large or small. It’s main focus is on marketing, sales and online reputation management, coupled with explanations of tools and platforms.

The book is not focused on social media for workplace performance improvement, my own area of professional interest. However, the chapter on “Building a River of Information” reflects some of what I have been advocating with networked learning or personal knowledge management (PKM).

People have always built rivers of information for themselves, but in the past it was a laborious process that required determination and discipline … Now, with Web 2.0 and the new information tools that are being developed every day, everything you ever wanted to know is literally at your fingertips. The Internet acts as eyes, ears and mouth of just about every organization in operation today, and it offers users a larger, more accessible river of information that can help their companies reach new heights of success.

The chapter discusses the need for managing rivers of information from multiple perspectives, like executives or sales or engineers, and then shows how to get started. Not just building the river, but pruning irrelevant or under-performing sources is also explained. The sales force is described as the department that could most likely profit from these techniques of harvesting “information  about competitors, and thought leaders, industry news, statistics, and infographics”.

Social technologies are a fact in the workplace and this book provides a comprehensive overview of the issues. The twelve step method provides a clear path to implementation. Since ROI is always a hot topic, take note of the entire chapter dedicated to it. One key piece of advice is don’t outsource measurement until you understand it very well yourself.

I would recommend this book to my clients and also point them to the Enterprise Social Technology companion website that includes many more resources. Like the cover says, this book was “By the Crowd, for the Crowd”.