Retrieving cooperation

According to Dion Hinchcliffe, we need to rethink work and reinvent collaboration.

At a high level, there appear to be three major root causes for why collaboration — the very core of how people come together and function as a business — is in the midst of reinvention:

1. Hierarchical management styles break down in the face of the inherent complexity and scale of the modern business environment.
2. New digital tools have put us in constant and direct contact with nearly every person in the developed world at virtually no cost or effort …
3. There has been a sustained shift in the power of creation, as the edges of our organizations and marketplaces now have readily in hand as much — and often more — productive power and reach than our institutions …

At the highest level, we are changing the way we organize as a society. This has only happened twice before. The emerging form (networks) is not a mere modifier of previous forms (Tribes, Institutions & Markets), but a form in itself that may be able to address complex societal issues that the previous forms cannot. This is why changing how we work seems critical to so many people today.

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Industrial disease

some blame the management, some the employees;
and everybody knows it’s the Industrial Disease Dire Straits

Complexity is the new normal

We are so interconnected today that many cannot imagine otherwise. Almost every person is connected to worldwide communication networks. News travels at the speed of a Tweet. Meanwhile, inside the enterprise, reaction times and feedback loops have to get faster to deal with markets that can create multi-billion dollar valuations seemingly overnight. But are they getting faster?

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Actually, it’s not complicated

Most IT, HR, KM, etc. projects seem to assume the situation is complicated.

Complicated – relationship between cause & effect requires analysis, investigation, and expertise.
We should Sense – Analyze – Respond & we can apply good practices.

However, most projects involving people should assume they are complex.

Complex – relationship between cause & effect can only be perceived in retrospect.
We should Probe – Sense – Respond & we can test emergent practices.

So beware the cookie-cutter salespeople, as best practices do not help with complex problems. Most best practices are self-evident, whereas the problems that consume our time and efforts are usually complex. Instead of looking for best or good practices, we should take the time and money to invest in an experiment (a Probe).

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Management in perpetual Beta

“Our research indicates that, contrary to what one might assume, good analysis in the hands of managers who have good judgment won’t naturally yield good decisions.” — What Matters More in Decisions

Is it because they are assuming the problem is complicated …

Complicated, in which the relationship between cause and effect requires analysis or some other form of investigation and/or the application of expert knowledge, the approach is to Sense – Analyze – Respond and we can apply good practice.

… when in fact it is complex?

Complex, in which the relationship between cause and effect can only be perceived in retrospect, but not in advance, the approach is to Probe – Sense – Respond and we can sense emergent practice.

Our linear management models are based on people developing skills and expertise and over time moving up the organizational or disciplinary hierarchy. The higher up one goes, the greater the qualifications, and the better the compensation. These people are our experts.

One of the things that makes experts so convincing is that they exude confidence. They can talk calmly and knowledgeably about a subject, make reference to relevant facts and build a compelling logic for their case. A good expert is always impressive, but still usually wrong.

In fact, in a twenty year study of political experts, Philip Tetlock found that their predictions were no better than flipping a coin. Further, he found that pundits who specialized in a particular field tended to perform worse than those whose knowledge was more general. —Why experts always seem to get it wrong

Most expertise looks backwards. Experts develop case studies from their experience, and then best practices through reflection on these experiences. In a linear world, this is good. For complicated problems, reliance on experts usually works.

In a complex world, experts may inform our decisions but we should not rely on them. We need to try things out in context. Lots of things, lots of times, and with little fanfare. This is management in perpetual Beta. It means thinking for ourselves and developing our own expertise for our constantly changing environments. Getting current managers to understand and accept this is one of our major organizational challenges.
rear view mirror

7 guidelines for managing open networks

Ed Morrison, Advisor for the Purdue Center for Regional Development, says that many of the familiar approaches to management no longer apply, and goes on to provide 7 keys to guiding an open network. I have added my images that support this excellent set of rules.

Click on each image for a link to the supporting article.

Rule 1: Form a core team with distributed leadership roles

servant leadershipRule 2: To accelerate, go slowly at first [AKA: Probe-Sense-Respond]

trojan miceRule 3: Find opportunities by linking and leveraging assets

Picture 2
Rule 4: Create coherence with visualizations and outcomes with success metrics

HJ-network-map
Rule 5: Adopt simple rules to design and implement strategy

cynefin-networks-verna-alleeRule 6: Promote transparency, mutual accountability and success metrics

transparency
Rule 7: Embrace action and experimentation

pkm innovation

Complex knowledge

Last week I spent several hours each day, for four consecutive days, trying to share complex knowledge. I had my understanding of communities of practice, personal knowledge management, leadership, and innovation that I wanted to share. My friend and colleague Christian Renard had his knowledge about marketing, business, and digital power to share. From the time I was picked up at the Gare du Nord we began to share our knowledge through many conversations. But it was not easy, simple, or direct.

Gare du Nord
Gare du Nord and Metropolitain Entry, Paris
Source: User: ‘Jorgeroyan’, Creative Commons A-SA 3.0, wikimedia.org

What proved helpful in our coming to a common understanding was that we both practice a form of personal knowledge management. Each of us has written articles, and more importantly, created images to describe many concepts. These visual metaphors accelerated our knowledge sharing.

Sharing information and viewing it through our individual filters is the best that we can hope for in terms of knowledge transfer. It is a very inexact process. Christian and I shared many stories over the four days and these too helped us come to some common understanding. Most importantly, we trusted each other and did not judge. We were both on similar journeys of understanding and were not trying to sell our ideas.

I was reminded once again of how much time it takes to share complex (implicit) knowledge. Four days, some long car rides, a few meetings with others, and several wonderful meals later, I think we came to a joint understanding of certain concepts. In the hurried pace of many businesses today, this would have been nearly impossible. If most organizations have a real need to share knowledge, which I believe they do, then they have to make time and space available for deep conversations. This may be one of the greatest challenges for organizational redesign as we enter a creative economy.

The aim of knowledge-sharing in an organization is to help make implicit knowledge more explicit. It’s important to understand that each of us only has an approximation of knowledge in our understanding. Knowledge should be seen as a fluid, not a solid. The cumulative pieces of information, or knowledge artifacts, that we create and share can help us have better conversations and gain some shared understanding. Our individual sense-making can be shared and from it can emerge better organizational knowledge. For organizations to share knowledge, even organizations of just two people, individuals have to have the bits necessary to put together. Knowledge is like electricity, with many small particles that enable flow. PKM helps to create the bits that will enable the conversational flow.

To really share complex knowledge takes a willingness to listen as well as the time and space to do so. Jon Husband’s definition of wirearchy is an excellent framework for organizations to start with:

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.”

Understanding complexity

As I have suggested, it was the most-regulated in the financial system that were in fact the most disaster-prone: big banks on both sides of the Atlantic, not hedge funds. It is more than a little convenient for America’s political class to have the crisis blamed on deregulation and the resulting excesses of bankers. Not only does that neatly pass the buck it also creates a justification for more regulation. But the old Latin question is apposite here: quis custodiet ipsos custodes? Who regulates the regulators? – Niall Ferguson: The Great Degeneration

Thinking of complex adaptive systems as merely complicated entities that can be regulated like machines can lead to disaster, as Niall Ferguson shows in his recent book. He cites the USA’s Dodd-Frank Act which is aimed at promoting stability in the financial sector but “requires that regulators create 243 rules, conduct 67 studies and issue 22 periodic reports“. Simple principles, such as transparency, would work much better in the complex, and emotion-driven, world of finance. After all, money is a common human fiction that requires us to believe in it. Human systems are complex.

As organizations get larger, their original simplicity gets harder to maintain. Organizations reach their maximum cohesiveness above 150 people, based on anthropologist Robin Dunbar’s research. Beyond this size, knowing everybody in person becomes impossible. Intermediate layers of power and delegation begin to develop with more than 150 people and companies then enter the realm of complication.

Most of today’s larger organizations have a complicated structure. To enable growth and efficiencies, more processes are put in place, just like the financial regulators have done. This is what management schools have been teaching for over half a century. New layers of control and supervision appear, silos are created, and knowledge acquisition is formalized in an attempt to gain efficiency through specialization. To compensate for all of these rules, organizations put significant effort into compliance training. But this too is a myth, as some of the best trained people have been involved in disasters like the BP oil spill and the Enron collapse.

Today’s large, complicated organizations are now facing complex business environments that require agility in simultaneously learning and working. Typical strategies of optimizing existing business processes or cost reductions only marginally improve the organization’s effectiveness. Faster evolving markets challenge the organization’s ability to react to customer demand. Decision-making becomes paralyzed by process-based operations and chains of command and control; thereby decreasing agility. Training, as “the” solution to workplace learning needs, fails to deliver and then gets marginalized, often being the first department to have its budget cut.

Organizations, public and private, need to understand complexity, instead of simply increasing complication through rules, regulations, and control processes. This lack of understanding is the major barrier to success in the network era. As the image below by Yaneer Bar-Yam shows, a networked civilization requires 1) more laterally connected organizations, 2) fewer hierarchies, and 3) more diversity.

historical progressionA schematic history of human civilization reflects a growing complexity of the collective behavior of human organizations. The internal structure of organizations changed from the large branching ratio hierarchies of ancient civilizations, through decreasing branching ratios of massive hierarchical bureaucracies, to hybrid systems where lateral connections appear to be more important than the hierarchy. As the importance of lateral interactions increases, the boundaries between subsystems become porous. The increasing collective complexity also is manifest in the increasing specialization and diversity of professions. Among the possible future organizational structures are fully networked systems where hierarchical structures are unimportant. – Y. Bar-Yam, Complexity rising: From human beings to human civilization, a complexity profile, EOLSS UNESCO 2002

Dave Pollard has a very clear post on how to address complexity from an organizational perspective. He also elaborates on 16 attributes of effective ways to address complex problems. It’s a list worth keeping handy.

As we come to understand complex predicaments better, we’re learning that the best approaches to them are very different from what works best for simple or complicated problems. Because all the variables cannot be known, and because cause-and-effect relationships cannot be established in complex situations, analytical approaches (like systems flowcharts) used in complicated problem-solving simply won’t work.

The best approaches in complex situations are, well, complex. They entail the use of many different techniques, some of which we are not very good at, and some of which are quite sophisticated, novel, or nuanced. – Dave Pollard, Complexity: It’s not that simple

Once we understand that we are dealing with complexity, and that many of our analytical approaches and control processes are not optimal, then we will be able to build structures for the network era. Over-engineering for complex social work environments is counterproductive. Here is an example from our past, that could work in our future.

In the Six Nations culture, power was distributed but the roles were clear. There were specific roles for each of the member tribes, namely Wolves (Pathfinders); Turtles (Problem Formulators); Bears (Problem Solvers). According to the book Systems Thinking: Managing Complexity and Chaos, solving problems and making governance decisions went like this:

  1. Wolves – Set direction, and identified relevant issues
  2. Turtles – Defined the problems
  3. Bears – Generated alternatives and recommended solutions
  4. Turtles – Checked on the potency of the recommended solutions
  5. Wolves – Integrated the solutions, kept the records, communicated the decisions

What is interesting is that there were clear checks and balances to the dominant wolves, as only the turtles could define the problem, and it was up to the bears to recommend solutions. The wolves could only take action on those problems, with a finite set of solutions. It was simple, but it ensured 1) increased lateral connections, 2) limited hierarchies, and 3) increased diversity of ideas.

Talking about the Network Era

Interesting things happen when hyperlinks subvert hierarchy, as the writers of the Cluetrain Manifesto said in 1999. Wikileaks, Edward Snowden, Arab Spring, and the Occupy Movement are just a few recent examples. Spying on entire populations is another network era phenomenon. In education, the current subversion is the MOOC, which has already itself been subverted by corporate interests. In the labour movement we are seeing things like alt-labour as well as a growing shareable economy. Networked, distributed businesses, like AirBNB, are disrupting existing models, with the inevitable push-back as they become successful.

Networks will transform education, business, the economy, and society even further. In the network era, the creative economy will gain dominance over the information and industrial economies. Professional knowledge distribution will move away from institutionalized business schools into networked communities of practice.

The key to a flourishing society in the network era will be distributed sense-making. Self-instruction, the basis of personal knowledge mastery, will be a requirement in a growing number of peer-to-peer networks. Networked learning will give rise to networked decision making. David Ronfeldt articulates this well, with his TIMN [Tribes-Institutions-Markets-Networks] framework. Anyone raised during the past several decades probably understands tribes and institutions and even market forces. This is a triform society (T+I+M). But what happens as we become a quadriform society (T+I+M+N)?

TIMN has long maintained that, beyond today’s common claims that government or market is the solution, we are entering a new era in which it will be said that the network is the solution (e.g., here and here). Aging contentions that turning to “the government” or “the market” is the way to address particular public-policy issues will eventually give way to innovative ideas that “the network” is the optimal solution.

In the network era we have to understand how to become contributing members of networks, for work and for life. This should be a major focus for all professional training and education.

“Reed’s Law” posits that value in networks increases exponentially as interactions move from a broadcasting model that offers “best content” (in which value is described by n, the number of consumers) to a network of peer-to-peer transactions (where the network’s value is based on “most members” and mathematically described by n2).  But by far the most valuable networks are based on those that facilitate group affiliations, Reed concluded. – David Bollier

Without good sense-making skills, the citizenry cannot understand complex issues that affect us all, such as individual privacy versus national security. These issues require networked, human intelligence, not broadcast sound bites, nor ‘learning objects’.

Sensemaking should drive policy. Policy drives decisions. Decisions, of course, need to be informed. If the People don’t know what makes their world go ‘round, the folks on the Hill sure won’t. Globalized governments can’t. – Gunther Sonnenfeld

As David Bollier concludes, “Legitimate authority is ultimately vested in a community’s ongoing, evolving social life, and not in ritualistic forms of citizenship.” Should not education move beyond ritualistic forms of subjects, classes, and certifications and toward ongoing, evolving social learning? How else will we be able to deal with the complexities of this networked, connected sphere that we inhabit?

Jon Husband says that we are all in this together.

The interconnected Information Age is beginning to show us that we’re all linked together – and that the whole system matters.

This principle applies to organizations, to networks of customers, suppliers, employees and communities, to our societies and to the planet.

New language for this principle is popping up everywhere – knowledge networks, intranets, communities of practice, systems thinking, swarming, social software, social networks, tipping points.

Awareness is the key.  Maintain an “open focus”.

Being aware of yourself, others and the effects of your actions and ways of being in relation to others is a fundamental requirement in these conditions.

To thrive in the network era we need to understand networks – social networks, value networks, information networks, etc. Therefore we will need network era fluency.

network era fluencyNetwork era fluency could be described as individuals and communities understanding and being part of global networks that influence various aspects of our lives. For individuals, the core skill will be critical thinking, or questioning all assumptions, including one’s own. People will learn though their various communities and in doing so, develop social literacy. Information literacy will be developed by connecting to many networks. Diversity of our knowledge networks can foster innovation and improve our collective ability to adapt.

Mass network era fluency will keep our knowledge networks social, diverse, and reflect many communities. This kind of fluency, by the majority of people, will be necessary to deal with the many complex issues facing humanity. We cannot address complex issues and networked forces unless we can knowledgeably discuss them. To understand the network era, we need first to be able to talk about it.

The network era has already changed politics, created new dominant business models, opened up learning, and is now changing how organizations operate – on the inside. Once we are able to talk about networks, we will see that many of our current work practices are rather obsolete. From how we determine the value of work, to how we calculate pay for work; organizations will need to adapt to the network era.

I think business leaders and HR departments do not understand this shift, or the fact that this shift is accelerating, so that in a year or two 75% of peoples’ value will be based on their network performance, their ability to contribute to and accept from others. – Stowe Boyd

Do you want to be efficient or effective?

“What is it about the ‘organization’ of the Internet that has allowed it to thrive despite its massive size and lack of hierarchy?

The work of identifying which relationships and connections to build and grow and maintain is dispersed to the nodes themselves — and they’re the ones who know which ones to focus on. That’s why the Internet can be so massive, and get infinitely larger, without falling apart. No one is in control; no one needs to hold it together. It’s a model of complexity. And, like nature, like an ecosystem, it is much more resilient than a complicated system, more effective, and boundary-less. And, like nature, that resilience and effectiveness comes at a price — it is less ‘efficient’ than a complicated system, full of redundancy and evolution and failure and learning. But that’s exactly why it works. “—Dave Pollard: What if Everything Ran Like the Internet?

connected enterprsie network
While a certain amount of hierarchy may be necessary to get specific project work done, networks function best when each node can choose with whom and when it connects. Hierarchies should be seen as temporary, negotiated agreements to get work done, not immutable power structures. Networks enable work to be done more effectively when that work is complex and there are no simple answers, best practices, or case studies to fall back on.

Thinking like a node in a network and not as a position in a hierarchy is the first mental shift required to move to a connected enterprise. The old traits of the industrial/information worker may have been intellect and diligence but networks need people who are creative and take initiative. People cannot be creative on demand. Nurturing creativity becomes a primary management responsibility.

The Internet has finally given us a glimpse of the power of networks. We are just beginning to realize how we can use networks as our primary organizational form for living and working. A connected enterprise has to be based on looser hierarchies and stronger networks.

In networks, even established practices like teamwork can be counter-productive. Teams promote unity of purpose. Sports metaphors are often used in teamwork, but in sports there is only one coach and everybody has a specific job to do within tight constraints. In today’s workplace, there’s more than one ball and the coach cannot see the entire field. The team, as a work vehicle, is outdated. In a complex world, team unity may be efficient, but not very effective.

Exception-handling also becomes more important in the connected enterprise. Automated systems can handle the routine stuff while people working together deal with the exceptions. As these exceptions get addressed, some or all of the solutions can get automated, and so the process evolves. Complexity increases the need for both collaboration (working together on a problem) and cooperation (sharing without any specific objective). Networks enable rapid shifts in the composition of work groups, without any formal reorganization. Networked colleagues, learning together, can close the gap between knowing and doing.

“Many conventional thought leaders conceive of the current global crisis in terms of closing a knowledge gap: if only we could close the knowledge gap (on how to address the current challenges), we would be able to take appropriate action. But true change making practitioners often express the other view: the real gap today is not a knowledge gap, it’s a gap between knowing and doing. That is, the real problem is a collective capacity gap of sensing and shaping the emerging future at the scale of the whole system. If that is so, how can we create new spaces that allow people to co-sense, lean into, and co-shape the emerging future?” —Otto Sharmer: Fire from Within