Variety and diversity

Esko Kilpi made a series of tweets today that I wanted to collect in a single post:

Unlike mechanical systems, human systems thrive on variety and diversity.
An exact replication of behavior in nature would be disastrous and seen as neurotic in social life.
The Internet changes the patterns of connectivity.
The Internet transforms our understanding what “local” is, makes possible wide participation and new enriching variety in interaction.
All human systems are connected and connected systems cannot be understood in terms of isolated parts
The unit of analysis is now communication and emergence, not entities.
The perspective of network science views knowledge as socially created and socially re-created.
Management literature typically emphasizes individuals and locates explanatory power in their personal properties.
The potential of social media cannot be realized without a very different epistemological grounding, a relational perspective.
Independently existing people and things then become viewed as co-constructed in coordinated networked action.

variety diversity

Three Principles for Net Work

Work is changing

The nature of work is changing in our increasingly networked economy. What was considered good, dependable work in the 20th century is now getting automated or outsourced. Automated tellers have replaced thousands of bank clerks but even more advanced jobs are getting automated as we connect the world with computers. The New York Times reported in March of 2011 that armies of expensive lawyers, who once did “discovery” work have been replaced by software programs that do the work at a fraction of the cost. The same applies to computer chip designers, loan officers and tax accountants. Furthermore, any work that can be outsourced is going to the place of cheapest labour, wherever in the world that may be.

The main driver behind this shift is the interconnectivity of the Internet. It enables hyper-competition, destroying geographical barriers for anything that can be digitized. This includes all information and visual products, from creative writing, to photography and video, to radiological images.

For knowledge workers, there is diminishing value in standardized work, as it will be either automated or outsourced over time. Standardized work usually falls into simple or complicated knowledge domains. According to the Cynefin knowledge management framework, developed by Dave Snowden, in the simple domain, “the relationship between cause and effect is obvious to all” while in the complicated domain, “the relationship between cause and effect requires analysis”. For each of these domains, jobs can be standardized and training can be designed based on accepted practices.

But longer term value today resides in non-standardized work that requires creativity, imagination and innovation. This type of work falls into Cynefin’s complex domain where, “the relationship between cause and effect can only be perceived in retrospect, but not in advance”.

Consider that neither training nor education can adequately prepare workers for the complex domain because there are no best practices, only emergent practices that have to be developed as the work gets done.

This is why, in the network era, work is learning and learning is the work.

Known Problems and Exceptions

Look at a knowledge worker and how things can get done in an interconnected enterprise. Any situation can first be examined from the perspective of being a known problem or not. If it is known, then the answer can be looked up or the correct person found to deal with it. That answer may have been automated and put into a digital knowledge base or even outsourced to a company overseas.

Known problems require access to the right information to solve them. This information can be mapped, and frameworks such as knowledge management (KM) help us to codify it. We can also create tools, especially electronic performance support systems (EPSS) to do the work and bypass any background knowledge in order to accomplish the task. This is how simple and complicated knowledge continuously gets automated.

If there is a new problem, or an exception, then the knowledge worker has to deal with it in a unique way. Exception-handling is becoming more important in the networked workplace as standardized work provides no competitive advantage in a hyper-connected economy. These complex exceptions need tacit knowledge to solve them, but tacit knowledge cannot be codified in a KM system or EPSS. Tacit and complex knowledge gets shared when people work together and develop trusted ties. Therefore, exception-handling requires more collaborative approaches to work.

In addition, once an exception is dealt with, it is no longer new. It is now known. As each exception get addressed, some or all of the solution will get automated. The exception boundary is a constantly changing edge that knowledge workers have to negotiate.

Yesterday’s exceptions will be tomorrow’s examples. The challenge is to make sense of both today. Today’s complex work is tomorrow’s merely complicated or even simple work.

Narration, Transparency and Power-sharing

Narration is making one’s tacit knowledge (what one feels) more explicit (what one is doing with that knowledge). Narrating work is a powerful behaviour changer, as long-term bloggers can attest.

In an organization, narration can take many forms. It could be a regular blog; sharing day-to-day happenings in activity streams; taking pictures and videos; or just having regular discussions. Developing good narration skills, like adding value to information, takes time and practice. Narrating work also means taking ownership of mistakes.

For example, just adding finished reports to a knowledge base does not help others understand how that report was developed. This is where activity streams and micro-blogging have helped organizational learning. Workers can see the flow of sense-making in small bits that over time become patterns. Humans are very good at pattern recognition. Narration of work is the first step in integrating learning into the workflow.

Transparency is an easy concept to understand but much more difficult to implement in an enterprise. It means switching the default mode to sharing. This can be enabled by social media, but social media also make the company culture transparent. A dysfunctional company culture does not improve with transparency, it just gets exposed.

With complex work, failure has to be tolerated, as there are no best practices for exceptions (this is why they are called exceptions). Transparency helps the organization learn from mistakes, but only if the mistakes are shared. Organizations cannot know what is known unless the entire business ecosystem is transparent. Workers need to be able find information fast, which is what McKinsey & Company has reported in the last two years as the main benefit of using social media in the enterprise: increasing speed of access to knowledge.

Distributed power enables faster reaction times so those closest to the situation can take action. In complex situations there is no time to write a detailed assessment. Those best able to address the situation have marinated in it for some time. They couldn’t sufficiently explain it to someone removed from the problem if they wanted to anyway. This shared power is enabled by trust. Power in knowledge-based organizations must be distributed in order to nurture trust. But the challenge, as John Hagel describes it, is “One of the big challenges for companies is that unlike information or data flows, knowledge does not flow easily – as it relies on long-term trust-based relationships”.

Jon Husband defines “wirearchy” as; “a dynamic two-way flow of power and authority based on information, knowledge, trust and credibility, enabled by interconnected people and technology.” This is the desired state, but getting there is difficult. Examples of shared-power organizations are growing (e.g. Semco SA; The Morning Star Company; W.L. Gore & Associates) but they are not yet the majority.

Conclusion

These three simple principles of narration, transparency, and shared power should provide enough guidance to motivated leaders in an organization. Implementation depends on the specific context of each organization and the ability to keep things in what I call, “perpetual Beta”.

Power-sharing and transparency enable work to move out to the edges and away from the comfortable, complicated work that has been the corporate mainstay for decades. There is nothing left in the safe inner parts of the company anyway, as it is being automated and outsourced.

The high-value work today is in facing complexity, not in addressing problems that have already been solved and for which a formulaic or standardized response has been developed. One challenge for organizations is getting people to realize that what they already know has increasingly diminishing value. How to learn and solve problems together is becoming the real business advantage.

 

 

Loose Hierarchies, Strong Networks

When I wrote that the only knowledge that can be managed is our own, I wanted to highlight that command & control methods do not work well in this network era that is replacing the industrial/information era. In our increasingly complex work environments, we should take the advice of Snowden & Kurtz and the Cynefin framework, described as “loose hierarchies & strong networks” by Verna Allee.
cynefin networks verna allee

While a certain amount of hierarchy may be necessary to get work done, networks naturally route around hierarchy. Networks enable work to be done cooperatively, especially when that work is complex and there are no simple answers, best practices, or case studies to fall back on. Real business value today is in complex and creative work.

Just imagine if the idea that the only knowledge we can manage is our own informed our organizations and our approach to learning and development?

What would education look like? Perhaps like this school in Bat-Yam where children direct their own learning and involve the entire community to help them achieve their personal learning goals (YouTube video). Loose hierarchies, strong networks.

What would training look like? Perhaps workers would be asked how they learn best and then be supported by the organization to get their work done. Maybe one-hour of compliance training on the LMS would disappear. Loose hierarchies, strong networks.

What would knowledge management look like? Perhaps every worker would be encouraged and supported to develop a personal knowledge mastery system not tied to enterprise software. Each person would have knowledge artefacts that could be connected to the enterprise but not uniquely owned by it. The organization would support the development of PKM skills. Loose hierarchies, strong networks.

What would your organization look like with looser hierarchies and stronger networks? Probably a lot more human.

CSTD Montreal Symposium

I will speaking this week in Montréal at CSTD’s Symposium. Please note there are two Harolds as keynote presenters! My topic is The Future of the Training Department.

Here’s the set up.

Most training activity for the past century assumed that you could prepare people for the future by training them in what had worked in the past. Yesterday’s best practices were the appropriate prescription for today’s problems. That worked when the world was stable and things remained the same over time.

At this point in the 21st century, the game is changing. Complexity and our interconnectivity have rendered the world unpredictable. The orientation of learning is shifting from the past (efficiency, best practices) to the future (creative responses, innovation). Workplace learning is morphing from blocks of training followed by doing the work, to a merging of work and learning. Change is continuous, so learning must be continuous.

To justify its continuing existence, the training department must shift direction in three areas:

  • Embrace complexity and be open to uncertainty
  • Move from a Push to a Pull orientation
  • Adopt new frameworks to support learning in the workflow

I’ll be discussing a potential framework for the future training department this Friday.

One final thought. In the future, it will not likely be called the training department and may not even be a department.

the feral creative mind

“The feral creative mind, in panic to find a truth, jumps back and forth, turning over stones, sniffing the air, all at once, up and down, a niggling doubt removed, another rising, something far away related, something not, a howl in the night, until, through all the crumpled paper in a cluttered mind a light is struck that’s soon so bright a problem fades, and a feral creative mind can live another day.” ~ The Curmudgeon

Thoughts on perpetual Beta

I’ve been putting together a series of thoughts on slides to share my perspectives on work and learning in the network era. I’ve called these presentations visual calling cards. The words on these slides come from the posts I’ve written here over several years.

While discussing my latest slide series with my colleague Jane Hart, we wondered which format would be preferable: a slideshow controlled by the viewer, or slides set to music in a streaming video. Does the music and flow enhance or detract from the presentation?

In the spirit of learning by doing, I’ll let you decide. Feedback is always appreciated.

https://www.youtube.com/watch?v=6r0z7Xaj7aA

Is management on the table?

As you soon as you try to address a problem, it gets more complicated, because that’s what conventional management does; I wrote last week in Managing collaboration, and Paul Chepolis commented:

I couldn’t agree more. How many times has this occurred with leadership teams and organizational leaders. Take a simple problem, lose total perspective, and give it a life that is absolutely unnecessary. We kill ourselves!

As Umair Haque posted on Twitter back in November; “Name a “working” institution. Just one. Better yet, define a “working” institution. See the problem? Management is the problem:

  • Learning Management
  • Information Management
  • Human Resource Management
  • Financial Management; etc.

We falsely believe we can manage the future, based on the past. Researchers have shown  experts do worse than laypeople in predicting the stock market and that these experts do even worse than just flipping a coin.  Managing for the future is a conceit of those in power and our institutions are based on the notion of being able to manage complex systems using mechanistic models.

For any change initiative, there is often an assumption of going from the current state to a desired state, as if there is some kind of linear progression. This can be the false presumption of many a performance analysis. Thinking in terms of networks moves us beyond linear thinking. Dave Gray says we even need to change the way we think about change:

If change is a constant, then the only real sustainable competitive advantage is to be able to grow and evolve continually, to stay ahead of the competitive pack.

You can’t do this with the traditional business structure that we’ve inherited from the industrial revolution. This isn’t like redecorating a room in your house or moving the furniture around. This is a major rehab project that might affect the foundations, the plumbing and everything else. It requires some pretty fundamental rethinking of the way your company is structured, how you execute your strategy, and how you’re going to evolve.

What the world requires today is organizations that are capable of continuous creativity and innovation, that can adapt and evolve on a continual basis; organizations that can generate new businesses, that can sprout and branch into new categories and new industries; that can recover quickly from failures and move on.

I have not seen organizations move toward a more social business model without changing management. That may mean reducing the number of managers; empowering people who are customer-facing; or significantly opening up the workflow and making it more transparent. Management is the problem but management is also the solution, if you change it.

A world without bosses may seem like science fiction but then so did a world without secretaries, typing pools, or switchboard operators not that long ago. To be successful in changing to a networked enterprise, the management  structure must be up for negotiation. This may be the critical question to ask at the beginning of any change (social business, enterprise 2.0, social learning) initiative. Is management on the table? If not, why even start?

Image: William Jay Gaynor: NYC under new management (1913)

“Problems tend to be interdisciplinary”

“If problems are one focal point for collaboration, tools can be another. An example: systems needed to deal with the gigantic data sets generated in finance, astronomy and oceanography. Such tools naturally bring together computer scientists and the statisticians, economists and scientists who might use the data. Goldin points to “crowdsourcing” as a second example of a cross-disciplinary tool, complexity science as a third and (optimistically, I feel) practical ethics as a fourth.” ~ Tim Harford

[emphasis added]

Why is learning and the sharing of information so important?

The Globe & Mail: The diplomacy of knowledge

“Learning together is an important part of living together. While many of our greatest challenges arise through the interplay of complex problems, so, too, do our greatest advances often occur at the intersections between disciplines. Who knows what a greater understanding of quantum physics will be able to tell us about genetics, or what a better grasp of ecology can teach us about global networks?” ~ David Johnston, Governor-General of Canada.