Management

Management

organizing for the network era

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In my last post I noted that many organizations today are nothing more than attractive prisons. The current organizational tyranny was a response to a linear, print-based world. These organizations are artifacts of a time when information was scarce and hard to share, and when connections with others were difficult to make and required command and control. The network era, with digital electric communications, changes this. Organizations today should be designed more like the internet: small pieces, loosely joined.

Last year I described several of my principles and models for the network era and showed how they related to each other. I would like to put these together in a coherent framework to show how we can design organizations for the network era, instead of ones optimized for markets, institutions, or tribes. The network era needs new structures, not modified versions of obsolete models.

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implementing a triple operating system

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A triple operating system aligns work and learning and has a network perspective. It is based on three interrelated processes, first proposed by Valdis Krebs: Awareness, Alternatives, Action. My perspective is that people in organizations cannot take appropriate action unless they have systems in place to consider alternatives, and are aware of the complex environments in which they operate. While my network learning model [previous post] looks at knowledge flow from the individual’s point of view, the triple operating system is an organizational perspective.

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“We made up these rules, and we can change them”

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Now is the time for a serious rethinking of how we organize in our society: from businesses, to schools, and as communities. We need to base all of our organizations on the principle of temporary, negotiated hierarchies. In this way, citizens can freely cooperate and from time to time, as required, collaborate to get things done. This requires a new approach to organizing work, abolishing the separation of employer & employee, as well as the artificial and unequal division between labour and financial capital. Simultaneously, our educational systems need to phase out teachers and curriculum and focus on everyone becoming a better learner.

Top down leadership, including teaching, is no longer necessary in the network era. As Donald Clark notes, “We have fetishised ‘Leadership’, we’re all leaders now, rendering the word meaningless”. I have noted before that smart cities need smart citizens. The smart citizen is connected: to communities of practice, extended social networks, the community, and society. In the network era rigid hierarchies are counter-productive, as they shut off opportunities for serendipity and innovation, which is why self-organization must be the basis of new organizational models. The market era is ending. The emerging network era needs new operating principles. Now is the time to create these.

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temporary, negotiated hierarchies

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Hierarchies in Perpetual Beta

A Post-Job Economy

The job was the way we redistributed wealth, making capitalists pay for the means of production and in return creating a middle class that could pay for mass produced goods. That period is almost over, as witnessed by 54 million self-employed Americans. The job is a social construct that has outlived its usefulness. Freelancing may be a replacement but often lacks a safety net, and many of the self-employed become pawns of the platform monopolists. We are entering a post-job economy. Our careers will be shorter as our lives get longer. Companies and institutions are no longer the stable source of employment they once were, as even the Fortune 500 companies now have an average lifespan of 20 years, as opposed to 60 years in 1960.

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network management update

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You cannot manage a network. As networks become the dominant organizational form, the way we think about management has to change, as well as the way those in positions of authority try to influence others. In a network society, we influence through reputation, based on our previous actions. This is why working out loud and learning out loud are so important. Others need to see what we are contributing to the network. Those who contribute to their networks will be seen as valuable and hence will have a better reputation and may be able to influence others. Management in networks is fuzzy.

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the printed word at electric speed

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In tribal organizations, influence often comes through kinship. It still does with certain royal families. In institutions, power is exerted through the hierarchy. It is positional. Even today, in a market-dominated society, many people are their institutional job title, and feel naked without it. But those who exercise power through markets can often throw off their job titles and not worry about their formal qualifications, as long as they deliver the goods (and services). [more on TIMN]

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the self-governance maturity model

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“If we emphasize Autonomy, the Node Artifact, Autonomy as the core organizing principle, this will result in individuals, small groups and tribes, forming complex responsive flows e.g. through conversations and flexible ad hoc structures.” —John Kellden

In the triple operating system (Awareness>Alternatives>Action) work gets done by self-governing work teams with a degree of autonomy operating in temporary, negotiated hierarchies. Self-organizing teams are more flexible than hierarchical ones, but they require active and engaged members. One cannot cede power to the boss, because everyone is responsible for the boss they choose. Like democracy, self-organized teams require constant effort to work.  Hierarchies work well when information flows mostly in one direction: down. They are good for command and control. Hierarchies can get things done efficiently. But hierarchies are useless to create, innovate, or change. Hierarchies in perpetual beta are optimal for creativity and to deal with complexity.

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70:20:10 – a useful model

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“essentially, all models are wrong, but some are useful” – George Box

The shift to the network era will not be easy for many people and most organizations. Common assumptions about how work gets done have to be discarded. Established ways of earning education credentials will be abandoned for more flexible and meaningful methods. Connections between disciplines and professions are growing, and artificial boundaries will continue to crack. Systemic changes to business and education will happen. There will be disruption on a societal level as we enter what is looking more and more like a post-job economy.

Learning is a critical part of working in a creative economy. Being able to continuously learn, and share that new knowledge, will be as important as showing up on time was in the industrial economy. Continuous learning will also disrupt established hierarchies as no longer will a management position imply greater knowledge or skills. Command and control will be replaced by influence and respect, in order to retain creative talent. Management in networks means influencing possibilities rather than striving for predictability. We will have to accept that no one has definitive answers anymore, but we can use the intelligence of our networks to make sense together.

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you are only as good as your network

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I’ve worked as an organizational learning & performance consultant since 1994. Every year I get new challenges but usually I have something in my toolbox that fits the requirement. Then one day in 2012 I was asked to solve a problem for a client that I did not have a clue how to even begin looking at. This involved complex knowledge about information technology, organizational behaviour, knowledge management, and social media. The client required a model to determine how their suite of IT platforms aligned with a newly developed learning & performance model that was being implemented across the enterprise. In short, they asked me to “simplify the complexity”.

I was a bit nervous, not knowing where to begin. But I put my faith in my knowledge networks and communities of practice where I had been involved for the past 14 years. I went out to my networks, looking for as wide and diverse opinions as possible. I also checked my collections of social bookmarks and blog posts to see if I had come across anything useful in the past few years. As I found a few models and ideas, I tested them out with some trusted colleagues, including the client team who were keen on solving the problem. Over several weeks, many conversations, and a lot of searching and probing, I developed a working model that the client accepted. It was only through the transparent sharing of knowledge and engaging the networks and communities that I had already developed, that I was able to accomplish the objective. In the end, I realized I was only as good as my network. This is the new world of work today. It requires us to not solely focus on our jobs doing regular work and projects. The network era rewards people who can bring their communities of practice and professional networks to bear on complex problems. Nobody’s individual toolbox is big enough.

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leadership is learning

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About 10 years ago I worked on a project with nursing staff as they changed their basic care model from one that was patient-centric to a model where “nurses engage the person/family to actively participate in learning about health”. The McGill Model of Nursing is learning-centric. This fundamental shift in focus is a prime example of the major organizational change required from both our education systems and our management models, as we transition into a networked creative economy. In an era of ubiquitous connectivity, leadership at all levels and all sectors must be about promoting learning. There is no other way to address the many wicked problems facing us. If work is learning and learning is the work, then leadership at work should be all about promoting learning.

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