diverse networks, strong relationships

Sharing complex knowledge requires trusted professional relationships. You cannot just throw people together and hope they will work effectively on difficult problems.

“strong interpersonal relationships that allowed discussion, questions, and feedback were an essential aspect of the transfer of complex knowledge” —Hinds & Pfeffer (2003)

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principles of networked management

At Red Hat, the enterprise IT company,  “managers focus on opportunities, not score-keeping”.

‘We also rely on associates’ peers and communities to informally assess how people perform. We pay attention to their reputations and how they are regarded by others. We look at the scope and quality of their influence. The result is that rather than “managing up” to their boss to get a good review, Red Hatters are accountable to the community as a whole.’ – Jim Whitehurst, CEO Red Hat

This is a good example of networked management, as opposed to scientific management (1911), which informed the past century of practice.

Principles of Networked 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 creative work can be fostered. The duty of being transparent in our work and sharing our knowledge rests with all workers, especially management.

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network leadership = adapting to perpetual beta

Even five years ago it was not the norm to work at a distance. Employers wanted to keep workers on-site when it made no sense. Some asked for people to do virtual work, but still required they be on-site. Virtual work is no longer limited to mostly free-agents, as many salaried employees today work at least part-time off-site. It is becoming the norm and bringing change with it.

When people work at a distance, in time or space, an implicit shift occurs. They have to be trusted to get the work done. Management also shifts from measuring time to measuring results. A new culture emerges. It becomes more trusting. Trust is the glue that holds creative organizations together, not rules and regulations.

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a simpler approach to km

A recent posting for a six-week knowledge management contract was posted by the UNDP. When it comes to requests for proposals, if you ask for something, you will definitely get offers to produce it. But is this what they need?

“Conduct initial research on industry standards for KM measurement to inform the design of UNDP’s KM performance measurement, and develop tailored metrics for monitoring and measuring UNDP performance;
Identify and recommend suitable tools and mechanisms to collect the data necessary for KM monitoring;
Formulate standard operating procedures for data collection and monitoring and analysis of KM metrics.” —UNDP

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cooperation for the network era

Clark Quinn recently asked, as have many others, the difference between collaboration and cooperation, and why it is important.

“collaboration means ‘working together’. That’s why you see it in market economies. markets are based on quantity and mass.

cooperation means ’sharing’. That’s why you see it in networks. In networks, the nature of the connection is important; it is not simply about quantity and mass …

You and I are in a network – but we do not collaborate (we do not align ourselves to the same goal, subscribe to the same vision statement, etc), we *cooperate*” —Stephen Downes

Cooperation makes more sense as the term to describe working together in a networked and non-directed relationship. This is an important distinction from collaboration. For example, Jérôme Delacroix also sees cooperation as the suitable term for what we do in networks [in French]. Jérôme explains why his site is called Coopératique and not Collaboratique – collaboration happens around some kind of plan or structure, while cooperation presumes the freedom of individuals to join and participate. He also says that cooperation, not collaboration, is a driver of creativity. It is difficult to be creative while collaborating, because the objective has already been established.

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transparency sets the stage for trust to develop

Business value increases with transparency.

‘In 2006, restauranteur Jay Porter banned tipping in his San Diego restaurant, the Linkery. Instead, he implemented a service charge, and split it—transparently—amongst staff. Porter also ran a second restaurant that still allowed tipping, and this made for a useful comparison.

“Once established, the tipless/service charge model made us more successful in every dimension,” he said. The staff worked as a team, instead of selfishly trying to maximize their own tips. Servers and chefs enjoyed equal status, and staffed turnover dropped. The policy was so successful, says Porter, that it “gave us a huge competitive advantage in the marketplace; this in turn allowed us to serve a much higher quality of food and take lower margins on it.”‘ —FastCoExist

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no organization is an island

Organizations are alive when people can exert their autonomy in ethical practice. This aligns with self-determination theory, which puts forward three basic needs for people: competence, autonomy, and relatedness. Even progressive organizations often miss out on the latter, described by the authors as an, “inherent tendency toward growth development and integrated functioning”. It takes more than a simple organizational structure to afford this relatedness. The organization also must be alive.

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loosening group boundaries

“When a society is too grouped, people do not have any social contact with people from other groups,” [University of Pennsylvania’s] Centola said. “People with the same job all attended the same school, live in the same neighborhood and frequent the same clubs. Their networks do not expand beyond that group.”

Loosening these tight group boundaries means that people’s next-door neighbors may have different jobs or levels of education, but they may still have similar politics or recreational activities. These similarities allow people in different social groups to encourage the adoption of a new complex idea, take neighborhood recycling as an example, which can then spread to other neighborhoods and social groups.

But when group boundaries are eliminated entirely, people have almost nothing in common with their neighbors and therefore very little influence over one another, making it impossible to spread complex ideas. – PhysOrg

The Triple A Organization (Awareness, Alternatives, Action) by Valdis Krebs takes this into consideration, promoting organizational dynamics that connect unique group boundaries but do not destroy them.

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networked unmanagement

What are the fundamental changes necessary to shift the dominant organizational model toward stronger networks and temporary, mutually negotiated hierarchies?

Yesterday I spoke with the founders of a small start-up that has seen good growth and is looking at how best to structure for the future. They realized that most existing management models did not make sense for their case, as they have both for-profit and non-profit divisions, and while small, have operations on two continents. They have been provided with a lot of advice around business models from local government and industry, but they have not seen any models that reflect the reality of the network era: post-job, global, digital, mobile, complex, creative, agile, self-managing, etc.

I said that in my experience, nobody has really figured this out. Frédéric Laloux has found some commonalities for what he calls Teal organizations, and Niels Pflaeging has established some solid principles to organize for complexity. Neither of these approaches is widespread or tested at scale. My advice was that they need to build their own model, based on some general principles, within their specific complex context, which only they can understand.

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leading beyond automation

As we enter the network era, we see that leadership is an emergent property of a network in balance and not some special property available to only the select few. Effective knowledge networks require leadership from everyone – an aggressively intelligent and engaged workforce, learning with each other. Positional leadership, by the authority of some hierarchy, is giving way to reputational leadership, as determined by the myriad feedback loops of the network. To lead in a network, is to learn in a network, as relationships and conditions change. Anyone can show leadership, not just managers or those with ‘high potential’.

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