Disruptive business models already here

The Great Disruption is on. Globalized, kleptocratic powers are trying to control the change by grabbing the monetary system while at the same time the Web has enabled empowering, grassroots initiatives like Kiva.org to spring up. As stock prices plummet and currency fluctuates, even the unwashed masses, who never understood derivatives, are realizing that money has no real value. That’s good because two types of organizations don’t need a lot of money.

First, a lot of Web services start with sweat equity and their service fees fuel organic growth with little need for investment until they are are already proven businesses. Second, natural enterprises, based on community, continue to spring up all over. Starting your own small business is one way to deal with down-sizing. In our town we have witnessed the launch of an organic bakery, a community supported agriculture association and a green builders cooperative in the past few years. All three are growing. At the same time, I’ve seen local web-based businesses going global with niche products and services.

A presentation from CFIB this week showed that 1) Farmers and 2) Small Business Owners are the most trusted professions in Canada. Investment bankers did not even make the list. So who is going to suffer from any future lack of talent, the big guys or the little guys? The big firms can only offer money, while smaller businesses usually offer lifestyle and a sense of doing something worthwhile. If we enter into a period of currency devaluation, then money will be of even less value. The barter system actually works at the local level.

In the networked, always-on workplace, community is king, as it has always been at the local level. Today, organizations, public, private & non-profit, need to connect with their communities. People are already doing this on the Web and it’s becoming unnatural to go to work and not be connected to our communities. Workers only surf the Web or play solitaire when they’re disconnected from their work. Keeping people connected and engaged is the great challenge, especially for larger organizations. This can be a role for the training department, but I’m not sure if most are up to it.

To weather the great disruption a successful organization will have to be more like 1) a web-based service company and 2) a small, community-based business. It will have to be nimble and remain small, or small-thinking. That means breaking down silos and giving autonomy to sub-organizations. It also means sharing and enabling people to connect on a human level, not with some document or policy. The future belongs to an organization that can think like a small business, where your word is your bond, and at the same time act as an inter-connected global citizen.

Social media without the BPR

Last night at ThirdTuesdayNB the conversation came around to how to implement social media in large, bureaucratic organizations without creating a white elephant type of project that takes years to implement. Michele Martin just posted some social media baby steps that have worked for her, particularly:

Static website => blog

Wikis for committee work to replace/reduce e-mail

Other small steps that I think can work without major business process re-engineering (BPR):

  • Use e-mail only for contractual/legal/official communications that need to be tracked, and add an internal Jaiku or Yammer instance of Twitter for business conversations inside the firewall.
  • Use social bookmarks and tags (Delicious or open source variants) to highlight external information, once again to replace e-mail and to open everyone’s browser “favorites” to the rest of the organization.
  • Replace multi-recipient e-mails with internal blog posts and send the link via e-mail or IM. All comments get added to the blog post and if the position holder leaves, the replacement takes over the blog. Great for non-sensitive discussions like training schedules.

New roles for the networked workplace

The best definition of a professional I’ve seen comes from David Williamson Shaffer, author of How computer games help children learn [not really about children] as:

anyone who does work that cannot be standardized easily and who continuously welcomes challenges at the cutting edge of his or her expertise

Let’s face it, no professional can know everything and is dependent on others for knowledge and expertise, hence the growing need for effective networks in our work and learning. Our networks are becoming all-important in our work and this requires an attitude of openness and collaboration, not the norm in industrial corporations nor command and control organizations.

If you agree that networks are more powerful and flexible than closed hierarchies, especially in complex environments, what should the support departments (HR, OD, KM, L&D) do to make their organizations more networked?

Jay Cross suggests some new roles for the networked workplace: “When my colleagues and I advocate cutting back on workshops and classes, we don’t suggest firing the instructors. Rather, we recommend redeploying them as connectors, wiki gardeners, internal publicists, news anchors, and performance consultants.

In looking at our current organizational roles that support the enterprise we should ask, how do these help to strengthen our networks? If they don’t, then it may be time to change, abolish or create new roles.

Management experts recommend Wirearchy

Some of the best known management experts were brought together last year to “lay out an agenda for reinventing management“. Their premise was that 1) management models are important social technologies; 2) that the current models are out-of-date; and that 3) we need to develop more human models for the near future.

The 25 recommendations included more community, democracy and diversity as well as redefining control and leadership. The experts also recommended that organizations, “Reinvent strategy-making as an emergent process. In a turbulent world, strategy making must reflect the biological principles of variety, selection, and retention.” This aligns with our recommendations to restructure the training department based partially on complexity theory [in complex environments we need to develop emergent practices as best & good practices are inadequate].

In reviewing all 25 recommendations it is clear that Wirearchy, as an overarching framework, is a perfect fit:

a dynamic two-way flow of power and authority based on information, knowledge, trust and credibility, enabled by interconnected people and technology

Since we already have a unique and well-researched conceptual framework, we can now get on with how to implement Wirearchy for the workplace.

CSTD Presentation References

Here are the links for my presentation today on The Future of the Training Department for the Canadian Society for Training & Development:

Main Article co-authored with Jay Cross

Slideshare presentation

Wirearchy framework

Cluetrain Manifesto

Cynefin framework

Delicious bookmarks on Personal Knowledge Management

Creative Commons search engine for shareable images

Wikimedia Commons for shareable and copyright-free images

GapingVoid cartoons

In response to questions from participants:

Twitter in plain English

ROI of Social media

Why the Government of Canada needs PKM

David Eaves writes in Why the Government of Canada needs Bloggers:

“One theme that came up was that public servants feel they are suffering from information overload. There is simply so much going on around them and it is impossible to keep up with it all. This is especially true of those in the senior ranks.”

I saw this when I was working on the Advanced Leadership Program with the Canada School of Public Service last year. I can’t discuss any specifics of what I observed, but there is no doubt that senior public servants are inundated with information and that their time is not their own, with many days filled with meetings and other time-consuming activities.

However, blogging is not enough because managing information overload is more a question of attitude than skills. We need to understand that we’ve been in a state of information overload since the 15th Century when there were more books than one person could read in a lifetime (watch Clay Shirky’s interview on FastForward). Blogs, or their equivalent, are only one part of the knowledge management equation.

I think that public servants really need PKM (personal knowledge mastery). PKM is a way to help make sense of the information flows that face us and I’ve written about PKM many times. It is basically a process of:

  1. Sorting & Filtering (e.g. Feed Readers & following on Twitter )
  2. Annotating and Filing (e.g. social bookmarks)
  3. Tentative Sense-making (e.g. Blog posts & Twitter Posts)
  4. Engagement and conversations in these venues and others

The bottom line of web-based PKM is to develop a process of sense-making. It’s much like the discipline of maintaining a professional journal, attending lectures or reading good books and does not negate any of these activities.

So I would say that public servants, especially in senior positions, need more than blogs and that they need their own, individual PKM process, incorporating various web social media tools. If the Indonesian Minister of Defence has been able to maintain a blog for the past fours years, our public servants can do that and maybe a bit more, n’est-ce pas?

Soft skills are foundational competencies

Aaron Chua at Wild Illusions sees financial measurements as no longer able to tell the complete story. He mentions various other areas for measurement, including “talent development” but in a different context from the tired “talent management” perspective we’ve heard for several years:

This means a total redefinition of what talent development means in organisations. The first implication is of course to throw out the idea of having a talent development unit. Instead, we need to think about ways to rebuilt how talent is truly developed via connections to the resources at the edge, connections to different organisational competencies that plugs their gaps, connections that increases cognitive diversity and brings about unexpected learnings et al. All these are rich areas for a new breed of talent development companies to think about and to create new products/services upon.

If you buy into Richard Florida’s concept of the Creative Class (which I mostly do) then it becomes obvious that for organizations to succeed they will have to nurture creativity in their workforce. Creative people are at all levels, including the janitor, and are not ‘human resources’ but individuals who have the capability of  gaining wisdom. From the Creative Class Blog is an article on The Workplace in a Wiki World, with this idea about the changing emphasis for workers:

Therefore, for an individual to succeed in a wiki-corporation or wiki-organization it will increasingly require being more than an engineer, programmer, economist, or accountant. It will also require the “soft skills” to do media relations or “wiki” relations, interacting daily with a range of customers and outside contributors, as well as collaborating with others in the company.

Here’s my speculation on workplace learning in ten years.

Soft skills, especially collaboration and networking, will become more important than hard skills. Smart employers have always focused more on attitude than any specific skill-set because they know they can train for a lack of skills and knowledge. The soft skills require time, mentoring, informal learning and other environmental supports. Once you have the soft skills to perform in a networked workplace, you’ll have foundational competencies.

I think many people will say of course we’ve known this all along, but in a workplace where our networks are as important as our skills, it will be more difficult to hide the fact that you’re a highly skilled jerk.

A Learning Reformation

In — No more “learners” — Jay Cross uses the preacher-congregation metaphor to show the dysfunction in our educational and training systems. Much as the Reformation, sped by the new technology of the printing press, ushered in an era of believing and thinking for ourselves, we have the makings of our own Learning Reformation.

The removal of overt rules (Jay uses traffic signs as an example) can empower people, while thinking of them as just “learners” is condescending and plays to the power game of teacher-students. Let’s face it, especially in light of how our institutions have screwed up the world, we all have to be learning together.

In The future of the training department, Jay and I put forth the idea that in order to help organizations evolve in a complex environment we have to move away from training delivery and focus on Connecting & Communicating. Workers, provided the right tools and resources, can figure out what they need to learn. Tony Karrer has picked up on this, as has David Wilkins.

Here are some suggestions for people in training organizations as they shift to supporting the networked workplace:

  1. Be an active & continuous learner yourself (e.g. personally manage your knowledge).
  2. Be a lurker (passive participant) & LISTEN
  3. Communicate what you observe.
  4. Continuously collect feedback, not just after formal training (yes there’s still a place for some of this).
  5. Make it easy to share information by Simplifying & Synthesizing.
  6. Use Networks as research tools.
  7. Identify learning skills and develop them in yourself and others [thanks, Clark]

All of these skills are dependent on #1. You can read about being a good learner and then put the book back on the shelf, but learning is a process and leadership by example is needed. Be an example.

Q: What’s the best way to use social media in your organization?

A: Start by using them yourself.

Steve Simons recently wrote:

I read with interest your article “The future of the training department”, particularly the last paragraph. As an IT trainer in the UK (I train on a contract basis for large organisations), I’ve often wondered what uses people will get from their learning. Sometimes my general feeling is “none”. Your phrase “shift the focus to creativity, innovation, and helping people perform better, faster, cheaper” really hit the spot with me.

I recommended the book From Training to Performance Improvement to Steve, as it helps get training departments out of the “solution looking for a problem” approach. As much as books like this are a good start, a shift to performance improvement is not enough. There is no single best approach and we need to bring in other frameworks such as connectivism, wirearchy and social network theory. The era of silos is over.

Here’s some advice for anyone in charge of a training department:

No single, sure-fire, cookie-cutter approach can be implemented in a top-down or consultant-driven manner to create a networked workplace performance model that works for “your” organization. Don’t believe the hype that one technology or one method will save you, because no single method in the past has done that. You have the best knowledge about your organization. You may need some direction, support, data, advice or a sounding board, but you have to create your own inter-dependent network.

Institutions follow

Charles Green got me thinking with this post:

Ideas lead technology. Technology leads organizations. Organizations lead institutions. Then ideology brings up the rear, lagging all the rest—that’s when things really get set in concrete.

Put more succinctly:

  1. Ideas
  2. Technology
  3. Organizations
  4. Institutions
  5. Ideology

When we look at the past century of business, the progress has been:

  1. Taylorism
  2. Mass Production
  3. Corporations
  4. Business Schools
  5. Management Theory

I am fairly positive that the industrial era based on cheap energy (oil) is coming to an end. At the same time the Internet has changed the way we work, learn and most importantly, converse. Combine ridiculously easy group-forming with energy scarcity and you get the demise of command & control and mass production & distribution.

We’re now at the stage where we have some new ideas for work (wirearchy, natural enterprises, workplace democracy) and some new technologies (social media, nano-bio-techno-cogno). The next step in this evolution is the new organization. Remember that business schools only followed after the mass production model had been proven. Therefore we cannot expect leadership from our institutions until we have proven a new organizational model. It’s time to get to work.

The future of the training department

Jay Cross and I have written and posted The future of the training department [link updated] on our togetherLearn blog:

Prior to the 20th Century, training per se did not exist outside the special needs of the church and the military. Now the training department may be at the end of its life cycle. Join us for a brief look back at the pre-training world and some thoughts about what may lay ahead.

I’ve also developed an accompanying slideshow, which will be the basis of my CSTD online presentation on March 4th.