Discussions about new currencies in this age of sharing are not new. Many have done research about other means of value compared to money as we know it. During the rise of the internet, we exchange value more easily without the need of money. And then there is this other characteristic what really differs from money: abundance. Nowadays there is an abundance of knowledge, an abundance of people who know how to find people for specific needs, or willing to share experiences, ideas or knowledge about numerous subjects like travel, product reviews, music or even business experiences. The latter is rather difficult for many people. Sharing is all good they would say, but about personal stuff rather than professional. Why share all your knowledge about foreign markets, while you’ve spent all your working life to build it up?
That question is an interesting one to answer. Why would you do that? And if you would, with whom? It can represent your competitive advantage, an advantage that you would like to keep intact. As with many seeming threats, it’s better to seek for ways to use the ‘threat’ as new chances, because if you’re not the one who’s willing to share, others will. So as a knowledge leader, someone who really is good in some specific areas, it can be a good strategy to position yourself that way. There are enough examples of ‘knowledge leaders’ that make use of channels to share their knowledge where it can be copied easily. Books are not the only way, the internet provides faster and wider spreading of the valuable information. Protecting the knowledge is not needed when you want it to be shared. It’s your new marketing channel. 37signals is my favorite example here, they try share their knowledge and strategy as much as possible, and with result.
Another interesting characteristic of sharing is its value. Knowledge (is every form, such as experiences or market knowledge) has value. Value for the sender and it’s recipients. But real value is created when people come back to the sender with unexpected responses which can lead to new insights, new ideas, or combinatorial innovation. See what happens in forums like some on LinkedIn, for example. People find each other, discuss topics, and collaborate which is good for all participants and spectators.
Sharing knowledge is not the same as giving up competitive advantages. In an age where sharing is easy, you’d better use it in your advantage. Of course, first things first, you still need enough money to make a living, but on top of that we exchange more and more without the intervention of real money. So you can ask yourself what our currency really is. It seems to shift more and more away from money as a medium of exchange, to an exchange of knowledge, experiences, which builds relationships and trust, and spurs innovation. 1+1=3. Above post is the result of sharing thoughts with a colleague about being open or closed about you business experiences, and at the same time an argument for trying to share as much as possible to encourage new ways of value creation.
Some interesting reads on this subject:
A term that is used in many circumstances, is empowerment. It is used on so many occasions (both verbally and in written text), that I feel that it is misused more often than that it is used correctly. Or is it just a management fad, like BPR or TQM?
Empowerment refers to increasing the spiritual, political, social or economic strength of individuals and communities. It often involves the empowered developing confidence in their own capacities. [...] Empowerment is the process that allows one to gain the knowledge, skill-sets and attitude needed to cope with the changing world and the circumstances in which one lives.
Ok, that’s what Wikipedia reads. The post of Mike Griffiths recently triggered (or empowered?) me to rethink empowerment. I can recall some papers I’ve read some years ago at the university about the subject. I also remember the debate it triggered there, because it can be interpreted in so many ways. Empowerment can refer to both individuals and communities. It refers to empowering a person or the collective. How does this work? Some questions come to mind here:
- Is empowerment something that benefits only people without any power?
- Who is powerful enough to empower others?
- Who knows what is needed to empower someone? (perhaps only the unempowered)
- Who or what benefits from empowerment?
- Why is the term interpreted in so many ways?
- Is empowerment of an individual or group a prerequisite for self-organization?
Without answering these questions immediately, I’d like to look at some real world examples where I think that empowerment is taking place. These places have some things in common. These places generally have a leader that leads the company quite different that the common leadership practices. They are not alone and unattainable at the top of the pyramid, they make sure that employees are involved not only in their own tasks and responsibilities, they know what their clients want and make sure that their employees know as well. These and some other characteristics are practices by only a few leaders, leaders that dare to make extraordinary decisions, that give control to their employees. Companies that have some similarities with these characteristics are Zappos and Semco, for example. These are companies that make quite ordinary products, have great results, but run their companies not like their competitors do. I’d like to call these companies examples of the real empowering companies. You just feel that you would like to work for them. That makes a company a great company, if you ask me.
To come back to some of the questions I posed earlier in this post, for example the question ‘Why is the term interpreted in so many ways?‘, I can say it depends heavily on who used the term. It can be the manager that tries to make others only work harder instead of really making them really more responsible for what they do, or it can be the employee that feels like not having enough resources or information he or she needs, or to feel more involved. If empowerment is a management fad, is hard to answer. I think it can easily be or become a management fad, but some core-principles that can be attributed to empowerment are really valuable and here to stay. These are universal, humane and part of the science of empowerment.
Another question I asked in this post is ‘Is empowerment of an individual or group a prerequisite for self-organization?‘. Perhaps it is. Empowered employees are able to manage themselves, both individually or in a collective. Maybe it is self-management, however, I prefer to make use of self-organization, for obvious reasons. In the problem statement I stated some time ago, I made an assumption by stating ‘how to [...] empower employees for self-organization?‘. It seems this assumption still stands for me. To be continued…
We all know that hierarchical organizational forms are less and less effective and realistic at the present time. Even in the past this form of organization was being criticized by many. Power and authority are not exclusive for the top of the pyramid. People in organizations form relationships with more people, from inside and outside the organization. Organizational bounds are blurring, and the same is true for the bounds of departments. People choose with whom they interact, communicate, and who they trust. Hierarchical organizational forms do not fit in this picture.
In response to hierarchy, we see many terms and concepts that explain different forms of organization. I already mentioned heterarchies, and there are many more that describe networked forms of organization, such as peer-to-peer and panarchy. Another one, one that Harold Jarche pointed me to earlier in my quest, is wirearchy. At the time Harold mentioned this, I’d never came across it before. Now I have had the time to read more about it and to evaluate this organizing principle, inspired by companies that organize themselves differently with result (such as Semco). So what is wirearchy? According to the ‘father’ of the concept, Jon Husband, wirearchy is:
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.
This definition of wirearchy explains how many people use the web to communicate and organize things. It’s emerging, it’s reciprocal, it’s about trust, it’s about learning and about creating knowledge. And about many more things. The most important characteristic is the flow of information. Information now flows more like water or air, which means it can reach us all very fast, like an epidemic. Key is to negotiate meaning with each other to learn and to gain knowledge, using the continuous flow of information.
Now in my quest I’m trying to pursue self-organization and online collaborative spaces. The concept of wirearchy is very much related. One can choose a place in the network, and by interacting with other peers, one can build (trusted) relationships and learn from the (global) network. The network extends our knowledge. The question I’m always struggling with is, does it really work that way if many organizations are organized like this? I mean, many organizations are still large and top down and have clear boundaries. When many organizations shift towards a wierarchy or network, will it be ‘better’? The opportunities are numerous, obviously. But are these ideas still in a pioneering stage? Which organizations will set the trend, if needed at all? How do we reach the tipping point of organizing in a different way? What is needed (apart from the infrastructure, which is there), and who is needed? Maybe we’re still not ready to reach that point, or better, maybe we are very close to that point, but perhaps we can not identify this yet. The future will tell…
Answering these questions is difficult, and perhaps not even needed. Predicting the future is something from the past. The world is changing too fast for that and uncertainty is too high. So discussing these subjects stays very important, in our way to understand what is going on, to learn from each other, and to stay in a constant dialogue. Is that what organizations should be after? Just have the conversations started, nurture it, and then just never let go of these conversations? Maybe it is. This can spur an organic growth of a constantly changing dynamic network. Therefore I would like to add something to the concept of wirearchy: the dynamic two-way flow should be never-ending, constantly reciprocal, in order to be dynamic and foster learning.
The last six months we had a student from the University of Amsterdam as an intern, Bob Stukart, who did research on innovation in online communities. The aim of the research was to determine how the potential innovative output of innovation-aimed firm-hosted online communities is affected by sociological factors. For us this was relevant, because at Favela Fabric we foster innovation and collaboration. Our moderators try to facilitate this process by various strategies. One of the strategies we use is intervention, and this research contributed to this. By studying the effects of particular behavior on interaction, knowledge is created about possible interventions that may be applied to limit inhibiting behavior and facilitate creative behavior. This knowledge about consequences of particular behavior may also be valuable with regard to knowing what and how things should or should not be said by particular users. Moderators can use this knowledge for the management of such communities. This way the potential innovative output from such communities could be enhanced. His research of course was scientific as well, and this brought him to the following research question:
How do interpretive schemes, facilities and norm behavior affect innovation-related behavior in innovation aimed firm-hosted online communities?
Now I was very much taken into the research with him because I was his supervisor during this time. And that brings me to the most influencial theory which was used, the structuration theory of Anthony Giddens, which is quite abstract. I will save the results of the research of Bob for later, this post will introduce the structuration theory. The last weeks I mentioned the importance of structure, but not too rigid, such as in the post ‘Coordinated Chaos‘. The structuration theory of Giddens (1984) can help us here I think. Structure is defined by Giddens as rules and resources, organized as properties of social systems.
The structuration theory of Giddens is a sociologic one. The relationship between the individual and society is of central concern to this theory. Social phenomena are neither the product of structure or agency alone, but of both. Objective social structures are defined by properties of society as a whole and autonomous human agents are defined as properties of the individual (Giddens, 1984). Giddens contends that structure and interaction are a mutually constitutive duality. This duality is somewhat comparable to the reification – participation duality from the Communities of Practice framework of Wenger.
If we look at the figure above, there are three dimensions of structure, which are signification, domination and legitimation. The three dimensions of interaction are described as communication, power and sanctions. The means by which structures are translated into actions are called modalities, which are interpretive schemes, facilities and norms. These modalities can explain why and how interaction is affected. Without going too much in detail, the first dimension refers to production of meaning (e.g. a person with a white coat in the hospital has the role of a doctor), the second to degrees of power (e.g. a police officers’ uniform enable them to fine somebody who broke the speed limit) and the third to societal norms (e.g. formal clothing during most interviews).
In short, structure is something that can be set, it’s organized at the beginning. According to Giddens, they are allocative and authorative resources, and social and formulated rules. Modality can be seen as the tools, it makes interaction possible, and can be influenced along the way. The result is that social interaction, for example on communities, is influenced by structure and the three modalities interpretive schemes, facilities and norms. The interpretive scheme translates structure into actions.
The research of Bob focuses on how this modalities can be made more concrete by the use of creativity and roles. I believe the structuration theory of Giddens helped him a lot during his study. And I think although quite abstract, the theory might help us as well if we talk about online collaborative spaces, or Enterprise 2.0. I think I will end this post here, as an introduction to the structuration theory of Giddens. And maybe we can discuss this theory here. For example, could it be helpful when designing online collaborative spaces?
Parts of this post were extracted form the thesis of Bob Stukart. A future post will zoom in on his study and the results.
Many discussions about change in organizations are about the demise of hierarchies and the rise of the networks. Sure, this is a trend that can be seen, but there are not many organizations without hierarchy, and I don’t think hierarchies will diminish completely. On the contrary, hierarchies have a valid function and purpose, there are familiar and relatively simple. However what we do see, is that organizations become flatter, layers are becoming thinner or even removed, and people connect more with other people by means of technology.
Karen Stephenson acknowledges this as well, and comes with an interesting point of view: heterarchies (PDF link to article). The heterarchy consists of at least three separate hierarchies that have their own responsibilities, but must collaborate to achieve a collective good that is too complex to achieve on their own. She defines the heterarchy as follows:
A heterarchy is an organizational form somewhere between hierarchy and network that provides horizontal links permitting different elements of an organization to cooperate, while they individually optimize different success criteria.
What she seems to say, is that hierarchies have their disadvantages that are removed by networks, but either the latter doesn’t work in reality or is too complex. She’s seems to search for something is between, the best of both worlds.
According to Stephenson, it is important to have these different hierarchies engaged. Key is collaboration instead of competition. Partnerships between organizations as you wish, or between business units within large corporations. And she admits that this is not easy at all. When you try to map a large organization as a heterarchy, you have to find connectors. The table below compares the market, hierarchy, network en heterarchy on some features. It focuses on its strengths.
I am not looking for a proper definition of heterarchies, or whether you agree with Stephenson or not (well, I’m curious for that of course), but I am more interested in how you can identify people or hubs in an organization that is a connector to other parts of the organization, but not in a hierarchical way. This identification can make such organizational forms less complex. But how do you map these people? Are they certain types of people, who you can trust? Do they have to have certain positions in an organization? Stephenson suggests the following steps:
- Send out a survey where people identify other people that you think are innovative, have integrity, work hard to achieve goals, that you depend upon, and ask people who should be surveyed as well.
- Find connectors by means of interviews. People that score high on the surveys can be persons to ask questions to validate the survey.
- Connect connectors so they can exchange information, knowing that they need each other. They can connect organizational silo’s and collaborate instead of compete.
According to Stephenson there are three types of connectors, or actors in these heterarchies, hubs, gatekeepers and pulstakers. Hubs know a lot of people and act as facilitators, gatekeepers are critical connections between networks and help people to focus, and pulstakers are asked for their opinions and guard the integrity. So if you can map an organization more like a network, or like Stephenson, as a heterarchy (I’d rather call it the informal connections), what’s next? How can these hubs or connectors be more of use to the organization, how can their strengths be utilized better?
Many discussions have passed the past month about organizations. We all agree that organizations are complex. Some say it are complex systems, others that it are complex constellations, and again others that it are complex social arrangements. Organizations are complex for a number of reasons, but the most important reason is that humans are involved. Individual human being which all have unique characteristics and behavior. Behavior that never can be predicted completely, which is tried to be controlled in the past but it’s inevitable impossible to control and undesired if you ask me. To let human beings flourish in their daily life is difficult, not the least because of ourselves. But it can do no harm to not control people. Human behavior is so unpredictable, so unique, so evil and so delightful all at the same time, that’s a given. I will not explain the nature of humanity, not only because I can’t, but our behavior seems to me that it can be quite organic. Like all living organisms, humans are autonomous, have emergent characteristics, can adapt, evolve and learn, all gradually.
When you agree that the most important assets of an organization are us humans as living beings, the most important characteristic of an organization could be that it’s organic. The funny thing is that the term ‘Organic organization‘ exists for about 50 years, but was never proven to exist. It has some similarities with concept of autopoiesis. Wikipedia explains:
For an organization to be organic, people in it should be equally leveled, with no job descriptions or classifications, and communication to have a hub-network-like form. It thrives on the power of personalities, lack of rigid procedures and communication and can react quickly and easily to changes in the environment thus it is said to be the most adaptive form of organization.
However, I think it helps to think as organizations as organic, because it’s too difficult to understand the dynamics of human behavior. And even if we could understand it, we could never act to it, or manage an organization in a way that could take full advantage of human behavior. I also think that the explanation of Chris Rodgers on organizational dynamics, design and development are a very good starting point to understand the diversity of an organization.
We probably all agree on what is important for employees, and on the long term for an organization, is employee happiness. Employees that are happy on their job, are more valuable, more responsible, more motivated and by their positive attitude help the organization be more profitable, what’s good for all employees. Again, that is simplistic put, but organizations, like human beings, are too diverse and complex to understand, but the state of the core assets of organizations should be considered the most important. Maybe even independent on what the goals of the organizations are. Maybe the organization should change it’s goals depending on the people that are with it, because the formation of employees will change continually. Can we learn something from this point of view?
The post ‘Self-organization defined‘ generated so much discussion, it has fed me with many new insights. Thanks so much. Your visions about self-organizing, participation, management, organizations, emergence and others are well argumented and show deep understanding, and luckily you don’t always agree. I hope I was not the only one who learned from the discussion.
One of the things that made me think was that self-organization is something we just do. It can’t be managed or empowered. Employees always self-organize, albeit with given constraints and power relations. Stephen rephrases part of my problem statement with saying:
How can we change the constraints and power relating so that different patterns will emerge from the self-organization?
One of the directions we should be looking at is the concept of participative management. And that makes me think of the framework of Wenger again, which is always about dualities. Of course he applies the framework to organizations as well. For example, this is how Wenger describes the dimensions of organizational design:
- participation and reification – trade-offs of institutionalization
- the designed and the emergent – two sources of structure in organizations
- the local and the global – combining local forms of knowledgeability
- fields of identification and negotiability – institutional identities as key to organizational learning
All dualities are interesting and can be discussed thoroughly, but regarding the post where I tried to define self-organization I will give the most attention to the second duality, the designed and the emergent. An organization is the meeting of two sources of structure, the designed structure of the institution and the emergent structure of the practice. One can question whether the structure of the practice can be designed, or if constraints and rules can be designed, or if the constraints are the structure. Anyway, one of the questions Wenger asks himself here are what the obstacles are to responsiveness to the emergent. In other words, what keeps the emergent from being acted upon? Or how can emergent patterns be recognized?
One of the things we should investigate is the concept of participative management. For example at Semco, they believe that Semco is different from most companies that have participatory management because employees are given the power to make decisions. Even ones, with which the CEO wouldn’t normally agree. That is of course their vision, but I believe that managers that participate not only in the processes he or she is required or expected to do so, but in other processes as well, influence the constraints of emergent behavior by others. These processes or practices can be on the work floor, on other departments, or wherever in the company in order to participate and know more about other aspects of the company. By doing that, these other employees get to know more of management problems and opportunities as well, which can stimulate more emergent behavior, or if you like self-organization, or more initiatives from the self. Does that influence culture (thanks Paula for mentioning Zappo) as well? Can it be called designing by participation? Does it create conflicts that recognizes problems? Does it foster innovation? Does it create more responsibility? These are other questions that pop up by writing this down.