Skilful Minds

Podular Organization and Edge Businesses

May 9, 2013

Podulation -- From Dave Gray's Connected Company

Podular Design — From Dave Gray’s Connected Company

In “Institutional Innovation and Podular Design“ I noted a number of insights from the Aspen Institute’s report, Institutional Innovation: Oxymoron or Imperative?, especially that “the most important innovation challenges are now in fact institutional in nature.” As an aside, let me just note that institutions typically change in dramatic ways only over long periods of time. Think of institutions such as religion, government, the economy, and then consider the various organizational forms in which these institutions took shape across cultures over time.

One insight I have not discussed in previous posts is relevant to understanding the changing way teams work together in organizations and, by implication, in a Connected Company – as outlined by Dave Gray. Richard Adler the Rapporteur for the Aspen sessions, noted that,

“New findings about the power of collective intelligence and about the most effective ways of organizing teams are providing practical insights about how to accelerate innovation.”

To start, let’s consider many companies organize teams and then turn to the “power of collective intelligence” mentioned by Adler to see how the two relate to podular organization. Several research projects in recent years noted the fuzzy boundaries of teams in large organizations. Skilful Minds first noted this phenomena in Who’s on Your Team? Enterprise 2.0 and Team Boundaries , and then a couple of years later in Social Learning, Collaboration, and Team Identity.

In fact, the phenomena of transitory team membership is so pervasive that some people propose we analyze “teaming” rather than teams when talking about how groups organize for cross-functional purposes within, or between, companies. Consider, for example the way, Mark Mortensen summarizes this trend in team dynamics,

First, organizations increasingly require collaborations to be fluid in their organization and composition, able to adapt to the rapid changes of the external environment. Second, collaborations increasingly overlap with one another, sharing resources — including people — as those resources become more limited due to increased competition. Third, collaborations must increasingly take into consideration the different contexts within which collaborators are embedded, including locations, time zones, cultures, and languages, structures, or organizations.

The liminality of such transitory teams results from several institutional challenges including the high degree of misunderstandings that initially occur due to team members rarely having the time to translate the different ways of thinking that people bring from their professional specializations into a mutual understanding of their shared business purpose. Developing mutual understanding requires shared experiences, getting to know who you are collaborating with, not just what they do or their skills profile. In addition, conflicting functional priorities, and often a lack of clear accountability, make it difficult for such teams to remain focused on the business purpose of their collaboration.

Teams were not always organized this way. As Mortensen notes, teams in multi-divisional companies were, at one time, defined by bounded and stable team membership and common goals that interdependent work was required to meet. Cross-functional teams in such companies today are not typically defined by bounded and stable membership, and common goals are still too often related to divisional performance driven by scalable efficiency rather than a connection to the purpose of the business the team is serving.

As Brown and Hagel recently observed:

Over the last 40 years, the emergence of new digital infrastructures and a global liberalization of economic policy have increased the pace of change exponentially. Many companies that were extremely successful in earlier times of relative stability are now finding that their relationship architectures are fundamentally misaligned with the needs of their business today. As the pace of change increases, many executives focus on product and service innovations to stay afloat. However, there is a deeper and more fundamental opportunity for institutional innovation—redefining the rationale for institutions and developing new relationship architectures within and across institutions to break existing performance trade-offs and expand the realm of what is possible.

Institutional innovation requires embracing a new rationale of “scalable learning” with the goal of creating smarter institutions that can thrive in a world of exponential change.

The challenge then remains how to enable organizations to adapt to their ecosystems by enhancing access to flows of knowledge that are likely to result in learning. Leinwand and Mainardi recently observed that permanent cross-functional teams tend to fare better than transitory teams in engaging organizational ecosystems. As they note:

We’ve recently seen a more robust cross-functional construct emerge, one with an overarching organizational structure, based on building and maintaining a distinctive capability. Members of these capabilities teams are assigned permanently to them, reporting there rather than through a functional hierarchy.

Permanent cross-functional teams provide an institutional basis for what Hagel and Brown refer to as edge businesses that develop within large-scale enterprises, noting that such companies “should resist the temptation to confront the core, and instead focus on opportunities on the periphery or at the ‘edge’ of their businesses that can scale rapidly.” I suggest below that Dave Gray’s conception of podular organization affords an important insight regarding how the institutional innovation of edge case businesses can develop and organize. Read the rest of this entry »

Leave a Comment » | Change Management, Collaboration, Enterprise 2.0, Experience Design, Innovation, Learning Experience, Social Business Design, Social Media, Social Networks, Web 2.0 | Tagged: Aspen Institute, business process, Colab, Collaboration, cross-functional teams, distributed teams, Enterprise 2.0, Experience Design, GE, Innovation, John Hagel, John Seely Brown, liminality, podular organization, Richard Adler, Web 2.0 | Permalink
Posted by Larry Irons

Paradigm Shifts, TED Talks, and the Rosetta Stone

May 2, 2013

Rosetta Stone

People discussing the pace of change that organizations face in dealing with connected customers, globalization, competition, distributed workforces, innovation, etc. often assert that the world needs a paradigm shift to a new organizational form. I agree with the basic point. However, the way forward is seldom clear and simple when facing the need for dramatic changes in how we think about organizing what we know into practical changes to meet such fundamental challenges.

Just a side note here though. If you are not the sort of person who enjoys using historical insights to think about current challenges you probably don’t want to read the rest of this post.

Read the rest of this entry »

2 Comments | Collaboration, Experience Design, Innovation, Social Media | Tagged: Egyptian hieroglyphs, Innovation, invention, paradign shift, philology, Rosetta Stone, Social Sciences, TED Talk, TED Thinking | Permalink
Posted by Larry Irons

Business Exceptions Are Not Always What They Seem

April 30, 2013

Common wisdom among thought leaders discussing learning in organizations notes that most of the learning that occurs happens informally, or socially. A previous Skilful Minds post, Social Flow and the Paradox of Exception Handling in ACM , asserted:

people learning at work rely on social, or informal learning, around 80% of the time. Interestingly, I noted in a former post, Social Learning and Exception Handling, that John Hagel and John Seeley Brown contend that “as much as two-thirds of headcount time in major enterprise functions like marketing, manufacturing and supply chain management is spent on exception handling.” It is not coincidence that the two numbers are aligned.

The most basic point to remember is that exceptions to formal business processes require efforts to design a scalable learning architecture that supports content co-creation needed to adapt to emergent challenges and manage the flow of that adaptation through an enterprise’s ecosystem. Whether judging an adaptation successful requires it to result in new formal learning content, i.e. content co-creation, or a new business process, i.e. organizational innovation, or both, remains an open question.

Informal, social learning is key to exception handling since both make up most of what people do in organizing work in enterprises.

Of course, for every generalization there is usually an exception. My posts on business exceptions to this point largely focus on Barely Repeatable Processes (BRP) where informal and social learning assists employees solve issues raised by the need to improvise and handle exceptions to maintain a good customer experience, or solve issues experienced by other stakeholders such as business partners, suppliers, etc.

Recently, while reading General Electric’s A Connected World blog, one case described there led me to think about informal learning and collaboration with a different twist. It caused me to reconsider exceptions and look at the way attempts to make processes better by using working knowledge learned informally also produces exceptions in some organizational contexts.

Read the rest of this entry »

4 Comments | Collaboration, Customer Experience, e-Learning 2.0, Innovation, Learning Experience, Social Business Design, Social Learning | Tagged: ACM, business process, Collaboration, exception handling, General Electric, informal learning, John Hagel, Proficy Workflow, social learning | Permalink
Posted by Larry Irons

Collaboration, Empathy, and Language in Global Teams

March 27, 2013

Panacousticon — Athanasius Kircher (1650)

The importance of empathy for design research, organizational collaboration, and language is one of my major focuses. The relationship between empathy and collaboration is a topic I’ve covered in a range of posts over the past few years. One post in particular, drawing from the Open Empathy Organization concept of Dev Patnaik’s Wired to Care, focused on how empathy improves the overall communication patterns in organizations.

Organizations, for-profit or not-for-profit, which ignore the benefits of using empathy as an organizing principle do so to their own detriment. The point is especially relevant to global companies that mandate a lingua franca. Companies currently mandating English as their lingua franca (ELF) include Daimler AG, Kone Elevators, SAP, Siemens, Philips, Nokia, Alcatel-Lucent, Nissan, Technicolor, Rakuten, and Microsoft in Beijing, among others.

The trade-offs in deciding whether to implement ELF are pretty well known. Pressure from other global players such as suppliers, customers, partners, and competitors who increasingly use English is one. Diversification of organizational tasks across departments in different countries creates bottlenecks without a lingua franca, increasing inefficiencies. A third reason relates to making mergers and acquisitions among global companies smoother in organizational terms.

Actual research into how ELF affects collaboration within distributed teams with members from different mother toungues and national cultures is less abundant. The following discussion looks at some recent research into the way ELF actually affects distributed team members of global companies.

However, before looking at the research, a brief review of the debate about ELF is useful to put the research into a broader context. Most of the points (pro lingua france and con lingua franca) below are drawn from a debate between Maury Peipert and Karsten Jonsen of IMD.

Read the rest of this entry »

7 Comments | Change Management, Collaboration, Enterprise 2.0, Ethnography, Experience Design, Innovation, Social Business Design, Social Networks, Web 2.0 | Tagged: Collaboration, culture, ELF, empathy, English language, Enterprise 2.0, Ethnography, Experience Design, social networking, socio-linguistics, Web 2.0 | Permalink
Posted by Larry Irons

Institutional Innovation and Podular Design

January 31, 2013

Podular Design — From Dave Gray’s Connected Company

In Social is the plural of personal JP Rangaswami contends that institutional innovation is required to achieve the potential that social software offers organizations in general, and for-profit companies in particular. JP’s voice is one of several important contributions to current thinking about innovation. For another example consider the Aspen Institute’s Communications and Society Program. It produced a series of roundtables with the Deloitte Center for the Edge over the past few years. Until the 2011 session the focus was largely on talent development. However, in the most recent session, Institutional Innovation: Oxymoron or Imperative?, the focus was on institutional innovation. It is an interesting change in terminology largely because much of the attention in the learning and development world today is on talent management along with employee engagement as cutting edge concerns. However, as Richard Adler the Rapporteur for the Aspen sessions, explains,

If institutions developed in and optimized for the previous generation of infrastructure are no longer working, then where innovation is most urgently needed is not in product development but in the design of institutions themselves.

Let me just say, I don’t challenge the idea that product innovation cycles are shorter due to globalization, nor that product innovation cycles are important to companies today. The whole focus of customer experience management emphasizes learning from customers while they learn from you, whether through ethnographic research , traditional surveys, or social media analytics, but always with the intent to better fit product/service experiences with the customer’s needs.

My point is that the most important innovation challenges are now in fact institutional in nature. Many companies employ senior executives and managers who use social networks in their personal lives but are either reluctant or stymied about how to integrate similar patterns of communication into their work. This point is reinforced by the recent finding of Stanford University and the Conference Board from a survey of 180 senior executives and corporate directors of North American public and private companies. The lead researcher concluded that, “We know that executives and board members are using social media. However, familiarity with social media is just not translating into systemic use at their companies.”

We continue to see organizational ambivalence over how social relationships contribute to business outcomes. For instance, a recent IBM study reported that only 22% of CIOs surveyed think managers are prepared to incorporate social media into their work. Managers generally fail to acknowledge that social networks contribute to business outcomes and that enabling human connections between stakeholders (employees, business partners, customers) adds value to the company when employees share a substantive understanding of the business purposes served by the enterprise’s organization. How to facilitate that substantive understanding is the biggest question facing anyone considering collaboration and innovation in today’s companies.

As my recent post, Revisiting the Great Innovation Debate contended, it is essential for people working in distant places, whether down the block, across the state, or on the other side of the world, to have a sense of a shared office to develop adaptive capabilities. Indeed, recent research on distributed work by Hinds and Cramton contends that knowing who one is collaborating with is a crucial part of the know how, the practical, institutional knowledge, that enables the adaptive capability organizations widely recognize they need to innovate, as well as deal with exceptions to process through informal and social learning.

The point isn’t totally new, nor is it passe’. As many social software vendors acknowledge, it is important to integrate collaboration tools into the flow of work for them to succeed as useful tools. However, as a previous post noted, Social Software, Community, and Organization, that doesn’t mean the social communication afforded by particular tools is more effective if it supports only formal workplace, i.e. functional, goals. Social software must afford the capability for those using it to develop shared experiences of one another as people, not just corporate role players.

Read the rest of this entry »

Leave a Comment » | Change Management, Collaboration, Experience Design, Innovation, Social Business Design, Social Media, Social Networks, Web 2.0 | Tagged: Business, business exceptions, Conference Board, connected company, Deloitte, great innovation debate, IBM, informal learning, institutional social media, John Hagel, John Seely Brown, JP Rangaswami, know how, knowing who, Knowledge Creation, Knowledge Management, pods, podular design, Richard Adler, social learning, social media institution, social software | Permalink
Posted by Larry Irons

Revisiting the Great Innovation Debate

January 2, 2013

Courtesy of Wonderfully Complex’s photostream on flickr.

An early Skilful Minds post introduced The Great Innovation Debate, focusing on the distinctions between Tom Friedland’s conception that when it comes to innovation the world is flat, and the alternative point of view espoused by Richard Florida that the world is spiky. Meaning that the aggregation of creative people in cities, in proximity to one another, largely drives innovation and economic growth. As our previous post noted, John Hagel added an interesting vantage point on the debate by observing that, “Even though you can participate in innovation from more remote locations, if you want to develop your talent more rapidly than others, you are more likely to be able to do that in a major urban area.” In other words, the debate about innovation is largely a difference of viewpoints on the feasibility of effective collaboration across distributed people who work together to get jobs done. These collective efforts typically exist as cross-functional teams working with business partners, or customers.

The innovation debate was raised again recently when John Hagel and John Seely Brown added substantially to the questions behind it in a post titled, Friedmand vs. Florida and offered some key insights that coincide with key points from the McKinsey survey. The gist of Hagel and Brown’s position goes as follows:

It’s true that globalization has led to increased competition; however, there is also a significant opportunity for companies to access the talent gathering in different spike cities and then connect those people around the world using digital technology infrastructure so that they might leverage the skills of, and learn from, one another. Such a model does not develop overnight; to move from competitors to collaborators, participants must form long-term, trust-based relationships with one another. When these relationships develop, then firms can connect capabilities across spikes, and ultimately, pursue opportunities for innovation and capability building across spikes.

Consider the following observations from recent research on the importance of proximity in how team members relate to one another. A recent Forrestor report, Making Collaboration Work for the 21st Century’s Distributed Workforce (registration required) noted that most information workers (including Gen Yers) prefer email, telephone conversations, and face-to-face meetings. These preferences appear to result as much from limitations in the available collaboration tools as anything else. The Forrestor recommendations are three-fold:

create the sense of a “shared office” among distributed employees
use tools that follow distributed employees on the go
provide collaboration tools that make the work easier, i.e. are integrated into the work.

I’ll get back to the major challenge among the three outlined in the Forrestor report (creating the sense of a shared office) in a following post. First though it is important to note that the Forrestor report’s findings indicate fundamental differences between the opposing points of view in the debate over innovation by Friedland and Florida, especially as they relate to distributed employees (i.e. people who are not colocated). For example, a recent McKinsey Global Survey of 2,927 executives, Making Innovation Structures Work (registration required), offered two key insights dealing with innovation that merit attention in relation to the topic.

“Companies cannot rely on a single innovation function alone to create successful outcomes, it must be integrated with the entire organization.”
“The functions located near talent or target markets have more market success and meet objectives more effectively than others, though they are less likely than the functions at or near HQ to engage regularly with company leaders.”

The first conclusion relates to the McKinsey report’s overall insight that organizations are more likely to succeed with innovation efforts when those initiatives are integrated with corporate strategy as well as benefiting from the engagement and support of company leadership. It implicitly recognizes the ineffectiveness of organizing innovation efforts that occur in corporate silos, such as innovation centers or research & development labs.

On the other hand, the second conclusion recognizes the constraints faced in organizing innovation efforts among distributed employees. Creating a sense of a shared office, or workspace, is fundamental to efforts attempting to integrate innovation and corporate strategy, especially if the corporate strategy involves social business.

In my thinking, the key to Hagel and Brown’s point is that, as Gunter Sonnenfeld recently observed in a post called Relationship Economics, “relationships are the foundation of the social web, and the basis for the flat, seemingly infinite distribution plane that is the Internet.” Rather than focus on whether the world is flat or spiky, serious attention is better paid to how enterprises organize collaboration and what limitations place and cultural context impose on that organizational effort to create innovation capabilities. How to organize distributed collaboration and manage the social interactions involved is the topic that requires discussion when these concerns are brought into focus.

1 Comment | Collaboration, Customer Experience, Experience Design, Innovation, Social Business Design | Tagged: business process, distributed work, flat world, Innovation, John Hagel, John Seely Brown, McKinsey & Company, proximity, richard florida, web2.0 | Permalink
Posted by Larry Irons

On the Roots of Social Computing

November 17, 2011

I recently received an invitation from Mads Soegaard, Editor-in-Chief at Interaction-Design.org to offer those who read this blog an early view of a new chapter on Social Computing in their encyclopedia. I’m a little late on this writing for you to get a pre-publication view of the chapter but I wanted to make sure and point it out for those who take topics like social computing seriously. Thomas Erickson wrote the chapter. To be candid, I didn’t really know much about Thomas until I read it. He seems like a very interesting person. Thomas’ chapter takes seriously the point of an early comment I made in a post here in 2008 on Social Software, Community, and Organization: Where Practice Meets Process, specifically my point that not enough of the influential discussion on the topic took seriously the roots of what it means to do social computing.

The distinctions involved are as old as the study of social interaction in organizations, especially the characteristics of routine work. However, we don’t need to go back to the 1950s when the distinction first emerged in the study of industrial organization to understand the significance of Ross’ point. Indeed, the early 1980s will do. Rob Kling discussed computing as social organization as early as 1982 in Marshall Yovits’ edited series on Advances In Computers. Drawing from the symbolic interactionist tradition, Rob distinguished between a line of work which, he contended, indicates what people actually do in computing work, compared to formal descriptions of that work, or what we might today refer to as business processes. Kling’s work was one precursor to the focus on computer supported collaborative work (CSCW) in studies of group collaboration, most notably developed at Xerox PARC.

The social roots of social computing are important for influentials to keep in mind as they discuss current developments in Web 2.0 technologies, especially their use in the enterprise. The point is not a simple academic exercise of giving credit to what came before. Rather, it is to take note that the distinctions made explicit…regarding practice/process are as old as the modern, hierarchical organization and seem to survive regardless of the way communication technology is applied in it. Those who discuss tensions between social software and Enterprise 2.0, or learning management systems and eLearning 2.0, are pointing to persistent challenges in how organizations work.

Thomas’ chapter provides an excellent overview of the roots, history, and development of the concept of social computing as a concept that promises to stand the test of time regardless of the labels used to describe it, e.g. Web 2.0, Social Media, Social Business, Enterprise 2.0, etc. I recommend anyone involved in current discussions related to compound nouns like social media, social business, social “this” or “that” take a look at Thomas’ chapter as well as the Interaction-Design.org encyclopedia which offers in-depth analysis of such topics.

2 Comments | Collaboration, e-Learning 2.0, Enterprise 2.0, Innovation, Social Business Design, Web 2.0 | Tagged: Collaboration, Enterprise 2.0, Experience Design, IBM, Mads Soegaard, Rob Kling, social business, social computing, Social Media, social network, social software, Web 2.0 | Permalink
Posted by Larry Irons

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