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What’s Ahead? Complexity,
Collaboration and Organizational
Networks




Victoria G. Axelrod   Milano –New School
                      March 1, 2007

                           Strategy is People in Action
Flow

                                Social
                                Technology is
                                enabling
•  Context – Business           individuals in
   Issue/Strategy               social networks
                                to collaborate
•  Networks
                                freely and build
•  Conversations/Story          collective
•  Q & A                        intelligence.
•  Next Iteration


                                      Strategy is People in Action
Questions
•  What happens when the systems we work
   with are overwhelmingly complex and
   interconnected & collaborative technologies
   bring a stronger external voice to the
   organizations’ work?
•  What are the organizational structures and
   legal issues involved in peer-to-peer
   production as we work in more open
   systems?
•  What is the new conceptual framework for
   OD?
•  What are the practicing changes?
                                      Strategy is People in Action
What is an Organization?

•  An organization is a legal fiction created to
   solve an ill defined problem with an ill
   defined solution.
•  An organization neither has a conscience
   or soul, only the people in the organization
   have them.
•  An organization is a series of
   conversations or dialogues, external and
   internal in pursuit of the solution.
                                      Strategy is People in Action
What Is the Business Issue You are
          Trying to Solve?



         It’s the Strategy Stupid




                                    Strategy is People in Action
Outside – in - World




Science,
Technology and
Human Behavior               Strategy is People in Action
From Pure Hierarchy to Network




                        Strategy is People in Action
Strategy is People in Action
Strategy Context:
Historical Progression to Networks
                                External
                                External
                                Business
                                Value
                                Business Value
                                Creation
                                Creation


                                        www
                                 Social Technology




                                     Strategy is People in Action
Social Technology Today




“corporations will
have to craft new
roles for
themselves and
learn new ways to
operate in order to
stay relevant.”


                                           Strategy is People in Action
Networks Matter
• The complexity of work in today’s
world is such that no one can
understand – let alone complete – a
task alone
    • Individual-individual Team-team
    Company-company
Strong networks are correlated with
health:
    • People with stronger personal
    networks are healthier, happier,
    and better performers
    • Companies who know how to
    manage alliances are more
    flexible, adaptive and resilient
                                        Strategy is People in Action
Patti Anklem – Value Networks 2005
The Web is Us/ing … Us


http://youtube.com/watch?v=6gmP4nk0EOE




                                         Strategy is People in Action
Tapping the Collective Intelligence
Research
   P&G 35% of new products from
scientific networks – drive to 50%.
Hiring
   LinkedIn 2.7 mm people connect to
jobs and employers thru friends.
Production
   LindenLab’s Second Life built by
6000+player hours a day = 1000 person
team.
Marketing
   LEGO used 250 train fans to
promote 10,000 unit sales by “word of
mouse.”
Sales
   Eli Lilly taps “wisdom of crowds” thru
employee virtual stock market to predict
outcome of drug trials before release.

                                            Strategy is People in Action
Lego – Kids Toys




                   Strategy is People in Action
The Firm, The Market, Peer Production

“The economic role of social behavior is increasing”
Yochai Benkler – Yale Law School


Think:

Amazon

eBay

Craig’s List

Cyberrentals


                                               Strategy is People in Action
Yesterday’s Socio - Tech


If a technical system is created at the expense of a social system, the
results obtained will be sub-optimal. Tavistock




                An OD Practice Change




                                                           Strategy is People in Action
Today’s Social Technology




Traditional                                                     Networked
Org Models                                                      Information
Effectiveness                     Information                   Economy
                                  Economy
                Industrial Age

                   Technology                   Social Technology
                                                          Strategy is People in Action
                                 Time Line
“Social Technology”
–  People in their relationship to each other in
   networks
–  People use or re-create the technology to
   further the relationships in the network
–  The network evolves around the use of the
   technology. It is dynamic.
–  Context and content are central to the
   emergence of the network.
–  Finding info, communicating, collaborating
–  Transcends geographic constraints.

                                        Strategy is People in Action
Where We Come Together for Action
Night Club Bands in Boston




                                    Strategy is People in Action
The Big Picture Strategy
   CNET News.com




                      Strategy is People in Action
Collaborative
Intelligence Network




                       Strategy is People in Action
A Revolution in Interaction
     Tacit Workers

    •    Knowledge
    •    Judgment
    •    Experience
    •    Instinct




                       Strategy is People in Action
Wikinomics: How Mass Collaboration Changes Everything

                                            Strategy is People in Action
Assumptions
•  Digital connectedness changes everything from
   politics to shopping.
•  Collaborative technologies enable instant
   access to colleagues, partners, mentors across
   traditional organizational boundaries
•  Interactions messy, interdependent and difficult
   to determine what goes on and why.
•  Approaches more “emergent” than ever.
•  Demands new organizational models


                                        Strategy is People in Action
Thank You!
        Contact Information
     Axelrod Becker Consulting
   vaxelrod@axelrodbecker.com
      www.axelrodbecker.com
         212 – 369 – 2885
21st Century Organization Group Blog
     http://c21org.typepad.com

                                 Strategy is People in Action

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Collaboration, Complexity, and Open Networks

  • 1. What’s Ahead? Complexity, Collaboration and Organizational Networks Victoria G. Axelrod Milano –New School March 1, 2007 Strategy is People in Action
  • 2. Flow Social Technology is enabling •  Context – Business individuals in Issue/Strategy social networks to collaborate •  Networks freely and build •  Conversations/Story collective •  Q & A intelligence. •  Next Iteration Strategy is People in Action
  • 3. Questions •  What happens when the systems we work with are overwhelmingly complex and interconnected & collaborative technologies bring a stronger external voice to the organizations’ work? •  What are the organizational structures and legal issues involved in peer-to-peer production as we work in more open systems? •  What is the new conceptual framework for OD? •  What are the practicing changes? Strategy is People in Action
  • 4. What is an Organization? •  An organization is a legal fiction created to solve an ill defined problem with an ill defined solution. •  An organization neither has a conscience or soul, only the people in the organization have them. •  An organization is a series of conversations or dialogues, external and internal in pursuit of the solution. Strategy is People in Action
  • 5. What Is the Business Issue You are Trying to Solve? It’s the Strategy Stupid Strategy is People in Action
  • 6. Outside – in - World Science, Technology and Human Behavior Strategy is People in Action
  • 7. From Pure Hierarchy to Network Strategy is People in Action
  • 8. Strategy is People in Action
  • 9. Strategy Context: Historical Progression to Networks External External Business Value Business Value Creation Creation www Social Technology Strategy is People in Action
  • 10. Social Technology Today “corporations will have to craft new roles for themselves and learn new ways to operate in order to stay relevant.” Strategy is People in Action
  • 11. Networks Matter • The complexity of work in today’s world is such that no one can understand – let alone complete – a task alone • Individual-individual Team-team Company-company Strong networks are correlated with health: • People with stronger personal networks are healthier, happier, and better performers • Companies who know how to manage alliances are more flexible, adaptive and resilient Strategy is People in Action Patti Anklem – Value Networks 2005
  • 12. The Web is Us/ing … Us http://youtube.com/watch?v=6gmP4nk0EOE Strategy is People in Action
  • 13. Tapping the Collective Intelligence Research P&G 35% of new products from scientific networks – drive to 50%. Hiring LinkedIn 2.7 mm people connect to jobs and employers thru friends. Production LindenLab’s Second Life built by 6000+player hours a day = 1000 person team. Marketing LEGO used 250 train fans to promote 10,000 unit sales by “word of mouse.” Sales Eli Lilly taps “wisdom of crowds” thru employee virtual stock market to predict outcome of drug trials before release. Strategy is People in Action
  • 14. Lego – Kids Toys Strategy is People in Action
  • 15. The Firm, The Market, Peer Production “The economic role of social behavior is increasing” Yochai Benkler – Yale Law School Think: Amazon eBay Craig’s List Cyberrentals Strategy is People in Action
  • 16. Yesterday’s Socio - Tech If a technical system is created at the expense of a social system, the results obtained will be sub-optimal. Tavistock An OD Practice Change Strategy is People in Action
  • 17. Today’s Social Technology Traditional Networked Org Models Information Effectiveness Information Economy Economy Industrial Age Technology Social Technology Strategy is People in Action Time Line
  • 18. “Social Technology” –  People in their relationship to each other in networks –  People use or re-create the technology to further the relationships in the network –  The network evolves around the use of the technology. It is dynamic. –  Context and content are central to the emergence of the network. –  Finding info, communicating, collaborating –  Transcends geographic constraints. Strategy is People in Action
  • 19. Where We Come Together for Action Night Club Bands in Boston Strategy is People in Action
  • 20. The Big Picture Strategy CNET News.com Strategy is People in Action
  • 21. Collaborative Intelligence Network Strategy is People in Action
  • 22. A Revolution in Interaction Tacit Workers •  Knowledge •  Judgment •  Experience •  Instinct Strategy is People in Action
  • 23. Wikinomics: How Mass Collaboration Changes Everything Strategy is People in Action
  • 24. Assumptions •  Digital connectedness changes everything from politics to shopping. •  Collaborative technologies enable instant access to colleagues, partners, mentors across traditional organizational boundaries •  Interactions messy, interdependent and difficult to determine what goes on and why. •  Approaches more “emergent” than ever. •  Demands new organizational models Strategy is People in Action
  • 25. Thank You! Contact Information Axelrod Becker Consulting vaxelrod@axelrodbecker.com www.axelrodbecker.com 212 – 369 – 2885 21st Century Organization Group Blog http://c21org.typepad.com Strategy is People in Action