A presentation that I used for a one day workshop with a large Swedish organization.

1. Building the networked, innovative
organization
Dr. Robin Teigland, aka
Karinda Rhode in SL
Photo: Lundholm, Metro
IFL at Stockholm School of Economics
Associate Professor
www.knowledgenetworking.org
www.slideshare.net/eteigland
August 2010

2. Today‟s discussion
Background
Building the Networked, Innovative
Organization
Moving forward at your organization
2

3. When Ideas Have Sex
By Matt Ridley
http://www.ted.com/talks/matt_ridley_when_ideas_
have_sex.html
What is the key message here?
3

4. "...when the rate of change
outside an organization is
greater than the change
inside, the end is near...."
Jack Welch…
4

5. Did You Know 3.0: Shift Happens
http://www.youtube.com/watch?v=cL9Wu2kWwSY
What are the forces at work here?
What does this mean for your organization?
5

6. Human capacity cannot keep up…
Information
Growth and knowledge
Human
absorptive
capacity
Time
Adapted from Cohen & Levinthal 1989

7. ”No one knows everything,
everyone knows something,
all knowledge resides in networks
humanity.”
Adapted from Lévy 1997

8. “When Ideas have Sex” by Matt Ridley
http://www.ted.com/talks/matt_ridley_when_ideas_have_sex.html 8

9. 6 degrees of separation
Everybody is connected to everybody else by no
more than six degrees of separation.
“Small World Phenomenon”
by sociologist Stanley Milgram, 1967

10. Leveraging external resources to find
solutions and solve unsolved problems
From problem solvers to solution finders
10

11. The wisdom of the crowd
Closed Open
Expensive Inexpensive
Complex Simple
Accurate Close enough
Accurate
Hinton 2007

12. History tends to repeat itself….
Innovation, financial crisis, industrial revolution, …
Microelectronics
Internal
combustion
engine
Steam
engine
Third
industrial
revolution?
Late 18th C Late 19th C Late 20th C
Schön 2008

13. A new workforce is appearing…
“Digital Natives” “Digital Immigrants”
Professional loyalty Company loyalty
Work = Personal Work ≠ Personal
Learning=Fun and games Learning=Behind the desk
Prensky 2001, Beck and Wade 2004, Mahaley 2008

14. ..using social media to learn, solve problems,
and build relationships
Adapted from FredCavazza.net

15. Building skills in virtual environments
My CV
•Leading a virtual team of 30 individuals
from across the globe
•Creating and successfully executing
strategies under pressure
•Managing cross-cultural conflict
without face-to-face communication
Teigland 2010 15

16. Moving into the new economy
Craffiti 2010 16

17. Increasing pressure on
“traditional” organizations
Formal organization/ Social organization /
Hierarchy Heterarchy
Teigland et al. 2005 17

18. What is a network?
Actor
•Actors/Nodes
Tie −Individuals
−Teams,
organizations, etc.
•Ties/Links
−Knowledge, trust, tea
m, sit by, dislike, etc.
−Alliance, customer, inv
estment, etc.
A set of actors connected by ties
18

19. Network structure affects performance
Two divisions within Sundlink (Öresund Bridge)
Division 1 Division 2
Stagnant performance Improved efficiency
over time over time
Schenkel&Teigland 2008 19

20. Network structure affects performance
Barsh et al 2007, McK Quarterly 20

21. Comparing performance across firms
Teigland et al 2000 21

22. Hewlett-Packard
 Networking activities recognized and rewarded at
individual and unit levels
 Management support for informal and
formalnetworking activities across internal and
external boundaries
 Best practice task group
 Personal initiatives
 Extensivesocialization: personnel rotation, cross-
office teams
 A visionary organization
− Clearly defined mission:”To make technical contributions for the
advancement and welfare of humanity”
− Supporting core values, e.g., teamwork, helpfulness
− Company-wide goal of World‟s Best Laboratory
Teigland et al 2000 22

23. Avoid creating insular networks
http://www.enronexplorer.com/focus/19185# 23

24. Today‟s discussion
Background
Building the Networked, Innovative
Organization
Moving forward at your organization
24

25. Organizational forms
Hierarchy
Matrix
Network

26. Differences are substantial
Craffiti 2010 26

27. A new mindset: Knowledge networking
Connecting people
so that
collaborate, share
ideas, and create
knowledge

28. A focus on innovation
Incrementalin Small improvements to existing
novation products and operations
Architectural Technological or process advances to
innovation fundamentally change component or
element of the business
Discontinuous Radical advances that may profoundly
innovation alter basis for competition in an
industry
O‟Reilly & Tushman 2004 28

29. IDEO: The Shopping Cart Project
http://www.youtube.com/watch?v=M66ZU2PCIcM
What happened?
What are the keys for success?
29

30. Building an innovative organization
Skarzynski& Gibson 2008 30

31. What are communities of practice?
 Groups of people who come together to share and to
learn from one anotherface-to-face and/or virtually.
 They are held together by a common interest in a
body of knowledge and are driven by a desire and
need to share problems, experiences, insights,
templates, tools, and best practices.
 Members deepen their knowledge by interacting on
an ongoingbasis.
 This interaction leads to continuous learning and
innovation
31

32. DaimlerChrysler-
Engineering technology clubs
Engineering Tech Clubs
Management
Program
Development
Vehicle
Body
Interior
Chassis
Electronics
Electrical/
Platform
Jeep
Truck
Minivan
Large Car
Small Car

33. Organizations supporting communities
 Hewlett-Packard  British Petroleum
 World Bank  Ericsson
 DaimlerChrysler  Siemens
 Shell Oil  CapGemini
 McKinsey & Co.  IBM
 British Telecom  Schlumberger
 Xerox  European Commission
Source: McDermott., 2001 33

34. Role of communities of practice
 Share ideas & insights
− Share tacit, complex ideas & insights
− Help each other solve problems & find innovations
 Connect people across boundaries
− Who knows what
− Home in changing organization & an uprooted society
 Develop & manage materials
− Develop tools, guidelines, templates
− Manage databases
 Own & develop knowledge
− Develop & manage good practice
− Build organizational competence
34

35. CPs are not teams or personal networks
Personal
Personal Community
Community Team
Team
Network
Network of Practice
of Practice
Purpose
Purpose -Share information
-Share information -Solve problems
-Solve problems -Accomplish goal
-Accomplish goal
-Friendship
-Friendship -Share info. & ideas
-Share info. & ideas
-Expand knowledge
-Expand knowledge
Members
Members -Friends &
-Friends & -Mostly volunteers
-Mostly volunteers -Assigned
-Assigned
acquaintances
acquaintances -Permeable boundary
-Permeable boundary -Defined boundary
-Defined boundary
-No boundary
-No boundary
Activity
Activity -One-on-one
-One-on-one -Meetings
-Meetings -Organize tasks
-Organize tasks
-Informal
-Informal
communications
communications
Value
Value -Serendipitously
-Serendipitously -Actively discovered
-Actively discovered -Planned
-Planned
Creation
Creation discovered
discovered
Glue
Glue - -Friendship
Friendship -Value
-Value -Obligation
-Obligation
-Commitment
-Commitment -Job requirement
-Job requirement
Source: McDermott., 2001 35

36. Community membership and roles
Coordinator
Core Group
Active
Peripheral
36

37. Communities cross all boundaries
Competitors
Customers
Suppliers
Company 37

38. Examples of „communities of knowing‟ at
Ericsson
Objectives Communication
Community Type and Members
channel
eRelationship -Inter-organizational -Use internet to design -Virtual
Vodafone -1400 members in 10 joint e-business platform
countries
Competence -Intra-organizational -Ensure sharing of best - Primarily face-
Groups -200 members in 14 practices and to-face
countries commonality
Ericsson - Inter-organizational - Think tank on emerging - Virtual and
Foresight including universities, trends in society, face-to-face
experts, & institutions technology, & consumers
- 600 with core of 40
Ericsson - Intra-organizational -Facilitate inter-project Primarily face-
System - 20 members from 14 learning and innovation to-face
Architect countries -Retain key individuals
Program,
ESAP
38

39. 5,000+ 30,000+
230+
eZ Partners
Customers in Community
130 countries members
• #1 open source content management software
• Customers include UN, Vogue, Hitachi, 3M, MIT
• 75 employees in 9 countries (US, Europe & Asia)

40. Innovation in the eZ ecosystem

41. New forms of organizing
Craffiti 2010 41

42. Building an innovative organization
Skarzynski& Gibson 2008 42

43. http://mediax.stanford.edu/docs/seminars/f09/IntuitBrainstorm.pdf
43

44. Today‟s discussion
Background
Building the Networked, Innovative
Organization
Moving forward at your organization
44

45. What makes these organizations successful?
1. IBM 4. Whirlpool
2. Google 5. General Electric
3. Procter &
Gamble
In groups, prepare max 10 min pptpresentation
Describe the company‟s innovative organization:
1. Leadership and organization
2. Culture and values
3. People and skills
4. Process and tools
Show examples from the company.
Provide specific examples of what you could do at your
organization. 45

46. Building an innovative organization
Skarzynski& Gibson 2008 46

47. Some search tips
Search for
Company name + innovation + organization
 eg “IBM innovation organization”
Additional sites
−Company homepage
−www.slideshare.net
−www.wikipedia.org
−www.youtube.com
47

48. Sharing and learning with one another on FB
 Post any links or relevant information that you find
 Start a discussion with your colleagues
 Invite others inside and outside your organization
to participate
48

49. IBM‟s innovation landscape
Identify the Brainstorm, s Incubate and Validate and Implement,
challenge hare ideas collaborate iterate go to market
IBM lines of IBM internal
ThinkPlace BizTech TAP
INSIDE
business stakeholders
Emerging
Communities
business
of practice
opportunities
Global
Technology Jams Extreme Blue alphaWorks Clients
OUTSIDE
Outlook
Global
Lotus First of a Kind
Innovation Partners
Greenhouse (FOAK)
Outlook
IBM Corporation, 2009

50. Inside IBM, we are all innovators.
ThinkPlace
ThinkPlace fuels innovation across the ecosystem by being IBM's global idea
marketplace. It enables every IBMer to be an innovator by providing a common
forum for sharing, refining and recognizing ideas.
Ideas + Collaboration = Innovative solutions
Open, 24x7 system Ideas discussed and Deliver financial benefits to
for submission of refined by communities IBM, and grow a culture of
ideas innovation by recognizing
innovators
Technology Adoption Program
TAP is the singular, global destination for pilots and prototypes at IBM. We make it
fun and easy to adopt new technology!
Innovators + Early Adopters = Successful innovation
Create and share Try Innovators’ creations Reduce the time, cost and risk to
innovative and provide feedback to transfer successful ideas into IBM’s
technology improve them products, services and internal tools
IBM Corporation, 2009

51. We want to innovate with our clients.
Jams Lotus Greenhouse alphaWorks
A platform for innovation through A live community website where Makes promising software that is not
enterprise-wide clients can try out new Lotus yet commercialized available to the
brainstorming, connecting a large collaboration products. IBMers and early adopter audience outside IBM.
population of individuals across clients exchange ideas, collaborate Forty percent of technologies on the
boundaries to develop ideas around with others, and share information site graduate into IBM products or
business-critical or urgent societal on innovation and collaborative industry standards!
issues. products.
First of a Kind (FOAK) Global Innovation Outlook Global Technology Outlook
A collaboration among Openly sharing IBM’s business and Early identification of
Research, Sales, Clients and Partners technology forecasting processes for significant, disruptive trends, offering
to test innovations on real business the first time, to collaboratively the potential to create new
problems and growth opportunities. pursue opportunities with clients and businesses. Attempts to understand
Seventy-five percent of projects drive the world. how technology can impact
or influence additional business. customers, and directly influences
IBM’s strategy.
IBM Corporation, 2009

52. Innovation…the Whirlpool way
 Makinginnovationcentraltopic in leadershipdevelopmentprograms.
 Settingaside substantial share of capitalspendingeveryyearfortruly innovative
projects.
 Requiringeveryproduct-development plan to containsizablecomponent of new-to-
marketinnovation.
 Training morethan 600
innovationmentorschargedwithsupportinginnovationthroughoutcompany.
 Enrollingeveryemployee in online course on businessinnovation.
 Establishinginnovation as large component of topmanagement„slong-termbonus
plan.
 Settingaside time in quarterlybusinessreviewmeetingsforin-depthdiscussion of
eachunit„sinnovationperformance
 Creating Innovation Board to review and fast-
trackcompany„smostpromisingideas.
 Building innovationportal to giveemployeesaccess to aompendium of
innovationtools, data on company„s global innovationpipeline, and chance to
inputtheirideas.
 Developingmetrics to trackinnovationinputs, throughputs, and outputs.
Gary Hamel „The Future of Management“ Harvard Business School Press 2007, page 30

53. Designing innovation networks
Barsh et al 2007, McK Quarterly 53

54. Proximal collaboration
When people are more than 50
feet apart, the likelihood of them
collaborating more than once a
week is less than 10%.
Allen 1984
54

55. “Managing” networks in your organization
Before After
1. Uncover networks
2. Analyze networks
3. Improve connectedness
Anklam& Welch 2005 55

56. Conduct your own network analysis
http://en.wikipedia.org/wiki/Social_network_analysis_software18
56

57. Conduct your own network analysis
57

58. Conduct your own network analysis
58

59. Trust & reciprocity
are essential for
knowledge
exchange in
networks
59

60. Use social media to strengthen relationships
•#1 Applications Lifecycle
Management (ALM) & business
mashup
•96 of Fortune 100 as customers
•800 employees in 18 countries
across globe
•Facebook Fridays: One hour every
Friday on Facebook to find fun and
connect with co-
workers, customers, family, and
friends
•Average employee age: 46
•29 year old Silicon Valley company
•>90% of employees on FB
60

61. Improving internal operations while increasing
organizational loyalty (Intuit)
http://mediax.stanford.edu/docs/seminars/f09/IntuitBrainstorm.pdf
http://billives.typepad.com/portals_and_km/2009/10/intuit-brainstorm-offers-innovation-management.html

62. "E-connection is
processed in the brain like
an in-person connection."
http://slideshare.net/missrogue 62

63. Build relationships
before you need them,….
…
…while making sure you create
value and foster trust.
63

64. Build relationships with people
at all hierarchical levels
Higher: Help with making decisions,
acquiring resources, developing political
awareness, explaining organizational
activities beyond local setting
Equal: Help brainstorm and provide
specific help, support, and needed
information
Lower: Provide best sources of technical
information and expertise
Look for complementary skills
while maintaining a balance!
Cross, Parise, & Weiss 2006 64

65. ”Birds of a feather flock together”
“Lika barn leka bäst”
People find similar people attractive and develop
relations with people like themselves
Our networks tend to be homogeneous
and not heterogeneous
Marsden 1987, Burt 1990 65

66. Creating a competence management system
 Standardization
− Create common structure and terminology
− Define professional, business, and human competencies
related to global strategy and KM goals
 Don‟t underestimate this task!
 Analysis
− Personal development discussions
− Mapping of present and future target competence levels
for individuals and then for business units
− Defining competence gap at both levels
 Planning and implementation
− Prepare competence development plan
− Implement and evaluate 66

67. Creating competence charts at Ericsson
Professional – Operations, financial, etc.
Business – Markets, core business, strategy, etc.
Human – Interpersonal, communication, KM attitudes, etc.
Individuals in one unit Comparison of units
5
5
4.5
4.5
4
4
3.5
3.5
3 3
2.5 2.5
2 2
1.5 1.5
1 1
Ind 1 Ind 2 Ind 3 Unit 1 Unit 2 Unit 3

68. What gets measured, gets done..
Chan et al, 2008, McKinsey
68

69. Where are the sources of
sustainable competitive advantage?
Networks of
Innovation
relationships
FIRM
#1
Brand &
Reputation
Kaye 1993

70. Where are the sources of
sustainable competitive advantage?
Networks of
relationships Innovation
FIRM
#1
Brand &
Reputation
Teigland 2010

71. Exploitation Exploration
Improving existing Developing new
value creation value creation
activities activities
Adapted from March 1991

72. Threadless:
What came first –
the community or
the company?

73. Leadership moving forward……
Hierarchy Heterarchy
Linear, static, process- Dynamic, integrated
based organization collaboration networks
If you love knowledge, set it free…
Teigland 2010 73

74. Thanks and
see you in world!
Karinda Rhode
aka Robin Teigland
Photo: Lindholm, Metro robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland

75. Appendix
76

76. 1. Build an understanding of this
“new” organizational form
What is a Community?
A new and old kind of organizational form
Old=organic, value-driven
New= to understand dynamics of community
processes and to intentionally develop
communities
77

77. 2. Focus on relevance and define scope
 Business Relevance
− Choose a topic that is core to the business
− Community projects should add value to the
business
 Personal Passion
− Real, current problems
− Find people who care about the topic
 Define focus and scope
− What is the purpose of the community?
78

78. Different types of community purpose
Helping
Best-practice
Knowledge stewarding
79

79. 3. Connect, connect, connect
 Build human relationships
 Ensure an active coordinator –This is crucial!
 Develop an active core group
 Allow time to participate
 Combine virtual connections with face-to-face
events
− Conferences, electronic conferences, discussion
boards
 Work the public & private community space
It‟s all about relationships!
80

80. Public & private community space
Public Space
Events: ~ 30% in the
Meetings, website, t
elecons public space
Private Space
Person to person:
Phone, email, f2f
McDermott., 2001
81

81. 4. Communities are living things
 Design from the inside
− Involve community leaders in design
 Design for different & fluid levels of participation
− Not all must participate to the same degree
 Design for evolution
− Communities evolve in their own direction
 Maintain creative disequilibrium
− Avoid too much management support
− Prevent competency traps
82

82. 5. Ensure technology fits
 Use familiar technology
 Integrate sharing technology with
everyday work
 Customize technology to fit the community
 Change functionality as community
discovers what is valuable
83

83. 6. Track community value
 Have early discussions of value
 Use a conservative evaluation method
−Who needs to know & for what purpose?
−Collect data & tell stories linking activities,
knowledge assets & value
 Broadcast results
Value is always for someone!
84