A framework for Management Innovation exists .. we just don’t call it “Management”

Summary

Management innovation is available from the world of organizational development, as its principles and dynamics are closely aligned to Hamel’s suggestion that “activities will still need to be coordinated, individual efforts aligned, objectives decided upon, knowledge disseminated, and resources allocated, but increasingly this work will be distributed out to the periphery“.

Moonshot(s) (G. Hamel’s term for big goals)

- Retool management for an open world

- Humanize the language of business

- Rebuild management’s philosophical foundations

Problem

What is today called Enterprise 2.0 and/or Social Business can also be seen as the emergent stage of the intersection of significant advances in information technology, management science applied to business process and the analysis and control of operational activities. These forces and factors are converging in today’s workplaces, wherein a continuous flow of information is the rule rather than the exception. Thus, it’s essential to cast a critical eye on the fundamental assumptions of work design and how work is managed. The core assumptions embodied in widely-used methodologies today still present work as “static sets of tasks and knowledge arranged in specific constellations on an organization chart” (see all major job evaluation methodologies for more detail).

It’s getting clearer and clearer today that the capabilities and dynamics of what started in the consumer realm as social software … those funny things called blogs, and wikis, and widgets stitched together into and by web services, and now significant integrated “social” collaborative platforms … are finding (and have found) their ways into the workplace.

That they have migrated to the workplace makes sense. People have always (at work) been creating and building up “… knowledge through exchanging information, talking and arguing and pointing out other ideas and sources of information and ways to do things.” Such services and tools and the reasons for which people use them are the means by which general human activity (purposeful and otherwise) translates to the online environment.

The labels above are said to denote a more interactive, less static environment. Whether we like it or not, we are passing from an era in which things were assumed to be controllable (able to be deconstructed and then assembled into a clear, linear, always replicable and thus static form) to an era characterized by a continuous flow of information. Because it feeds the conduct of organizations large and small, it is a flow that necessarily demands to be interpreted and shaped into useful inputs and outputs.

The methodologies still in use today generally did not foresee working with networked information flows, and thus the way work is designed and managed does not really address how it could or should be managed.

Solution

We need to revisit the fundamental principles of work design AND the basic rules used to configure hierarchical organizations in which the primary assumption is that knowledge is put to use in a vertical chain of decision-making.

I am not arguing that we need to replace hierarchy holus-bolus. Rather, I am suggesting that the capabilities of information systems combined with social computing capabilities and two decades of experience with team development and organizational development processes can permit centralization (read hierarchy) where and when necessary, and networked configurations where and when necessary … both centralization and decentralization.

It’s critical that leaders and managers understand this at a fundamental level .. not only with respect to IT enterprise architecture and business processes, but also in terms of what it means for the work design and the organizational culture initiatives that pertain to any given organization.

Centralization and decentralization operating simultaneously and / or in parallel means that some aspects of work activities will be relatively more predictable and controllable, whereas others (that are equally important) will be subject to both the vagaries and magic of human connection, collaboration and relatively predictable group and individual dynamics.

Practical Impact

- Changes to organizational structure that reflect the operations and dynamics of people connected in networks

- Changes to fundamental assumptions about organizational structures

- Fundamental changes to philosophy, practices and methods of managing peoples’ activities at work

- New metrics that reflect how work is planned, carried out, overseen and put into use within and by networks

Challenges

- Mental models

- Mindsets derived from said mental models

- Practical experience and references

- Tolerance for and/or acceptance of ambiguity and uncertainty

- Unfamiliarity with and / or disbelief in openness or transparency

First Steps

The necessary first steps are underway “out there” in the rapidly-growing arena of Enterprise 2.0 and / or Social Business experiments.

I say ‘experiments’ because it’s my current opinion that there’s relatively little real organization design and organizational change experience or understanding amongst the wave of technologists and analysts who are promoting the changes towards what may become a new paradigm for networked knowledge work. I’d be graciously apologetic if it were shown to be otherwise.

That said .. the (ongoing) changes are real, the Internet and social computing are not going away, and economic value is (still) increasingly being derived from near-tangible and non-tangible sources.

There’s lots of adaptation required still .. most of all to management models and mindsets.

Credits

The work of …

Harold Jarche, Gary Hamel, Charles Handy, Peter Drucker, Stan Davis, Chris Meyer, Karen Stephenson, Valdis Krebs, Yochai Benkler, David Weinberger, Eric Trist, Russ Ackoff, Marvin Weisbord, Edgar Schein, Chris Argyris .. to name a few (and Bill Passmore, Richard Boyatzis, Peter Senge, Peter Block).

Too many to catch them all here, actually …
.

What is Wirearchy ?

Over the past 10+ years, thousands of people have asked me “what is wirearchy ?“.

There’s one common misconception that I’d like to clear up first, which is that wirearchy is mainly about technology. If anything, wirearchy is about the power and effectiveness of people working together through connection and collaboration … taking responsibility individually and collectively rather than relying on traditional hierarchical status.

Most people today know that the Internet and the Web have had a lot of impact on our daily lives .. we’ve seen the rise (and sometimes fall) of initiatives like Napster, Amazon, eBay, Dell, blogging, Flickr, MySpace, YouTube, Facebook, Twitter, advertising’s ongoing (and increasingly contentious) shift to the Web, and the rise of a vast networked range of political and information-gathering and dissemination activities.

In that context of ubiquitous impact, reams have been written about the erosion of the effectiveness of command-and control as the dominant model for leading and managing purposeful organized activities in business, education, government and governance, politics, culture and the arts … all the areas in which humans act together to create and get things done.
That mode of getting things done is evolving from top-down direction and supervision to champion-and-channel … championing ideas and innovation, and channeling time, energy, authority and resources to testing those ideas and the possibilities for innovation carried in those ideas.

Wirearchy is an (emerging) primary organizing principle. As such, it can be used to better understand, instantiate and act towards effectiveness in an interconnected networked world.

The working definition of 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”.

I believe the shifts in power and authority are showing up in clear ways all around us, for better and for worse. The shift can be seen in daily events and in the ways peoples’ working lives and behaviours are changing, in the ways they are becoming more or less well-informed, and in consumption patterns for much of what they are buying and using. Examples are reported on regularly, as the impacts of living in the interconnected digital infrastructure of an electronic age take root. It is clearly implied by the phenomenon of e-everything.

Interconnected access to information, knowledge and instantaneous communications provides the modern equivalent to the dynamics created by the invention of the printing press – information distributed (much) more widely and in many cases today almost instantly … certainly at speeds that allow the rhythm of a conversation back and forth but in ways that leave a pragmatic actionable record of that conversation.

Today’s rapid flows of information are like electronic grains of sand, eroding the pillars of rigid traditional hierarchies. This new set of conditions is having real impact on organizational structures and the dynamics these structures generate, contain and also block. In turn this impact is growing into massive change in the ways we do things and behave.

Some of this is exhilarating, and great. Some of it is not. Some of it is about greater confusion, stress and frantic action. Some of it is about clarity, calm and right action. Polarities are appearing everywhere. Different dimensions and dynamics of influence, power and control are emerging at various nodes of interconnected networks of purpose.

The last thirty years have been about the building of the technical infrastructure that provides an interconnected world. The integrated platform for a transformation to economies and a world driven by the communication and exchange of information is now solidly in place.

The next fifty years will almost certainly be about learning how we will behave in an interconnected world and workplace. The dynamics of wirearchy are similar to, and different than, traditional hierarchy – yet need effective and transparent hierarchical structure and action to work smoothly.

What Wirearchy Means For You

As a Leader

Become deeply aware of and truly mindful about the scope and reach of interconnected markets and flows of information. Understand how and why people are connecting, talking, sharing information. Be prepared to listen deeply, be responsible, be accountable and be transparent.

As a Manager

Become knowledgeable about online work systems and how the need for collaboration is changing the nature of work, generally – and the nature of managerial work specifically. Learning how to be an effective listener and coach is all-important.

As an Employee or Networked Collaborator

Become more aware of the changing nature of work, and the traditional structures of authority. Develop a clear understanding of how to be both empowered and valuable and of service. Clarify your passions, interests and skill sets and ensure you are able to describe them clearly to others. Understand how to navigate on one’s own through a constantly shifting landscape of work.

As a Citizen

Understand the possibilities and responsibilities inherent in open and public dissemination of information. Understand and exercise the responsibilities of citizenship in a country and community. Understand how to have influence via electronic participation and collaboration.

Responding to the Conditions of Wirearchy

Responding to the interconnected and interlinked conditions of wirearchy is about adapting on a continuous basis based on real-timefeedback to an environment that keeps changing. This means:

- being aware of, and identifying, the changes and preparing for more change on an ongoing basis. Learn to “go with the flow” of life.
- setting a direction for a desired future, and ensuring that the desired future can be clearly articulated,
- translating the details of that vision into goals,
- learning how to fulfill the goals,
- finding and acquiring the necessary resources, and taking the necessary actions,
- and opening to and operating in ongoing and constant feedback loops

As the impacts of information technology have penetrated more deeply and pervasively into the workplace, the nature of work has shifted. The first responses were a general flattening of organizational structure and a focus on developing and implementing teamwork.Today, new responses are emerging thick and fast – and there is a pattern to them. Clear trends are emerging about how to respond:

Architectural Considerations (Technology and Social)

Flexibility, responsiveness and ease-of-use are critical design principles. Do the hard work of defining what that means for, your work and your organization. Too often legacy mindsets and the inability to “let go” of power and control mitigate against the discipline necessary to experience real and sustainable transformation.

Dialogue – Purpose, Meaning and Values

People have an intrinsic need to find meaning and experience community in their work. The responses identified by OD (organizational development theory and practice) during the past thirty years are more important than ever – yet it seems that the “soft stuff” is still the “hard stuff”. Finding the time, and breaking through the resistance, to work on dialogue is as difficult – and necessary – as ever.

Scenario Planning

In an increasingly interconnected and rapidly-flowing world, linear cause-and-effect planning is showing its age. Involving people in creating stories about what might happen, and then providing backgrounds for choosing possibility based on a preferred future, is gaining in awareness as an effective tool for responding to ongoing uncertainty.

Strategic Conversations and Workshops

Look into how to use conceptually integrated methodologies and tools,such as Organigraphs, Balanced ScoreCard, Strategy Maps, Strategy Canvas, Network Analysis, Wirearchy Blueprinting, Sensemaking, and other approaches emerging out of this new set of conditions. The tools listed above are all useful means of engaging in purposeful conversation about the “why” and “what” of grounding the theory of a business or organization and implementing the disciplined activity necessary to realize positive outcomes.

Participative Work Design – Fluidity, Responsiveness, Mass Customization of Work

The people on the front lines, at the “coal face” of an organization’s interaction with customers, are best equipped to make strategies real and effective. Participative Work Design has proven its value, time and again, when organizations find the courage to address true empowerment.

Knowledge Management – Blogs, Wikis, Widgets, IM, Web 2.0

Knowledge Management and now Enterprise 2.0 and Social Business are “buzz words” that won’t go away. And for good reason – the floods of information and knowledge unleashed by the confluence of software and the Internet won’t stop. People now increasingly work with flows of information and knowledge. Learning how to work with (and within) these flows is mission-critical – riding the flow will require putting the dynamic of champion-and-channel to effective use.

Team Work, Team Building

Teams are here to stay. Interconnectedness, and the interdependency of integrated flows of information and knowledge demand cross-functional perspectives, the ability to carry out and receive smooth hand-offs, and the agility to work in the time-bending conditions of asynchronous social computing.

Emotional Intelligence, Coaching

Getting things done in the “permanent white water” of the interconnected world demands higher levels of personal and interpersonal effectiveness. As a generality, less-and-less often now will people accept authoritarian directives based on position and status. And if they do, it leads quickly to fear, resentment, disengagement and erosion of effectiveness.

Collaborative Technology

An integrated infrastructure is often in place in today’s organization, and there are definite trends (SOA, SaaS, cloud computing, opensource social networking and communications platforms and services) that are creating a pattern for the infrastructure of our activities and what we will use it for and do with it. Collaboration is fundamental to getting things done – and yet, there are still many examples of territoriality and the division of work into functional silos. Silos of expertise and activity have their uses, and it is also the case that the limitations of siloed information and communications have been concerns for at least twenty years – it must be addressed when the threads of connection run throughout the organization and its links with customers, employees and suppliers.

E-learning (increasing Informal or Social Learning)

Ongoing learning is too obvious as both an enhancement of effectiveness and a time-and-cost saver to ignore. The very large increases in the penetration and spread of social computing and the evolution of its philosophy and principles and the approaches to experimentation and implementation are being chronicled, and are subjected to significant peer review and dialogue in professional circles of conversation. The patterns of organization and activity are being discovered project by project, initiative by initiative. The interactive social web’s influence on learning will, I believe, in time show itself to be revolutionary through placing the learner squarely in the center of her or his world, but subject to a an ever-shifting mosaic of context that, because of community needs, imposes constraints(both positive and negative) on how we interact.

Talent Management

All of the above responses point to new dynamics of relationship between employees and organizations. The world is moving too fast for the primary relationship to remain the “master-servant” archetype of the Industrial Age.

The Fundamental Sociology of Networked Knowledge Work

An adult-to-adult model (rather than parent-child) is emerging and is based on the fundamental of what was known as Transactional Analysis, developed in the 1970′s. This is the heart of the matter. Adult people do not want to be slaves, chattel, or treated as if children needing ongoing guidance. In an interconnected world, we will all need to take responsibility for why and what it is that we do, and we will perforce do this in a context of co-creation with other people.

Wirearchy – “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.”

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