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Social Capital: Glue for Sustainability  Victoria Axelrod, William Becker, Jenny Ambrozek Community 2.0, Las Vegas, May 15, 2008  A NETWORK   MINDSET
AGENDA 1. Overview & Introductions 2. Social Capital & Sustainability  3. Personal Network Drawing & Discussion   4. Business Challenge Case 5. Break 6. The CORE Stakeholder Process at work addressing your business challenge  7.  net ∞ WORK – Creating value through facilitating interactions & networks
Open Systems- Network Mindset Quiz   ,[object Object],[object Object],2. Anyone believe you can create business value using social networks? 3. Who’s read:  a) The Wealth of Networks ? b) Wikinomics ?  c)  Mobilizing Minds ? 4. Anyone conducted a Network Analysis?   5. Any practitioners of open systems processes like  Future Search?
Why a Social Capital Workshop, Now?   Cataclysmic shift in marketplace. (“Groundswell”) Potential to use net∞WORKed information to drive business strategy
The sum of all of an organization's relationships  through individual networks.  Social Capital  Sustainable organizations with high social capital contribute positively to the ecosystem in which they operate.
…  in the context of networked organizations, is focused on the ability of the organization to  adapt to a rapidly changing external environment.  Organizations that have a deep understanding of the dynamic  power of networks , both internal and external, have a  greater potential to survive.  Network analysis provides organizations and individuals the tools to assess current networks and  intentionally shape future network patterns .  Sustainability
Multi billion dollar global manufacturing company Our Experience Networks, Analyses, Open System Conference  Challenge Business Result Increase American plant productivity by  6 percent in one year.  Increased productivity by 14 percent in 6 mo. Plant became flagship facility for company’s world-wide operations. Broaden strategic intent, develop new core products and competencies to increase bottom line Multi million dollar not-for-profit global education organization New lines of business with required talent increased bottom line by $23 million. To restart a shut-down energy plant because of management issues, costing $180 Million.   Plant restarted with greater cross-team collaboration, much better management techniques, and involving external stakeholders.  Multi billion dollar nuclear plant Global integrated natural  resources company Improve effectiveness of an expertise network Identified gaps between long term & new members, & value new could contribute
Simon sees DUCKS But, CONSIDER the POND
More than the eye can see No food web. No ducks
http://www.wildeducation.org/programs/nww06/watershed_illustration2.jpg Watershed ECOSYSTEM   Ponds CONNECTED
Partner Networks Organizations as Complex Network Webs Knowledge Networks Communities of Practice Innovation Customer Co- Creation   Value Networks Supply Chains Industry Groups   Alumni Networks Business value created through interaction. Relationships build capital. High Performers
ONA Reveals Formal V  Informal Structure Petroleum Drilling Key middle managers Peripheral people Isolated group Cross R. & Parker, A. 2003
 
Personal Network Drawing Exercise
Sharing Network Insights How many people did you include in  your Network that are important to your job and/organization that  are seldom or never included in strategic dialogues?
Organizations as  Networks  Thought Leaders   Steve Borgatti  University o Maryland UCINet     1988 Rob Cross UVA  Network Roundtable Survey software 2003 “The Hidden Power of Social Networks” co-author  Andrew Parker  (Stanford) 2000 IKO Ronald Burt  Uni. of Chicago Structural Holes  David Krackhardt  Carnegie Mellon 1993- “The Company Behind the Chart”  HBR John Seely Brown  XEROX PARC  1995 “People are the Company: Fast Company” Verna Allee  Value Networks 1997  “The Knowledge Evolution” Valdis Krebs Inflow  1990 Wayne Baker  Social Capital Uni Michigan Ranjay Gulati  Northwestern Relationship assets Larry Prusak & Tom Davenport  Babson building on IBM IKO work Mark Granovetter   Stanford University  2000 Silicon Valley Networks 1974 Getting a  Job:  A Study of Contacts and Careers  Harvard Moreno-   1931- Sociogram  Barry Wellman   University  of Toronto N etworked individualism
Influence Network HOWARD RHEINGOLD KM CLUSTER ETIENNE WENGER KNOWLEDGEBOARD NANCY WHITE ASSOCIATION FOR INTERNET RESEARCHERS ONLINE COMMUNITY REPORT CQSQUARE JERRY ASH LINKEDIN IBM IKO DEBORAH AMIDON ANNE MCKAY HUBERT SAINT-ONGE MICROSOFT IBM JONATHAN SPIRA OPEN SOURCE COMMUNITY KM CLUSTER JIM CASHEL Ambrozek&Cothrel/ Valdis Krebs 2004 “ Looking outside your organization, who do you look to as an inspiring example or a good source of advice regarding virtual communities/teams/networks?  Online Communities in Business  2004  Ambrozek & Cothrel
Architecting Participation STRUCTURAL HOLES and SPACE between the TOOLS 4. Using multiple tools created value From Ronald Burt (2000) we were aware of opportunities to create value around ‘structural holes’ in organisational networks. Hence we paid attention when it was suggested that it is ‘…the space between the tools where things happen’ (N. White 2007, pers. comm., 2 July). ~ Ambrozek, Axelrod & Mulliner 2007,  Knowledge Tree
Language Shifts Classic Work net  WORK Social network enabler Subject Matter Expert Participation Architect Team Emergent group Leader Periphery/Core Hierarchy Structural Holes Closed system Open system Knowledge Leakage End Value Use Value ROI netWORK (resources) = Capital Value Shared Knowledge Matrix Structure Buy-in Co-create All rights reserved. © 2008 Axelrod Becker Consulting, Inc. and SageNet, LLC
What have we learned so far?  Value is created through relationships and interactions. How to put  personal networks to work to address a business challenge How considering the collection  and intersection of personal networks reveals where social capital lies in an organization. Network analysis can reveal the hidden patterns of relationships and opportunities. What else????
HR IT  FIN
The Organizational Challenge   Social Technology Control Time Degree Enterprise systems ,  Blogs Wikis Podcasting , Social Networking  Tagging Ethernet  1973 Web 1.0  1991 Web 2.0   Web 3.0 Search  Links Authoring Tags Extensions Signals as social technology INCREASES Direct control DECREASES Web 3.0
E2.0 S L A T E S Impact Changes Participation & Working Networks “ Change the patterns of participation, and you change the organization. At the core of the 21st century company is the question of participation. At the heart of participation is the mind and spirit of the knowledge worker....” John Seely Brown & Estee Solomon Gray,  “The People are the Company” Fast Company Issue 01, October  1995   http://www.fastcompany.com/online/01/people.html Organizational boundaries Inside & out less bounded
Participation is Individual  & Complex High Engagement Low Engagement Facilitators Roles   Attention   Connection  Participation   Contribution Adapted from Ross Mayfield April 2006
Direct CONTROL lessens
CORE and ONA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Potential CORE and ONA Applications ,[object Object],[object Object],[object Object]
net ∞ WORK   Understanding human networks as resources to be WORKed to create value for organizations
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Continuing the Conversation

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Social Capital: Glue for Sustainability

  • 1. Social Capital: Glue for Sustainability Victoria Axelrod, William Becker, Jenny Ambrozek Community 2.0, Las Vegas, May 15, 2008 A NETWORK MINDSET
  • 2. AGENDA 1. Overview & Introductions 2. Social Capital & Sustainability 3. Personal Network Drawing & Discussion 4. Business Challenge Case 5. Break 6. The CORE Stakeholder Process at work addressing your business challenge 7. net ∞ WORK – Creating value through facilitating interactions & networks
  • 3.
  • 4. Why a Social Capital Workshop, Now? Cataclysmic shift in marketplace. (“Groundswell”) Potential to use net∞WORKed information to drive business strategy
  • 5. The sum of all of an organization's relationships through individual networks. Social Capital Sustainable organizations with high social capital contribute positively to the ecosystem in which they operate.
  • 6. … in the context of networked organizations, is focused on the ability of the organization to adapt to a rapidly changing external environment. Organizations that have a deep understanding of the dynamic power of networks , both internal and external, have a greater potential to survive. Network analysis provides organizations and individuals the tools to assess current networks and intentionally shape future network patterns . Sustainability
  • 7. Multi billion dollar global manufacturing company Our Experience Networks, Analyses, Open System Conference Challenge Business Result Increase American plant productivity by 6 percent in one year. Increased productivity by 14 percent in 6 mo. Plant became flagship facility for company’s world-wide operations. Broaden strategic intent, develop new core products and competencies to increase bottom line Multi million dollar not-for-profit global education organization New lines of business with required talent increased bottom line by $23 million. To restart a shut-down energy plant because of management issues, costing $180 Million.   Plant restarted with greater cross-team collaboration, much better management techniques, and involving external stakeholders. Multi billion dollar nuclear plant Global integrated natural resources company Improve effectiveness of an expertise network Identified gaps between long term & new members, & value new could contribute
  • 8. Simon sees DUCKS But, CONSIDER the POND
  • 9. More than the eye can see No food web. No ducks
  • 11. Partner Networks Organizations as Complex Network Webs Knowledge Networks Communities of Practice Innovation Customer Co- Creation Value Networks Supply Chains Industry Groups Alumni Networks Business value created through interaction. Relationships build capital. High Performers
  • 12. ONA Reveals Formal V Informal Structure Petroleum Drilling Key middle managers Peripheral people Isolated group Cross R. & Parker, A. 2003
  • 13.  
  • 15. Sharing Network Insights How many people did you include in your Network that are important to your job and/organization that are seldom or never included in strategic dialogues?
  • 16. Organizations as Networks Thought Leaders Steve Borgatti University o Maryland UCINet 1988 Rob Cross UVA Network Roundtable Survey software 2003 “The Hidden Power of Social Networks” co-author Andrew Parker (Stanford) 2000 IKO Ronald Burt Uni. of Chicago Structural Holes David Krackhardt Carnegie Mellon 1993- “The Company Behind the Chart” HBR John Seely Brown XEROX PARC 1995 “People are the Company: Fast Company” Verna Allee Value Networks 1997 “The Knowledge Evolution” Valdis Krebs Inflow 1990 Wayne Baker Social Capital Uni Michigan Ranjay Gulati Northwestern Relationship assets Larry Prusak & Tom Davenport Babson building on IBM IKO work Mark Granovetter Stanford University 2000 Silicon Valley Networks 1974 Getting a Job: A Study of Contacts and Careers Harvard Moreno- 1931- Sociogram Barry Wellman University of Toronto N etworked individualism
  • 17. Influence Network HOWARD RHEINGOLD KM CLUSTER ETIENNE WENGER KNOWLEDGEBOARD NANCY WHITE ASSOCIATION FOR INTERNET RESEARCHERS ONLINE COMMUNITY REPORT CQSQUARE JERRY ASH LINKEDIN IBM IKO DEBORAH AMIDON ANNE MCKAY HUBERT SAINT-ONGE MICROSOFT IBM JONATHAN SPIRA OPEN SOURCE COMMUNITY KM CLUSTER JIM CASHEL Ambrozek&Cothrel/ Valdis Krebs 2004 “ Looking outside your organization, who do you look to as an inspiring example or a good source of advice regarding virtual communities/teams/networks? Online Communities in Business 2004 Ambrozek & Cothrel
  • 18. Architecting Participation STRUCTURAL HOLES and SPACE between the TOOLS 4. Using multiple tools created value From Ronald Burt (2000) we were aware of opportunities to create value around ‘structural holes’ in organisational networks. Hence we paid attention when it was suggested that it is ‘…the space between the tools where things happen’ (N. White 2007, pers. comm., 2 July). ~ Ambrozek, Axelrod & Mulliner 2007, Knowledge Tree
  • 19. Language Shifts Classic Work net  WORK Social network enabler Subject Matter Expert Participation Architect Team Emergent group Leader Periphery/Core Hierarchy Structural Holes Closed system Open system Knowledge Leakage End Value Use Value ROI netWORK (resources) = Capital Value Shared Knowledge Matrix Structure Buy-in Co-create All rights reserved. © 2008 Axelrod Becker Consulting, Inc. and SageNet, LLC
  • 20. What have we learned so far? Value is created through relationships and interactions. How to put personal networks to work to address a business challenge How considering the collection and intersection of personal networks reveals where social capital lies in an organization. Network analysis can reveal the hidden patterns of relationships and opportunities. What else????
  • 21. HR IT FIN
  • 22. The Organizational Challenge Social Technology Control Time Degree Enterprise systems , Blogs Wikis Podcasting , Social Networking Tagging Ethernet 1973 Web 1.0 1991 Web 2.0 Web 3.0 Search Links Authoring Tags Extensions Signals as social technology INCREASES Direct control DECREASES Web 3.0
  • 23. E2.0 S L A T E S Impact Changes Participation & Working Networks “ Change the patterns of participation, and you change the organization. At the core of the 21st century company is the question of participation. At the heart of participation is the mind and spirit of the knowledge worker....” John Seely Brown & Estee Solomon Gray, “The People are the Company” Fast Company Issue 01, October 1995 http://www.fastcompany.com/online/01/people.html Organizational boundaries Inside & out less bounded
  • 24. Participation is Individual & Complex High Engagement Low Engagement Facilitators Roles   Attention Connection Participation Contribution Adapted from Ross Mayfield April 2006
  • 26.
  • 27.
  • 28. net ∞ WORK Understanding human networks as resources to be WORKed to create value for organizations
  • 29.