Social Capital: Glue for Sustainability

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

How many people have Facebook Profiles?

Use LInkedIn?

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 of Kentucky LINKS Center 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 1992 “Structural Holes “ David Krackhardt Carnegie Mellon 1993- “The Company Behind the Chart” HBR John Seely Brown XEROX PARC 1995 “ People are the Company” 2005 “The Only Sustainable Edge” Verna Allee Value Networks 1997 “The Knowledge Evolution ” Valdis Krebs Inflow 1990 Wayne Baker 2000 “Social Capital” Uni Michigan Ranjay Gulati Northwestern Network Resources 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 Duncan Watts Columbia University & Yahoo 2003 “Six Degrees”

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