Social Capital: Glue for Sustainability

Slide 1: Social Capital: Glue for Sustainability A NETWORK MINDSET Victoria Axelrod, William Becker, Jenny Ambrozek Community 2.0, Las Vegas, May 15, 2008

Slide 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

Slide 3: Open Systems- Network Mindset Quiz 1. 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?

Slide 4: Why a Social Capital Workshop, Now? Cataclysmic shift in marketplace. (“Groundswell”) Potential to use net∞WORKed information to drive business strategy

Slide 5: Social Capital The sum of all of an organization's relationships through individual networks. Sustainable organizations with high social capital contribute positively to the ecosystem in which they operate.

Slide 6: Sustainability … 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.

Slide 7: Our Experience Networks, Analyses, Open System Conference Challenge Business Result Increase American plant Multi billion dollar global Increased productivity by 14 productivity by manufacturing company percent in 6 mo. 6 percent in one year. Plant became flagship facility for company’s world- wide operations. Broaden strategic Multi million dollar not-for-profit New lines of business with intent, develop new global education organization required talent increased bottom core products and line by $23 million. competencies to increase bottom line To restart a shut-down energy Multi billion dollar nuclear Plant restarted with greater cross- plant because of plant team collaboration, much better management issues, costing management techniques, and $180 Million. involving external stakeholders. Identified gaps between Improve effectiveness of Global integrated natural long term & new an expertise network resources company members, & value new could contribute

Slide 8: Simon sees DUCKS But, CONSIDER the POND

Slide 9: More than the eye can see No food web. No ducks

Slide 10: Ponds CONNECTED Watershed ECOSYSTEM http://www.wildeducation.org/programs/nww06/watershed_illustration2.jpg

Slide 11: Organizations as Complex Network Webs Value Networks Customer Co- Creation Partner Networks Knowledge Networks Supply Chains Industry Groups Innovation Communities of Practice High Performers Alumni Networks Business value created through interaction. Relationships build capital.

Slide 12: ONA Reveals Formal V Informal Structure Petroleum Drilling Key middle managers Peripheral people Isolated group Cross R. & Parker, A. 2003

Slide 14: Personal Network Drawing Exercise

Slide 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?

Slide 16: Organizations as Networks Thought Leaders Verna Allee Wayne Baker Barry Wellman Larry Prusak & University of Toronto Value Networks 2000 “Social Capital” Tom Davenport 1997 “The Knowledge Uni Michigan Networked individualism Babson building Evolution” on IBM IKO work Valdis Krebs Ronald Burt Inflow 1990 Mark Granovetter Uni. of Chicago Duncan Watts Stanford University 2000 1992 “Structural Columbia University Silicon Valley Networks Holes “ Ranjay Gulati Northwestern & Yahoo 1974 “Getting a Job: A 2003 “Six Degrees” Network Resources Study of Contacts and Careers” Harvard David Krackhardt Steve Borgatti Carnegie Mellon John Seely Brown University of Kentucky 1993- “The Company XEROX PARC LINKS Center Behind the Chart” HBR 1995 “People are the Company” UCINET 1988 2005 “The Only Sustainable Edge” Rob Cross UVA Network Roundtable Survey software 2003 “The Hidden Power of Social Networks” co-author Moreno- Andrew Parker (Stanford) 1931- Sociogram 2000 IKO Jenny Ambrozek, SageNet LLC 2005 16

Slide 17: Influence Network ONLINE COMMUNITY REPORT CQSQUARE LINKEDIN JIM CASHEL ANNE MCKAY NANCY WHITE ASSOCIATION FOR INTERNET RESEARCHERS Most Influential... * Joe Cothrel “Looking outside your organization, who do HOWARD RHEINGOLD * Howard Rheingold * Nancy White you look to as an inspiring example or a * Martha Maznevski * Jenny IKO good source of advice regarding virtual IBM Ambrozek * Yahoo Online Facilitation Group JONATHAN SPIRA Amy Jo Kim * communities/teams/networks? * Jim Cashel ETIENNE WENGER * KM Cluster Online Communities in Business 2004 * Lisa Kimball Ambrozek & Cothrel KM CLUSTER CLUSTER KM KNOWLEDGEBOARD OPEN SOURCE COMMUNITY HUBERT SAINT-ONGE IBM JERRY ASH DEBORAH AMIDON MICROSOFT Ambrozek&Cothrel/ Valdis Krebs 2004

Slide 18: Architecting Participation 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 STRUCTURAL HOLES and SPACE between the TOOLS

Slide 19: Language Shifts Open Closed system system Matrix Structure Structural Holes End Value Use Value Buy-in Co-create Hierarchy Periphery/Core Knowledge Leakage Shared Knowledge Team Emergent Subject Matter Expert Social network enabler group Leader Participation Architect ROI netWORK (resources) = Capital Value Classic Work netWORK All rights reserved. © 2008 Axelrod Becker Consulting, Inc. and SageNet, LLC

Slide 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????

Slide 21: HR IT FIN

Slide 22: The Organizational Challenge Direct control DECREASES Degree Enterprise systems Control Social Technology Social Networking Blogs Wikis Podcasting Tagging , Ethernet Web 1.0 Web 2.0 Web 3.0 Web 3.0 1973 1991 Search Links Authoring Tags Extensions Signals Time , as social technology INCREASES

Slide 23: E2.0 S L A T E S Impact “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 Changes Participation & Working Networks

Slide 24: Participation is Individual & Complex Facilitators Roles High Engagement Low Engagement Adapted from Ross Mayfield April 2006 Attention Connection Participation Contribution

Slide 25: Direct CONTROL lessens

Slide 26: CORE and ONA • Business Driver- What value are you trying to create? Define business challenge or strategic intent. • Stakeholder Network – Who do you need to bring together for the most productive result? Use ONA. • Survey – What questions might you want answered to resolve your business need? • Analyze survey findings. • Results – Visual network map. • Follow-up interviews to validate data. • Convene network to address business challenge and implement actions. Strategic conversation that builds the social capital for sustainability.

Slide 27: Potential CORE and ONA Applications 1. Identify new market opportunity or innovation. 2. Improve effectiveness of current business processes. 3. Reveal and extend reach of organizational networks.

Slide 28: net∞WORK Understanding human networks as resources to be WORKed to create value for organizations

Slide 29: Continuing the Conversation 21st Century Organization Blog http://c21org.typepad.com/ 21st Century Organization Facebook Group http://www.facebook.com/group.php?gid=2436782733 Networked Organizations Wiki http://networkedorganizations.wikispaces.com/ Email vaxelrod at gmail.com wfbecker at verizon.net jenny at sageway.com Thank you