Structural Holes & the Space between the Tools

Architecting Participation Jenny Ambrozek, SageNet LLC Enterprise 2.0 Summit, Hannover, March 4, 2008 STRUCTURAL HOLES and SPACE between the TOOLS

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

Slates S earch L inks A uthoring T ags E xtensions S ignals Enterprise 2.0 Technology components ~ Andrew McAfee,

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

Simon sees DUCKS But, CONSIDER the POND Photo: Simon Wardley

More than the eye can see No food web. No ducks Image produced with FoodWeb3D, written by R.J. Williams and provided by the Pacific Ecoinformatics and Computational Ecology Lab (www.foodwebs.org , Yoon et al. 2004)

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

Viewing Organizations through a People Network Lens

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

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 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 (IKO) 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

My ONA Influence Network Patti Anklam Net Work Author Rob Cross UVANetwork Roundtable Valdis Krebs Inflow Developer “ Applies the techniques of social network analysis to provide an x-ray into the inner workings of an organization --- a powerful means of making invisible patterns of information flow and collaboration in strategically important groups visible -Network Roundtable

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

Collaboration Tools Email, IM, Portals, Blogs, Wikis, Tagging, Social Networking Platforms Wireless and Mobile Idea Marketplaces, Prediction Markets Globalization- Geographically spread Mobile workforces Competitive business environment seeking business value Social Network Analysis Social Capital Why ONA Now? Search for valuable over quantity of connections “ Globalization and the Internet create great new opportunities, but they also ratchet up the intensity of competition and generate more work -- especially with the existing corporate structure still hanging on tightly.” Shoshana Zuboff, Business Week Sept 23, 2005 “ By having workers fill out a 15- to 20-minute online survey, Cross can chart who people communicate with, how much time is spent preparing for which meetings, and where the bottlenecks are. "Then I ask executives: 'What decisions are you making that others can make?"' says Cross. "Are there aspects of your role that you could let go of?“ Rob Cross , Business Week Sept 23, 2005

Computer Network Value 1973- Metcalfe’s Law 1965-Gordon E. Moore “ through the complexity of silicon chips doubling every year,the cost of computing power will accordingly decrease ” Reed, 1999 “ (n]etworks that support the construction of communicating groups, create value that scales exponentially with network size”

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 " You do realize that Metcalfe's law does not work for social networks, right?“ ~ Valdis Krebs

Network Analysis a Measurement Tool

Organizational Network Analysis Metrics
Centrality --- Identifies influential people (individual measure)
Number of direct connections that individuals have with others in the group
Individuals who have more ties to others may be in more advantaged positions; they may have access to more of the information or knowledge in the network
Density --- Robustness of network (group measure)
Number of connections in the group out of 100% possible in that network
General level of linkage. More points connected means quicker and more accurate information flow
Cohesion --- Ease with which a network can connect
Distance is the shortest path between two people. Lee--->Ted = 2 NOT 3
Aggregate measure at network level reflects average distance
Courtesy Rob Cross & Andrew Parker Network Roundtable, University of Virginia Lee Bob Ted Ann Sue Al

“ When you interact with this person, how does it typically affect your energy?” Energy

Activity statistics tell an incomplete story Ambrozek, Axelrod & Mulliner 2007 Learning through participation and connecting intelligence

Beyond Enterprise 2.0 Technology and Organizational Models

Connections Inside Enron Courtesy Trampoline Systems

Direct CONTROL lessens

Courtesy of Newsfutures and Robin Hanson. Timeli ne showing corporate users and Wisdom of Crowds publication Prediction Market Adoption

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

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

Architecting Participation Social Technology Enterprise systems , Blogs Wikis Podcasting Tagging Social Networks Web 2.0 Search Links Authoring Tags Extensions Signals Paying attention to your organization’s STRUCTURAL HOLES and the SPACE between TOOLS Web 3.0 Web 4.0 Web 1.0
Business Purpose
Network Thinking
Diverse Minds
Connected Intelligence
Success Recognized

21 st Century Organization Blog http://c21org.typepad.com/
21 st Century Organization Facebook Group
http://www.facebook.com/group.php?gid=2436782733
Networked Organizations Wiki
http://networkedorganizations.wikispaces.com/
Email [email_address] Thank you
Continuing the Conversation

Structural Holes & the Space between the Tools

by Jenny Ambrozek on Mar 10, 2008

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