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“The networked era organizational form is capable of fostering collaboration, making expedient
market driven decisions, adding exponential customer value, and providing access to critical
data for those who need it, when they need it.”
Reinventing Your Company
for the Networked Era
By Les Martel and Jeff Loehr The impact of technology on our personal
and business lives has been dramatic and
“game changing” over the last two decades.
Technological advances have driven the
development of a new type of organization,
the networked era organization, which is
not based on strict hierarchies but based on
a collaborative architecture of technological
and social networks.
This article describes this new model
and what an organization can do to thrive
in this new networked era. The networked
era organizational form is capable of
fostering collaboration, making expedient
market driven decisions, adding exponen-
tial customer value, and providing access
to critical data for those who need it, when
they need it.
We describe the underlying compo-
nents that support networked era success.
We also provide a guide for assessing your
organization’s networked era readiness.
This article may serve as the first step in
an organization’s journey to competitive
advantage in the networked era.
What is so Different about Networked
Era Organizations?
Recently, the authors worked intensively
with the executive team of a global com-
pany to determine what they needed to do
to survive. The company was sinking fast
and they knew it, but they did not know
what to do to stem the flow of red ink and
lost market share. The 60–year-old com-
pany had successfully weathered a number
of restructurings, but something was dif-
ferent this time around.
They were locked into the traditional
industrial era organizational structure that
was built for a bygone business era; one
in which mission critical information was
restricted to the powerful few and decision-
making was primarily focused on top-level
management.
The executive team knew that this
traditional structure was not working but
did not know how to refocus the company
for this new era. They spent most of their
time in management meetings bickering
over yesterday’s numbers instead of focus-
ing their management energy on solving
today’s business challenges. Management
could not keep up with change in their
employees, the environment they operated
in, or the market. The more challenging
the business became, the more out of
touch the business became.
The team had to rapidly transform the
company from an industrial era company
into a networked era company. This new
organization design would allow them to
share information openly and address chal-
lenges collaboratively. Creating this new
organization was critical for survival.
The networked era organization is
the direct outcome of rapid technological
advances. As different as the networked
era organization form may appear, it is
actually the logical next step in the evo-
lution of sociotechnical organizational
theory originally put forth by Trist and
Bamforth (1951, p. 7–9). In their original
paper, they described the effects of techno-
logical change in the British coal industry,
focusing on the production system of that
era and the contemporary technological
4 OD PRACTITIONER Vol.48 No.2 2016
systems it contained. They introduced the
terms “socio” and “technical” and described
many of the core principles of sociotechni-
cal theory that we use today.
Sociotechnical theory was pioneering
for its shift in emphasis towards consider-
ing teams or groups as the primary unit
of analysis. The concepts of self-managed
work teams; job enrichment, job enlarge-
ment, process improvement, work re-
design and organizational adaptability
all evolved from their work and was then
built on by the work of others such as
Hackman and Oldman (1980), Tushman
and Romanelli (1985), Von Gilnow and
Mohrman (1990), Galbraith and Lawler III
(1993), and Chisholm (2008) to name but
a few. Flash forward to the 21st century;
the networked era organization is the next
generation sociotechnical organization on
steroids.
Utilizing this legacy as our base, the
authors routinely assess an organization’s
“networked era maturity” by considering
three sequential phases of networked era
development:
» In phase 1, the company focuses on
creating instrumentation that enhances
efficiencies in the business.
» In phase 2, the company focuses on the
ability to connect the instrumentation
so that dynamic, iterative conversations
and connections are going on among
people and machines.
» In phase 3, the focus is on intelligent,
algorithmically powered, real-time
feedback loops that drive continuous
improvement (see Figure 1).
Phase 3 is the 21st century version of Peter
Senge’s learning organization; continu-
ously ramping up organizational efficiency
and effectiveness. Early adopters of the net-
worked era organizational form have been
either companies that did not have 20th
century legacy issues to grapple with (e.g.,
Facebook, SpaceX, or Snapchat) or indus-
tries that had no choice but to innovate
(e.g., NASA or BP). Starting from scratch
gives organizations the opportunity to build
on current systems, while going into space
or spending billions of dollars deep below
the ocean requires creative, technologi-
cally enabled solutions. These first movers
provide the template for other companies
to follow, as competitive demands require.
Step 1. Where to begin? Look in the rear
view mirror and out the windshield.
Over the past 70 years the world of work
has changed and organizational forms
evolved to support the new work require-
ments. This change has affected (a) how
work is being done, (b) where it is being
done and (c) who is doing it. Due to these
seismic shifts, the future of work has little
in common with the past.
Today a contemporary worker is just
as likely to be a robot or an algorithm as a
human being. While this transformation
has been progressing for some time in
large manufacturing companies, algo-
rithms are becoming commonplace across
industries and at all sizes. New, easy to
program technologies like “Baxter” from
Rethink Robotics enable transformation at
even the smallest manufacturing com-
panies. UCSF has introduced robot run
pharmacies, Blackstone Discovery is using
algorithms to replace lawyers, and Aeon
Co, a Japanese retailer, is using robots to
babysit children.
Technology evolution is unlikely to
slow down any time soon. As robots and
algorithms become more prevalent in
workplace the way we manage work must
change as well. This may seem like a stark
change, but it is really just an evolution; a
continuation of change that has come in
phases over the last 70 years. We started
with the pre-1950s manual era, moved to
the mechanization era, then to the automa-
tion era, and now to the networked era.
Each phase is another development in
information availability and automation of
work. Technology is the key driver.
As seen in Figure 2, throughout this
evolution the winners have taken advan-
tage of these discontinuous changes to
create market advantages, while companies
that could not keep up shrank or simply
disappeared. In the 1970s the successful
business dominated its market by creat-
ing economies of scale, made possible
through communication advances and ease
of travel. In the 1980s the winners used
better information to successfully optimize
their value streams. In the 1990s growing
transparency favored organizations that
Figure 1. The Network Era Organization
MARTEL & LOEHR 2016 ALL RIGHTS RESERVED
Figure 2. History of the Networked Era Organization
MARTEL & LOEHR 2016 ALL RIGHTS RESERVED
• Labor intensive
• Handheld tools
• Low productivity
•More people is
better
• People used
tools
• Machine energy
displacing human
energy
• On scale, bigger is
better
• People serve the
machine
• Separation of
people & machines
• People serve the
system
• Technology is not
ready
• Organizations are
flattened & porous
• Decisions are
algorithm driven
• Organic collaboration
accelerates
• Value contribution
focus dominates
• Data transparency
transforms decision-
making
5Reinventing Your Company for the Networked Era
were matrixed, flattened, empowered, and
continuously improved.
While this has been an evolution, the
networked era is a break from past mod-
els, it is a shift from industrial efficiency
to information efficiency. Running an
efficient operation is important, but due
to the move to robots and algorithms, it is
less likely to be the source of competitive
advantage. The new source of competitive
advantage will be from managing ideas
and information, looking forward rather
than backwards, and finding the best ideas
wherever they reside. The networked era
builds on industrial era structures, but is
a shift in the way we think about manage-
ment and the organization.
Step 2. Design your company with the
future of work in mind.
In the networked era, companies will
migrate from an industrial era form to a
networked organizational form. Rather
than being structured in functional silos
that primarily communicate at the top,
companies will organize around tasks and
challenges. The key point is that a net-
worked era company is organized around
mission critical tasks and not functional
silos. Over time, once this change is put in
motion, individual work will begin to natu-
rally migrate to higher levels as algorithms
and androids take more of the mundane
and repetitive tasks.
Most important, past performance
can be clearly defined and easily reviewed
and shared, so the bickering over what
has happened in the past diminishes. The
most important outcome is that knowledge
workers will have more time, freedom, and
information to focus on higher-level busi-
ness challenges, thereby adding measur-
able value to the organization.
In our own experience, we have seen
companies become more flexible and
innovative with increased organic col-
laboration across boundaries. Networked
era organizations “bake in” organizational
agility and decreased innovation cycle time.
Competitive advantage comes from better
management of mission critical challenges
and from looking out and forward rather
than in and backwards.
The first step to creating the net-
worked era organization is to assess
networked era fitness. Our Networked
Era Organizational Fitness Lens provides
an efficient way to evaluate a companies
networked era fitness and prepare for the
transformation.
Step 3. Use our Networked Era
Organizational Fitness Lens.
The networked era organizational fitness
lens is the tool that we developed to effi-
ciently assess networked era readiness. As
seen in Figure 3, the lens is what we refer to
as the “first screen” embedded in the core
of the more familiar mix of organizational
design components. It is our position that
the initial task is to first assess the organi-
zation’s networked era readiness and then
align the organization for the networked
era utilizing the traditional organizational
design components.
The Networked Era Fitness Lens
provides an understanding where the
company is on its journey to becoming a
networked organization. This tool helps to
define and evaluate the value and impact
Figure 3. Organizational Design Components
MARTEL & LOEHR 2016 ALL RIGHTS RESERVED
Compe-
tencies
Reward
Infra-
structure
Systems and
Technology
ProcessStructure
Change Management & Continuous Improvement
Management
Rather than being structured in functional silos that primarily
communicate at the top, companies will organize around
tasks and challenges. The key point is that a networked era
company is organized around mission critical tasks and not
functional silos. Over time, once this change is put in motion,
individual work will begin to naturally migrate to higher levels
as algorithms and androids take more of the mundane and
repetitive tasks.
OD PRACTITIONER Vol.48 No. 2 20166
of specific investments an organization can
make going forward. While your organiza-
tion may have some networked era com-
ponents, this lens serves as the top-level
screen identifying gaps and opportunities.
Our Networked Era Fitness Lens as
seen above in Figure 4 has five interlocking
components:
1. Robust Technology Backbone: A rock
solid technology infrastructure
2. Right and Ready Data Access: The right
data, for the right person, at the right
level of granularity, at the right time
3. Collaborative Bias: Cross-boundary col-
laboration must be the cultural norm
4. Boundary Porosity: Internal/external
organizational barriers must be low and
porous
5. Talent Intensity: Highly specialized tal-
ent with contemporary “hard and soft”
skills
1. Robust Technology Backbone
Technology forms the bedrock on which
networked era organizations are built.
In fact, continuous and rapid technology
development is the main driver behind
this new organizational form.
The technology backbone must be
both sufficiently strong and flexible to
support the organization’s networked era
design. In the most basic sense, the net-
worked organization requires this back-
bone to ensure that information is available
everywhere when needed and that the other
components are supported. The technology
backbone must satisfy 4 functions:
1. Connectivity: linking people, machines,
and processes
2. Information Creation: the combining of
data into usable information
3. Storage: keeping information available
and accessible
4. Access: allowing access to stored
information
First, creating the technology backbone
starts with connectivity. In a networked era
organization everyone and everything must
be connected to the network. This one
component is driving much of the tech-
nology conversation today and is the idea
behind sensor ubiquity and “the Internet
of Things.” By connecting everything, the
entire organization can create a better view
of the whole business in a way that avoids
human error.
Today, connectivity is possible in
some of the most extreme situations. Early
adopters have created, out of necessity, con-
nected systems. For example, in the oil and
gas industry, directional drilling companies
are able to communicate with drill heads
through thousands of feet of pipe and rock
by sending waves through the mud column
that the drill creates. NASA is able to con-
nect spacecraft on Mars to the Jet Propul-
sion Laboratory in California.
As a result, connectivity in normal
conditions has become not just possible,
but inexpensive and easily available. Cloud
computing, sensor ubiquity, and the
Internet of Things is connecting every facet
of life.
Yet, continuous streams of operational
data are meaningless unless they can be
combined to paint a meaningful picture.
The second component of the technol-
ogy backbone is to create the algorithms
that can correlate information as well as
present digestible visualizations. Advanced
analytics, big data technology, and artificial
intelligence systems, like IBM’s Wat-
son, make this possible. Shared services,
such as Amazon’s AWS and open source
systems like Hadoop make it increasingly
inexpensive.
Developing, assessing, and changing
the algorithms that create useful data is a
key challenge today and will be a key role of
talent in the networked era organization.
Third, the information must be stored.
Data storage costs continue to drop dra-
matically, making it possible for companies
to keep large amounts of real time data and
information.
Fourth, the technology backbone must
provide access to the information. With-
out access the technology backbone is of
limited value. Access itself can take many
forms, from computers linked to real time
data to reports delivered automatically and
on a regular basis to smartphones. The
move from closed networks to cloud based
systems is making access to information
easier and more commonplace.
In our experience, many organizations
have much of the technology backbone
already in place. That is, the capital-inten-
sive part of the work may already be done.
But often the component pieces do not talk
to each other and critical data are not cap-
tured and turned into useful information.
These gaps are holding companies
back and limiting the return on their tech-
nology investment.
When assessing your organization’s
technology backbone, ask these questions:
» Do we have a robust technology back-
bone that extends to every part of the
company?
» Are we capturing the data available to
us?
» Are we converting raw data into useful
information that guides actions?
Figure 4. The Network Fitness Lens
MARTEL & LOEHR 2016 ALL RIGHTS RESERVED
7Reinventing Your Company for the Networked Era
» Is this information stored in an acces-
sible way?
» Are we providing broad access to the
information?
2. Right and Ready Data Access
In many strategic planning meetings, the
authors are often surprised by how much
time is spent on rehashing the past and
using it to forecast the future. Aside from
being a futile exercise, it invariably has a
demoralizing effect on people. The past
does not change and conversations focused
on past issues deemphasize solutions for
the future. The networked era organiza-
tion focuses on designing strategies for
the future.
One executive shared his frustration
with us. Before migrating to a networked
organization structure, his team always
held “2nd cup of coffee meetings.” The
first cup of coffee was consumed while
preparing for the meeting to develop the
arguments needed to defend against the
onslaught from other managers. The 2nd
cup meeting followed the first meeting to
develop supporting arguments made in the
meeting itself. Prospective thinking was
very much secondary.
After implementing changes that
allowed for right and ready data access,
managers began to show up for meet-
ings prepared to review the information
together – imagine, no more preparing of
spreadsheets or reports! Information was
available to all and it was indisputable.
The meetings became focused on options
for solving problems and handling future
challenges rather than fruitless discussions
debating the past.
In the mature networked era company,
data collection is automatic and the system
itself can generate higher-level information
reports. With a few clicks managers can
have access to the right information, at the
right level of granularity, at the right time.
This frees up management to think about
what the information means and where
it is leading. This is the higher-level work
that managers should be doing and want to
be doing.
Right and ready information requires
a robust technology backbone, but the
IT just provides data. Building the right
analytics, reports, and the dashboards is
relatively easy; implementation requires
deeper change management. The reason
for this is that many current management
systems are based on finding flaws and
justifying the past. So when data are made
readily available people will initially feel as
though they are being exposed. Managers
in particular must learn new ways of work-
ing with each other and managing subor-
dinates. They will need to be more open
about performance and learn to focus the
conversation on future solutions. Making
the transition to right and ready informa-
tion must be done purposefully; it is a
result of networked era organization design
and not an automatic function of making
information available.
In order to manage this transition to
right and ready data access, the organiza-
tion must:
» Spend the time to identify what infor-
mation matters to whom and create the
reports that deliver the information.
» Recognize that the information will
need to change over time, so resources
must be dedicated to updating the
reports and developing new ways to
view information.
» Have clear shared management
incentives.
» Structure conversations to focus on the
future rather than the past and support
managers in this transition.
» Build a culture of measuring perfor-
mance over the long term rather than
immediate past actions.
Questions to ask:
» Do management meetings focus more
on backwards looking information or
forward looking plans?
» Is more management time spent
assessing the past or preparing for the
future?
» Do managers have essential manage-
ment information available to them
when they need it?
3. Collaborative Bias
Right and ready data access provides the
information but does not solve the problem
of how people will work together. A collab-
orative bias is fundamentally an organiza-
tional culture issue, so it is critical to create
and foster a collaboration culture.
In industrial era organizations people
and functions had to make a determined
effort to collaborate across boundaries.
The bias was towards doing “my work” not
“our work.” In the networked era organiza-
tion, there must be a collaborative bias up,
down, across, and outside of the organiza-
tion. Competitive advantage comes from
finding and managing the best ideas from
wherever they exist and however they
originate.
This means creating a flexible, col-
laborative work environment where people
rapidly share ideas and work towards
So when data are made readily available people will initially
feel as though they are being exposed. Managers in particular
must learn new ways of working with each other and
managing subordinates. They will need to be more open about
performance and learn to focus the conversation on future
solutions. Making the transition to right and ready information
must be done purposefully; it is a result of networked era
organization design and not an automatic function of making
information available.
OD PRACTITIONER Vol.48 No. 2 20168
shared goals. Collaboration must go further
than just working together. Members of
the organization need to be linked through
well-defined work flows and shared infor-
mation rather than functional designations.
Networked workspaces reinforce a
collaborative experience rather than an
individual one. Important design elements
to collaboration are facilitating the chance
encounter and providing opportunities
to delve into topics in shared spaces. The
offices themselves break down barriers
between functions and encourage problem
solving huddles. This means having more
connected spaces, places for people to have
conversations without disturbing oth-
ers, and environments for relaxed chance
encounters.
While offices are important, more
people will be working outside the office,
so the environment needs to extend beyond
the office building. The best employees and
external participants may not be located
geographically close to the office but will
still need to be connected to have chance
encounters and spaces to explore ideas.
One solution we have used to great suc-
cess is to implement companywide social
networks and information exchanges. One
company we worked with has developed
its own new website with teaser ads that
draw employees into different projects and
in unexpected directions, promoting these
chance encounters.
It is worth noting that right and ready
data access in and of itself will change
the organizational culture. With so much
information flowing around the company,
the organization will be naturally driven
toward a collaborative bias.
To assess collaborative bias ask these
questions:
» Who needs to communicate with whom
and does this help or hinder breaking
down the traditional siloed structure?
» Are formal interactions around shared
goals rather than functional goals?
» Are current workspaces enabling
collaboration?
» Are teams focused on business chal-
lenges rather than functional content?
» Are internal linkages structured to
value contribution rather than role?
» Does the environment and the
reward and incentive structures foster
collaboration?
» Are there robust internal and external
linkages?
4. Boundary Porosity
Georges Nahon and Mark Plakias in their
article “The Coming of the Porous Enter-
prise” (2009) proposed this intriguing
question: “What if companies looked more
like airports?” While it is true that airports
and airlines may present frustrations for
the traveler, an airport is made up of many
different functions and companies that
all must work together. Airlines, security,
ground staff, and controllers all report to
different organizations but work seam-
lessly together towards a common goal;
moving people and planes. Despite our
frustrations with the airlines, airports in
the US manage about 30,000 flights carry-
ing about 1.75 million passengers every day.
There are virtually zero crashes and the
vast majority of people and things go to the
right place.
Just like airports, in a global and
networked economy, no one company can
perform all of the functions and possess
all the specialist capabilities needed to
succeed. The networked era organization
works more effectively across boundaries
both internally and externally by support-
ing boundary porosity and ensuring that
the organization is focused on solving the
right problems, people will work together
to solve mission critical problems rather
than working as individuals managing
their silos.
The challenge with boundary poros-
ity is involving other external players in
internal problems. While this is often
uncomfortable at first and does need to be
structured to be effective, the payoffs are
tremendous.
Good examples of boundary porosity
are the creation of Knowledge Hubs and
Centers of Excellence. These entities are
linked internally and externally, focused
on applying specialized knowledge to
new problems, then codifying the solu-
tions. Open innovation initiatives and
public challenges are other ways to involve
external participants. In this way you can
use experts that can solve emergent prob-
lems while also defining the future of the
organization.
To assess boundary porosity, ask these
questions:
» Does the organization have clear,
shared overarching goals that can be
expressed across functions and with
external companies?
» Are ideas managed and shared?
» Is there a focus on the total customer
experience?
» Does the incentive structure encour-
age sharing across functions and
boundaries?
» Is there a “just in time” internal and
external partnering capability
5. Talent Intensity
Talent is critical to networked era success.
Very specific talent! Talent Intensity is the
component that accelerates the other 4
components. We purposely use the term
talent intensity rather than other generic
terms to describe talent requirements like
“the war for talent” or “emergent labor
shortfalls.” These terms miss the essential
problem, which is finding just the right tal-
ent with the right mix of critical thinking,
technical, and interpersonal skills.
As illustrated in Figure 5 (next page),
the authors maintain that the talent imper-
ative can be succinctly summed up: in
order to win you have got to have “smarter
and smarter” employees. That is, the ones
who know how to “learn to learn” on the
fly wherever and with whomever in order
to get the job done. These are the same
people that every networked era company
wants to hire.
Many traditional work roles are fast
becoming “the melting middle” and the
“quickly commoditized.” Companies will
lose interest in staffing up for these roles.
Although this can be a reality jolt to the
workers whose jobs are disappearing, this
is the inevitable result of networked era
change.
While many traditional roles will van-
ish, humans will not disappear from the
9Reinventing Your Company for the Networked Era
workforce. Androids and algorithms are
doing more and more of this work free-
ing up “employee bandwidth” to do more
personally gratifying and higher-level work.
More “smart and smarter” employees will
be needed to do this work and they will be
in great demand.
On balance though, the networked era
organization will do more to empower peo-
ple rather than replace them. It provides
great opportunities for those who have the
new skillset to thrive. We believe that the
“smart and smarter” employee must pos-
sess a 21st century set of competencies as
outlined in Figure 6.
The base of the triangle notes the
foundational capabilities required: a com-
bination of technological agility paired with
critical reasoning capabilities while the top
of the triangle represents the 4Cs: collabo-
ration, communication, connectivity, and
creating. The 4Cs are the rapid accelerators
for both individual and organizational suc-
cess in the networked era.
People who are highly collaborative
and adaptable will power the networked era
organization. They possess above aver-
age communication skills across verbal
and virtual mediums. They are capable of
connecting with others through effective
social networking on a 24–7 schedule.
Most important, they will be capable of and
responsible for innovating and creating
value for the company regardless of title
and physical location.
In the networked era, we need employ-
ees who excel in their ability to collaborate,
communicate, create, and connect across
boundaries and time zones. The 4Cs are
key employee competencies for knowl-
edge workers in the networked era. This
leads to the natural question: What kind
of leadership is best for the networked
era organization? Daniel Goleman, in
his paper “Leadership That Gets Results”
(2000) draws on research conducted by the
consulting firm Hay/McBer. In this paper
six leadership styles are identified: coercive,
authoritative, affiliative, democratic, pace-
setting, and coaching. He concludes that
the more styles a leader exhibits, the better!
It was found that leaders who utilize four
styles regularly – authoritative, democratic,
affiliative, and coaching – had the best
climate and delivered the best business
performance. The basic message is that
the command and control form of leader-
ship may still be suitable within a narrow
range of situations but a networked era
leader will need to draw upon a wide range
of leadership styles to effectively manage
the multigenerational, global workforce in
networked era.
Conclusion
Companies cannot avoid the imperative to
migrate toward a networked era organiza-
tion model but figuring out where to start
may feel like a daunting task. All said and
done, managers must manage in a way that
creates incentives that drive collaboration,
sharing, and focus on the future. This is
the future of work and companies that are
Figure 6. Networked Era Competencies
MARTEL & LOEHR 2016 ALL RIGHTS RESERVED
• Highly Collaborative Team
Member
• Flexibility & Adaptability
• Mobilizer of Human
& Organizational
Resources
• Effective Delegator
• Digitally Literate
• Ability to Work
Virtually
• Cultivating Social
Communities
• 24/7 Availability
• Linked to External Expertise
• Flexible & Self Directed
Learner
• Innovative Mindset
• Entrepreneurial Drive
• Demonstrated Initiative
• Cross-Cultural Awareness
• Influencing Skills
• Verbal & Virtual
Communication Skills
• Conflict Management/
Negotiation Skills
• Em0tionally Intelligent
• Deep Listening Skills
Networked Era Competencies
Technology
Agile
Critical Thinker
COLLABORATE
CONNECT
COMMUNICATE
CREATE
Figure 5. The Nature of Work is Being Transformed
MARTEL & LOEHR 2016 ALL RIGHTS RESERVED
OD PRACTITIONER Vol.48 No. 2 201610
more flexible and better able to manage
in a changing environment will be more
prone to success. Understanding where
your organization is on this journey starts
by viewing your organization through the
Networked Era Organizational Fitness Lens
and identifying where the gaps are. Only
then can you develop a plan to address the
gaps and create the conditions for success.
The thoughts outlined in this paper
are not meant to be exhaustive but rather
to serve as a catalyst to encourage discus-
sion within your company about what is
working and what is not. Having an honest
internal dialogue in your company as to
your Networked Era Organizational Readi-
ness is the first step before launching into
action. The 5 components of the Networked
Organization lens can provide valuable
insight as to organizational strengths and
weaknesses as well as serving as a founda-
tion for a step-wise intervention guide.
In Summary
First: Look at your company’s history to
understand how you got to the current state
and plot the desired future.
Second: Understand what the future of
work looks like and initiate the organiza-
tional design discussion with this in mind.
Third: Use our Networked Organizational
Lens framework to stimulate a conversa-
tion about where you lead and where
you lag.
Then: Dig in because this is where the real
work begins. Fortunately for those compa-
nies that can make the shift, the benefits
gained through enhanced performance and
more innovative approaches will be well
worth it.
References
Chisholm, R. (2008). Developing interor-
ganizational networks. In T. Cummings
(Ed.), Handbook of organization develop-
ment (pp. 629–650). Thousand Oaks,
CA: Sage Publications.
Galbraith, J. R., & Lawler III, E. E. (1993).
Organizing for the future: The new
logic for managing complex organiza-
tions. San Francisco, CA: Jossey-Bass
Management.
Goleman, D. (2000). Leadership that gets
results. Harvard Business Review, 78(2),
78–90.
Hackman, J. R., & Oldham, G. R.
(1980). Work redesign. Reading, MA:
Addison-Wesley.
Nahon, G., & Plakias, M. (2009). The Com-
ing of the Porous Enterprise. Retrieved
from http://www.orange.com/en/home#
Trist, E., & Bamforth, K. (1951). Some
social and psychological consequences
of the longwall method of coal getting.
Human Relations, 4, 3–38.
Tuchman, B., & Romanelli, E. (1985). Orga-
nizational evolution: A metamorphosis
model of convergence and reorienta-
tion. Research in Organizational Behav-
ior, 7, 171–222.
Von Gilnow, M., & Mohrman, S. (Eds.).
(1990). Managing complexity in high
technology organizations. New York, NY:
Oxford University Press.
Les Martel is Principal Organization Development Consultant with Stratist;
a globally focused strategy consulting firm based in New York City. He works
with organizations to strategically reposition their business for the Networked
Era. Martel focuses on designing and implementing the people architecture
that drives the integration of strategy, processes, and structure for this new
era. He can be reached at lesmartel@gmail.com or http://www.linkedin.com/
in/lesmartel
Jeff Loehr is a strategy and organization design consultant based in New York
City. He brings extensive international and cross industry experience, strategic
insight, and problem solving skills to bear on complicated issues at compa-
nies of all sizes - from startups to some of the world’s largest companies. His
experience includes corporate strategy development, innovation, new market
entry, risk management, and creating effective organizations in the networked
era. Some of the companies he has worked with include: Butterball, Daimler
Benz, the Ford Motor Company, Borax, Rio Tinto, and Peabody Energy where
he has been a leader in developing strategy and innovation projects that drive
efficiency and rapid growth. He is active in the design of new organizational
models for the networked era and bringing new ways of working to companies
looking to meet the challenges of a changing market. He has also developed
innovation processes that have allowed both industrial and also consumer
firms to reinvent themselves, create new operating models, and redesign
operations. Loehr has an MBA from the Anderson School at UCLA. He can be
reached at www.stratistconsulting.com or jeff.od@stratistconsulting.com
11Reinventing Your Company for the Networked Era

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Reinventing Your Organization for the Networked Era

  • 1. “The networked era organizational form is capable of fostering collaboration, making expedient market driven decisions, adding exponential customer value, and providing access to critical data for those who need it, when they need it.” Reinventing Your Company for the Networked Era By Les Martel and Jeff Loehr The impact of technology on our personal and business lives has been dramatic and “game changing” over the last two decades. Technological advances have driven the development of a new type of organization, the networked era organization, which is not based on strict hierarchies but based on a collaborative architecture of technological and social networks. This article describes this new model and what an organization can do to thrive in this new networked era. The networked era organizational form is capable of fostering collaboration, making expedient market driven decisions, adding exponen- tial customer value, and providing access to critical data for those who need it, when they need it. We describe the underlying compo- nents that support networked era success. We also provide a guide for assessing your organization’s networked era readiness. This article may serve as the first step in an organization’s journey to competitive advantage in the networked era. What is so Different about Networked Era Organizations? Recently, the authors worked intensively with the executive team of a global com- pany to determine what they needed to do to survive. The company was sinking fast and they knew it, but they did not know what to do to stem the flow of red ink and lost market share. The 60–year-old com- pany had successfully weathered a number of restructurings, but something was dif- ferent this time around. They were locked into the traditional industrial era organizational structure that was built for a bygone business era; one in which mission critical information was restricted to the powerful few and decision- making was primarily focused on top-level management. The executive team knew that this traditional structure was not working but did not know how to refocus the company for this new era. They spent most of their time in management meetings bickering over yesterday’s numbers instead of focus- ing their management energy on solving today’s business challenges. Management could not keep up with change in their employees, the environment they operated in, or the market. The more challenging the business became, the more out of touch the business became. The team had to rapidly transform the company from an industrial era company into a networked era company. This new organization design would allow them to share information openly and address chal- lenges collaboratively. Creating this new organization was critical for survival. The networked era organization is the direct outcome of rapid technological advances. As different as the networked era organization form may appear, it is actually the logical next step in the evo- lution of sociotechnical organizational theory originally put forth by Trist and Bamforth (1951, p. 7–9). In their original paper, they described the effects of techno- logical change in the British coal industry, focusing on the production system of that era and the contemporary technological 4 OD PRACTITIONER Vol.48 No.2 2016
  • 2. systems it contained. They introduced the terms “socio” and “technical” and described many of the core principles of sociotechni- cal theory that we use today. Sociotechnical theory was pioneering for its shift in emphasis towards consider- ing teams or groups as the primary unit of analysis. The concepts of self-managed work teams; job enrichment, job enlarge- ment, process improvement, work re- design and organizational adaptability all evolved from their work and was then built on by the work of others such as Hackman and Oldman (1980), Tushman and Romanelli (1985), Von Gilnow and Mohrman (1990), Galbraith and Lawler III (1993), and Chisholm (2008) to name but a few. Flash forward to the 21st century; the networked era organization is the next generation sociotechnical organization on steroids. Utilizing this legacy as our base, the authors routinely assess an organization’s “networked era maturity” by considering three sequential phases of networked era development: » In phase 1, the company focuses on creating instrumentation that enhances efficiencies in the business. » In phase 2, the company focuses on the ability to connect the instrumentation so that dynamic, iterative conversations and connections are going on among people and machines. » In phase 3, the focus is on intelligent, algorithmically powered, real-time feedback loops that drive continuous improvement (see Figure 1). Phase 3 is the 21st century version of Peter Senge’s learning organization; continu- ously ramping up organizational efficiency and effectiveness. Early adopters of the net- worked era organizational form have been either companies that did not have 20th century legacy issues to grapple with (e.g., Facebook, SpaceX, or Snapchat) or indus- tries that had no choice but to innovate (e.g., NASA or BP). Starting from scratch gives organizations the opportunity to build on current systems, while going into space or spending billions of dollars deep below the ocean requires creative, technologi- cally enabled solutions. These first movers provide the template for other companies to follow, as competitive demands require. Step 1. Where to begin? Look in the rear view mirror and out the windshield. Over the past 70 years the world of work has changed and organizational forms evolved to support the new work require- ments. This change has affected (a) how work is being done, (b) where it is being done and (c) who is doing it. Due to these seismic shifts, the future of work has little in common with the past. Today a contemporary worker is just as likely to be a robot or an algorithm as a human being. While this transformation has been progressing for some time in large manufacturing companies, algo- rithms are becoming commonplace across industries and at all sizes. New, easy to program technologies like “Baxter” from Rethink Robotics enable transformation at even the smallest manufacturing com- panies. UCSF has introduced robot run pharmacies, Blackstone Discovery is using algorithms to replace lawyers, and Aeon Co, a Japanese retailer, is using robots to babysit children. Technology evolution is unlikely to slow down any time soon. As robots and algorithms become more prevalent in workplace the way we manage work must change as well. This may seem like a stark change, but it is really just an evolution; a continuation of change that has come in phases over the last 70 years. We started with the pre-1950s manual era, moved to the mechanization era, then to the automa- tion era, and now to the networked era. Each phase is another development in information availability and automation of work. Technology is the key driver. As seen in Figure 2, throughout this evolution the winners have taken advan- tage of these discontinuous changes to create market advantages, while companies that could not keep up shrank or simply disappeared. In the 1970s the successful business dominated its market by creat- ing economies of scale, made possible through communication advances and ease of travel. In the 1980s the winners used better information to successfully optimize their value streams. In the 1990s growing transparency favored organizations that Figure 1. The Network Era Organization MARTEL & LOEHR 2016 ALL RIGHTS RESERVED Figure 2. History of the Networked Era Organization MARTEL & LOEHR 2016 ALL RIGHTS RESERVED • Labor intensive • Handheld tools • Low productivity •More people is better • People used tools • Machine energy displacing human energy • On scale, bigger is better • People serve the machine • Separation of people & machines • People serve the system • Technology is not ready • Organizations are flattened & porous • Decisions are algorithm driven • Organic collaboration accelerates • Value contribution focus dominates • Data transparency transforms decision- making 5Reinventing Your Company for the Networked Era
  • 3. were matrixed, flattened, empowered, and continuously improved. While this has been an evolution, the networked era is a break from past mod- els, it is a shift from industrial efficiency to information efficiency. Running an efficient operation is important, but due to the move to robots and algorithms, it is less likely to be the source of competitive advantage. The new source of competitive advantage will be from managing ideas and information, looking forward rather than backwards, and finding the best ideas wherever they reside. The networked era builds on industrial era structures, but is a shift in the way we think about manage- ment and the organization. Step 2. Design your company with the future of work in mind. In the networked era, companies will migrate from an industrial era form to a networked organizational form. Rather than being structured in functional silos that primarily communicate at the top, companies will organize around tasks and challenges. The key point is that a net- worked era company is organized around mission critical tasks and not functional silos. Over time, once this change is put in motion, individual work will begin to natu- rally migrate to higher levels as algorithms and androids take more of the mundane and repetitive tasks. Most important, past performance can be clearly defined and easily reviewed and shared, so the bickering over what has happened in the past diminishes. The most important outcome is that knowledge workers will have more time, freedom, and information to focus on higher-level busi- ness challenges, thereby adding measur- able value to the organization. In our own experience, we have seen companies become more flexible and innovative with increased organic col- laboration across boundaries. Networked era organizations “bake in” organizational agility and decreased innovation cycle time. Competitive advantage comes from better management of mission critical challenges and from looking out and forward rather than in and backwards. The first step to creating the net- worked era organization is to assess networked era fitness. Our Networked Era Organizational Fitness Lens provides an efficient way to evaluate a companies networked era fitness and prepare for the transformation. Step 3. Use our Networked Era Organizational Fitness Lens. The networked era organizational fitness lens is the tool that we developed to effi- ciently assess networked era readiness. As seen in Figure 3, the lens is what we refer to as the “first screen” embedded in the core of the more familiar mix of organizational design components. It is our position that the initial task is to first assess the organi- zation’s networked era readiness and then align the organization for the networked era utilizing the traditional organizational design components. The Networked Era Fitness Lens provides an understanding where the company is on its journey to becoming a networked organization. This tool helps to define and evaluate the value and impact Figure 3. Organizational Design Components MARTEL & LOEHR 2016 ALL RIGHTS RESERVED Compe- tencies Reward Infra- structure Systems and Technology ProcessStructure Change Management & Continuous Improvement Management Rather than being structured in functional silos that primarily communicate at the top, companies will organize around tasks and challenges. The key point is that a networked era company is organized around mission critical tasks and not functional silos. Over time, once this change is put in motion, individual work will begin to naturally migrate to higher levels as algorithms and androids take more of the mundane and repetitive tasks. OD PRACTITIONER Vol.48 No. 2 20166
  • 4. of specific investments an organization can make going forward. While your organiza- tion may have some networked era com- ponents, this lens serves as the top-level screen identifying gaps and opportunities. Our Networked Era Fitness Lens as seen above in Figure 4 has five interlocking components: 1. Robust Technology Backbone: A rock solid technology infrastructure 2. Right and Ready Data Access: The right data, for the right person, at the right level of granularity, at the right time 3. Collaborative Bias: Cross-boundary col- laboration must be the cultural norm 4. Boundary Porosity: Internal/external organizational barriers must be low and porous 5. Talent Intensity: Highly specialized tal- ent with contemporary “hard and soft” skills 1. Robust Technology Backbone Technology forms the bedrock on which networked era organizations are built. In fact, continuous and rapid technology development is the main driver behind this new organizational form. The technology backbone must be both sufficiently strong and flexible to support the organization’s networked era design. In the most basic sense, the net- worked organization requires this back- bone to ensure that information is available everywhere when needed and that the other components are supported. The technology backbone must satisfy 4 functions: 1. Connectivity: linking people, machines, and processes 2. Information Creation: the combining of data into usable information 3. Storage: keeping information available and accessible 4. Access: allowing access to stored information First, creating the technology backbone starts with connectivity. In a networked era organization everyone and everything must be connected to the network. This one component is driving much of the tech- nology conversation today and is the idea behind sensor ubiquity and “the Internet of Things.” By connecting everything, the entire organization can create a better view of the whole business in a way that avoids human error. Today, connectivity is possible in some of the most extreme situations. Early adopters have created, out of necessity, con- nected systems. For example, in the oil and gas industry, directional drilling companies are able to communicate with drill heads through thousands of feet of pipe and rock by sending waves through the mud column that the drill creates. NASA is able to con- nect spacecraft on Mars to the Jet Propul- sion Laboratory in California. As a result, connectivity in normal conditions has become not just possible, but inexpensive and easily available. Cloud computing, sensor ubiquity, and the Internet of Things is connecting every facet of life. Yet, continuous streams of operational data are meaningless unless they can be combined to paint a meaningful picture. The second component of the technol- ogy backbone is to create the algorithms that can correlate information as well as present digestible visualizations. Advanced analytics, big data technology, and artificial intelligence systems, like IBM’s Wat- son, make this possible. Shared services, such as Amazon’s AWS and open source systems like Hadoop make it increasingly inexpensive. Developing, assessing, and changing the algorithms that create useful data is a key challenge today and will be a key role of talent in the networked era organization. Third, the information must be stored. Data storage costs continue to drop dra- matically, making it possible for companies to keep large amounts of real time data and information. Fourth, the technology backbone must provide access to the information. With- out access the technology backbone is of limited value. Access itself can take many forms, from computers linked to real time data to reports delivered automatically and on a regular basis to smartphones. The move from closed networks to cloud based systems is making access to information easier and more commonplace. In our experience, many organizations have much of the technology backbone already in place. That is, the capital-inten- sive part of the work may already be done. But often the component pieces do not talk to each other and critical data are not cap- tured and turned into useful information. These gaps are holding companies back and limiting the return on their tech- nology investment. When assessing your organization’s technology backbone, ask these questions: » Do we have a robust technology back- bone that extends to every part of the company? » Are we capturing the data available to us? » Are we converting raw data into useful information that guides actions? Figure 4. The Network Fitness Lens MARTEL & LOEHR 2016 ALL RIGHTS RESERVED 7Reinventing Your Company for the Networked Era
  • 5. » Is this information stored in an acces- sible way? » Are we providing broad access to the information? 2. Right and Ready Data Access In many strategic planning meetings, the authors are often surprised by how much time is spent on rehashing the past and using it to forecast the future. Aside from being a futile exercise, it invariably has a demoralizing effect on people. The past does not change and conversations focused on past issues deemphasize solutions for the future. The networked era organiza- tion focuses on designing strategies for the future. One executive shared his frustration with us. Before migrating to a networked organization structure, his team always held “2nd cup of coffee meetings.” The first cup of coffee was consumed while preparing for the meeting to develop the arguments needed to defend against the onslaught from other managers. The 2nd cup meeting followed the first meeting to develop supporting arguments made in the meeting itself. Prospective thinking was very much secondary. After implementing changes that allowed for right and ready data access, managers began to show up for meet- ings prepared to review the information together – imagine, no more preparing of spreadsheets or reports! Information was available to all and it was indisputable. The meetings became focused on options for solving problems and handling future challenges rather than fruitless discussions debating the past. In the mature networked era company, data collection is automatic and the system itself can generate higher-level information reports. With a few clicks managers can have access to the right information, at the right level of granularity, at the right time. This frees up management to think about what the information means and where it is leading. This is the higher-level work that managers should be doing and want to be doing. Right and ready information requires a robust technology backbone, but the IT just provides data. Building the right analytics, reports, and the dashboards is relatively easy; implementation requires deeper change management. The reason for this is that many current management systems are based on finding flaws and justifying the past. So when data are made readily available people will initially feel as though they are being exposed. Managers in particular must learn new ways of work- ing with each other and managing subor- dinates. They will need to be more open about performance and learn to focus the conversation on future solutions. Making the transition to right and ready informa- tion must be done purposefully; it is a result of networked era organization design and not an automatic function of making information available. In order to manage this transition to right and ready data access, the organiza- tion must: » Spend the time to identify what infor- mation matters to whom and create the reports that deliver the information. » Recognize that the information will need to change over time, so resources must be dedicated to updating the reports and developing new ways to view information. » Have clear shared management incentives. » Structure conversations to focus on the future rather than the past and support managers in this transition. » Build a culture of measuring perfor- mance over the long term rather than immediate past actions. Questions to ask: » Do management meetings focus more on backwards looking information or forward looking plans? » Is more management time spent assessing the past or preparing for the future? » Do managers have essential manage- ment information available to them when they need it? 3. Collaborative Bias Right and ready data access provides the information but does not solve the problem of how people will work together. A collab- orative bias is fundamentally an organiza- tional culture issue, so it is critical to create and foster a collaboration culture. In industrial era organizations people and functions had to make a determined effort to collaborate across boundaries. The bias was towards doing “my work” not “our work.” In the networked era organiza- tion, there must be a collaborative bias up, down, across, and outside of the organiza- tion. Competitive advantage comes from finding and managing the best ideas from wherever they exist and however they originate. This means creating a flexible, col- laborative work environment where people rapidly share ideas and work towards So when data are made readily available people will initially feel as though they are being exposed. Managers in particular must learn new ways of working with each other and managing subordinates. They will need to be more open about performance and learn to focus the conversation on future solutions. Making the transition to right and ready information must be done purposefully; it is a result of networked era organization design and not an automatic function of making information available. OD PRACTITIONER Vol.48 No. 2 20168
  • 6. shared goals. Collaboration must go further than just working together. Members of the organization need to be linked through well-defined work flows and shared infor- mation rather than functional designations. Networked workspaces reinforce a collaborative experience rather than an individual one. Important design elements to collaboration are facilitating the chance encounter and providing opportunities to delve into topics in shared spaces. The offices themselves break down barriers between functions and encourage problem solving huddles. This means having more connected spaces, places for people to have conversations without disturbing oth- ers, and environments for relaxed chance encounters. While offices are important, more people will be working outside the office, so the environment needs to extend beyond the office building. The best employees and external participants may not be located geographically close to the office but will still need to be connected to have chance encounters and spaces to explore ideas. One solution we have used to great suc- cess is to implement companywide social networks and information exchanges. One company we worked with has developed its own new website with teaser ads that draw employees into different projects and in unexpected directions, promoting these chance encounters. It is worth noting that right and ready data access in and of itself will change the organizational culture. With so much information flowing around the company, the organization will be naturally driven toward a collaborative bias. To assess collaborative bias ask these questions: » Who needs to communicate with whom and does this help or hinder breaking down the traditional siloed structure? » Are formal interactions around shared goals rather than functional goals? » Are current workspaces enabling collaboration? » Are teams focused on business chal- lenges rather than functional content? » Are internal linkages structured to value contribution rather than role? » Does the environment and the reward and incentive structures foster collaboration? » Are there robust internal and external linkages? 4. Boundary Porosity Georges Nahon and Mark Plakias in their article “The Coming of the Porous Enter- prise” (2009) proposed this intriguing question: “What if companies looked more like airports?” While it is true that airports and airlines may present frustrations for the traveler, an airport is made up of many different functions and companies that all must work together. Airlines, security, ground staff, and controllers all report to different organizations but work seam- lessly together towards a common goal; moving people and planes. Despite our frustrations with the airlines, airports in the US manage about 30,000 flights carry- ing about 1.75 million passengers every day. There are virtually zero crashes and the vast majority of people and things go to the right place. Just like airports, in a global and networked economy, no one company can perform all of the functions and possess all the specialist capabilities needed to succeed. The networked era organization works more effectively across boundaries both internally and externally by support- ing boundary porosity and ensuring that the organization is focused on solving the right problems, people will work together to solve mission critical problems rather than working as individuals managing their silos. The challenge with boundary poros- ity is involving other external players in internal problems. While this is often uncomfortable at first and does need to be structured to be effective, the payoffs are tremendous. Good examples of boundary porosity are the creation of Knowledge Hubs and Centers of Excellence. These entities are linked internally and externally, focused on applying specialized knowledge to new problems, then codifying the solu- tions. Open innovation initiatives and public challenges are other ways to involve external participants. In this way you can use experts that can solve emergent prob- lems while also defining the future of the organization. To assess boundary porosity, ask these questions: » Does the organization have clear, shared overarching goals that can be expressed across functions and with external companies? » Are ideas managed and shared? » Is there a focus on the total customer experience? » Does the incentive structure encour- age sharing across functions and boundaries? » Is there a “just in time” internal and external partnering capability 5. Talent Intensity Talent is critical to networked era success. Very specific talent! Talent Intensity is the component that accelerates the other 4 components. We purposely use the term talent intensity rather than other generic terms to describe talent requirements like “the war for talent” or “emergent labor shortfalls.” These terms miss the essential problem, which is finding just the right tal- ent with the right mix of critical thinking, technical, and interpersonal skills. As illustrated in Figure 5 (next page), the authors maintain that the talent imper- ative can be succinctly summed up: in order to win you have got to have “smarter and smarter” employees. That is, the ones who know how to “learn to learn” on the fly wherever and with whomever in order to get the job done. These are the same people that every networked era company wants to hire. Many traditional work roles are fast becoming “the melting middle” and the “quickly commoditized.” Companies will lose interest in staffing up for these roles. Although this can be a reality jolt to the workers whose jobs are disappearing, this is the inevitable result of networked era change. While many traditional roles will van- ish, humans will not disappear from the 9Reinventing Your Company for the Networked Era
  • 7. workforce. Androids and algorithms are doing more and more of this work free- ing up “employee bandwidth” to do more personally gratifying and higher-level work. More “smart and smarter” employees will be needed to do this work and they will be in great demand. On balance though, the networked era organization will do more to empower peo- ple rather than replace them. It provides great opportunities for those who have the new skillset to thrive. We believe that the “smart and smarter” employee must pos- sess a 21st century set of competencies as outlined in Figure 6. The base of the triangle notes the foundational capabilities required: a com- bination of technological agility paired with critical reasoning capabilities while the top of the triangle represents the 4Cs: collabo- ration, communication, connectivity, and creating. The 4Cs are the rapid accelerators for both individual and organizational suc- cess in the networked era. People who are highly collaborative and adaptable will power the networked era organization. They possess above aver- age communication skills across verbal and virtual mediums. They are capable of connecting with others through effective social networking on a 24–7 schedule. Most important, they will be capable of and responsible for innovating and creating value for the company regardless of title and physical location. In the networked era, we need employ- ees who excel in their ability to collaborate, communicate, create, and connect across boundaries and time zones. The 4Cs are key employee competencies for knowl- edge workers in the networked era. This leads to the natural question: What kind of leadership is best for the networked era organization? Daniel Goleman, in his paper “Leadership That Gets Results” (2000) draws on research conducted by the consulting firm Hay/McBer. In this paper six leadership styles are identified: coercive, authoritative, affiliative, democratic, pace- setting, and coaching. He concludes that the more styles a leader exhibits, the better! It was found that leaders who utilize four styles regularly – authoritative, democratic, affiliative, and coaching – had the best climate and delivered the best business performance. The basic message is that the command and control form of leader- ship may still be suitable within a narrow range of situations but a networked era leader will need to draw upon a wide range of leadership styles to effectively manage the multigenerational, global workforce in networked era. Conclusion Companies cannot avoid the imperative to migrate toward a networked era organiza- tion model but figuring out where to start may feel like a daunting task. All said and done, managers must manage in a way that creates incentives that drive collaboration, sharing, and focus on the future. This is the future of work and companies that are Figure 6. Networked Era Competencies MARTEL & LOEHR 2016 ALL RIGHTS RESERVED • Highly Collaborative Team Member • Flexibility & Adaptability • Mobilizer of Human & Organizational Resources • Effective Delegator • Digitally Literate • Ability to Work Virtually • Cultivating Social Communities • 24/7 Availability • Linked to External Expertise • Flexible & Self Directed Learner • Innovative Mindset • Entrepreneurial Drive • Demonstrated Initiative • Cross-Cultural Awareness • Influencing Skills • Verbal & Virtual Communication Skills • Conflict Management/ Negotiation Skills • Em0tionally Intelligent • Deep Listening Skills Networked Era Competencies Technology Agile Critical Thinker COLLABORATE CONNECT COMMUNICATE CREATE Figure 5. The Nature of Work is Being Transformed MARTEL & LOEHR 2016 ALL RIGHTS RESERVED OD PRACTITIONER Vol.48 No. 2 201610
  • 8. more flexible and better able to manage in a changing environment will be more prone to success. Understanding where your organization is on this journey starts by viewing your organization through the Networked Era Organizational Fitness Lens and identifying where the gaps are. Only then can you develop a plan to address the gaps and create the conditions for success. The thoughts outlined in this paper are not meant to be exhaustive but rather to serve as a catalyst to encourage discus- sion within your company about what is working and what is not. Having an honest internal dialogue in your company as to your Networked Era Organizational Readi- ness is the first step before launching into action. The 5 components of the Networked Organization lens can provide valuable insight as to organizational strengths and weaknesses as well as serving as a founda- tion for a step-wise intervention guide. In Summary First: Look at your company’s history to understand how you got to the current state and plot the desired future. Second: Understand what the future of work looks like and initiate the organiza- tional design discussion with this in mind. Third: Use our Networked Organizational Lens framework to stimulate a conversa- tion about where you lead and where you lag. Then: Dig in because this is where the real work begins. Fortunately for those compa- nies that can make the shift, the benefits gained through enhanced performance and more innovative approaches will be well worth it. References Chisholm, R. (2008). Developing interor- ganizational networks. In T. Cummings (Ed.), Handbook of organization develop- ment (pp. 629–650). Thousand Oaks, CA: Sage Publications. Galbraith, J. R., & Lawler III, E. E. (1993). Organizing for the future: The new logic for managing complex organiza- tions. San Francisco, CA: Jossey-Bass Management. Goleman, D. (2000). Leadership that gets results. Harvard Business Review, 78(2), 78–90. Hackman, J. R., & Oldham, G. R. (1980). Work redesign. Reading, MA: Addison-Wesley. Nahon, G., & Plakias, M. (2009). The Com- ing of the Porous Enterprise. Retrieved from http://www.orange.com/en/home# Trist, E., & Bamforth, K. (1951). Some social and psychological consequences of the longwall method of coal getting. Human Relations, 4, 3–38. Tuchman, B., & Romanelli, E. (1985). Orga- nizational evolution: A metamorphosis model of convergence and reorienta- tion. Research in Organizational Behav- ior, 7, 171–222. Von Gilnow, M., & Mohrman, S. (Eds.). (1990). Managing complexity in high technology organizations. New York, NY: Oxford University Press. Les Martel is Principal Organization Development Consultant with Stratist; a globally focused strategy consulting firm based in New York City. He works with organizations to strategically reposition their business for the Networked Era. Martel focuses on designing and implementing the people architecture that drives the integration of strategy, processes, and structure for this new era. He can be reached at lesmartel@gmail.com or http://www.linkedin.com/ in/lesmartel Jeff Loehr is a strategy and organization design consultant based in New York City. He brings extensive international and cross industry experience, strategic insight, and problem solving skills to bear on complicated issues at compa- nies of all sizes - from startups to some of the world’s largest companies. His experience includes corporate strategy development, innovation, new market entry, risk management, and creating effective organizations in the networked era. Some of the companies he has worked with include: Butterball, Daimler Benz, the Ford Motor Company, Borax, Rio Tinto, and Peabody Energy where he has been a leader in developing strategy and innovation projects that drive efficiency and rapid growth. He is active in the design of new organizational models for the networked era and bringing new ways of working to companies looking to meet the challenges of a changing market. He has also developed innovation processes that have allowed both industrial and also consumer firms to reinvent themselves, create new operating models, and redesign operations. Loehr has an MBA from the Anderson School at UCLA. He can be reached at www.stratistconsulting.com or jeff.od@stratistconsulting.com 11Reinventing Your Company for the Networked Era