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Social Capital: Glue for Sustainability  Victoria G. Axelrod Cedar Island, Second Life  April 14, 2009  A NETWORK   MINDSET
AGENDA ,[object Object],[object Object],[object Object],[object Object]
Open Systems- Network Mindset Quiz   ,[object Object],[object Object],2. Anyone believe you can create business value using social networks? 3. Who’s read:  a) The Wealth of Networks ? b) Wikinomics ?  c)  Mobilizing Minds ? 4. Anyone conducted a Network Analysis?   5. Any practitioners of open systems processes like  Future Search?   Open Space?
Why a Social Capital Workshop, Now?   Cataclysmic shift in marketplace. Groundswell  and  Facebook Era Potential to use net∞WORKed information to drive sustainable 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
Simon sees DUCKS But, CONSIDER the POND
More than the eye can see No food web. No ducks
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
http://www.wildeducation.org/programs/nww06/watershed_illustration2.jpg Watershed ECOSYSTEM   Ponds CONNECTED
 
ONA Reveals Formal V  Informal Structure Petroleum Drilling Key middle managers Peripheral people Isolated group Cross R. & Parker, A. 2003
Personal Network Drawing Exercises Physical Life
Individual Network Identification And Analysis Exercises ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Individual Network Identification And Analysis Exercises ,[object Object],[object Object],[object Object],[object Object]
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 UCINet     1988 Rob Cross UVA  Network Roundtable Survey software 2003 “The Hidden Power of Social Networks” co-author  Andrew Parker  (Stanford) 2000 IKO Ronald Burt  Uni. of Chicago Structural Holes  David Krackhardt  Carnegie Mellon 1993- “The Company Behind the Chart”  HBR John Seely Brown  XEROX PARC  1995 “People are the Company: Fast Company” Verna Allee  Value Networks 1997  “The Knowledge Evolution” Valdis Krebs Inflow  1990 Wayne Baker  Social Capital Uni Michigan Ranjay Gulati  Northwestern Relationship assets Larry Prusak & Tom Davenport  Babson building on IBM IKO work Mark Granovetter   Stanford University  2000 Silicon Valley Networks 1974 Getting a  Job:  A Study of Contacts and Careers  Harvard Moreno-   1931- Sociogram  Barry Wellman   University  of Toronto N etworked individualism Steven H. Strogatz Cornell Sync  2003
Influence Network, Who is Missing? 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
=
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????
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
What is value you are trying to create? What is business challenge?  What stakeholder network do you need to assemble?? What questions are trying to get at? Application for Creating Sustainable  Organizations
Potential ONA Applications ,[object Object],[object Object],[object Object]
net ∞ WORK   Understanding human networks as resources to be WORKed to create value for organizations
Reflections & Feedback Please  What did you find most interesting? What was unclear?  What will you take away?   
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Continuing the Conversation

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Social capital sustainability Second Life 4 14 09

  • 1. Social Capital: Glue for Sustainability Victoria G. Axelrod Cedar Island, Second Life April 14, 2009 A NETWORK MINDSET
  • 2.
  • 3.
  • 4. Why a Social Capital Workshop, Now? Cataclysmic shift in marketplace. Groundswell and Facebook Era Potential to use net∞WORKed information to drive sustainable business strategy
  • 5. The sum of all of an organization's relationships through individual networks. Social Capital Sustainable organizations with high social capital contribute positively to the ecosystem in which they operate.
  • 6. … in the context of networked organizations, is focused on the ability of the organization to adapt to a rapidly changing external environment. Organizations that have a deep understanding of the dynamic power of networks , both internal and external, have a greater potential to survive. Network analysis provides organizations and individuals the tools to assess current networks and intentionally shape future network patterns . Sustainability
  • 7. Simon sees DUCKS But, CONSIDER the POND
  • 8. More than the eye can see No food web. No ducks
  • 9. 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
  • 11.  
  • 12. ONA Reveals Formal V Informal Structure Petroleum Drilling Key middle managers Peripheral people Isolated group Cross R. & Parker, A. 2003
  • 13. Personal Network Drawing Exercises Physical Life
  • 14.
  • 15.
  • 16. 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?
  • 17. Organizations as Networks Thought Leaders Steve Borgatti University of Kentucky UCINet 1988 Rob Cross UVA Network Roundtable Survey software 2003 “The Hidden Power of Social Networks” co-author Andrew Parker (Stanford) 2000 IKO Ronald Burt Uni. of Chicago Structural Holes David Krackhardt Carnegie Mellon 1993- “The Company Behind the Chart” HBR John Seely Brown XEROX PARC 1995 “People are the Company: Fast Company” Verna Allee Value Networks 1997 “The Knowledge Evolution” Valdis Krebs Inflow 1990 Wayne Baker Social Capital Uni Michigan Ranjay Gulati Northwestern Relationship assets Larry Prusak & Tom Davenport Babson building on IBM IKO work Mark Granovetter Stanford University 2000 Silicon Valley Networks 1974 Getting a Job: A Study of Contacts and Careers Harvard Moreno- 1931- Sociogram Barry Wellman University of Toronto N etworked individualism Steven H. Strogatz Cornell Sync 2003
  • 18. Influence Network, Who is Missing? 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
  • 19. 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
  • 20. =
  • 21. 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????
  • 22. The Organizational Challenge Social Technology Control Time Degree Enterprise systems , Blogs Wikis Podcasting , Social Networking Tagging Ethernet 1973 Web 1.0 1991 Web 2.0 Web 3.0 Search Links Authoring Tags Extensions Signals as social technology INCREASES Direct control DECREASES Web 3.0
  • 23. E2.0 S L A T E S Impact Changes Participation & Working Networks “ Change the patterns of participation, and you change the organization. At the core of the 21st century company is the question of participation. At the heart of participation is the mind and spirit of the knowledge worker....” John Seely Brown & Estee Solomon Gray, “The People are the Company” Fast Company Issue 01, October 1995 http://www.fastcompany.com/online/01/people.html Organizational boundaries Inside & out less bounded
  • 24. Participation is Individual & Complex High Engagement Low Engagement Facilitators Roles   Attention Connection Participation Contribution Adapted from Ross Mayfield April 2006
  • 26. What is value you are trying to create? What is business challenge? What stakeholder network do you need to assemble?? What questions are trying to get at? Application for Creating Sustainable Organizations
  • 27.
  • 28. net ∞ WORK Understanding human networks as resources to be WORKed to create value for organizations
  • 29. Reflections & Feedback Please What did you find most interesting? What was unclear? What will you take away?  
  • 30.

Editor's Notes

  1. In a technology enabled people networked world value is increasingly created through relationships and interactions. For the environment Axelrod is discussing how to intersect technology and organizational models to gain additional value from network effects and mass collaboration.
  2. 1. Reveal the real communication flows: blocks, gaps 2. Identifying right people (stakeholders) for a business conversation 3. Speeds innovation & growth process 4. Brings the outside of the organization inside (customers, partners, suppliers, innovation leaders, regulators) 5. Co-creation enables ownership in the business endeavor
  3. Intent to add logos
  4. Another way to look at our topic is through Simons’ duck poind. Those who know Simon will also know he has an enthusiasm for ducks, as his email signature says, because “their fowl, but not by choice”. So while I assume Simons’ focus in looking at his photo is the ducks, for me it’s the POND…
  5. .. And the reason is because for just like an organization when you have the tools and can peer into the pond a lot more is going on than you imagine. Specifically here there is a complex food web at work, with the bottomline no food web in balance, no ducks on the pond.
  6. So it is for organizations. When you have the tools you can better understand how your organization operates as an extended complex web,
  7. Furthermore while not obvious from just gazing at the poind, if you raise your vision to seeing the bigger picture it’s clear the pond is part of a much larger ecosystem. Both natural forces like rainfall and drought impact as well as man made activities like damming streams and adding pollutants.
  8. Where are the roadblocks that you can impact…. “ Social Network Analysis is a mathematical and visual analysis of relationships / flows / influence between people, groups, organizations, computers or other information/knowledge processing entities – Valdis Krebs
  9. .. And by drawing on the efforts of folks like these you have tools to better understand how your organizations actually work to help you both see how inserting E2.0 tools is changing patterns of participation, as well as where you can make changes to enhance adoption and use. … When IBM closed IKO Prusak migrated to Babson where with Thomas Davenport runs the Working Knowledge study group. You might have seen Davenport’s latest book called: Thinking for a Living: How to Get Better Performance And Results from Knowledge Workers (Hardcover) This slide gives you a picture of the people leading the thinking about networks in organizations and developing the network analysis methods to better understand how relationships are impacting the way work gets done and the interventions to improve producitivity. Prusak and Davenport are just Rob Cross a Professor at McIntire School of Commerce, UVA, was an IKO research fellow and now runs the Network Roundtable there. The next meeting is in November. This presentation embodies the approach and thinking that is being generated out of the Roundtable research. I’m sure you all have personal networks that you reach out too…
  10. People are not computers and their ability to adapt is not as swift. To extend computing capability you simply add servers with understood capabilities of memory and processing power. But when you look at a organizational network analysis the differences in people’s influence and connectedness quickly become clear. Not everybody is connected. Some people have more connections and ability to connect.
  11. Design for Network Effects: Architecting participation and leveraging the space between the tools. Jenny Ambrozek, SageNet LLC In a technology enabled people networked world value is increasingly created through relationships and interactions. For the environment Jenny Ambrozek is discussing how to intersect technology and organizational models to gain additional value from network effects and mass collaboration.
  12. As “social technology” – all of the social websites and social software access and technologies increases direct control diminishes. Other processes do come into play to prevent the “dark side” of open systems from becoming corrupted. Processes such as moderation, as in wikipedia where a core group keeps track of the pages and the emerging patterns of interaction. The visualization of wikipages research http://www.research.ibm.com/visual/projects/history_flow/ Other impacts are the leadership role changes then to one of facilitation of interaction, enabling information flow, moderation of interactions, setting of principles for interaction, etc. This now links with the PowerLaw of Participation slide. Social Technology creates a diffuse core not central bounded nextwork. So issues of power and control need to be redefined. Some of the recent research is looking into the network dynamics – the emerging formulas for success, prediction and shaping of successful network structures. Search Links Authoring Tags Extensions Signals Enterprise 2.0 Technology components ~ Andrew McAfee,
  13. ..that I believe comes from how it changes patterns of participation and the way work gets done across and beyond traditional boundaries of organizzations. These tools in the hands of individuals amplify their work and if you are a manager, especially in the IT department, who likes order and structure, are disruptive. Tbat’s why to me it’s important along with putting these tools to work in organizations is to devote energy as well to really understanding how work is getting done, where are the stuctural holes in your organization and how you can put these tools to work to fill them. Organizations are Webs of Participation Not a new idea– more than a decade ago JSB & ESG forecast the challenge Aftermath of exercise: Let’s think about what went on here.. Exchange Social capital creation– the tags at the back of the room Implications for organizations- Structuring around connection, sharing and participation to create value
  14. Graphic a work in progress. Extending Ross Mayfield’s diagram
  15. Bill..beginning to think what do these people from them?
  16. Here are some ideas that help me in putting networks to work in organizations. You’ve been at the conference. You will go back to the day-to-day and be back in the weeds as Victoria is prone to say. Some ideas to keep out of the weeds as you go about your work.