The Problem is Everywhere

The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess. The economic problem of society is thus not merely a problem of how to allocate “given” resources—if “given” is taken to mean given to a single mind which deliberately solves the problem set by these “data.” It is rather a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only these individuals know. Or, to put it briefly, it is a problem of the utilization of knowledge which is not given to anyone in its totality. – Friedrich A Hayek “The Use of Knowledge in Society”

Yesterday I met with an organisation that wanted some of my help as they sought to solve a problem. The organisation was developing a new knowledge sharing system to enable is staff to be better informed about products and processes. There was one slight issue with this problem. The organisation already had multiple systems to enable its staff to be better informed about products and processes: intranets, social networks, training, help & support tools, automation, etc.

Problems Everywhere

As we asked why these other systems didn’t work it became clearer that the project team’s issue was that it was solving a problem for others, rather than with others. The explanations for needing a new system did’t stack up and suggested there was more that needed to be learned from the users:

  • ‘Most of the learning is peer to peer. We need to give them better options’: Why do they prefer to learn from peers who might be inaccurate or unavailable? Why will they change this if you offer a new system? 
  • ‘They won’t use a collaboration system because they say they don’t have the time’ : if time is a question of priority, why isn’t it a priority? To what extent is the culture, leadership and performance management of the team driving this lack of priority? If they won’t collaborate why will they have the time to use something else? What is there time actually spent on? What do they do instead?
  • ‘Those system don’t give them the answers they need so we are building a new one’: If the last system didn’t understand what was required, how do you? What does relevance look like to each user? What does relevance look like to their customers?
  • ‘They want help with process X, but we are building something innovative for all processes’: Why do they want help with that process? What’s innovative about ignoring the demand?

The Answer is Everywhere

The answers to these questions are dispersed in a wide range of people beyond the project team. They draw in questions of culture, of practice, or rational and irrational behaviour by real human beings doing real work under the daily pressures of customers and a large organisation. There’s a lot of learning to do.

We have the tools to solve this dispersion and gather insights into what needs to be done in the practices of Big Learning:

  • we can actively collaborate with the users and other participants in the system to get under the pat answers and explore the deeper reasons and problems
  • we can use the practices of design thinking to better understand and shape employee behaviour & the systems involved in action
  • we can analyse data to understand in greater detail what is going on
  • we can experiment and iterate to ensure that proposed changes work the way that we expect
  • we can enable and empower the users to create changes to their work
  • we can accelerate the interactions and the cycles of learning to move faster to better solutions

These aren’t parallel techniques to be applied independently. The practices of Big Learning work best as an integrated system that draws together the insights from all of these approaches to help organisations learn and work. Big Learning enables organisation to work with and through its employees to deliver change. Change does not have to be done to them.

The reason organisations need to develop systems to facilitate Big Learning is elegantly described by Hayek in the conclusion to his essay “The Use of Knowledge in Society”.  Hayek was critiquing the schools of economists who thought that centrally planned interventions designed by experts would be effective. The context may differ but organisations still use forms of central planning by experts to create change. These changes fall short for a fundamental reason – experts can’t know enough alone:

The practical problem, however, arises precisely because these facts are never so given to a single mind, and because, in consequence, it is necessary that in the solution of the problem knowledge should be used that is dispersed among many people

The practices of Big Learning help bring people together to share insights, learn and work as one.

CEO: This job is almost impossible

I am very pleased to be sharing with you today my first post as CEO. Apologies if it seems a little frazzled. I am by the challenges ahead but that’s also because I am writing at home surrounded by the turmoil of my young family. I thought I would pass over the usual inspiring memo and start a conversation here in our enterprise social network. I am humbled by the many posts here that saw me selected as your CEO. I now have a great challenge ahead to honour that confidence in my potential as a leader and to use my new position wisely. We have many challenges ahead and we will need to work together to solve them.

As he was leaving the organisation, my predecessor remarked “This job is almost impossible. You are going to need a lot of help to fix things”  Yet again he was incredibly insightful. 

A Big Challenge

I suspect I see the job of a CEO slightly differently to my predecessor but I agree on its challenges. I see the CEO as less of a commander atop a hierarchy. I haven’t won this role for my expertise or ability to make all the decisions needed. For me a CEO is a guardian of the organisation’s purpose and its impacts for customers, community and people. Ultimately, the CEO is held accountable by these stakeholders for their ability to facilitate great outcomes from the whole team.

To advance our purpose and improve our effectiveness, I will be less of a boss and leading the way as a change agent helping to create the needed focus, better performance and accountabilities in our organisation’s network. At the same time I recognise in a time of rapid change I need to lead the way as learner in chief. That will be easy for me. One of the reasons I am frazzled is that I have a big learning curve ahead and our organisation has a lot to learn.   

Learning on the job as CEO is almost impossible, how can you help me to learn the role, learn better ways of working and learn the future of this organisation?

Only A Job 

I am acutely aware that CEO is only one job. Some CEOs confuse the job and the role thinking that their personal power and expertise is the answer to the organisation’s challenges. I know too well that I don’t have the expertise and I don’t have the answers. You know that well. It was discussed aloud when you chose me.

My authority comes not from the role but from your confidence in my ability to help realise our purpose and to create the answers we need together. That is the only sustainable basis of your decisions to follow. We need to replicate relationships based in understandings of capabilities, effectiveness and authority for every role in the organisation so that anyone can lead, can contribute their expertise and realise their potential. Working together in this way and working explicitly on our relationships will make our interactions can be rich in trust and quickly identify those who would rather work elsewhere. 

Changing our leadership approaches and relationships is almost impossible, how can you help me to create new relationships in this organisation?

We’re Together in Change 

We need trust and strong relationships because we are going to work to use all our talents to fixing things together. We need the people closest to our customers and those with new ideas and new information to have the authority to make change and to call on the support of their colleagues to see it through. At times, we have valued processes and rules over outcomes for our customers and our people. Not all of our ways of working deliver the outcomes we want. We aren’t as responsive as we would like. We have work to do. All our employees have the responsibility to find fixes to the issues that they see in our business. They won’t be able to do that on their own. They will need your help too. 

We will only succeed in the harsh competitive environment if we have the ability to better leverage the talents and potential of all our people. Together we will focus on how we improve everyone’s effectiveness, autonomy and agility to deliver better outcomes for the organisation, its customers & community and importantly for themselves. Our collaboration will be critical to connect us, to share information and to solve the daily obstacles we face to better performance. Everyone has a role to play in this.

Realising the potential of all our people to contribute to purpose is almost impossible, how can you help me to accelerate our change?

Let’s Continue the Conversation

Attached to this post is a memo that the executive sent to the CEO some time ago outlining the importance of this enterprise social network to our strategy. Unfortunately, as it was a email it was only seen by the CEO and the executive team. As all our employees will contribute to creating value for our customers through collaboration and continuous improvement, it would have been wiser to share this with you earlier. As we move forward, our leadership team has agreed to write fewer politely worded memos and to engage in real conversations out loud here in the enterprise social network. I would ask you each to work out loud too.  Sharing our work as it progresses is a way to help us learn and improve.

Our future success is a real challenge. It always is. You might even say it is almost impossible, but nothing less would suit our very capable people. We will improve and deliver our purpose one day at a time. I am frazzled but I couldn’t be more excited as CEO as I have confidence that this amazing group of people will help find each day’s answer to the question: 

‘What Do We Need to Improve Today?’

It is almost impossible to believe that I am CEO of this great network of talented people. I know you will help me get over that too!

Previous posts:

#1 The Last Thing We Need Is An Enterprise Social Network

#2 Dear CEO: This Enterprise Social Network Doesn’t Work For You

Coach the Community to Create Value

We may have begun to move from an adoption conversation to a value conversation. However our hierarchical mindsets can still hold us back. A responsive organisation needs to shape how value arise from collaboration, not try to specify it top down.

Embrace Value

More and more organisations are focusing on how to create strategic business value in their organisation through the use of collaboration. They are seeing the value that can be created as a community journeys from Connection to Innovation. They recognise that adoption & use should reinforce the strategic goals of the organisation and is not an end in itself.

The Temptation to Specify

When an organisation identifies the way that it can create value in a community, our hierarchical tendencies begin to kick in. We start to specify how a community shall work to create value. This is how most organisation’s strategy planning processes usually work. We end up with a plan of what other people have to do. 

Some guidance can be useful at the beginning of a community’s life when people are sense making. However, too much instruction will become a constraint on the value creation if the goals of value creation remain externally imposed on the community.

The best value comes when a community can use its knowledge, capabilities and ideas to create value in new ways. That won’t happen if the community has specified usage cases and a limited focus on the value that it can create.

Coach the Community to Create the Own Value

A large part of the difference between management and leadership is the difference between direction and coaching. Responsive organisations demand leaders who can coach teams managing highly adaptive situations, rather than direct.

Organisations need to coach the members of their communities to create valuable new ways of working using collaboration:

  • Coaching begins by clarifying goals: How do you help your communities understand the alignment between organisations strategic goals and the goals of their own work? 
  • Coaching should enable action & experimentation: How do you help people to translate the opportunities that they can see into work that they can do alone or with the support of others?
  • Coaching should build capability: What skills do people need to manage this process for themselves? What barriers need to be cleared? How can they learn to create, deliver and coach themselves going forward?

The Value Maturity Model Collaboration Canvas is a coaching framework to help community leaders, champions and managers to shape the creation of value through collaboration. The tool asks members of the community to think through the questions that will enable them to create their own value. Spreading this coaching mindset through your organisation is the most powerful way to transform the value created by collaboration & communities. Spreading a coaching mindset through your organisation builds capability as it builds alignment and creates value.  Enabling people to coach themselves helps your organisation become more responsive. It is the only way that you will get the value you didn’t plan and to adapt to the challenges you did not forecast.

Why doesn’t your community plan involve your community?

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Many organisations want the benefits of better collaboration and the potential of better leveraging the potential of their people in a community. Increasingly with the availability of enterprise social networking, social mobile apps and integration into other productivity tools, organisations have the network capabilities to create the communities at hand.

A Network with a Demanding Boss

Too many plans for enterprise social networks and communities are developed without any community participation. The organisation wants something from the network. They set about getting that goal. When realising the goal proves harder than they expect, the organisation resorts to communication, performance levers, gamification, or maybe even ‘change management’. Many of these remain efforts to impose an external rationale on a network.

If the goals of a network are imposed externally, it is not a community. It is a network with a demanding boss. Any network of this type will lose energy over time as people query the benefits of their participation.

Use the Network to Create a Community

A community comes together around a common set of purposes.  Use your network to discover, discuss and align those goals. Engage the people that you would like to form a valuable community to find out how they want to engage.  My work shows that people have their own great reasons for adopting the practices that accelerate value at work and build communities. Those practices are those of the Value Maturity Model –  Connect>Share>Solve>Innovate.

The organisation’s goals will become a part of that discussion naturally.  Everyone works for the organisation and there will be some shared purpose. By engaging people you will discover the greater potential of the community and leverage its rich diversity of talent and perspective.

Ask leaders to lead

Much has been discussed about executive participation in enterprise social networking. Often it is seen as the panacea that will make people do the ‘right things’ in the network. Even the busy senior executives struggle to participate when it is imposed on them as an externally mandated task.  Again, the effort is to impose an external logic for networking.

When you focus on the community, what is clear is that what is needed is leaders. We don’t need participation from senior executives, when need people who are willing to take on the role of leader in the community to help the community to achieve its purposes. Leadership should come from senior executives, but it can also come from other community leaders, influencers and champions.

Don’t focus solely on senior executives. Focus on finding leaders willing to help create a community and drive change.  These people may well be your organisations mavericks and change agents.  Embrace their ability to lead.

The Value Maturity Model is an approach to help organisations create strategic value in collaboration and social networking. The Value Maturity Model Canvas helps organisations to develop agile plans for communities using participation of community members. To learn more, get in touch with Simon Terry via about.metwitter or Linkedin.

Networks connect. Communities mature.

Connection = Network

Connect is the first stage of the Value Maturity Model of collaboration because connection is what creates a network. Until people are connected together you don’t have any ability for someone to exceed their individual potential.

Connection only gets you a network. One of the reasons many people have been disappointed by their enterprise social network or their social media strategy is that they have not seen beyond creating the connections. A network has no vision.  A network has no purpose. A network is neutral in creating value.

Community = Value

Community creates the value. Community is how people come together to share their talents and create greater value together. Communities can create visions, realise the shared purposes of individuals and work together to achieve more.

Network connection happens immediately. Community develops over time as people learn to trust others and as people learn the new interactions that create value for themselves and others. Sharing, solving problems and innovating together deepens the community and enables individuals to grow in their potential. These communities also always exist within larger communities, like companies and society, that are often more important in shaping the way people act.

People = Potential

Focus on the potential of human communities. Remember that bringing people together in a network is just the beginning of the potential that people can create. Communities will mature with common goals, leadership and action over time.

Create a Reputation Economy

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Connecting and Sharing create a reputation economy in your organisation to underpin the trust and collaboration required to Solve and Innovate.

Four topics are commonly discussed in communities around enterprise social networks:

  • Why would anyone go out of their way to help others?
  • How do we increase the value of collaboration in our organisation?
  • What is the role of leaders?
  • How do we cut down the gossip and non-work conversation in our network?

The answer to these four questions are connected to one element of successful networks: they create a reputation economy in the community that fosters collaboration.

The Value of Reputation

Humans aren’t the rational economic machines that most organisations try to manage with role descriptions, performance plans and other incentives. Humans do things outside the job description and the process every day.  We work around the hierarchy.  Importantly, we collaborate because we value relationships and we know that the returns from collaboration exceed the costs in our effort.

One of the challenges of collaboration is the danger that others will free ride on your efforts, improving their performance but bearing none of the costs. Mark Pagel’s Wired for Culture uses evolutionary approaches to behaviour to examine an important part of our defences against free riding, reputation.  Because our relationships with our work colleagues are not transactional, over time we build a level of trust and a reputation for each colleague based on their behaviour.  This reputation system influences who and how we collaborate with others.

Ever wondered why a users first ever request for help or crowd sourcing of ideas will usually struggle?  They have no reputation in the community and others will hang back until someone shows they can be trusted. 

Increasing the transparency and connection of reputation in your organisation will accelerate collaboration not just in a social network or other tool.  Collaboration across the organisation will leverage the new transparent reputations developed.

Building Reputation

We don’t build reputation with our status in the organisation or by declaring we can be trusted.  We build reputation through with who we are associated and how we act, particularly when we act against our interest.

The Connect and Share phases of the maturity of a collaboration community enable people to develop these critical stages of reputation. Working out loud for the benefit of others can accelerate that trust.  As can demonstrating and encouraging a growth mindset.   Sharing information, insights and solutions, particularly when there is no reason or benefit to the sharer is a powerful way to build a reputation.  Others sharing without penalty and preferably receiving benefits establishes the view in the community that it is safe.

The reputations and the trust built in Connect and Share are what powers the value in the later stages of the model.  People contribute later because they know that their contributions go to those who they respect and have the interests of the community at heart.

The Importance of Leaders

Leaders bring status into communities. However, as noted above, the presence of status is not enough to create or sustain trust.  Actions by leaders count.  

Leaders can play a critical role in showing the way to build reputation and in establishing that collaboration is safe and beneficial.  Importantly, leaders can use their authority to calling out free-riding behaviour and encourage participation by others. Leaders can acknowledge the reputations built in the community giving them greater influence in the organisation.

Leaders also need to be aware that their status also brings a fragility to their own personal reputations.  If they fail to act in the community to reinforce their authority, it will erode rapidly.

The Critical Role of Gossip & Non-Work Conversation

Organisations hate gossip and non-work conversation. They are seen as a threat to the singularity of corporate messaging and a waste of time.

However, gossip and non-work conversation are critical parts of reputation systems.  Gossip is how we share our views of others reputations. Non-work conversation is another way for us to share and build our reputations with others.

Create a reputation economy in your collaborative community by fostering connection and sharing.

The Value Maturity Model is an approach to enhancing the value of collaboration in your organisation.  The Model is supported by a range of tools and practices to enable leaders and community managers to maximise the potential in collaboration.  If you would like to learn more about the Value Maturity Model, get in touch with Simon Terry.

The Growth Mindset of Collaboration

Over the last week I have been speaking to a number of organisations across SE Asia around how they can start to realise the value that collaboration can create.   I was outlining my Connect>Share>Solve>Innovate model and helping organisations to plan their collaborative communities using the approach. 

One question kept coming up. The commonest question I was asked was a variant of the following:

How do we encourage our employees to share and try to solve problems when they are afraid to make a mistake?

At the heart of this anxiety is what Carol Dweck of Stanford refers to in her book Mindsets as a fixed mindset. If an employee believes that their ability, status or position is fixed, then they do not want to risk anything that might show themselves as performing below expectations. In a fixed mindset, you avoid testing your inherent capabilities for fear that you will be disappointed. Highly hierarchical organisations encourage a fixed mindset.

Collaboration demands what Carol Dweck calls a growth mindset. To collaborate, we have to believe that through work and effort we can learn and get better together. Mistakes, embarrassment and other challenges are learning opportunities that are overcome with effort.

Shifting to a Growth Mindset

My answer to the question above came down to a simple recommendation:

Make sure in the culture of your organisation there is a personal accountability on employees to improve their work every day.

This recommendation sounds so obvious. Surely we can expect this from any manager.  However, many organisations treat their employees as if their capabilities are unchanging, that improvement is the work of specialists and managers and that daily productivity is all that matters. Mix in hierarchical relationships and you have strongly reinforced a fixed mindset in the culture of the organisation i.e. do your job with minimum effort to the best of your ability only and wait to be changed.

There are many ways a personal accountability for improvement can be created in organisations:

  • customer experience, customer service improvement, etc
  • continuous improvement, productivity, kaizen, six sigma, etc
  • rising financial or performance expectations
  • personal leadership expectations
  • innovation, experimentation, agile, lean startup principles, etc
  • organisational values of improvement, growing impact on purpose, etc
  • talent development and on the job learning

Use one or all of the above. Whatever way it works in your organisations culture and strategy, the requirement is that your organisation expects and rewards people for the daily effort to improve. Over time that helps to create an expectation that every individual will work to make their work better.

The growth mindset in your organisation will drive the value of more mature forms of collaboration. Importantly, it will also drive an uplift in performance overall.

The Double Loop Learning of Working Out Loud

Today I presented a case study at Learning Assembly Australia (#learnaus) on my personal practice of working out loud.  Like many such presentations, we were soon discussing the value of working out loud on the practice of working out loud. We needed the help of my #wolweek colleague, Jonathan Anthony, the master of meta when it comes to working out loud

However, there is an important reason working out loud commonly creates this experience. Working out loud fosters double loop learning.

The Double Loop

The concept of double loop learning is expounded in Chris Argyris’ classic article ’Teaching Smart People How to Learn’. Argyris contrast double loop learning with the single loop of every day problem solving.  He expresses double loop learning this way:

if learning is to persist, managers and employees must also look inward. They need to reflect critically on their own behavior, identify the ways they often inadvertently contribute to the organization’s problems, and then change how they act. In particular, they must learn how the very way they go about defining and solving problems can be a source of problems in its own right.

Working Out Loud Facilitates Double Loop Learning

When you narrate work in progress and do so visibly, you expose to others the single loop in process. Suddenly your behaviours, context, assumptions and approaches are open for review.  When you begin to answer questions or respond to suggestions of others on your work, you are prompted to reflect on the approach you have chosen. This process of reflection on how you are working opens up double loop learning.

Many people discover the presence of others is not even required for double loop learning to occur.  The process of getting your work visible and shareable can help you to realise new and better ways of achieving your goals. This process can also cause you to reflect on your role in the wider system with whom you are about to share your work. There is nothing quite like the challenge of expressing your thoughts to straighten out your thinking.

The power of double loop learning is that it can help realise breakthrough change in your personal effectiveness. By clearing the blockages, assumptions and other constraints that you have imposed on yourself, your work effectiveness increases. New avenues for learning open up.  Importantly, learning accelerates because the work & the reflection accelerate.  The faster you move around both single and double learning loops the greater the progress towards mastery.

Working Out Loud is a reflective practice. Use it to develop your double loop learning. Working Out Loud is a practice to help ‘learn how to learn’.

Episode 6: Executive Engagement in Enterprise Social Networks / Work out Loud Week with Simon Terry | The Yaminade

Paul Woods and I discuss strategic value, leadership, authority, executive engagement and working out loud on the Yaminade podcast.

Episode 6: Executive Engagement in Enterprise Social Networks / Work out Loud Week with Simon Terry | The Yaminade