Esko Kilpi on Interactive Value Creation

The art of interaction, the design of digital and the science of social complexity

The magic power of transparency and links

Eugene Garfield founded the Institute for Scientific Information in 1960.  His pioneering work was in citation indexing. This allows a researcher to identify which articles have been cited most frequently and who has cited them. Garfield’s studies demonstrated that the number of citable items, i.e. the number of papers, together with the frequency of their citation, meaning how many scientists link to the paper, is a good measure of scientific success. The system effectively measures quantity and quality at the same time.

The whole Web is a densely interconnected network of references. It is no different from the practice of academic publishing and citation indexing. Links on the Web are also citations, or votes, as the founders of Google realized. The observation of Larry Page and Sergey Brin that links are in fact citations seems commonplace today, but it was a breakthrough at the time Google started on September 7, 1998. What Google did was essentially the same as had been done in academic publishing by Eugene Garfield.

But at this time, relevance and importance were measured through counting the number of other sites linking to a Web site, as well as the number of sites linking to those sites. What Google has proved is that people’s individual actions, if those actions are performed in a transparent way, and if those actions can be linked, are capable of managing unmanageable tasks.

Cooperation and collective work are best expressed through transparency and linking.

The mainstream business approach to value creation is still a predictive process designed and controlled by the expert/manager. This is based on the presuppositions that we know (1) all the linkages that are needed beforehand, and (2) what the right sequential order in linking and acting is. Neither of these beliefs is correct any more.

The variables of creative work have increased beyond systemic models of process design. It is time to learn from the Internet

By relying on the unmanaged actions of millions of people instead of experts/managers to classify content on the net, Google democratized scientific citation indexing. To be able to manage the increasingly complex organizations of today, the same kind of democratization needs to take place in the corporate world. The transparency of tasks is the corporate equivalent of publishing academic articles. Responsive linking, rather than predictive linking, as in hierarchies and process charts, acts as a measure of contextual relevance.

Complex, creative work requires new approaches to organizing. The Google lesson for management is that the more work is based on responsive processes of relating and the more organizing is an ongoing process in time, the more value we can create!

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On the perceived relevance of academic papers.

The Social Graph of Work

The approach of the industrial era to getting something done is first to create an organization. If something new and different needs to be done, a new and different kind of organizational form needs to be put into effect. Changing the lines of accountability and reporting is the epitome of change in firms. When a new manager enters the picture, the organizational outline is typically changed into a “new” organization. But does changing the organization really change what is done? Does the change actually change anything?

An organization is metaphorically still a picture of walls defining who is inside and who is outside a particular box. Who is included and who is excluded. Who “we” are and who “they” are.

This way of thinking was acceptable in repetitive work where it was relatively easy to define what needed to be done and by whom as a definition of the quantity of labor and quality of capabilities.

As a result, organizational design created two things: the process chart and reporting lines, the hierarchy.

In creative, knowledge based work it is increasingly difficult to know the best mix of people, capabilities and tasks in advance. In many firms reporting routines are the least important part of communication. Much more flexibility than the process maps allow is needed. Interdependence between peers involves, almost by default, crossing boundaries. The walls seem to be in the wrong position or in the way, making work harder to do. What, then, is the use of the organizational theatre when it is literally impossible to define the organization before we actually do something?

What if the organization really should be an ongoing process of emergent self-organizing? Instead of thinking about the organization, let’s think about organizing.

If we take this view we don’t think about walls but we think about what we do and how groups are formed around what is actually going on or what should be going on. The new management task is to make possible the very easy and very fast emergent formation of groups and to make it as easy as possible for the best contributions from the whole network to find the applicable tasks, without knowing beforehand who knows.

The focal point in organizing is not the organizational entity one belongs to, or the manager one reports to, but the reason that brings people together. What purposes, activities and tasks unite us? What is the cause of interdependence and group formation?

It is a picture of an organization without walls, rather like contextual magnetic fields defined by gradually fading rings of attraction.

Instead of the topology of organizational boxes that are still often the visual representation of work, the architecture of work is a live social graph of networked interdependence and accountability. One of the most promising features of social technologies is the easy and efficient group formation that makes this kind of organizing possible for the first time!

It is just our thinking that is in the way of bringing down the walls.

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Why companies don’t grow – The idea of the platform company

The effects of Moore’s law on the growth of the ICT industry and computing are well known. A lesser-known but potentially more weighty law is starting to replace Moore’s law in strategic influence. Metcalfe’s law is named after Bob Metcalfe, the inventor of the Ethernet. The law states that the cost of a network expands linearly with increases in the size of the network, but the value of the network increases exponentially. When this is combined with Moore’s law, we are in a world where at the same time as the value of the network goes up with its size, the average costs of technology are falling. This is one of the most important business drivers today. The implication is that there is an ever-widening gap between network-economy companies and those driven by traditional asset leverage models. Traditional business economics focus on economies of scale derived from the capital base of the company, which tends to scale linearly

In practice this means that digital services can attain the level of customer reach and network size, required to capture almost any market, even as the size of the company stays relatively small. This is why network-economy based start-ups have such a huge advantage over asset leverage based incumbents.

The principles behind this are not totally new.

It used to be argued that goods for which the marginal costs, the cost of producing one more unit of customer value, were close to zero were inherently public goods and should be made publicly available. Before the digital era, roads and bridges were commonly used as examples. Maximum benefit from the initial investment is gained only if the use is as unrestricted as possible. People should have free, or almost free access.  Once the capital costs have been incurred, the more people there are sharing the benefits, the better it is for the whole value system in the future. This was the economic explanation for why roads were, and still are, under public ownership. The same logic applied to public libraries: a book can be read repeatedly at almost no extra cost.

What used to be called “public goods” is today called “platforms”. A new form of a company is being born!

Once the up-front costs have been incurred and the platform is established, the more people there are who are sharing the benefits, the greater the net present value of the whole value system becomes.  A platform company should therefore be as open, as accessible and as supportive as possible, to as many users as possible.  This is unequivocally the route to optimum value creation.  Moreover, the higher the value of the system, the costlier it becomes to all its members to replace it – creating a major barrier to entry.

Restructuring a firm for the new world would require concurrent relative downsizing of legacy systems and upsizing of the new open platforms.  As both are explicitly costly things to do and the financial rewards of the latter are typically deferred, the exercise becomes challenging for incumbents to implement within the constraints of the existing financial frameworks. But it is happening!

Internet scale economies can create almost boundless returns without the company growing at all. The goal of Supercell is to be “as small as possible” as Ilkka Paananen has said. At the beginning of 2013 Tumblr had only 145 employees and 100 million visitors. That meant it had 700.000 visitors per employee. The sheer size of an enterprise will tend to mean less in the digital network business than in the world of physical goods. Companies don’t grow any more in the way they used to! It is the networks that grow!

But something else needs to change too: customer focus has been the dominant mantra in business. Everybody knows that everything should focus on the customer. However this is not enough any more. Up to now, business has focused on the customer as an audience for products, services and marketing communications. In the world of digital networks, the customer will be transformed from being an audience to an actor. The activity of the customer focuses corporate effort.

The central aggregator of enterprise value will no longer be a value chain, but a network space, where these platform companies are fully market-facing and the customer experience is defined by applications connecting to the platform.

The basis of executive power is shifting from being in charge to being connected. New leaders understand that power with people is much more effective than power over people. It is about integrating the best of networked thinking and leveraging the new platforms for value creation.

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Thank you Sasu Ristimäki for the iterations and thank you for developing my thinking.

More on the subject: Jeremy Rifkin.

A Christmas Letter

Gregory Bateson wrote that the major problems in the world are the result of the difference between how nature works and how people think. Mainstream economics still sees the economy and society as ultimately predictable and controllable (machines), although the repeated financial crises have shown how deeply flawed this view of the world is.

Luckily, during 2013, more scholars than ever before saw organizations as being more analogous to nature. There, it is not about predictions and control, but about perpetual co-creation, complex responsive processes and fundamental interdependence. Their claim is that we should study links and interactions. Many aspects of our social and economic world would start to look completely different from this complex network perspective.

2013 also brought us closer to understanding how work itself is changing.

Knowledge work is creative work we do in interaction. Unlike the business processes we know so well, where tangible inputs are acted on in some predictable, structured way and converted into outputs, the inputs and outputs of knowledge work are ideas, information and decisions. Even more, there are no predetermined task sequences that, if executed, would guarantee success. Knowledge work is characterized by variety and exception rather than routine. It is thus impossible to separate a knowledge process from its outcomes. Knowledge work is not “just work”, a means to doing something else! Knowledge work is about human beings being more intensely present. Thus, a business today needs to be human-centric – by definition.

The good news then, is the advances during 2013 in network theory and knowledge work practices. The bad news, as we now look ahead to 2014, is that today we are as far from being human-centric, as we have been for ages. As one example, people still tend to see their work and personal lives as two separate spheres. Although this conflict is widely recognized, it is seen as an individual challenge, a private responsibility to manage.

It is now time to challenge this and see the conflict as a systemic problem. It is a result of the factory logic, which saw human beings as controllable resources and interchangeable parts of the main thing, the production machinery. The context and logic of work are dramatically different today. In knowledge work we need to create an explicit, new connection between work and personal life. We talked earlier about balancing work and life. Here we are talking about connecting work and life in a new way, with a new agenda. Human beings are the main thing.

Traditional management thinking sets employee goals and business goals against each other. The manager is free to choose the goals, but the employee is only free to follow or not to follow the given goals. This is why employee advocates mainly want socially responsible firms, nothing else, and the management of those firms wants committed employees who come to work with enthusiasm and energy. Must we then choose between the goals of the people or the goals of the business, or can the two sides be connected? As we know, passion and commitment are best mobilized in response to personal aspirations, not financial rewards. We need a new agenda connecting people and businesses! The aim, however, is not to have a single set of common goals, but complementary goals and a co-created narrative for both!

Linking personal lives with corporate issues may seem like an unexpected, or even unnecessary connection. But if we don’t learn from network theory and knowledge work practices, and continue to deal with each area separately, both individuals and organizations will suffer. The lack of a connecting agenda may also be one of the big challenges facing the emerging post-industrial society.

We need to study the intersection of business strategy and personal narrative and use the new agenda to challenge our industrial age practices and flawed ways of thinking. Knowledge work needs whole human beings. People who are more fully present, people with responsibility and ownership. We are accustomed to taking work home, but what would the opposite be? This may be the next frontier of social business. More on this next year!

Christmas is a special time for family and friends. Perhaps the rest of the year can also be made very special through rethinking and reinventing some of the basic beliefs we have about work!

Happy New Year!

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Thank you Deborah Kolb, Lotte Bailyn, Paul Ormerod, Ken Gergen, Ralph Stacey, Joyce K Fletcher, Doug Griffin, Kim Weckström and Katri Saarikivi

More on the subject:

Futurice. A company that is already in the future. HBR: “To Optimize Talent Management, Question Everything” HBR: “The Ideas that Shaped Management in 2013” “Essential Zen Habits” “The Third Way of Work” “a way of working where the people doing the work matter as much as the work being done” “Bring Your Own Device is really Bring Your Own Mind” “work is you, you are the work. So what is the future of You?

The Internet of Things

Industrial era enterprises viewed customers through the lens of a fairly uniform set of features, leading to customers being seen as having relatively uniform needs. But even commodity products are always a bundle of use contexts, buying patterns, complementary goods and delivery options. Just because a product is a commodity doesn’t mean that customers can’t be diverse in the ways they use the product.

All use cases are somewhat the same and somewhat different. This means that different customers and processes use products that are manufactured in the same way, with the same product features, differently. It is contextual. Customers and the way products are used, are today understood to be active contributors to value creation. The word “consumption” really means value creation, not value destruction. Companies don’t create value for customers, the way the products are used creates value, more value or less value.

The parties explicitly or implicitly “help each other to help each other”. Value creation is a process of interaction. As the goal is to create more value together, a critically important element would be to implant context aware intelligence and interaction capability to a product.

The Internet of Things refers to embedded computing power and networking capability of the physical objects through the use of sensors, microprocessors and software that can collect, actuate and transmit data about the products and their environment. The gathered data can then be analyzed to optimize, develop and design products, processes and customer services. IoT is often about two new digital “layers” for all products: (1) an algorithmic layer and (2) a network layer.

The algorithmic layer “teaches” the customer and the product itself to create more value in a context-aware way, and accordingly teaches the maker the product to develop. As a result, the customer’s need set is expanded beyond the pre-set physical features of the offering. This changes the conceptual definition of the product and it becomes more complex. The more complex the product, the more opportunities there are for the maker to learn something that will later make a difference.

From a marketing standpoint, when a customer teaches the firm behind the product how she uses the product, what she wants or how she wants it, the customer and the firm are also cooperating on the sale of a product, changing the industrial approach to sales and marketing. The marketing and sales departments used to be the customer’s proxy, with the exclusive role of interpreting changing customer needs. Internet-based business necessarily transforms the marketing function and sales specialists by formally integrating the customer use case into every part of the organization. Thus the customer of tomorrow interacts with, and should influence, every process of the maker through the connected, intelligent products.

In the age of the Internet of Things, all products are software products. The value of the code, computing power and connectivity, may determine the value potential of a product more than the physical product itself. The effectiveness of an offering is related to how well it packages the learning from past activities, other use cases and from other similar products and how it increases the users options for value creation through network connections in the present. The offering actuates data via algorithmic smartness and through live presence (in the Internet). Connectivity also enables some functions of the product to exist outside the physical product in the product system, the cloud.

A product or a service should today be pictured as a node in a network with links to supplementary services and complementary features surrounding the product. The task today is to visualize the product in the broadest sense possible.

Visualizing these connections changes the strategic opportunity space dramatically. The study of isolated parts offers little help in understanding how connected parts work in combination and what emerges as the result of network connections. Every link and relationship serves as a model for what might be possible in the future. What new relational technologies are making possible for manufacturing industries is a much, much richer repertoire of business opportunities than what we were used to in a traditional industrial firm.

The ability to create value in a remarkably more efficient and resource-wise way corresponds to possibilities for interaction with relevant actors, information and products. If interdependent links are few, poor, or constraining, the activity and value potential will be limited.

The Internet of Things and technological intelligence in general, create transformative opportunities for more efficient and more sustainable, resource-wise, practices and also higher margins!

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Thank you Rafael Ramirez

More on the subject: Ford’s OpenXC. Bosch. Kari A. Hintikka (In Finnish)

The importance of SLUSH

The creative era we live in is an age of unprecedented possibility compared with the industrial age. Totally new opportunities are systematically being created. One of the best examples of this is the SLUSH event that took place in Helsinki on November 13th and 14th. SLUSH is a two-day startup conference, a meeting point and a coming together of roughly 6000 people belonging to the international startup ecosystem. There are entrepreneurs, investors, startup founders, employees and students taking part.

The democratization of technology that is taking place at the moment does not determine social and organizational change, but does create new opportunity spaces for new social practices. Some things are becoming much easier than before and some things are becoming possible, perhaps for the first time. The vibrant startup culture proves this point.

There are very few isolated geniuses. But there are many bright people who have continued and improved the work of others. Capable people always have capable peers, people who act as filters connecting them with people and connecting them with high quality information. The goal of SLUSH is to “gather the connections that startups need to thrive on the global stage.”

In a sense, creative people are more remixers of other peoples’ ideas than inventors. Technology and development are not isolated acts by independent thinkers, but a complex storyline, where the storytellers and curators, are more important than the heroic inventors, if there ever were any.

Creative, connected learning is at the core of the startup business. SLUSH is a huge learning festival and the biggest concentration of positive energy I have seen in a long time. Businesses and non-profits like SLUSH, more than government, seem to be driving the changes in education that are required for the knowledge-based economy. The government-run education systems are lagging behind the transformation of learning that is evolving.

Learners are teachers and teachers are learners during the two hectic days of SLUSH. Creating learning connections is more valuable today than creating learning content. Information is becoming a process of continuous iteration and networked negotiation. Information networks are the architecture of work and a valuable, shared resource. These networks are the new commons. In the new commons people with many ties are better informed and have more signalling power, while those outside the commons and with few ties may be left behind.

The real forte of SLUSH is that as we engage in new relationships, we are creating new potentials for action. Every human relationship, every connection, serves as a model for what is possible. The Internet era has proven that we are capable of working together competitively/cooperatively and building social communities that some time ago many would have dismissed as impossible dreams.

Thus we don’t yet have a good idea of what cannot be done by connected people working together in new ways. Perhaps “We can walk on water” as @pvesterbacka from Rovio says in a very compelling way.

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Thank you Miki Kuusi, Ilkka Kivimäki, Peter Vesterbacka, Inka Mero and the whole team! And yes, Supercell! It was a great party!

More on commons.

What Supercell can teach us about the future of work

The new landscape of work is alien territory for most of today’s business leaders and business schools, but things are already moving towards a new world.

The new landscape consists of the network as the architecture of work and work as coordinated action between non-co-located but interdependent people. The astonishing thing is that we can find an existing, efficient, working model for this kind of digital work. It is games.

The game environment may be the next productivity suite available for digital work. Adopting the best qualities of games could help firms to meet the pressing challenge of highly mobile and distributed work.

What, then, can be learned from these games?

The pace of games is normally very fast and requires fast decision-making. Decisions are typically based on incomplete information and are always iterated as more data become available later. You can’t take a lengthy pause to strategize and to weigh up the options. The culture needs to embrace changing decisions, learning and adopting constant corrections to the course that was initially chosen.

Acting is always based on uncertainty. You can’t succeed in an uncertain environment without trial and error, without taking risks. You can’t embrace risk taking without accepting failures. Here the game environment is fundamentally different from most corporate cultures. Frequent risk taking and confronting risks routinely help players to learn to keep paradoxes alive calmly and to live efficiently with continuous change.

Management in games is often temporary. People switch roles. They direct others one minute and take orders the next. Management is a task. It is not a position, or part of the identity of an individual. Companies often identify people as leaders because of the high level of potential they show early in their careers. That model may not work in the future. The growing complexity of business means that no single leader can handle all the different challenges any more. Treating management as a temporary state and a task can be the new model of the future. The whole assumption that leadership resides within an individual may not be correct at all.

Getting the network environment right for cooperation is imperative. Efficient digital environments make information open to all of the players, all of the time. This information includes quantified-self type statistics and trend information for reflexive work. Real-time status updates on operations make planning the next move easy.

The mainstream corporate approach to knowledge management has assumed that thinking and doing are separated. In the game environment a player is expected to act on information, without waiting for instructions from a boss. The most interesting thing in the game environment is that it allows people to take responsibility, to assume leadership as and when needed.

The widespread adoption of game mechanics for coordination and taking responsibility would require a dramatic change in mainstream organizational culture. However, the games are here today and the generation that has grown up playing the games is growing up and joining corporations.

They are going to be the drivers of the change towards a more creative, productive and more fun work environment.

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Resilience, rationality and how we make decisions

We have been studying companies’ connections and disconnections for more than twenty years and have worked inside a huge number of them. Across all this research, common themes have emerged and intensified during the past few years: good communication in the era of the Internet and the new interactive tools does not mean any more that companies should listen carefully to their customers or that leaders should talk clearly with their subordinates. The linear view of communication, the movement of messages or sharing of content between people is giving way to a totally new understanding of what interaction, and work, are all about.

The first emerging theme is that communication is in fact a process of continuous coordination and knowledge creation. Knowledge is not shared as contents, but arises in action. Knowledge is never transmitted from one mind to another. It is a change from the movement of messages to a joint movement of thought. The future and viability of an organization depend on this process.

Economics still makes the assumption that individuals, the agents, as they are called, operate autonomously, separately from the influences of others. When choosing something, making a decision from a set of alternatives, the agent compares the attributes of the alternatives and selects the one that corresponds to her preferences. It is a world where independent individuals carefully weigh up the costs and benefits of any particular course of action.

However, scientists have emphasized the limits of our understanding. An important point is that these limits apply to everyone. They apply to politicians, to central bankers and to top executives of multinational companies. John Maynard Keynes once wrote that we have, as a rule, only the vaguest idea of the consequences of our actions. Herbert Simon and Stuart Kauffman on the other hand have argued that the number of future paths open to us at any point in time is so vast that it makes no sense at all to speak of the best or optimal decision.  But we still think the world works like a predictable machine operated by rational agents

Behavior that does not follow an economist’s definition is often called irrational, but it may be that in a world of ubiquitous networks, a proliferation of choice and an abundance of information, the economic definition of rationality has itself become outdated and irrational.

We need a new model of rational behavior and a new understanding of how we make decisions. We need a new decision model!

The second emerging theme is that the assumption that people make choices in isolation, that they do not adopt opinions simply because other people have them, is no longer sustainable. The choices people make, their buying decisions and their political views, are directly influenced by other people. That is to say that we construct our world together in communication. Network scientists such as Duncan Watts and Mark Granowetter have proved that the world comes to be what it is for us in our relationships. In the end it all depends on the company you keep and the conversations you have.

This leads to the importance of emphasizing relations instead of reductionism and separations. Reductionism means that the organization is understood as being split from its environment and one functional team is seen as being separate from another function. The worst mistake we make as a result of reductionist thinking may be that we assess and reward employees as if they were disconnected from other employees.

Links and communication are at the centre of organizational life. Depending on the quantity of interdependent links and the quality of communication, the organization lives or dies. Work is interaction between interdependent people.

The third emerging theme is that communication creates patterns. Words become what they are through the responsive actions of the people taking part. The relational view means in practice that if a conversation goes badly, it is always a joint achievement. On the other side, a conversation can only be successful if both participants join in and make it so as Ken Gergen points out. In management, it means that there is nothing one person alone can do to be a good manager. Good ideas don’t count as good ideas, if other people don’t treat them as such.

New leadership is about an awareness of creative and destructive patterns and having the ability to influence what is going on. In a creative pattern, the participants build on each other’s contributions. The conversation, thinking and action are in a process of forward movement.

Destructive patterns are the most harmful in terms of organizational viability. These patterns don’t contain forward movement but running in circles. People and organizations get stuck! People slow down in bitterness and silence, or even to the breaking of the link. The most destructive patterns often begin subtly, but unless they are worked with soon, not only will relations suffer but the whole network will deteriorate.

Being aware of the patterns includes being aware of the roles that we play. Whenever we speak, we do two things: we subtly define ourselves and define the other. Does the speaker in a company context define herself as one who can talk down to others or as an equal? What we say is important to the viability of the organization but the way we say it can be equally important. Talking down or talking up between people creates an asymmetry that leads to bad decisions and inefficient movement of thought.

The machine metaphor meant that we tended to think that the people “above” us have significant power. They are in control. We thus talked up to them. They should decide. They should do things for us because they were the ones who were responsible, not us. Knowing that they are not in control raises the question of a need for a new distribution of responsibility. Bottom-up as a metaphor is as harmful as top-down when the common goal is resilience.

There is no aspect of work or leadership that takes place outside the realm of communication. Human agency is not located or stored in an individual, contrary to mainstream economics. The individual mind arises continuously in communication between people.

Being skilfully present in the forward movement of thought and relational action is the new meaning of being rational.

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Thank you Ralph Stacey, Doug Griffin, Ken Gergen, Marcial Losada, Katri Saarikivi and Paul Ormerod

Links: “Resilient Performance in an Age of Uncertainty” “Possibilianism” “Stanley Milgram and the uncertainty of evil” “The fluid core“. “On functional stupidity and trust“. “Tulipmania” “Neuroeconomics

Pattern recognition, quantified self and big data

The creative era we live in is an age of unprecedented possibility compared with the industrial age. Major shifts are taking place: ideas matter more than money and as there are more people with good ideas than there are people with money, new opportunity spaces are being created. Industrial workers used to do as they were told. Today, knowledge workers negotiate solutions in active interaction with their peers. We also used to think that organizations outlived workers. The organization came first, and people served the organization. Today, workers´ careers outlive organizations, profoundly challenging our thinking. People have to come first, creating a revolution in work related social structures.

Companies are not managing their employees’ long-term careers any more. Workers must be their own HRD professionals. With opportunity comes new responsibility. It is up to the worker to construct the narrative of working life, to know what to contribute, when to change course and how to keep engaged – for much longer than we have been used to. To do those things well you have to develop a new understanding of yourself and what you are actually up to.

The schools and workplaces of the industrial era were organized on the assumption that there is one right way to learn, or to do things, and it is the same for everybody. To improve was to subscribe to this ideal, the goal somebody else gave you. After that, the task was to know where you are, and (try to) close the gap.

This is where the biggest changes are taking place. Instead of the industrial era’s generalizations and abstractions about what is good for you, or what five steps everybody should take, it is now time to cultivate a deep understanding of the context, the unique, particular situation you are in. Who are you and where do you come from? What kind of relations are the building blocks of your life? Reflecting on your reality should be the starting point of any effort to change things. This is also where we are often at our weakest. It did not matter in the past because most decisions were made for us. But now people can, and must, choose. The new task is to be able to make these choices on the basis of our own particular strengths and our own sense of belonging.

Most of the choices we make each day are believed to be the products of well-considered, rational decisions based on knowledge, but they are not. They are repeated patterns, habits. We are not conscious in the way we think we are; we do most of the things we do on autopilot.

Habits in an individual’s life are a natural consequence of our neurology. Patterns in the brain emerge because of repetition and learning. When patterns emerge, the brain stops participating fully in decision-making. The brain stops recruiting prefrontal areas, allowing consciousness and attention to be potentially focused on other tasks. The brain is constantly looking for ways to save effort. It is the same thing in organizations. A community is always a collection of routines and habits. The aim of these patterns is the same as in the brain, to make life easier and more predictable.

The problem here is that neither the brain nor the people in a tightly knit community can, in the end, tell the difference between a bad habit and a good habit. The patterns repeat in a self-reinforcing way. Repeating patterns, not reason, are the root of how we behave.

Although each situation means relatively little on its own, over time, the patterns of our life have an enormous impact on our creativity, productivity, health, well-being and happiness.

We all know that the primary thing that causes change is a major crisis! It may be the first heart attack or a sharp, deep drop in revenues. It is remarkable how fast people then find the ways to live in the right way, or how businesses suddenly start to deal with the “burning platforms” they could have tackled a long time ago.

I don’t think that people and organizations really have to wait until something serious happens to them to fix things. I believe that the productivity suites of tomorrow are going to be a combination of sensors, big data and quantified-self technologies. When used together, these create totally new opportunities for live feedback, daily reflection and iterative change. And, most importantly these opportunities are based on our own unique context and our own unique storyline.

Managing yourself is first and foremost about pattern recognition. It is essential to remedy the things you do repeatedly, that don’t serve you and the life you want to create.

It is about changing the focus from what we should be doing to what we actually do!

More soon!

Thank you Katri Saarikivi

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The foundations of social business: short path lengths

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New technologies give an organization the ability to reconfigure its form any way it desires. We are not confined to any one structure any more. The mobile revolution has changed the logic of the network. The Internet is no longer about linked pages but connected purposes. We want to do something – with the help of information and other people.

For optimizing information the best structure for a social business would be a random network. A random network has the shortest possible number of steps between any nodes. An example of this is performing a Google search. The key measure here is the path length. That indicates how far away from each other everybody is, on average. The path length measures how many steps a piece of information has to go through between people. To create short path lengths in a typical hierarchical or process based structure you would need to know almost everything and everybody included in the organizational chart.  You would need to have access to information that we typically don’t have in an organization of any size. Hierarchies and processes are thus not efficient ways to organize information based work. They are not transparent enough creating slowness and inefficiency. As a random network is not the easiest mental benchmark for an organization that wants to develop its information- and communication-related practices, another model has emerged to shorten the path lengths between people and information.

It is social filtering, curation.

There are very few isolated geniuses. But there are many bright people who have continued and improved the work of others. Capable people have capable predecessors, people who act as filters connecting people and high quality information. The key concept in the knowledge-based future is acknowledgment of the importance of these messengers beyond what we have been used to so far.

Social filtering, curation, is the new search.

In a sense, creative people are more remixers of other peoples’ ideas than inventors. Technology and development are not isolated acts by independent thinkers, but a complex storyline, where the storytellers and curators, are more important than the heroic inventors, if there ever were any.

We never know how the story will develop, but it cannot develop unless it continues. The new challenge for the creative economy is to understand the importance of attribution and giving credit. The first thing is to acknowledge the vital role of social filtering and the huge importance of the retweet.

Our attention is a result of the filters we use. These filters can be a mix of habits, company processes, organizational charts or tools. Increasingly these filters are social. They are the people we recognize. Our most valuable guides to useful bits of insight are trusted people whose activities we can follow in real time to help us enrich our views.

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More on the subject: The role of curators. Mesh networking. Jonathan Zittrain on mesh networks.

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