The change towards the creative economy has major implications for the nature of what we have called assets. In the industrial age, the assets were physical resources, plant and equipment. Most of the resources were traded in markets and could thus be valued. Taking care of the value of an organization could be understood as managing physical assets and resources.

Now knowledge and people are seen as the major assets. But since neither of them are efficiently traded in markets, their value cannot easily be measured. Neither can knowledge be understood as an asset that can be managed like a physical asset. This is what many people within the Knowledge Management community learned the hard way. Knowledge is not a thing! Thus it cannot be stored, measured or shared.

From a more modern point of view, knowledge creation is understood as an active process of communication between people. Knowledge cannot be stored but is constantly constructed and re-constructed in interaction. Knowledge cannot be shared but arises in action. Knowledge is the process of relating.

The assumption was that learning and knowledge management involve processes that transmit content. This notion derived from the information theory/model of communication developed by Claude Shannon and Warren Weaver. Their theory created a sender-receiver model of communication according to which person A sends a signal (message/content) to person B, who receives it and then perhaps sends a responding feedback signal back to A. From this perspective, learning and knowledge creation are processes that resemble transmission or the sharing of content. This is why schools and other educational institutions still look the way they do.

But Shannon & Weaver’s concept was meant to be purely technical. They were interested in whether a byte sent was a byte received in a technical sense. They said nothing about the meaning of the bytes. For a human being a message can evoke a very wide range of associations and interpretations depending on the experience and emotional state of the individual. One person’s interpretation is never quite the same as another person’s interpretation. There is no linear causality in the world of human beings.

If learning was understood from a more modern relational perspective it would resemble a process of many voices interacting at the same time. In this way, each comes to know the context in which the other makes meaning. The progression of B’s understanding of A’s story also constitutes a change to A’s story – creating new meaning, learning, for both.

Social media are most meaningful when giving voice to multiple perspectives, making it possible to seek out, recognize and respect differences as different but equal.

All stories continue, meaning that learning takes place, as participants create a more shared understanding of what the other means. Knowledge which used to be regarded as existing independently in people and things – becomes viewed as co-constructed in communication.

Communication does not represent things in the world. It brings people and things into being in constantly surprising ways.

Supportive, energizing and enabling patterns of interaction are the most important “assets” of a modern organization. That is what should be nurtured and taken care of. Communication either accelerates and opens up possibilities or slows down and limits what would be possible. Communication either creates value or creates waste. Communication either creates energy and inspiration or demeans and demotivates.

Information theory is not only unhelpful but harmful, when trying to understand communication between human beings. Communication is not about sharing information but a process of formation.

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Thank you Karl-Erik Sveiby and Doug Griffin. What a great meeting!

Although work today is primarily digital, most organizations still have a spatial dimension, and most of those spaces have a designated organizational role. Even in the digital age we still think in terms of space. The key thing is that both the organizational structure and space greatly influence the patterns of work. A few years ago, the typical organizational design meant that work was divided into multiple parts that were simply added together to create the product. Individual workers did not need to know much more than what was specific to their individual tasks to complete their jobs.

Today, the results of work are not brought together at the end but are communicated throughout the process. A growing number of people are involved in generating ideas and information and bringing those ideas together in collaborative sense making. Work is interaction. Communication is not talking about work. Communication is work.

There are three archetypes of communication in firms. The first type is communication for responsiveness and coordination. This creates the need for transparency. The right hand knows what the left is doing. The second type is asymmetric following. It is about a Twitter type of information sharing to help people keep up with new developments. The third type is serendipitous inspiration. It is spontaneous and helps people to come upon the unexpected. The third type of interaction often occurs between people who work on different things and draw on different disciplines. These people don’t often meet in traditional work arrangements. They don’t normally have a lot to do with each other.

Most managers will acknowledge the role played by the organizational structure, but few understand that physical space is equally important. Structure and space both influence how we work and where communication takes place when we meet.

The goal is paradoxically to increase the value of work and at the same time save costs. This means that you can expect to see more of the clubhouse type of co-working spaces. Clubs are places where only members and their guests are allowed in. The rooms are defined according to a function, such as eating, reading, and meeting. These rooms are open to all, rather than being assigned to a single worker. You can book a more private room for a specific purpose, but in a clubhouse, you cannot put your name on the door.

Members of future organizations will use these new co-working spaces for networking and for concentrated individual work but they are not going to have spaces to fill with their personal belongings.

Many people bemoan the loss of a personal designated space. However, I believe that they are going to learn to appreciate the value of freedom of choice and the escape from the control system of being seen in the office nine-to-five.

If you are in the middle of a conversation with someone, you seldom pause to talk about the conversation itself. But today, it is time to pause and consider how we work together and where we meet to do that. Although work is digital, we are still going to meet, also physically!

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The inspiration for writing this came from meeting my good friend @elsua face-to-face for the first time a few days ago. Thank you @villepeltola and @sakuidealist

Advice on how to manage off-site workers

When we think about business structures, many of us picture an organizational chart or the layout of an office building. A structure often refers to the physical arrangement of things, the parts making the whole.  What we have missed so far is an understanding of the business structures that can foster faster learning and help us work better with information. Conventional structures don’t address knowledge-related challenges as effectively as they do problems of measuring input and output or accountability.

What social media have helped us to do is to link and coordinate unconnected activities or initiatives addressing a similar information domain. There have also been great successes in diagnosing recurring business problems whose root causes cross unit boundaries. We know that the problems we face today are too complex to be managed by one person or one unit. It requires more than one brain, one point of view, to solve them.

Sharing a practice or sharing an information domain requires regular interaction. Work is interaction and the new business structures should be built on interdependence and communication.

Almost all business communities started among people who worked at the same place or lived nearby. But co-location is not necessary any more. The Internet has changed that. Interdependent people forming a community can be distributed over wide areas. What then allows people to work together is not the choice of a specific form of communication, face-to-face as opposed to email or social platforms, but the existence of a shared practice, a common set of situations. What lies at the core of those situations is the need for different perspectives requiring interaction.

When you design for live interaction, you cannot dictate it. You cannot design it in the traditional sense of specifying a structure or a process and then implementing it. As many have experienced, communities seldom grow beyond the group that initiated the conversation, because they fail to attract enough participants. Many business communities also fall apart soon after their launch because they don’t have the energy to sustain themselves.

Communities, unlike business units need to continuously invite the interaction that makes them alive.

Community design is closer to iterative learning than traditional organizational design. Live communities reflect and redesign themselves throughout their life cycle. The design should always start with very light structures and very few elements.

What is also different is that good community architecture invites many kinds of participation. We used to think that we should encourage all the community members to participate equally. Now we know that a large portion of the network members are and should be peripheral. In a traditional meeting we would consider this type of participation half-hearted, but in a network a large portion of the members are always peripheral and rarely contribute. Because the boundaries of a live community are always fluid, even those on the outer edges can become involved for a time as the focus shifts to their area of particular interest.

Because conversations and communities need to be alive to create value, we need an approach to management that appreciates passion, relationships and voluntary participation. Rather than focusing on accountability, community design should concentrate on energizing, enriching participation.

The new structures and new designs are about communities continuously organizing themselves around shared information, shared interests and shared practices. Business is about doing meaningful things with meaningful people in a meaningful way.

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More: “Lead like the great conductors

Cathy N. Davidson has studied the way we make sense and think. Her claim is that we often end with problems when we tackle important issues together. This happens “not because the other side is wrong but because both sides are right in what they see, but neither can see what the other does”. In normal daily conditions, it may be that we don’t even know that other perspectives other than our own exist. We believe we see the whole picture from our point of view and have all the facts. Focus however means selection and selection means blind spots leading to (attention) blindness. We have a partial view that we take as the full picture.

This is one of the reasons why people in companies are often stuck in narrow, repetitive and negative patterns that provide them with numbing, repressive and even neurotic experiences.

The opportunity provided by social tools lies in the widening and deepening of communication, leading to new voices taking part and new conversations that cross organizational units and stale process charts.

According to Cathy Davidson, attention blindness is the fundamental structuring principle of the brain. Attention blindness is also the fundamental structuring principle of our organizations and our political system. We see and understand things selectively.

Knowing in the brain is a set of neural connections that correspond to our patterns of communication. The challenge is to see the filters and linkages as communication patterns that either keep us stuck or open up new possibilities.

The opportunity lies in the fact that as we don’t all select the same things, we don’t all miss the same things. If we can pool our insights we can thrive in the complex world we live in. In this way of thinking, we leave behind the notion of the self-governing, independent individual for a different notion, of interdependent people whose identities are established in interaction with each other.

From this perspective, individual change cannot be separated from changes in the groups to which an individual belongs. And changes in the groups don’t take place without the individuals changing.

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 as experts. 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.

Management research has focused on the leadership attributes of an individual. Leading and following in the traditional corporate sense have seen the leader making people follow him through motivation and rewards. The leader also decided who the followers should be.

Leading and following when seen as a relationship, not as attributes of individuals, have a very different dynamic. Leading in this new sense is not position-based, but recognition-based. People, the followers, also decide. The leader is someone people trust to be at the forefront in an area, which is temporally meaningful for them.

People recognize as the leader someone who inspires, energizes and empowers them.

Another huge difference from traditional management is that because of the diversity of contexts people link to, there can never be just one boss. Thus, an individual always has many “leaders” that she follows. You might even claim that from the point of view taken here, it is highly problematic if a person only has one leader. It would mean attention blindness as a default state.

We are now at the very beginning of understanding leadership in the new contextual, temporal framework. The relational processes of leading and following should be seen as temporary, responsive activity streams, not only on the Internet but also inside companies. They are manifested as internal (Twitter) feeds, (Facebook) updates and blog posts from the people you associate with.

Richer, more challenging, more exploratory conversations leave people feeling more alive, more inspired and capable of far more creative and effective action.

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Thank you Cathy N. Davidson and Doug Griffin

In a start-up, the coordination of work takes place through the transparency of activities, close proximity of people working together and mostly informal, responsive, ongoing communication.

I have often wondered when and how the transformation to the world of formal reports and meetings takes place.

After closely studying several case companies, it seems to me that it is not at all the growth of the company that requires the development of formal communication systems. That takes place as a result of the managerial thinking that has evolved in response to growth.

The mainstream view of management science sees the organization as having a separate existence from individuals. In organizations, as in machines, the interchangeability of parts is thought to promote efficiency. This means that processes retained in workers´ interaction should be recorded in documents and passed back to govern work. The aim is to rise above the individual memory and to establish an organizational memory. This is what mainstream knowledge management was all about twenty years ago: “If only HP knew what HP knows”.

Industrial management has been about depersonalizing the workplace in the interest of efficiency, even up to the point of seeing people as (human) resources or (valuable) assets. Because of the strong desire to outdo the individuals, the communication habits of a “managed” company need to be different from the start-up. You have to go from conversations to documents.

Management is a system of communication

In this system you talk about flows, not people. There are flows of information to allow middle and upper management to monitor and control what goes on at lower levels. There are flows to guide the lower levels and to coordinate process steps. The ideology of management demanded “exact” written communication. It dismissed ordinary conversation as just talk. The controlled form of talk was a meeting with an agenda and clear outcomes. And you were supposed to come well prepared.

Industrial management is a particular pattern of communication based on specific assumptions about causality and human agency. This approach to coordinating activities was technically based on the high price and low quality of communication tools.

What social media allow us to do in organizations is to create transparency of activities, close proximity of non-co-located people and active, ongoing, responsive communication that coordinates and controls. The price of communication has gone down and the quality of tools is dramatically better today.

It is time to rethink some major issues.

What an organization is emerges from the relationships of its members, the interacting individuals. It is the people! The efficiency and creativity of the organization is a result of the efficiency and creativity of daily communication. We all enable and constrain one another all the time, meaning that we coordinate and control one another all the time – as we talk.

Changes in the organization always mean changes in the patterns of communication and vice versa. Novel patterns of communication necessarily change the organization. This is why social media challenge management as a system of communication and coordination.

Management as we are used to seeing it is getting more and more outdated.

We have started a research program on management in complex, responsive work. We study human-centric value creation that builds on the Internet and the very latest digital interaction technologies. If you want to be involved in the group of academic researchers and practitioners, please contact me or professor Doug Griffin.

We know that even very big corporations can be like start-ups!

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Thank you @jobsworth for being the inspiration for this post. I hope the discussions around the “systems of engagement vs. the systems of record” continue

Thank you Doug Griffin, Ralph Stacey and Clay Shirky

More on the subject: Steve Denning. Umair Haque. Peter Stoyko.

People often need to act and make decisions in situations in which causality is poorly understood, where there is considerable uncertainty and people hold different beliefs and have personal biases. However, people very reluctantly acknowledge that they face ambiguity at work. Problems in organizations tend to get labeled as lack of information. It feels more professional to try to solve a knowledge management problem that is called lack of information than a problem that is called confusion.

Knowledge workers are often put in a position where they have to negotiate some understanding of what they face. The same event means different things to different people and just getting more information will not help them. What will help is a setting where they could negotiate and construct fresh ideas that would include their multiple interpretations of what they experience. The challenge is that managers often treat the existence of multiple views as a symptom of a weakness rather that as an accurate and needed barometer of uncertainty.

A mix of stimuli always surrounds people. The stimuli have no meaning apart from what the individuals make of it. In other words, the environment is a product of the persons, not something outside of them. People are selective in what they attend to in any situation and what is attended to become the environment. The reality is not an objective set of arrangements outside us, but is continually constructed in daily interaction.

If people want to create shared meaning, they need to talk about their experience in close proximity to its occurrence and have a common platform for conversation. They need to see their different views about the experience as richness and a prerequisite to learn what is going on.

Because any information can mean a variety of things, meaning cannot simply be discovered. Information does not help. We have to talk! Many meetings that are directed at the problems of ambiguity fail to handle it because potentially rich views are silenced by autocratic leadership, norms that encourage harmony or reluctance to admit that one has no idea what is going on.

A crucial property of creative work is that situations are progressively clarified in iterative interaction. Our reality is an ongoing accomplishment that takes form when people together make sense of the situations in which they find themselves.

Therefore our own joint sense-making actions are the determinants of the meaning that situations have. They are the true contents of our learning and development. Quoting Max Planck: “When we change the way we look at things, the things we look at change.”

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Thank you Doug Griffin, Jeffrey Sachs, Karl Weick, Stowe Boyd and Ralph Stacey

Background: Does more information mean we know less?

Organizational reality is often seen in terms of processes and actions that are based on plans and designs. Acting should thus be based on this knowledge. Thinking is understood as different from and preceding acting.

Databases and documents are usually thought of as stores of knowledge.  From the mainstream Knowledge Management perspective, knowledge is understood to be created by individuals. It becomes the asset of an organization when it is extracted from those individual heads and stored in documents.

But the everyday experiences we have do not exist in a meaningful way in any documents. What has happened can seldom be understood from the Excel sheets explaining the results of our actions. What really takes place is very rarely a repetition of these documented practices or a realization of the plans we have made.

The actions always vary. As the people with whom we interact change, the context of the interaction always changes. In other words, there is variation in processes, routines and actions. Actions are thus never based on knowledge that is separate from those actions and contexts. Accordingly actions are not explainable through documentation. Knowledge, in this sense, cannot be seen as residing in databases and attempts to store it in documents of some kind will capture only partial aspects of it.

Knowing cannot be separated from acting.

Interaction is the process of knowing!

From the point of view taken here, knowledge is always a process of responsive contextual, live interaction as Doug Griffin points out. It cannot simply be located in an individual head to be extracted as an organizational asset and then shared.

Knowledge is neither a stock nor a flow!

Knowledge is the act of interacting and new knowledge is created when ways of interaction, and therefore patterns of relationship change. The knowledge assets of an organization are the patterns of interaction between its members and knowledge is destroyed when relationships are missing or are destroyed, as is happening widely in the corporate world today. Key corporate assets are lost!

Organizational change, learning and knowledge creation are the same as changes in communication.  Enabling new habits of communication and improving the quality of the conversation are the most important processes of knowledge management.

It is about bridging the gap between knowing and acting.

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We are used to thinking that what happens in organizations is the realization of the choices of powerful people. They are supposed to know what is going on as they make those choices. However, the stories about decision making during wartime, or during the recent financial crises, make it very clear that politicians and executives are far from sure of what has been happening and they simply don’t know what is now happening.

Partially, it is because of corrupted communication. The results of failing communication can be catastrophic. In today’s FT Tim Harford quotes a study on communication and decision making during the Vietnam War: “The joint chiefs of staff were warned that Lyndon Johnson did not like split advice. Robert McNamara also argued that government would be inefficient if department chiefs were to express disagreement with the president.”

The leader who isolates himself from dissenting opinions is bound to make disastrous decisions. The failures in communication in Vietnam continued in Iraq. According to researchers, Donald Rumsfeld and his immediate subordinates made dissent extremely difficult during the first years of the war. It is normal, but costly in corporations and disastrous in politics to filter out information that contradicts preconceptions.

Failures of leadership are failures in communication.

All organizations are power and communication structures. Very often communication is corrupted just because of power. “If you deliver differing views to your boss, it is highly likely that you are not going to be listened to in the future.” For ambitious people, this is the worst possible fate. What social media try to achieve, is subordinates giving truthful information about what is going on, which they don’t do, and bosses listening attentively, which they don’t.

If this dynamic is taking place at every level of the organization, you are in big trouble. Each organizational level that creates a strong boss, ambitious subordinate relation is a distorting barrier to communication and informed decisions.

Business leaders try to know what is going on in the corporation through employee surveys and 360-degree appraisals. Organizations are full of local knowledge, but if bosses need to ask outsiders to tell them how their organization really works, there is trouble in store. If organizations want to be relevant and effective, they will need to incorporate elements of bottom-up, real-time information delivery and real-time listening into their management thinking. Be that pushing real-time updates or subscribing to people who matter.

The role of the effective leader during the time of social media is to widen and deepen communication. Leadership is participating and exercising skills of conversation which uncorrupts information, keeps the necessary paradoxes alive, and keeps on opening up the possibility of new meaning rather than closing down the further development of thought.

Thank you Tim Harford



Lenovo unveiled their new tablet-capable business laptop last Monday. The company made a conscious decision not to bring out an iPad like tablet PC. They said customers don’t want it. “The feedback was that for our customers it would not work because of the need to have a physical keyboard.”

The discussion around a virtual or physical keyboard caught my attention. The purpose of a keyboard is fairly straightforward: to get words onto the recording medium. The ability to capture a symbolic representation of spoken language for storage or transfer frees information from the limits of individual memory or location. But do we need a physical keyboard for that?

The patent for the typewriter was awarded in 1868 to Christopher Sholes. An early problem of the typewriter was the jamming of the type bars when certain combinations of keys were struck in a very close sequence. As a solution to the problem, Sholes arranged his keyboard in such a way that the keys most likely to be struck in close succession were approaching the type point from opposite sides of the machine. The keyboard is actually configured to minimize speed of input. At the time, reducing the speed of the typewriter was the best way to prevent it from jamming. The QWERTY keyboard was designed to accomplish a now obsolete mechanical requirement. It can be claimed that it is very unproductive to use a keyboard as an interface to productivity tools. The situation would of course be different if we all used ten fingers and did not need to look at the keyboard as we type.

Mobile phones are still mainly associated with communication, not productivity software. As a result a knowledge worker needs two devices: a laptop and a mobile phone.

No mobile phone has created as much of a buzz as the Google Nexus One since Apple launched the iPhone. As in other Android-based mobile devices, there is no physical keyboard. Text input relies on a virtual keyboard. But there is also a voice-to-text input functionality. We could use our voice and video instead of a keyboard! And additionally the camera is paving the way towards augmented reality!

The third device category is tablets: bigger than mobile phones but smaller than laptops – and often without a physical keyboard. The critiques claim that tablets like the iPad are just laptops without keyboards, while others are really mobile phones with proper-sized keyboards, without any definition of a real market need. At least the Lenovo customers don’t want them. Hopefully the Lenovo case is not  a matter of history repeating itself, as when Ken Olsen was explaining that DEC customers didn’t want PC’s.

The question here is not only how we think about the means of input. In the corporate context, it is even more about how we think about productivity and what kind of software can be called productivity software.

Productivity is a function of interaction

Instead of thinking about productivity as if it were associated with certain types of documents, it is closer to experience to think that productivity emerges or does not, in people’s interaction with each other and in interaction with the devices we use. Productivity is a function of interaction. Interaction is the content of social media! Therefore, it may not be a very good idea to bring the old document-based productivity software to mobile phones, or use Lilliputian keyboards.

The key productivity focus should be on widening and deepening interaction and reflection. This leads to a new perspective on information-related practices and productivity tools. Rising productivity requires changes in the way we communicate. Can there be a richer and easier way to use our devices? This, by the way, is the main sales argument behind the iPad.

The fastest immediate increase in productivity comes from either learning touch typing or using voice and video as means of input. Perhaps the keyboard of the future is speech combined with transcription? Anyway, the productivity software of tomorrow needs to be interaction-based. The most efficient productivity suit of tomorrow may well be a combination of Twitter, blogs and Facebook.

You only need one mobile device! The decision as to whether the device you need is a mobile phone, a tablet or a laptop may not be the most important one what comes to the quality of interaction. An artist friend of mine said that when he paints, he does not interact with the canvas, “the recording medium”. He interacts with the world beyond the canvas.

Thank you Kuutti Lavonen

Background

Mobile data

Cognitive and social presence

February 22, 2010

Have you ever wondered why you don’t see anyone reading a book when you visit companies? We associate reading with finding information and learning, but we also involve qualities such as contemplation, solitude and mental privacy when we think about books.

There is a mental framework that is used when dealing with books, and another distinct mental framework regarding information related practices in the corporate world. Basically, you are not allowed to read a book but you can read a document.

Documents and word processing are part of the mental framework of management today. Documents were born from the needs of a hierarchical, systemic approach to management. Information flowed down from the top in the form of PowerPoint slide decks containing vision statements, Excel sheets with goals and Word documents explaining corporate procedures. Information, which flowed up from the bottom, was used mainly to provide reports and data for managers, helping them to keep their employees accountable and to ensure the smooth operation of the business process.

The framework of computerized word processing is associated with terms like information flows and the sharing of information. This is not something you normally talk about when discussing a book. While a book provides a view of the contemplative mind, documents create a view of controlled content. Do you still ask why you can read a document but you are not allowed to use Facebook?

Instead of predictive process flows, knowledge work in practice follows a very different logic. A senior executive in one of the most successful multinational corporations in the world explained what was going on:

  • There may be a triggering event that needs to be explored.
  • The exploration is performed most efficiently through transparency, wide area engagement and a communal process of distributing the cognitive load of the case.
  • People don’t perform job roles. People participate in tasks. You don’t delegate, you invite!
  • People from the whole community should participate through voluntary self-organization as widely as possible at the same time, not sequentially.
  • The industrial process was long, sequential and divided. The knowledge based process is short, parallel and interactive.
  • As many people as possible with applicable skills should contribute, each spending as little time as possible.
  • Finally, the contributions and comments that are received should integrate into a modular solution than can be iterated.

Knowledge work is about a community-based cognitive presence. But cognition is just part of the answer. Work today is even more about social presence. To manage is to participate in the live conversations.

There cannot be management without a social presence.

A dramatic shift is needed in the mental framework of information, communication and work. Without this changing mindset, no efficient implementation of social media can be made in the corporate world. Work is communication. Conversations and narratives are the new documents. Conversations cannot be controlled. The only way to influence conversations is to take part in them. The most meaningful conversations are the ones where customers voice their views. Those conversations take place outside of the firewall in the new world of mass communication.

As much as we need to associate Facebook with work, we need moments of slower pace. We need to combine the qualities of contemplation, solitude and mental privacy with work.

Thank you Walter Ong. The photo is of an interior detail of the Alvar Aalto architecture in the Academic Bookstore in Helsinki

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