The traditional methods for driving operational excellence in global organizations are not enough. The most effective organizations make smart use of employee networks to reduce costs, improve efficiency and spur innovation.
As information technology becomes increasingly critical within large, global organizations, chief information officers are being held to higher standards. In addition to streamlining business processes, reducing enterprise costs and improving work force effectiveness, top management also wants the IT department to be a strategic business partner — to forecast the business impact of emerging technologies, lead the development of new IT-enabled products and services, and drive adoption of innovative technologies that differentiate the organization from competitors.
Although organizational charts and standardized processes can be helpful, these traditional tools are not flexible enough to support the types of internal and external collaborations and partnerships that large, global IT organizations need to maximize value. The key to delivering both operational excellence and innovation is to allow innovative solutions to emerge unexpectedly through informal and unplanned interactions between individuals who see problems from different perspectives.
CIOs who learn to balance formal and informal structures can create global IT organizations that are more efficient and innovative than organizations that rely primarily on formal mechanisms. Organizational network analysis provides a useful methodology for helping executives assess broader patterns of informal networks between individuals, teams, functions and organizations, and for identifying targeted steps to align networks with strategic imperatives.
Senior managers can use network survey and analysis software to gather data from employees about their collaborations: whom they look to for information and expertise, whom they engage with on routine decision making, whom they turn to when dealing with problems that require more innovative brainstorming and how much time they invest in specific collaborations. Network analysis helps senior managers detect structural problems — for example, hidden logjams that slow the network down. Once managers understand the broad patterns of employee interactions, they can reduce collaborative costs and network inefficiencies.
7 Comments On: The Collaborative Organization: How to Make Employee Networks Really Work
It is amazing, chatting with RobCross about social network analysis back in 2007. At BMW Plant Leipzig, where I worked back then I was amazed how much potential lies in organizations, especially in their people.
During the course of the ramp up of the new plant, I grew a network of personal connects of about 1.000 people. They ranged from production line workers, logistics planners in Munich, former bosses in Regensburg to colleagues in the vehicle distribution in the UK and US. For any problem or question that aroused there was one node in the network, that could lead directly to the apppropriate one.
My best encounters happened when attending workshops where I met colleagues from other parts of the plants, such as a safety workshop or communication. The whole thing since my entereing the firm in spring 2003 felt pretty much like a big “game-like crsis”:
we had to achieve a goal (get into production 01.05.2005 with 100% quality)
On its way to it, as you may imagine, happen quite a few things especially as you put new practices and processes into practice quite different from other plants.
How did we achieve it? Our bosses – especially in the early phase, about 2-3 years into the project – set the loose boundaries within which the workforce could find the most effective way to get to the goal.
However the whole construct is like a living system. Living systems are dependent on various conditions. If one of it (water for example or light is shut off from plants, then they inevitably die) is put out or gets stronger controlled, the whole fragile network of human interconnections can quickly get dry.
So it needs “organizational farmers” who have the big park of the plant in their mind and nuture all the connections, people and constraints (towards benefits!) in order to sustainably build up an organization that is drawn together by strong emotional and personal ties of its members
Recently, now also about two years back, I have learned about the work of http://OttoScharmer.com. That has struck me heavily as he mentions the “social field” of organizations (and networks of such combined with community and other stakeholders) that allows the participants to strive to their inner strengths towards the larger whole.
More on a more global view: http://www.livestream.com/worldeconomicforum/video?clipId=pla_a9b566ef-8d93-4e51-9e08-3dd381d24900
Very useful post, I agree. It seems the “unavoidable” things are there now, and companies have to cope with it, and take all opportunities from them. But as “networking” is still considered as “wasting time”, underlining spending time with “friends” on social web for example, lots of companies build walls. but we now (and history tells us) that walls are not efficient anymore in a globalization world, wired, ubiquitous, and always-on.
It’s a matter of change…
I wrote something that could add a stone to debate, feel free to comment :
http://evidencesx.wordpress.com/2010/05/18/a-matter-of-change
All the best,
Outstanding article. In today’s highly educated IT workforce, all levels of the organization should be contributing to the organization’s success. If they are not you will never be world class and at best, maybe average. And as we all know average is only average.
The paradigm highlighted here will help deluge of organisations uncloak great ideas hidden in their employees. No organisation should ever undervalue how much innovation their employees could bring to them in their quest to remain innovative and ambitious but all said, only in the aura of properly harnessing their staff can they benefit from these lofty ideas.
I feel this article lacks a little objectivity; for, how can someone who works for a company give an unbiased opinion on the quality of a CIO?
Great article ! Reinforces what Morten T Hansen’s book Collaboration. Love the high performing employee network analysis.
Congratulation to Winners. I appreciate MIT sincere efforts presenting uncommon wisdom.
RafatKhan