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Posts Tagged ‘opinion leader’

Successfully Developing Triple Bottom Line Sustainability: #1

October 22, 2010 6 comments

This is the first of six Blogs dealing with TBL Sustainability to be published over the next few weeks. All these Blogs are being co-developed with my colleague and TLA Associate Tia Carr Williams.

“We now know that the source of wealth is something specifically human: knowledge. If we apply knowledge to tasks we already know how to do, we call it productivity; if we apply knowledge to tasks that are new and different, we call it innovation. Only knowledge allows us to achieve those two goals. Organizations that are efficient and effective in applying knowledge will succeed better than their competitors” – Peter Drucker

Business as usual is no longer an option – it is obvious that traditional organizational design has not worked in today’s complex business environments. New ways of thinking and organizing are critically important if organizations are to do more with less, and ensure ongoing business growth and renewal.

Most of today’s organizations are set up like spider webs with thinking and command at the centre, and planning and control exerted through the web threads. The problem is that command and control operation is far too inefficient in terms of speed and efficiency, too clumsy in terms of knowledge management, and too lacking in variety for today’s complex dynamic business contexts. Top-down corporations need to adapt their fundamental structure to change from a command and control model to one that promotes facile communication incorporating social trust and widespread knowledge sharing – in other words to survive surging market competition organizations must decentralize.

A decentralized organization has distinct market advantages over a wholly centralized organization, allowing not only for the natural development of the key capabilities needed for the organization to operate creatively and successfully in face of today’s constantly changing circumstances and environmental demands, but equally to address the needs of a churning workforce that increasingly includes a new breed of worker – the Generation Y Millennials, the cohort born between the mid-70s and the early 2000s. Organizations challenged with three generations of employees need novel organizational strategies to accommodate employees’ varied learning requirements and to foster work satisfaction. Decentralized organizations are more responsive to market forces and employee variety, are agile in implementation, and are consistently adaptive to innovative processes that promote and empower continuous improvement at the rock face of employee daily-deliverables.

Decentralization as it is implemented today typically involves creating a starfish configuration, comprised of small hubs capable of operating, growing and multiplying interdependently of each other. The starfish model is used by innumerable organization designers around the globe today. Although it is an advance over the spider web design, and does facilitate significant strategic advantages to emerge from daily operations in ways that play a significant role in continuous improvements informing sustainable advantage, the starfish model still does not go far enough to provide a truly sustainable systemic approach to organizational design.

Genuine Sustainable Advantage (SA) demands a much more polyarchic approach, providing both independency and interdependency of all major components of organizational processes. In the SA model people become epi-central to the co-evolution and co-maintenance of strategy, structure, processes, and rewards. Human-centric organizations include employees in most of the organization’s responsibilities and decision-making, ensuring incremental investment by each member in the rigors and rewards of a profitable company.

In the second Blog of this series the critical differences between Sustainable Advantage (SA) and Sustainable Competitive Advantage (SCA) will be explored, and the relevance and promotion of innovation reviewed.

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The Power of Social Networks & Opinion Leaders

June 27, 2009 Leave a comment

Some time ago my PC crashed and being old it was not worth replacing. The first thing I did was to talk to friends who had gone through similar experiences, and I prepared myself for the new purchase by talking to vendors about their products and by checking books and reviews by acknowledged experts. Then I shared with my network details of the models that I had investigated. By that time I had already decided on the PC I felt would best fit my requirements, but in talking to my friends I was persuaded to change my mind and pick a different model.

I purchased that machine and it is giving me excellent service. I don’t believe that this experience is at all unusual; indeed, I think it’s quite commonplace in dealing with everyday problems of all kinds. Most of us welcome support in addressing our challenges, and seek the help and advice of our social networks in resolving them. The example shows that I did not exclude expert commentary, but it also shows that intervention by familiar trusted social elements is often what provides the final, but most influential, recommendation in the decision-making process. This is because these members of a trusted network ensure the ‘safety’ and ‘cultural fit’ of the decision. Other arms-length elements provide guidance, but in the final analysis they often seem too distant from the complexities of the local situation to be persuasive or perhaps trustworthy.

For me this episode says a lot about the power of networks and defines many of the principles of “opinion leaders”. It got me wondering why, if we follow this process so frequently in our everyday lives, we do not follow it in our organizational lives? Well, guess what – as individuals in informal organizational communities we do! Unfortunately, we don’t formally recognize it, or attempt to address its ramifications or leverage it as a matter of organizational policy and practice. Maybe it’s so commonplace that we all fail to see its utility, just like goldfish are said to fail to comprehend the need for the water in which they swim. Or maybe it’s just not technologically sexy enough.

This acceptance of the power of networks and opinion leaders is at the heart of much of what I and TLA’s Associates ( www.tlainc.com ) bring to our various assignments and I’m delighted to dialogue on  this if you feel like contacting me …