The new threads of ‘Organization’

Thread
A thread runs through it.

Organization is one of our most potent social technologies. In a world where chaos, connectivity, and creativity have risen to new heights, increased attention on the topic is both natural and welcomed. Quite simply, if our civilization is set to pivot, getting better at it will help us realize a better future, sooner.

My three favourite books on the topic are (reading recommendations at the bottom of this post):

I recently revisited them side-by-side to see what they had in common. What stood out for me were the themes conditioning, humanity, networks, and social technology.

Conditioning trumps control

Already back in Heart, Beer recognized the role of management as attending to cohesion, sensing for incipient instability and making the minimum of intervention. In both Future and Pull the authors are more critical of the dehumanizing effect of command and control driven organizations and zero-sum management practices. They all argue that control restrains the creativity, humanity and innovation needed for any organization to thrive and adapt in complex and dynamic environments. Designing and managing organizations is increasingly about creating and conditioning spaces for passionate people to pursue a common purpose.

Organizations are human first

In Heart, Beer talked about the ultimate manager being someone who achieved enlightenment – someone who was fully alive and aware of who they were. Similarly he saw the optimal organization as one ‘exploding into self-consciousness’. Future and Pull more simply recognize that people are at their best when they are free to pursue what matters to them, in short, when they are treated as human beings, not production resources. Where Pull dives into the shift from transactions to relationships and the role of trust, Future summons the moral imperatives of beauty, truth, love, service, wisdom, justice, freedom, and compassion.

System dynamics dominate

Information flow is at the heart of Beer’s Viable System Model and Heart excels at driving the rigor of design around information sensing, amplification and attenuation. Its purpose is primarily for being able to sense for incipient instabilities and opportunities within and around the system in focus. This systems perspective is more fully fleshed out in Future through a case illustrating the power of prediction markets in achieving more accurate forecasts than the best analysts. Pull goes further drawing from examples of how sharing, production and collaboration through social media foster natural innovation and illustrate how these dynamics lead to increasing returns. In fact, they argue, that the real value of an organization lies in its networks of long-term relationships.

Social technology playing a pivotal role

Before Beer wrote Heart, he led a Star Trek-esque roject using telex machines in Chile to manage a centrally planned economy. It’s hard not to have a chuckle at first glance, but the core principles of the design are at the core of the opportunity in the emerging ecosystem of social technologies we have at our disposal today. In Future, written at the start of Web 2.0, Hamel boldly declares “Argue with me if you like, but I’m willing to bet that Management 2.0 is going to look a lot more like Web 2.0”. While the novelty of Web 2.0 had worn off a bit by the time Pull came out, the examples of how social technology is enabling people to pursue their passion, connect, and create value are foundational to how organization actually happens today. It is of course about more than the technology, it is about the technology having reached a point where it nurtures, enables and is compatible with the other three themes above. It seems, these technologies are instrumental in allowing organization to happen more naturally, and of course with over 4 billion people connected, at a scale never before imaginable.

In summary, it seems that the technology of organization is undergoing a transformation, enabled by our social technologies, and powered by passionate people. It seems that we naturally are drawn to collaborate around purpose to create a better future, sooner, however that looks to us individually. It seems, even, like a rennaissance of humanity.  Whatever it is though, it is on the upswing.

I’m looking forward to seeing what the great thinkers and writers discover next. I’m also, of course, looking forward to seeing what I can contribute to the game with things like Epic.io.

These are fun times to be alive and engaged.

>>> for those who haven’t yet read the above books… here’s my quick take on which is best for whom

  • Heart of Enterprise: A beast of a read but the most accruate understanding of what an organization actually is. Best for those who really really want to get their geek on… or those who are somewhat sadistic.
  • Future of Management: A powerfully passionate case for reinventing management. Best for those who are in management and in need of serious rehab from convention… if you don’t what I’m talking about, that’s you.
  • Power of Pull: A well researched and articulate understanding of how ‘organization’ is fundamentally changing. Best for those who want to understand what is going on right now and why… and those who are working to innovate for good right now.
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Lessons in systemic entrepreneurship. The time is now.

Late last fall I had the opportunity to conduct an intensive review of the Vartana initiative on behalf of the J.W. McConnell Family Foundation.  Vartana was an initiative to create a chartable bank in Canada dedicated to serving the voluntary sector. It held the promise of changing the availability of capital for the sector and as a Schedule I chartered bank, influencing the Canadian financial services industry. While ultimately felled by the financial services collapse of 2008, it holds some valuable lessons in entrepreneurial pursuit of systemic change.

In brief, the key lessons learned were:

  • Systemic interventions amplify strategic vulnerabilities
  • Ideation is the missed opportunity in systemic entrepreneurship
  • Communication is a critical organizing capacity

To put it simply, systemic entrepreneurship is, well, really stinkin’ hard. The path is more ambiguous, the context more complex, and resistance greater. It tests the entrepreneurial process to its fullest. If I look to my own entrepreneurial experiences, communication was always the ultimate core infrastructure. But the more systemic the aims, the riskier the initiative and the longer and more iterative the ideation process. It’s in those areas that entrepreneurial self-destruction most show their face.

From the Vartana experience, I found:

Vartana demonstrates that initiatives seeking systemic change require both adequate investment in up front ideation and strategy formulation and an infrastructure that has the capacity to respond commensurately to systemic resistance and volatility.

More broadly, I pressed the issue of entrepreneurial infrastructure:

…entrepreneurial infrastructure is not to be confused with conventional governance models that focus on executive limitation. Rather it should be designed to enable proactive and focused attention to governance, strategy, and execution. It must enable founding contributions from many; leveraging instead of hampering what are traditionally seen as conflicted roles like founder and funder. It must enable entrepreneurs to do the impossible in an environment that is flexible, yet that has the capacity and rigour to address the scale of the challenge at hand. It must create a space that nurtures meaningful engagement, rapid iteration and routine reflection, and transparent decisionmaking that remains grounded in achieving the intended impact with optimal levels of investment.

It reminds me a lot of what I’ve since read in The Power of Pull by John Hagel III, John Seely Brown, and Lang Davison of Deloitte’s Centre for Edge. Even the sub-line “How Small Moves, Smartly Made, Can Set Big Things in Motion” echos of systems thinking and social innovation.

Which brings me to my final point. As we pay attention to the systems of our society and find whatever we are working on increasingly influenced by changes in those systems… we elevate ourselves out of traditional sectoral silos. This isn’t an issue isolated to commercial, social, government or civil sectors. It’s an issue about our future and particularly those intent on creating a better future, sooner.

So, whether you buy into the Big Shift, the Great Reset, the Macropocalypse, the Macroshift, the Great Remix, or just think “we’re screwed”, the time is now. It’s about our future. Don’t wait. Try. Reflect. Share. Repeat.

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