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"I receive e-mail frequently from PR people promoting the latest IT tools and new Web applications. These days a common thread I see is the addition of social features to software to make it easier for users to share information and collaborate with others. Personally, I believe it’s largely beneficial to 1) find ways to take advantage of the social graphs that users have been building in recent years, and 2) add the techniques and channels of the social world to make traditional software more effective and usable in general."
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. So, while social impinging around the edges of enterprise applications is worth dealing with from a strategic perspective, it’s going to happen largely whether organizations plan for it or not. As such, it’s not likely to make a huge competitive or qualitative difference in the way most businesses perform. That is, unless they start the process of deliberate and strategic social business transformation,
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"I explained my current interest in social capital and asked Stewart which organisations he thought had strong capabilities that resulted mainly from the relationships between their people, ie capabilities built on social capital, rather than the people themselves, ie human capital, or processes, technologies etc."
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To do this effectively, Booz needs to be able to get teams forming quickly and working seamlessly, getting people on the same page very fast.
Booz pioneered knowledge management but it fell into disrepair and they got into bad technologies - their knowledge system was email sharing stuff on peoples’ hard drives. They’re now getting into 2.0 technologies.
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In addition, the firm recognises that people can’t deliver if reward systems aren't set up to support delivery across practices and geographies. So you have to remove barriers and incentivise usage
"Traditionally, ex-employees have been viewed as unloyal, traitors and not to be trusted. After all, an employee who leaves is likely taking all their knowledge with them to the next company, right?
But in an economy so demanding of maintaining relationships with talented individuals, does it make sense to cut ties with those who walk out the door? And does it necessarily mean that an organization loses that knowledge altogether?"
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- New communication channels may be established between the old and new firms
- Colleagues from the old firm gain an increased awareness of the new firm as a resource for knowledge
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“When people are viewed strictly as ‘human capital’, the departure of an employee results in the former employer’s loss of that person’s intellect and talent, and the corresponding gain of those same valuable attributes for the company doing the hiring…But Rosenkopf says the picture is different when employees are viewed in terms of ’social capital’. Workers aren’t just silos of knowledge and skill onto themselves, but rather are part of social networks of workers from various firms
My triggering point for this post was a post by Peter Bergman in the Harvard Business blogs on the best way to change corporate culture. It is in many ways a recapitulation of fundamental issues organizations face on the cultural side. He says: "Performance reviews and training programs define the firm's expectations. Financial reward systems reinforce them. Memos and communications highlight what's important. And senior leadership actions — promotions for people who toe the line and a dead end career for those who don't — emphasize the firm's priorities. In most organizations these elements develop unconsciously and organically to create a system that, while not always ideal, works."
What all of this really boils down is two things - human and social capital. Toyota in my view could be one such company - the robust and high performance knowledge sharing network they have built across their supply chain is a case in point. See research paper here .
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"Toyota’s network has solved three fundamental dilemmas with regard to knowledge sharing by devising methods to (1) motivate members to participate and openly share valuable knowledge (while preventing undesirable spillovers to competitors), (2) prevent free riders, and (3) reduce the costs associated with finding and accessing different types of valuable knowledge
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Technology makes things possible; people collaborating makes it happen."
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To what extent does your company facilitate social networking between employees split by geographical or organisational distance, or with (existing or potential) clients and business partners? What's the value of this social capital to the company (i.e. the connections within and between social networks as well as connections among individuals). How does it change the nature of opportunities and constraints each person faces, and the flow-on effects to the team and company as a whole?
IBM recently published its research surrounding Beehive (an experimental internal platform designed to blur the boundaries of work and home, professional and personal, and business and fun). The report provides empirical evidence of the power of nurturing social capital in the enterprise.
IBM Social Networking Research.pdf
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And finally, the more intensely someone uses Beehive (meaning more frequent visits and stronger associations with the community on the site) the higher they report their social capital is, across all measures. They have closer bonds to their network, they have a greater willingness to contribute to the company, they have a greater interest in connecting globally, have greater access to new people, and a greater ability to access expertise."
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As with any change initiative, building the right adoption models are equally important as building the right architectural/technical models.
And having just posted on Gary Hamel's latest thinking, I was particularly interested to see the article by Hamel's previous co-author, CK Prahalad, which comes to some fairly similar conclusions as Hamel.
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Purpose:
"The first task is to build an intellectual agenda. It must be at least intellectually challenging, and appeal to your emotions, either to your nationalistic identify or to your sense of what is good for humanity."
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Human capital:
"Resources can no longer be contained within the firm. So resources - talent or materials - must be available globally. Second, access, not ownership, is important. That means you may not directly employ any of this talent."
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We know that in the knowledge economy, the location of knowledge work is highly mobile – so “Land” does not have the same significance for making things as it did 100-200 years ago. What about “Labor”? Knowledge workers analyze situations, manage many variables, and create unique solutions. They do not really produce identical knowledge pieces like a machine operator or a production worker –so Labor also means something different than a century ago. The term “Capital” refers to money that would be needed now to build future structures, buy machines and to pay wages. Today money buys access to information, education, and knowledge workers. So we see that many old economic principle may not be as applicable in the new economies.
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Intellectual Capital Theory suggests that concentrations of educated and motivated people attract investors to employ them and invest in the communities where they reside.
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The Social Capital Model suggests that people acting in communities can create better solutions, greater accountability, and more economic growth than management, governments, or bureaucracy can induce on their ow
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One of the key concepts in Richard Florida's new book, "Who's Your City?" is that of the "clustering force," a knowledge-economy phenomenon that reward people for congregating in places where they can network and collaborate with one another. (
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I would submit a hypothesis: The capacity of a region for innovation can be measured by the number of formal and informal networking organizations that create "bridging" opportunities across the broadest possible spectrum of society. The richer and denser the skein of bridging networks, the more easily ideas can be communicated through a region, the more spontaneously creative ideas will erupt, and the more speedily people can convert novel notions into business opportunities.
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