Esko Kilpi on Interactive Value Creation

The art of interaction, the design of digital and the science of social complexity

Category: Creativity

Lean interaction

In lean vocabulary, anything that does not create value experienced by the customer, anything that slows one down in serving the customer’s need, or does not contain potential for learning, is waste. Making something that does not solve the customer problem is waste. Waiting is waste. Any extra processing steps are waste.

The concept of lean has lately been transferred from manufacturing to other practices such as media services. People are used to lean thinking when it comes to technology and industrial processes, but it is still rare to understand what being lean means in communication-centric businesses. This is because many managers still trivialize the power of interaction.

We still don’t appreciate that work is communication: we live and work in a network of conversations. Being lean today means understanding that these conversations are never neutral. They always affect the quality and pace of the customer outcome. Communication either accelerates or slows down. Communication either creates value or creates waste. Communication can create energy and inspiration or can take energy away and reduce inspiration. Waste today means getting stuck or running in cognitive circles in the conversations we are having. Communication enables but also restricts

The sciences of uncertainty and complexity have helped us to understand that organizations can be seen as patterns of interaction between human beings. The interactions in the linear mass industries were very different from the interactions in the dynamic, unstable, Internet-based world. To cope with this, we need to learn to embrace unpredictability and complexity as inescapable constants.

Many managers still possess the skills that meet the challenges of static conditions. In a static, reductionist environment, you knew how each role fitted within the larger system. You knew how the repetitive process worked, and you didn’t want deviations. You knew what it took to make the products and you didn’t want people changing anything or inventing things . You wanted everyone to do their planned part and not get in each other’s way. When roles and organizational units are separated from other roles and units, communication is the task of the manager. You, as a manager, do the coordination and share the information necessary for each to make their planned contribution and nothing more.

In dynamic business conditions, the management practices described above are not only unhelpful, but cause damage and create waste rather than value. If you cannot predict you have to invest in real-time learning and iterations instead of predictions. Success is first and foremost based on the value of interaction, context awareness and responsiveness. What we still need to learn is that this responsiveness is not possible if we are many handshakes away from the customer context that we should respond to.

The agile manifesto points out that individuals in interaction are more important than processes and tools. Working prototypes are more important than documentation. Customer collaboration is more important than contracts and, most importantly, responding to change is more important than following a plan.

Knowledge is the act of interacting and new knowledge is created when ways of interaction, and therefore patterns of relationships, change. The creative assets of an organization are the patterns of interaction between its members. Assets are destroyed when relationships are missing or are dysfunctional.

Enabling new habits of communication and improving the quality of the conversation are today among the most important processes of lean development.



Collaborative and Competitive Creativity

Pablo Picasso visited Henri Matisse often during the spring of 1946. Matisse was pleased to see him. Matisse was 76 and had endured arduous colon surgery. Much of his work was now done either in bed or from a wheelchair. Simon Schama tells the story that after one of these visits Henri Matisse wrote to his son Pierre: “Picasso came to see me with a very pretty young woman. He could not have been more friendly and said he would come back and have a lot of things to tell me. But he saw what he wanted to see, my works in cut paper, my new paintings. That’s all he wanted. He will put it all to good use in time.”

Art historians claim that the relationship between Picasso and Matisse was by turns collaborative and competitive. It was a kind of an on going sparring match between two great masters.

The new technological environment of business has something in common with the world of Picasso and Matisse. It is marked by conflicting constraints, variables that shift very rapidly and value-creating relationships that change constantly. It is a complex environment.

In complex environments, the way to proficiency is to recombine successful elements to create new versions, some of which may thrive.

As a result, not just the user interfaces, but the operating system of work is starting to change in a radical way. The traditional industrial approach to work was to require each worker to assume a predetermined responsibility for a specific role. The new approach represents a different logic of organizing based on neither the traditional market nor a process. Whereas processes involve relations based on dependence and markets involve relations based on independence, the new networks involve relations of dynamic interdependence. A bit like the relationship between Matisse and Picasso. Minimal hierarchy, organizational diversity and responsiveness characterize these architectures. They are a necessary response to the increasing fuzziness of strategic horizons and short half-life of designs. Because of greater complexity, coordination cannot be planned in advance. Authority needs to be distributed; it is no longer delegated vertically but emerges horizontally. Under distributed authority work teams and knowledge workers need to be accountable to other work teams and other knowledge workers. Achievement depends on learning by mutual accountability and responsiveness.

Management and strategy used to be about rational choice between a set of known options and variables. The variables of creative work and complex environments have increased beyond systems thinking and process design. Under circumstances of rapid technological change, the management challenge is to create openness to possibilities and plausible options.

Success is based on continuous redefinition of the organization itself. It is about recombining options and contributions in a competitive and cooperative environment. Creativity is the default state of all human work. Even the most creative people are more remixers of other peoples’ ideas than lone inventors. Technology and development in general are not isolated acts by independent thinkers, but a complex storyline.

The democratization of technology that is taking place at the moment does not determine social and organizational change, but does create new opportunity spaces for new social practices. The opportunity we have is in new relational forms that don’t mimic the governance models of industrial firms. Network theory suggests that what the system becomes emerges from the complex, responsive relationships of its members, continuously developing in communication.

Like Henri Matisse and Pablo Picasso.


Thank you Simon Schama