Esko Kilpi on Interactive Value Creation

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

Tag: Organizing

The Social Graph of Work

The approach of the industrial era to getting something done is first to create an organization. If something new and different needs to be done, a new and different kind of organizational form needs to be put into effect. Changing the lines of accountability and reporting is the epitome of change in firms. When a new manager enters the picture, the organizational outline is typically changed into a “new” organization. But does changing the organization really change what is done? Does the change actually change anything?

An organization is metaphorically still a picture of walls defining who is inside and who is outside a particular box. Who is included and who is excluded. Who “we” are and who “they” are.

This way of thinking was acceptable in repetitive work where it was relatively easy to define what needed to be done and by whom as a definition of the quantity of labor and quality of capabilities.

As a result, organizational design created two things: the process chart and reporting lines, the hierarchy.

In creative, knowledge based work it is increasingly difficult to know the best mix of people, capabilities and tasks in advance. In many firms reporting routines are the least important part of communication. Much more flexibility than the process maps allow is needed. Interdependence between peers involves, almost by default, crossing boundaries. The walls seem to be in the wrong position or in the way, making work harder to do. What, then, is the use of the organizational theatre when it is literally impossible to define the organization before we actually do something?

What if the organization really should be an ongoing process of emergent self-organizing? Instead of thinking about the organization, let’s think about organizing.

If we take this view we don’t think about walls but we think about what we do and how groups are formed around what is actually going on or what should be going on. The new management task is to make possible the very easy and very fast emergent formation of groups and to make it as easy as possible for the best contributions from the whole network to find the applicable tasks, without knowing beforehand who knows.

The focal point in organizing is not the organizational entity one belongs to, or the manager one reports to, but the reason that brings people together. What purposes, activities and tasks unite us? What is the cause of interdependence and group formation?

It is a picture of an organization without walls, rather like contextual magnetic fields defined by gradually fading rings of attraction.

Instead of the topology of organizational boxes that are still often the visual representation of work, the architecture of work is a live social graph of networked interdependence and accountability. One of the most promising features of social technologies is the easy and efficient group formation that makes this kind of organizing possible for the first time!

It is just our thinking that is in the way of bringing down the walls.


Social business and the changing theory of management

A manager recently voiced his concerns: “Most employees prefer being told what to do. They are willing to accept being treated like children in exchange for reduced stress. They are also willing to obey authority in exchange for job security.” That is the way we have seen it: managers inspire, motivate, and control employees, who need to be inspired, motivated, and controlled. These dynamics create the system of management and justify its continuation.

If we want to meet the challenges of the post-industrial world, this relationship needs to change. The workers changing their role is often seen as a matter of the extent to which the managers are willing to allow it and give up responsibility. In reality it is as much a matter of how much the workers are willing to develop their (management) capacity and take more and wider responsibility.

The dysfunctional relationship between managers and employees creates a self-fulfilling prophecy and a systemic failure in creative, knowledge-based work. What is tragic is that neither side normally understands the predictability of what is going on. The pattern is a mutually reinforcing self-destructive process that manifests itself as a steady decline in the authority of management and productivity of work.

A few researchers have started to dispute the assumption that the present system of management is a fact of life that will always be with us. It may be time for us to question whether the recent problems created by bad management are isolated and should be tolerated. Or to ask whether the fault is in the system itself and not in individual managers?

Luckily, management theory and practice are slowly starting to catch up with the dramatic changes brought about by the loosely coupled, modular nature of creative work and the ideals of social business.

A social business does not behave in the way our dominant management thinking assumes. What is it, then, that has changed?

Organizations are always assemblies of interacting people. The reason for an organization to exist is to simplify, support, and enrich interaction.

At present, there are three types of organizational cultures depending on the type of management and the alternative mechanisms for the coordination of tasks. The different task interdependencies accordingly place different and increasing burdens on our communication practices .

I call these the administrative culture, the industrial culture and the creative, social culture.

The administrative culture, which is found in most governmental organizations is about function-specific independent activities. Two functions or tasks are independent if it is believed that they don’t affect each other. The most important communication exists between the employer and the employee, the manager and the worker. The principle is that the execution of two independent tasks does not require communication between the tasks. The architecture consists of black boxes that are not coupled directly, but in an indirect way by higher-level managers, who coordinate the work. Work as interaction is mainly communication between hierarchical levels.

The industrial culture of process-based organizations is about dependent and sequential activities. Manufacturing work is about dependent tasks. Being dependent means that the output of one task is the input of another. The reverse cannot normally take place. In sequential dependence, those performing the following task must comply with the constraints imposed by the execution of the preceding task. Since the process architecture is typically quite clear, management coordination is mostly about measuring and controlling whether the execution conforms to the planned requirements. The architecture consists of tightly coupled tasks and predetermined, repeating activities. Work as interaction is a sequential process with one-way signals.

A creative, social culture is different. It is about loose couplings and modularity, about interdependent people and interdependent tasks. Two people/tasks are interdependent if they affect each another mutually and in parallel. Interdependent tasks call for peer-level responsiveness and coordination by mutual adjustments, not coordination by an outside party such as a manager.

Most of the information that is relevant will be discovered and created during the execution of the task, not before. As a result it is not always possible for a manager and a worker to agree on a coherent approach in advance. Nor is it normally possible to follow a predetermined process map.

The basic unit of corporate information in creative, social work is not content in the form of documents but interaction in the form of conversations. Knowledge is perpetually constructed in interaction. Work as interaction is complex, situational communication between loosely connected nodes of the network! The structure of work resembles the structure of Internet.

The three cultures and corresponding architectures differ in the degree to which their components are loosely or tightly coupled. Coupling is a measure of the degree to which communication between the components is fixed or not. In most creative work, and always in a social business, any node in the network should be able to communicate with any other node on the basis of contextual interdependence and creative participative engagement.

As organizations want to be more creative and social, the focus of management theory should shift towards understanding participative, self-organizing responsibility and the equality of peers. It is a systemic change, much more than just kicking out the bad managers and inviting new, better managers in. It is not about hierarchies vs. networks, but about how all people want to be present and how all people want to communicate in a way that was earlier reserved only for the people we called managers.


Eric Brynjolfsson video on TED. Steven Johnson video on peer networks. Gary Hamel interview.

Changing the way we work together

Many organizations are trying to ease into the social business environment. They take parts of the agenda in piecemeal fashion following an “easy steps” logic. Often this, in the end, means some additional communication tools inside the organization, or additional content through some additional new channels for customers. Nothing really changes what comes to the way people work together.

The way in which companies organize themselves and define their boundaries has essentially been determined by the way in which communication between people is planned and access to information is designed. The classic organizational structure was based on the assumption that a manager or worker could have rich interaction and exchange of information only with a limited number of predetermined people.

Our mainstream management theories are derived from the era of the production of tangible goods and high-cost/low-quality communications. These mind-sets are not only unhelpful, but wrong in a world of information products and ubiquitous, low-cost/high-quality connectivity.

New communication technologies have always had a strong impact on industries and the logistics around production. But this time, with information products, the societal changes are even bigger than before. The Internet is the first communication environment that decentralizes the financial capital requirements of production. Much of the capital is not only distributed, but largely owned by the workers, the individuals, who themselves own the smart devices, the machines of work.

The factory logic of mass production forced people to come to where the machines were. In knowledge work, the machines are where the people are. The logic of ubiquitous communication makes it possible for the first time to distribute work to where the willing people are, no matter where on the globe they may be. Knowledge work is not about jobs, but about tasks and interdependence between people. You don’t need to be present in a factory, or an office, but you need to connect with, and be present for other people.

Work is communication and cooperation, and there are so many new ways to do that.

We are living in a world that is built on the centrality of information and radically distributed contributions. As a result, the organization is not a given entity or structure, but an ongoing process of organizing. The accumulating failures of attempts at organizational resilience can be traced to the fundamental but mistaken assumption that organizations are vertical and/or horizontal arrangements, that guide and, as a consequence, limit interaction.

Information is the power plant that has the ability to change the organization. When information is transparent, people can organize effectively around changes and differences, around customers and new opportunities. Different people see different things and new interdependencies are created, thus changing the organization.  The easier the access that people have to one another and to information is, the more possibilities there are.

Rather than thinking of organization as an imposed structure, plan or design, organization arises from the interactions of interdependent individuals who need to come together. Sometimes people stay together for a long time, sometimes for a very, very short time. This is because any higher-value activity involves complementary and parallel contributions from more than one person, team, function, or a firm.

The focus of industrial management was on division of labor and the design of vertical/horizontal communication channels. The focus should now be on cooperation and emergent interaction based on transparency, interdependence and responsiveness.

What comes to the productivity of work, these may be the most important points on the social business agenda. The really big objective of social business is to reconfigure agency in a way that brings relationships into the center.

Success today is increasingly a result from skillful participation: it is about how we are present and how we communicate. Through new technologies, applications and ubiquitous connectivity, we have totally new opportunities for participation and communication – potentially changing the way we work together.


More: the trend from routine to nonroutine work.

Emergence and self-organization

Many people say that open source software developers have the most efficient ecosystems for learning that have ever existed. What is it, then, that is so special about the way developers do things? Is there something that could act as a model for the future of work, or the future of education?

What takes place in open source projects is typically not the result of choices made by a few (powerful) people that others blindly implement. Instead, what emerges is the consequence of the choices of all involved in the whole interconnected network, “the connective“, as Stowe Boyd puts it. What happens does not follow exactly a plan or a design, what happens emerges. It is about the hard to understand process of self-organization.

We still don’t quite understand what emergence and self-organization mean. The problem is that we believe that the unit of work is the independent individual. Self-organization is then thought to mean that individuals organize themselves without the direction of others. People think that it is a form of empowerment, or a do-whatever-you-like environment, in which anybody can choose freely what to do. But connected people can never simply do what they like. Cooperating individuals are not, and cannot be, independent. People are interdependent.  Interdependence means that individuals constrain and enable each other all the time. What happens, happens always in interaction and as a result of interaction.

According to the present approach to management, planning and enactment of the plans are two separate domains that follow a linear causality from plans to actions. From the perspective of open source development, organizational outcomes explicitly emerge in a way that is never just determined by a few people, but arises in the ongoing local interaction of all the people taking part. For example GitHub “encourages individuals to fix things and own those fixes just as much as they own the projects they start”.

What emerges is, paradoxically, predictable and unpredictable, knowable and unknowable at the same time. This does not mean dismissing planning, or management, as pointless, but means that the future always contains surprises that the managers cannot control. The future cannot be predicted just by looking at the plans.

Emergence is often understood as things which just happen and there is nothing we can do about it. But emergence means the exact opposite. The patterns that emerge do so precisely because of what everybody is doing, and not doing. It is what many, many local interactions produce. This is what self-organization means. Each of us is forming plans and making decisions about our next steps all the time. “What each of us does affects others and what they do affects each of us.”

No one can step outside this interaction to design interaction for others.

An organization is not a whole consisting of parts, but an emergent pattern in time that is formed in those local interactions. It is a movement that cannot be understood just by looking at the parts. The time of reductionism as a sense-making mechanism is over.

What we can learn from the open source ecosystems is that organizational sustainability requires the same kind of learning that these software developers already practice: “All work and learning is open and public, leaving tracks that others can follow. Doing and learning mean the same thing.”

The biggest change in thinking that is now needed is that the unit of work and learning is not the independent individual, but interdependent people in interaction.


Thank you David Weinberger, Ken Gergen, Ralph Stacey and Doug Griffin

More on the subject: the GitHub generation, Sugata Mitra. Video: “Knowledge in a MOOC” Steve Denning on complexity. The mundanity of excellence.

The management of the social business

The division of labor reduced organizational effort and the cost of work in factory production. The division of labor also increased the quality of work through specialization. This led managers to focus on the efficiency of activities that were separated from other activities. Organizational design was seen as the planning and execution of a collection of independent, but connected jobs forming the workflow system.

Connections were based on top-down command-and-control and horizontal, sequential processes. In both cases the action of one part was meant to set off the action of another. Interaction was understood as one-way signals, a system of senders and receivers, a system of causes and effects.

In the cause-and-effect model of communication a thought arising within one individual is translated into words, which are then transmitted to another individual. At the receiving end, the words translate into the same thought, if the formulation of the words and the transmission of those words are good enough.

Physical tasks could be broken up in a reductionist way. Bigger tasks could be divided by assigning people to different, smaller and fairly independent parts of the whole. For intellectual tasks, it is not possible to find independent parts because intellectual tasks are by default linked and interdependent, creating a totally different work environment. In this new work, communication is not talking about work, but work is communication between people.  This is why a social business follows a very different model of causality.

In this model of complex causality, communication takes the form of a gesture made by an individual that evokes a response from someone else. The meaning can only be known in the gesture and response together. If I smile at you and you respond with a smile, the meaning is friendly, but if you respond with a cold stare, the meaning may be contempt. Gestures and responses cannot be separated but constitute one act. Neither side can independently choose the meaning of the words or control the conversation. Thus you can never control communication.

The cause-and-effect model of management presumes, accordingly, that leadership potential resides within an individual person, who is the cause. From a social business standpoint the individualistic view is fundamentally misleading. One cannot be inspiring or energizing alone. These qualities are co-created in an active process of mutual recognition. An inspiring person is only inspiring by virtue of others who treat her this way. A good decision is only good if there are agreeable people around. Mutually recognizing and mutually supporting relationships are the sources of progress. Actions always emerge in a network of relationships – in co-action instead of cause and effect.

Any higher-value activity involves complementary and parallel contributions from more than one person or one team. Instead of division of labor and the vertical/horizontal communication design, the managerial focus should now be in synchronous co-action and enriching interaction. Communication does not represent things in the world. It brings people and things into being.

Social businesses are about interdependent people working in complex interaction


Organization is a process, not a structure

The way in which companies organize themselves and define their internal boundaries has essentially been determined by the way in which communication between people is planned and transfer of information is designed. The classic hierarchical structure was based on the assumption that a manager or worker could have rich interaction and exchange of information only with a limited number of predetermined people. A narrowing of interaction always marked operational boundaries. Thus you did not want people to cross functional silos. This was the infamous trade-off between richness and reach.

An increasing number of companies trying to become social businesses are now becoming aware of the technical barriers and structural bottlenecks that hinder or totally prevent cooperation that is not planned in advance.

It is time to rethink. Rather than thinking of organization as an imposed structure, plan or design, organization arises from the interactions of interdependent individuals who need to come together.

The accumulating failures of attempts at organizational agility can be traced to the fundamental but mistaken assumption that organizations are structures that guide and, as a consequence, limit interaction. An organization as a structure is a seventeenth century notion from a time when philosophers began to describe the universe as a giant piece of clockwork. Our beliefs in prediction and organizational design originate from these same ideas.

A different ideal is emerging today. We want to be agile and resilient and we want to learn effectively and fast. The tension of our time is that we want our firms to be flexible and creative but we only know how to treat them as systems of boxes (or network nodes, where the shapes are round instead of square), with a fixed number of lines between them.

It is time to change the way we think about organizations. It is not about hierarchies vs. networks, but about a much deeper change. Organizations are creative, responsive processes and emergent patterns in time. All creative, responsive processes have the capacity to constantly self-organize and re-organize all the time. Change is not a problem or anomaly. Change is the organizing input rather than the typical managerial re-design process.  All solutions are always temporary.

Gregory Bateson wrote: “information is a difference which makes a difference”. Information is the energy of organizing. When information is transparent to everybody, people can organize effectively around changes and differences, around customers, new technologies and competitors.

What we have still not understood is that people need to have access to information that no one could predict they would want to know. Even they themselves did not know they needed it – before they needed it. Thus an organization can never be fully planned in advance. When information is transparent, different people see different things and new interdependencies are created, thus changing the organization. The context matters more than ever. The easier the access that people have to one another and to (different) information is, the more possibilities there are.

We seek organization, but organization is a continuous process, not a structure.


Thank you Ken Gergen for a great evening and great conversations

More on Gregory Bateson. On social business. Narrative work.

Clubs may be the future of offices

Although work today is primarily digital, organizations still have a spatial dimension in one way or another. Even in the digital age we still think in terms of space. The key thing is that both the organizational structure and space greatly influence the patterns of work. A few years ago, the typical organizational design meant that work was divided into multiple parts that were simply added together to create the product. Individual workers did not need to know much more than what was specific to their individual tasks to complete their jobs. This created the offices we have today with separate meeting rooms for people to use when face-to-face communication with others was needed.

Today, the results of work are not brought together at the end but are communicated throughout the process. A growing number of people are involved in generating ideas and information and bringing those ideas together in collaborative sense making. Work is interaction and an ongoing meeting. Communication is not talking about work. Communication is work.

Three archetypes of communication can be seen in firms. The first type is communication for responsiveness and coordination. This creates the need for transparency. The right hand knows what the left is doing. The second type is asymmetric following. It is about a Twitter kind of information logistics to help people keep up with new developments that are contextually important for them. The third type is serendipitous inspiration from ad hoc encounters. It is spontaneous and helps people to come upon the unexpected. The third type of interaction often occurs between people who work on different things and draw on different disciplines. These people don’t often meet in traditional work arrangements. They don’t normally have a lot to do with each other on a daily basis.

Most managers will acknowledge the role played by the organizational structure and the process chart, but not all understand that physical space is equally important. Structure and space together influence how we work and how efficiently communication takes place when we meet.

There is an interesting benchmark available: private clubs. These clubs are places where typically only members and their guests are allowed in. The rooms are defined according to a function, such as socializing, eating and reading. These rooms are open to all, rather than being assigned to a single worker. You can book a more private room for a specific purpose, but in a clubhouse, you cannot put your name on the door.

Members of future organizations will use these new co-working spaces for projects, networking and for concentrated work, but they are not going to have spaces to fill with their personal belongings.

Many people bemoan the loss of a personal designated space, a little home away from home. However, I believe that they are going to learn to appreciate the value of freedom of choice and the escape from the control system of being seen in the same traditional office cubicle nine-to-five.

If you are in the middle of a conversation with someone, you seldom pause to talk about the conversation itself. But today, it is time to pause and consider, not only the new digital tools, but how we work physically together and where we meet to do that.

And yes, we are also going to continue to meet face-to-face in small groups in the future.


The inspiration for writing this came from meeting my friend @elsua face-to-face for the first time a few days ago. Thank you @villepeltola and @sakuidealist

Advice on how to manage off-site workers

New structures – new designs

When we think about business structures, many of us picture an organizational chart or the layout of an office building. A structure often refers to the physical arrangement of things, the parts making the whole.  What we have missed so far is an understanding of the business structures that can foster faster learning and help us work better with information. Conventional structures don’t address knowledge-related challenges as effectively as they do problems of measuring input and output or accountability.

What social media have helped us to do is to link and coordinate unconnected activities or initiatives addressing a similar information domain. There have also been great successes in diagnosing recurring business problems whose root causes cross unit boundaries. We know that the problems we face today are too complex to be managed by one person or one unit. It requires more than one brain, one point of view, to solve them.

Sharing a practice or sharing an information domain requires regular interaction. Work is interaction and the new business structures should be built on interdependence and communication.

Almost all business communities started among people who worked at the same place or lived nearby. But co-location is not necessary any more. The Internet has changed that. Interdependent people forming a community can be distributed over wide areas. What then allows people to work together is not the choice of a specific form of communication, face-to-face as opposed to email or social platforms, but the existence of a shared practice, a common set of situations. What lies at the core of those situations is the need for different perspectives requiring interaction.

When you design for live interaction, you cannot dictate it. You cannot design it in the traditional sense of specifying a structure or a process and then implementing it. As many have experienced, communities seldom grow beyond the group that initiated the conversation, because they fail to attract enough participants. Many business communities also fall apart soon after their launch because they don’t have the energy to sustain themselves.

Communities, unlike business units need to continuously invite the interaction that makes them alive.

Community design is closer to iterative learning than traditional organizational design. Live communities reflect and redesign themselves throughout their life cycle. The design should always start with very light structures and very few elements.

What is also different is that good community architecture invites many kinds of participation. We used to think that we should encourage all the community members to participate equally. Now we know that a large portion of the network members are and should be peripheral. In a traditional meeting we would consider this type of participation half-hearted, but in a network a large portion of the members are always peripheral and rarely contribute. Because the boundaries of a live community are always fluid, even those on the outer edges can become involved for a time as the focus shifts to their area of particular interest.

Because conversations and communities need to be alive to create value, we need an approach to management that appreciates passion, relationships and voluntary participation. Rather than focusing on accountability, community design should concentrate on energizing, enriching participation.

The new structures and new designs are about communities continuously organizing themselves around shared information, shared interests and shared practices. Business is about doing meaningful things with meaningful people in a meaningful way.


More: “Lead like the great conductors

Attention blindness and the social business

Cathy N. Davidson has studied the way we make sense and think. Her claim is that we often end with problems when we tackle important issues together. This happens “not because the other side is wrong but because both sides are right in what they see, but neither can see what the other does”. In normal daily conditions, it may be that we don’t even know that other perspectives other than our own exist. We believe we see the whole picture from our point of view and have all the facts. Focus however means selection and selection means blind spots leading to (attention) blindness. We have a partial view that we take as the full picture.

This is one of the reasons why people in companies are often stuck in narrow, repetitive and negative patterns that provide them with numbing, repressive and even neurotic experiences.

The opportunity provided by social tools lies in the widening and deepening of communication, leading to new voices taking part and new conversations that cross organizational units and stale process charts.

According to Cathy Davidson, attention blindness is the fundamental structuring principle of the brain. Attention blindness is also the fundamental structuring principle of our organizations and our political system. We see and understand things selectively.

Knowing in the brain is a set of neural connections that correspond to our patterns of communication. The challenge is to see the filters and linkages as communication patterns that either keep us stuck or open up new possibilities.

The opportunity lies in the fact that as we don’t all select the same things, we don’t all miss the same things. If we can pool our insights we can thrive in the complex world we live in. In this way of thinking, we leave behind the notion of the self-governing, independent individual for a different notion, of interdependent people whose identities are established in interaction with each other.

From this perspective, individual change cannot be separated from changes in the groups to which an individual belongs. And changes in the groups don’t take place without the individuals changing.

Our attention is a result of the filters we use. These filters can be a mix of habits, company processes, organizational charts or tools. Increasingly these filters are social. They are the people we recognize as experts. Our most valuable guides to useful bits of insight are trusted people whose activities we can follow in real time to help us enrich our views.

Management research has focused on the leadership attributes of an individual. Leading and following in the traditional corporate sense have seen the leader making people follow him through motivation and rewards. The leader also decided who the followers should be.

Leading and following when seen as a relationship, not as attributes of individuals, have a very different dynamic. Leading in this new sense is not position-based, but recognition-based. People, the followers, also decide. The leader is someone people trust to be at the forefront in an area, which is temporally meaningful for them.

People recognize as the leader someone who inspires, energizes and empowers them.

Another huge difference from traditional management is that because of the diversity of contexts people link to, there can never be just one boss. Thus, an individual always has many “leaders” that she follows. You might even claim that from the point of view taken here, it is highly problematic if a person only has one leader. It would mean attention blindness as a default state.

We are now at the very beginning of understanding leadership in the new contextual, temporal framework. The relational processes of leading and following should be seen as temporary, responsive activity streams, not only on the Internet but also inside companies. They are manifested as internal (Twitter) feeds, (Facebook) updates and blog posts from the people you associate with.

Richer, more challenging, more exploratory conversations leave people feeling more alive, more inspired and capable of far more creative and effective action.


Thank you Cathy N. Davidson and Doug Griffin

Why Start-ups should think differently

Corporations are the dominant mechanism by which economic activity is organized in developed countries. Whether there are opportunities for leaner and more agile approaches to value creation in the corporate context, is hence a key question for the prosperity and well-being in the society.

The big move we are in the midst of is towards an economy that is more centered on information products than physical products. Examples of this are financial services, professional services in general and software.

The second transformative change is global access to relatively cheap and relatively high quality communication networks.

New communication technologies have always had a strong impact on the production of information. But this time the societal changes are huge. The Internet is the first communication environment that decentralizes the financial capital requirements of producing information. Much of the capital is not only distributed but also largely owned by the end users. Network servers are not very different from the computers we have at home. This is a complete departure from the model of TV broadcast stations and televisions.

The characteristics of the new economy are different from what we are used to: the production of physical goods was (financial) capital-intensive, leading to centralized management structures and the shareholder capitalism we now experience. The production of information goods always requires more human capital than financial capital. It is much more about finding brains than finding money. But the good news is that you are not limited to the local supply. Work on information products does not need to be co-located. If the task at hand is inviting and compelling, human capital investments can come from any part of the network.

This is why decentralized action plays a much more important role today than ever before. The architecture of work is the network and the basic unit of work is not a process or a job role but a task.

Our management and organizational approaches are derived from the era of tangible goods production and high-cost/low-quality communications. These mindsets are not helpful in a world of widely distributed value creation and ubiquitous connectivity.

The opportunity is in new relational forms that don’t mimic the governance models of industrial, hierarchical firms. We are already witnessing the rise of very large-scale collaborative efforts that create tremendous value. Coordinated value in these cases is the result of uncoordinated actions by a large number of individuals with different goals, different values and different motivations to take part.

The financial capital constraints on action meant that having a great idea, or simply wanting to do something, was not enough to get one going and trying it out. In the networked economy, information products can now be created and co-created in a human-centric way, by interdependent individuals, interacting with each other by utilizing free or low cost social media.

Technology does not determine social and organizational change, but it does create new opportunity spaces for new social practices. Some things are becoming much easier than before and some things are becoming possible, perhaps for the first time.

Pitching in the world that is built on the centrality of information and radical decentralization of intelligence may be more about justifying human capital investments than justifying financial investments. Perhaps start-ups in the future won’t even seek to create jobs at all because of their industrial-era nature, but may see themselves as platforms for all kinds of contributions from all over the network they are an active part of.


Thank you Margaret Blair and Yochai Benkler

More on the subject: The work of Yochai Benkler. The Atlantic on progress in life and job careers. A TED video on unintended consequences. Steve Blank´s great post on start-ups. Irving Wladawsky-Berger´s post on new style of working. Luis Suarez writing about the social enterprise. GigaOM: Do we need defined hours of work any more? The Atlantic: A Jobs Plan for the Post-Cubicle Economy. “From a container to a platform”; @Joi Ito’s blog post @ the MIT Media Lab. A very nice Cisco ad.