Archive for the ‘Business science’ Category

Social business, social fabric and the healing mesh

The business of social media engagement comes down ultimately to what we think, do and feel.  For social business practitioners in the business of doing things better, it’s easy to see the world as one big data problem. If we had complete and open data running through the corridors of corporations, including information about how we think, informed decision-making would be arguably so much easier.

Equally important to social business is how we feel and this is where the lines of engagement are being drawn. One of the best definitions of social business came from Chris Brogan a few years back when he said ‘social business is human business’. That one line captures something fundamental about the nature of social business, and the business strategies needed to adjust to it.

Working on developing quantified organisations means placing stock, as well as taking comfort, in the numbers. But what makes social business truly matter is how it can deliver more business health and performance than conventional methodologies.

Chiefly this comes down to the way social business can develop generative and organic value through people working collectively together. This post is about how social business does that and how, in doing so, it can help renew the fabric of torn and fragmented society. It’s a post, in particular, about the ‘healing mesh’. The mesh can be a distributed network, as Lisa Gansky’s described it. The healing mesh can be spun around a hashtag, or a virtual experience that people gather around like a digital maypole. It can be the wired and connected infrastructure that’s increasingly housing shared value and enabling collaborative consumption business models.

The healing mesh is an evolved step on from an industrialized scale focus on consumption at all costs to a focus on empowerment and on human relationships as an alternative source of value generation. As a means to driving business opportunity it’s hitting the mainstream, as signaled this week with the news that GM has signaled a commitment to car sharing as a part of its business model.

At a visceral level, the healing mesh is the product of interaction that’s stimulated to heal because of a neurological sympathetic response to conditions around it, whether business or personal. It’s a response to the dysfunctional workplaces that 30% of all US workers are now describing as psychologically unsafe and is created from the synapses of people calling out what can be better as a result of social business.

Discussing the healing mesh with Anne-Marie McEwan (@smartco) recently, we reflected on how social business can weave, repair and create a lucrative social fabric by recognizing, as Yves Michaud’s suggests, that creativity emerges in the context of dereliction and decline. In so doing, the synaptic responses that arise out of that awareness can create the action potential to produce fibrinogens as the mesh that form the healing wound of a grazed knee at an individual level, or a broken society at a collective one.

A key element of sustainable businesses in the future, including the nature of the networked organisation and quality of life in the workplace, is going to be whether there is a shared point of intention. Intention will run like a thread through social organization. The battle currently is for people’s minds, but the opportunity can also be about connecting with people’s hearts and by creating choice as part of a lucrative gestalt.

Anne-Marie and I had lunch recently at Petersham Nurseries, tucked away by the river near Richmond.

It’s a modern Avalon, a restaurant within a gardening centre and nursery with the glorious combination of a Michelin star and a hard dirt floor. Full of beautiful things, good food and rusty tables, it is a place with good husbandry and a love of nature at its heart, where decay and growth run comfortably hand in hand.

It was the perfect setting for a conversation about the nature of the networked organisation today and social fabric in the 21st century and this concept of the ‘healing mesh’.

During lunch our attention turned to the health of networks, what organic beauty and value is in them at a systemic level, what makes them attractive, genuine, raw, appealing, and capable of fostering cultures that can flourish.

In social business the net worth, as we say, is the network. What that suggests is it’s very much the act of coming together and the connectivity between individuals, as much as the individuals themselves, that makes a difference to the health, vitality and performance of distributed organisations. Organisations can benefit a great deal today by relearning and redefining how they ‘do interaction’ and it is curious how much of this act of choosing to come together marketing effort actually focuses on side-stepping.

Letting things happen is so often not a marketing objective. The battleground for business and marketing power is often intent on developing brokerage as a means of cultivating dependency and seeking control over people’s minds, using direct or indirect commands to ‘like us!’ and the ease and convenience of zombification strategies designed to nudge and dilute free will. Decode marketing speak and very often consumer choice often is the elephant in the room, the thing that technology applied to marketing and advertising can obliterate because it’s too random. With so much invested in the way we do things, marketers often assume it’s easier to change the nature of the consumer than the nature of the business model.

Yet the skill and the insight involved in letting things happen is like that of a good sailor with their hand on the tiller, and the metaphor for social businesses as a means of cocreated and generative value can be a boat where people are in it together. Social businesses where people connect because they want to are essentially an odyssey towards value created out of a common purpose, need or desire. It puts problem solving, not profiteering, at the heart of the corporate intention. That kind of interaction between people is the warp and the weft of healthy social fabric for a distributed, networked age.

Contrast that with what we are seeing revealed as ‘wounded people and wounded organisations’, as Anne-Marie put it over lunch. We’re seeing networked opportunities blocked by obedient gatekeepers only trying to do their job and organisations stuck in vicious repeat loops confined by their own protocols. When the risk of breaking out of ‘the way we do things around here’ is regarded as culturally and operationally too disruptive, what happens it that emergence becomes emergency and business models become calcified.

We say at Visceral Business that ‘affinity is stronger than structure’ because the accessible connectivity of the web enables people to do the things they want to, not just what they have to do. But what we have in the here and now as reality at many levels is a failure of the systems of leadership to enable that.

The healing mesh of social business is what happens when you put skin into the game. A fantastic advantage of the social web is that people can reach out to one another, and do, which creates the opportunity for a new kind of social fabric, woven together out of connected intention. That kind of co-operation can be the fabric for an emergent civilization.

The intangible values that bind us also drive the tangible benefits that can be experienced as part of an open access economy. As Anne-Marie put it, ‘People are eager to go above and beyond what is expected in their work – but leaders are failing to provide systems and performance environments that let people find meaning in their work. People find meaning in their relationships with work and with each other. They need to be given opportunities to learn, to contribute, to be listened to, to be appreciated, trusted, to be socially included and to feel safe. In fact, to be treated as human beings.’

Social organizations can be the conduit for that kind of activity and effective high tech and high touch strategies can enable new kinds of interaction across social, mobile and local touchpoints, on and offline. As a terrific article by Mary Joyce put it recently, the more we understand about innovation, the more we understand that it is a social process.

So the healing mesh is essentially the intention of people coming together in a certain way with specific value beliefs attached to that way.

Out of that thought, myself and Anne-Marie have come up with a project we’re calling ‘the Petersham project’ as a homage to the source of the thought and a line of enquiry to explore the question, what’s the kind of cultural code needed to enable a healing mesh, and how can it be realized?

There are several people we’ve thought about inviting into this project, and if you’re interested in becoming part of it please find either me or Anne-Marie on Twitter. We’re looking to manifest this healing mesh by creating a forum for people who share the fact that they are all sympathetic and attuned the potential of the social web. We’re aiming to develop an exciting piece of learning, helping organisations, groups and communities to determine for themselves how they can perpetuate a healing mesh culture, in the same way as our understanding of ‘flow’ is so powerful as a set of insights.

Anne-Marie characterized the need by saying ‘there are too many dysfunctional workplaces and there is no excuse for that. We know what healthy workplaces can look like and there is an opportunity for us to conceive of them, driven by values that can now come together in a powerful way. Some of us see the opportunity beginning to be squandered. The Petersham Project, as we see it, is a way of declaring specific values and beliefs.’

We both think by opening up our sense to this question the fun will be in seeing how these emerge. We think the healing mesh is here already. It is emerging, area by area, city by city, and hashtag by hashtag, as a mesh of the committed. It is a mesh of those who seek to heal by leaning in to the questions looking for answers, the issues that need solving and the needs that are being asked to be met.

Social business ask questions about how open access, interactive organization and sustainable business can be most lucrative and how people can commune together to meet needs and solve problems. As organisations become more dispersed, there’s a paradox in this development. The social fabric and cultures of connected enterprises are increasingly going be dependent on the ties of the healing mesh and the way in which the committed bind together as a social fabric, with the ability to drive the strength and viability of a vibrant networked economy that can be taken forward. We would love to hear your thoughts on it.

 

 

Cogs and corpuscles


HR operations for organizations make a fine art out of developing job descriptions, roles and responsibilities, duties, and key performance indicators.

They’ve led to management layers and mechanical thinking, and sometimes to zombie businesses that work to the script but can miss essential opportunities.

In effect, they’ve developed cogs for factory structures. This ‘division of labour’ model, whilst not necessary entirely obsolete, can have the effect of doing business today a lot of harm.

The problem with cogs is that a cog out of alignment can halt a whole machine. Cogs are geared to work in a pre-prescribed fashion, they’re passive processors, part of ‘the system’.

Many a corporate structure today is based on a structure comprised of cogs.

One of the principles of Visceral Business is that ‘affinity is stronger than structure’; we help organizations adapt to become socially calibrated so they’re more strategically connected and dynamic.

As we become more networked in general, as the lines between inside and outside the co-created business become blurred, I have a hunch that we may look at mechanical business models one day and see this way of organising as having as much sophistication as a set of meccano.

By comparison, corpuscles are rapidly adaptive receptors that respond to mechanical pressure or distortion. They balance introvert and extrovert stimuli within the corporate body as a whole, based on a combination of shared imperative and free will.

And because they’re adaptive, they can coagulate.

In business management today, there are strong arguments emerging to think of people as corpuscles not cogs, as vital, dynamic and highly differentiated elements of ability, and to work with them in this way.

Evidence is emerging to suggest incorporating (quite literally), the biological nature of human networks into business strategy, that strong organizations are ‘super-organisms’ as Nicholas Christakis, talking about the power of social networks at the RSA, described them last week.

Matthew Taylor, writing in the RSA blog yesterday, expanded on this by referencing the RSA’s Connected Communities project, and saying ‘it should be a key plank of strategies to build community resilience that we identify who these people are and that we give them resources (for example, access to social media) so they can apply their skills. These are the people public authorities should engage when they are designing some or other policy intervention.’

Coagulation, at a very primal level, breeds creativity. It happens when corpuscles cluster together through shared purpose and affinity and, today coagulation doesn’t just breed creativity, it breeds profit.

Have a look at this video of a talk Robert Scoble gave recently at Stanford. Making some leeway for the slightly amusing subtitles, it hints at the way social business is going and makes the point compellingly that how we need to be thinking and organising today, how people work and how ideas spread now, is a biological business.

Businesses can gain ground today by re-imagining their business frameworks to be less about structures and more about genetics, by thinking about making a move from managing cogs to cultivating corpuscles.

Organizational structures are highly interconnected, and as we move away from the mechanical concepts of organization they’re becoming more permeable; as such, I think they’re going to be more capable of spreading ideas through affinity, by receptive people as a process of osmosis and by working with the talent connected to their brand, both inside and outside the walls of the organization.

What are your thoughts?

Data and dopamine

data and dopamine small2
Dopamine controls the flow of information in the frontal lobes from other areas of the brain. It is commonly associated with the pleasure system, providing feelings of enjoyment and reinforcement to motivate a person proactively to perform certain activities.

Dopamine disorders can cause a decline in neurocognitive functions, especially memory, attention, and problem-solving. Reduced dopamine concentrations in the prefrontal cortex are thought to contribute to attention deficit disorder. Without enough positive experiences, the reach and the action potential of dopamine as a neural transmitter becomes limited.

I mention this because behavioral science and economics hold some possible answers to questions about how can we improve the efficiency of resources and quality of care across public and commercial services, and for many the answers can’t come soon enough.

In the midst of public spending cuts and ongoing recession, the burden of management of government agencies is magnified. It may become potentially overwhelming. The need exists to find new ways to free up resources, to work together on the continuous improvement of local communities, to create more efficient and collaborative gain.

Couple this burden with a disengaged and increasingly cynical public constituency and it’s enough to generate a severe social dopamine shortfall, however. There are already signals of cognition and engagement diminishing, of collective problem-solving running the risk of impairment. Many people neither know nor care about what potential exists in their communities and the benefits of local management beyond their own doorstep.

And it’s in this context that the lively, warmly welcomed and stimulating session at the London’s DataStore Workshop (@londondatastore) happened on Saturday, a great initiative led by Emer Coleman and the GLA Data Team and facilitated brilliantly by Paul Clarke. (Thanks to Emer too for the pictures used here).

GLA’s Help Us Free London’s Data #londondata discussed the why’s and how’s at the heart of a more open approach to data, what it might take to make it happen and a great bunch of intelligent people gathered to get the ball rolling. Alongside the hmg.gov.uk.data initiative, this is a fine approach to shared problem-solving, using data to unlock the hidden value of social communities collaborating in public services and looking at practical data-driven applications that can find new ways to manage them.

Yet the aches and pains of an impasse were evident. Developers are ready to get excited and make things, but the ease and convenience of accessing the data to do it is limited. Local government may dream of a reduced cost of management, but open data opens up risk and well as reward. In this context, to a behavioural scientist, the dopamine is already on a bit of a downslide.

So, what to do? The gap between intended and actual benefit of an initiative like this will be a margin of some measure until data visualizations and the proof points of data applications can inspire imagination, the dopamine required to encourage release of more data, to create a tipping point.

From the GLA and London DataStore’s point of view the crucial audience is the public agencies in London that have problems to solve. As the risk of stating the obvious, they have to ‘get excited and release things’ and, importantly I think, to be given the social capabilities to know how to deal with the consequences.

In Jonah Lehrer’s excellent book ‘How We Decide’, he describes how a real and specific value has been identified at the heart of learning from one’s mistakes and how the process of decision-making starts with fluctuations in dopamine. Errors are internalized by dopamine neurons, and the consequent shortfalls provide the stimulus to realize it. This is an iterative and formative feedback loop.

The dopamine neuron is an urgent and primal pulse. Put it together with data that’s open and it offers opportunity for local community management to improve, to do more with less, in ways that local and public services can benefit from.

At the heart of it all though is a new mindset, where public agencies re-evaluate what they stand for. To be favourably looked upon as adding value in an economically squeezed environment they have to see themselves as facilitators, instead of process managers, they have to have brands that champion their local communities, not themselves, and they need to learn to work like retailers of their local communities and their capabilities by harnessing the power of open data.

The reiterative learning that open data development can provide has the ability to insulate local public agencies from perceived management incapabilities. The creative value of @londondatastore and the developer community can really help visualize the benefits of this.

Navigating the way towards ease and convenience through use of data is a journey and it’s of paramount importance.

Congratulations are due to the whole GLA Data team involved with @londondatastore for the steps taken on Saturday. Now let’s work out where the biggest wins are so that data and dopamine combined can improve the health and function of public services, local community management and get us to the results we need.

Where’s the margin in social media?

Calculator by ansik

Calculator by ansik

This is a guest blog post as part of the forthcoming Somesso conference on leveraging social media for the finance industry in Zurich where I’ll be speaking November 2nd and 3rd.

According to a data from Forbes, Altimeter and Visible Banking, only 5% of the world’s 100 largest hundred banks, 9% of the world’s largest diversified financial groups and 6% of the world’s insurance companies are acknowledged as having a profile in social media.

Financial services organizations face inherent cultural difficulties in engaging with customers because, culturally speaking, protection and security issues determine a vault-like mentality runs like a thread throughout the banking and insurance sectors.

The diversification of risk might support the social network principles of outreach and creating loose ties, but mitigation of risk by financial service organizations is, on the one hand, a strong proposition and reason for product purchase and, on the other, a handicap in forming strong and committed connections. Culturally in the financial services sector, organizations generally tend to be closed, conservative, and analytical skills dominate over empathic ones.

In the social space, affinity is stronger than structure and relationships drive the business model. The automation of transactional value has opened up a new highway for relationships and connections made around soft assets such as purpose and values. Data has never been the whole deal and niche audiences, mass market ones, local and global constituencies alike, can all benefit from your business having a social business design strategy.

In 1997 Times Mirror had an opportunity to buy Ebay, (then Auction Web) for $40m, and passed. Just three years later, Times Mirror was purchased by the Tribune Company for $8bn, and by that time Ebay was worth twice that amount. Ebay created a model where retailing goods became the domain of everyone.

The news and media sector has been radically altered over the last few years by social networks and new file sharing capabilities that, between them, have had the effect of making everyone a journalist and their own curator of information. The Huffington Post now has more unique visitors than the Washington Post. Social campaigning, as has been seen from The Telegraph and The Guardian, create significant social equity and purpose where subscription only models do not. Reputation, as bolstered by network effects, is determining perceived performance and therefore value.

The critical characteristic of the internet is that it challenges traditional sector concepts such as news, health, retail, government and finance, and makes them much more granular and accountable.

So, in this way, ‘news’ has become the domain of everyone. It’s possible to imagine financial services organizations running the ultimate risk of marginalization by peer-to-peer networks and virtual currencies in potentially a very similar way. In that sense maybe social media is itself good insurance by cultivating social relationships and behaviours.

When people can trade independently and individually all around the world, instantly and digitally, traditional currencies can become cumbersome compared to peer-to-peer currencies and social capital. The reputation of all the constituent parts of your organization, from the master brand through to corporate officers and the talent that exists company-wide, and beyond, has value within it. Those formative relationships may be the fuel for your future business strategy.

By offering what Forrester’s new report “Adaptive Brand Marketing: Rethinking Your Approach to Branding in the Digital Age” calls the 4 P’s of adaptive brand marketing – permission, proximity, perception, and participation – it is arguably the formative, adaptive relationships – the currency of social media and social business design – that will enable financial service organizations to become leaner and more agile. That’s worth considering as a significant potential margin on offer.