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copyright © pattianklamdotcom 2007
Skills for Net Work
Patti Anklam Value Network AnalysisWorkshop
Saint John, NBMarch 20, 2007
copyright © pattianklamdotcom 2007 2
We live in a networked world
Collaboration – networking – is the means of survival for small business owners
It takes “net work” to collaborate There are tools that support net work Today is about
Understanding networks Learning some tools Moving into action
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The properties of networks
Purpose The complexity of work in today’s
world is such that no one can understand – let alone complete – atask alone
Structure Patterns Texture
Style Place, pace, space of activity,
growth and leadership Value-producing mechanisms
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We are all in networks, all the time
Aid and support people, environmentCreate economic
gain for stakeholders
Generate and collaborate in
creating and using ideas
Practice-focused learning and personal development
Nurture emotional and affiliative relationships
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How about your networks?
How many? What roles do you play in each of them?
Peripheral or core? Leading, contributing, or listening? Active, proactive, reactive?
What value does eachprovide you?
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Exercise (3 minutes)
List your networks Characterize them by type
Count ‘em up Questions?
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What is a network?
“An interwoven or interrelated number of things…” American Heritage Dictionary
Things: computers, neurons, transportation hubs, cells, organizations, companies … and PEOPLE
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All networks share certain properties
They can be drawn Relationships among nodes and links can be
analyzed: Counted, summed,
averaged Patterned, grouped,
segmented Fred
LynnLynn
Dylan
Lee
SalSal
CoryCory
Nodes
Links
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Different types of network may need different structures and styles Team networks
Closely knit, focused on purpose Organizational networks
Sufficient brokering mechanisms for cross-functional and cross-business synergy
Innovation networks Diversity Links to external resources
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The network view provides access to managing a network’s context You can design a network
Selecting appropriate elements of purpose and style You can discern its structure
Through self-diagnosis or examination You can create or respond to change
By understanding the network’s context and its properties
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Different perspectives create different views: ONA Organizational network analysis (ONA)
Often referred to by more generic term, SNA (social network analysis), an emerging competency among businesses and nonprofits
View of personal interactions among individuals in a network
A senior VP, the VPs reporting to him, and their reports understood when they saw this map of their interaction frequency, that they were not as collaborative as they prided themselves on being.
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Different perspectives create different views: VNA Value Network Analysis (VNA)
Pioneered by Verna Allee, a rich methodology View of the transactions among actors in a networked
ecosystem
A senior VP in the professional services arm of a large telecommunications equipment provider said that it was “scary” that the customer feedback from the delivery of services went only to the operational arm of the company and not the organization charged to innovate in service development.
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Different perspectives create different views: Industry Network Mapping Industry network mapping
Based on work by Laurence Lock Lee and others using data mining
Strategic view of the relationships among companies based on detection of partnerships
A map of the number of announced partnerships and alliances among IT systems integrators and IT providers illustrated the centrality of integrators like Accenture and HP, but also showed a potential opportunity for CSC.
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Maps can be derived from many sources
Using entity extraction from diverse search engines, for example Factiva
Generates links based on Announced partnerships and alliances
See http://www.orgnet.com/inetindustry.html for an interactive version of this map.
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Different perspectives create different views: Mapping complexity Mapping complexity
Dave Snowden’s application of complexity theory to human systems and problem-solving
Select appropriate actions based on the domain in which an opportunity or problem occurs
Routine procedures can be managed using known methods; complicated problems can be approached by experts; in the complex domain of human relationships and actors, comprehension occurs only in retrospect. Any event or context can shift – or be caused to shift – from one domain to another.
OrderedRoutineKnown
MultiMulti--dimensionaldimensionalScientificScientificKnowableKnowable
MultiMulti--relationalrelationalAlways changingAlways changingUnpredictableUnpredictable
DisorderedUnfathomable
Simple
ComplicatedComplicatedComplexComplex
Chaotic
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Understanding of complexity provides a practical guide to managing context You can’t manage a network, you can only manage
its context Slight alterations in the structure can create
significant change over time But you must first look
to understand thecontext
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Organizational/Social Network Analysis
Introduction and Exercise
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Definitions
A mathematical and visual analysis of relationships / flows / influence between people, groups, or organizations – Valdis Krebs
A targeted approach to improving collaboration and network connectivity where they yield greatest payoff for an organization – Rob Cross & Andrew Parker
ONA uses and builds on the methods, tools, and practices of social network analysis (SNA)
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Network maps provide insight and prompt questions Knowledge flows along
existing pathways in organizations.
To understand theknowledge flow, find out what the patterns are.
Create interventions to create, reinforce, or change the patterns to improve the knowledge flow. I frequently or very frequently receive
information from this person that I need to do my job.
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Who’s using ONA?
Petroleum & heavy industry partners Communications and information technologies Pharmaceuticals Consumer goods Financial services Government agencies Military NGOs and nonprofits Consulting firms …
Business Week, February 27, 2006
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Methodology for ONA – “Full” Network
Understand the context Collect data – surveys, interviews Analysis
Visual Mathematical
Interpretation Action
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Analysis typically shows up distinct patterns
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•Colors indicate geographic regions•#25 is the network leader•#14 is due to retire next year
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The purpose behind ONA:If you can draw it, you can re-draw it Imagine the network as you want it to be
Take the actions you need to make it so Make connections (“weave the net”) Close the triangles
A
C
B
A
C
B
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C
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Personal (“ego”) networks
Nodes that have direct ties to an individual node and the connections among those nodes
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Exercise (10 minutes)
Review your list of networks to which you belong Select one On a clean sheet of paper, make a hub-and-spoke
diagram with yourself in the middle Draw out to nodes who are the people in this
network that you interact with To the best of your knowledge about their individual
interactions, draw links among these people
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Value Network Analysis
Introduction and Exercise
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What is a value network?
A web of relationships that generates economic or social value through complex dynamic exchanges of both tangible and intangible benefits.
Any purposeful organization or network functions as a value network
- Verna Allee
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ValueNet Works Analysis
Developed by Verna Allee originally to benchmark extremely complex re-engineering projects.
In use since 1993 in global corporations, government, and civil society organizations.
Refined for knowledge economy and scorecards 1997 (as reported in Digital Capital, Tapscott, 2000).
Used at large and small companies (Cisco, HP, Boeing, Chevron, Pac Bell, AT&T, Sun, Eli Lilly, MWH, Environment Canada, Australian Red Cross, tech startups, manufacturing).
Also being utilized by several mostly Geneva based global change networks (GRI, IUCN, ICTSD).
Used by European Commission to evaluate multi-billion Euro research investments.
© Verna Allee Associates
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Compared to other methods —
Value Network Analysis Based on living systems
theory. Shows whole system –
people and processes. Puts people at the center
of the action (not process). Shows business and
and intangibles exchanges. Links to corporate metrics. Fast and robust – works at
multiple levels.
Process Analysis Based on industrial age
production line. Linear, sequential,
mechanistic. Puts process at the center
of the action (not people). Shows business
transactions. Works at multiple levels. Slow and cumbersome
when complex.
Organizational Network Analysis Based on human
dynamics. Focus is on people. Shows social relationships
and interactions. Shows communication &
knowledge flows. Does not show business
processes. Emphasis on “snapshot”
more than dynamics
Both!Process People
A whole-system view shows how all the processes and people work together.© Verna Allee Associates
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>KnowledgeStrategic information, collaborative design, planningknowledge, process knowledge, policy development, etc.
>Benefits or FavorsBenefits that go beyond actual service such as exchanging business contacts, image enhancement, recognition, co-branding opportunities etc.
The molecular level of value is the exchange.
Intangible Exchanges
Tangible ExchangesGoods, services, revenue (traditional value chain).All contractual or mandated activities that directlygenerate or deal with revenue.
© Verna Allee Associates
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COMPANYCUSTOMER
OR END USER
Basic elements for mapping value
Personal Responses
Feedback for Product Development
Sense of Community
Online Services
Fee for Service
Loyalty
Exchange
Participant
Deliverable
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Currencies for exchange
Financial Goods and services Intellectual
Human capital Structural capital Relationship capital
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Determining what’s important
Copyright © 2004 Rhythm of Business
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Example: not-for-profits tangible exchanges
tangibles are exchanges for financial value
GREEN = Tangibles
Educators
Funders
SchoolDistrict
TechnologyCompanies
Students
Classes
ITLiteracyProject
Salary
Curriculum
Software
CourseMaterials Funding Funding
Venue
Time
Funding forSalaries
ProgramPlanning
Instruction
Coaching
Hardware
EquipmentMaterials
Skills
ProgramFulfillment
Report
ClassReport
ProgramPlanning
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Example: Not-for-profits intangible exchanges: knowledge and benefits
Educators
Funders
SchoolDistrict
TechnologyCompanies
Students
Classes
ITLiteracyProject
Salary
Curriculum
Software
CourseMaterials Funding Funding
Venue
Time
Funding forSalaries
ProgramPlanning
Instruction
Coaching
Hardware
JobApplicants
BrandLoyalty
ExpandedCurriculum
Prestige
Passion
EquipmentMaterials
SkillsCompany
Connections
BrandImage
Prestige
ProgramFulfillment
Report
ClassReport
Recognition
Recognition
Recognition
Recognition
Prestige
Prestige
EmployeeSatisfaction
Volunteers
Feedback
Satisfaction
ProgramPlanning
GREEN = Tangibles
BLUE = Intangibles
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ValueNet Works™ Methodology
Analyze the patterns andprocesses for creating value.
Map the key tangible andintangible value exchangesbetween the Participants.
Analyze cost / benefit ofevery value output for eachParticipant to increasevalue outputs.
Identify the Participants
Identify key Participantsand stakeholders forcreating value.
Conduct a cost/benefitanalysis of every valueinput for each Participant.
Describe the Deliverables
Exchange Analysis
Impact Analysis
Value Creation Analysis
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Mapping Exercise (20 minutes)
What is the value network for this event?
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Summary/DeBrief
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Net Work for Collaboration
The role of leadership in net work
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Net Work for collaboration
Network intentionally Practice network stewardship Embrace technology Create the capacity for net work Use the network lens and net work tools to enhance
the lives and contributions of individuals and the collective power of the network
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Network intentionally
Network weaving: “know the net; knit the net” “weave the net”
Personal network management
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Enhance collaboration by changing patterns Create connections
Randomly Mindfully Between individuals and across groups
Increase the flow of knowledge Technology, events
Discover connections Create more trusted relationships Correct impedences
Overly central people or bottlenecks Increase diversity
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Embrace technology
Leverage technology to discover networks See if you can use ONA to uncover barriers to use
of technology Encourage the use of technology
Blogs Wikis RSS Referral sites (e.g. LinkedIn)
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Create capacity
Reward good network behaviors Encourage outreach Bring the outside in Teach networking skills in
on-boarding programs
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Use the “network lens”
If it’s a network, you can draw it. Pick up your pencil
If collaboration is really important, and is not happening, then net work tools can help you dig deeper.
It only takes one big “aha” in an analysis to alter the context for collaboration
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Skills for Net Work
Patti Anklam
Net Work: A Practical Guide to Creating, Leveraging and Sustaining Networks at Work and In the World
Elsevier/Butterworth-Heinemann 2007
copyright © pattianklamdotcom 2007
Value Network Workshop
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Value Network Analysis process
Identify the network Identify the participants Understand the roles Distinguish tangible and intangible
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Identifying participants
Stakeholders Who cares that the network be evaluated? Why are they concerned?
Purpose What does a successful outcome look like? What is the scope?
Participants Who are the actors in this network? What roles does each person or group play?
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Understand the roles in the network
A role is not necessarily the same as a group, company, or function One person or group might play 2-3 key roles Roles are different from job descriptions
If people are not clear about their roles, they can miss value-creating opportunities and are vulnerable to competition
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Identify value exchanges and interactions Consider these participants in the value network
Customers Partners Providers of services Regional agencies
What value (contractual and non-contractual) does each provide? What value does each receive?
What is the quality of intangible exchanges or interactions in these relationships?
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Let’s do the map!
Mapping (60-90 minutes) Review map Action steps
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Verna’s principles
In a network, the center is where you are.
You cannot administer a network you can only serve it.
You cannot fight a network with a hierarchy.
Intangibles build real relationship.
What’s required for success:
Autonomous agents who can make decisions, negotiate, and initiate independent action.
Shared purpose, values, and norms of interaction.
An understanding of the whole system and what is needed for its health, vitality and success.
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Increasing Prosperity
Intangible assets are the real wealth of individuals, organizations, and nations.
The network perspective supports a dynamic whole-system view of wealth and value creation for every type of purposeful organization.
With this view we can more deliberately generate the true wealth that marks true prosperity and success – and that makes life worth living.
The capacity to honor the collective consciousness and to act on behalf of the whole is truly the work of the next 100 years.
– Alan Briskin
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