Monday, August 31, 2009

COLLABORATION … AN ELEGANT NEW ORDER WITH LEGS

Recently I crossed paths with a series of articles, books, blogs and business strategies that are causing me to explore the concept of ‘collaboration’ and the notion of “elegant organizations” across several businesses. Participating in an industry driven by competition there seems to be an ambitious allure regarding the potential for business development through the strategic utilization of ‘collaboration.’ This blog is by no means an exhaustive expose of ‘collaboration’ or its potential within your life; and thus I invite your comments and elaboration of its potential. Also, I admit from the inception that the topic or concept is not new; but that does not dilute its value. Regardless the model of ‘collaboration’ offers tremendous potential in the ‘new economy’ that is currently unfolding, and thus is worthy of our consideration.

By this time you are probably familiar with Facebook (everyone reading this blog is affected by members of the 250 million active Facebook users) and to a lesser degree stories about its founder, Mark Zuckerberg. One such story, or possibly myth, is that while Zuckerberg was at Harvard and working to create Facebook, he was unable to attend one of his art classes – allegedly he was unable to attend a single class the entire semester. When it came time for the final exam, Zuckerberg realized that he was going to flunk the class, unless he pulled a ‘rabbit out of his hat.’ So he emailed all his classmates a picture of the various artists discussed during the semester, with a blank text box below each artist’s picture. The tag line along with the email stated that Zuckerberg was organizing a study group for this class and was inviting each of them to participate. This invitation prompted his classmates to fill in each text box with the pertinent information about each artist. Zuckerberg shared all the responses in a series of follow-up emails. Each of the narrative responses were edited by the classmates, until consensus was reached on the pertinent information about each artist. The result was that Zuckerberg and each of the participants (classmates) had concise accurate information about each artist studied in class from which to study. The punch line as you might guess was that Zuckerberg ‘aced’ the exam and passed the class. But the real value was that afterwards, the professor acknowledged the class as a whole performed better on the final exam than any previous class for the same course. Ah, the true value of collaboration in a world that values competition (in an environment graded on a curve), this counter-intuitive model represents the clearest path to realizing each of our professional dreams.

Granted this story is duplicated on a small scale all the time - students gathering to share their class and study notes. That is at the heart of the model though – communities already exist everywhere, but our opportunity is how we organize and utilize these communities for the collective benefit of each of its participants. I challenge you to think beyond … look around you and open yourself to the potential of true collaboration that exists everywhere. I recently picked up a copy of BusinessWeek and the cover story is entitled “The Radical Future of R&D, It’s a New World of Collaboration Across Corporate and National Boundaries.” One of the featured articles (titled “Big Blue’s Global Lab”) describes how IBM (yes, Big Blue) is committed to its largest R&D venture. The basic premise is founded upon creating “radical collaboration partnerships with outside companies, countries, and industries as an essential part of its research” into new technologies that will form the basis of future products and services. You think they are alone … think again … Hewlett Packard, Proctor & Gamble, Eli Lilly, Microsoft, Google, and several other mega-corporations and governments are doing the same thing. Collaboration is all around us, borne from necessity, opportunity, and an array of other reasons that form the basis of a new economic reality (for a different perspective of this new reality – see this KPMG video).

So what does that mean for the small business owner, entrepreneur, or mid-level manager struggling for survival. Each moment is stretched by how to find the next dollar to pay the never-ending stream of bills (fixed overhead – the “atoms” of our effort). Jeff Jarvis suggests in his book “What Would Google Do” that “small is the new big”; and Chris Anderson recommends in his book titled “The Long Tail” to “get small but think big.” Get small … we are small, so now what? Financial, market, time, resource, operational limitations, egos, business visions, etc., provide just a few, albeit significant, road-blocks preventing serious consideration to how ‘collaboration’ could work in a tangible way. Well really … in these times … with the rate of technological and economic change can you afford NOT to consider this model? That is why this model is “counter-intuitive” because for every reason one could think not to consider collaboration and the creation of “elegant organizations” IS the very reason in support of its creation!

Ask yourself a few questions. What business are you in (may not be the obvious answer)? Is your business built on scarcity (basis of competition – if so, take heed the power of the internet is but around the corner), if so, ask how you might manage and exploit abundance? Where is your real value (what is your value proposition)? Who is your ‘customer’ (no really who is your ‘customer’ think expansively – think in terms of every ‘touch point’ in your process)? How do you uniquely serve or anticipate your customers’ needs? Look around you … what do you see? Look at the existing communities you serve. Consider the communities around you – how do you enable them to talk; enable them to share what they know or need to know; enable them to support each other; and enable them to do the ‘business of business’? How can you create a ‘platform’ of services (and or products) that invite your ‘customers’ to sit alongside you to design or co-create services that fit the space they are in at this moment (fill their need as they define it, not as you define their need to be – ah yes, there is the real resistance point – the old economic model is based upon ‘control’, fear, and hoarding)? I think you get the idea.

Ok, so you have asked yourself the questions and are comfortable with your answers … now what and why (I’ll leave the “how” to other blogs and business pundits). The easy answer to the “why” will vary for all of us. In a future blog with the help of a case study involving a networking group (Long Beach Business Professionals Association) and your feedback, I will explore the “why” and possibly the “how.”

The seed of opportunity for forward thinking individuals, networks, communities and companies is NOT one connection, one prospect/lead, one idea, or one deal (as promoted by your typical networks, communities, companies and lead generation groups, i.e., Tippers, LeTip, etc.); but in a collaborative effort involving all its members and all its ‘customers.’ The germination of a ‘community’s’ (defined broadly) potential is held within the notion of leveraging the ‘whole of its parts’ for the exclusive benefit of every person or entity that interacts with the group. I would challenge you to explore how to co-create a ‘service platform’ that enables respective ‘customers’ (defined broadly) to define how to use the service to get what they want, when they want, and for a price that is more competitive than what could be found outside the ‘platform’ (another concept gaining momentum in the blog world is “zero-based budgeting”). In this model, the aggregate whole is greater than the sum of its individual parts, without any prospect of losing each member’s individual identity or diluting individual brands.

The ‘platform’ will take on a dynamic life of its own allowing the group to LISTEN to everyone who ‘touches’ the ‘platform of services.’ As people contribute to the ‘platform’ as either members or customers it enlarges the database (data points) providing better market information and greater access to prospects, products, services and ultimately opportunity. A collaboration of services combined with valuable content that is constantly evolving will add value to the ‘platform’ resulting in greater opportunities for everyone.

The notion of collaboration is a methodology of organizing a community’s knowledge so that the existing community can better organize itself. Creating a network of sub-communities that reach deeper into a community will have more impact and add real value, and therefore offer an array of revenue opportunities along the way for its contributors. But to get there the ‘platform’ will need to “act small but think big”, and view the world with a different lens (from abundance instead of scarcity). Jarvis challenges us in “What Would Google Do” to “release all information bottlenecks and make all touch points more fluid. Stop trying to make money by interfering in transactions.” When I thought about these two statements it struck me as counter-intuitive to conventional business models – old line businesses are structured to create bottlenecks, and then to take financial advantage – i.e., make a transaction more complicated so that you can be the ‘expert’ that clarifies the mess. A model based upon competition and scarcity allows the Internet to shed a different perspective upon it by encouraging collaboration and abundance – and there IS both the flaw (existing models) and the opportunity (for a new model).

We need to ask ourselves what is the world we wish to create and participate in? Personally, the old business model (based upon fear of scarcity) holds no allure for me; and the new order’s call for change is scary being an outsider looking in, but leaves me little choice. So as a dear friend emphatically encouraged me on my trip back East … “just engage, just get in the game Jim.”

I hope you enjoyed the reflection, and take the time to consider how these questions and evolving business models present significant opportunity for each of us. Most of all I hope you make it a GREAT day and week!! If you wish to read all the other Monday Morning Mojos written for you, then visit: http://mondaymojo.blogspot.com. As always, I welcome and encourage your feedback and your reflections (please don’t hesitate to share your thoughts with me). If I can be of service to you or your friends, please let me know. And, thank you for your continued support and inspiration … each of you are a cherished gift that enriches my life in ways you will never understand … Thank you!! Jim Peys

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