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Netarchy

III Conference Forum Integrated Governance

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The key is not to reformulate collaboration as something else to do, in addition to other priorities, but as a fundamental means to address all the challenges of the organization

I recently had the opportunity to participate in Lisbon in the III International Conference of the Forum for Integrated Governance that was conducted with the motto of “Collaboration: Impossible Mission”. The initiative had the institutional support of the Ministry of Presidency and Administrative Modernization and the Ministry of Labor, Solidarity and Social Security of Portugal, and was attended by several national and international speakers, experts on the subject of collaboration that shared their knowledge and experiences of collaboration between organizations.

For me it was very gratifying to see the level of consensus in the Forum about the need to seek a new balance between hierarchy as a guarantor of predictability and control and netarchy as the engine of innovation and growth. The reality is that the imperatives of integrated management, necessary for citizen-centered public administration, are not achievable only with the hierarchical, highly centralized and bureaucratic structures that we have built so far.

The social web shows us every day that sharing creates value. But building a collaborative organization is not an easy task and requires a transformative approach to culture, new collaborative processes, and the social technologies that make it possible. And above all it requires the example and unwavering commitment of management. Fostering a culture of collaboration represents a great opportunity for organizations to develop the full potential of people in terms of creativity, initiative and passion for what they do.

Collaboration between organizations at the operational level allows us not only to increase productivity, to make staff work more effective, and to improve organizational communication, but also to enable a new generation of services centered and designed for citizens. Collaboration is not only the way to achieve an integrated governance, but is the basis for open innovation in a complex world that requires, every day more, collective responses. Collaboration in public administration allows us to make a giant leap forward in areas such as relations with citizens, acceleration of open innovation, or the introduction of new one-stop services that make life easier for people and businesses.

Three key elements for collaboration Collaboration is not easy, but it’s worth the effort. In a global world of accelerated changes, the borders of our organizations become liquid and work teams are increasingly virtual, dispersed or multifunctional and composed of members that have not been known in many cases before. Setting up a multidisciplinary team with representation at all levels of the organization to lead a collaborative initiative requires:

  1. Culture of collaboration. Culture is the DNA of an organization and is an essential pillar for any successful collaboration. Collaborative organizations thrive in a culture of openness, flexibility, and shared goals. In a true collaborative culture, people trust each other and share information to better serve the needs of citizens or management.
  2. Collaborative Leadership. The context in which our future leaders have to operate is quite different from what we were accustomed to in the previous decade. Therefore, leadership styles need adaptation. Effective leadership in today’s climate requires flexible collaboration, listening, influence, and adaptability, rather than command and control. For collaboration to be successful, leaders need to be authentic and transparent in decision-making.
  3. New spaces and times for collaboration. The new social technologies naturally connect people inside and outside the organization making possible the emergence of a collaborative culture, where sharing creates value. But it is essential to dedicate new spaces and times that make possible the collaboration without sacrificing the current operational capacity. Organizational duality, hierarchy and redarchy, consists precisely in reformulating collaboration so that it is not “something else to do”, one more element in the list of priorities, but a fundamental means to address all the priorities of the business.

Collaborative leadership model

Collaborative leadership consists precisely in mobilizing others – outside and within our area of responsibility – to achieve understanding and agreement on what needs to be done and how to do it, facilitating the individual and collective efforts of adaptation and developing the new skills and habits necessary to adapt to the new circumstances.

Unlike formal leadership, where authority derives from our position, collaborative leadership is exercised from our personal power and our credibility. It does not originate, therefore, in the position we occupy, but in our proactive action as leaders, based on our passion and compromise, our self-confidence and our ability to take the initiative and lead the necessary changes.

How to make it happen in our organizations ?. Basically responding systemically and continuously to the different challenges, working as a flexible and agile network, outside but aligned with the traditional hierarchy, establishing a coalition guide of change drivers exemplifying the collaborative behaviors and constantly seeking opportunities, and launching new initiatives to capitalize them.

Collaboration is a transformative journey, not an isolated project. Leaders who take the time to instill a culture of teamwork and collaboration will empower their organizations with the speed, adaptability, productivity and innovation required to grow and thrive in a world of accelerating change. And on this journey, you will discover that it is worth the investment, since the collaboration is equally powerful in its ability to support business goals as to frustrate them.

I share my contribution to the event

[slideshare id=71329468&doc=integratedgovernmentjc-170124131456]

Netarchy: The emerging new order in the Age of Collaboration

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“The more power you give to an individual deal with the complexity and uncertainty, more likely to make bad decisions. As a result, today there are very good reasons for companies to try to think beyond the hierarchy. ”

James Surowiecki – Wisdom of Crowds

Here we are again, entering the Age of Collaboration, surrounded by an ocean of information that anyone can handle, creating such complex interrelationships that can hardly manage, and trying to keep up with a reality that every day becomes more transparent , participatory and global. This is no longer a world of things, but a world of conversations.

Today we reflect on the impact of mass collaboration in our organizations and in very unique way, models and key organizational structures that humans use to create and do things collectively.

As we have explained in previous talks, the new era poses particularly complex challenges; challenges traditional organizations are unable to solve. And this is largely because organizations have built are based on a hierarchical model that ignores both the demands and the current possibilities of collaboration.

Finally we have realized that we need to build new, more open, participatory and transparent organizations; organizations that allow us to work together for a collective response-the only possibly to new challenges. But we still need to answer some fundamental questions: What kind of structure should have these new organizations ?, this new structure will replace the current hierarchical model ?, How do we resolve the conflict between personal freedom and autonomy requirements and organizational needs prediction and control ?.

To answer these questions I would like to propose the concept of netarchy, which defines the emerging new order in collaborative organizations. It is a virtually unprecedented term, which so far does not appear in the results pages of Google, but I think it reflects very well the organizational structure can be found in the new networks of collaboration, based on the added value of people, authenticity and the trust. For example, in the communities of free software.

Words are important and, obviously, we need new words to represent the new reality. So I propose that we use the concept redarquía to better understand how it affects the Age of Collaboration our organizations, and to explain how to manage new collaborative processes of value creation. This new concept will also help us better understand the news every day are in the media, and talking about a change of power and authority in our organizations.

In this conversation we will try to explain how this new “redárquica” structure aims to fill the gaps of a hierarchical model, however, will not disappear, but will continue operating to reflect the structure of delegation of authority in organizations, and to preserve the responsibility, decisiveness and accountability.

The hierarchy as the starting point

We all know the concept of hierarchy, and are familiar with it. According to Wikipedia, the hierarchy is the “order of items in a series by value” and “can be applied to people, animals or things.” Entering the context of organizations, we can tune well over our definition: the concept of hierarchy is used to designate the chain of command that begins with the top managers and continues even non-managers workers, passing successively by all levels of the organizational structure.

Therefore, the hierarchy is based on a chain of command order. Through the hierarchy of formal authority relationships between superiors and subordinates they are set, and organizational structure of any organism is defined.

If you think about it, to build the current hierarchical organizations have modeled existing structures, very singularly the army. It is not surprising, since hierarchies, as we understand them today, emerged to solve two key problems of the Industrial Age: efficiency and scalability. Mass production required an army of workers who ordered faithfully fulfilled the orders of their superiors.

But time does not pass in vain, and the circumstances around us have changed. Trouble efficiency and scalability were key to the emergence of jerárquicas- organizations at the time they are no longer central, and have been replaced by new values like cooperation, commitment, transparency, creativity and innovation.

With everything and that, the main problem that we face is that these hierarchical organizations have finished turned into real power organizations. In theory, this power is aligned with the real interests of the organization; that is, the power acts for the good of all. But as institutions have become more complex and opaque, that power has ceased to serve the interests of the organization and, in many cases, has become almost exclusively obey to the personal interests of a ruling caste, as we can see every day through the media.

The need for a new order

I sincerely believe that the mental models that sustain our organizations today are going in the wrong direction. We are not helping to create value. The more we cling to traditional hierarchies, the more we move away from the enormous possibilities offered by the new era of collaboration to create agile and flexible organizations, where we can give the best of ourselves and create economic and social value sustainably.

The fact is that we can not frame the current situation using traditional hierarchical structures, simply because they are pieces that do not fit. Nor can we continue to work on implementing solutions that although they were appropriate at the time, came to solve problems that are no longer core to move forward. The new spaces of communication -the blogs, wikis and social networks are having a real impact on working environments, processes and structure of our organizations. The new generation of Digital Natives learn, process information, innovate, collaborate and do things substantially different from previous generations. Joining our organizations will, undoubtedly profound implications in so far as generate new ways of working and creating value. It is clear, therefore, that we need a new order to meet these new challenges.

Hierarchy and Netarchy

The nest is an imposed order (top to bottom) that establishes the relationships of authority and formal power between superiors and subordinates within traditional organizations. The netarchy, however, is an emerging order (bottom-up) arising as a result of the relations of participation and activity streams generated in collaborative environments.

The netarchy therefore provides an alternative order in organizations. An order is not necessarily based on the power and authority of the formal hierarchy, but in the relations of participation and activity streams that naturally arise in collaborative networks, based on the added value of people, authenticity and trust.

The mere fact collaborate and share as equals generates interactions, proposals and innovative solutions, and allows the transfer activity, naturally, to the nodes that actually creates value for the organization. In other words, the decision does not descend from above, cascading, but emerges from below, the result of partnerships.

The hierarchy has a markedly unidirectional nature: relations occur between two agents, but one of them-the top- asserts its power to impose its vision on the other-the subordinate. In the netarchy, however, relationships are multidirectional, as in a network: the agents relate with others in an open one, and the work is done in a distributed manner, taking advantage of the connections between the different nodes of value generation .

The essential thing is to understand that the hierarchy is based on an order of imposed power, and that the netarchy is based on an emerging order of cooperation; the first one is based on dependency relations and orders in which the upper manages resources, while the second is based on conversations; the hierarchy, in short, is based on rewards and punishments, and netarchy is based on the recognition and esteem of its members.

The netarchy is the structure conducive to solving the complex problems we face, because it is able to approach the problem from a global perspective, in which all actors involved are part of the problem to the same extent that we are part of the solution.

This model assumes that the solution will not come down from heaven, not from the top of the pyramid where the powerful leader is. Quite the contrary. It is collaboration on open networks of all actors that generates new interactions, which brings out all the proposals, and that, ultimately, enables the solution naturally emerges from the bottom up.

Properties of netarchy structures

These, then, the properties that define and characterize the netarchy structures:

– Collaboration. Collaboration is the most powerful way to create value. -the New technology platform allows us to build web 2.0- collective intelligence. Everyone can participate on a voluntary basis, on an equal footing, creating and sharing from anywhere, in a collaborative and global, in trust-based networks.

– Self-management. Each agent has autonomy to make their own decisions, and to manage its contribution to the common interest. The coordination is done by mutual adaptation, commitment and collaboration. The netarchy structure makes it possible that autonomy and control are not antagonistic terms -such as assumed- but compatible and complementary, necessary in the evolution of our organizational concepts.

– Transparency. The transparency of information is the key ingredient, the real key to the emergence of netarchy order. All elements that are part of the network know the contribution of each of the members. The transparency value is the most direct path to achieving the shared objectives.

– Emergency. The solutions are not the result of planned actions from the top of the organization, but emerge naturally from the bottom up, the result of the action of local pioneering efforts and interaction in open networks. Information sharing and collaborative learning network produces a multiplier effect: the individual efforts apparently irrelevant-at various points in the network, arise suddenly very significant changes and innovative solutions to complex challenges facing the organization .

– Consistency. The transparency of networked conversations allows us to maintain consistency and continuity between the vision, mission and values of the organization, always with the commitment put into action. As a self-referenced systems, netarchy structures adapt to the changing environment while maintaining its identity and values. It is what is known as autopoiesis.

– Participation. Leadership and innovation is a task that must be shared by all. All agents contribute in a netarchy. The creation process is participatory, so we can say that the sense of belonging and commitment to action is higher in netarchy organizations.

– Interdependence. All points of the network are connected. What happens in one point of the network affects all other parts of the network. Hence the netarchies structures are aware of social, economic, medioambientales- problems affecting the world as a whole.

– Openess. Unlike hierarchies, netarchies are open structures able to self-organize according to the task. Precisely one of the fundamental properties of open systems is not seeking stability, but the interaction with the environment, so they need a certain degree of imbalance to change and grow.

– Adaptability. Based on feedback or feedback, the netarchy structure is able to adapt continuously, in real time, to a constantly changing environment. Facing the millimeter planning, and “we have always done well here,” the “make it happen” is imposed, the “less is more” common sense and the ability to change quickly to adapt to new needs and new societal challenges.
– Freedom. The greater the degree of freedom, the greater the stability of the organization. We create a netarchy order when instead of hiding the inherent conflicts and contradictions all human relationships, encourage the freedom to express them. With no central control prohibiting local small and constant changes, the structure of the organization allows many levels of autonomy, and contribute to preserve their global stability.

– Trust. There is not netarchy, collaboration and cooperation without trust. In the Age of Collaboration, an organization can only be truly competitive when makes the most of new ways of doing, and new models of collaboration that offers social technologies and this is only possible within a culture of trust, confidence it is essential to generate productive interactions between people and between organizations.

– Learning. Collective learning is a fundamental capability of netarchy structures. To take this step, organizations should encourage courageous conversations, assuming that these talks are a way of learning themselves; They should recognize the mental models that reside behind individual positions; and should facilitate the search and continuous experimentation with new forms, mental models and tools to address future challenges.

Netarchy vs hierarchy complementary structures

It is very important to understand that the emerging new order will not destroy hierarchies. Simply go to complete and improve them, making them more transparent and effective, providing them with necessary to maximize the possibilities of collaboration tools, and providing a system capable of solving complex problems.

It is not, therefore, two exclusive models but of two complementary structures. In fact, hierarchies remain fundamental in organizations when establishing the link between alignment, empowerment and “accountability”. That is because there is no clear decision-making and accountability, can always be taken collectively.

The netarchy order therefore not intended to supplant the power structure and the traditional hierarchical organizations. The netarchy itself is inconsistent, however, with the personalistic and arbitrary use of power, and the use that many people have made hierarchy and bureaucracy for its own benefit.

These abuses destroy value in our organizations. Create unfair organizations and demotivate people. In fact, I think most of the conflicts between netarchy and hierarchy arise in the line that separates those who want to preserve the privileges and power of the bureaucratic class of those who aspire to build a less power-oriented, more just, equitable and sustainable.

This is the real border between neatchy and hierarchy. Which side are you on?

Netarchy manifesto

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We need new words to represent the new reality. The netarchy is the natural organizational structure for innovation in collaborative, open and transparent networks based on trust and the added value of people; organizations that allow us to give a collective response-the only possible, to the new challenges we face.

The progressive breakdown between citizens and extractive elites in power in many of our institutions and political parties in an arbitrary and personalistic way, are jeopardizing the values and principles on which we have made the welfare state and our coexistence during the last years. The more we cling to the hierarchies of traditional power, the more we move away from the enormous possibilities offered by the new era of collaboration to create new organizations truly people-centered, transparent, agile and flexible, where we can truly give the best of ourselves creating economic and social value sustainably.

Reality shows us every day that the hierarchy has a high cost in terms of values, transparency, initiative, creativity and commitment. And since the basic logic such as power- machine he tends to patronage rewarding loyalty, while overestimating the legacy and previous experiences at the expense of innovation and adaptability to new challenges.

Hierarchical structures are failing in their attempts to adjust to a new, more global, complex and uncertain reality. Necessarily we have to rethink how we want our organizations in the future. All indications are that highly hierarchical and bureaucratic structures can not adapt. It is increasingly clear that we need new organizational models for the coordination of collective efforts.

The netarchy is here

“The elites and the dominant structures will be overtaken by new social movements, which based its legitimacy on transparency and trust.” Manuel Castells (2002)

The electoral results of the recent European elections have shown that social netarchy, in the form of new mobilizations and political parties as we, constitutes a specific new social order prevailing in our network society era. This social netarchy emerges as a result of new horizontal social relations and global communication between citizens, who not only express their frustration, they have begun to move from the reality of their daily problems: health, evictions, education, etc. . They have finally begun to be interested in politics and participate in it actively occupying the streets, making opposition and seeking collective and solidarity to the various problems whose solution so far left in the hands of government responses.

The tension of citizens has resulted in a clear disaffection, and this has led to social netarchy, political mobilization to seek solutions to their problems collectively.

Citizens have discovered their power to change everything. Social networking has forever changed the way of doing politics; the social web as a medium for the dissemination of new ideas has a powerful multiplier and as a collaborative platform allows coordination of political action without traditional party structures. And it is this direct involvement of citizens in political action the great hope for the regeneration of our political system.

The new media have the potential to radically transform our organizations based on their own values of social web collaboration, authenticity and transparency. Our young people do not understand the closed and opaque structures of existing institutions and political parties, and wonder, not without reason, why not coordinate the collective effort based on more transparent and open to participation structures as they themselves use every day on the Social Web. For any of our institutions, including the monarchy, the risk of not doing so is becoming irrelevant in the not too distant future.

Netarchy manifesto

The Netarchy Manifesto is a list of ten critical challenges facing our organizations are finding this new balance. Each point of the manifesto draws attention to a specific challenge of the new era of collaboration.

1. More purpose, less rhetoric
In most organizations the reality of their values are not up to their rhetoric. We say one thing and do another. Most companies claim that people are their greatest asset, but the truth is that its primary concern is to maximize shareholder wealth, something unacceptable if we want to mobilize human energy. Young people today want to make your work life that has meaning.

The problem is not in what we say as managers, but in what we do. We talk about giving more autonomy to people, but decisions are taking them a few; We talk to flatten hierarchies, but we have not changed its power structures; We talk about giving more transparency to our organizations, but decisions are still opaque. It is evident that the real problem is not what our leaders say, but in what they do.

2. More cooperation, less competition
Collaboration has become the key to go one step further in the level of productivity of our organizations. It is through collaboration as we implement new forms of work, the breakdown of vertical silos and new ways of relating with customers. So much so that, today, an organization can only be truly competitive if it takes full advantage of the tools and models to the Age of Collaboration provides us.

New media and accompanying mental models allow us to approach customers in a different way and helps us to strengthen internal communication of the organization; It facilitates us to strengthen relationships and commitment to find and retain the talent we need.

Open innovation can only flourish in netarchies organizations based on trust and a high level of transparency between all actors involved.

3. More emergency, less planning
Disruptive to the current environment, experimentation is the new schedule. The real strategy in organizations is not something that is planned, but emerges as a result of experimentation and the search for alternatives in a future that is already here.

And the deliberate planning up to the leaders to set goals and develop plans and strategies to achieve 3-5 years, the emerging strategy arises from every link of the company. The emerging strategy is oriented to respond to change, experiment and achieve the best results with the means available. It requires the company to continuously generate a wide range of hypotheses, test them based on minimum viable projects, scaling the most successful experiments and discard the failed experiments. The emerging strategy is no strategy for prediction, discovery strategy.

3. More trust, less control
Administrative control styles command reinforce the power struggles and an overall culture of paranoia, and although they are designed to ensure a high level of compliance and predictability cost is very high in terms of autonomy, creativity and commitment of the people who form the organization.

The command and control systems reflect a huge mistrust of commitment and skills of employees. The collaboration can only thrive in an environment of trust and transparency, these values are essential to connect people emotionally with the organization.

The lack of confidence and fear paralyzes demoralized. Adaptability, innovation and commitment require a work environment where information is shared, the diversity of opinions can be expressed freely become courageous behavior questions and willing to take risks is promoted.

In the netarchy control is performed based on the transparency of individual contributions and the evaluation other network members make your own contributions.

4. More innovation, less fear
In this new context, we can not base our strategies on a mere continuous innovation of our products and services to ensure their competitiveness in the market. And not only about defending our position in the market; Today it is equally important to explore new opportunities, experience and expand into new markets.

The innovation process always carries a dose of improvisation, so it is important that the organization tolerated, especially during the early stages of ideation and prototyping. It is also important to have creative people, but once the persistent struggle to make things happen despite the internal resistance. It is important to be fault tolerant and emergency work by creating the environment that enables new experiences occur naturally instead of trying to plan and control every step of the process.

One of the great advantages of the netarchy as natural architecture for innovation, is that it tends naturally, as markets allocate resources according to their capabilities and actual motivations, so that people end up in positions of greater contribution to the organization.

5. More influence, less power
The need to prepare for a digitized world has highlighted the need for new leadership models. In the Age of Collaboration the new role of the leader as a social architect will find the necessary balance between the needs of organizational productivity and purpose needs of people.

This new type of leadership is exercised on the basis of influence, authenticity, personal credibility and the added value that the leader brings to the community, and not the ability to accumulate positional power.

The netarchy is directed by real leaders, people with ability to energize and expand the community rather than manage it from above, which requires a great capacity for personal credibility to connect with the collective intelligence of the organization, mobilizing and coordinating human efforts.

6. More community, less borders
The Social Web enables us to participate, create and learn collaboratively in open and trust-based structures. The boundaries of our organizations are becoming liquid. Decision processes must be free of bias, and should take advantage of the collective knowledge of the entire organization.

Functional “silos” do not add value to the organizations and the traditional organizational pyramid should be complemented by an emerging netarchy where the status and influence correspond to the added value and contribution to the community. New business models increasingly rely on informal networking, collaboration in mass production and ecosystems that cross organizational boundaries.

7. More transparency, less opacity
The Age of Collaboration is grinding at an accelerated rate, and forever, the curtain has always hidden the reality of organizations from public view. However, there are still few companies willing to accept and manage this new scrutiny. For most, transparency is a costly and disruptive element that threatens its survival.

Transparency is a new force that is unfolding, now, profound changes in all areas; changes that will ultimately affect the future viability of all organizations so.

The netarchy has found us a crucial aspect: the validity of our reputation and value proposition of our organizations is “just a click away” as never before, customers and users of our services, which can reach a decision, positive or negative, instantly.

8. More dialogue, less enforcement
“The market are conversations”. This phrase, repeated endlessly by hundreds of converts, and that is the basis for understanding how customers are changing, still sounds new to many organizations. Customers want to talk to real people, with face and eyes that really represent organizations, not that they shout in my ears as it does traditional advertising.

In a netarchy we can all participate actively in discussions with our colleagues, our customers, and our suppliers. Only then will we know what to do and what to stop doing; what new products and services our customers demand; and what kind of organizations should be designed to attract and retain new digital talent. It is these conversations that allow us to develop collective intelligence and create economic and social value.

10. More netarchy, less hierarchy
The social web does not show every day as the media make it possible to coordinate human effort without sacrificing creativity and passion of the people. And at the same time make it possible to open new organizations where ideas can compete on equal terms, people can contribute in areas that interest them, the authority is consistent with the value that brings to the organization and leadership and innovation is everyone’s job.

While the hierarchy has the scalability to our organizations, the cost has been high in terms of initiative and creativity. Today, thanks to social technologies there is an alternative: the netarchy.

Every day new organizations can scale without a hierarchical and centralized monitoring management arise in the Social Web. New social technologies allow us to address the great complexity without hierarchical structures, which makes us think that in the not too distant future we will be able to overcome the historical paradox of management between control and confidence. We will be able to build scalable and efficient organizations without incurring the high cost of centralized bureaucracies.

Prepare our organizations to address the future needs to provide them with very similar attributes to the ones we see every day in the social web. The netarchy as emerging new order in our organizations is not based on the power and authority of the formal hierarchy, but in the relations of participation and activity streams that naturally arise in social collaboration networks, based on the added value of people, authenticity and trust.

The netarchy as a complementary structure to the hierarchy and not necessarily exclusive, makes possible new frameworks for contribution in organizations, not necessarily linked to positions of power and authority in the organization, but to the credibility and value of people. The netarchy if incompatible with the arbitrary and personalistic use of power, and the use that many people have made the bureaucracy for its own benefit. These abuses destroy value, create unfair organizations and demotivate people.

In fact, I think most of the conflicts between netarchy and hierarchy arise in the line that separates those who want to preserve the privileges and power of the extractive elites, those who aspire to build a less power-oriented world, more fair, equitable and sustainable.

This is the real border between netarchy and hierarchy. Which side are you on?