Stowe Boyd, Editor

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Tuesday
17Nov2009

The Rise Of Networks, The End Of Process

The industrial influence in business management and theory is profound. In essence, for the past hundred years business has been objectified as a machine, divided into various components, like a clock or an electric generator. Components are composed of subcomponents, and so on, until you get down to nuts, bolts, and flywheels. People are -- in the industrial scheme of things -- gears in the machine, and their purpose is to perform a defined role in the assemblage.

This is the unexamined premise of how many businesses are 'designed' -- to the extent that they have been consciously designed, instead of unconsciously shaped by decades of 19th and 20th century management dogma. First, the rise of assembly lines, vertical integration, and the rise of business processes. Then, the emergence of new communication technologies (telephones, email, web), that spawned the reengineering and knowledge management patterns of thinking about business, each with fatal flaws. 

And now the social web is happening, and acting like a solvent on these business constructs: not just superficially, or metaphorically, but at the very core of industrial beliefs. Note: this isn't just a bunch of humanist rhetoric: the social society is exploding, and new ways of interaction that were unaffordable or impossible before are not only cheap and possible but being adopted widely because of a long list of reasons, not the least of which is simplicity and effectiveness. People are thronging on social sites like Facebook and Twitter because they are a straightforward way to stay connected with others, and this in turn shapes our worldview.

As these new realities percolate in the open web and in the new web-influenced culture, people carry these experiences into the world of business. Indirectly, based on their experience in the open web, which leads them to consider how the social tools could work in the business context. And more directly, some pioneers are dragging social tools into the business context, and seeing where it all goes.

And some, a few, are trying to think through a new model for business, reconstructed around what we have learned in the open web, balanced with what we know about the conduct of business. A new hybrid, intentionally devised to keep the best of the old (or at least the parts that will still work) and fuse that with the new, social models that dominate the web revolution.

From a social viewpoint, the architecture of business seems all wrong. People aren't really designed to do one thing, like a cog in a watch. They have various relationships with other people, and through these relationships they have influence on the work going on all around them. They are not alone, like a moth in a bell jar. We are not alone, in our work. Even the most repetitive of work -- screwing bolts on an assembly line, or delivering the mail -- happens in the context of other people, and is made more valuable by their exertions.

Increasingly, people's work is being viewed as a shared aspect of social relations. Time is a shared space, where we cooperate toward shared ends.

One casualty of this large-scale shift in business doctrine may be the hallowed business process. The notion of a process -- a defined series of steps in the production of goods or the delivery of services -- subordinates individuals to the their roles in the process.

For decades, business planners have made a distinction between repetitive, lock-step processes, where very little variability is involved (think pharmacy), and more free-form, unstructured processes where a higher degree of variability is expected (think emergency room). Taking the abstraction of a process out of the world of chemistry, manufacturing, and logistics, and treating the people involved as so many chemicals, gears, or trucks seemed like a good idea in the past, but is not going to be workable, going forward.

We will have to devise a new, richer way to think about people's interactions -- via social networks -- and our connection to mechanical processes and devices. In effect, we will need to model work with two layers, one where people are communicating with each other in a very fluid and flexible way, and machinery communicates with us and other machinery in less fluid ways. Some of these communication paths will be very limited, like a copier blinking to represent it is out of paper. But increasingly, even machinery is becoming much more communication-rich, and the way that machines respond to the world is surprisingly humanlike: coke machines that signal their internal state, like temperature, and the fact that there are only two Sprites left, or cars that will automatically start to brake if they sense no hands on the steering wheel.

More importantly, the customers in the emerging social world will have new expectations about their role in business 'processes' and may be significantly less willing to be treated like pigeons pecking at levers in exchange for pellets. Consider the Jetblue customer snowstorm service disaster of a few years ago, or the not-so-subtle pressures of a discerning public leading to higher and higher levels of customer support based on the ability to gripe online, and to rally widespread support, like Jarvis' Dell Hell campaign.

We will still get some value out of thinking through business models structurally, and choreographing steps in production or the delivery of service. But the sophistication of machines and customers means that more and more of the steps will have a wider range of alternatives, which leads designers to have to focus more on putting the right information into people's hands -- both workers and customers -- than minimizing choice. For example, provisioning checklists for various well-understood medical procedures -- like putting in an IV -- supports medical practitioners in tense situations, and increasing the likelihood they will not omit a simple step when hurried. This has lead to significant decrease in infection and other side effects. However, it does not seek to replace the interaction between the doctor or nurse and the patient. Instead, the checklist makes it easier for the practitioner to use the time available to learn more about the patients status, because they are freed from having to recall from memory the appropriate six steps in establishing an IV.

But the major shift here is conceptual. Processes, like the IV checklist, will still be with us, but they will have a lowercase 'p', and be understood as being secondary to higher business priorities, like the humane treatment of the medical patient, or the rights of travelers, or the need to superachieve customer satisfaction with consumer electronics. These goals will always trump the rote step-by-step rules and roles of a inflexible business process. Connectedness should always take precedence over efficiency, especially where the efficiency comes at the cost of customers, but even in the interactions between workers, the process should be secondary to the strategic principles of the firm. And, in the final analysis, this is the final evolutionary step away from the excesses of industrial management thinking, into a social way of structuring work.

Reader Comments (7)

In the last paragraph I think you're missing a big point when you say that "Connectedness should always take precedence over efficiency."

The real visionaries will find ways to make connectedness drive efficiency.

And regardless of the impact of Social Media, if a business process does not roll up to the objectives of an organization, it should be retooled or ditched.
November 17, 2009 | Unregistered CommenterJohn Meadows
Excellent points Stowe. I admire the eloquence with which you framed this post. This topic really resonates with me, although I have never articulated my point of view on this as well as you have here.

I believe that what we are seeing with all of these new social tools is really the start of a new way of conducting business. The whole game has changed, not just the marketing and communications, or even customer service fields. The constant feedback loop can and should introduce a whole new way of relating to the market. Customer service is nice, but smart companies will use the intelligence that's available to them to make quick changes (including product changes when appropriate), not just try to make people happy with what they are producing today.

The whole business process is becoming more fluid, and successful businesses must adapt and relate to their employees, customers, vendors, etc. in a more personal way. I liked the point you made about a new hybrid being devised intentionally that brings the best of the old systems together with the new social models - this is a critical point. The companies that embrace this concept and work from a place of intention (not reaction) will be the big winners in the future.

Thanks for the inspiration!
November 17, 2009 | Unregistered CommenterBrandon Sutton
Very interesting Stowe! You are absolutely right on that much of what we have been trained to blindly accept as "the way business is done" is fallout from the industrial revolution. Its just always been that way... but maybe not much longer.

Reading this post gave rise to two questions, or maybe a question and a comment, as I was reading.

First, if we could design business today without the preconceived limitations of how you do it "the right way," how would it look? Would we even have office buildings? Would cities with historical prowess in given areas (eg New York for finance) retain that position?

Second, this change is definitely coming along with the generational change in business leadership. Our youngest workers today, the 20 somethings fresh out of college and ready to tackle the world, don't understand a world without text messaging, email on your phone, even 24 hour availability by phone. To try to work without them is foreign and painful to them.

As they rise in the ranks... or maybe better yet, start new ranks... their influence will accelerate the shift away from the industrial age organization toward this networked organization. Us old fogies just need to hand on!

Another awesome topic, thanks so much for sharing!

jtrigsby
November 17, 2009 | Unregistered CommenterThom Rigsby
Well stated post on the importance of practical wisdom, and relationships in the world of business. I completely agree that people, their relationships, and their ability to judge, understand, and adapt a situation (and the tools available) is something that will allow a business to be more flexible and capable of doing more with less. (A powerful business model with today's personal climate of increased 'connectivity'.)

The difficult part to this in my mind is measurement. While I agree that it is an evolution in how we look at business the act of measurement has remained the same for countless years. Profit is being profitable and measured via numbers which have not really changed.

The advantage (and I am open to suggestion otherwise) in my mind of a process (especially those with a capital P) is that it allows for measurable, expected, and easily reproduced results. Ad hoc processes (or lower case processes) would fundamentally be more difficult (and thereby much more costly?) to measure. This makes it more difficult to make decisions. We make effective decisions based off of information available to us. The more accurate the information, and the more information we have the better our decision should be?

What are your thoughts on this? In my mind collaborative decision making with capital P driven information often leads to the best result. Perhaps social wisdom or new methodologies for measurement and reproducing results are how we match this powerful benefit of capital letter processes?

Thank you,Richard Harbridge
November 17, 2009 | Unregistered Commenterrharbridge
Thanks Stowe, I became very enthusiastic in the beginning but then that diminished a bit - not sure it will end process

I think the Rise of Networks will be An End To Kingdoms, we'll go tribal again. Not the company logo or revenue counts, but the (outstanding) people in it. People will be (a major part of) its brandIt will radically change leaders and the notion of leadership, ye olde Roman nepotism is out the door (I do so very much hope).

Haven't been thinking yet about radical changes to business...

From what you're saying, looks like part of that big (to become smaller) process P is going to People. That would mean that business gets more standardised at the lower level, so we can just automate it and leave unattendedWhich would mean it would be (more) fun to work! And also, to "consume" (maybe we can reinvent that word while at it)

Maybe it's about an End To Workflow?

Martijn Linssen
November 17, 2009 | Unregistered CommenterMartijn Linssen
Great insights from Stowe and everyone in this thoughtstream.

A series of posts (including this one) inspired me to write up a prompt - "Is Twitter A Complex Adaptive System?", and a lively discussion has ensued in the comments area over on the Emergent by Design blog.

Please join the conversation and add your thoughts, and feel free to connect with me in the twitter hive @venessamiemis

http://emergentbydesign.com/2009/11/17/is-twitter-a-complex-adaptive-system/
November 18, 2009 | Unregistered CommenterVenessa Miemis
Nice post. Some of your statements fit well with Thomas Davenport's findings on how knowledge workers get their job done (Thinking for a Living).Coming from a technology background, I am somehow amazed at how business process management suites (BPM) go exactly against this trend - they focus on trying to model the process in a structured way - while people continue to use email and documents as their preferred way to get their work processes (with a little "p") done.
November 19, 2009 | Unregistered CommenterJacob Ukelson

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