Complex Knowledge managing order and un-order

1. Complex Knowledgemanaging order and un-order Oslo September 2004 Dave Snowden Director of the Cynefin Centre

2. Agenda • The Cynefin Centre: post IBM • Order & Un-order • The landscape of management • The false promise of best practice • Social Network Stimulation

3. SOCIAL COMPLEXITY It’s development and application of in the context of organisations and their environment OPEN SOURCE Creation of an open source movement for consultancy practice and theory based on complexity principles EMERGENT RESEARCH Development of trans-disciplinary research based on emergence, participation and co-evolution SENSE MAKING Distinguishing different types of system and thereby enabling the appropriate application of methods and tools NETWORKS Understanding issues of human identity and interaction in their natural state and the stimulation of new networks NARRATIVE Gathering, interpreting, representing and creating the narrative forms that pattern human interaction The Cynefin Centrefocus and application areas

4. Un-order from mono-cultural exploitation Nature of the system to multi-cultural exploration Order Rules Heuristics The way we intervene The landscape of management Mathematical Complexity Axelrod, Kauffman Social Complexity Stacy, Cynefin ProcessEngineering Taylor, Hammel Systems ThinkingSenge, Peters 2004 IBM Report to the European Commission

5. Complex Un-order C&E coherent in retrospect Hidden Order C&E discoverable ProbeSenseRespond Sense Analyse Respond ActSenseRespond SenseCategorise Respond Chaotic Un-order No perceivable C&E Visible Order C&E obvious The Cynefin Framework

6. The Cynefin Framework Complex Un-order C&E coherent in retrospect Hidden Order C&E discoverable Worst Practice Good Practice Novel Practice Best Practice Chaotic Un-order No perceivable C&E Visible Order C&E obvious

7. Traditional scientific method has always been at the very best 20-20 hindsight. It’s good for seeing where you’ve been. It’s good for testing the truth of what you think you know, but it can’t tell you where you ought to go. Robert M. Pirsig. Zen and the Art of Motorcycle Maintenance(1974)

8. Social Network Stimulation • Social Network Analysis - individuals • Shows the relationships between individuals in an organisation in respect of information flow, explanation and trust • Presents it in a graphical form identifying hubs (people who route knowledge), outliers (who are not engaged) etc • Major issue – dependent on honesty of individuals in response to questions about their interaction with boss, subordinates, colleagues etc. • Problems if more than about 150 people in network • Social Network Analysis – identities • Replaces “individuals” with “identities”: roles/job function, significant individuals, archetypes, formal and informal communities this overcoming some of the issues about honesty • Shows the dynamics of interaction between formal and informal and critically the inter-dependencies. • Results have show the critically of informal communities to form opinions, enable innovation, handle basic knowledge flows and resolve problems. • Handles size restrictions

9. Social Network Stimulation 1 of 2 • Context • SNA indicates the way the network currently works, SNA is designed to create a network based on designed principles • SNS focuses on creating cross silo communities • Informal networks normally form over three to four years based on multiple social interactions as people move jobs, work on projects, attend courses etc. It is ah hoc, unstructured and unplanned (other than formal mentor programmes which have similar objectives). • The three elements of an SNS • An intractable problem – something that its difficult to get a grip on and/or for which traditional approaches have only been partially successful • A patronage reward – something that is normally only achieved through “being visible” to senior management. Examples include access to senior management development programmes, sabbatical periods, rights to attend conferences, promotion etc. • A set of boundary heuristics which define the different silo’s and related criterial such as demographics across which interaction needs to take place

10. Social Network Stimulation 2 of 2 • How it is designed • Demographic and related data is captured from the organisation • Discussions take place with senior executives about the nature of cross silo interaction required • Simulation models are built based around various rule combinations for team formation (2 people from unit X, one person with less than three years service etc) deduced from the discussions • The simulation model is run and the rules modified until a set boundary heuristics are identified which are (i) easy to understand and (ii) maximise cross silo network formation • How it runs • The programme is announced to the population as a bottom up initiative linked to the objective (for example innovation in customer service) • The basic proposition to the population is “if you can form a team based on theis heuristics that can resolve the intractable problem then your team will get the patronage reward. • Team formation is faciliated by techniques related to speed dating and hiring fares, supported by software on the organisations network • Programmes run for 2-3 months ideally although this is variable

11. Social Network Stimulationbenefit statements • Bottom up within top down design • Identifies those individuals in the organisation capable of assembling a cross silo team to solve intractable problems (a useful complement to competence modelling for leadership etc) • Finds novel or original solutions that would not be visible to senior or middle management • Increases the probability of novel solutions at lower cost than traditional solutions (normally done on people’s own time or within minimal time allocation) • Can be a powerful indicator of the openess of management to ideas emerging from the “shop floor” • Can be focused on creating networks outside the organisation for example with key clients, or consumer groups.

12. Social Network StimulationApplication areas • Post merger integration • Outsourcing (as a special case of the above) • Innovation Programmes • Integrating key staff in major customers with the organisation at various levels • Resolving internal competition issues • Product Development • Cultural and Organisational Change • Sustainable knowledge management & lessons learnt programmes – including community of practice creation • Several other things that we have not thought of yet

13. Social Network StimulationCost indicators • SNS is normally sold in two stages with a “get out” clause at the end of stage one • Stage one – design • Progress through to the model and full roll out plan at which point a decision can be made • The simulation model is a valuable output in its own right as it shows the sensitivity of the organisation to different starting conditions • Cynefin consultancy cost in the order of 5-6 man days assuming some work is done by the client team • Academic cost (simulation models are produced by a leading British University) in the order of £10-15K depending on nature of organisation • Stage two – implementation • Costs similar to stage one, with academic cost halved to monitor development.

14. The Cynefin Centrethe danger of existing patterns Nasrudin found a weary falconsitting one day on his window-sill. He had never seen a bird like this before. ‘You poor thing’, he said, ‘how ever were you to allowed to get into this state?’ He clipped the falcon’s talons and cut its beak straight, and trimmed its feathers. ‘Now you look more like a bird,’ said Nasrudin. From IdriesShah The exploits of the Incomparable Mulla Nasrudin & The subtleties of the Inimitable Mulla Nasrudin. Octagon Press, London 1985