Harnessing the Power of Informal Networks |
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Change Management Monitor Ehin's theme, in both this book and his previous Unleashing Intellectual Capital is that humans have an inbuilt tendency to self-organization (derived from our hunter-gatherer origins) and that great benefit can be derived from harnessing this power. However, self-organization does not flourish in hierarchical organizations. He offers a prescription for 'unmanagement' through which self-organization can flourish and its inherent power can be harnessed. |
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Preface The purpose of this book is to shed light on the seldom “explicitly” accessed interactive triad of organizational success factors—self-organization, social capital, and tacit knowledge--from an in-depth human nature perspective. I believe that once people grasp the fact that individuals and groups are constantly self-organizing and that the process can’t be strictly controlled, they will be able to design enterprises that are able to support the formation and functioning of these emergent systems unobtrusively. Knowing how to access and leverage these powerful forces will give any organization a much greater prospect to succeed in the turbulent Knowledge Age global landscape. |
Author Interview Why did you title the book Hidden Assets? To what are you referring? Why another “management” book with so many others on the market? The primary focus of the book is on the very dynamic yet “invisible” day-to-day activities of organizations where ironically more than 70% of all work is accomplished in the first place. These invisible activities take place among and between all sorts of informal social networks that are not and cannot be controlled by traditional management schemes. They are also not found on any financial statements. Thus, most of the primary assets in any organization (for profit or non-profit) are “hidden” and can only be “harnessed” by what I call “unmanagement.” Essentially, the book is more about life in general than just management. Hence, nothing like Hidden Assets has been published to date. How did you develop the general conceptual framework for the book? Over the years as I developed into a more experienced—maybe even wiser—manager and academician I became convinced that there was much more to dealing with people and organized endeavors then what was prescribed in hundreds of business books and management pundits. Hence, in writing Hidden Assets my intent was to dig down into the very foundation of human nature and reveal the “messy,” constantly changing and elusive or emergent (self-organizing) side of management that is particularly pertinent for the current knowledge economy. Today we’re beginning to accept the fact that management is not an exact science nor is it “neutral” from value judgments. We also have paid scant attention as to who we are from a biological perspective. That is, human nature is as much about genetics as it is about learning and life experiences. Therefore, I wanted to devise a very general and non-prescriptive framework for dealing with these elusive yet extremely potent human factors. Most management researchers it seems try to avoid or bypass the intricacies of such organizational realities as informal social networks (present in all social systems) because they involve so many dynamic variables that make it extremely hard to prove a proposition with all sorts of fancy statistical routines. That’s why I believe that the general ideas in management haven’t advanced very much in the past 100 years or so. The majority of people simply don’t like to deal with messy things. They prefer concepts that come in nice neat packages. Unfortunately, the real world doesn’t work that way. My quest for new answers began roughly 20 years ago which culminated in the writing of several articles based on my initial findings and the publication of my first book, Unleashing Intellectual Capital published in 2000. In the mid 1980s I regularly taught an MBA elective class called Philosophy of Management that basically dealt with the history of “management thought” up to the present. I eventually became dissatisfied with the sources for the course because they only went back to the beginning of written history. Mankind obviously had been around for much longer than that which led me to research in anthropology and then eventually to other fields such as evolutionary biology/psychology, molecular biology, paleontology and the neurosciences. I also became quite interested in chaos theory and self-organizing systems. In Unleashing Intellectual Capital I laid down the fundamentals for my general conceptual framework for true management or “unmanagement” needed for the Knowledge Age or the 21 st Century. Although self-organization entities or emergent social systems were the center-piece for the models that I developed for the book, I failed to drill down deep enough to reveal the basic dynamic components of self-organizing systems that are the basis for most human interactions and organized ventures. As I continued my interdisciplinary research certain additional concepts/factors of informal groups/systems began to materialize and became less fuzzy which then lead to the writing of Hidden Assets. What are the central concepts/factors in Hidden Assets that make the work so unique yet practical and powerful? Essentially what I have done is to pinpoint and show the dynamic relationships of three primary factors that are the foundation of informal systems present in all social groups including businesses. These interdependent factors are comprised of self-organization (free flowing or unmanaged emergent dynamic systems), social capital (informal support networks that individuals and groups develop over time), and tacit knowledge (the unspecified knowledge individuals and groups accrue through experience and working together with more knowledgeable individuals). Each of these factors has been separately written about previously, but no one has shown the synergistic power that emanate from the interplay of the forces within this triad. The catalysts for the interactive events among the triad of organizational success factors in my suggested system are the genetic- and experience-based elements encompassing human nature. Few people to date have “dared” to factor in genetics when developing models for organizational change and renewal. The reasons for that reluctance are clear-cut. The deep-seated characteristics of genes affecting human behavior were not well understood at the turn of the last century. As a result, false deterministic evolutionary concepts like Social Darwinism and Eugenics were espoused and eventually taken to the extreme by the Nazis. The knowledge of certain basic features of our genetic tendencies can help us develop organizational contexts that openly support emergent systems instead of pushing the continuously evolving informal networks underground. Such an accommodating framework will allow the power and synergy of the triad to be fully accessed. Accordingly, with an array of interrelated models, I demonstrate how such an organizational context, I call a shared-access system, can be developed. As expected, the core of a shared-access system is comprised of the voluntarily unleashed energy of the triad or “hidden assets.” However, very little about my fundamental conceptual framework is prescriptive. That I leave to voodoo doctors and other clairvoyants. How does a for profit or non-profit organization implement your recommended system? First, one needs to cultivate “no bossing” leadership. I define no bossing or shared-leadership as, “Helping others to initiate or participate in worthwhile activities that they are either not aware of or are hesitant to take action on their own, which would benefit everyone involved.” In essence, anyone can and should periodically assume a leadership role depending on the given situation. Real leadership has nothing to do with position power. Second, an organization needs to make sure that it has assembled the right people. For that reason finding and retaining first-rate people that “fit” into a shared-access endeavor is essential for four major reasons:
It should be remembered that no matter what the situation may be people will develop informal networks on their own initiatives. Thus, you want to assemble the right mix of people so that the emergent outcomes are sound, meaningful and positively focused. Why are the concepts delineated by you in Hidden Assets of such importance in the present day and beyond? In the 21 st Century, knowledge is the key source for wealth creation. Therefore, in order to succeed, our social institutions need to abandon the Industrial Age mind-set and learn how to leverage the hidden triad of organizational success factors. We no longer can afford the luxury of continuing to ignore that humans have evolved to function quite well without all sorts of superimposed structures and motivational schemes. Hence, unmanagement, not the further refinements of hierarchies, will help us to better deal with the uncertainties, complexities, and perpetual change in the years to come. In every social system tremendous levels of vigor and ingenuity are poised to emerge, needing only the proper organizational context to be fully activated. Regrettably, most administrators either ignore these hidden assets because they can’t be controlled and “formally” accounted for or they are simply oblivious of the large dormant resources going to waste all around them. Worse, both types of managers are most likely working with an Industrial Age mind-set, trying their best to keep refining the hierarchy and wondering why they’re having little success. In order to fully unleash the hidden power and wealth of the “real” organizational success factors, an institution must shift its overall framework from a hierarchy (flat or tall) to an open self-organizing system. Thus, the new system should, like an amoeba, have formwithout a rigid structure and attain cooperation of its activities voluntarily without all sorts of supervision and control mechanisms. It’s not an easy process, but one can only imagine the long-run benefits a venture can achieve striving for that goal. Previous interview questions: What are the hidden assets in the workplace to which the title of your book refers? How do these assets relate to business effectiveness? Describe a shared-access system as defined in your book. What does this suggest about traditional leadership within an organization? Organizations wanting to tap into their hidden assets need to move from hierarchical configurations to increasingly voluntary collaborative arrangements I have defined as shared-access systems. This involves inviting self-motivated people to join the enterprise, supporting individual and team autonomy, developing a shared cultural identity, embracing a challenging but agreed-upon vision and practicing no bossing or shared leadership. I define shared leadership as, Helping others to initiate or participate in worthwhile activities that they are either not aware of or are hesitant to take action on their own, which would benefit everyone involved. True leadership has little to do with organizational position power. Shared leadership is emergent and dependent on specific circumstances. Shared-access enterprises by design are self-managing arrangements founded on the dynamic power of informal social networks because new ideas cannot be forced out of people. Shared-access systems are by no means perfect but given the choice, most humans would prefer to work in such environments. How can people get the book or find more information? |
Hidden Assets Review Hidden Assets is the thinking individual’s guide to better relationship management in the work environment--and other areas of life where one is willing to take action. In the book, author Charles Ehin analyzes a broad spectrum of disciplines, including archeology, psychology, molecular biology, neurology and paleontology, to name a few. He uses this analysis effectively in illustrating the book’s thesis: That all systems exhibit Self-Organization; that individuals create Social Capital among their work groups; that Tacit Knowledge is shared in these groups--and that these three factors are interdependent. This is a novel triad, and Ehin applies it to the traditional knowledge-based work environment. How does this relate to business effectiveness? Plenty, as you observe Ehin unfold complex ideas and academic research and offer concrete, usable solutions on improving the way we organize our businesses. The work is groundbreaking in its attempt to quantify the large body of assets (social capital and tacit knowledge) hidden in the networks of organizations where most work is actually accomplished. The book is filled with examples of owners and managers failing to understand these hidden assets in their organizations. Ehin accurately identifies the cause: many mangers still rely on an Industrial Age framework. This brings to mind a manager who still has knowledge-age employees punch a time clock in the financial services industry. No doubt readers will think of former and present managers doing things “by the book,” and they will chuckle with Ehin at the absurdity of this management style in today’s dynamic environment. Ehin’s research unearths numerous points that will surprise the reader. Mergers, for instance, fit neatly into the Industrial-Age model. Eighty percent of mergers fail to produce the intended results. Over one-third of mergers produce negative results. How is this possible? Certainly captains of industry have at their disposal reams of data, and the mergers must look good on paper. But they haven’t read Ehin’s book and sometimes fail to understand where the real assets are within their organization and in the knowledge-based economy. There are many gems in these few pages on how to “manage” in the knowledge age. Keep working groups to 150 or less. Make certain that a closely knit functioning group has an inordinate array of positive personal ties among its members. Add partners and not mercenaries. Generate commitment, not compliance. All together, this work constitutes a code-breaking of certain mysteries in the world of management. It will be interesting to see how well our managers understand. In summary, the book offers simple and practical applications for management. Well researched and full of useful examples, it’s written in a positive and optimistic tone and will give readers a great resource to use in both work and personal life. Ehin is the consummate uncle figure in tendering excellent, easy to understand advice without giving a lecture. Everyone can learn valuable lessons from Hidden Assets. This is a book to be read and referenced again and again. Michael Matheson, Northwest Regional Director Lockwood Advisors |
Hidden Assets Endorsements This is an incredibly powerful and insightful work (as I have learned to expect from Dr. Ehin over the years)! I was amazed by how similar my current entrepreneurial experience with Infopia resembles what Ehin has so vividly discloses in Hidden Assets. He presents an easy to understand framework around principles I have experienced first hand, but have never been able to make explicit. The book is a must read for all entrepreneurs since it de-mystifies the management of change and the fear of loosing control. An extraordinary book! Professor Ehin has “drilled down” to the very essence of human social existence. In the process he’s developed an organizational framework for the knowledge economy that will help to unleash the productivity and commitment of knowledge workers. The practical principles he presents apply not only to the workplace but also to families, schools and social life in general. Finally, a real breakthrough in management theory and philosophy. In Hidden Assets Ehin breaks the mold of current management thinking and presents a comprehensive and practical framework specifically designed for the knowledge economy. For the past quarter-century, leading thinkers in fields ranging from neurobiology and cellular mechanics to evolutionary psychology and organizational behavior have found themselves increasingly stepping on each other’s toes, or--more elegantly--approaching consilience. With his first book, Unleashing Intellectual Capital, Charles Ehin emerged as a leading interpreter of the commonalities in these diverse disciplines, showing managers how they can be applied in the organization to boost performance. Now, with Hidden Assets, Prof. Ehin solidifies his standing as a breakthrough management thinker, and he delivers the goods managers need to make their organizations thrive in the new century. I met Charles Ehin for the first time at the Air Command and Staff College where he taught management and systems analysis and where we also played intercollegiate soccer together. On and off the field Charlie demonstrated that he was an out-of-the-box thinker and a real team player. After his 20 year stint in the US Air Force he became a brilliant scholar in the university world. Now he has taken all of his varied experiences, fine abilities and years of research and produced a marvellous book, Hidden Assets. It is an absolutely must read for everyone interested in ’truly’ modern and effective management. A fascinating eclectic work! Ehin is a “Renaissance Man” who has taken the latest research in multiple fields and developed a breakthrough system for administering new age organizations. What if significant organizational change was possible without changing the formal organizational structure? What if an organization had untapped knowledge that would make change a natural consequence of working together? These are only two of the many possibilities explored in Hidden Assets, a well researched and written masterpiece. Definitely a ‘must read’ for all leaders and management scholars. Where was all of this when I needed it??? Over 40 years of management knowledge, experience, and tools packed into one book!!! What an incredible jump-start into a management career found in one quick-read work!!! Ehin's well written, thought provoking, and enlightening book presents a compelling evolutionary argument about the fundamentals of human nature and demonstrates how best to manage 21st Century organizations where knowledge is the key factor for success. Finally, a book with practical implications showing how to leverage the power of ‘invisible’ social networks where most of the work is accomplished in the first place. Well done! Intellectual capital? Empowerment? Employee involvement? These have sadly moved from pop buzzwords to unused clichés. But Charles Ehin argues, successfully, that—when fully understood and fully implemented—these concepts still hold incredible power. Hidden Assets is a convincing book about the payoff any manager can yield if he or she is willing to release the potential that already resides inside the company and the people who can make it go faster. Much faster. Dr. Ehin's book not only uncovers our Hidden Assets; it creates a comprehensive model for maximizing the creative power of individuals and organizations. This is more than a theoretical issue—it is a practical policy that can protect our position in a global economy. By integrating insights developed by various disciplines, Dr. Ehin clearly identifies ways that companies - and countries - can restore and protect the competitive edge that is produced by the creativity and commitment of their workers. A groundbreaking work. Ehin unveils the “mysteries” and shows the practicality of tapping into the invisible yet extraordinarily powerful forces present in all social systems that can’t be managed in the traditional sense. Finally, someone who understands companies and organizations and their place in our society without complex management formulas. |
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Copyright© 2000-2005 by Charles Ehin. All rights reserved. |