The Culture of Collaboration

Malcolm Gladwell: Measurement Methods Killing Creativity and Innovation

Malcolm Gladwell is about to turn talent recruitment and development upside down. Last Monday at the American Society for Training and Development 2008 International Conference and Exposition in San Diego, I talked with Malcolm about his forthcoming book.

 

Outliers: Why Some People Succeed and Some Don’t tackles everything from college and graduate school admissions to organizational performance evaluations. An outlier is a statistical term meaning a significant deviation from the mean. The book, which will be published in November, is based largely on the work of David Galenson, an economist at the University of Chicago. For more on Galenson’s work, read the story entitled “What Kind of Genius Are You?” that Daniel H. Pink wrote for the July, 2006 issue of Wired.

 

Gladwell’s point is that there’s a disconnect between methodology for evaluating people and individual talents. He’s wary of efforts to predict performance and suspicious of set timeframes to perform. “We’ve become obsessed with this notion that everything can be measured with numbers,” Malcolm insists. “It’s a cultural fixation.” While law schools are obsessed with LSAT scores, Gladwell notes, studies show that people who are admitted with lower scores show no difference 20 years out than those with high scores.

 

Gladwell uses the artists Pablo Picasso and Paul Cezanne to illustrate two key types of people. Picassos succeed quickly and often peak early, while Cezannes are typically late bloomers who rely on technique and process and make incremental advances to build a body of work over time. “A late bloomer gives us something you can’t get from a precocious artist. The work is much more powerful and has deeper depth,” says Gladwell. The HBO series, The Sopranos, took three seasons to catch on, Gladwell notes, but ultimately the show developed a deeper level of emotional connection with the audience. This is because HBO is willing to carry a portfolio of under performers; the network realizes the potential for a long-term winner among them.

 

At the ASTD conference, I engaged Malcolm about organizational culture, and he agreed that culture plays a huge role in how people are recruited and evaluated. Organizations are clearly comprised of both Picassos and Cezannes, but there is also a collective approach that favors one style over the other. Particularly relevant to collaboration is Malcolm’s use of the U.S. vs. the Japanese auto industry to illustrate his point.  I have written extensively about how collaboration has created substantial value for Toyota and how people throughout the organization provide input into decisions, which are made slowly and carefully. Toyota focuses on incremental improvements over time and building long-term value, a Cezanne approach. Malcolm notes that Detroit-based automakers traditionally rely on big, bold ideas like the SUV and muscle cars. This is more Picasso-like.

 

The problem is that measurement and evaluation usually favors Picassos over Cezannes. Organizations value the sprinters over the distance runners and too often sideline people who develop deeper depth over time. Innovation and productivity suffer, because key resources are wasted. This will evolve as organizations become more collaborative, harness talent in all its forms and realize the limitations of a single performance template. Enron selected top performers and pitted them off against each other through “rank and yank.” This created a culture of fear rather than one of collaboration. The company had little tolerance for Cezannes. Look where Enron is now—bankrupt.

 

Incidentally, Malcolm’s Wikipedia entry notes that he was an outstanding middle distance runner in high school…

Washington Times Understands The Culture of Collaboration

Many traditional media outlets have difficulty understanding collaboration. Newspapers, magazines and TV networks are typically steeped in star culture and embrace competition. So the notion that collaborative culture is changing business models and the nature of work leaves many reporters and editors scratching their heads.

Last Sunday, however, The Washington Times showed that it’s head and shoulders above most other traditional media outlets when it comes to understanding collaborative culture and the future of business. For a media outlet to capture the essence of collaboration, the reporter and his or her editor need to be on the same page—collaborating, if you will. Clearly, this occurred at The Washington Times. The paper selected James Srodes to review The Culture of Collaboration book. You can read the review here. Srodes, a veteran business writer, is well-suited to understand the value of collaboration. He is the former Washington bureau chief for both Forbes and Financial World magazines.

According to Srodes’ web site, he is also the biographer of Benjamin Franklin, auto industry maverick John DeLorean and Allen Dulles. Dulles served as the director of central intelligence under U.S. Presidents Eisenhower and Kennedy. Currently, the intelligence community is working on adopting a more collaborative culture.

In The Washington Times, Srodes writes:

“Where once there were chains of command, flows of information (and power), central locations and memo buck slips of Talmudic complexity and obtuseness, technology has made it possible for diverse creative and managerial teams operating in locations around the globe to work simultaneously on projects that bring better, cheaper, more effective products on line at an accelerated pace.”

At the end of the review, Srodes notes that the culture of collaboration “may be the most exciting business development since the assembly line.”

Venture Capitalists Investing in Semantic Web Deals, Enterprise Social Networking

As social networking permeates our collective culture, enterprises are demanding more business-oriented tools to support social networks.

At the Dow Jones VentureOne Summit in Redwood City, California on February 26 attended by venture capitalists and entrepreneurs, the sessions and cocktail hour hummed with talk about collaboration. One particularly compelling panel addressed “Consumerprise: Just How Will Consumer Technologies be Utilized by the Enterprise.” The panel, moderated by Emily Westhafer of Dow Jones,  included Antony Brydon, founder of Visible Path; J.B. Holston, CEO of Newsgator; Ajay Gandhi of BEA Systems and Peter Rip of Crosslink Capital. Participants discussed why many senior leaders of Fortune 1000 companies are interested in a “Facebook for the enterprise.”

Applications for enterprise-oriented social networking tools range from finding and collaborating with experts to increasing informal social interaction among colleagues. This, in turn, can break down barriers and enhance collaboration.

Despite their interest, many organizations are barring external social networking connections. This will evolve as the control paradigm wanes and organizational culture catches up with the tools.  Companies in many industries have found that collaborating with business partners can create incredible value.

Peter Rip noted that his venture capital firm is looking for investments beyond Web 2.0 and is interested in “semantic web” deals for startups that focus on intelligent structuring of information. The idea here is that machines rather than people should handle more mundane tasks involved in finding, organizing and sharing information and that Web-based applications should understand what individuals want to know.

In his book, Weaving the Web: the Original Design and Ultimate Destiny of the World Wide Web, Tim Berners-Lee describes his 2-part dream for the Web’s future. The first part is that the Web becomes a more powerful way for people to collaborate. This is clearly happening. The second part is that “machines become capable of analyzing all the data on the Web—the content, links, and transactions between people and computers. A ‘Semantic Web’ which should make this possible, has yet to emerge, but when it does, the day-to-day mechanisms of trade, bureaucracy, and our daily lives will be handled by machines talking to machines,” Berners-Lee writes.

However, semantic web start-ups, says venture capitalist Peter Rip, must fit their solutions into the economic problems of the enterprise. This may sound obvious, but too often start-ups push solutions to enterprises without considering how the tools fit work styles, culture and enterprise initiatives.

The Culture of Collaboration Wins Gold Medal

I’m delighted and honored that The Culture of Collaboration has won a gold medal in the 2008 Axiom Business Book Awards. The awards are sponsored by Inc. Magazine; Padilla, Speer, Beardsley; and the Jenkins Group. The Culture of Collaboration won the gold medal in the International Business/Globalization category.

The award is by no means an individual achievement. Few things are. The names of over a hundred collaborators appear in the book’s acknowledgments. Also, The Culture of Collaboration reflects the work of the publisher, editors, book designer, cover designer, web designer, graphic designer, and printing professionals.

The awards event is Monday, March 10 in New York City.

Networking and Collaboration

Networking with people who share your interests is often the first step to effective cross-organizational collaboration, but staying in touch with people after conferences and trade shows is by no means automatic. The first step is a system that makes contacting people easy. I have blogged extensively about presence, which is the ability of a person or device to communicate with others and display levels of availability. IM has introduced us to presence. But what about people we meet at conferences whose information is on business cards rather than in a database? Echoing the classic 1995 book Being Digital by Nicholas Negroponte, it’s a challenge of turning atoms into usable bits.

I attend many conferences, and I usually end up with a pocket full of business cards, some with notes on the back about conversations and follow-up items. While I make and receive calls and exchange email with some of these contacts, I rarely find the time to manually enter the information from every business card into my contact database. There is, however, an effective solution.

I’ve been using an incredibly-useful product that automates business card data entry. CardScan Team combines simple and intuitive contact management software and a sleek business card scanner with the ability to share the database with colleagues on a network. I scanned a stack of cards, one after the next, and processed the pile in a couple of minutes. CardScan Team efficiently recognized name, email, phone numbers, fax, address, URL and other information and placed it in the right fields instantly. The software is smart enough to know that there are many ways people indicate phone numbers on cards including “p” or “tel.”

I assigned a customized category with the name of the conference so that I could easily query the database for all of the contacts I met at that venue. CardScan Team displays the front of each business card and provides the option of scanning the back. The software also enables users to export the data to Microsoft Outlook. CardScan Team had trouble with only one card in my stack that displayed some fiery red text, but the software let me easily make a couple of quick changes to the data. CardScan Team, which costs $399.99, synchronizes with mobile devices. The product also includes secure data back-up and password-protected access to that data via a browser.

CardScan Team enhances collaboration by letting us share contact information with colleagues in real time and by dramatically decreasing the time and hassle factor involved in keeping in touch.

Creating Wealth Collaboratively

Collaboration is central to creating wealth. Contrary to the myth our star culture perpetuates, people working collaboratively achieve greater success than individuals. While some individuals may walk away with the lion’s share of the spoils, it takes a village to create their wealth. I’m glad that in his excellent page-one story in today’s New York Times headlined “The Richest of the Rich, Proud of a New Gilded Age” Louis Uchitelle includes steel baron Andrew Carnegie’s philosophy of wealth creation. You can read the story here.

The story compares Bill Gates, Warren Buffett and other billionaires with the super wealthy of yesteryear. Perhaps the most interesting aspect of the story is that it quotes David Nasaw, author of the book Andrew Carnegie as saying that Carnegie believed “individuals do not create wealth by themselves.” This, according to Nasaw, was fundamental to Carnegie’s gospel of wealth. In Carnegie’s view, the community creates wealth and individuals like him are simply trustees of wealth. Therefore, Carnegie gave most of his wealth back to the community in the form of libraries, museums, cultural centers and foundations.

Carnegie’s philosophy applies today to how companies create value. As I describe in The Culture of Collaboration book, companies in a variety of industries are achieving impressive results through collaboration. Among the organizations included in the book are Toyota, Boeing, The Dow Chemical Company, BMW, Industrial Light & Magic, DreamWorks Animation, Mayo Clinic, and the Myelin Repair Foundation. In each of these organizations, star culture takes a back seat to collaborative culture.