The Culture of Collaboration

Abandon Herd Mentality to Avoid Post-Digital Dark Ages

There’s a dangerous—and convenient—misconception that collaboration is about stampeding with the herd. The misconception is convenient, because often people in organizations and neighborhoods figure out which way everybody’s running, and they follow suit. This tendency leads to mediocrity at best and can poison teams, organizations, industries, the economy, and our collective culture.

 

In contrast, collaboration often requires constructive confrontation, one of the Ten Cultural Elements of Collaboration that I identify in my book. Rather than running in a pack, we can—through collaboration—come together in real time and hash out issues, improve processes and create better products and services.

 

Unlike collaboration, herd mentality is choking off innovation and ingenuity, two cornerstones of the collective culture and consciousness particularly in the United States. Running with the crowd created the dot com bubble, the real estate bubble, mortgage crisis, and arguably fed Bernie Madoff’s Ponzi scheme.

 

In much the same way the herd embraced and artificially ran up dot com stocks and real estate and plunged the world into a deep recession, the herd is now embracing the downturn with abandon. Media, legislators, regulators and stakeholders that were complicit in the dot com and real estate bubbles are now condemning the behavior they embraced. It’s easy to pile on, but where were these voices during the run up and creation of these unsustainable bubbles?

 

In San Francisco, every day I see a couple of more empty storefronts on my flight path. And it’s the same story in New York. I was walking up Madison Avenue several weeks ago, and shuttered stores lined many blocks. People I know who eight months ago insisted on following the herd to the latest trendy restaurant are now eating take-out tacos or microwaving macaroni and cheese, even though they can well afford to eat in restaurants. Being cheap now propels the herd, so the herd is feeding the recession rather than a recovery. John Maynard Keynes, the economist, called the tendency to hoard rather than spend the paradox of thrift. His point, while controversial, was that unnecessary savings during a recession ultimately lowers savings because of the decrease in economic growth.

 

Businesses faced with a credit crunch are slashing research and development budgets, cutting the meat rather than just the fat, and jeopardizing their futures. With bad economic news monopolizing computer screens, the downturn is feeding on itself.

 

The period between the fall of Rome in the fifth century and the early Middle Ages in the tenth century is often called the Dark Ages. It was an era marked by cultural decline, ignorance, lack of enlightenment and societal collapse. The course on which we are headed as we follow the herd to avoid risk, innovation and investment is towards what I call the Post-Digital Dark Ages. While fiscal prudence and frugality make good business sense even in boom times, many companies are sacrificing long-term opportunities for short-term concerns.

 

A Chevron spokesperson recently told me that the company has a dearth of people in their 40’s, because Chevron imposed a hiring freeze for ten years in the 1980’s and early 1990’s. The idea was to cut costs, but that strategy provided short-term benefits with long-term repercussions.  The ultimate result is a talent and knowledge gap.  As experienced team members retire, there is a lack of people with long-term institutional knowledge to replace them. Chevron wants to avoid a similar situation in this downturn and will reportedly continue recruiting regardless of short-term economic concerns.

 

Exigent circumstances provide an opportunity to collaborate, think creatively, innovate, and create incredible value. But opportunity must be seized! The downturn is undeniably an exigent circumstance. Rather than succumbing to the herd mentality, we must reject a Post-Digital Dark Ages and engage and challenge one another to define and refine common goals, innovate, reinvent, invest for the long-term, and pave a path towards economic recovery.

 

We now have access to tools and technologies that we could only dream about during previous downturns. Our challenge is to use these tools to strengthen rather than undermine traditional values of innovation and ingenuity. We must harness a range of real-time and asynchronous collaborative tools plus same-room collaboration to enhance real relationships sustainable in person or at a distance. As we build trust, we must strive to improve shared ideas through constructive confrontation and broad input regardless of level, role or region.

 

More broadly, we must change the conversation from doom and gloom to growth and recovery. Let’s change our approach from hibernation and indecision to collaborative action. People are hibernating, because of across-the-board cost cutting and management edicts banning many necessary business expenses. The result is that team members are lying low, unable or unwilling to perform necessary functions. Therefore, management’s attempt to improve balance sheets is actually leaching value out of companies.  Also, we must find and employ collaborative problem solvers who can rethink how we’re doing business.  

 

If we continue stampeding with the herd, we risk the onset of a Post-Digital Dark Ages. Through collaboration, we can ultimately exit the downturn with a more sustainable, long-term focus throughout business, government and society.

 

Toyota's Collaborative Leadership Involves "See it for Yourself"

In selecting Akio Toyoda as its next president, Toyota is reaffirming its commitment to collaborative culture and methods. A key tenet of Toyota is genchi genbutsu which means "see it for yourself.” This is related to the leadership method practiced by HP’s David Packard and Bill Hewlett beginning in the 1940’s and later dubbed “management by walking around.” The idea is that to figure out what’s really going on in an organization, a leader needs to get out of the office, go to factories and loading docks and retail outlets, and get his or her hands dirty.

 

That’s exactly what Akio Toyoda did when he visited a Toyota dealership in Ann Arbor, Michigan last summer. He wanted to personally investigate a pickup truck recall. A story by Micheline Maynard on February 15, 2009 in the New York Times says Toyoda made a trip “so secret that Toyota’s public relations staff didn’t know he was here.” While at the dealership, he reportedly got down on his hands and knees to examine the undercarriage of a truck. At the news conference in January announcing his appointment, according to the Times, Toyoda announced he would pop up everywhere as he did in Ann Arbor.

 

Genchi genbutsu or “see it for yourself” fits squarely into collaborative culture and methods. However, it’s not always possible to fly across the world to see what’s happening. That’s where collaborative tools come into play. Through unified communications, we can find one other and connect regardless of level, role or region. We can escalate IM to voice, web conferencing or videoconferencing and spontaneously hash out problems and make decisions. Visual communications is a critical enabler. An ideal solution is telepresence, which makes people feel practically as if they’re sharing the same physical space regardless of distance.  

 

Our research at The Culture of CollaborationÒ Institute has shown that almost all highly-collaborative companies have integrated some form of real-time, interactive video into their operations. As I describe in The Culture of Collaboration book, Toyota uses a custom-designed visual communications system coupled with product lifecycle management and advanced computer-aided design tools that has become essential to its operations. The system links people at design facilities, plants, and at business partner sites and provides a rich virtual environment for developing and producing vehicles.

 

Two other areas involving collaboration that Akio Toyoda will likely re-emphasize:

1)     Making decisions based on long-term goals rather than on short-term developments

2)     Nemawashi or making decisions slowly by consensus

 

While collaborative culture is never about one person, Akio Toyoda is certainly one role model for collaborative leadership.

Early Input Enhances Collaboration

The most collaborative organizations get broad input into decisions early and often.

 

President-Elect Barack Obama got into some hot water recently when word leaked out that he planned to nominate Leon Panetta as director of the CIA. U.S. Senator Dianne Feinstein, incoming chair of the Senate Intelligence Committee, publicly attacked the decision partly because of Panetta’s lack of intelligence credentials and partly because nobody apparently consulted her about the appointment.

 

Aides to the President-Elect insisted that they were planning on getting Feinstein’s input regarding the Panetta appointment before going public.  However, getting a key stakeholder’s input late in the decision-making process is less collaborative and less valuable than getting early input. Requesting late input is often political rather than collaborative and provides an opportunity for the decision-maker to sell key stakeholders on a decision rather than really consider their perspectives.  

 

Collaboration means people participate in decisions regardless of level, region, business unit or function. In The Culture of Collaboration book, I write about how Toyota makes decisions and the role of nemawashi, which essentially means consensus building. Before the automaker changes the wheel base on a car model, the company gets broad input from those who design and assemble the vehicle. The decision takes longer, but implementation is swift because stakeholders have already anticipated and addressed potential problems.

 

In contrast, faster decisions without broad input may appear more efficient, but such decisions often run into hurdles during implementation and ultimately absorb more of an organization’s resources. Without broad input, people who are impacted often criticize a decision because they had no voice and no stake in the outcome.

 

Had the Obama transition team involved Senator Feinstein earlier in the process, the decision on the CIA director nomination would have reflected her input—and the transition team would have avoided the resulting perception that the President-elect and his staff are making decisions in a vacuum. Ironically, the Office of the Director of National Intelligence (ODNI) has been focused on making the intelligence community more collaborative. For more on this, see my December 18, 2008 post.

 

Getting early, broad input into decisions enhances collaboration and creates greater value whether the organization is a government, a company, a non-profit, a school, or a club.

CNBC Featuring The Culture of Collaboration

CNBC’s 5-part series on collaboration premieres this Sunday, October 12 at 8 p.m. Eastern time (5 p.m. Pacific time) and will re-air at 1 a.m. Eastern time (10 p.m. Pacific time). The series called “Collaboration Now,” sponsored by BT (British Telecom), will also air on CNBC Europe, CNBC Asia Pacific, and other affiliates. You can view the global air schedule here. I’m one of the guests in the first episode dubbed “Collaborating to Compete.” You can read about the episode here. 

 

My participation is in episode one’s block or section about trust, one of the Ten Cultural Elements of Collaboration that I describe in The Culture of Collaboration book. During the trust block, CNBC airs a taped story on the Boeing 787 Dreamliner, which involves an incredible amount of collaboration and trust among Boeing and its global design partners. I put the 787 in perspective by explaining the significant shift in process between the 777 and the 787. The discussion touches on some other key aspects of trust and collaboration.

 

You can watch this discussion after the first commercial.  It immediately follows the satellite interview with former Canadian Prime Minister Brian Mulroney. I’m on set with host Donnie Deutsch; Chrystia Freeland, U.S. managing editor of the Financial Times; Richard Tait, former CEO of Cranium and Miles Everson, partner with Pricewaterhouse Coopers. The series features several highly-collaborative organizations featured in my book including Boeing, the Dow Chemical Company, and Mayo Clinic.

Check out the show on Sunday or the archived video which will be posted here.

Community Collaboration and Recycling San Francisco Style

San Franciscans toss away at least five bicycles a day. When the mountain bike craze ebbed, that number was higher—at times, twenty bikes a day. And SF Recycling & Disposal, Inc. (aka The Dump) also gets ten to twenty pieces of exercise equipment daily—everything from elliptical machines to NordicTrack skiers. Each day the dump also receives about twenty plants, some of which volunteers transfer into the dump’s garden. 

 

I learned many of these statistics Saturday morning from Deborah Munk, who coordinates art and education programs for the dump. Deborah was conducting a public tour, which included a heavy dose of recycling and trash facts. I learned that China is paying top dollar for recycled paper. Every day, the San Francisco dump ships hundreds of bales of paper to China, which helps fuel the country’s growth.

 

This particular public tour was crowded with artists vying for the dump’s Artist-in-Residence program, which gives artists a stipend, a studio, a show, and access to San Francisco’s waste stream so that  they can get first dibs on materials for sculptures, paintings, videos, and other media. Paul Cesewski, former artist-in-residence, turns recycled bicycles among other items into kinetic art. Nancy Calef, who was taking Saturday’s tour before applying for the program, uses recycled objects ranging from eyeglasses to emery boards in her 3D “Peoplescapes.” Peoplescapes are sculpted characters and applied objects on canvas which juxtapose people in recognizable places and situations weaving together a story about contemporary life.  Calef also recycles canvases for a technique called “plane slashing,” which combines two or more paintings into one.

 

The artists collaborate with the recycling sorters, who look out for requested materials. One artist recently asked for some pens, and a few hours later he received hundreds of them. Those pens are now a sculpture. The artists help promote recycling, and they’re one aspect of how people throughout the dump’s ecosystem work together to create value.

 

San Francisco’s recycling program is a study in collaboration. Seventy percent of the two thousand tons of waste a day that flows into the dump is recycled. Clearly, San Franciscans take the time to sort their refuse into bins color-coded for trash, compost and recyclables. And once the waste arrives, union sorters identify items that can be sold as commodities, reusable stuff and electronic waste. The dump makes some stuff, such as recycled latex paint, available for free. Also, more than eighty thousand homes and two thousand restaurants compost their food scraps. San Franciscans get some of their compost back as free soil a couple of times a year, and wineries nourish their vines with soil made from SF compost.

 

Some dump team members are pressing to take collaboration to the next level. “We’re just scratching the surface,” insists Bob Besso, recycling manager for Norcal Waste Systems, Inc., which runs the dump. Currently, San Franciscans pay $107 a ton to dump waste. SF Recycling & Disposal, Inc. sells much of the recycled waste as commodities. All that exercise equipment becomes scrap metal. Besso believes the dump should designate drop-off areas where specialists could evaluate specific categories of items such as exercise equipment and bicycles, furniture and textiles, clothing and other items. Rather than charge for accepting these reusable items, the dump could take them for free and sell them at a higher price than that of a commodity. Garbage Reincarnation, Inc, a non-profit in Santa Rosa, California has achieved success of this sort. Besso believes the San Francisco dump could become a model for large-scale reincarnation of waste.

 

SFRecycling & Disposal, Inc. comprises an ecosystem of collaborators who are striving to create greater value through innovation, education, and brainstorming. The SF Dump’s approach reminds us that rather than letting new ideas die on the vine, our challenge is to improve ideas through collective input so that we achieve awesome results.

Lodestar Gets Nearly 700 Nominations for $250K Collaboration Prize

The Lodestar Foundation has received 600 to 700 nominations for its first annual $250,000 collaboration prize. Today is the deadline, and I just got off the phone with Lois Savage, the foundation’s president. Lois tells me that the impetus for the prize is the lack of models for collaboration among non-profits. The prize process creates the opportunity to gather information about effective collaborative practice models that academics and non-profit practitioners can study.  

 

Too often in the non-profit sector, funders try to drive collaboration by forcing organizations with similar objectives and interests to work together. Lois calls them “shotgun weddings.” These usually fail. Similarly, successful collaboration in the for-profit workplace requires more than tools and an edict to collaborate.

 

The Collaboration Prize recognizes collaboration among two or more nonprofit organizations that would otherwise provide the same or similar services and compete for money, clients and staff. The Lodestar Foundation, created by real estate developer Jerry Hirsch of Phoenix, focuses on process and structure of non-profits rather than on specific philanthropic activities. Lodestar’s guiding principle is encouraging non-profits to use efficient business practices. Collaboration fits into that framework by maximizing resources and reducing competition among organizations tackling similar issues. Lodestar has funded cooperative ventures and new organizational structures including coalitions and mergers.

 

Here’s how the prize selection process works: La Piana Associates of Emeryville, California, a management consulting firm for non-profits, will review submissions for eligibility. AIM, the Arizona-Indiana-Michigan Alliance, will review nominations and select eight semi-finalists. AIM is a consortium that includes The Lodestar Center for Philanthropy and Nonprofit Innovation at Arizona State University, the Center on Philanthropy at Indiana University, and the Johnson Center for Philanthropy and Nonprofit Leadership at Grand Valley State University in Michigan. Sterling Speirn, president and CEO of the W.K. Kellogg Foundation, will chair a panel that will choose the recipients from among the finalists.

 

The Lodestar Foundation is one of a growing number of foundations that are embracing collaboration. In July of 2006, the Bill and Melinda Gates Foundation announced 16 grants totaling $287 million to fund an international network of highly- collaborative research consortia focused on developing an HIV vaccine. In The Culture of Collaboration book, I write about the Myelin Repair Foundation’s collaborative research model. The model creates incentives for data sharing and collaboration among scientists at different universities working on treatments for multiple sclerosis.

 

While the non-profit sector has focused recently on adopting efficient business practices, the for-profit sector may also look to non-profits for guidance. There is certainly room for knowledge transfer among both sectors to share successful collaboration models.

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.”

Dana Holding Corporation Gets Collaborative CEO

Gary Convis is willing to roll up his sleeves and get dirty, and he listens closely and collaborates with people at all levels. The retired chairman of Toyota Motor Manufacturing, Kentucky is joining Toledo, Ohio-based Dana Holding Corporation, as its CEO.

When I was researching The Culture of Collaboration book, Convis was generous with his time and provided tremendous insight into how collaboration creates value for Toyota. Published reports have focused on Convis’ knowledge of lean manufacturing techniques, but he will likely engage Dana team members in every function, region and level to adopt a more collaborative culture.

Convis speaks softly and exudes confidence, but without a trace of egotism. At Toyota, he expected aspiring leaders to spend time on the assembly line. “When you put in days of working on the line with your own hands building a car, what the team member does every day, that means you really connect with that team member and you have respect for what they do,” Convis told me.

As a collaborative leader, Convis seeks broad input into decisions and expects people to contribute regardless of role or title. He also believes strongly in mentoring, and will guide protégés to adopt more collaborative approaches to leadership. Shoot-from-the-hip managers, information hoarders, and people used to star status will likely need to adapt.

Dana and Convis share some values. The “Dana style” of management emphasizes idea generation from everybody and “cooperation among Dana people globally.” However, Convis will likely work across business units and functions to help nourish seeds of collaboration.

Dana’s values, as described on the company’s web site, include employing, developing and promoting “the very best people based on personal performance and skills.” With Convis at the helm, Dana may change this statement to “the very best people based on collaborative performance and skills.”

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.

Ford Keeping Volvo: Collaboration a Factor?

Collaboration was percolating beneath the surface of Ford Motor Company’s announcement last Thursday that it would focus on fixing rather than selling Volvo. I argued in an August 3 post entitled “Why Ford Should Keep Volvo” that the greatest value Ford stands to gain by keeping Volvo is the Culture of Collaboration. You can read my post here.

In the announcement, Ford said that it has developed a plan for Volvo. The priority is to improve the unit’s financial performance, which has been stymied by several factors including foreign exchange rates. Another objective is to increase “synergies” (essentially collaboration) between Ford-brand operations and Volvo, particularly in product development and purchasing.

In The Culture of Collaboration book, I write about highly-collaborative enterprises. Ford is included mostly because of Volvo. While Ford’s collaborative culture is a work in progress, Volvo collaborates constantly and is consensus-driven. In short, Ford has much to learn from Volvo on many levels. Clearly, Ford CEO Alan Mulally wants to accelerate collaboration between Ford and Volvo. Until recently, Alan ran Boeing Commercial Airplanes—and Boeing is among the most collaborative companies. My sense is that Alan is the right leader at the right time for Ford. He understands the value collaboration can create. Clearly, the desire to collaborate with Volvo is playing a role in Ford’s decision to keep the unit.