The Culture of Collaboration

Seven Steps to The Culture of Collaboration

2013-06-09T17:39:53-07:00

My new book, The Bounty Effect: 7 Steps to The Culture of Collaboration, has received two favorable reviews: one in Publishers Weekly and the other in Library Journal. Both reviews focus on the 7 Steps: Plan, People, Principles, Practices, Processes, Planet and Payoff.

I’m delighted that both reviewers understood the book’s premise that businesses must abandon obsolete organizational structures designed for the Industrial Age and replace them with infinitely more valuable collaborative structures suitable for the Information Age. Leigh Mihlrad of the National Institutes of Health reviewed The Bounty Effect for Library Journal. “Rosen declares that while the control method might have worked in the Industrial Age, it does not work in today’s Information Age,” according to the review. Mihlrad concludes with the Library Journal's verdict: “For those in positions to bring about organizational change, this book provides many useful examples.”

The Publishers Weekly review highlights my point that The Bounty Effect is by no means limited to corporations. “Rosen argues that collaboration moves well beyond organizational boundaries, as it applies to neighborhoods, communities, and government,” according to Publishers Weekly. “Collaboration creates greater value, enhances achievement, and produces sustainable business models; the question then becomes how quickly can an organization free itself from the Industrial Age and operate to its maximum capacity in the Information Age.” The sooner an organization starts the seven steps, the faster it can migrate from command-and-control and maximize value through collaboration

Changing Organizational Structures for Collaboration

2013-06-04T12:47:35-07:00

My new book entitled The Bounty Effect: 7 Steps to The Culture of Collaboration® is now available. It’s the second book in a series which includes The Culture of Collaboration®: Maximizing Time, Talent and Tools to Create Value in the Global Economy. The Bounty Effect shows how to change the structure of organizations for collaboration.

Why do organizations need to change their structures? The Industrial Age was command and control. The Information Age is collaboration. Yet Industrial Age structures render collaboration dead on arrival in the Information Age. Remnants of these structures—including organization charts, performance reviews, meetings and mission statements—inhibit organizations from using new collaborative methods and tools that spark innovation. Now we’re at the point where many organizations—from corporations and small businesses to universities and government agencies—have a desire to collaborate. Some have taken action to instill collaborative culture. But what’s holding back collaboration is obsolete organizational structures, which we must change.

The Bounty Effect gets its name from the mutiny that occurred on the H.M.S Bounty in 1789. Before the mutiny, Captain William Bligh used a well-worn management technique: command-and-control. The mutiny forced the structure and culture to change as Bligh became a collaborative leader and his loyalists participated in decisions as they struggled for survival aboard a small boat. The mutiny was an exigent circumstance, one that compels immediate action.

The Bounty Effect happens when exigent circumstances compel businesses, governments and organizations to change their structures from command and control to collaborative. Triggers include disruptive market forces, new competitors, regional slowdowns, natural disasters, terrorist attacks and global downturns.

The book is about how to seize the opportunity that The Bounty Effect provides and change the organizational structure in seven steps. My objective in writing the book is to provide a framework for structural change necessary to transform organizations into collaborative enterprises. And The Bounty Effect demonstrates how collaborative enterprises create far more value than command-and-control organizations. Using the framework, people and organizations can determine how to redesign and adopt a collaborative structure that fits. I welcome your input.

Clinton Foundation Collaborates to Improve Health

2013-01-20T19:26:30-08:00

Collaborating across sectors—government, private industry, non-governmental organizations (NGOs) and education—can solve some of the world’s greatest challenges. These challenges include global health, economic inequality, childhood obesity, climate change, and health and wellness—which, incidentally, are the five main areas in which the William J. Clinton Foundation works.

Health and wellness was front and center last Tuesday as President Bill Clinton and his daughter, Chelsea, assembled a few hundred people in the California desert for the Clinton Foundation’s Health Matters conference. Despite the focus, themes are interrelated. So global health, economic inequality, and childhood obesity crept into the discussion. In his opening remarks, President Clinton noted that the rising cost of health insurance premiums often prevents employers from increasing wages. “We cannot ignore the link between health and the economy,” said President Clinton.

Invited guests and speakers at the La Quinta Resort in La Quinta, California included hospital and insurance executives, health policy experts, and veterans of government service including Dr. David Satcher, Surgeon General of the United States during the Clinton Administration. Others including Dr. Deepak Chopra, Dr. Dean Ornish, and actress Barbra Streisand are partnering with the Clinton Foundation to advance health and wellness agendas. Long-standing relationships among some participants coupled with the relaxed resort atmosphere sparked an exchange of actionable ideas. President Clinton and Chelsea seemed as comfortable sitting in the audience asking questions and refining ideas as they were on stage.

“We’re moving into an era where the only way you can create enough jobs for people and generate enough wealth to have decently-rising wages is if you have creative networks of cooperation. I think the same thing is true of this health challenge,” President Clinton insisted during a discussion with NBC News Chief Medical Correspondent Nancy Snyderman, a friend of the former president for thirty years. “It’s the only thing that works. It works everywhere in the world.” This is another way of saying that collaboration creates value.

I practically muttered “Amen” aloud when President Clinton cited a study that found that if you put a group of people with average IQs together and ask them to work on a problem for a year and you give the same problem to a genius, over the long run the group of people with average intelligence working together will do better than one genius acting alone.

One of the most impactful ways that collaboration can improve healthcare is to remove the barriers that exist between front-line doctors and other health professionals. Too often primary care doctors practice in silos. Dr. Mark Weissman rose from the audience to insist that he and other primary care doctors are awash in patient data but lack regular access to other medical professionals who can collaborate with them on the data and on patient care. Pediatrician Donald Berwick, former administrator of the Centers for Medicare and Medicaid Services and a possible candidate for governor of Massachusetts, responded to Weissman that it’s necessary for doctors to learn that “I’m no longer the hero who saves the day, but I’m interdependent with others to give care. That’s what works.”

I’ve written often in this space and in The Culture of Collaboration book about how engaged team members working in a collaborative culture create far more value than do team members working in a culture of fear and internal competition. Dr. Deepak Chopra noted that employee disengagement costs the United States economy $300 billion a year. “If your supervisor ignores you, you start to get disengaged and within a few months you start to get ill,” Chopra explained. “If your supervisor doesn’t ignore you but criticizes you, you actually get better.” This is because we would rather be acknowledged than ignored even if we’re receiving criticism. “And if your supervisor notices a single strength that you have, your rate of disengagement goes down to 1 percent,” according to Chopra.

The Health Matters conference is as much about taking action as about exchanging ideas. Corporations, government entities, non-profit organizations, and individuals pledged to take action in preventing disease and improving health. Financial pledges total over $100 million. One such pledge by entrepreneur and philanthropist Vinod Gupta will support a new Clinton Foundation program to address prescription drug abuse. Gupta’s son, Benjamin, died accidentally after taking prescription painkillers and consuming alcohol in December of 2011. Gupta and the Clinton Foundation will educate the public, particularly college students, about the dangers of prescription painkillers.

As I was checking out of the La Quinta Resort, I noticed that Surgeon General Satcher was next to me in line. We chatted about his recent work guiding the Satcher Health Leadership Institute at the Morehouse School of Medicine in Atlanta. Dr. Satcher noted that at Morehouse he’s building on his work as surgeon general by collaboratively focusing on neglected diseases and underserved populations. Like so many other disciplines, improving health and wellness requires collaboration.

Multicultural Collaboration Produces Unique Spa

2012-04-13T14:42:40-07:00

Bridging cultures, particularly regional cultures, produces a broader perspective that gives collaborators an edge. In disciplines like aerospace engineering, team members trained in one country’s engineering tradition may view a creative challenge differently than their colleagues who were trained in a different country’s system. Drawing from their collective global knowledge, cross-cultural collaborators can spark synergies and create greater value. In The Culture of Collaboration book, I call this the Dynamic Dimension of Cross-Cultural Collaboration.

This dimension is alive and well at Archimedes Banya, a spa complex that opened in San Francisco last New Year’s Eve after twelve years of development and construction. People from twenty different countries collaborated on the project. Managing partner Mikhail Brodsky of Russia had the original idea. Reinhard Imhof of Switzerland led the indoor construction. Architect Sam Kwong of China developed the plans. Other partners are from countries including Korea, Israel, Germany, Japan, and Mexico.

The concept began when Brodsky, a mathematician, arrived in San Francisco from Moscow in 1989. A lover of Russian bath complexes or banyas, Brodsky was disappointed to find no such facilities in his adopted city. He longed to start a banya. In the summer of 1998, Brodsky, then a professor at the University of California at Berkeley, applied for a job as chair of the mathematics department at San Francisco State University. SFSU’s rejection sparked Brodsky’s interest in doing something significant in San Francisco while delivering on his banya dream.

Brodsky, Imhof and two other partners formed a company, and in 1999 bought a lot in India Basin near San Francisco’s former Hunters Point Shipyard. Though in an obscure neighborhood, the lot provided sweeping views of San Francisco Bay. To construct the building, Brodsky and his partners would need to recruit more partners. Like many ethnic groups living in the United States, many Russians do business only within their community. Therefore, logic would dictate engaging Russians to finance, design and build the project. But some Russians who Brodsky approached had difficulty seeing past the many roadblocks to the project ranging from building permits and location to construction costs and customer base. So, Brodsky decided to broaden his reach, involving people from as many countries as possible. The common thread was a passion for the Banya project plus mutual trust and common goals, two of the Ten Cultural Elements of Collaboration I identify in The Culture of Collaboration book.

In a departure from the command-and-control approach to business in which “stars” grab the credit, Archimedes Banya recognizes multiple contributions in much the same way Adobe Systems includes a credit role in its software products. When I visited Archimedes Banya recently, the first thing I noticed was a wall near the entrance listing the names of the multicultural collaborators who turned the concept into reality. Also apparent was the amazing art ranging from mosaics depicting bathing traditions to murals and inlaid ceiling tiles. Including art in public bathing facilities is a tradition dating back to the Roman Empire.

Artist Vadim Puyandaev of Kazakhstan collaborated with Brodsky to evoke the right atmosphere. “I
wanted very simple, clear images of emotion,” says Brodsky. And the images also reflect action. “In a Russian banya, people move. It’s an active place. It’s not just sitting and sweating.” The complex is geared to socializing and offers facilities ranging from a rooftop sun deck with a San Francisco Bay view to private reception rooms replete with bars and kitchens.

The Banya offers a spa experience reflecting the cultural melting pot. I checked out two Russian saunas, the Finish dry sauna, the steam room, warm soaking pools, cold plunge and relaxation room. After loosening up in the various saunas, I experienced a Russian venika platza treatment that involved a tall Moldovan fellow clad in a towel and sweat-soaked Banya hat brushing and lashing bunches of Latvian birch leaves on me to increase circulation.

Following this, I laid on a table as an attendant scrubbed me with an exfoliating soap and then rinsed me with buckets of warm water. Then my muscles were relaxed enough for a massage from a masseuse from the United States. Afterwards, I headed to the café upstairs for pelmini or Russian dumplings, stuffed cabbage, hearty Russian beef soup, fresh-sqeezed juices spiked with kombucha, which is fermented tea and housemade kvass, a non-alcoholic beer made from fermented rye bread.

An ambitious spa project that began as one person’s vision ultimately reflects the combined vision and execution of multiple people from many cultures. Collaboration involves marrying talents that are worth far more collectively than individually. Brodsky describes himself as a “starter.” But to make the project a reality, he collaborated with Imhof, a “finisher.” Because of the Swiss tradition of quality workmanship, Imhof shared Brodsky’s values of using the best materials and constructing a banya for the long term. The concept of “starters” and “finishers” has broad ramifications. A starter may have an incredible idea, but creating a company that produces substantial value may require collaborating with a finisher.

As we collaborate, we can create awesome value by engaging and involving people with multiple talents and backrounds and, yes, from multiple cultures. The Dynamic Dimension of Cross-Cultural Collaboration delivers results otherwise unattainable.

Cross-Sector Collaboration for Sustainable Development

2012-02-08T16:29:52-08:00

Accomplishing massive goals requires massive collaboration—far beyond collaborating within an organization or within an industry or among government agencies.

Making meaningful progress on issues including eradicating global poverty and protecting the global ecosystem requires collaboration among governments, non-governmental organizations (NGO’s), private industry, farmers, indigenous peoples and unaffiliated individuals with ideas. This cross-sector collaboration is driving the agenda for the United Nations Conference on Sustainable Development which happens this June 20-22 in Rio de Janeiro, Brazil. The conference, dubbed Rio+20, marks the twentieth anniversary of the United Nations Conference on Environment and Development. The 1992 conference established the Rio Declaration, which includes 27 principles mostly addressing sustainable economic development.

Last Friday, at the invitation of the United States Department of State, I attended a planning meeting for Rio+20 at the Center for Social Innovation at the Stanford Graduate School of Business. The purpose was to distill ideas from cross-sector collaborators on how to bridge connection technologies with sustainable development. In a brainstorming session on “sustainable economic growth,” we tackled wasted talent and connectivity. Think of the many people in developing countries with talent and ideas who have no outlet to connect and collaborate. This is our collective loss as global citizens until we tap that talent.

The world’s wasting of talent in developing countries is analogous to the command-and-control organization that pays “knowledge workers” to think and pays everybody else to carry out orders. See my January 11, 2011 column for BusinessWeek.com on this topic. Such an organization squanders talent. This is because people throughout the organization—from the loading dock to the call center—have knowledge to contribute.

One participant noted that wasted connectivity involves using the Internet frivolously, perhaps for pirating movies and other content, rather than for working together to eradicate poverty, create new markets and protect the environment. Similarly, wasted connectivity within organizations involves using networks and tools for chatter rather than for developing and producing products and services.

Since the 1992 Rio Declaration, the Internet has grown from less than 16 million users to over 2 billion users, according to internetworldstats.com. Mobile phone users have grown from less than 23 million in 1992 to more than 6 billion in 2011, according to nationmaster.com. The current level of connectivity creates an opportunity for a more distributed, peer-to-peer (read inclusive) approach in collaborating for sustainable development.

Old models of cross-sector collaboration were minimally effective, because they involved “decision makers” or “thought leaders” shaping ideas and developing solutions which they would hand down to people impacted by the decisions. Now people in developing countries without affiliations can shape ideas with ministers and private sector leaders globally. Well, at least this is technically possible.

As important to cross-sector collaboration as global connectivity and enabling technologies is a cultural shift in which governments, NGO’s and private industry embrace input from people regardless of affiliation or location. This is analogous to organizations adopting more collaborative cultures and tools so that people far from the home office or from executive corridors can participate in making decisions. The State Department has chalked up success with an emerging collaborative culture and tools including Secretary Clinton’s Sounding Board. For more on this, see my September 14, 2010 post.

One of the people hashing out ideas in the sustainable development brainstorming session was Rio+20 Secretary General Sha Zukang, who is also the UN Under Secretary General for Economic and Social Affairs. Zukang, who demonstrated particular talent at defining and outlining sustainable development issues, brushed against a live wire as the workshop concluded: intellectual property. The brainstorm was exactly three weeks after the collapse of U.S. House of Representatives support for the Stop Online Privacy Act and Senate support for the PROTECT IP Act backed by media and entertainment companies and opposed by Google and Wikipedia among other online interests.

Zukang described the need to “find a balance” between protecting intellectual property and disseminating information. This balance impacts cross-sector collaboration in that people in developing countries often lack access to the same information accessible to their collaborators in developed countries. Providing affordable access will help level the playing field. Contrary to some viewpoints, collaboration—cross-sector or otherwise—by no means requires eliminating or dismantling intellectual property protection. IP protection creates incentives for people and organizations to collaboratively develop and produce products and services.

Cross-sector collaboration takes collaboration beyond organizational and sector boundaries to create value on a global scale.

BMW, Toyota and Collaborating with Competitors

2011-12-08T15:25:24-08:00

They compete in the marketplace, but now they’re also collaborating.

BMW and Toyota have announced they will collaborate in two areas: the companies will share costs and knowledge for electric car battery research, and BMW will supply diesel engines to Toyota. Toyota owns the luxury brand, Lexus, and therefore BMW and Toyota directly compete in the luxury car segment. Both companies have a significant collaboration track record.

In The Culture of Collaboration book, I describe how BMW and Toyota create value by collaborating internally and with business partners. The preface, which you can read here, reveals how my visit to the BMW design center in Munich some years ago sparked the book.

So why would two competitors collaborate? Collaborating makes sense within enterprises and with partners, but the marketplace requires pure competition. Right? Well, that depends.

Collaborating among competitors makes sense when the collaboration:

Creates value for both parties
Begins with structure and clarity
Involves non-differentiating processes

Clearly, the BMW/Toyota collaboration nails number one. “We think that this collaboration will allow for development of next-generation batteries to be done faster and to a higher level,” Toyota Executive Vice President Takeshi Uchiyamada said at a news conference. Both companies will share the costs of battery development.

Toyota will reportedly use BMW’s 1.6 and 2-liter diesel engines for cars sold in Europe beginning in 2014. This is reportedly the first time Toyota has procured an engine from a competitor. According to a story by Yoshio Takahashi and Kenneth Maxwell in the December 2, 2011 edition of the Wall Street Journal, the collaboration will reduce BMW’s engine production costs per unit by increasing volume. So, value creation is at the heart of this collaboration.

What about #2, structure and clarity? Based on what I know of BMW and Toyota and their approaches to collaboration, chances are this effort involves much of both. In any collaboration among competitors, both parties must establish boundaries for collaboration at the outset. Most importantly, the competing collaborators must determine use and ownership of existing and jointly-created intellectual property. Far fewer problems arise when business unit people, engineers, marketing folks, lawyers and others from both companies hash out these concerns rather than simply handing off the issues to lawyers to hash out in a vacuum.

Regarding #3, I’ve found that collaboration among competitors works best when the effort involves eliminating redundancy in non-differentiating processes. These are typically under-the-hood processes that are not part of a company’s market or product perception. Two companies that each make hot sauce might use the same bottling equipment. Two newspapers in the same market might use the same printing presses. Entire industries participate in consortiums for purchasing, saving each competing company substantial money. These shared, non-differentiating processes are invisible to the customer.

Engines are invisible to all but the most die-hard car enthusiasts, so collaborating on this process arguably fits the bill as non-differentiating. Typically, car batteries have nothing to do with the vehicle perception in the marketplace. In the case of electric cars, though, the jury is still out whether the battery is invisible to the consumer. The technology is in its infancy, and therefore the market consists primarily of early adopters. These consumers are more techno-savvy, realize the lithium-ion battery is intrinsic to the product’s technology and performance, and therefore may place a heavier emphasis on the battery in their purchase decisions.

So, it remains to be seen whether battery research and development is non-differentiating for BMW and Toyota. Nevertheless, if both companies can save substantial money on development and bring vehicles to market sooner and customers perceive and actually get better electric vehicles, this collaboration will prove successful.

Slow Money Collaboration

2011-10-13T23:10:31-07:00

In a cavernous, nearly empty room above the Readers Café & Bookstore in Building C of San Francisco’s Fort Mason Center, Woody Tasch sits at a corner table by a lone window looking out on the Bay. It’s the eve of the Slow Money National Gathering, and the organization’s chairman is putting the finishing touches on his opening remarks. He must fend off criticism that his model is “fantasy economics” and impress on the three hundred investors and five hundred or so other attendees that our industrialized food system has become as imbalanced as the financial system was during the depths of the 2008 crisis.

Woody, a former New York venture capitalist who now lives off the grid near Taos, New Mexico, wants to change how we finance food businesses as dramatically as he has changed his own life and career. In the 1980’s, Woody worked as a self-proclaimed “small-time VC” making healthcare investments for Prince Ventures, owned by the Prince family of Chicago. Ultimately, he transformed himself from a mathematics-driven investor to one with a social conscience with stops along the way as treasurer for a foundation and chairman of an angel investor network called Investors Circle.

“It’s no longer about how much we can take off the table for ourselves,” Woody insists. After getting involved with the global Slow Food movement, the antithesis of fast food in its promotion of sustainability, Woody and his collaborators sought to address the difficulty many sustainable food businesses have getting financing. “It hit me that patient capital plus slow food equals slow money,” he explains.

Woody and his colleagues are enabling microfinance for the food industry and, since 2009, have sparked $6 million in micro loans. Slow Money links growers, restaurants, organic farm suppliers and other food entrepreneurs with consumers willing to lend businesses a few thousand—or even a few hundred—dollars.

“This is not a typical fiduciary model,” Woody explains. “What we are going to be proving over the next decade is that collective intelligence and local knowledge of groups of individuals effectively collaborating will produce positive outcomes both in arithmetic and impact on the community.” In other words, investors can do good and simultaneously get a modest return on investment. At the moment, 3 percent a year in interest is typical.

Slow Money is evolving from advocating individual investments to promoting investment clubs. Compared to angel investing, for which investors must have assets of at least a million dollars or a yearly salary of at least $200,000, the investment club barrier to entry is much lower. As a model, Slow Food organizers point to the No Small Potatoes Investment Club, which provides low-interest loans to Maine farmers and food producers. So far, fifteen investors have each put up five thousand dollars.

After talking with Woody, I stop by the rehearsal for the entrepreneur pitches. These five-minute presentations are not unlike those for technology companies at venture capital conferences. But there is something perhaps more wholesome and genuine and, yes, rougher around the edges, about these pitches. Some of these food businesspeople have never before spoken at an event. George Weld, owner of both Egg restaurant in Brooklyn and a farm in Oak Hill, New York, speaks of the need to curb the “recurring alienation between rural and urban that plagues the food economy.”

One of the better-received pitches comes from Dr. Hubert Karreman, a veterinarian and founder of Bovinity Health. Hubert’s company manufactures natural alternatives to antibiotics for livestock. He clicks through financials including $250,000 in sales in 2011, provides market share projections and leaves the rehearsal audience whispering "he's gonna get funded."

Slow Food’s goal is for a million Americans to be investing one percent of their money in local food systems within a decade. Meantime, Woody Tasch offers his prescription for the economy. “What we need is rebalancing. Right now we’re lurching towards the global race to the bottom. It’s buy low, sell high, GMO [genetically modified organism], CDO [collateralized debt obligation] capitalism. We have to compete for cheap labor around the planet subsidized by cheap oil and ignoring the medium and long-term social and environmental impact.” Collaborating requires a longer-term focus, and Slow Money is helping enable that evolution.

How Bean Counting Compromised Value at General Motors

2011-09-18T18:06:46-07:00

Too often companies emphasize numbers over products and forecasting over customers. Such firms typically focus on short-term results over long-term value. This creates greater internal competition and encourages shorter-term supplier relationships rather than enhancing collaboration internally among functions and externally with business partners.

The relentless focus on numbers at the expense of domain expertise figures prominently in the book, Car Guys vs. Bean Counters (Portfolio, 2011) by Bob Lutz, former vice chairman of General Motors. Fifty years ago, GM products were the epitome of design. Over the last half century, though, the company’s products have steadily lost traction with customers. This decline culminated in the company’s reorganization under Chapter 11 in June of 2009. While many factors contributed to GM’s bankruptcy, short-sighted bean counting was undoubtedly one of them.

“It’s time to stop the dominance of the number crunchers, living in their perfect, predictable, financially projected world,” writes Bob, who specializes in getting people’s attention. I first encountered Bob early in my career when I was reporting on the auto industry and attending the introduction of the Jeep Grand Cherokee at the 1992 North American International Auto Show in Detroit. Bob exuded machismo as he drove the SUV through a plate-glass window into the hall, shocking me and other journalists awaiting the usual dull presentations. At the time, Bob was president of Chrysler.

Bob’s detractors consider him an old-school, shoot-from-the-hip executive who makes decisions based on his gut with little analysis. In reality, Bob understands the need for left brain and right brain driven people to collaborate regardless of their titles or functions. And he encourages more junior people to challenge him. In short, he values constructive confrontation, one of the ten cultural elements of collaboration I introduce in my book, The Culture of Collaboration.

The former Marine Corps pilot insists that “car guys” should run auto companies, “supermarket guys” should run supermarkets, and “software guys” should run software companies. He concedes that these “guys” can be of either sex. Too often, as I noted in The Culture of Collaboration book, boards of directors and senior leaders believe that if they hire “star players” these supposed stars can and will achieve results regardless of their domain knowledge or industry experience. Some prominent management consulting firms reinforce this skewed logic. The so-called star players are typically numbers-driven MBA’s interested more in units rather than in products and in forecasting rather than in customers. The organization promotes these internally-competitive numbers crunchers and sidelines others who focus on improving products and interacting with customers.

Of course, quantitative analysis is critical to any business. The problem arises when quantitative analysis dominates and pervades every aspect of a business while designing awesome products and creating market stickiness take a back seat. As Lutz chronicles in his entertaining and informative book, once upon a time design dominated the auto industry. Think of the tail fin era of the late 1950’s which gave rise to cars including the 1957 Chevrolet and the 1959 Cadillac (see images, Chevy image courtesy Trekphiler). Designers originated products. By the 1970’s, General Motors had reigned in designers, made design “part of the system,” and assigned product origination to a department called Product Planning staffed by former finance people.

Neither the old design-driven General Motors nor the newer numbers-driven organization is a model of collaboration. In the 1960’s, when design and the designers were at their pinnacle, Lutz writes that chief designers in well-tailored suits graced magazine covers. Essentially, designers had become stars and expected star status and treatment within GM and in society. Chief designers often silenced and sidelined people in other functions.

When GM reduced the role of designers, the organization empowered product planning to originate products in a vacuum. Handing plans off to designers with the instruction “go design this” hardly enhances collaboration. Ideally, designers would lead a design process with input from, engineering, manufacturing, marketing, sales and dealers. In a collaborative organization, people come together across departmental and functional barriers to share ideas and develop products and services in concert.

At least among senior leaders, GM more recently came closer to this ideal when it hatched the Chevrolet Volt, a hybrid electric/gas car introduced in December, 2010. Lutz, who had advocated an all-electric vehicle, describes how he sat across from Jon Lauckner, former GM vice president of product planning, as Lauckner sketched out the first drawing depicting the “sequential” hybrid technology of the Volt. This differs from the “parallel” hybrid technology of the Toyota Prius (The Volt is designed to go forty miles without using gasoline unlike the Prius which alternates between electric and gas). And almost immediately people Lutz dubs “unconventional thinkers” in design and product planning began collaborating.

Whether it’s skimping on ingredients in restaurant kitchens or using inferior paint in automobile assembly plants, focusing on numbers over products and forecasting over customers reinforces the wrong organizational values. In time, team members become comfortable sacrificing products and shortchanging customers. Ultimately, value evaporates. More collaborative organizations use quantitative analysis as a tool rather than as the primary organizational focus.

Collaborative Chaos at the New York Times

2011-07-25T13:22:38-07:00

Journalism, at its best, involves constant collaboration.

In television newsrooms, reporters, producers and assignment editors engage in a continuous conversation about stories and often edit scripts together in real time. While real-time group writing is a relatively new phenomenon in education and business, reporters and producers frequently write story introductions and “teases” together. This traditionally involves no electronic screen-sharing or web conferencing, but rather colleagues shouting to one another across the newsroom or two people hunched over a single terminal. In newspaper newsrooms, a similar continuous dialogue occurs among reporters and editors. Some colleagues get to know one another so well that they even finish each other’s sentences.

All of this newsroom interaction requires informality. Corporations and government agencies are increasingly embracing informality, because of a growing realization that formality compromises value creation. But informality is nothing new in newsrooms. The informality of journalism dates back at least to the early 20^th Century when few reporters got “formal” higher education and the socialization that accompanies it. Newsrooms then felt more like police stations in which colleagues sat in an open room exchanging sarcastic, irreverent banter. And though most journalists (and many police) now graduate from college and the journalistic culture has evolved, newsrooms have nevertheless retained much of their informality.

Films about journalism have captured this informality. Examples include the 1931 and 1974 versions of The Front Page, written by Ben Hecht and Charles MacArthur, about newspaper reporting in Chicago. Also, the 1976 film, All the President’s Men, directed by Alan Pakula, about Washington Post reporters Bob Woodward and Carl Bernstein’s investigative reporting on the Watergate scandal, reveals the constant conversation among all the players in the Post newsroom. The conversation continues down corridors and into the elevator where executive editor Ben Bradlee (played by Jason Robards), in a dramatic moment, instructs Woodward (played by Robert Redford) and Bernstein (played by Dustin Hoffman) to “print it” meaning to run a story about Watergate.

Fast forward to 2011. Traditional journalism is under siege, in part because of the Great Recession’s
ravages but mostly because of systemic shifts in the media industry. These include shrinking audiences and advertising dollars flowing to Web-based alternatives including social media. Against this backdrop comes Page One: Inside the New York Times, a documentary directed by Andrew Rossi, which attempts to capture a leading newspaper and its people at a pivotal point. (Photo of Times newsroom above courtesy of Magnolia Pictures)

The reviews have been mixed, a charitable adjective for Michael Kinsley’s take on the film that ran in—of all outlets—the New York Times itself. Kinsley takes the documentary to task for flitting “from topic to topic, character to character, explaining almost nothing.” Kinsley suggests that the movie is disjointed and confusing. The film does take up a series of topics: WikiLeaks, the Pentagon Papers, the Times survival, Comcast’s purchase of NBC Universal, Twitter’s impact, the Times’ plagiarism scandal involving former reporter Jayson Blair, Iraq, the Apple iPad, and the ups and downs of the Tribune Company, among others.

And all of this comes in the form of a continuous conversation upon which we as the audience eavesdrop. “Like a shopper at the supermarket without a shopping list, “Page One” careens around the aisles picking up this item and that one, ultimately coming home with three jars of peanut butter and no 2-percent milk,” Kinsley writes. Yes, but the collaborative process is rarely pretty.

In The Culture of Collaboration book, I identify the Ten Cultural Elements of Collaboration that are typically present when collaboration works. One of these elements is collaborative chaos, which is exactly what Page One reveals. Collaborative chaos, the unstructured exchange of ideas to create value, lets the unexpected happen and generate rich returns. In the film, we see former cocaine addict and current Times media columnist David Carr sharing ideas with his sources, his colleagues and his editor, Bruce Headlam. These exchanges culminate in value creation, Carr’s columns. And the film invites us into the Times daily story conferences during which editors jostle over which articles should appear on the front page.

Kinsley, no stranger to journalism as the former editor of the New Republic and Slate, would undoubtedly argue that while confusion may prevail in newsrooms, it’s the job of the filmmaker to present a more organized picture. But attempting to sanitize or beat the collaborative chaos out of the Times or any news operation would present a distorted view. It would be like eating street food in an upscale setting, a current trend in the restaurant business incidentally.

Journalism, and collaboration itself, involves a continuous conversation during which collaborative chaos prevails, recedes, only to prevail again all the while creating value.

Non-Profit Collaboration Creating Value

2011-05-17T16:22:52-07:00

The cost of internal competition plagues almost every company. But the private sector is by no means the only sector that competes. With limited funding, particularly during the Great Recession and the fledgling Great Recovery, non-profit organizations have increasingly competed for shrinking grant dollars. And while the for-profit sector may regard the non-profit sector as populated by less-competitive do-gooders, competition in the non-profit arena can rival that of private industry.

For private-sector companies, competing in the marketplace furthers objectives, namely to increase revenue and market share. In contrast, non-profit organizations compromise their objectives when they compete with other non-profits that share their mission. The cynical among us might believe that the first goal of some non-profits is preserving themselves to employ administrators and staff and that their service mission is secondary. Let’s assume, though, that the primary goal of most non-profits is to further their mission. In that case, collaboration among non-profits creates far greater value.

Some foundations have developed programs to encourage non-profit organizations to collaborate. The Myelin Repair Foundation, which is working to cure multiple sclerosis, has recruited five principal investigators from different universities. With input from the researchers, MRF developed a Collaborative Research Process, which addresses everything from tools to incentives. You can read more about MRF in my July 16, 2009 post. The Bill and Melinda Gates Foundation has funded a collaborative research consortia comprising 165 investigators globally to accelerate HIV Vaccine Development. For both MRF and the Gates Foundation, collaboration is reducing time-to-a-cure.

Foundations are by no means the only funders favoring and, in some cases, insisting on collaboration among non-profits that they support. In some cases, funders use a heavy hand in forcing organizations to share resources or join forces. But ordering people to collaborate misses the point. The most successful non-profit collaborations are those in which non-profits and their funders collaborate to achieve common goals.

This is exactly what’s happening with San Francisco’s Tenderloin Technology Lab, which provides computer and Internet access plus instruction to disadvantaged people looking for jobs. Because most jobs require online applications, people struggling with keeping a roof over their heads are often shut out of the job market. The lab is a collaboration among St. Anthony Foundation, San Francisco Network Ministries and the University of San Francisco. Beginning in 2001, USF was providing computers and other support to the two organizations’ separate computer labs. As demand rose with the economic downturn in 2008, USF collaborated with the two organizations to open a combined Tenderloin Technology Lab. The lab now serves a hundred people a day.

Last Thursday, I dropped into the Tenderloin Tech Lab as the collaborating organizations were unveiling an updated space. Rev. Stephen Privett, a Jesuit priest and president of the University of San Francisco, described the collaboration among UCSF, St. Anthony Foundation and San Francisco Network Ministries as three legs of a stool. “Without the three legs, the stool doesn’t stand. We can get a lot more done together than we can separately.” I chatted with Craig Newmark, founder and customer service representative, of craigslist, which supports the lab. (Yes. Craig’s business card includes both titles.) Craig praised the lab for delivering real results to real people. “One thing you learn doing customer service is what’s real,” he insisted.

Shifting from competing to collaborating can create substantial value for non-profits and the people they serve. “It involves putting down our egos and saying we can do this better,” according to Cissie Bonini, director of programs for St. Anthony Foundation, which began feeding San Francisco’s needy in 1950. And the private sector can take a cue from this non-profit collaboration. When we put our egos aside, we can share more, internally compete less—and create far greater value.