Introduction

Complex problems are increasingly solved by leveraging the resources of purposeful collaborative networks, such as strategic alliances and public-private partnerships. Innovation and economic growth of all kinds are occurring through collaborative networks. The practical experiences and research of The Rhythm of Business have provided us with great conceptual and operational insight into collaborative networks. Traditional roles, policies, and measures can work at cross-purposes to creating an environment conducive to collaborating. Most simply, a collaborative network is innovative organization design which necessitates rethinking structure, governance, and ways of relating among participants.

Organizations and individuals that develop expertise in working in collaborative networks represent the future of how work is done. The reality is that most people are more familiar with working in silos and are more comfortable with traditional organizational hierarchies and boundaries. Our approach to collaborative network design and governance acknowledges this fact and makes it a priority to demonstrate the increased value a well functioning collaborative network can provide to all participants. We work under the assumption that organizations and people only actively engage in collaboration when the benefit they derive is greater than the time, effort, and other resources it takes to collaborate.

To address the fit for purpose of collaborative networks, we’ve developed a network design model that helps customize each network to satisfy its unifying purpose.

Collaborative Network Design

An organization’s design must be specific for the task at hand. We use the model below to guide its shaping of all types of collaborative networks:

Network Design Model

The unifying purpose is why the collaborative network comes together. In other words, the innovation the network is designed to pursue, which then determines its strategy.

The value proposition describes the exchange of goods, services, information, and other resources that occurs within a collaborative network. Essential to the value proposition are relationship currencies. These are the capabilities, expertise, insight, and access one can get only as a result of having a relationship.

The economic opportunity describes how well the network has established a way of capitalizing on the value proposition, including the collective currencies the network members.

The organizing mechanism is the method through which the people and entities that are members of the network come together and govern themselves. A choreographed mechanism implies that participants are selected by the network organizer (the choreographer) and that entity determines the criteria for participation and organizes (guides) the work of the network.

The collaboration intensity is defined by the degree to which activities are coordinated, information of appropriate relevance, quality and timeliness is shared, and participants’ resources are leveraged for the benefit of all parties. The intensity of the collaboration is dependent on the nature of the resource leverage sought. The more one seeks to gain from the network, the greater the collaboration intensity needed.

Specialization

A key characteristic of collaborative networks is their ability to bring together the right specialist organizations in a seamless and non-bureaucratic manner. They also appreciate that collaboration is a continuum, not an-all-or nothing proposition. Thus, each collaborative network has unique features, especially assembled to achieve its purpose. Today, organizations operate as a network of networks, accomplishing their purpose by:

• Allowing structure to be determined by strategy. If the strategy changes radically, the structure may need to change. It may also need to evolve as a partnership moves through its lifecycle
• Forming sub-networks that collaborate to achieve a particular aspect or element of the network’s purpose, and which disband once the purpose is achieved. The work of the network is accomplished through networks. Some will essentially be permanent because of the nature of their purpose. Others will be much more ad-hoc
• Developing functional excellence in the management of networks

Think of the organization as a network of networks – each of which exists only to achieve a specific purpose. The governance and accountability dimensions of the management methodology are designed to achieve that purpose with increasing excellence. This a significant departure from traditional organization design, and is indicative of the innovativeness management must demonstrate to achieve its objectives.

The Choreographer

Networks that have a commercial or business purpose generally require a highly choreographed organizing mechanism. The choreographer is the organizer and leader of the network. In strategic alliances, the alliance managers should assume this role, together with key functional leaders. The authority of the choreographer is directly related to the degree of resource leverage required within the network to achieve its unifying purpose. Much of the authority the choreographer derives is from the value it creates for network members. The greater the resource leverage sought, the stronger the choreographer must be, and the greater the value creation it must facilitate.

The choreographer’s job is to organize and engage the network members in the work required to realize the purpose of the network. As such, it is responsible for ensuring the members receive the value they seek and that they contribute appropriately to the network.

The choreographer guides the network to achieving its purpose through the implementation of a management system specifically designed to achieve the purpose of the network. Thus, it is designed to facilitate the necessary intensity of collaboration so that the value proposition inherent in any single relationship may be realized as the network pursues its unifying purpose.

A few of the key responsibilities of the choreographer include:

• Maintaining continuity of intentions, motivations and relationships
• Having a single, comprehensive view of the network
• Facilitating communication and decision making
• Pre-empting issues, facilitating conflict resolution, managing escalation
• Managing governance and accountability structures and processes

High Performing Collaborations

Key elements of this management methodology include fostering effective collaboration and building an environment conducive to achieving the strategic intent. Too often collaboration is misunderstood to mean the simple act of working together, or worse, just being nice. Collaboration is a purposeful and strategic activity that produces results through:

Coordinating Activities – The activities of the network must be sufficiently coordinated to plan and execute in a timely manner

Communicating Information – The right information needs to be communicated to (available to) the right person at the right time to appropriately inform and ensure timeliness and agility in decision making

Leveraging Resources – The financial, people, knowledge, and relationship resources/currencies of all network members need to be properly utilized in pursuit of the unifying purpose of the networkThe management methodology must also support an environment that is conducive to collaborating.

Governance – Most simply, governance is how collaborating organizations manage joint work. The composition and operation of governing bodies, such as executive committees, operating committees and working teams, as well as their relationship to one another is generally all that is thought of as governance. Governance also includes:

• Decision making processes and authority
• Communication protocols
• Conflict resolution processes
• Intellectual property procedures
• Evaluation and improvement regimens that encourage excellence

Accountability – The operating norms of the network that recognize the interdependency of the network members, and encourage acceptance of responsibility for individual actions and inactions. Accountability functions together with governance to ensure the network is on a path to success

Trust and transparency – The network members must operate with the appropriate degree of openness relative to the collaboration intensity the network requires, demonstrate trustworthiness in their actions, and trust that other members of the network will behave in a similar fashion

Key to network governance and management is the use of common principles and guidance, processes, and tools across the network. This management framework defines “goodness” within the network, but also empowers local participants to do what will further the purpose of the network in a particular situation. This frame is what allows independent, just-in-time decision making to flourish, without jeopardizing the network’s agreed upon strategy. It encourages agility as network members can act without seeking authority. This helps to encourage innovation and balances the strengths and weaknesses of control and decentralization.