The Network
How Your Business Really Works
(Why Your New Office Design Doesn't)
Reprinted with Permission offficeinsight
- a news weekly for office professionals (*).
I can't imaging doing an adjacency study without
taking into account Karen Stephenson's work,- said Neil Frankel,
president of the IIDA, principal of Frankel + Coleman, and former
director of design for SOM Chicago.
The occasion was the 2nd annual IIDA International
Design Congress last November. Ms Stephenson was a featured speaker
at the event, the focus of which was "the future of interior
design." Her specialty is networks, the webs made of the invisible
threads through which much of an organization's communications and
knowledge are actually transmitted.
We are defined by our relationships. Identifying
those relationships and how they really work is Ms Stephenson's
business and profession. Networks are based on personal trust, says
Ms Stephenson, and are achieved largely through face-to-face encounters.
One of Ms Stephenson's many insights is that these "warm and
fuzzy" relationships are, in fact, the repository of much of
an organization's proprietary "how-to" knowledge and,
often, function as highly coercive structures used to monopolize
organizational resources. (The "old boys" had it right
all along.)
Ms Stephenson, trained as a cultural/corporate
anthropologist, spent the last 10 years at UCLA's Anderson School
of Business gathering -the worlds largest database of corporate
networks." Her findings have been published widely in Forbes, The
Economist, CIO Magazine, Fast Company, The Wall Street Journal and
the Financial Times, as well as many academic and professional journals.
Networks have their origin in tribal societies
and have always been part of the fabric of our personal and professional
lives. But now, after 20 years of research, experts have determined
that networks have predictable patterns which can be accurately
identified and diagnosed. A culture can be X-rayed for its networks.
Once identified, networks can be efficiently managed to affect the
rate and substance of any change and utilized to accomplish tasks
efficiently and effectively.
A network analysis will identify the Hubs,
Gatekeepers and Pulse-takers, a network's focal points or DNA. Want
to put out a message- Talk to the Hubs. Did your message get out?
Ask the Pulse-takers what they have heard. If it didn't, ask the
Gatekeepers why.
Studies of networks have considerable implications
for office design. Alternative office concepts advance the idea
that work environments should be designed to reflect how knowledge
workers really work. The theory is that this will facilitate flexibility,
innovation and productivity. Proof of benefits, however, is difficult
to obtain. One reason may be that our ideas of how people actually
work is incorrect, being derived from common sense and first generation
information gathering methods such as questionnaires, focus groups
and other 2 dimensional polling tools. Errors at this level make
accurate measurements impossible.
With the results of Ms Stephenson's work becoming
generally available some of these difficulties may be overcome.
And, every facility manager and interior designer can now look forward
to that long-sought-after, first meeting with a client's senior
executives, where the first question asked about the new office
plan will be: " How will this plan affect our networks?" Among the
subsidiary questions which immediately come to mind are:
How is network formation affected when employees
telecommute or work in hotelling environments'
Is it professionally sound to recommend alternate office structures
to an organization which wishes to retard change in order to process
accumulated knowledge?
Does traditional office design senior management
in formal offices and more junior employees in open systems represent
an appropriate, well balanced hierarchical/ networking arrangement
for many businesses?
What are the net efficiencies when facilities
managers/interior designers save real estate costs by moving employees
to new locations or different types of offices if, as a result,
needed networks are destroyed or prevented from forming?
What message is being sent when a CEO: (a)
moves his or her office to an open-floor design? (b) maintains his/her
office on the executive floor or retains the 4-walled, corner office?
Presume that the measurement of the effectiveness of your new "alternative
office" design shows very little benefit. Was the concept (hotelling,
teaming arrangements, etc.) wrong? Or was it poorly implemented?
Did the design poorly structure the teams? If so, whose responsibility
is it to assure that the design accurately reflects work relationships?
The implications and applications of the network
study conducted by Ms Stephenson and others is vast and go far beyond
usual concerns of office design. Here are a view samples from her
writings that indicate the range and importance of the areas touched
by her work:
Knowledge Capital: An organization?s intellectual
capital its collective knowl-edge and experience is its most valuable
asset. Knowledge capital is often untapped, however, because it
resides entirely within employees connected in invisible, "informal"
networks. NetForm [Ms Stephenson's business] enables an organization
to visualize and diagnose the informal networks and thereby leverage
the embedded knowledge capital for a variety of strategic initiatives.
Globalization: Homogeneity is a normal tendency. We pick and associate
with people who look and think as we do, masking a fundamental fear
of differences. But now that globalization is a key part of our
political and business lives, it will take a concerted and informed
effort for individuals to understand, appreciate and leverage interpersonal
and cultural differences into team productivity and profitability.
Competitive advantage may increasingly depend on integrating and
leveraging the latent strength of diverse organizational and global
networks.
Hierarchies: The organizational chart, so meticulously
planned and prominently displayed, often should be ignored. Hierarchies
form as rules and procedures harden and begin to define, rather
than guide, behavior. This facilitates the dissemination and use
of accumulated knowledge but, by its very nature, retards or stops
innovation, which is counter-cultural, unruly and dependent upon
nonlinear thinking.
Ms Stephenson's company, NetForm, gives seminars and training and
consults. Importantly, she and her colleagues have developed a sophisticated
but user-friendly software package, NetForm Network Analysis, that
can be used by non-specialists.
According to Ms Stephenson, NetForm is a diagnostic
tool which will provide a bird's-eye view of an organization's knowledge
capital and enable facilities managers, and interior designers and
others to analyze network structures along various dimensions: local
and global issues, across division boundaries, up and down hierarchical
levels.
It is quite possible that Ms Stephenson will
be one of the Pied Pipers leading the evolution of the interior
design profession into a multi-disciplinary practice in the 21st
century. Her data, organization and systematic analysis of networks
will be of particular interest to those interior designers, facilities
managers, corporate consultants, human resource executives who provide
strategic, planning or programming advice to the most senior executives
of corporations and other organizations.
Karen Stephenson received her Ph.D. in
Anthropology from Harvard University, an M.A. in Anthropology from
the University of Utah, and a B.A. in Art and Chemistry from Austin
College. She is the President and Co-founder of NetForm, Inc. She
can be reached at e-mail karen.stephenson@netform-int.com
(*)© 1999 KPL Communications,
Inc.
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