All Organizations Are Social, But Few Are Social Organizations

Any organization with more than one person in it is social. And the argument could be made that any enterprise, even of one, which requires contact beyond its own boundaries is inherently social.

But as the title implies, that does not necessarily make it a social organization. The difference lies in the way the people who work for it are organized, incentivized, managed, encouraged to interact with each other - and with anyone outside who might help or distract them from achieving their objectives.

The point is that being social doesnt just happen. Just as global and profitable and growing are not organic factors implicit in the declaration of existence, so accomplishing an economic goal requires determination.

Recognition of need is a first step. Identification of the means, the effort necessary to create cooperation and collaboration and the methods invented, designed, found or inspired to actually make it happen are similarly essential. The challenge is that the same system rarely works twice. Heck, sometimes it doesnt even work once and demands continual tinkering.

The crucial implication is one of intent. Just as a contemporary institution may operate globally but not be global, so it may also be social in how it perceives itself and in the goals to which it aspires. But the effects of becoming a social organization are disruptive. They can - and should be - costly. And their impact has to be measurable especially if they are expected to become long-lasting and sustainable.

All of which requires management attention and investment. The benefits of being a social organization can be significant. But there are actual costs to realizing the benefits. And it does not pay to underestimate them. JL

Anthony Bradley and Mark McDonald comment in Harvard Business Review:

News flash: Organizations consist of people. How well an organization works depends on how its people interact and work together. Thus, every organization is "social." But so what? How do we make use of this universal fact? Organizations work top down through social interactions structured around the organization chart, or hierarchy. And they work end to end structured around their business processes. These two dimensions — hierarchy and process — shape the way organizations see the world, its challenges and, more importantly, the portfolio of potential solutions to those challenges. There is nothing wrong with hierarchy or process. They are effective organizational approaches to managing complex operations.

But there is a crucial third dimension to organizational effectiveness. We see this when people get things done by working in the so-called "white space" in the organizational structure, or by working across the "seams" of a business process. In their ways of working and connecting with each other, they do more than just what they are told top-down and more than what is defined as their job. This is the social dimension.

Every organization has a social dimension. The challenge is that the social dimension is not accurately reflected in either the organization's hierarchy or its process flow. For years, social systems were described not as valuable systems to tap into, but as limits on innovation and change. We gave these systems names like culture, core beliefs, norms, tradition, shared thinking, or "just the way we do things around here" — each term describing factors that are so slow to change as to become assumptions that limited either strategy or operations. This was great if you had a positive and successful culture, and a death sentence if you did not. In response, executives relied on organizational command-and-control or process prescription to run the enterprise and effect change because there was no way to readily and repeatedly access the power of the organization's social systems.

But what if leaders could create a future where customers, associates and suppliers are no longer seen as objects in the system but as valued sources of innovation, ideas and energy? What if they could truly tap into the creativity, knowledge and experience of their organization's people? What could possibly enable such a transformation?

The answer is social media. And before you roll your eyes, let us say that we know very well that accessing your social potential requires moving beyond simple social media solutions such as blogs, wikis, etc., to truly changing the way your organization works. This means becoming a social organization.

A social organization mobilizes its people — from associates to customers, suppliers and others without regard to hierarchy or position — and their interests, passions, knowledge and experience. Tapping into the collective wisdom of everyone creates a new source of competitive advantage, agility and future innovation.

A social organization is one that is able to address significant business challenges and opportunities through creating this "mass collaboration." This collaboration extends well beyond common social media to enable employees, customers, suppliers and all other stakeholders to participate directly in the creation of value.