A recent article in Strategy+Business (a magazine published by booz&co) notes the pitfalls of open collaboration: tapping into the power of emergent, bottom-up social networks to generate innovation. The companies that have been successful with it are well known: IBM with its innovation jams, and P&G with its open innovation strategy. But other companies often struggle to realize the benefits. The article’s basic premise is that open collaboration is similar to the “quality” movements of the 1980s (remember TQM?) The article notes:
Today, practitioners of open collaboration are picking up, in some ways, where the quality movement left off. They are working to tap the knowledge and creativity of a broad range of constituents, including employees and suppliers. In the process they are also rethinking their organizational structures and systems. Most important, at the core of both the quality and open collaboration movements (and sometimes it’s unclear where one leaves off and the other begins) are the values of trial-and-error learning, open communication, and systems thinking. Both movements recognized that employees — given the right tools, training, and management environment — are in the best position to do the analysis needed for meaningful improvement and innovation.
So what held back the quality movement? Hierarchical thinking; truly listening to the ideas of the rank and file; making the long-term commitment to professional development and cultural change. Of the seven suggestions the article lists for better success, I found three compelling: (1) Build a culture of trust and open communication; (2) Build a flexible innovation infrastructure; (3) Align evaluations and rewards.