The value of being a network company
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The document discusses the concept of network companies (NCs) which emerge from collaborations among startups and entrepreneurs. Key values of NCs include lack of hierarchy, autonomy, mutual support, and innovative methodologies, enabling collective growth and brand expansion. The text emphasizes the dynamic nature of NCs as inclusive ecosystems that foster resilience and collaboration among members while navigating challenges.
![These are some of the values Network Companies normally share:
1. No Center or Hierarchy: One of the big evolutions of NCs is about
leadership. Members of NCs don´t need a single leader or VIP group. They seem to
be able to wisely rotate leadership according to the circumstances and trust all
members for their experience and knowledge and not for their "power" positions.
Hierarchy does not make any sense in a live network that is capable of adapting2
organically to different challenges and situations, it would make it rigid, slow and at
the same time, vulnerable. Having no center or hierarchy is the key for NCs to
evolve and become sustainable in every sense.
2. Autonomy and Entrepreneurship: One of the most powerful values to share in
any organization is the capability of self-determination towards interdependence.
Interdependence relates to the possibility of growing and taking risks together with3
one or more entrepreneurial partners. In this case, Autonomy helps make internal
2
corporate hierarchy : The organizational structure of a company that delineates the relationships of
power, responsibility and function among stakeholders, management and employees and generally
reflects the style of management that permeates the organization. For example, a company with
flat hierarchy in which a larger number of managers report directly to the CEO is considered to
have a "partnership" approach to management and compensation.Read more: http://
www.businessdictionary.com/definition/corporate-hierarchy.html#ixzz3xRl8TeXe
interdependence theory : A theory that seeks to analyse the causal determinants of dyadic social3
behaviour by providing a systematic classification of certain key properties of interpersonal
situations or interactions and of the individuals' responses to them. It was first proposed by the US
social psychologists Harold H. Kelley (1921–2003) and John W(alter) Thibaut (1917–86) in their
book The Social Psychology of Groups (1959) and developed in Interpersonal Relations: A Theory
of Interdependence (1978), and Kelley extended it further in an article in the Journal of Personality
and Social Psychology in 1984. In the theory, the nature of the interdependence between two
individuals depends on the manner in which each can influence what happens to the other during
the course of the social interaction, and this is called ‘outcome interdependence’. See behaviour
control, fate control. IT abbrev. [From Latin inter between+dependere to hang from, from de from
+pendere to hang+entia indicating an action, state, condition, or quality]](https://image.slidesharecdn.com/thevalueofbeinganetworkcompany-160117173859/85/The-value-of-being-a-network-company-2-320.jpg)
![6. Multiple Business Models: Generation and growth of business
opportunities may come from any member of the network and can be replicated or
even scaled by any other member. In contrast to Franchising systems, the mutual
support in Business Model creation and escalation benefits the whole network and
not just the creator of the model. These models
can evolve and improve freely inside the
network and adaptation of the model to new
markets and customer segments happens
under the control of the members with the
support of their local stakeholders. Business
development and internal hirings are decided on
a collective basis where two or multiple
members agree on an specific business model
for each project or set of services.
7. Multiple Sub-network Collaboration Schemes: Sub-networks help
organic systems evolve in terms of adaptability and implementation. Like
subcultures do, sub-networks encourage the specific interaction of members5
around common interests and business opportunities in different moments. Sub-
networks open the possibility of specific lines of business, long term projects with
government institutions and corporations, internal financial support and hiring,
talent exchange and stronger response to complex endeavors .6
Being an Inclusive Organic Ecosystem, NCs tend to be open for enthusiast's
participation in the form of clients, online fans, event attendees, information
replicators, and other forms of engagement. This factor rapidly creates a sense of
community and reinforces the feeling of creating a Movement . All these emotional7
connections with individual participants help building resilience and cohesion,
especially in the first stages of the company.
A cultural group within a larger culture, often having beliefs or interests at variance with those of5
the larger culture. The behaviour and beliefs of a particular group of people in society that are
different from those of most people. Oxford Dictionary online, Oxford University Press.
As the level of complexity and the rate of change experienced by the organization increases, the6
future, both immediate and longer term, becomes less clear. The question faced by the designer
ultimately becomes, “What circumstances do we use to evaluate and determine if the design of a
particular organization is working or not?” the response to this assessment challenge is usually to
add more “scenarios.” ALBERTS, David S.. Rethinking Organizational Design for Complex
Endeavors. Journal of Organization Design, [S.l.], v. 1, n. 1, p. 14-17, may 2012. ISSN 2245-408X.
Loosely organized but sustained campaign in support of a social goal, typically either the7
implementation or the prevention of a change in society’s structure or values. Although social
movements differ in size, they are all essentially collective. That is, they result from the more or
less spontaneous coming together of people whose relationships are not defined by rules and
procedures but who merely share a common outlook on society. 2016 Encyclopædia Britannica
Online.](https://image.slidesharecdn.com/thevalueofbeinganetworkcompany-160117173859/85/The-value-of-being-a-network-company-4-320.jpg)
The value of being a network company
- 1. The Value of being a Network Company Jorge Rodriguez Nieto Partner DesignThinkers Group Spain Director Master en Investigación para el Diseño y la Innovación Elisava Escuela Universitaria de Diseño e Ingeniería - Universidad Pompeu Fabra Barcelona For the last two years, our colleagues from different countries have come to Barcelona for our DesignThinkers Group annual global meeting. It is a great feeling to get together with very talented people that share your values, ideas and dreams and who are also are willing to share their experiences during the year to bring to life new collaborations and projects. Big energy moves the gathering. Future projects, business proposals and great ideas pop up all the time with some of them becoming part of our yearly plan. All this happens framed in an interesting set of values only Network Companies currently activate. Revisiting one of my favourite methodologies developed inside DTG the Think like a Start Up Game canvas, some of these values come to my mind as a cascade. But before we go too far, we should define what a Network Company is. NCs grow1 from the collaboration between startups and entrepreneurs who enjoy working together, keep their individuality but commit to a community of peers to walk a similar path. We could say it is a next step for collaborators that go really well together and share strong values. It would be fair to say NCs are born from active networks (as it is their vital structure) but not grown into a network from a single initiative. Network organization definition A group of legally independent companies or subsidiary business1 units that use various methods of coordinating and controlling their interaction in order to appear like a larger entity. In a business context, three main types of network organization are typically seen: (1) internal where a large company has separate units acting as profit centers, (2) stable where a central company outsources some work to others, and (3) dynamic where a network integrator outsources heavily to other companies. Read more: http://www.businessdictionary.com/ definition/network-organization.html#ixzz3xRkQ92KV
- 2. These are some of the values Network Companies normally share: 1. No Center or Hierarchy: One of the big evolutions of NCs is about leadership. Members of NCs don´t need a single leader or VIP group. They seem to be able to wisely rotate leadership according to the circumstances and trust all members for their experience and knowledge and not for their "power" positions. Hierarchy does not make any sense in a live network that is capable of adapting2 organically to different challenges and situations, it would make it rigid, slow and at the same time, vulnerable. Having no center or hierarchy is the key for NCs to evolve and become sustainable in every sense. 2. Autonomy and Entrepreneurship: One of the most powerful values to share in any organization is the capability of self-determination towards interdependence. Interdependence relates to the possibility of growing and taking risks together with3 one or more entrepreneurial partners. In this case, Autonomy helps make internal 2 corporate hierarchy : The organizational structure of a company that delineates the relationships of power, responsibility and function among stakeholders, management and employees and generally reflects the style of management that permeates the organization. For example, a company with flat hierarchy in which a larger number of managers report directly to the CEO is considered to have a "partnership" approach to management and compensation.Read more: http:// www.businessdictionary.com/definition/corporate-hierarchy.html#ixzz3xRl8TeXe interdependence theory : A theory that seeks to analyse the causal determinants of dyadic social3 behaviour by providing a systematic classification of certain key properties of interpersonal situations or interactions and of the individuals' responses to them. It was first proposed by the US social psychologists Harold H. Kelley (1921–2003) and John W(alter) Thibaut (1917–86) in their book The Social Psychology of Groups (1959) and developed in Interpersonal Relations: A Theory of Interdependence (1978), and Kelley extended it further in an article in the Journal of Personality and Social Psychology in 1984. In the theory, the nature of the interdependence between two individuals depends on the manner in which each can influence what happens to the other during the course of the social interaction, and this is called ‘outcome interdependence’. See behaviour control, fate control. IT abbrev. [From Latin inter between+dependere to hang from, from de from +pendere to hang+entia indicating an action, state, condition, or quality]
- 3. agreements possible, knowing that each unit decisions may have positive or negative consequences on the other partner(s). 3. Mutual support and unlimited expertise: Networks have the amazing power of connecting people who have very valuable expertise. In NCs, that expertise is offered to all the network in the form of support to projects, big contracts and major commitments. As the network grows, this wide catalog of capabilities helps cover most (if not all) clients needs and requests from within the NC. 4. Collective Brand Expansion through Global Team Presence: Either if the territory is regional, national or global, this is a very useful form of brand positioning through the effort of multiple teams and enthusiasts at a very low cost. The investment in brand positioning is distributed in many small contributions from the participants of the network. The Brand awareness is a Storytelling told by many4 and based on their own experiences and perceptions. An initial guidance and design is required, but once the viral the effect is activated, the presence of the brand is perceived as a big multinational company. When the brand becomes a collective property, it generates a strong sense of belonging and commitment. 5. Constant Methodological Innovation and Permanent Knowledge Growth: Knowledge management is a huge opportunity and poses challenges for NCs. Having no center allows NCs to research and improve methods from very different points of view or using many types of different resources. When this knowledge runs across the network, each unit´s expertise and environment transforms it, improving it and enriching the contents and methods. Innovation methods per se require research and implementation to improve and refine, so NCs offer a perfect structure that allows circulation and constant learning when applying and perfecting methods simultaneously by different members of the network. When this information is documented and spread inside the network, new methods and tools appear as result of projects and discussion. Innovating methods and tools appears to be spontaneous and natural in this environment. The opportunities for growth and change are also related to the fact that most members of NCs are entrepreneurs and Startups where change happens more rapidly than in larger corporations. Brand awareness definition: Extent to which a brand is recognized by potential customers, and is4 correctly associated with a particular product. Expressed usually as a percentage of target market, brand awareness is the primary goal of advertising in the early months or years of a product's introduction. Read more: http://www.businessdictionary.com/definition/brand- awareness.html#ixzz3xRoUEqqG
- 4. 6. Multiple Business Models: Generation and growth of business opportunities may come from any member of the network and can be replicated or even scaled by any other member. In contrast to Franchising systems, the mutual support in Business Model creation and escalation benefits the whole network and not just the creator of the model. These models can evolve and improve freely inside the network and adaptation of the model to new markets and customer segments happens under the control of the members with the support of their local stakeholders. Business development and internal hirings are decided on a collective basis where two or multiple members agree on an specific business model for each project or set of services. 7. Multiple Sub-network Collaboration Schemes: Sub-networks help organic systems evolve in terms of adaptability and implementation. Like subcultures do, sub-networks encourage the specific interaction of members5 around common interests and business opportunities in different moments. Sub- networks open the possibility of specific lines of business, long term projects with government institutions and corporations, internal financial support and hiring, talent exchange and stronger response to complex endeavors .6 Being an Inclusive Organic Ecosystem, NCs tend to be open for enthusiast's participation in the form of clients, online fans, event attendees, information replicators, and other forms of engagement. This factor rapidly creates a sense of community and reinforces the feeling of creating a Movement . All these emotional7 connections with individual participants help building resilience and cohesion, especially in the first stages of the company. A cultural group within a larger culture, often having beliefs or interests at variance with those of5 the larger culture. The behaviour and beliefs of a particular group of people in society that are different from those of most people. Oxford Dictionary online, Oxford University Press. As the level of complexity and the rate of change experienced by the organization increases, the6 future, both immediate and longer term, becomes less clear. The question faced by the designer ultimately becomes, “What circumstances do we use to evaluate and determine if the design of a particular organization is working or not?” the response to this assessment challenge is usually to add more “scenarios.” ALBERTS, David S.. Rethinking Organizational Design for Complex Endeavors. Journal of Organization Design, [S.l.], v. 1, n. 1, p. 14-17, may 2012. ISSN 2245-408X. Loosely organized but sustained campaign in support of a social goal, typically either the7 implementation or the prevention of a change in society’s structure or values. Although social movements differ in size, they are all essentially collective. That is, they result from the more or less spontaneous coming together of people whose relationships are not defined by rules and procedures but who merely share a common outlook on society. 2016 Encyclopædia Britannica Online.
- 5. Many different values are shared and exchanged in this kind of ecosystems, where personal interaction and professional connection are the most exciting parts of day- by-day work. Which may be the challenges NCs find on their journeys ? Which are the odd circumstances and how do NCs overcome them? Lets keep the conversation going in my blog https://jorgerodrigueznieto.wordpress.com/ or my company blog at: https://algobuenobcn.wordpress.com/