1 net gains © 2009 by innovation network for communities. all rights reserved. net gains: using...

1 • Net Gains• © 2009 by Innovation Network for Communities. • www.nupolis.com • All Rights Reserved.

Net Gains:Using Networks to Increase

Social Impact

Center for Network Impact

Innovation Network for Communities

(www.nupolis.com)

November 2009


Center for Network Impact (CNI)

CNI is an incubation project of the Innovation Network for Communities, under the leadership of Madeleine Taylor and Peter Plastrik.

INC organizes production networks that design, prototype, launch, and scale place-based social innovations. Its national networks focus on developing innovations for national distribution. Its place-based networks focus on organizing social innovation capacity in specific communities or regions.

Madeleine Taylor: 617-524-9875, [email protected]

Pete Plastrik; 231-448-3169; [email protected]

John Cleveland; 616-240-9751; [email protected]

The CNI mission is to accelerate and spread the development and use of networks to support positive social change.


Net Gains Handbook

• “A Handbook for Network Builders Seeking Social Change”• Written by Madeleine Taylor and Peter Plastrik• Available for download from the CNI website –

www.nupolis.com/public/item/220020

Since 2003, Taylor and Plastrik have

•Researched, written about, consulted with, and developed tools for nonprofit organizations, individuals, and foundations that use network approaches to advance social change.

•Engaged in a set of “deep practice sites” with networks for community-development; service-providing; public policy development and advocacy; and social innovation development.

•Developed explanatory frameworks and practical tools, including the Network Health Scorecard (2009).


Contents

• Basic Network Concepts

• Different Types of Networks

• Designing a Network

• Managing a Network


Basic Network Concepts


What Is A Network?

Networks for Personal or Social Ends

– Personal Ends: individual networks for own use

– Social Ends: many individuals network to achieve collective goals

A Social Network For Social Ends is…– Not a market, which depends on individuals making

buy-sell transactions with little necessary connection with each other

– Not an organization, which relies on a formal structure and delegated chain of command


Networks vs. Organizations

• A network has less formal structure than an organization and it is more fluid

• Participation is voluntary

• Network participants have a high degree of freedom to make choices

• Decision making is distributive in nature, not centralized

• Participation is as needed, not full time


Organizations have bosses

Networks have coordinators

Networks vs. Organizations

(Courtesy of Madeleine Taylor)


A Spectrum of Interdependence

Formality of Structures

Level of Interdependence

HIGH

LOW

LOW HIGH

Organizations

Networks

Markets


Making the Choice

An Organization is Best If…

A Network is Best If…

• The work is relatively predictable

• It requires concentrated expertise over time

• Producing value requires highly stable relationships between players

• Work involves a lot of proprietary information

• Resources allow you to pay full time for all of your talent

• The work is likely to change rapidly

• You need access to a very broad range of diverse relationships

• The work that is being done can be conducted by “episodic” interactions

• Much information can be shared freely

• The resources you need cannot be purchased on a full time basis


Network Structure = Patterns of Nodes & Links

SOCIAL NETWORKS: – “Nodes” are people or

organizations– “Links” are relationships



Some Common Network Structures

Hub and Spoke. Many nodes connect to a single central hub.

Dense Cluster. A number of nodes are all connected to each other.

Branching. A series of clusters are connected to each other through spokes

Many Channels. Many nodes connect to each other in a variety of configurations.

Peter Plastrik and Madeleine Taylor, “Network Power for Philanthropy and Nonprofits”, February, 2004


Anatomy of Network Relationships

LinkNode Node

What Flows Through It (Sources of Value

to Members)•Connections•Knowledge

•Competencies•Resources

What Makes It Work•Trust

•Reciprocity•Diversity

•Complementarity


What Networks Are Good At

—Efficient search for information and ideas

—Rapid growth, diffusion

—Efficient “small-world reach” to connect with others & resources

—Build capacity that is flexible, diverse

—Resilience to shock/change

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Efficient Search



Rapid Growth and Diffusion


Leveraging otherpeople’s connections


Small World Reach


Finding people & resources beyond your “horizon” of connections


Adaptive & Flexible Capacity



Resilience



Different Types of Networks



Allow easy flow of information and

relationships

Develop and spread a shared

point of view

Foster joint action for specialized

outcomes



Feature Connecting Aligning Producing

Value Proposition

I can connect faster to many other people

I can build a sense of shared identity and purpose

I can produce desired outcomes more effectively

Role of Network Builder

Weaving—helping people meet each other, increase ease of sharing and searching for information

Facilitating—helping people to explore potential shared identity and value propositions

Coordinating—helping people plan and implement collaborative actions

Examples •Craig’s List•LinkedIn•Many informal networks

•Alumni networks•Professional associations

•MA Smart Growth Alliance•Green Building Production Network•Lead Abatement Network


Networks Can Focus On Many Different Outcomes

• Learning – Create and spread new knowledge

• Advocacy – Advocate for particular policies

• Innovation – Innovate to solve social problems

• Branding – Marketing, communications and shared branding


A Network Design Framework

Network Outcome

Network FunctionConnecting Aligning Producing

Learning

Policy & Advocacy

Innovation

Marketing & Branding

Etc.


Key Enabling Infrastructure By Type of Network

Type of NetworkConnecting Aligning Producing

• Members-only Web site with networking tools

• Meeting planning & facilitation

• Shared calendaring

• “Opt In” learning processes

• Member input systems

• Collaborative work processes + Web site

• Capacity to analyze, compare, and synthesize frameworks, definitions, etc.

• Formal decision-making processes to “endorse” alignment mechanisms (e.g., standards)

• Capacity to negotiate production agreements among members

• Project management and project budgeting capacity

• Formal governance of all producers

• Performance accountability mechanisms

• Pricing and marketing capacity

• Sales, fulfillment, & financial management


Designing A Network


Network Design Questions

1. What kind of network do you want to build?

2. What is the “value proposition” that attracts people and organizations to participate?

3. What is the initial membership?

4. How should the network be governed?

5. What should the network structure be?

6. How will the network be funded?

7. What are the operating principles?

8. Who will build the network?


1 – What Kind of Network?

• Design the network to serve the function, not the other way around

• Take time to really clarify what the purpose of the network is – especially to articulate the core hypotheses you want to test


2 – What is the Value Proposition?

Funders often:•Overestimate the power of their value proposition to attract members to a network.

•Rush development and skip necessary steps in network building (especially connectivity and alignment).

•Don’t recognize the full costs of network development.

•Become the controlling hub rather

than an enabler.

“Networks that are formed as the result of

external, especially donor-driven, impetuses are less sustainable in

the long run than networks that evolve

organically out of existing partnerships.”

Beware of funding as a core value proposition!


2 – What Is the Value Proposition?

• The value proposition needs to be clearly focused on the capacity to have significant impact by working together rather than separately.

• The network builder needs to take the time to fully explore and vet the value proposition with potential members.

“If there’s no value, people will start to exit. It’s a self-regulating system.”

(Bill Traynor, Lawrence Community Works)


Sources of Network Value

Sharing connections

Sharing knowledge

Sharing competencies

Sharing resources


3 – Who are the Network Members?

• Networks can be “open” or “closed” – Production networks are typically “closed”

• Membership needs to be aligned to the goals and required capacities– Sometimes members lack the capacity to

achieve their goals

• There can be different categories of members (core; affiliate; peripheral; etc.)


Some Criteria for Membership

• Shared commitment to the network purpose

• Expertise or competence in key content areas

• Connections that matter

• Capacity to collaborate

• Being a good “network citizen”


4 – How Will the Network be Governed?

Who decides?•Steering group•All members•Elected members•Other arrangements

What is decided?•Purpose•Objectives/goals•Values & beliefs•Membership criteria•Member responsibilities•Plans and strategies•Distribution of resources

How is it decided?•By outsiders•By consensus•By democratic vote•By action (emergence)


5 – What Will the Structure Be?


6 – How Will the Network Be Funded?

• Operating grants

• Member fees

• Project fund raising

• Volunteer time and sweat equity


7 – What Are the Operating Principles?

• Make the network do the work.– Minimize “delegation” opportunities

• Let connections flow to value.

• Let variation create unplanned opportunities.

• Keep plans flexible.


8 – Who Will Build the Network?

Some Different Roles of Network Builders

Organizer Establish purpose and value proposition; connect first nodes; attract initial resources.

Funder Provide initial and growth resources.

Weaver Increase connections among nodes; connect to new nodes.

Facilitator & Coordinator

Help establish shared value proposition; negotiate action plans for production; coordinate production.

Coach Advise organizers, weavers, facilitators and coordinators.


Managing a Network


Network Management Tasks

1. Weaving connections within the network and between the network and other players.

2. Facilitating alignment that leads to “production agreements.”

3. Coordinating the actual work of connection, alignment, and/or production, and network development.

4. Operating the network and handling management issues.

5. Monitoring and evaluating network development and performance.


“Trust is the glue that holds networks together.”

• Trust is built by:

– Increasing the bandwidth of information that flows between nodes

– Experiencing reciprocity

Trust is personal.

Trust is the core network asset.


Weaver Roles

• “Weavers” act like brokers – connecting players together; keeping their ears to the ground; fixing problems; helping members maximize the value they receive

• Weavers need to both know about network building, and have standing in the content area of the network


“Planning eventually degenerates into work.”

• Work plans are the core of production network value propositions.

• Within the voluntary, collaborative structure of a network, production responsibilities need to be very clear.

• It is often very useful to have an “outsider” negotiate and structure these relationships.


Management Issues That Will Need Attention

Balancing between the needs of the “parts” and the “whole.”

Balancing node autonomy with collective control.

Balancing stability and change.

Ensuring effective communications.

“Policing” the network.


Managing Money Issues

• Network resources can come from in-kind; grants; selling services; and member funding.

• “Sweat equity” is key to most network development.

• Economic relationships within the network need to be very clear.

“The allocation of funds, once raised, can be potentially contentious, if the relationships among members have not been

well formed, and if agreements for the division of resources have not been reached in an open and transparent fashion.”

(Heather Creech, “Form Follows Function”)


Network Evaluation

• Assess for multiple dimensions:– Connectivity (What flows? Between whom? How

well?)

– Network health (membership; involvement; diversity; unplanned benefits; financial health)

– Outcomes (what was produced; at what quality levels; at what cost)

• Focus on member value – avoid being funder-centric

• Build in the assessment design early• Use network mapping for visual display


At First It Might Feel Like This…


But Persistence Pays Off!

1 net gains © 2009 by innovation network for communities. all rights reserved. net gains: using...

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