Tuesday, November 25, 2008

A good paper by Ronald S. Burt on brokerage-based innovation model:
Brokerage across the structural holes between groups provides a vision of options otherwise unseen, which is the mechanism by which brokerage becomes social capital.
The organization is rife with structural holes, and brokerage has its expected correlates. Compensation, positive performance evaluations, promotions, and good ideas are disproportionately in the hands of people whose networks span structural holes. The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable.

People connected to groups beyond their own can expect to find themselves delivering valuable ideas, seeming to be gifted with creativity. This is not creativity born of genius; it is creativity as an import-export business. An idea
mundane in one group can be a valuable insight in another.

A positive side effect for an enterprise-wide social network could be a clear map of structural holes within the organization. By analyzing connections between groups and people we could identify most valuable avenues for internal and external innovation. Especially so, if the company's suppliers and customers can be viewed/represented as a part of the network.

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