Real value creation happens at the edge

From Harold Jarche:

I think the edge will be where almost all high value work gets done in organizations. Core activities will be increasingly automated or outsourced. Most of the people in an organization will be on the edge. The core will be managed by very few internal staff.

This is a sea change, in my opinion. It means that change and complexity will be the norm in our work. We already see this with increasing numbers of freelancers and contractors. Any work where complexity is not the norm will be of diminishing value.

We need to embrace complexity and chaos, it’s where the future of work lies.

Adam Hartung: Why Steve Jobs couldn’t find a job today

From Adam Hartung:

Rather than search out growth, most businesses are still trying to simply do what their business has done for decades – and marveling at the lack of improved results…

But now we’re in the information economy… Today, value goes to those who know how to create, store, manipulate and use information.  And success in this economy has a lot more to do with innovation, and the creation of entirely new products, industries and very different kinds of jobs…

Unfortunately, however, we keep hiring for the last economy… While 1,500 CEOs say that creativity is the single most important quality for success today – and studies bear out the greater success of creative, innovative leaders – the study found that when it came to hiring and promoting practices businesses consistently marked down the creative managers and bypassed them, selecting less creative types!..

Until we start hiring promoting innovators we won’t have any innovation.  We must understand that America’s successful history doesn’t guarantee it’s successful future.  Competing on bits, rather than brawn or natural resources, requires creativity to recognize opportunities, develop them and implement new solutions rapidly.  It requires adaptability to deal with new technologies, new business models and new competitors.  It requires an understanding of innovation and how to learn while doing.

Rise of the networked enterprise

“McKinsey’s new survey research finds that companies using the Web intensively gain greater market share and higher margins…

“A new class of company is emerging — one that uses collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend the organization’s reach to customers, partners, and suppliers. We call this new kind of company the networked enterprise.

“Results from our analysis of proprietary survey data show that the Web 2.0 use of these companies is significantly improving their reported performance. In fact, our data show that fully networked enterprises are not only more likely to be market leaders or to be gaining market share but also use management practices that lead to margins higher than those of companies using the Web in more limited ways.”