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The Connected Company, by Dave Gray
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With a foreword by Alex Osterwalder.
The future of work is already here.
Customers are adopting disruptive technologies faster than your company can adapt. When your customers are delighted, they can amplify your message in ways that were never before possible. But when your company’s performance runs short of what you’ve promised, customers can seize control of your brand message, spreading their disappointment and frustration faster than you can keep up.
To keep pace with today’s connected customers, your company must become a connected company. That means deeply engaging with workers, partners, and customers, changing how work is done, how you measure success, and how performance is rewarded. It requires a new way of thinking about your company: less like a machine to be controlled, and more like a complex, dynamic system that can learn and adapt over time.
Connected companies have the advantage, because they learn and move faster than their competitors. While others work in isolation, they link into rich networks of possibility and expand their influence.
Connected companies around the world are aggressively acquiring customers and disrupting the competition. In The Connected Company, we examine what they’re doing, how they’re doing it, and why it works. And we show you how your company can use the same principles to adapt—and thrive—in today’s ever-changing global marketplace.
- Sales Rank: #107536 in Books
- Published on: 2014-12-13
- Original language: English
- Number of items: 1
- Dimensions: 9.02" h x .65" w x 5.98" l, 1.00 pounds
- Binding: Paperback
- 312 pages
Amazon.com Review
Anatomy of a Social Network
Network researcher Ron Burt has identified two types of activities that create value in small-world networks: brokerage and closure.
Brokerage is about developing the weak ties: building bridges and relationships between clusters. Brokers are in a position to see the differences between groups, to cross-pollinate ideas, and to develop the differences into new ideas and opportunities.
Closure is about developing the strong ties: building alignment, trust, reputation and community within the clusters. Trust-builders are in a position to understand the deep connections that bond the people together and give them common identity and purpose.
These two kinds of activity, bridging and trust-building, demonstrate two very different ways that people and organizations can bring value to a network: Bridging leads to innovation and trust-building leads to group performance. The value that comes from these activities is known as social capital. Like every other form of capital, social capital represents stored value—in this case, relationship value—that can be translated into meaningful and tangible benefits. The power of an individual node in any network can be considered along three dimensions: Degree, closeness and betweenness.
Degree is the number of connections a node has to other nodes; for example the number of people in your family, or on your team at work, or the number of “friends” attached to your Facebook account. For an organization it could be the number of sales affiliates or business partners.
The value of a high degree is potential: the potential to connect and interact with a great number of other nodes in the network.
Closeness is a measure of how easily a node can connect with other nodes. For example you are probably very close to your team at work because it’s easy to connect to them: you can contact any person at any time. But you might be further away from other people in your company. Some you might be able to catch by walking down the hall or popping into their office, while to see others you might need an appointment, or you might need to be introduced by a mutual acquaintance. Anyone who has tried to make a connection on LinkedIn knows that the greater the distance, the harder it is to make a connection.
The value of closeness is ease of connection: The shorter the distance between you and other nodes, the fewer network “hops” you need to make, the easier it is for you to make connections when you need to.
Betweenness indicates the degree to which a node forms a bridge or critical link between other nodes. For example, many executives are protected from distractions by executive assistants or secretaries who act as gatekeepers, who control access to the executive’s time and attention.
The value of betweenness is the power you have to block or grant access to others. The more nodes that depend on you to make connections for them, the greater your potential value to them and thus the greater your power.
Thus, the most powerful person or organization in any network is one that has a high number of potential connections, all of which are relatively close and thus easily accessible, while at the same time enjoying a position within the network such that it can choose to block or grant access to other nodes.
Review
"I was blown away by The Connected Company. Simply stated, I suspect it will go down as one of the most important management books of the early 21st century. It is a remarkable treatise on the new optimal organizational framework for businesses of the Information Age." - The Park Paradigm
If you buy only one business management book this year, make it this one. It's that good, and definitely timely.
Whether your organization chart stretches across continents or consists of just you, your smart phone and your computer, you can learn important insights and paths for new action from this well-written book. - Books, Books and More
About the Author
Dave Gray, SVP Strategy, Dachis Group, is an author and management consultant who works with the world's leading companies to develop and execute winning strategies. His previous book, Gamestorming (O'Reilly), has sold more than 50,000 copies and has been translated into 14 languages.
Thomas Vander Wal has been working with folksonomies since their darkest origins, and is credited with inventing the terms 'folksonomy'and 'infocloud'. He talks and writes about folksonomies more or less continuously. Thomas is also on the Steering Committee of the Web Standards Project and helped found the Information Architecture Institute. He lives in Bethesda, Maryland.
Most helpful customer reviews
22 of 27 people found the following review helpful.
Gems if you dig for them...
By renaissance geek
I'll start out by saying I'm not a natural business book reader; I come from a science background and while I have an interest in business I can't say that I've read in strategy books in the past. While I found a number of interesting ideas scattered through the book I found the overall presentation somewhat nebulous, unconvincing and ultimately unsatisfying. The basic theme of 18th century top down management processes just won't cut it in the fast paced 21st century is vitally important; though arguably painfully obvious. The trouble is you don't really need a whole book to tell you this; what you do need a book to tell you is how to put this into practice. What you get a couple of slim chapters at the end of the book with some vague pointers on how to build a more connected and responsive company and a vast quantity of anecdotes and comments from various business luminaries. And the jargon, oh my lord the jargon!
Realistically the book could have been half the size and lost no content and a slightly more formal approach with something akin to case studies rather than an anecdotal approach would have been enormously useful. There are some gems buried in the book and there are certainly many companies out there that would benefit enormously from taking these ideas on board but tidying up the wooly writing, tightening the architecture and losing the ersatz sketch diagrams would make it a much more satisfying read.
9 of 10 people found the following review helpful.
More business consultation from the Dachis Group
By Tom Sales
In April I reviewed "Social Business by Design" by EVP Dion Hinchcliffe of The Dachis Group, noting that Dachis seems well positioned to guide its clients into the social business realm. Now we have "The Connected Company" by Dave Gray, SVP of the Dachis Group, offering another perspective on how companies must engage their employees, partners and customers if they are to survive in an environment of continuous change. Hinchcliffe's book was distinctive in dedicating much less focus on the technology aspects of adopting social business than other books like it. Gray's book is even more focused on the business, cultural and motivational necessities if companies are to succeed.
Often technology and the sheer coolness of tech companies (Apple, Google, Facebook, Amazon) inspire business leaders to emulate them and all of us to wish we worked for companies like them. The focus in both of these books is on business strategy. The results of companies that have committed to getting connected (IBM, GE, Apple, Google, Vanguard Group, Amazon and others) indicate that working in more engaged ways is becoming mainstream. This seems great for the Dachis group because they can now function as business consultants beyond just technical or Web consulting.
I loved how Gray designed the flow and presentation of the book to practice what he's preaching. His Table of Contents is 15 Kindle pages long, offering links to chapters and subsections of chapters throughout. In addition to the ease of going right to what you're interested in reading, this enables the reader to jump around as they hopefully start planning out how they will apply these strategies in their own companies. Gray also uses his own graphics and illustrations throughout to clarify his discussions--many of which he also uses in his blogs and slideshows elsewhere.
The book is divided into 5 parts. The first part provides the rationale for why companies need to get connected, stating that customers are changing and expressing their opinions so easily and quickly now that only adaptive companies can keep up. Gray establishes his treatment followed throughout the book by starting with case studies about how several companies learned dramatically that they could not keep up with posts and messaging that were coming from both inside and outside their respective organizations. His writing is clear and precise, introducing and establishing examples and metaphors (e.g., cities and cars are examples of connected systems) that he then uses later throughout the other parts. Many of his references come from Gray's readings and interviews, and he references those at the end of each chapter so the reader can dig down for further detail. By the end of Part One, we know that services (or customer experiences) are not strictly under the company's control; customers each have their own definitions and expectations of how they want to be served and companies and their employees must be prepared to deliver different experiences according to each person's expectations.
Based on that good foundation of what customers want in the first 7 chapters, Part Two then explains what a connected company is and how it can respond to those customer expectations. Gray establishes that knowing their true purpose (not just making profits) distinguishes connected companies. He works through famous examples of how IBM and GE re-made themselves and then through additional examples (Southwest Airlines, Ritz Carlton). He also introduces how many of these companies have adopted the Net Promoter Score as a way to address customers who hate their experiences.
In Part Three we learn how connected companies (Netflix, Whole Foods, Nordstrom's) use pods to interact with customers, and how pods are like smaller versions of the overall company but with the ability and data to make their own self-directed decisions. This part is where there is the greatest focus on systems, software and platforms but it is all done at a higher, more conceptual level to understand how these pods can be supported, not controlled. In Part Four, Gray describes how connected companies are led, differentiating the roles at the pod level, for leaders and for managers. And finally in Part Five, he describes how to get started in transitioning to a connected company and some warning signs along the way.
"Social Business by Design" reassured senior leaders that social media and business was not just a technical play. "The Connected Company" arms them with greater understanding so they can make the organizational changes necessary to make each employee an important contributor. At certain points, I could see how Gray was synthesizing many of the same books I've read into a compelling narrative, and so it was kind of an outsider's perspective on what he sees happening across many companies. This is not typical, as most authors seem to have been more engaged in the inside of the companies and changes they're writing about. What makes it all work is the way he puts it all together to guide companies to the next level.
3 of 3 people found the following review helpful.
The Importance of Being Connected
By Michael A Dila
Dave Gray is a smart and thoughtful man. And in 2010 he published a very valuable book, called Gamestorming: A Playbook for Innovators, Rulebreakers, and Changemakers.
This year, with the publication of The Connected Company, Dave Gray has written an important book. Like Peter Senge's The Fifth Discipline, Gray has placed the idea of the organization as a learning and evolving organism at the center of an argument for how the effects of Internet culture and technology are changing the environment in which companies operate.
I admire Gray's clarity and the simple power of his well-considered arguments. This is also a very carefully designed book, very mindful of the user experience of its readers. Gray clearly understands and empathizes with the sort of people who need to read this book and what they need to do with the ideas they will find in it. And I hope it won't hurt sales to say that this is a book for the thinking business person.
Dave Gray doesn't have all the answers, of course, but he is struggling with the right questions, and they are the questions that business leaders must also now confront, make sense of, and orient themselves within. The Connected Company sometimes reminds me of the ethos of Tracy Kidder's The Soul of a New Machine. Not only does it capture the sense of urgency that faces organizations today, but also an optimism about the opportunities that lie ahead for the companies that manage to leave the vestiges of the machine age behind and embrace the struggle with complexity that only connected companies can.
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