A follow-up to Groundswell, Open Leadership is Charlene Li’s latest book (to be released today). While similar in structure – there’s a very practical kind of “roadmap” quality to it – Open Leadership is ultimately a more important contribution to modern organizational thought leadership and to the efforts of millions of people trying to apply open leadership in their own contexts.

First, it’s focused on leadership. While this might seem obvious from its title, there are thousands of books on leadership (Amazon lists over 61,000) that are really about a particular leader (e.g., Jack Welch), a leadership style, or characteristics of a collection of leaders. Far fewer interrogate the nature of leadership itself. This one does – simply, and in the context of broader social, cultural, economic, and environmental changes. Pointing to the rise of a “culture of sharing” that increased connectivity makes possible, uncomfortable territory for many leaders to be sure, Li states, “At a time when customers and employers are redefining how they make and maintain relationships with social technologies, it’s high time organizations rethink the foundations of business relationships as well.” Open Leadership reflects transformative thinking not just at the level of practice but about how people in organizations and their customers relate to one another.

Second, the book profiles not just private sector firms, but global charities (The Red Cross) and key government agencies (the US Navy and State Department) responsible for some of the world’s most important and dangerous work. This underscores the emphasis on leadership broadly – not just for firms selling products and services, but for all kinds of organizations and institutions.

Third, the “roadmap” chapters (assessments, choices, etc.) offer practical direction not just for CEOs, but for open leadership and social technology advocates at all levels in their organizations. While Li doesn’t quite come out and say it, Open Leadership is a manual for leading openly from wherever you are. I would like to have seen more (and more explicit) emphasis on leadership outside of a firm context (community level government, multiple organizations engaged in humanitarian work, etc.), but these cross-organizational and network-based models could make nice case studies in a future book?

So What is Open Leadership?

“Having the confidence and humility to give up the need to be in control while inspiring commitment from people to accomplish goals.”

There’s an important nuance here – giving up the need to be in control is different than giving up control. The critical point is that social technologies have shifted the landscape so fundamentally that leaders simply cannot exercise the kind of control over information and decision-making they once did. However, they can connect to and collaborate with more customers and partners than ever before, provide a platform for those customers to connect to one another (engaging the collective “we” in problem-solving), and facilitate meaningful relationships along the way.

Li identifies five rules of open leadership:

1. Respect that your customers and employees have power.
2. Share constantly to build trust.
3. Nurture curiosity and humility.
4. Hold openness accountable.
5. Forgive failure.

And then the book delves into roadmap territory (10 elements, assessments, models, checklists, etc.), so you’ll have to pick it up for yourself to make use of them. Importantly, these chapters (more than half the book) frame choices. How open do you want to be? About what issues? What kind of structure supports the kind of openness you want to achieve?

If you are an aspiring open leader, these alone are worth the price of the book as they will prevent you from having to reinvent a wheel or two. [Note: The chapter on structuring openness provides sage advice, and a myriad of examples, but if you need more, a host of social media guidelines or policies is here on the Altimeter Group wiki].

A Closing Note

While many of the examples cited in the book (Best Buy, the Obama campaign, Cisco, Comcast, Ford, etc.) have been the subject of inquiry many times before, Open Leadership presents them as unfinished stories rather than tales of hero/ines. This does a couple of important things.

First, it strengthens the case for open leadership on the grounds that ever more connected markets, communities, firms, and people both accelerate change, and make it less predictable, a condition for which open communications and information-sharing systems are well-suited.

Second, it portrays leaders as learners for whom adapting to the changing technology environment is mission critical – not just “fun.” Whether it means blogging, tweeting, or platform building, these leaders are not only embracing these practices but making them central to their work.

Anyone who has ever stood in front of a room full of skeptics trying to explain what a wiki is must have cheered at Paul Levy’s defense of CEOs blogging. [If you haven't been in such a position, imagine yourself trying to convince someone like Justice Antonin Scalia that Twitter matters.]

Finally, and on a personal note, I don’t know Jeremiah Owyang, but I’ve been following him on Twitter for some time now. I also read his blog and catch one of his webinars or videos now and then. I appreciate the wisdom he’s shared and sense that I would like him. I was surprised by the story in the chapter on failure (now you’ve got to buy the book), and felt at once supportive of his effort to “get back on the horse” and less embarrassed by my own open mistakes. We’re all learners really. And social technologies, used well, help us share experiences so we all move forward faster.

That’s Open Leadership.

Note: This review is cross-posted on Networked Publics.

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Thanks to Cristóbal Cobo Romaní in Flickr.

NOTE: This is the third in our recent “let’s share the findings from all those OECD reports with each other (and the world)” series. Again, the content is not likely scintillating, but it’s important to us, and we’re happy to let you in on it.

The OECD Designing Local Skills Strategies Report (2009) focuses largely on questions of balance in locally designed workforce strategies: balance between short- and long-terms needs, balance between training and placement, balance between meeting the needs of people, firms, and communities, and balance between workforce players – private, non-profit, and a diverse collection of government agencies at different levels.

Authors Francesca Froy, Sylvain Giguère, and Andrea Hofer offer case studies of the following communities:

• Shanghai (China)
• Michigan (U.S.)
• Choctaw Tribe (Mississippi, U.S.)
• Mackay (Australia)
• Malmö (Sweden)
• New York City (New York, U.S.)

While, other communities are also cited in the narrative, these communities’ launched initiatives representing what the report calls balanced strategies, the authors’ recommended approach. Balanced strategies focus simultaneously on:

• Attracting and retaining talent
• Integrating disadvantaged groups
• Upskilling those in employment – though in most cases, this was the most difficult strategy because of its complexity (designing opportunities for working adults, often with families).

The report concludes by recommending that local workforce actors seeking to implement effective (and balanced) approaches focus on five key strategic issues:

• Access to relevant data and information. Local actors need to understand their “skills ecology” and its impact on the wider economy to be able to design appropriate policy and program interventions.
• Balanced and long term strategies. It is tempting for local actors to focus on only one or two strategic objectives. Focusing on all three areas is more difficult, but also promises to deliver more substantive impact over time.
• Batter mapping of skills provision, for example through “career clusters” or “career ladders.” This provide a focus for otherwise disjointed systems and creates opportunities for individuals to advance in meaningful ways. However, careers advice is a key (and often lacking) component of this approach.
• Building strong relationships with employers. While necessary to ensure effective connecting of supply and demand, public-sector and non-profit entities can play an important role in emphasizing long term needs and suggesting changes in workplace practices in ways that round out employer’s tendency to focus on short-term needs.
• Look to the future and anticipate change. Skills strategies should be subject to regular review and change, and should build toward local areas of “flexible specialization” (sometimes called workforce or talent competencies, or clusters of talent) that encourage the development of local talents and skills that are specific enough to make the community distinctive, but broad enough to avoid dependency on narrow industries or occupations.

Not rocket science, but it does take determination – people who do this work rely on persuasion and trust, not hierarchy.

Leadership and Governance Really Matter

While the report does not emphasize leadership and governance as a theme, the frequency with which the difficulty of this work is noted in the narrative is striking.  Meeting many diverse public and private needs, balancing the short and longterm, collaborating with large and changing networks of partners absent a structure, meeting shared national policy needs and in a local (and sometime divergent) context, developing and allocating resources fairly and in ways that deliver results – this is complex work all over the world, and speaks to the level of management expertise and leadership talent it takes to do well.

What’s our strategy for developing the workforce workforce?

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We just reviewed Regions Matter (OECD, November 2009). It’s chalk full of bits and bobs we’d picked up (and learned ourselves) while studying, conducting research, or providing technical assistance to stakeholders in regions, but offers a difference level of coherence than we’ve seen in some time.  We thought we might share.

Key Policy Messages about Regional Economies and Development (the “Big Picture”)

• The intent of regional policies is evolving: they are increasingly about fueling growth and not just limiting (or reducing) disparities.
• There is no consistent relationship between urban concentration and economic performance – simply concentrating resources in a place does not necessarily lead to growth.
• Public policy matters in maximizing the potential of assets in regions.
• Leading and lagging regions are both important – when lagging regions improve, they make important contributions to growth and equity, opportunity.
• The use of productive assets (labor, capital, technology) are correlated with growth, but no single factor explains improved performance in a region. It is the interaction and interdependence of key assets that matters (suggesting flexible and integrated policy approaches).
• Investment and governance are important dimensions of regional innovation and change, but there is no blueprint for these. Policy should be developed in the context of the specific assets a particular region offers.
• Research- and technology-driven innovation is highly concentrated, but public policy can impact growth and capacity in regions with assets in emerging fields.
• Innovation policy is not just about inventing the next new technology, but also about its adoption or application. Different regions have different innovation assets and can and should develop these based on their unique capacities. Some regions will invent; others will deploy or scale.
• Innovation capacity is moving East (to Asia, where there are high concentrations of skilled labor and dense supplier networks). This mean regions in OECD countries must be mindful of how they develop knowledge capital that allows them to compete.
• Rural regions offer innovation potential but in different ways – social innovation around environmental issues, better public services (on which most rural areas are highly dependent), and new cooperative arrangements for living, working, and managing communities hold promise.
• Sustainable urban growth is widely recognized as a key policy priority.
• Regional policy is difficult to manage at the national level. It would benefit from coordination and multi-year co-financing.
• Learning, knowledge-sharing, monitoring and evaluation need to be coordinated across levels of government.

What turns places with concentrations of assets into agglomeration economies? (from Krugman, 1991)

• The sharing of unique, place-based facilities (labs, universities, creative space, etc.)
• Gains from producing complementary products in a wider array of facilities
• Gains from a wider array of suppliers (and supply chain connectivity)
• Deeply and broadly skilled labor reduces risk of adjusting to market shocks
• Matching mechanisms (connecting workers and jobs, suppliers and purchasers, distributers with buyers and sellers, etc.)
• Learning mechanisms based on the generation, diffusion, accumulation of knowledge and the systems that cultivate and disseminate it.

Results of OECD Growth Model Analysis

• Human capital and innovation positively influence regional growth (as traditional growth theories suggest).
• Elements from new economic geography theories (e.g. agglomeration economies) are also relevant and reveal a spatial connection to growth.
• Infrastructure is a necessary but not sufficient condition for growth – it is only relevant if human capital and innovation are also present.

Time also matters in regional development efforts…

• Infrastructure and human capital shifts require three years to positively influence growth
• Innovation is even longer-term, netting positive effects after five years.

Governance in Regions

Regional development depends on efficient governance. Accountable and credible leadership is important, but it looks different than a generation ago:

• It’s network-based, not organization based.
• It’s championed by collaborative leaders, not individual heroes.
• It’s more likely to be university or public sector-based than private sector based (and that’s okay, as the attention of private sector leaders is now often global, not local).
• It manifests in shared public-private ventures that can take a variety of forms.

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“The Beatles did not invent teenagers.”

You don’t need everyone. You need the ones who care – the true believers. And the web connects you to them.

Leading Change

If you are in the change business, ask three questions:

• Who are you upsetting?
• Who are you connecting?
• Who are you leading?

Then start a movement.

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