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Tue, Oct 24, 2006 0:33 EDT

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Posted by: Michael Hugos Blog: Doing Business in Real Time
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What makes a flock of birds or a school of fish move as if they are a single entity? What makes them all suddenly rise, turn and accelerate at the same time? There is something more subtle at work here than just a leader bird or a captain fish telling all the others what to do. What can we learn from the dynamics of flocks and swarms that is relevant to the way we structure and operate a real-time business?
There seems to be some kind of instantaneous and all-pervasive communication at work when we observe the sudden twists and movements of a flock of birds or a swarm of fish. Whatever the mode of communication that may be at work with birds and fish, many of us now own an item that is capable of producing swarming behavior in us. That item is the mobile phone. And that item is evolving before our very eyes because so many people are using it for so many different but related forms of communication. In its latest incarnation, the item is a combination phone, digital camera, Web browser, and instant messaging device.
Think like a kid and write down a list of 20 cool things you could do in your organization if everybody in it had a current-generation mobile phone (and in many organizations everybody already does). In other words, think about how the business could operate differently and more profitably if everyone had instantaneous voice, data, and video communication as well as Web access, e-mail and instant messaging. If you choose not to do this at least admit that your competition may be doing it and at some point they are going to come up with something very powerful that will catch you way off guard.
For starters, consider this. It is easy to combine global positioning system (GPS) data with data from mobile phones. An organization whose members all have current-generation mobile phones can now create a single big picture view or map of their world that is created from the eyes of all the people in the organization. This view can be updated in real-time to reflect changes in that world. People can access relevant parts of the big picture to get the information they need to make their next move. As long as people all have a common understanding of what they are trying to accomplish, everyone will act with a common purpose without needing to be told what to do. This is swarming behavior. It is fast, powerful, and continuously responsive to change.
The very existence of the agile, real-time organization is based on everyone in the organization having the same big picture view of their world. Everyone does not need access to all the detail, but everyone does need access to meaningful summaries and indicators of business activity and performance in each area of the company. And this information needs to be kept current, hour-by-hour and day-to-day.
When everyone knows what their objectives or performance targets are and when they can see moment to moment what is going on and whether those operations are on target or off target, then something powerful starts to happen. Swarming behavior emerges as people learn how their individual actions combine to create larger effects. Those larger effects are organizational responses that move their organization toward achieving its performance targets even as the world continues to change. No one person can do it alone no matter how powerful or all-knowing they may be because they then have to do the thinking for everyone else and tell everyone what to do and it just takes too long. But swarms of people can cause an organization to become alive. Just as our bodies are swarms of cells that continually sense their enviornment and act on their own without waiting to be told what to do.
People using swarming techniques can bring about organizational behavior that yields continuous efficiency and profitability from a thousand small adjustments and a few occasional big wins. When customer service people start working more effectively with sales people, when sales people start working more effectively with credit and accounting people, when those people start working more effectively with marketing people, and when IT people start working more effectively with everybody, then amazing things happen.
Swarming behavior depends on decentralization of information and that is accomplished by giving everyone in the organization a common big-picture view of the whole organization. In addition to the big-picture view people also need access to the relevant detail information to support the particular activities they are responsible for. This allows them to see how their individual activities relate to the performance of the company as a whole.
Decentralization of control is accomplished by giving everyone a clear set of performance targets that they are motivated to achieve. Those performance targets define the results that are expected but then people figure out for themselves how to deliver the results. The speed and efficiency demanded of real-time organizations can occur only if people think for themselves and control their own actions (as in massively parallel computing in distributed networks). The notion that some central person (or computer) can do all the thinking for everybody else is a quaint idea from the days when we thought an absolute monarchy or a central dictatorship was the most efficient form of government.
Hi Michael,
Interesting observation about the swarming behaviour. Is this guided by the following ?
1. Birds and Fishes are focussed on the tasks at hand. They want to accomplish something specific collectively and not for individual gains.
2. Communication is based on trust. There is no information hiding for political gains.
3. Intrinsic survival instinct makes them flock together
4. Poor responsiveness results in instataneous feedback
5. Stickability of routines. Learning is passed from generation to generation without anything lost in translation
The point I am trying to make is that the very essence of human nature and human driven organizations is fundamentally different from birds and fishes. Its a good aspirational model to follow, but hard to implement because it is fundamentally changing the way people work with each other.
In that sense, having more technology to communicate will not necessarily make the difference.
Does that make sense or am I missing the point of your post ?
regards,
Prashant
Hi Prashant, you make sense here and give me more to think about. You miss my point to some degree but this does not make your points any less valid.
My point is that when birds and fish swarm they are exhibiting very effective survival behavoir that seems to be a spontaneous reaction by every individual and not something that is orchestrated by a single leader and that is why it can happen so quickly (which is why it is so effective).
People actually do swarm already in certain situations such as when we all go blasting down a crowed multi-lane expressway. We all move in concert (usually) and adjust quickly as changes happen to keep the flow going. Another case is when we all see a rain cloud and run for cover or when we all see a hot stock and rush to buy it (or rush to sell a bad stock).
My point is that if we can extend this swarming behavior to the way we run an organization then we can make that organization into a real-time organization (and what organization doesn't need to be real-time these days?). Perhaps it doesn't require a lot of fancy communications technology to make this happen since the humble cell phone may already be enough technology to make it happen.
Beyond technology what is needed is to remove the cumbersome bureaucracy of control which slows people down yet still be able to coordinate our actions. There must also be a way to motivate people (just as they are when driving down a highway, seeking shelter from the rain, or buying a hot stock). Nothing happens without this motivation.
The points you raise speak to some of the issues related to motivating people.
Swarming behavior may work when the goals are simple and short term. For more complex and longer term goals, more complex management and control is necessary. Contrast the following tasks: freeway driving to a destination, and design/build of an aircraft. The level of interaction required for success in the second task is much higher than in the first. Decentralization of control is not time and resource effective when pursuing large, complex, interdependent projects because the number of technical and performance targets is very large.
Mike,
Flocking & swarming tends to be an almost instantaneous response to a perceived change in the immediate environment: the sun sets, the bats come out of the cave. A predator appears, the flock takes evasive action. The next big stock floats by and everybody scrambles to get on board.
What happens is that the outliers - sentinels - call them what you will, perceive the change, respond to it, and the rest respond to them. But if you want to drive an organization forward, you have some complicating factors. The nature of the change in the environment and how to respond are not always intuitively obvious.
You say that "When everyone knows what their objectives or performance targets are and when they can see moment to moment what is going on and whether those operations are on target or off target, then something powerful starts to happen." True, but who sets and articulates those objectives and targets? And how is that done? Not by swarming, I submit, but by leaders. Of course if the leaders are willing to listen to the sentinels, then perhaps your swarms have a chance.
I believe that the crux of the matter lies in self-management. What we're after is an algorithm found in a social animal's brain which tells it how to behave.
The point is to lay out a few ground rules and give your employees a free hand with the rest.
Unlike a school of fish, the human individual actually matters and can affect the entire group.