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Network logic Figure 2 Model for government (Courtesy of Enterprise Modeller Solutions Ltd) The key point is this: just because you have an organisational chart at your fingertips does not mean you have a charter for your world. And having the networks mapped does not tell you about the cultural terrain you have to cross in order to lead effectively; the map is most certainly not the territory. Rather it is the lack of a coordinated leadership network within a network of hierarchies that produces the lurches, lunging and sputtering we frequently experience in government. What I have tried to do here is explain the science underlying the practical vagaries, which is essential for planning and predicting effective change. With e-government and virtual operations increasing, it becomes even more salient to have government segments coordinated for rapid learning and operational adaptation. It’s difficult to resign ourselves to living in a world where even the best-intentioned can undermine or devastate operations by a simple flip of a switch. But we do live in such a world and it is filled with this kind of risk. It’s up to us to 46 Demos
Towards a theory of government engender the kind of trust and build the kind of government that will make it a better and safer place. Karen Stephenson is professor of management at the Harvard Graduate School of Design and President of Netform, Inc. Her book The Quantum Theory of Trust will be published by Financial Times Prentice Hall later this year. Notes 1 C Levi-Strauss, ‘The mathematics of man’, International Social Science Bulletin, no 6, 1955 and The Elementary Structures of Kinship,tr.J Harle Bell, J R von Sturmer and R Needham (Boston: Beacon Press, 1971) 2 Adapted from G B Richardson, ‘The organization of industry’, Economic Journal, no 82, 1972. 3 R Coase, ‘The nature of the firm’, Economica, no 4, 1937. 4 O Williamson, Markets and Hierarchies (New York: Free Press, 1975), The Economic Institutions of Capitalism (New York: Free Press, 1984) and ‘Transaction cost economics and organization theory’, Industrial and Corporate Change, no 2, 1993. 5 Management theorists put their imprimatur on the debate with derivative theories based on hybrid organisational forms and managerial approaches, such as the ‘U’ and ‘M’ organisation and Theories X and Y (D McGregor, ‘The human side of enterprise’, Management Review,Nov 1957) and Z (W Ouchi, Theory Z (New York: Addison-Wesley Publishing, 1981)) respectively. 6 W Powell, ‘Neither market nor hierarchy: network forms of organization’, Organizational Behavior, no 12, 1990. 7 M Granovetter, ‘Economic action and social structure: a theory of embeddedness’, American Journal of Sociology, no 91, 1985. 8 A Chandler, The Visible Hand (Cambridge, MA: Harvard University Press, 1977). 9 A Smith, The Wealth of Nations (Oxford: Clarendon Press, 1976). 10 K Stephenson, ‘Networks’, in CRC The Technology Management Handbook, ed. R Dorf (Boca Raton: CRC Press, 1999). 11 M Sahlins,‘The segmentary lineage: an organization for predatory expansion’, American Anthropologist, no 63, 1961. In the early stages of human organisation leaders were typically charismatic and built a following by creating loyalties using generosity or fearful acquiescence through magic, demonstrated wisdom, oratorical skill, and so on. A change occurred between the segmentary lineage and chiefdom, where leadership was no longer carried out by a charismatic leader but by an instituted office authorised by God, coup or chad. 12 For more information see www.benchmarking.co.uk or contact Jeremy Hawkins at the East Midlands Crime Reduction Unit. Demos 47
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