Posts Tagged ‘SVC’

Social Venture Commons: empowering a new organizational design model

Expanding on social capital and organizational design

Learning how to design organizations that reduce (or even eliminate) the “deadweight loss” of the social capital transactions within and between companies may be the greatest opportunity for a 21st century capitalist.

Let’s start with an example: Social Venture Commons.

Michael Lewkowitz (@igniter on Twitter) is right now leading the development of a Social Venture Commons (SVC) to create an open-sourced micro-messaging based collaboration platform to help people “discover and make meaningful contributions to purposeful projects”.

Why is SVC important?

We’re in a world where more people can independently create organizations to create value, and while the technological and cultural trends are pointing toward a more distributed model of value creation, we’re lacking the infrastructural tools / platforms necessary to create the structures we need.

It’s a model that creates the transparency and kind of interactions necessary to help people trade their personal social capital near par value for corporate use.

And it’s not just about social entrepreneurship or creating better interaction methods for non-profits; the SVC community is also testing the potential of peer-producing a for-profit startup using the SVC platform and organizational model.

Our organizational structures need to adapt to the new reality of constant disruption, and SVC is one path, one of many potential business model designs that are based on change, adaptation and flexibility.

SVC is hardly the only effort in the area: I can’t hope to mention all of them, so please chime in with examples and links to other efforts in the comments below.

What is being created?

  • A “broadly accessible” collaboration platform: easy (web-based), distributed (available in any site) and portable (sms compatible).

    The beauty of using micro-messaging to power the collaboration? To quote Michael:

    My experience with Twitter and the emerging projects have been that they allow really fluid entry and exit without having to ‘join’ something. Follow v. join (or friend) is a very important difference in this. Similarly this is not about destinations – rather it needs to show up where people and ventures are/do/happen.

    This fluidity nurtures interest and discovery which I think also will nurture the best, authentic, passionate and productive contributions.

  • An “action-oriented” collaboration structure: every interaction is a contribution, every contribution builds relationships.

    How can an organization optimize for micro-interactions? Me:

    The SVC model is based on a different culture: contribute and stay in or get out, but contribute.

    Imagine how the organization model would be different if all interactions were contributions, if every interaction created value rather than allocated value. Is it possible to reduce the need / ability to dilute contributions with politicking, bureaucracy, et. al.?

  • A self-organizing, “interest driven” organizational structure: the platform is the organization, empowering people to fluidly find, follow, and do things that *are* interesting at every moment

    This is not simply crowdsourcing using Twitter; whereas most crowdsourcing models transfer value from participants / creators to buyers, SVC is about empowering creators and allowing some of that value to transfer back to the contributors themselves in the form of social and / or financial capital.

    Developing new tools is a necessary start, but the real value is in creating new rules for interaction and value creation. Interestingly, SVC is testing these new rules in its own development, questioning and developing its own organizational structure and interaction systems along the way.

How can for-profit endeavours apply the SVC organizational and economic model?

How can for-profit ventures own the intellectual property? How can these new ventures capture customers and revenue? How will contributors get paid?

How do we create an equity structure to allocate future distributions of wealth to fairly compensate past, present and future contributors?

Creating value on the edge is hard; creating new societal conventions and organizational structures based on still-emerging methods for interaction and communication is even harder. Can our current corporate legal structures adapt to allow the kind of innovation in compensation and ownership rights necessary for new organizational possibilities like SVC?

I’ll return to this shortly…

Want to learn more or get involved?

Unordered Thoughts

Links and bits of thoughts captured from more than a week offline; even though they are unordered, there is still an underlying theme tying them together. Can you guess the theme?

  • Jan Chipchase: Tokyo Driving School:

    Imagine never having to take a test in your life ever again – not at school, university, in the work place.

    Instead assessment is ongoing, everywhere – continuous learning pushed to its il/logical extreme. The authority required to start task X or access service Y assessed in real time drawing on a life’s worth of data pushed through a filter of you in the here and now.

    … If you’ve spent time in a large organisation these past few years you’ve probably brushed up against that early 21th century notion of ‘life long learning’ – that it’s never too late to re skill, retool, learn something new. We are undergoing a fundamental change in the way we relate to objects and the way (connected) objects relate to us. ‘Life long learning’ is no longer about you in relation to what you can offer to achieve you potential – but rather the systems’ ability to learn about you over the course of it, and your lifetime.

  • Michael Lewkowitz: Opportunity ‘09: Micro-messaging Based Collaboration:

    My focus heading into 2009 is micro-messaging based collaboration. From where I sit I think it will have a profound effect on the way we organize resources to get things done and will mark a fundamental shift in shape of the organizations and systems of our future.

    Also: Peer-producing a for-profit startup.

    Expect much, much more on Social Venture Commons (SVC), peer-produced organizations and distributed value creation very soon.

  • Fred Wilson: Always Treat Money Like It Is Your Own:

    Why is it that most of the best managed companies are operated by their owners? Think about Apple, Google, News Corp, etc. All of these companies are run by owners who have a huge amount of their net worth tied up in the business.

    My comment:

    I’m most interested in seeing how the ideal of “treating money like it is your own” works as companies evolve and grow. Apple and Fox, as examples of well-managed companies, are also examples of companies that are run (micromanaged?) by their founders and figureheads.

    Can a diffuse, open, large organization provide the kind of transparency and incentives required to give people the opportunity to “treat money as their own”? What kind of organizational structures do we need to create that kind of culture? I think we’ve all learned that stock options and “keeping skin in the game” aren’t enough on their own.

  • Justin Kistner: The Lord Matt Borg attempts to automate social interaction:

    I believe social interaction could have rule engines. Etiquette is programmable.

    Also, via Ethan Bauley:

    Whoever makes the etiquette API will get rich.

    Can we automate etiquette, and if automated and commoditized would it be worth anything? Regardless, I’m sure we will try…

  • Mike Bonifer: Trust the Game Before You Trust the Player

    The lessons of the Madoff Scandal are crystal clear:

    Honest players play honest games.

    It is easier to spot a crooked game than a crooked player.

    Trust the game before you trust the player.

  • Fred Wilson: Default To Public:

    I encourage all of our companies and all the companies that I meet with to “default to public” as much as they possibly can. Sure, there are some things that should remain private, but not nearly as many things as people initially think. The value of public discourse and enagement around content/information/knowledge vastly outweighs most of the privacy concerns most of the time.

    “Defaulting to public” is a pretty strong tell regardless of the game you’re playing.

  • David Heinemeier Hansson at 37 Signals: The untold millions:

    Inflating evaluations are great when you’re listed on the market, gunning for more venture capital, or trying to bail with the biggest parachute. So naturally these companies drip and drop the honey for the journo worker bees and we get all these silly stories about younger and younger people being worth more and more monopoly money.

    In the mean time, many of the real stories are never told. The quiet successes by small teams who stand little if anything to gain by sharing their numbers and telling about their success. Lest they attract competitors or other unwanted interest. They’re just happy making millions quietly from happy customers.

    I’ve talked to so many of these entrepreneurs in private and have often been shocked by how well they’re doing. And I always think to myself: 1) why didn’t I know about this?, and 2) if only everyone else knew too.

    …Know that the world of successful businesses online is much larger than that tiny tip that peaks above the surface for a reporter to find. There’s incredible wealth being created below. Sure, they’re probably not making billions (that’s hard to keep quiet), but there are plenty of untold millions.

A return to thought pieces soon, lots of different topics in play at the moment…

MORE: Financial Models for Entrepreneurs