1 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Net Gains: Using Networks to Increase Social Impact Center for Network Impact Innovation Network for Communities ( November 2009

2 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Center for Network Impact (CNI) CNI is an incubation project of the Innovation Network for Communities, under the leadership of Madeleine Taylor and Peter Plastrik. INC organizes production networks that design, prototype, launch, and scale place-based social innovations. Its national networks focus on developing innovations for national distribution. Its place-based networks focus on organizing social innovation capacity in specific communities or regions. Madeleine Taylor: , Pete Plastrik; ; John Cleveland; ; The CNI mission is to accelerate and spread the development and use of networks to support positive social change.

3 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Net Gains Handbook “A Handbook for Network Builders Seeking Social Change” Written by Madeleine Taylor and Peter Plastrik Available for download from the CNI website – Since 2003, Taylor and Plastrik have Researched, written about, consulted with, and developed tools for nonprofit organizations, individuals, and foundations that use network approaches to advance social change. Engaged in a set of “deep practice sites” with networks for community- development; service-providing; public policy development and advocacy; and social innovation development. Developed explanatory frameworks and practical tools, including the Network Health Scorecard (2009).Network Health Scorecard

4 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Contents Basic Network Concepts Different Types of Networks Designing a Network Managing a Network

5 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Basic Network Concepts

6 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. What Is A Network? Networks for Personal or Social Ends –Personal Ends: individual networks for own use –Social Ends: many individuals network to achieve collective goals A Social Network For Social Ends is… – Not a market, which depends on individuals making buy-sell transactions with little necessary connection with each other –Not an organization, which relies on a formal structure and delegated chain of command

7 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Networks vs. Organizations A network has less formal structure than an organization and it is more fluid Participation is voluntary Network participants have a high degree of freedom to make choices Decision making is distributive in nature, not centralized Participation is as needed, not full time

8 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Organizations have bosses Networks have coordinators Networks vs. Organizations (Courtesy of Madeleine Taylor)

9 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. A Spectrum of Interdependence Formality of Structures Level of Interdependence HIGH LOW HIGH Organizations Networks Markets

10 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Making the Choice An Organization is Best If… A Network is Best If… The work is relatively predictable It requires concentrated expertise over time Producing value requires highly stable relationships between players Work involves a lot of proprietary information Resources allow you to pay full time for all of your talent The work is likely to change rapidly You need access to a very broad range of diverse relationships The work that is being done can be conducted by “episodic” interactions Much information can be shared freely The resources you need cannot be purchased on a full time basis

11 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Network Structure = Patterns of Nodes & Links SOCIAL NETWORKS: –“ Nodes ” are people or organizations –“Links” are relationships (Courtesy of Madeleine Taylor)

12 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Some Common Network Structures Hub and Spoke. Many nodes connect to a single central hub. Dense Cluster. A number of nodes are all connected to each other. Branching. A series of clusters are connected to each other through spokes Many Channels. Many nodes connect to each other in a variety of configurations. Peter Plastrik and Madeleine Taylor, “Network Power for Philanthropy and Nonprofits”, February, 2004

13 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Anatomy of Network Relationships Link Node What Flows Through It (Sources of Value to Members) Connections Knowledge Competencies Resources What Makes It Work Trust Reciprocity Diversity Complementarity

14 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. What Networks Are Good At —Efficient search for information and ideas —Rapid growth, diffusion —Efficient “small-world reach” to connect with others & resources —Build capacity that is flexible, diverse —Resilience to shock/change (Courtesy of Madeleine Taylor)

15 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Efficient Search (Courtesy of Madeleine Taylor)

16 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Rapid Growth and Diffusion (Courtesy of Madeleine Taylor) Leveraging other people’s connections

17 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Small World Reach (Courtesy of Madeleine Taylor) Finding people & resources beyond your “horizon” of connections

18 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Adaptive & Flexible Capacity (Courtesy of Madeleine Taylor)

19 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Resilience (Courtesy of Madeleine Taylor)

20 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Different Types of Networks

21 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Different Types of Networks Producing Aligning Connecting Allow easy flow of information and relationships Develop and spread a shared point of view Foster joint action for specialized outcomes

22 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Different Types of Networks FeatureConnectingAligningProducing Value Proposition I can connect faster to many other people I can build a sense of shared identity and purpose I can produce desired outcomes more effectively Role of Network Builder Weaving—helping people meet each other, increase ease of sharing and searching for information Facilitating— helping people to explore potential shared identity and value propositions Coordinating— helping people plan and implement collaborative actions ExamplesCraig’s List LinkedIn Many informal networks Alumni networks Professional associations MA Smart Growth Alliance Green Building Production Network Lead Abatement Network

23 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Networks Can Focus On Many Different Outcomes Learning – Create and spread new knowledge Advocacy – Advocate for particular policies Innovation – Innovate to solve social problems Branding – Marketing, communications and shared branding

24 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. A Network Design Framework Network Outcome Network Function ConnectingAligningProducing Learning Policy & Advocacy Innovation Marketing & Branding Etc.

25 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Key Enabling Infrastructure By Type of Network Type of Network ConnectingAligningProducing Members-only Web site with networking tools Meeting planning & facilitation Shared calendaring “Opt In” learning processes Member input systems Collaborative work processes + Web site Capacity to analyze, compare, and synthesize frameworks, definitions, etc. Formal decision- making processes to “endorse” alignment mechanisms (e.g., standards) Capacity to negotiate production agreements among members Project management and project budgeting capacity Formal governance of all producers Performance accountability mechanisms Pricing and marketing capacity Sales, fulfillment, & financial management

26 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Designing A Network

27 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Network Design Questions 1.What kind of network do you want to build? 2.What is the “value proposition” that attracts people and organizations to participate? 3.What is the initial membership? 4.How should the network be governed? 5.What should the network structure be? 6.How will the network be funded? 7.What are the operating principles? 8.Who will build the network?

28 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 1 – What Kind of Network? Design the network to serve the function, not the other way around Take time to really clarify what the purpose of the network is – especially to articulate the core hypotheses you want to test

29 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 2 – What is the Value Proposition? Funders often: Overestimate the power of their value proposition to attract members to a network. Rush development and skip necessary steps in network building (especially connectivity and alignment). Don’t recognize the full costs of network development. Become the controlling hub rather than an enabler. “Networks that are formed as the result of external, especially donor-driven, impetuses are less sustainable in the long run than networks that evolve organically out of existing partnerships.” Beware of funding as a core value proposition!

30 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 2 – What Is the Value Proposition? The value proposition needs to be clearly focused on the capacity to have significant impact by working together rather than separately. The network builder needs to take the time to fully explore and vet the value proposition with potential members. “If there’s no value, people will start to exit. It’s a self- regulating system.” ( Bill Traynor, Lawrence Community Works)

31 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Sources of Network Value Sharing connections Sharing knowledge Sharing competencies Sharing resources

32 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 3 – Who are the Network Members? Networks can be “open” or “closed” –Production networks are typically “closed” Membership needs to be aligned to the goals and required capacities –Sometimes members lack the capacity to achieve their goals There can be different categories of members (core; affiliate; peripheral; etc.)

33 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Some Criteria for Membership Shared commitment to the network purpose Expertise or competence in key content areas Connections that matter Capacity to collaborate Being a good “network citizen”

34 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 4 – How Will the Network be Governed? Who decides? Steering group All members Elected members Other arrangements What is decided? Purpose Objectives/goals Values & beliefs Membership criteria Member responsibilities Plans and strategies Distribution of resources How is it decided? By outsiders By consensus By democratic vote By action (emergence)

35 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 5 – What Will the Structure Be?

36 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 6 – How Will the Network Be Funded? Operating grants Member fees Project fund raising Volunteer time and sweat equity

37 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 7 – What Are the Operating Principles? Make the network do the work. –Minimize “delegation” opportunities Let connections flow to value. Let variation create unplanned opportunities. Keep plans flexible.

38 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. 8 – Who Will Build the Network? Some Different Roles of Network Builders OrganizerEstablish purpose and value proposition; connect first nodes; attract initial resources. FunderProvide initial and growth resources. WeaverIncrease connections among nodes; connect to new nodes. Facilitator & Coordinator Help establish shared value proposition; negotiate action plans for production; coordinate production. CoachAdvise organizers, weavers, facilitators and coordinators.

39 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Managing a Network

40 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Network Management Tasks 1.Weaving connections within the network and between the network and other players. 2.Facilitating alignment that leads to “production agreements.” 3.Coordinating the actual work of connection, alignment, and/or production, and network development. 4.Operating the network and handling management issues. 5.Monitoring and evaluating network development and performance.

41 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. “Trust is the glue that holds networks together.” Trust is built by: –Increasing the bandwidth of information that flows between nodes –Experiencing reciprocity Trust is personal. Trust is the core network asset.

42 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Weaver Roles “Weavers” act like brokers – connecting players together; keeping their ears to the ground; fixing problems; helping members maximize the value they receive Weavers need to both know about network building, and have standing in the content area of the network

43 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. “Planning eventually degenerates into work.” Work plans are the core of production network value propositions. Within the voluntary, collaborative structure of a network, production responsibilities need to be very clear. It is often very useful to have an “outsider” negotiate and structure these relationships.

44 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Management Issues That Will Need Attention Balancing between the needs of the “parts” and the “whole.” Balancing node autonomy with collective control. Balancing stability and change. Ensuring effective communications. “Policing” the network.

45 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Managing Money Issues Network resources can come from in-kind; grants; selling services; and member funding. “Sweat equity” is key to most network development. Economic relationships within the network need to be very clear. “The allocation of funds, once raised, can be potentially contentious, if the relationships among members have not been well formed, and if agreements for the division of resources have not been reached in an open and transparent fashion.” (Heather Creech, “Form Follows Function”)

46 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. Network Evaluation Assess for multiple dimensions: –Connectivity (What flows? Between whom? How well?) –Network health (membership; involvement; diversity; unplanned benefits; financial health) –Outcomes (what was produced; at what quality levels; at what cost) Focus on member value – avoid being funder- centric Build in the assessment design early Use network mapping for visual display

47 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. At First It Might Feel Like This…

48 Net Gains © 2009 by Innovation Network for Communities. All Rights Reserved. But Persistence Pays Off!