Organizational networks: effective design and management of knowledge intensive enterprises

Abstract

Knowledge intensive organizations depend more on ad hoc structures, e.g., project teams, committees, cross-functional design groups, "tiger" teams, etc. These tend to be process vs. functionally focused activities, executed through overlapping and interdependent networks of individuals. In the business enterprise there exists a hierarchy of networks of decreasing dimension: communication networks associated with sharing information, influence networks associated with task prioritization and execution, and decision networks associated with enterprise governance, direction, and resource allocation. The situation is complicated by the fact that the networks are issue dependent, e.g., strategic planning, product development, marketing, budgeting, etc. Furthermore, the networks are not independent, e.g., it is important to understand the sources and channels through which managers get the information on which they base their decisions, and how the decisions propagate through the organization to influence task selection and execution. The networks are not "orthogonal," that is the same individual may be active in several networks simultaneously. An additional complication is associated with the fact that the networks will generally be different depending on the modus of communication, e.g., different patterns and impact will be associated with face-to-face interchanges than with electronic interaction or paper communication. Finally, the patterns change with time. Circumstances, and evolving priorities and organizational membership. EnCompass/spl reg/, a computer supported system for organizational process visualization, analysis, synthesis, and management, was developed specifically to address these problems. This paper discusses EnCompass/spl reg/ and its application to the management of knowledge intensive enterprises which is illustrated with industrial cases in the high technology sector.