Building Network CapacityKeys of Success from the Perspective

of Network Analysis

Harald Katzmair, PhD – Founder and Director

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Challenge New challenges for rural areas require more

than ever effective diffusion of best practices Local knowledge ought to become global and

global knowledge local If rural Europe would know, what rural Europe

knows?!

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Cooperation requires trust

COOPERATION highlow

low

high

TRUST

synergistic (win-win)

respect (compromise)

defensive (win-lose)

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Based on an Illustration by Covey, S. R. (2004)

Why isn’t cooperation easier?!

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There are “wicked problems”

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“Wicked problems” Substantive uncertainty

– disagreement about the nature and the solution of the problem• improvement of regional competitiveness?• Sustainability?• rural quality of life?• diversification of rural economy?

– disagreement about the solution of the problem

Institutional uncertainty– involvement of many actors with different backgrounds

• High number of stakeholders with different interests• high number of value domains (“status-spheres”, mental models,, cultures)

– risk of clashes, high conflict costs between “experts”

Strategic uncertainty– anticipation on the behavior of others– low margins of influence for actors

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Management of uncertainty

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Possible exclusion of experts

Workload of top hierarchy

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Frustration of excluded experts

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Create - Connect - Sort

no

yes

The new network approach

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How excellent networks look like from the perspective of social network analysis

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New ideas

Local Knowledge become global, global knowledge local

Flow

Bridging of clusters…

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Lack of connectivity

Self-locked mentalities

Reinventing the wheel

Zero-Sum Mentality

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Robustness and Trust

Common experiences and values and stories

Confirmation and Validation

Forces to synchronize

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Lack of critical mass Lack of

robustness and trust

No common culture and values

Sparks burn out without effects

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Diversity Different

attributes, different thoughts

Culture of managing imbalance

Culture of coalition building

Win-win04/12/23 16Win-Win© 2008-2009 FAS.research

Social network analysis and complexity theory has shown: networks of those who are sustainable capable to bring forth and integrate innovations show three features:

1. Robust clustering (triangles)

2. Connected clusters (no isolates)

3. Highly diverse clusters (different attributes)

The structure of innovation

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How do we create excellent networks?

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Networks are about flows… Flows of goods, ideas, stories, resources… Flows require a gradient, a difference

– Problems and solutions– Questions and answers– Demand and offerings– Goals, challenges, visions, missions

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What is networking?

Connect and explore new opportunities to create value.

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3 steps in network building

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3 types of networks

Based on Peter Plastrik and Madeleine Taylor 2006

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3 tasks

Based on Peter Plastrik and Madeleine Taylor 200604/12/23 23© 2008-2009 FAS.research

New culture of network governance

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Old hierarchy model New network modelCentralized decision making Decentralized solution seeking

Unity of command and control Unity of effort

Executive leadership Inspirational leadership

Alignment through central coordination

Alignment through focus and common purpose

Harmonization and Integration by rules

Convergence through goal seeking process

Execute plan Agility and adoptability

Hierarchical communication Horizontal communication

Exclude ambiguity Ambiguity as planning assumption

Coping with “wicked problems”

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What are the alternatives?

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Let’s work on a new culture of network governance to help rural

areas across Europe to thrive!

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Building Network CapacityKeys of Success from the Perspective

of Network Analysis

Harald Katzmair, PhD – Founder and Director

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Thank you for your attention!