Senior Value Network Analyst, Judith McCrory
Supportability is the capability of being supported; endurable; maintainable.” For value networks, supportability refers to the ability to guide and facilitate a network to create a maximum of value with the resources available. Just as in any management situation, this is influenced by different factors such as 1) Resources and Capabilities; 2) Goals and Values; 3) Organizational structure and systems. Below is a simple framework for Value Network Supportability Factors and relevant assessment questions:
Value Network Supportability Factors
1. Resources and Capabilities Key Questions: “Who and what is included in the network? “Are all roles and interactions systematically supported?”
Who and what is included in the network determines the area of support and therefore also the level of support. Networks are supported differently, depending whether it consists of only a few roles comprising of one or two players, business units comprising 10 or more participants, or organizations representing 100 or 1000 participants.
At one end of the scale, we have high level networks such as industry ecosystems, where we are looking at overall systemic features, in a more abstract way. We are more concerned with the system as a whole than its individual components. The support or influence of a high level network is exerted by role modeling, network communications on win:win scenarios and agreements on standards, rules and regulations. A much more focused support is possible when Individual components are scrutinized at a low level descriptions of a value network. Due to the fact that we are looking at detail rather than overview, it is possible to support the network at operational level.
2. Goals and Values Key Question: “Do we all follow the same values and objectives?”
Is there a collective understanding of purpose? Small self-contained networks such as a business unit with a collective understanding of its purpose can be easily supported by its manager. Even in larger networks the more convergent the network understanding of its purpose, the more focused it can be supported by a facilitator to achieve its goals. At diffuse networks, each actor could have a different understanding of their purpose, specifically their goals and objectives. This means that supportability is more limited as it can be difficult to obtain agreements and decisions.
3. Organizational structure and systems Key Question “Are there practices and tools in place to support and influence the network?”
Self contained networks within a supportable border lend themselves to formal structures of support which include e.g. strategy plans, performance measures, and performance appraisals. Short-term methods of facilitation are meetings and formal or informal communication. These measures are possible in a highly defined context with strong cultural norms. The use of methods has an influence on the context and culture of the network itself.
In larger and more diffuse networks the behavior of a network can only be influenced by recommendations and cooperation - usually for long-term win:win situations - through communication and collaboration platforms. Additionally, role model behavior which sets new industry standards can influence the network behavior.
The Maturity and Supportability Questionnaire
A previous blog addressed value network maturity. The Maturity Model can easily be combined with the Supportability Model, making it possible to plot a landscape along these two dimensions. These dimensions can be assessed by thinking through the Value network supportability questionnaire as below.
Likert scale answers can help to find less developed areas of maturity or supportability of the value network. We have used the following continuum to allocate points: 10) true for all Roles, 7) for most roles, 5) for half of the roles, 3) for some roles, 0) for no roles, N/A) not applicable. A higher score means the network is more supportable and therefore provides a key performance indicator as to the stability and predictability of the network.
It is important to note though that not all networks can and should move into high supportability/high maturity. Optimization is reaching the "sweet spot" in the matrix where the appropriate balance of structure and emergence allows a particular value network to operate at its best.
Maturity statements
-The VNs processes are clearly defined or documented -The VNs roles/participants are clearly defined and transparent to everybody -The VNs activities are proactively planned and monitored -The relationships between the roles are clearly defined. -Transactions are transparent -The value flows are repeatable -The quality of deliverables is consistent -Roles are executed regularly -Roles have formal agreements between each other. -There is no measurable loss of quality or deviation from all specifications of flow paths -All parts of the VN are affected by major improvement measures (process changes, resource changes, training, merger, alliances, outsourcing)
Supportability statements
-The roles of the VN are supported by the same manager/board/institution. -The roles of the VN are guided by the same strategy plan. -The roles of the VN are guided by the same network performance measures. -The roles of the VN are subject to performance appraisals with the same set of values. -The roles of the VN have the same objective/goal. -The roles of the VN have the same understanding of the network’s purpose. -The roles of the VN are organized in a communication platform where they discuss collaboration within the network. -All roles widely share business-specific knowledge. -All roles belonging to the value network have been included. -All resources are shared or negotiated without competition. -All roles play an equally important role in this network.
Plotting any given network against the model can identify the gap between the "as is" condition of the value network compared to where it needs to be for optimization. Then people can plan for interventions by addressing:
1) Where are we?
2) Where do we want to be?
3) How do we get from here to there? |