By Nilesh Bhagat, CHRP

Don Tapscott and Anthony Williams, in Wikinomics, explain how there is a fundamental shift in the way business is being done. They explain that being open, global in reach, peering and sharing are the new principles that are driving the modern market forward. If they’re right (and there are compelling arguments that they are), the underlying core values which drive modern businesses are shifting. In our increasingly connected world, no longer will the isolated, secretive and risk-averse silos of yesterday’s organization be adept to survive.

Richard Koch and Greg Lockwood, in Superconnect, show that organizations stagnate over time because their internal networks crystallize. The weak links which enable a young organization to stabilize in its competitive environment wither away. In their place, strong links develop internally (and externally via alliances and partnerships) and are reinforced. This leads to the crystallization of the values, norms and beliefs which drive an organization’s operations over time, creating rigidity in ‘the way things are done around here’. This is dangerous because, as we know, the longer we accept the status quo, the harder it is to break out. Of course, this spells recipes for disaster for innovation, flexibility and change.

It’s clear that the modern organization will need to be built upon a new set of core values to compete in today’s paradigm. Three of these values may include:

• To connect with others, both inside and outside the organization
• To be open to new possibilities and continually challenge the status quo
• To take risks by exploring and playing outside the ‘comfort zone’

In a recent McKinsey Quarterly paper, Jacques Bughin and Michael Chui show how organizations which use the web effectively for interactions with employees, customers and suppliers are more likely to be market leaders in their competitive fields. In other words, connected organizations outperform those who are less connected.

In the same issue, Bing Cao, Bin Jiang and Tim Koller illustrate how companies which grow and prosper initially eventually slow as they mature because they are not realistic in their growth trends. Perhaps this is in part because they don’t anticipate the effects of network links crystallizing over time by allowing the status quo to succeed for too long.

Finally, Martin Dewhurst, Suzanne, Heywood and Kirk Rieckhoff give the example of a retailer launching larger stores by treating these as separate business units – complete with separate cultures, staffing structures and financial statements. This is an example of the retailer essentially playing outside its normal comfort zone. The result: ‘in just two years, six of the new-format stores were firmly established and meeting their financial targets’.

These are just some of the values that may drive the new organization forward in the modern marketplace. What’s driving your workplace?

Nilesh Bhagat, CHRP, is the membership and CHRP administrator at BC HRMA. After several gruelling years in school, Nilesh graduated in October 2010 from Simon Fraser University with a Bachelor’s degree in Business Administration, First Class Honours. He majored in Human Resources Management and tacked on an extended minor in Psychology. He’s a self-confessed nerd (the first step is admitting), likes to read, loves hockey and is struggling with the complexities of learning the game of golf.