COVER STORY
Two Steps to More Powerful BY ERIC LOWITT
As the author of The Collaboration Economy, I'm frequently asked about the formation of a “collaborative economy.”
Eric Lowitt
The questions usually come from someone who wants to talk about Zipcar, Yerdle or another company that enables the sharing of hard goods by many consumers. Indeed, in the six months since my latest book's publication, approximately half of the collaboration questions I've been asked are at this “sharing-of-goods” level. While these questions deserve significant attention, the real value that companies can unlock through collaboration is far greater than a new model of distribution. The key to successful collaboration for you and your organization starts with clear answers to two questions: 1. Why do you want to collaborate? 2. What kind of collaboration do you want?
WHY COLLABORATE? Collaboration is a way to make something bigger happen than can be accomplished solely through the assets you command and control. This view is based on equal parts of common sense and insights from more than 30 CEOs of publicly traded companies. These CEOs see collaboration as a way to: Remove roadblocks shared with rivals that slow progress or threaten future prospects ៑ Unlock value from resources imprisoned by others ៑ Learn from and alongside other organizations that are working through similar issues or initiatives ៑ Reduce supply-chain and investment risks by coinvesting in new ideas and backup sources of vital supplies with rivals and other organizations While CEOs view collaboration at the enterprise-value level, managers are responsible for a more bounded set of needs that collaboration can solve. These include: ៑
Completion of a project or initiative ៑ Securing resources needed to achieve their agenda items ៑ Achieving results that are beyond the reach of their controlled assets Consumers view collaboration in the economic sense as a way to save money, either by pooling purchases of common goods with other consumers or by sharing assets purchased by either a ៑
8
American Management Association
MWORLD WINTER 2013-14