Robert Paterson's Weblog

Networks and Trust - The New Evolution

Last week, prompted by pressure from my son to be more clear about networks in my upcoming book - You Don't need a Job - You need a Need a Network - some new thoughts pushed their way to the front and I wanted to share them with you in sketch book form.

Please help me get them more clear.

The Network Effect and the Trust Network Effect - There is a difference that is important. In the standard network effect, the value of the network to each member is linked to the growth of the connections. It is transactional. So the more phones that are connected to the network, the more valuable the network is in utility to each member. This is the mechanical approach to networks.  

For many people that I see using social media, this is their only goal. Many try and get as many "friends" as possible. If you are a real A lister - this works - you have influence. But for most people, having 7,000 friends on Facebook or Twitter doesn't mean a thing - IF YOU NEED SOMETHING.

I have been working a lot recently using Indiegogo and observing people who seek to raise money using crowd sourcing.

In every case that I have seen so far, the campaigns that worked had activated their core circle of trusted people who themselves had such a circle - who had such a circle and so on. It was this inner circle that did the work. The campaigns that just threw the ask out to the general network, tended to fail. There was no power to the general ask for help. 

Why is this? If I have 3,000 friends on facebook - why don't they help me - they say they are committed but they don't act?

I think of my own behaviour. I will only act if a few people that I know well and trust ask me. For the rest, the answer is always no. How small is this group? Maybe 8 and no more that 30+ depending on the context.

This is my real network. I only act on strong ties not weak.

It may extend further on occasion to people who used to be in the inner circle but for whom time has passed and they have moved further out. So an ex close colleague or friend can call out of the blue and I will be ready to act. They remain people who have been trusted, Any of you who have served in the military will know this. When a ex shipmate or buddy calls, you go back immediately to where you used to be in trust.

I am seeing that this inner circle of trust is the "leverage". You have to pay attention to your reputation and to your inner network. To get you have to give. It's all barn building. 

A high quality inner network is the goal.

This quality is all based on trust. So if I am right, then the drive for many friends is a waste of time and is based on the simple view of the network. We are not simple, we are complex humans! No Trust - No Commitment or Action.

The New Super Trust Leverage - Trust Platforms - What is new then and what I think is the Highland Park Game Changer - are platforms that create this level of trust among people who have never met!

Airbnb is a good example. Here is a platform that enables you to offer your place for rent to strangers. Etsy is another. Here is a platform that enables you to sell your crafts to strangers. Amazon is enabling a new publishing system for the "small" author. Visa is another. Visa is a platform that enables a retailer to take your money safely.

They key to all of these platforms is that they mediate and maintain high levels of trust. Thus enabling us to DO THINGS with small vendors and to be small vendors on a global scale.

They also do this at a very low cost. No Budget hotel chain can compete with Airbnb in price and value. No storefront with Etsy. No publisher can do what Amazon is doing for the small author. This trust mediation gives both sides of the transaction a deal that is impossible for the Factory model to replicate.

There is also a huge secondary impact. That is, as each of us buys from another in trust platforms, the trust that was at first mediated, becomes real. We tend to go back to the same places on Airbnb because we get to know and like each other. We get in touch with authors who use Kindle and start to have a real relationship with them.

So what I see is that the product of each successful transaction in trust platforms is the exponential increase in trust. This in turn increases the utility for all. The line between provider and consumer becomes blurred. This then is when an author can get crowd funding to help him write the new book! This is when the farmer can pre-sell his crop or meat in the spring for delivery in the fall.

The value is not confined to the connections alone but to the overall trust in the system.

This is the game changer. This is a much much better deal for all than the Highland Park system. It was Highland Park that overthrew the old local and artisan system because it was then a better deal for all. So I think Trust Platforms will overthrow the Highland Park world. 

Highland Park was the new factory that Henry Ford opened in 1910 that had all the new features of the Production Line installed. It was the DNA of the process that would be at the heart of all modern institutions. Mass Production killed the small and the local because it could offer a car for much less money than one made by hand by artisans. It also gave a large unskilled work force much more money than a day labourer job could. Both sides of the mass market were created.

This better deal meant that The small and the local got pushed to the fringe. The family farm nearly died. The local paper died. The bakery, dairy, butcher, general store, iron foundry all died. The local banker who knew everyone was no longer needed. The local doctor who had a stake in the health of his community was no longer needed. The local diner that held the community together was no longer needed. All were replaced by Highland Park. And so we ended up Bowling Alone - for as community died, so did Trust.

All became simple transactions. 

We all came to depend on a few vast organizations for all that is important for us. Vast organizations that not only do not care for us but work only for their own needs now. For the Highland Park Contract has been broken. Now most of us have the wages of day labourers, if we are lucky! Now most of the products and services are of low quality or worse, hurt us. 

We are ready for something better and something better is here. 

It's early days. It is maybe the equivalent of 1920. But I see Trust Platforms taking over the role of Highland Parks. They will do this because they are a better system. They offer more value to all. The evolutionary Tipping Point is 20%. Each time the trust platform takes 20% of the gross out of the sector, the Highland Park alternative will fall. 20 employees at Craigslist did this and look what happened to the mass production newspapers.

When 20% of kids  choose the Platform rather than school, most of the universities will fold. When 20% of us stop going to the doctor for our chronic illness, how will they and big pharma cope? Coming will be a local food system that is based on trust and real food. When 20% of us buy all our food locally, how will Big Food cope?

Highland Park is trapped by their fixed process costs. With a 20% loss of gross and a trend of lower gross as the network grows, they cannot stand.

Evolution will work quite well and has a good chance of solving what seems to be the impossible world situation in front of us.  

Boingo - The Power of Strong Ties

What would it be like if your business had a sales, marketing and support force that was 1.3 million strong that you did not have to pay for? What if you could source this leverage with a tiny central force? Sounds impossible? Do you have any idea of how this could work?

Now that everyone is using Social Media – what I am seeing mainly are people who using the new tool in the old way – trying to shout above the noise – “Look at ME!” “Aren’t I cool!” “Aren’t we good!”. I am seeing a Dilbert approach – “Let’s have a Facebook site” “Let’s get on Twitter”.

Most do what most do when a new technology arrives – they apply it in the old way and so get nothing in response.

So what then is the power and leverage that you can harness by using social media well?

Boingo are on their way to finding out how to do this. Oh yes and I am one of the people that are part of this and oh yes I am not being paid and nor do I in any way work for them. I am living the theory.

So how might this work and so how might you do this too?

Boingo have a class of people that are deeply committed to the enterprise that Baochi calls her “Super fans”. They and why they are connected to Boingo and each other is the core of the leverage potential. We will meet 4 of them in this post who agreed enthusiastically to be interviewed by me. As you will see, these Super Fans are attracted first of all to Boingo by the obvious:

• The service – easy one stop access to Wifi in Airports and Hotels – is now no longer a nice to have for travellers but an essential
• The support for the service is outstanding – got a problem – you get instant personal help

But a great product is not enough. Nor is good service. What is the differentiator for Boingo is the human nature of the relationship that Boingo has with its customers. Most organizations do not allow their people to be human. Service people are often ciphers working from a script. Boingo have set up an environment where their key point of contact is a real person who is allowed to be herself.

She has a name and a face and we are all in awe and a bit in love with her. We all feel her presence watching over us. It is way more than getting her help when we can’t sign on. She watches out for us. Have a problem – A quick tweet. In minutes she is there. She is like the guy who runs the old corner store who holds your keys when you go away, keeps an eye on your kids in the street, helps you find a new roommate.

As Nuno Montegro, a customer in Portugal says – It is not what she says but how she says things that is the difference.

Nuno is like me, a customer who actively refers others to the service.

Most of Social media is all about Weak Ties – They are very useful but Weak Ties don’t get people to do much – or risk much – or commit much – that is why they are Weak – they are easy.

If you want to do something – Civil Rights in the US – you need Strong Ties. (Nice new piece by Malcolm Gladwell that explores Weak and Strong Ties in depth)

The key to attracting Strong Ties is being human. It is NOT PIMPING your product. It is instead to show that you really do care about ME. It is instead to show that you can indeed be trusted.

How do you show this? Nuno makes the point that every service and product fails at times. The key is to offer the best possible response to the inevitability of a problem. The best possible response is to know from experience that if there is a problem, you can reach a real person quickly and that they will go the distance to help you get it fixed. “I felt as if I was the only customer in the entire world when she was helping me” Bruno told me. I had the same experience.

Attracting Strong Ties is all about “Giving”.

Aaron Strout is the CMO at social media agency, Powered Inc. and is also Super Fan. “Boingo is proactive and they don’t expect a direct return – they are not selling all day – so if they want an inch, I go the mile back. It’s Karmic! I know if I have a problem that they will look after me. If people are good and do good, then good comes back. Not necessarily directly but good gets attracted back. We talk about a wide range of things that affect me not just the product – which is great too – have to have that – they listen.”

What Aaron is talking about here is a very old model for an economy that was the centre of all tribal economies – the Gift Economy. In the Gift Economy, the Big Guy is not the man who has the most stuff but the person who gives the most.

This is the power in networks – this is how Open Source Works too.

Cliff Bremmer is a programmer who works for a company called Carley Corporation that bids on government contracts to develop instructional CD base/computer based training for the US military.  ”In my spare time I help companies understand and navigate the social media spectrum in a professional yet interactive way.  The company I’m currently helping is the one my father works for called the Jamaica Pegasus Hotel“.

The Gift?

Not only is he a fan but in interacting with Boingo he has learned a lot about how to use SM media well. “If there is anything I’m proud of lately it’s that I helped the Pegasus Hotel promote their brand with the help and support of @Boingo and other companies to become one of the most popular brands in Jamaica.” Boingo is  not only helping him with his travel and Wifi but is talking with him and helping him help his dad in his business with advice and Tweet Up prizes such as free access and bag tags. The Gift in action!

He can see the flaws of how most use SM – “They are stuck in self promotion versus communication. I can see through it all – it’s all about them.”

In the Gift Economy that drives Trust and so Strong Ties, the starting point is YOU. In the non network economy the starting point is ME. No small difference!

Shelby Rogers is a flight attendant, a serving soldier (in the active reserve) and the wife of a serving soldier. Travel is her life. When she is not working, she travels. Access to Wifi has made her travel better – “I now know more than the Gate Agent does about my flights!” and it has taken away much of the loneliness that travel brings with it. Who has not been alone eating room service and watching TV in our room? “I can stay in touch with my husband on Skype and every city seems to have a friend in it.”

For Shelby, Boingo is a service that truly meets her needs. But it is how Boingo is connected to her that has transformed a pleased customer into a Super fan.

How often has your service provider taken you out to dinner? “We have even had dinner recently. I am now a walking billboard for Boingo with winking bag tags!”

So what does this mean? What are the lesson for both Boingo and for you?

• Baochi is no accident – the Boingo senior leadership have created the role and given it the space to enable someone who is naturally humane to be herself inside it. This new way of using Strong Ties to be the centre of a network is all about culture. In most cases senior leadership is too scared to let go. But if you do let go and create this safe place then the power of the network effect can be yours
• A really powerful network has to have an inner core bound by Strong Ties. This is where the leverage is. One staff person like Baochi can without too much trouble have close ties with 34 people. That gives her an outer network of 1.3 million. If she can handle the Dunbar limit of 144 that creates an opportunity of 400 million! You can see that with the right person, you can have a vast reach – provided you realize that your goal is not to have thousands of relationships but a few Strong Ones
• The secret is the math of social leverage. Many of you know about the “Dunbar Number”. Some of you know about “Magic numbers – the hierarchy of trust in human groups. If you don’t here is a quick primer.

So what now?

I think that the next stage would be this:

• At the moment all the Super Fans have a strong relationship with Baochi – I think that the best next step might be to find a way to connect them to each other
• At the  moment most of the dialogue is still about the obvious and excellent service that Boingo provides – I think that some of the work that the Super Fans could do might be to deepen the conversation – Shelby touched on this in her interview with me – What is it that being easily connected while travelling does? In her case it helped her deal with isolation and loneliness – it helped her do her job better – it kept her in touch with her husband – these are deep issues that I think connect all of us who travel a lot

As I think about networks, I think about the laws of physics. All systems have order and attractors. Some force is needed to keep systems coherent.

Think of the Sun in our own local system. It has mass that provides a gravity that holds all the planets and asteroids and stuff in a pattern. It has energy that creates life in the system. I think that any healthy human social system has to have gravity and light.

At the very centre is the “Right Space” a Trusted Space created by the leadership. In this Space, the Right Person – Right being a person who as part of her natural persona truly cares about others. Connected to her is the fuel and the mass that makes up the Sun – the Super Fans. The closer they are to the centre and the closer they are to each other – the more mass and the more energy. The more mass and energy, the larger and more healthy the network of Weak Ties that form up around the Sun.

What gets in the way is our fear about losing control.

At Disney the surface of the Brand Icon never changes but inside the mask is a person who changes all the time and so is never allowed to speak.

But in the new world we have to take off the costume and let the person inside have conversations with the public – HARD to do.

via fastforwardblog.com

Posted via email from Rob's posterous

Facebook better than books for learning - Co-Working better than the Office too

Steven Johnson is clear here - real learning and real innovation is eventually the product of collisions of ideas - many of which are half formed and long incubated. The more connected you are - the better.

So in truth FB has the potential to be a very important tool. Maybe you did not know but Plato thoughts the written word was very bad for learning. His learning pathway was entirely in dialogue and interaction via the spoken word. He is and was no fool.

Steven Johnson also makes the point about having the ideal physical environment. It was the coffee house and the salon in the age of enlightenment that offered the ferment that produced the core set of ideas that created the modern world.

I think that Co-Working places like the Queen Street Commons offer this in our own time.

No one answers email anymore???

Maybe a bit of an exaggeration but not far off. In the last year it is harder and harder to reach people on email. Not just the young - my kids are part of this and only texting works there - but old farts like me - many of whom don't answer at all - or weirdly get back 2 weeks later?

What is going on? Overwhelm?

What is the alternative - no one answers their phone either and no one gets back to voicemail?

I have found Facebook messaging works - Tweets do - and texting - but many are in the Fart category and dont use these tools.

Mystified on PEI

The British PM asks Facebook's MZ to help engage public in how to cut best!

via youtube.com

However this works this is a great start!

Back to my point on how to do this - Leadership is key - so here we see the PM himself making a symbolic point that the British Government is going to use social media to help engage with the public.

Even if this had been a department head, it would not have been enough - but now with the PM the door is open.

So PEI why not get on board too - VAC is there and can help you

 

Engagement has not been the forte of any PEI government - but a much better job is possible. Cynthia Dunsford has been a key player out there and can help too.

 

Posted via email from Rob's posterous

Facebook and My Birthday

It was my birthday yesterday - I tell you this not to make those who forgot feel guilty - you know who you are - but to make comment about how different this birthday has been.

I am on the road and thought that this would be a birthday that even I would forget. BUT I have had more than 20 happy birthday greetings on Facebook. I ended up feeling very loved and supported. Even more surprising, many of those who wished me well are men and as we all know men don't remember birthdays.

I cannot recall a birthday where I have felt so good.

So here is a small part of the Facebook world - a lead that tells you of upcoming birthdays that adds to a person's life.

So to all of you who did remember - Thank you - you gave me a lovely day

Is it safe to use facebook for tough topics? Is community about tools or people?

I had a long meeting today with some friends in an organization that does a lot to help mums. We are talking about how we may extend what we do in the face to face world to the virtual world.

Many young mums already use Facebook. We debated how we might use it to extend what we do.

Of course, we don't know the answer. Any suggestions?

I can only look for now at what others are doing? How are others using Facbook and other social media tools to help each other when confronted with major challenges that we would normally keep private?

In my family, a recurring curse is depression. I have been spared but my sisters both have this as does my niece. It has been part of our family for generations and has been at the heart of much heartbreak and death. It has been one of our family "secrets". But has keeping it a secret helped us? 

Part of the suffering of depression is that non depressives cannot fathom it. "Buck up and take your meds!" or "Are you insane" are frequent responses.

Part of the suffering is that most suffer on their own surrounded by those who have no idea of what it is like.

Looking at it like this - the answer is no - keeping this reality that everyone finds out about anyway a "secret" has not been a help. The secret has been actually the problem.

My dear Niece Astrid has decided to act. She wants to end her isolation and to look for and to offer help.

Here is a link to her Facebook group. There is already a wonderful conversation going on - I am so proud of her courage to try this.

Which brings me to my other point - I am so frustrated with most of the current discussion about social media - so much of it is about the tools and features of the tools. What I want to learn more about is how can we use them to make a difference.

Imagine it is 1540. All the new media conferences are about Ink and Type. Yes for printers these were important. But for the world - they could not have cared less. What was important was that people who had no power coud get their ideas out there and make a difference.

It was these people like Luther and their ideas that changed the world not a new printing technique.

The conferences that I would enjoy would be ones where people who are getting their power back by using these tools told their stories. I want to hear from Astrid or Tara at UFIT or Jack's people at KETC

I want to hear from you about what you are doing or what you would like to do

More on Facebook and Canada

From Thought Balloons April 2007

It's prom Week - The Police are Watching Facebook

On PEI the Police are looking for bad behavior at Prom Parties by combing Facebook

Bluefield graduates in North Wiltshire west of Charlottetown, have set up a Facebook page titled "A Night of Mayhem." It advertises a prom night party off the Riverdale Road, complete with lights and DJ, and about 300 people have signed up to pay $15 to attend.

Comments on the page include a promise to bring beer, and vows to get drunk.

The talk of alcohol, at this and other parties, has RCMP on alert.

"We're going to have extra patrols on those nights, with road checks in the different areas we feel that are more in demand," RCMP Sgt. Denis Morin told CBC News Monday.

   

Facebook and Canada - Why has Canada taken to FB so Big?

Why is Canada the Facebook hot nation?

1. Toronto, ON (643,951)
2. London (589,485)
3. Vancouver, BC (283,726)
4. Norway (267,079)
5. New York, NY (249,960)
6. Chicago, IL (229,974)
7. Washington, DC (194,503)
8. Calgary, AB (164,713)
9. Boston, MA (159,571)
10. Ottawa, ON (147,994)