How it works

Often, the resources that organizations need to create value are outside of the organization. This is particularly true in complex, uncertain environments. Thus, while facilitating collaboration amongst organizational members is critical to maintaining flexibility and agility, the organization may also benefit from fostering collaboration with external organizations and individuals.

looks_oneIdentify what can be internal/external to the organization

An important first step in developing collaborative relationships with external parties is identifying which activities should be completed using internal resources and which would benefit from external resources. Two factors that influence this assessment are the complexity of the activity and the degree to which knowledge required is “hidden”. Complexity is high when there are many interdependent factors that are difficult to manage and whose impact on outcomes is difficult to predict. Hidden knowledge is high when information regarding a particular area is dispersed among many employees, and it is difficult to determine who might possess the knowledge needed to solve a problem.