Exchanges of Value

No one person can understand a complex system. An Exchange Analysis is ideal as a sense-making exercise and is best conducted through dialogue and conversation. The questions it addresses are grounded in systems thinking, classic network analysis, intangible asset management, and living systems theory. It is designed to:

        - Validate that the network patterns that fulfill the espoused purpose of the network.

        - Identify patterns of reciprocity.

        - Reveal key value linkages, value flows, and "missing links."

        - Show overall patterns of value creation or value loss.

        - Provide insights for Optimizing Value Flows.

Here is an example - Cisco Systems Customer Interaction Network

Key questions to help people see patterns

1. What is the real purpose of the value network?

Every system fulfills its real purpose. Sometimes the espoused purpose of a value network is actually quite different from the purpose that is revealed by its activities.

2. What does the pattern of interaction suggest about the level of trust in the network?

- What norms of behavior are revealed in these exchange patterns?

- What does the intangible activity indicate about transparency and trust?

A consistent pattern of reciprocity in exchanges between roles is an indicator of health value flows and whole-system optimization.

3. What is missing?

- Are there any key influencers or stakeholders not included?

- Are there places where people need to be engaged in exchanges but are not?

Every interaction is an opportunity to create value or build relationship.

4. How deeply enmeshed and interdependent are the roles?

The number, type, and frequency of interactions are indicators of the degree of structural coupling between a pair of roles and may indicate the quality of a relationship.

5. Does every deliverable trigger a response?

Every deliverable should either prompt another deliverable or have a positive impact on the receiver.

6. Are any exchanges at risk?

Sometimes intangible deliverables are unique to the individual playing a role and are at risk of disappearing if someone else plays the role.

7. Is every participant both contributing and receiving value from the network as a whole?

If people feel they are not gaining positive value from the network they are more likely to withdraw. Which roles are value "sinks" that receive value but contribute little? Which roles contribute more value than they receive?

8. Is one type of value exchange more dominant than another?

The dominance of a particular type of exchange may be an indicator of assumptions about value that drive system behaviors. A high number of intangible exchanges is not always a positive sign. It could indicate that people are interacting informally to try to manage infrastructure problems or unhelpful behaviors. Some intangible interactions are actually "work-arounds" where something is broken or a role is not being well executed.

9. Where are the "pulse points" in the network - those key interactions that provide important clues about the health of the entire network?

It isn't necessary to monitor every single interaction in a network. However, there are some interactions that are particularly critical to the overall health and vitality of the network. Surprisingly, people can readily identify two to four key "pulse points" even in very complex networks. Pulse points are places where monitoring performance is essential.

10. Is there is a "heartbeat" in this network?

- What role(s) is most essential in the life of this network?

- What would happen if the person in a "heartbeat" role is replaced with someone else?

- What ties and deliverables would be affected?

Sometimes the most important roles are simply overlooked. Either the role is taken for granted or it appears to be peripheral to the network, such as a champion or resource provider, or even an unnoticed administrative role. But if that particular role was not there or someone else took on that role the whole dynamic of the network could change in - well, in a heartbeat.

These indicators are especially helpful in understanding overall patterns of exchange in the network. They are described in more detail in Value Network Indicators in the Advanced Analysis chapter.

        Resilience

        Reciprocity

        Risk

        Structure and Value

        Agility

        Stability

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