Network Theories of Power – What are the assumptions about power in Social Business ?

I recently finished watching a 60 minute recording of a lecture by Manuel Castells (from USC) on Network Theories of Power which is part of a series of lectures on network theory put on by the Annenberg School at USC (March 2010).  This was a fascinating presentation if you have the time to review it (see below).  I think it has some concepts in it that could inform our ongoing discussions about ‘Social Business’ and power in organizations including how do hierarchical networks relate to more egalitarian networks. 

From a related 2011 article that he wrote:  A Network Theory of Power

Power in the networked society is exercised through networks.

1. Networking Power: the power of the actors and organizations included in the networks …over human collectives and individuals who are not included in these global networks.
2. Network Power: the power resulting from the imposition of the rules of inclusion
3. Networked Power: the power of social actors over other social actors in the network. Some people are more influential than others.
4. Network-making Power: the power to ‘program’ specific networks according to the interests and values of the programmers, and the power to switch different networks following the strategic alliances between the dominant actors of various networks.

While he is focused on power and networks in society, I think that much of his theories and ideas can be applied to organizations as well.  Some of his underlying conclusions; “power relationships are key fundamental relationships in a networked society” and “There is always power and counter-power in society”.  He also discusses the key roles that people hold in these networks including the gatekeepers that decide on the rules that are imposed on people who want to join/participate in a network and the key people who can ‘switch’ the purpose and goals of a network based on a few dominant players.  Even though this recording is a couple of years old, it seems especially pertinent with the recent happenings in the world. 

One of the reasons I think this is important for us is the implications for organizations as we move in the direction of relying on the non-hierarchical networks for the creation of value.  Influence is shifting from the top-down power that has governed organizations towards other forms of influence.  In some of our consultant training we refer to the types or sources of influence as:

• Position Influence – using people’s tendency to respond to individuals in higher positions
• Coercive Influence – the capability to punish, reprimand or discipline others
• Reward Influence – the ability to dispense reward, something positive or desirable
• Information influence – possessing information or knowledge not available to others
• Expert influence – based on the skill or expertise which others may hold in high regard
• Personal influence – individual personality, charisma and the relationships you create

The first few above are quite often dependent on the level of authority in a hierarchy.  The last few are available to anyone and very difficult to control from above.

What Manuel is saying is that there will always be questions of power, so how do we see this power shift in organizations happening over the next couple of years and what are the steps that can make this transition as smooth as possible.  I think that this is one of the fundamental questions we face.  There are people who have been successful in the old paradigm who will see this as very threatening.  As employees begin to exercise their influence in the networks, there will be back-lashes. 

How do we include this as part of our organizational change strategy and approaches?  How will this affect our leadership development?  Any large company needs some form of hierarchy (IMHO) so how do we incorporate a new ‘balance of powers’ into our ideas of governance?  I think we need to be thoughtful about this if we want to minimize the amount of turmoil in organizations.  

(citation for the article above:  Castells, M. 2011 Apr 8. Network Theory| A Network Theory of Power. International Journal of Communication [Online] 5:0. Available: http://ijoc.org/ojs/index.php/ijoc/article/view/1136/553 )