NET GAINS: A Handbook for Network Builders Seeking Social Change By Peter Plastrik and Madeleine Taylor Version 1.0 (2006) 470 266 501 091 216 133 205 126 172 279 374 256 471 261 289 449 208 331 375 049 145 033 520 223 371 204 543 330 146 053 307 379 134 050 313 066 163 190 005 583 429 556 105 574 253 472 122 235 068 036 523 578 326 070 109 478 351 442 164 149 518 173 455 554 555 344 388 505 249 347 303 550 221 348 244 548 295 304 198 343 077 462 423 288 572 391 337 352 498 345 502 495 380 476 101 052 377 039 023 004 219 334 359 137 338 406 220 019 506 531 257 088 366 084 282 130 420 035 245 489 569 265 060 034 547 044 188 422 155 140 046 229 128 180 376 113 016 108 479 093 100 526 210 512 268 541 010 513 020 381 069 018 287 535 403 458 008 096 516 362 030 390 353 329 277 270 196 340 129 327 358 297 199 300 397 097 165 525 444 561 110 029 530 262 315 318 349 545 319 209 552 519 365 132 350 370 271 183 047 085 316 538 385 500 012 217 201 336 546 532 116 152 083 461 003 346 368 141 162 465 027 285 342 150 264 477 312 437 514 515 473 206 102 160 224 354 487 045 082 378 014 042 509 124 071 228 054 425 521 167 232 158 138 490 320 484 230 043 492 022 557 233 067 112 412 499 384 450 212 467 251 065 333 537 169 446 443 493 576 179 213 428 031 207 231 468 272 426 177 170 117 115 485 195 432 563 111 339 396 533 176 383 559 148 570 236 246 041 299 087 127 328 363 293 411 291 174 438 094 568 092 222 399 226 184 508 292 294 241 413 431 322 564 580 234 587 369 317 079 577 308021 120 240 286 488 355 135 258 539 252 191 356 273 389 187 392 464 051 551 250 325 301 417 451 534 405 453 194 276 072 581 309 536 181 075 247 507 398 408 142 448 037 542 239 211 306 517 081 419 402 218 410 156 168 311 106 382 524 321 267 032 386 263 269 076 571 192 007 430 024 418 584 427 048 409 324 558 463 457 284 136 482 086 361 503 259 549103 387 015 440 059 089 104 238 025 098 582 275 193 416 480 243 452 040 481 161 401 511 254 278 280 575 121 323 562 544 290 494 579 373 028 009 395 153 585 529 447 055 436 058 281 131 475 274 560 123 001 078 522 305 335 421 006 017 415 491 125 439 474 197 433 469 332 214 © Peter Plastrik, Madeleine Taylor Net Gains – Version 1.0 Page 1 of 117 Networks are present everywhere. All we need is an eye for them. Albert-Laszlo Barabasi1 Networks are the language of our times, but our institutions are not programmed to understand them. Helen McCarthy, Paul Miller and Paul Skidmore 2 Net Gains – Version 1.0 Page 2 of 117 TABLE OF CONTENTS Introduction The Authors Acknowledgments Part I: Is a Network Approach Right for You? 1. Starting Points 11 2. What We Mean by Network 14 3. The Difference a Network Makes 18 4. The Business Case for Social-Change Networks 24 5. Gut Check: What It Takes to Build Networks 28 Part II: Organizing Networks: Seven Decisions 6. Three Networks in One: Connection, Alignment, and Production Nets 33 7. Reasons that Bind: Collective Value Propositions 39 8. Who’s In, Who’s Out: The Privilege of Membership 45 9. Who Decides What and How: Network Governance 48 10. The Shape of Things To Come: Structures of Networks 51 11. Rules to Live By: Operating Principles for Network Building 58 12. The Different Roles of Network Builders 61 13. When Funders Organize Networks 64 Part III: Managing a Network’s Development: Five Tasks 14. Weaving Connections: Ties that Bind 68 15. Facilitating Alignment: Production Agreements 74 16. Coordinating Production: Who Does What 78 17. Operating the Network: Management Issues to Anticipate 81 18. Taking a Network’s Pulse: Monitoring and Evaluation 87 19. Visualizing Networks: Maps that Reveal 97 Part IV: Net Gains in the Social-Change Sector 20. Building the Civil Sector’s Networks: Five Strategies 102 A Network Glossary 106 Resources for Network Builders 109 End Notes Cover art: Network map of the after-school sports program network in Boston, provided by the Barr Foundation, using Inflow software. Inflow also used for maps appearing with text. Net Gains – Version 1.0 Page 3 of 117 INTRODUCTION This handbook provides the growing number of people who are developing networks for social change with practical advice based on the experiences of network builders, case studies of networks small and large, local and international, and emerging scientific knowledge about “connectivity.” It is intended to join, complement, and spur other efforts to capture and make widely available what is being learned in the business, government, and civil sectors about why and how to use networks, rather than solitary organizations, to generate large-scale impact. We start with the point of view that networks provide social-change agents with a fundamentally distinct and remarkably promising “organizing principle” to use to achieve ambitious goals. Given the complexity and enormity of social problems, the unrelenting pressure to reduce the cost of creating and implementing solutions, and the recent proliferation of small nonprofit organizations, networks offer a way to weave together or create capacities that get better leverage, performance, and results. Relying on networks to generate social change is not new to philanthropy and nonprofits. Many foundations have funded the civil rights, feminist, and consumer movements for decades and more recently have assembled “learning networks” of grantees that work together to innovate and improve their practices. As Jon Pratt, executive director of the Minnesota Council of Nonprofits, points out, “community organizers and grass roots organizations have applied network concepts for years.” 3 But something new and important is afoot. The nonprofit and philanthropic sectors are under growing demand to do more and better. The number of nonprofit organizations is expanding substantially, as are the tasks they undertake in light of government downsizing. 4 “We’re seeing growth of nonprofit organizations, but not much change in the systems they are trying to impact,” says Pat Brandes, a foundation executive in Boston. Nonprofit capacity is a “chronic problem,” writes Jonathan Peizer of the Open Society Institute. “The sector must embrace new paradigms.” 5 Gideon Rosenblatt, executive director of a Seattle nonprofit and a former Microsoft senior manager, notes that “many environmental leaders are questioning whether the environmental movement has the right strategies and organizational structures in place.” The movement, he contends, has “over-invested in institutional overhead” and “is replicating board development, fundraising and many other functions across thousands of very small organizations.” It is essential, Rosenblatt concludes, to “un-bundle” and rebuild the environmental organizational structure using network approaches. 6 Foundations, a crucial capital market for nonprofits, and governments that contract with nonprofits increasingly seek improved impact, leverage, and “return on investment.” Nonprofits are routinely expected to be more strategic, entrepreneurial, and “high performing,” and to focus on producing outcomes. 7 Some efforts to increase the impact of nonprofits, such as “venture philanthropy,” have focused on strengthening individual organizations to be more effective and efficient. But, as the Maine Community Foundation notes, this approach can be inefficient, since its capacity-building resources are invested across many organizations without regard for redundancy and overlap among the organizations. 8 Meanwhile, foundations typically fund programs rather than Net Gains – Version 1.0 Page 4 of 117 methods of delivery, but more of them are forming their own networks, rather than going it alone, to develop their strategies and pool their resources. In this shifting context for the civil sector, networks represent a fundamentally different response for achieving efficiency and effectiveness. They should not be dismissed as merely the latest fad promoted by business leaders, consultants, and foundations who don’t understand the uniqueness of the nonprofit world. “Network strategies offer a powerful set of tools to manage the key tasks and challenges faced by nonprofits,” argues Jon Pratt. “Network thinking offers powerful analytic and strategic tools for nonprofit boards and managers to increase the stability, influence and autonomy of their organizations.” 9 Most of us have networking in our blood. We build personal networks and connect with other individuals or organizations to get things done that we can’t do by ourselves. But there’s much more to network building than this instinct to link. Building a network is a practice about which much has been learned from the experiences of network builders themselves and the experiments and insights of researchers in mathematics, physics, anthropology, and other disciplines. This is news to most of the social entrepreneur-network builders we meet. Networks in the nonprofit sector are rarely organized to take full advantage of what networks can do. “We in the nonprofit sector always say, ‘We connect,’ but we don’t really know much about connecting,” observes Marion Kane, executive director of the Barr Foundation. For many decades, the overriding organizing principle of the social-change sector, as with business and government, has been the stand-alone organization.