2.2. Network Formation

Ensuring that each new network has the greatest chance to succeed is a process that begins long before the network is formed. Many authors and consultants stress the informal nature of such communities, arguing that any attempt to systematize them will crush them. ConocoPhillips found the exact opposite—that without clear and explicit links to the organization and its business purpose, networks often evolve in ways that fail to contribute to business goals. The company adheres to two fundamental principles in this regard.

First, no network is created without a clear and detailed business case that specifies the value proposition to the company and is agreed on by network leaders and members. Insisting on a business case prior to the creation of a network goes against the typical "let a thousand flowers bloom" approach that is often promoted. But in many cases, uncontrolled growth of new networks saps employees' attention and engagement, leading to neglect and network failure. Setting a high bar at the outset means that every potential new network must have a strong business justification, which signals to potential leaders and members that the result will not be something that consumes their time without producing real business value. For example, in the case of the Upstream Rotating Equipment Network, leaders set out specific and challenging performance improvement goals for turbines, compressors, and pumps.

Second, proposals for new networks must clearly specify the kinds of deliverables that will be produced through the ongoing operation of the network and the specific kinds of activities that it will support. Deliverables (such as research reports and reusable work products) and activities (such as electronic discussions and teleconferences) must relate directly to the business case and support the attainment of business goals. A high degree of focus on these two areas helps separate the wheat from the chaff, leading new network proponents away from fuzzy "more is better" claims about collaboration and toward specific activities that produce a solid payoff for the collective investment of time.

Following these two principles means that, ultimately, ConocoPhillips managers provide each new network—through its business case, its deliverables, and its activities—with a clear operating model that connects it to the overall Exploration and Production business objectives. The principles have a profound effect on the nature and character of networks at ConocoPhillips: aligning them with organizational priorities, helping members understand how they can affect important business goals, providing clear justification for why members should invest their time in the network (how the network melds with their "day jobs"), and shifting the idea of knowledge sharing away from an abstract idea and toward a concrete set of measurable objectives. As a result, networks have become a cornerstone of ConocoPhillips' ability to reach its business goals and deliver additional value through global collaboration and expertise sharing.