The hierarchical organizational structure is outdated. Those outside the organization, including employees after work, have more connections and better access to knowledge than inside. Traditionally, companies have been users of human capital, demanding all intellectual property for themselves. But networks can empower individuals, building upon the strengths of each member. The innovators are moving away from companies and into networks already. Today, most new companies are hiring fewer employees and many existing companies are shedding employees at every opportunity. The newly unemployed often realize their professional networks outside the organization are inadequate. The industrial era social contract between capital and labour is broken. Workers are starting to get more professional value from their social networks than from their companies, especially through open knowledge-sharing.
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