Jyri Engeström, Product Manager at Google who found his way there by co-developing the microblogging service Jaiku and selling it to the search engine giant in 2007, says that without a hands on approach to its business on all levels of management, the company will lose its touch with the reality.

Sounds rather obvious, doesn’t it? But Engeström claims that the world’s biggest cell phone maker Nokia may have lost the crucial connection between what happens in the field and what happens in the managers’ world. Where at Google, says Engeström, even the most top level managers are still contributing to the code themselves and monitoring the development of their products first hand, at Nokia the bosses are lost in their own chambers. At Google, the founders Larry Page and Sergey Brin have even given up their personal assistants because they didn’t want to get estranged from their workers and the people who use their products.

A recent post in the Harvard Business Blog talks about the change we’re witnessing in organizations around us due to the development of networking tools such as Twitter. The writer, Rosabeth Moss Kanter, recalls how America in the 20th century was called a “society of organizations”. Formal hierarchies with clear reporting relationships gave people their position and their power.

In the 21st century, however, the world is rapidly becoming a society of networks, even within companies and other organizations. People with power and influence derive that power from their centrality within self-organizing networks that might or might not correspond to any plan on the part of designated leaders. Fewer people act as power-holders monopolizing information or decision-making, and more people serve as integrators using relationships and persuasion to get things done. There’s a study that shows some of the fastest growing companies realize that, at least on the level of how they use social media in their marketing mix.

But in terms of the organizational structure, I bet that Nokia isn’t alone with its problem. In fact, I think that most companies around the world that were born in the industrial era are struggling to change to become more like Google, a company mostly developed in the networking era of the 21st century, where a less hierarchical model of connecting and sharing ideas comes more natural.

In the advertising world, there is a debate about traditional vs. digital, and how to combine the things we have learned from both thus far to drive the future. The world we work in, in (digital) advertising, is going through constant change at a seemingly increasing speed with every new tool, piece of code, site and platform that becomes somehow meaningful. Maintaining a good connection to what happens on the ground is a challenge, but it’s easier for those who actively network and participate in the discussion, and who are willing to let go of the old hierarchical model of management. It doesn’t mean that everybody needs to be a coder, a director, a designer and a hyperactive, visionary Twitter user all at the same time, but it helps to have done a bit of it all to have experienced it first hand, and maintain that connection to the ground through all the cycles of change.

Karri Ojanen