~~Slides from May 17, 2012 presentation at the North East HR Association conference~~ How often have you realized, only after an employee has left the company, how critical he or she actually was to the business? Have you ever found your company in dire straits because key positions have been empty for too long? Or have you hired a promising new executive only to see that person fail after just a short time on the job? If so, you’re not alone. Sixty-four percent of new executives hired from the outside fail at their jobs, according to HR Review. And companies regularly fail to recognize the value of individuals or roles until they’re gone. Succession planning helps improve the situation. But the data most companies use to make decisions about development and succession is incomplete. The missing piece is the organization’s networks. Networks show the hidden relationships within organizations and identify deeply trusted employees, subject matter experts, innovation leaders, effective implementers, and problem solvers. They show who is deeply trusted, who people go to for leadership, and who might shine on their performance reviews but can’t work well with others. Knowledge of the information embedded in networks can help leaders identify high potentials more effectively, make better decisions about succession, and craft more accurate and effective development plans. More: http://partneringresources.com/organizational-networks-and-talent/

1. Stacking the Deck:
Using Hidden Networks to Identify
and Develop High Potentials
Presented By:
Maya Townsend & Keli Trejo
Partnering Resources

2. The Point
HR leaders can achieve
more trustworthy,
complete, and
nuanced information
about high potentials
by using the
organization’s hidden
networks.
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3. Learning Objectives
• Why and how employees develop networks of relationships to
help get work done
• The types of networks that typically form in organizations and
the 3 critical roles in networks
• How the 3 critical roles can help HR professionals identify and
develop more effective and accurate succession and
development programs
• Case studies of how companies have used network analysis to
develop the workforce
• Plans for applying network knowledge to current and upcoming
human capital development and succession planning efforts
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4. About Us
We help organizations address complex collaboration and change challenges
Maya Townsend, Founder & Lead Consultant
• Specializes in using network knowledge to help organizations with
large scale change
• Rich experience in organization change, collaboration, and talent
assessment
• Author: Chief Learning Officer, Talent Management, CIO.Com, Mass
High Tech, et al.
• Presenter: NEHRA, PMI, Gartner, et al.
• Chocolate fanatic
Keli Trejo, Lead Consultant
• 20+ years HR experience, including OD, Executive
Coaching, Business Partner, HR Leadership roles
• Significant change management roles through multi-year HR
transformations
• Deep experience with leadership development and succession
management
• Strong, collaborative client and HR partner relationships
• Artist
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5. ABOUT NETWORKS
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6. What is a Network?
Networks are the webs of trusted
relationships that people forge in
order to perform work:
Routine Work  Socializing  Sharing
Expertise  Innovating  Improving 
Making Ad Hoc Decisions  Mentoring
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Image: NetForm International. Used with permission.

7. Networks versus Social Networks
Social network tools help us
develop and maintain networks But the goal is the network
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8. WHY ARE NETWORKS
IMPORTANT?
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9. Companies like Org Charts…
Jane is at the individual contributor
level on the org chart
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10. But There’s More to the Story
Jane
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11. It’s Not
Just the
Grapevine
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12. It’s Way More
Improvement
Decision-Making
Expertise Innovation
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13. CASE STUDY:
SUCCESSION PLANNING
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14. The R&D Organization
Jerry, CEO of the R&D
Jerry organization, is ready to retire.
Here’s the top three levels of
his organization (lower levels
hidden for simplicity).
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Case: Netform, Inc. Used with permission.

15. The R&D Work Network
To help him decide on a
successor, he asks for a
network analysis. This map Jerry
shows how people connect in
order to get routine work done. Diane is a key player
The thicker lines are stronger in the work network;
connections. she has 9 connections
Diane
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Case: © 2007 Netform, Inc. Used with permission.

16. The R&D Social Network
This map shows how people
connect socially.
Jerry
Joe and the CEO have a
strong social relationship
Diane has only four
connections, none of
which are with the CEO
Joe Diane
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Case: Netform, Inc. Used with permission.

17. Your Turn
Howdy, neighbor!
Who should Jerry appoint as his successor? Why?
Who do you think Jerry did appoint as his
successor? Why?
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18. The Recommendation
Joe would not be a good candidate for
succession since he is not well integrated into
the work network and is overly dependent on the
CEO.
Based on his strong personal trust for Joe, the
CEO chose Joe as his successor.
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19. The Promotion
Joe became the new CEO
Joe
Diane, frustrated at
being passed over,
left the company.
Diane
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Case: Netform, Inc. Used with permission.

20. The Defection
Without Diane, the
organization fractured and
Joe became deeply disconnected
After 6 disastrous months, Joe
was fired.
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Case: Netform, Inc. Used with permission.

21. The Aftermath
Stan stepped in as
the new CEO
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Case: Netform, Inc. Used with permission.

22. HUMAN CAPITAL ASSESSMENT
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23. Quick Case: Who’s the High Performer?
Here’s who the Here are the actual
executives top 30 influencers
thought were as shown by the
the top 30 network analysis.
influencers in a Only 5 people show
Fortune 500 up on both lists.
global
information
company.
Why the gap? The
initial top 30 list
represents only the
executives’ direct
contacts and the
next level down.
They had no insight
into the rest of the
organization.
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24. Quick Case: Critical Connector Lost
• Technology organization
• $75M operating budget
• Annual trade show was a
major revenue generation
vehicle
• The company let go of a low-
level administrator citing the
need to reduce overhead.
• They realized afterwards
that she was single-
handedly responsible for
securing millions of dollars
each year for the trade
show.
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25. Quick Case: Critical Connectors Saved
• Situation: Merger of two
container plants required
decisions about staff retention
and outsourcing
• Results: Leaders identified and
retained people previously on
the layoff list:
► Two employees who provided a
steady source of innovation that
were previously slated for
retirement
► The group of employees that
were responsible for helping a
star achieve
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From Stephenson (2008): “Building a Culture of Trust” and Stephenson (2005): “Trafficking in Trust.”

26. The Critical Connectors
• Identified by Dr.
Karen Stephenson
• Exist in all networks
• Critical Connectors
comprise only 5% of
the network and are
disproportionately
responsible for it’s
success
• Three Critical
Connectors
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Image: © 2005 NetForm, Inc. Used with permission.

27. What HR Gets from a Network Analysis
A Nuanced “Go To” List for Talent
HR can use these lists for…
Creating mentoring pairs  Seeding mission-critical teams  Finding succession
candidates  Accelerating change initiatives
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28. HUMAN CAPITAL DEVELOPMENT
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29. Development & Networks
• Critical connectors have
specific attributes that help
them develop others more
successfully
► We can use critical connectors to
help accelerate on-
boarding, leader
integration, team
development, and so on
• High performers use networks
in specific ways that help
them be successful
► The top 20% of employees are
more likely to build and maintain
personal networks
Adapted from Cross, Thomas, & Light, How Top Talent Uses Networks and Where Rising Stars Get Trapped and The Organizational Network
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Fieldbook, by Cross, Singer, Colella, Thomas, & Silverstone.

30. Network Practices of High Performers
Leveraging the Developing Awareness of
Periphery Expertise
• Learning how to access
• Integrating newcomers rapidly information, expertise, resources, an
• Ensuring access d decision approval
• Ensuring others know how to access
information, etc.
Managing the Center
• Preventing overload
• Freeing up SMEs and high
potentials to help others
Minimizing Insularity
• Building relationships outside Bridging Silos
my expertise, position, function • Brokering connections
• Collaborating • Ensuring collaboration
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3131
Adapted from “Improving Leadership Effectiveness Through Personal Network Analysis and Development,” by Cross in The Organizational Network Fieldbook.

31. Your Turn: Mini Network Assessment
• Which practices do
leaders use most
effectively in your
organization? Please
share success stories!
• Which practices do
leaders need to improve?
Why?
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32. Network Knowledge & High Performance
41%
• 36 - 42% more
34%
likely to exceed
30%
expectations
24%
• 43 – 72% more
likely to be 15%
promoted 11% 12% 11%
5%
• 42 – 74% more
likely to stay with "Far Exceeds" Promoted to Higher Left Company
Expectations Rank
the company
BLP Graduates Control Group Others in Top 5 Job Ranks
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From Burt & Ronchi, “Teaching Executives to See Social Capital: Results from a Field Experiment.”

33. WHAT YOU CAN DO
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34. What You Can Do
1. Map your networks
2. Analyze the data
3. Engage, grow, and leverage critical connectors
4. Evolve the networks
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35. Stacking the Deck
Using Hidden Networks to Identify and Develop High
Performers
Maya Townsend & Keli Trejo
Web: partneringresources.com
Blog: partneringresources.com/blog
Twitter: mayapare
Email: maya@partneringresources.com / keli@partneringresources.com
Phone: 617.395.8396 / 508.212.2268