1. Managing Strategic Networks 2013
Professor Marissa King
Marissa.King@yale.edu
Course Scope and Mission:
Networks of relationships determine who is likely to get a job and get promoted, the innovativeness
and profitability of organizations, how effectively industries and communities can coordinate, and
the speed at which ideas and innovations spread. Although the importance of social capital is self-
evident, few managers and entrepreneurs know how to effectively structure and coordinate their
networks. In part, this is because many of the principles that structure a strategic network are not
intuitively obvious. The number and type of associates a manager or entrepreneur has is often not
as important as how those relations are structured. The goal of this course is to gain a better
understanding of how to create, use, and manage networks effectively.
Course structure:
Network analysis is both a theoretical perspective and a methodology. In each class, we will focus
on one set of network concepts applied in different organizational settings. We will begin with the
simplest network structures and move towards more complex arrangements of people and
organizations. The first third of the course examines the way in which patterns of social interaction
influence the ability of individuals and companies to achieve their goals (e.g., get a job or transmit
information). The middle of the course focuses on putting the art and science of networks into
action. Finally, we will examine how increasing connectedness in the broader social world is
transforming the way business is done, diseases spread, and ideas go viral.
Evaluation and Grades:
Attendance and Participation: 35%
Assignments: 35%
Field Study: 30%
Field Study:
The final team assignment will allow you to use the theoretical and methodological tools acquired in
the course to evaluate either (1) the network around a manager, (2) a team or unit within an
organization, (3) an interorganizational network, or (4) try to get an idea or product to spread
widely. While former employers and colleagues make fine objects of study, much insight can also be
gained by picking more unusual cases. The project should identify a clear question, problem, or
opportunity and then utilize a combination of observation, interview(s), and/or archival records to
understand the issue. In the final session of the course, each team should present an overview of
their case and the recommendations for moving forward. In addition to the slide deck from your
presentation, you should submit a 3 to 5 page report.
The project should be done in teams of 4 to 5 people that you are free to choose on your own. You
have considerable latitude in what you choose to study but please meet with me to discuss your
project idea by week 5 of the course. Past successful projects have examined network recruitment
from schools into Private Equity firms, the role of twitter in the Egyptian protests, and the Yale SOM
alumni network in Silicon Valley. In general, your project should apply the concepts and theories
discussed in the course to a manager, group, or set of organizations.
Assignments:
There are several individual and group assignments due throughout the course. Some of these will
only take a couple of minutes but others will require more time. It is essential that you complete all
of the assignments since they will be at the core of class discussion.
Attendance and participation:
Attendance and participation are critical to a successful class. If you are unable to attend class,
please let me know 24 hours prior to class. If you have more than two unexcused absences, the
best grade you will receive in the course is a pass.
Laptops:
Laptops are not permitted in class. Please take notes by hand. If you have a particular issue that I
need to address, please see me. If I don’t hear from you about this individually, I will ask you to
close your laptop if I see it open.

2. THE SCIENCE & ART OF NETWORKS
Class 1: Characteristics of Effective Networks, Part I (March 25th
/26th
)
Case: Keith Ferrazzi (OB44-PDF-ENG)
Keith Ferrazzi had certainly come a long way. The son of a steelworker and a cleaning lady, he
attended a top prep school in Pennsylvania, followed by Yale and then Harvard Business School. He
was wooed by top consulting firms and ended up on the partner track at Deloitte Consulting, where
he built the company's marketing function. He left consulting to become the chief marketing officer
of Starwood Hotels and Resorts, eventually leaving the company to become CEO of YaYa Media. In
the summer of 2003, he had sold YaYa Media to a company called American Vantage. Ferrazzi faced
two questions: First, what should he do? Second, what other bases of influence besides networking
and building social relationships should or could he develop?
Readings: Cross, R. and A. Parker (2004). The Hidden Power of Social Networks. Chapter 1. pp. 2-
14.
Small, Mario. 2009. Unanticipated Gains: Origins of Network Inequality in Everyday Life. Oxford:
Oxford University Press. (Chapter 1)
Uzzi and Dunlap, “How to Build Your Network,” Harvard Business Review R0512B-PDF-ENG. 10
pages
Class 2: Characteristics of Effective Networks, Part II (March 27th
/28th
)
Case: Heidi Roizen
Heidi Roizen, a venture capitalist at SOFTBANK Venture Capital and a former entrepreneur,
maintains an extensive personal and professional network. She leverages this network to benefit
both herself and others. The case considers the steps she's taken to build and cultivate a network
that is both broad and deep.
Readings: Knoke, David. Note on Centrality. 2 pages.
Burt, R. 2007. “The Social Structure of Structural Holes.” Pages 10-34 (in Brokerage and Closure)
Class 3: Your network, Lab Part 1 (April 1st
/2nd
)
Individual Assignment:Follow the instructions provided on V2 for completing the network analysis
assignment. I will be available during special office hours or by appointment to answers questions
and provide help. Due by 8am via email on the day of class.
Go to: http://inmaps.linkedinlabs.com/network and explore visulalizing your LinkedIn network. It
may prove helpful to print out a copy of your network and bring it to class in order to facilitate
comparisons with your Facebook network.
Readings: Easterly, D and J. Kleiberg. 2010. Networks, Crowds, and Markets. Pages 43-63.
Segal, Mady W. 1974. “Alphabet and Attraction: An Unobtrusive Measure of the Effect of Propinquity
in a Field Setting.” Journal of Personality and Social Psychology. 30: 654-657.
Stevenson, Seth. 04.24.12. “What Your Klout Score Really Means.” Wired.
http://www.wired.com/business/2012/04/ff_klout/all/
Class 4: Brokerage and Negotiation (April 3rd
/4th
)

3. In class: In this session, we will discuss how successful entrepreneurs leverage their brokerage
positions to create new opportunities through a simulation exercise.
Case: Jerry Sanders
The Jerry Sanders case recounts how an entrepreneur in the medical devices industry rapidly
transformed a technology concept into a virtual company, X-Cardia. The dilemma posed by the case
is whether Sanders’ success with X-Cardia was a one-off or can it Sanders can have the same
success with another company.
Readings: Coleman, James S. “Social capital in the creation of human capital.” American Journal of
Sociology, 94: S95-S120.
Burt, R. 2007. “The Social Structure of Structural Holes.” Pages 10-34 (in Brokerage and Closure)
Class 5: Status, Exchange, and Information Transfer (April 8th
/9th
)
Group Assignment: Two companies, a consulting firm and a manufacturing firm, have hired your
firm to help with a reorganization. You will need to conduct a network analysis to examine current
intraorganizational relations. After highlighting the strengths and weaknesses of the firm’s current
network, make recommendations for restructuring and cultural changes to improve performance.
Assignment on V2. Due by 8am via email on the day of class.
In class: Classroom simulation examining power and status in exchange networks.
Reading: Johnson-Cramer, Michael, Salvatore Parise, and Robert Cross. 2007. “Managing Change
through Networks and Values.” California Management Review 49:85-106.
After class reading: Easterly, D and J. Kleiberg. 2010. Networks, Crowds, and Markets. Chapter
12.
THE PRACTICE OF NETWORKING
Class 6: The Art of Networks, Part I with Guest Instructor Larry Sharpe (April 10th
/11th
)
While understanding the science of networks is critical to creating a successful network, networking
is also an art. Guest instructor Larry Sharpe, CEO of Neo-Sage, a network coaching company, will
provide some of the keys to networking as an art. In the first of two sessions, he will focus on the
approach—techniques for initial introductions to key contacts.
Readings: Kuwabara, Ko. “Networking Like an Investor.” Columbia Case Works. 11pages.
Ferrazzi, Keith. Never Eat Alone: And Other Secrets to Success, One Relationship at a Time. New
York: Doubleday. (Skim)
Class 7: Making Ideas Stick (April 15th
/16th)
Individual Assignment: Thinking back to the past week, what new ideas or facts did you introduce
into a (non-task oriented) discussion on more than one occasion? What posts or emails you have
forwarded in the past week? Post an example on V2. Please limit to a sentence or two but be
prepared to discuss in class in greater detail. Due by 8am on the day of class.
Readings: Heath, Chip and Dan Heath. 2007. Made to Stick. New York: Random House. Chapter 1
Berger, Jonah. 2013. Contagious. New York: Simon and Schuster. Chapter 2.

4. Class 8: The Art of Networks, Part II with guest instructor Larry Sharpe (April 17th
/18th
)
While understanding the science of networks is critical to creating a successful network, networking
is also an art. Guest instructor Larry Sharpe, CEO of Neo-Sage, a network coaching company, will
provide some of the keys to networking as an art. In this session, we will focus on techniques for
following up with and maintaining key contacts.
Individual Exercise: Complete exercise distributed in the first session on the art of networking. Due
at class time.
Group exercise: Solidify proposal for final project and meet with me to discuss it if you have not
already done so.
NETWORKS, DIFFUSION, AND CONTAGION: LOCAL VS. GLOBAL
Class 9: Local Networks, Market Entry, and Market Structure (April 22nd
/23rd)
Case: Mark Twain Bancshares
Marc Twain Bancshares has had a very charismatic chairman, has made MBAs bank presidents at
very early ages, and has a long record of innovation. Now deregulation and a coming change of
leadership may threaten the "system" that has made the bank so successful. What are the the
advantages and drawbacks of management based on a strong personality and strong values in the
face of major market changes?
Reading: Currid, Elizabeth. 2007. The Warhol Economy. Princeton: Princeton University Press.
Chapter 1: Art, Culture and New York City pp.1-16.
Class 10: Diffusion of Innovations (April 24th/25th)
Just as structural positions in networks can confer power and status, status also is often the results
of social influence processes. These social influence processes often underlie the diffusion of
innovations.
Assignment: Post on V2 24 hours before class an example of a product that you believe has
successfully diffused. Be prepared to provide an explanation for why you think it diffused so
effectively. Also, post an example of a product that you think would have diffused widely but did
not. (A word or two for each eaxmple is sufficient.)
Reading: Rossman, Gabriel. Climbing the Charts: What Radio Airplay Tells Us about the Diffusion of
Innovation.” Princeton: Princeton University. Chapter 1.
Begin preparing:STEPPSlog that we will discuss in class 12.
Class 11: Influentials, Timing, and Exposure (April 29th/30th)
Readings: Gladwell, Malcom. 2002. The Tipping Point. Back Bay Books. Chapter 2: The Law of the
Few: Connectors, Mavens, and Salesmen.

5. Christakis, NA and Fowler JH. Connected: The Surprising Power of Our Social Networks and How
They Shape Our Lives. New York: Little Brown, 2009.
Watts, D and J Peretti. “Viral Marketing for the Real World.” Harvard Business Review. 2 pages
Optional: Centola, Damon and Michael Macy. “Complex Contagions and the Weakness of Long Ties.”
American Journal of Sociology 113:702-734
Class 12: Contagion (May 1st
/2nd
)
Assignment: STEPPS log is due 24 hours before class.
Berger, Jonah. 2013. Contagious: Why Things Catch On. New York: Simon and Schuster.
Class 13: Fieldwork Presentations (May 6th
/7th)

6. Christakis, NA and Fowler JH. Connected: The Surprising Power of Our Social Networks and How
They Shape Our Lives. New York: Little Brown, 2009.
Watts, D and J Peretti. “Viral Marketing for the Real World.” Harvard Business Review. 2 pages
Optional: Centola, Damon and Michael Macy. “Complex Contagions and the Weakness of Long Ties.”
American Journal of Sociology 113:702-734
Class 12: Contagion (May 1st
/2nd
)
Assignment: STEPPS log is due 24 hours before class.
Berger, Jonah. 2013. Contagious: Why Things Catch On. New York: Simon and Schuster.
Class 13: Fieldwork Presentations (May 6th
/7th)