1. Leveraging Social Networks for
Improved Performance
Dr. Robin Teigland
Stockholm School of Economics
www.knowledgenetworking.org
www.slideshare.net/eteigland
RobinTeigland
June 2013
www.hhs.se
2. Who am I? (LinkedIn Inmaps)
2
SSE
IFL Exec
Ed
Industry
ResearchWharton
Stanford
McKinsey
Research
6. We are all
embedded in
networks
Image: http://info.data-scout.com/blog/bid/154938/Six-Degrees-of-Separation
7. 7
Six degrees of separation
- Milgram, 1967
Image: http://www.deliveringhappiness.com/on-six-degrees-of-separation/
8. A big bang in the information universe
2.7Bln
daily comments and
‖likes‖ on Facebook
500Mln
daily posts on Twitter
and Weibo combined
200k
videos uploaded to
YouTube daily
Image: http://en.wikipedia.org/wiki/Internet, Tomas Larsson, 2012
9. From six degrees to four degrees
9http://www.telegraph.co.uk/technology/facebook/8906693/Facebook-cuts-six-degrees-of-separation-to-four.html
11. Social Network Analysis (SNA)
- well established today
Network applications appear in most social sciences
− anthropology, management, public health, sociology,
economics
Studies span levels from individual to greater society
• personal social & health support systems
• children’s play groups, high school cliques
• neighboring behavior, community participation
• work teams, voluntary associations, social movements
• military combat platoons, terrorist cells
• corporate strategic alliances, board interlocks
• international relations: trade, aid, war & peace
11Borgatti
12. What is a network?
A set of actors connected by ties
•Ties/Links
−Knowledge, trust,
team, sit by, dislike, etc.
−Alliance, customer,
investment, etc.
Tie
•Actors/Nodes
−Individuals
−Teams,
organizations, etc.
Actor
12
13. Social network analysis has a long history
and is based on matrix algebra and graph theory
13
http://en.wikipedia.org/wiki/Social_network
14. What is distinctive about SNA?
The phenomenon: What we study
− Social relations among entities, conceptualized as social
network
The methodology: How we study it
− Units of observation (cases) are dyads, not individual actors
− Variables are relations, not actor attributes
− Dyadic, autocorrelated data require different statistical
methods
The theory: How we understand it
− Model groups as networks
− Theoretical constructs such as centrality, structural
equivalence, etc.
− No single theory of everything but common perspective
14Borgatti
15. Hidden influence of social networks
15http://www.ted.com/talks/lang/en/nicholas_christakis_the_hidden_influence_of_social_networks.html
Happy people
In between people
Unhappy people
Christakis & Fowler, 2011
16. ‖No one knows everything,
everyone knows something,
all knowledge resides in humanity.‖networks
Adapted from Lévy 1997
Six degrees of
separation
- Milgram, 1967
17. Even organizations are in networks
17Krebs, http://www.orgnet.com/netindustry.html
Internet industry: 1998-2001
20. 20
Where do individuals go for help with problems?
Co-located
colleagues
Intranet
Non-electronic
documents
Internal
electronic
networks
Contacts in
other offices
External
electronic
networks
Internet
Non-electronic
documents
Other
contacts
??
Teigland 2003
21. Knowledge flows along
existing pathways in organizations.
If we want to understand how to
improve the flow of knowledge,
we need to understand
those pathways.
Larry Prusak, Founder
Institute for Knowledge Management
22. 22
Uncovering networks in an organization
Formal organization Informal organization
Teigland et al. 2005
23. What do you notice about the informal network?
23Cross, Introduction to organizational network analysis
24. Revealing the informal hierarchy
24Brandes, Raab and Wagner (2001)
Organization chart shows
how authority ties should
look…
… but digraph of actual
advice-seeking …
… can be
restructured to
reveal “real”
hierarchy!
Knoke
25. 25
Myths about networks
I already know what is going on in my network
We can’t do much to help informal networks
To build networks, you have to communicate
more
Adapted from Cross et al. 2002
26. 26
Why are more social get-togethers and
coffee breaks not the solution?
27. 27
Myths and reality checks
I already know what is going on in my network
Those who think they know their network the
best are usually the ones who know the least
We can’t do much to help informal networks
Informal networks can be ―managed‖ through
changing the organizational context
To build networks, you have to communicate more
Networks can be strategically developed
Adapted from Cross et al. 2002
28. Organizational Network Analysis (ONA)
Diagnostic method for collecting, analyzing, and
visualizing data about patterns of relationships among
people in groups.
Provides view into network of relationships that
enables leaders to…
• improve flows of knowledge, information and
innovation
• build social capital
• acknowledge thought leaders and key information
brokers (and bottlenecks)
• target opportunities where increased knowledge
flow will have most impact on bottom line
• establish a learning organization /community
28Modified from Valente
31. 31
With which colleagues do you discuss everyday technical
issues/work-related problems at least once a week?
Schenkel & Teigland 2011
Red=Male
Blue=Female
=Left org
32. 32
With which colleagues do you discuss exciting new
ideas and better ways of getting things done?
Schenkel & Teigland 2011
Red=Male
Blue=Female
=Left org
33. ‖Birds of a feather flock together‖
―Lika barn leka bäst‖
People find similar people attractive and develop
relations with people like themselves
Our networks tend to be homogeneous
and not heterogeneous
Marsden 1987, Burt 1990 34
35. 36
Proximal collaboration
When people are more than 50
feet apart, the likelihood of them
collaborating more than once a
week is less than 10%.
- Allen 1984
37. New ideas flow
from outside
into organization
through informal
networks
What happens to
them after
entering the
organization?
38Whelan & Teigland 2010
Where does much of innovation start?
40. Complete network structure
Core/Periphery structure
− Network consists of single group
(core) with hangers-on (periphery)
− Core connects to all
− Periphery connects only to core
− Short distances, good for
transmitting information
− Identification with group as whole
Clique structure
− Multiple subgroups of factions
− Identity with subgroup
− Diversity of norms, belief
41Borgatti
41. 42
What is the relationship
between networks and
performance?
44. Performance differs based on one’s network
Firm A
Low
on-time
High
Creative
High
on-time
Low
creative
Teigland 2003
High
creative
Virtual
community
Firm B
45
46. Network structure affects performance
47
Division 1 Division 2
Improved efficiency
over time
Stagnant performance
over time
Schenkel & Teigland 2008
Two divisions within Sundlink (Öresund Bridge)
50. Networking activities recognized and rewarded at
individual and unit levels
Management support for informal and formal
networking activities across internal and external
boundaries
Best practice task group
Personal initiatives
Extensive socialization: personnel rotation, cross-
office teams, “open” office layout
A visionary organization
− Clearly defined mission: ”To make technical contributions for the
advancement and welfare of humanity”
− Supporting core values, e.g., teamwork, helpfulness
− Company-wide goal of World’s Best Laboratory
Hewlett-Packard
Teigland et al 2000 51
51. 52
“Managing” networks in your organization
Before After
Cross; Anklam & Welch 2005
1. Uncover networks
2. Analyze networks
3. Improve connectedness
52. 53
Why are more social get-togethers and
coffee breaks not the solution?
53. Organizational Network Analysis (ONA)
Diagnostic method for collecting, analyzing, and
visualizing data about patterns of relationships among
people in groups.
Provides view into network of relationships that
enables leaders to…
• improve flows of knowledge, information and
innovation
• build social capital
• acknowledge thought leaders and key information
brokers (and bottlenecks)
• target opportunities where increased knowledge
flow will have most impact on bottom line
• establish a learning organization /community
54Modified from Valente
54. ONA Actions
•Identify overly connected people
•Bridge invisible network silos
•Create awareness of distributed
expertise
•Bring in peripheral players
ONA Results
•24% rise in customer satisfaction
•66% reduced cost of poor quality
•22% increase in new product
revenue
•10% improved operational
productivity
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.
Brazil
Angola
Saudi
Arabia
Canada
U.K.
Nigeria
U.S.Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
Conducting ONA leads to results
Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi
Arabia
Nigeria
Gulf of
Mexico
Brazil
Angola
UK
Canada
Saudi
Arabia
Nigeria
Cross 2010
55. Informal networks in your organization
Reflect on your organization.
− What informal network would you like to learn more about?
What do you think this informal network looks like?
− Who are the key players: central connectors, information
brokers, peripheral players?
− What does the overarching network structure look like:
core/periphery, cliques, silos, isolates?
What do you think needs to be done to improve
performance, e.g., knowledge flows?
− How would you like to do this?
56
56. Some questions to ask
Communication: How often do you talk with the
following people regarding (topic x)?
Information: Who do you typically seek work-
related information from?
Problem-solving: Who do you typically turn to for
help in thinking through a new or challenging
problem?
Knowing: How well do you understand this person’s
knowledge and skills?
Access: Who is generally accessible to you within a
sufficient amount of time to help solve a problem?
57Cross et al 2002
57. Conduct your own ONA
1. Uncover strategically important networks
− Collaboration generally poor across functional,
physical, hierarchical, and organizational lines
− Meaningful, actionable relationships, e.g.,
information flow, knowledge sharing, trust,
decision-making
2. Collect and analyze data
− E.g., email, survey, interview, observation
− Visually map data
3. Improve connectedness
− Create meaningful feedback sessions
58Cross, Introduction to organizational network analysis
58. Analyze and visualize data
59
http://en.wikipedia.org/wiki/Social_network_analysis_software18
60. 61
Myths and reality checks
I already know what is going on in my network
Those who think they know their network the
best are usually the ones who know the least
We can’t do much to help informal networks
Informal networks can be ―managed‖ through
changing the organizational context
To build networks, you have to communicate more
Networks can be strategically developed
Adapted from Cross et al. 2002
62. 63
So, what does this mean for you?
An actor’s position in a social network, i.e.,
social capital, determines in part the actor’s
opportunities and constraints
Casper & Murray 2002
German
biotech
scientists
63. Bridging unconnected groups brings advantages
•More rapid promotions
•Greater career mobility
•Higher salaries
•More adaptable to changing environments
Brass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & Benassi 64
64. 65
―Think about it: everybody you know,
everyone you meet, also know about 250
people. So every time you cultivate a
relationship with one new person, you have
actually expanded your personal inventory by
250 people – every single time.‖
— Bob Burg, Author and Speaker
65. Develop three forms of networking
66
Operational Personal Strategic
Purpose Getting work done
efficiently
Enhancing personal
and professional
development
Developing and
achieving future
priorities
Members Mostly internal
contacts and
focused on current
demands
Mostly external
contacts and
focused on current
and future interests
Both internal and
external contacts
and focused on
future
Network
attributes
Depth through
building strong
working
relationships
Breadth through
reaching out to
contacts who can
refer you to others
Leverage through
creating inside-
outside links
Ibarra & Hunter, HBR Jan 2007
66. Build relationships with people
at all hierarchical levels
Look for complementary skills
while maintaining a balance!
Cross, Parise, & Weiss 2006
Higher: Help with making decisions,
acquiring resources, developing political
awareness, explaining organizational
activities beyond local setting
Equal: Help brainstorm and provide
specific help, support, and needed
information
Lower: Provide best sources of technical
information and expertise
67
73. In pairs, discuss…..
Strategic network development
− What is your personal strategic objective for next 1-2 years?
− What resources do you need to fulfill this objective?
− What resources do your network ties give you access to?
− What network ties do you need to strengthen?
− How can you help one another make new connections?
− How could you use social media to help you develop your
strategic networks?
Resource Network tie Strength Action
75. Karinda Rhode
aka Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
www.nordicworlds.net
RobinTeigland
Photo: Lindholm, Metro
Photo:
Nordenskiöld
Photo:
Lindqvist
If you love knowledge,
set it free…
Seeing natural systems as networksMolecules: network of kinds of atomsBrains: neural networksOrganisms: network of specialized cellsOrganizations: networks of jobs/individualsEconomies: networks of organizationsEcologies: networks of organismsTelephone, roads, internet, etc...
Fowler: http://www.youtube.com/watch?v=zkmsjFisW_AMin 10 start and then to 15.4446% of variation in how many friends you have is explained by your genes – some born shy and some gregarious.47% of variation in whether your friends know each other has to do with your genes. So do people knit networks of those around them or not….30% of variation in whether in middle or on edge of network has to do with your genes.
Each node in the network represents a company that competes in the Internet industry. Two companies are connected with a grey line if they have announced a joint venture, strategic alliance or other partnership. This map shows a subset of the total internet industry -- 250 companies -- during the period from 1998 to 2001. Many companies have a few partnerships, a few companies have many. The industry is dominated by several 'hubs' -- companies with bridging ties that connect the unconnected. Prior to 2002, the best positioned companies in this network of partnerships were: Microsoft, AOL-TimeWarner and IBM. These industry visualizations demonstrate the forces that organizations exhibit upon each other in complex, interconnected economic systems. The data is gathered from various public sources and includes only data on business partnerships such as strategic alliances and joint ventures.We can also measure the map and determine which nodes are well positioned. A well-positioned company will be able to learn about, adapt to, and influence what is happening in the industry. These measures illuminate the competitive advantage of 'being in the right place' in the network of information, knowledge, and resource exchanges. In a networked economy, the player with better connections to diverse knowledge and resources has a great advantage.A well connected node... hears about, and understands, what is happening in the network before others do influences others through direct and indirect ties acts a broker of key information and knowledge between various parts of the network combines information and knowedge gathered from various parts of the network to develop innovative products and services More musings on complex organizational systems are available in my article in the Feb. '96 issue of Esther Dyson's industry publication, Release 1.0.Also, check out the interactive network -- need Java 1.1 enabled browser -- try the right-click options on any node/company. Beware! People have been known to waste their whole lunch hour playing with this interactive maplet.
Formal – reports to, unit of, task interdependencies, rights, obligationsInformal – helping, informing, gossip, trusting, joking, harassmentBut also among organizations As corporate entities – JVs, alliances, partnership, supplier, customer, boards, invests in, outsourcingAs individuals – friends, ex-colleagues, interlocking directoratesKin basedOther role-basedCognitiveAffectiveInteractionsAffiliations & proximities & attributes
First, the ONA identified mid-level managers that were critical in terms of information flow within the group. A particular surprise came from the very central role that Cole played in terms of both overall information flow within the group and being the only point of contact between members of the production division and the rest of the network. If he were hired away, the efficiency of this group as a whole would be significantly impacted as people in the informal network re-established important informational relationships. Simply categorizing various informational requests that Cole received and then allocating ownership of these informational or decision domains to other executives served to both unburden Cole and make the overall network more responsive and robust. Second, the ONA helped to identify highly peripheral people that essentially represented untapped expertise and underutilized resources for the group. In particular, it became apparent that many of the senior people had become too removed from the day-to-day operations of this group. For example, the most senior person (Jones) was one of the most peripheral in the informal network. This is a common finding. As people move higher within an organization their work begins to entail more administrative tasks that makes them both less accessible and less knowledgeable about the day-to-day work of their subordinates. However, in this case our debrief session indicated that Jones had become too removed and his lack of responsiveness frequently held the entire network back when important decisions needed to be made.Third, the ONA also demonstrated the extent to which the production division (the sub-group on the top of the diagram) had become separated from the overall network. Several months prior to this analysis these people had been physically moved to a different floor in the building. Upon reviewing the network diagram, many of the executives realized that this physical separation had resulted in loss of a lot of the serendipitous meetings that occurred when they were co-located. Structured meetings were set up to help avoid operational problems the group had been experiencing due to this loss of communication between production and the rest of the network.
Social Network Analysis (SNA) is a diagnostic method for collecting and analyzing data about the patterns of relationships among people in groups. SNA provides a view into the network of relationships that gives knowledge managers leverage to:Improv e the flow of knowledge, information and Innovation; Build social capitalAcknowledge the thought leaders and key information brokers (and bottlenecks); Target opportunities where increased knowledge flow will have the most impact on your bottom line. Establishes a learning organization /communityIn addition to that, SNA present the advantages of:Providing both a visual and mathematical analysisUsing community inputsBeing replicable
Image from Anklam, 2009
Social Network Analysis (SNA) is a diagnostic method for collecting and analyzing data about the patterns of relationships among people in groups. SNA provides a view into the network of relationships that gives knowledge managers leverage to:Improv e the flow of knowledge, information and Innovation; Build social capitalAcknowledge the thought leaders and key information brokers (and bottlenecks); Target opportunities where increased knowledge flow will have the most impact on your bottom line. Establishes a learning organization /communityIn addition to that, SNA present the advantages of:Providing both a visual and mathematical analysisUsing community inputsBeing replicable
Cross, Intro to ONAIdentify a strategically important group.The first step is to identify a group within the organization where investments made to improve collaboration have the potential to yield a significant payback either strategically or operationally. We typically look for groups crossing functional, physical, hierarchical and organizational lines because networks often fragment at these junctures. 2. Assess meaningful and actionable relationships.The second step is to identify relationships that will meaningfully reveal a group's effectiveness as well as be actionable for managers once results are disclosed. Most companies are keenly interested in work-related collaboration. As a result, we almost always map information flow. We can also look at relationships that reveal the information sharing potential of a network, decision-making or power relations, or those that reveal well-being and supportiveness in a network such as friendship or trust networks. Organizational network information can be obtained in a variety of ways, from tracking e-mails to observing people over time. Often the most efficient means is to administer a 10-20 minute survey designed to assess relationships within and outside of a group. 3. Visually and quantitatively analyze results.Once the data have been collected, it can be analyzed using a network software package. There are a variety of different packages available, some of which combine drawing functionality with quantitative analysis and some of which specialize in one or the other. For more information on visual assessment see the interpreting a network diagram section. 4. Create meaningful feedback sessions.We typically conduct feedback sessions in two phases. In the first half of the workshop, we present an overview of network analysis to orient the participants, and then provide a summary presentation highlighting important points from the analysis of the specific group. The second half of the workshop consists of breakout sessions with smaller groups that brainstorm ways to promote appropriate connectivity and ensure that organizational design, culture and leadership will not push the network back to ineffective patterns. These subgroups then debrief the larger group, and ideas are catalogued for action planning. In this process, it is always important to focus on what can be done to improve the effectiveness of the group. Rather than questioning why someone or some department is peripheral or central, it is more constructive to focus on how the organization can overcome unproductive patterns. 5. Assess progress and effectiveness.Conducting an organizational analysis of a group indicates the level of connectivity only at a specific point in time. Repeating this process after six to nine months can reveal whether appropriate change has occurred in the network. It is also a good idea to track objective measures of performance over time.
http://www.ux-sa.com/2007/09/structural-holes-and-online-social.htmlBut avoid becoming a bottleneck!
Kenneth Lay delegated responsibility to those in his old boys network – failed to listen to someone outside the club – Sherron Watkins.
http://www.fieldstonealliance.org/client/tools_you_can_use/08-05-09_social_capital.cfm#tableMapping your social capitalThe social capital mapping exercise that follows is designed to be done either by an individual (Option A) or by a group (Option B). Either option will help you create a “map” of your connections and networks—a table listing who you know, the type of tie you have to the person or network (strong tie or weak tie), and the resources that each person or network can access. Option A: Individual exerciseUse this exercise to map your social capital in general, or to analyze your social capital with key stakeholders or potential partners for a specific community project.Step 1. List the relevant groups and organizationsUse the following table for this step. In the first column (Group or Organization), list the groups and organizations with which you are linked. For example, you might be a member, serve on staff, or participate as a board member or volunteer. You might also do business with some of these groups or have a personal connection with their leadership.If you are doing the exercise to map your general social capital as a nonprofit or community leader, be selective about the organizations that you list. Focus on those that play some sort of community role.If you are doing this exercise to map your social capital for a particular initiative, list the groups or organizations that are most relevant to it. Include organizations inside and outside your community.Step 2. Determine the strength of the tiesIn column two, indicate groups with an S or a W:S = Strong ties = higher levels of trust, reciprocity, and durabilityW = Weak ties = lower levels of trust, reciprocity, and durabilityStep 3. Determine the resources representedIn the Resources column, write down the resources that each group represents. Resources include money, information, votes, volunteers, and access to other groups and networks.Step 4. Analyze the mapWhen your map is finished, analyze it by answering these questions:What resources do your strong ties give you access to?What resources do your weak ties give you access to?Are there ties you want to strengthen? If so, how will you strengthen them?Are there relevant groups with which you lack social capital (that is, they do not appear on your map)? How will you access the resources of these groups?How can you leverage your ties to have access to more groups, organizations, and resources?Step 5. Set next stepsAfter you've finished the analysis, identify how and when to use the results. Determine what actions you will take in response to the questions in the Analysis— especially how you will strengthen ties, build new ties, and leverage existing ties to increase social capital.Group or Organization Strength of Tie Resources