Leveraging networks for improved performance
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Leveraging Social Networks for Improved Performance
Professor Robin TeiglandStockholm School of Economicswww.slideshare.net/eteigland RobinTeigland March 2016
www.hhs.se
Who am I? (LinkedIn Inmaps)
SSE
Exec Ed
Swedish
Industry
Research
WhartonStanford
McKinsey
vonorange.com
Today’s discussion
Leveraging networks−Background
− Organizational network analysis
− Personal network analysis
Third Industrial Revolution−Exploring new forms of value creation
3
What most people think of when they hear “social networks”
4
Then…
Thx to R. Wieselfors, Ericsson for photos
…Now
Thx to R. Wieselfors, Ericsson for photos
7
Six degrees of separation- Milgram, 1967
Image: http://www.deliveringhappiness.com/on-six-degrees-of-separation/
But the number of degrees is falling…
8http://www.telegraph.co.uk/technology/facebook/8906693/Facebook-cuts-six-degrees-of-separation-to-four.html
Increasing focus on network science
9
Hidden influence of social networks
10http://www.ted.com/talks/lang/en/nicholas_christakis_the_hidden_influence_of_social_networks.html
Happy peopleIn between peopleUnhappy people
Christakis & Fowler, 2011
11
”No one knows everything, everyone knows something,
all knowledge resides in humanity.”
networks
Adapted from Lévy 1997
Six degrees of separation
- Milgram, 1967
Image: Krebs
13
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
14
Social network analysis has a long history and is based on matrix algebra and graph
theory
15
http://en.wikipedia.org/wiki/Social_network
Today’s discussion
Background
Organizational network analysis
Personal network analysis
16
What are they doing?
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
19
Uncovering networks in an organization
Formal organization Informal organization
Teigland et al. 2005
What do you notice about the informal network?
20Cross, Introduction to organizational network analysis
Revealing the informal hierarchy
21Brandes, Raab and Wagner (2001)
Organization chart shows how authority ties should look…
… but sociograph of actual advice-seeking …
… can be restructured to reveal “real” hierarchy!
Knoke
Some positions are more important than others
22Anklam 2009
23
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
24
With which colleagues do you discuss everyday technical issues/work-related problems at least once a week?
Schenkel & Teigland 2011
Red=MaleBlue=Female
=Left org
25
With which colleagues do you discuss exciting new ideas and better ways of getting things done?
Schenkel & Teigland 2011
Red=MaleBlue=Female
=Left org
”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 heterogeneousMarsden 1987, Burt 1990 26
Stockholm
London
Brussels
HelsinkiMadrid
Copenhagen
“Information brokers” between locations
Transferred from
Stockholm
Teigland 1998
San Francisco
27
Knowledge sharing across client teams
28
Knowledge sharing across client teams
29
30
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
New ideas flow from outside
into organization
through informal networks
What happens to them after entering the organization?
31Whelan & Teigland 2010
Where does much of innovation start?
32
BA
Two individuals with the same number of contacts…
…but with very different access to resources
BA
33
A
Poor creativity and
innovative performance
Highcreativity and
innovative performance
Teigland 2003
B
Avoid creating insular networks
http://www.enronexplorer.com/focus/19185# 35
Network structure affects performance
36
Division 1 Division 2
Improved efficiency over time
Stagnant performance over
timeSchenkel & Teigland 2008
Two divisions within Sundlink (Öresund Bridge)
37
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 developedAdapted from Cross et al. 2002
38
“Managing” networks in your organization Before After
Cross; Anklam & Welch 2005
1. Uncover networks2. Analyze networks
3. Improve connectedness
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 ofMexico
Brazil
AngolaUK
Canada
Saudi Arabia
Nigeria
U.S.
Brazil
Angola
Saudi Arabia
Canada
U.K.
Nigeria
U.S.Gulf ofMexico
Brazil
AngolaUK
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 ofMexico
Brazil
AngolaUK
Canada
Saudi Arabia
Nigeria
Significantly improved performance
Gulf ofMexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
Gulf ofMexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
Cross 2010
Conduct your own ONA1. 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 40Cross, Introduction to organizational network analysis
Some questions to askCommunication: 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?
41Cross et al 2002
Analyze and visualize data
42http://en.wikipedia.org/wiki/Social_network_analysis_software18
43http://nodexl.codeplex.com/
Today’s discussion
Background
Organizational network analysis
Personal network analysis
44
45
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 scientist
s
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 46
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
47
48
“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
Network Mapping ExerciseMap network connections - Individual work
(20 mins)Share maps – In pairs (2 x 20 mins)Strengthening networks - Plenary (20 mins)
49Adapted from http://enrapkscurriculum.pbworks.com/w/page/21532104/Strengthen%20relationships%20and%20networks
Click here
Leverage social media to build your networks
50
51
What benefits can you achieve through using
social media?- Innovation- Learning
- Relationships- Leads- Other?
Why do people use twitter?
What’s happening now? −News, events, trending topics
What do you think?−Ability to get immediate response
Who else is interested in this?−Ability to reach a broader community−Ability to learn about topic
To take a break−Chat informally about serious and less serious
topics
52
Get started with Twitter
53
Click on the document to the left to see some basic
steps to get started with Twitter
Twitter exercise
How could you use Twitter?How could Twitter help you
professionally?How could you use Twitter to build social
networks in your organization?How will you use Twitter this next week?
54
Develop three forms of networking
55
Operational Personal StrategicPurpose Getting work
done efficientlyEnhancing 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
Exercise
Social 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
Tools to uncover your networks
Facebook−TouchGraph Facebook Browser
http://www.touchgraph.com/facebook
LinkedIn−http://socilab.com/#home/
Klout−http://klout.com/#/dashboard
57
Facebook network via TouchGraph
58http://www.touchgraph.com/facebook
59http://socilab.com/#home
Track your influence
www.klout.com
Some tools to build your network
61
Today’s discussion
Background
Organizational network analysis
Personal network analysis
62
Some positions are more important than others
63Anklam 2009
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
Avoid creating insular networks
http://www.enronexplorer.com/focus/19185# 65
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 ofMexico
Brazil
AngolaUK
Canada
Saudi Arabia
Nigeria
U.S.
Brazil
Angola
Saudi Arabia
Canada
U.K.
Nigeria
U.S.Gulf ofMexico
Brazil
AngolaUK
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 ofMexico
Brazil
AngolaUK
Canada
Saudi Arabia
Nigeria
Significantly improved performance
Gulf ofMexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
Gulf ofMexico
Brazil
Angola
UK
Canada
Saudi Arabia
Nigeria
Cross 2010
Robin Teiglandrobin.teigland@hhs.sewww.slideshare.net/
eteiglandwww.funnovation.se
@RobinTeigland
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