www.optimice.com.au 1 Social Networks and Organisation al Performance Cai Kjaer Optimice www.optimice.com.au
Jun 17, 2015
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Social Networks
and Organisation
al PerformanceCai Kjaer
Optimicewww.optimice.com.au
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If you want to lay blame…
If you want to get work done…
The formal vs informal organisation
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Kotter’s Dual Operating System
Sources:• Kotter, John P. "Accelerate! How the most innovative companies capitalize on today’s rapid-fire strategic challenges—and still
make their numbers." Harvard Business Review Reprint R1211B (2012).• Graphics from http://www.kotterinternational.com/our-principles/accelerate
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Kotter’s Dual Operating System
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Kotter’s Dual Operating System
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When diffusion starts with opinion leaders, the diffusion occurs more rapidly.
When diffusion starts with randomly selected people, or those on the margins, it is slower.Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010.
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How fast can we change?
Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010.
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•Reward A for getting B fit!
• Social network incentive scheme worked almost four times more efficiently than a traditional individual-incentive market approach
• Predictive model: – The number of direct interactions
that targets had with their buddies was an excellent predictor of how much their behaviour would change AND maintain new practices
– Exposure to a behaviour of peers predicts ‘idea flow’ (ie new practices)
Peer pressure – Get Fit
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Networks and employee performance
“A person who has contacts in multiple groups, (…) can be an advantage in terms of breadth of knowledge, early knowledge, and opportunities or strategically coordinating across groups.”
Ron Burt, Brokerage & Closure – An Introduction to Social Capital.
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Team of ‘A-players’ not equal to success
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Social Learning and Performance• Pentland analysed 10m transactions made by 1.6m users on eToro - a social investment trading platform.–eToro tagline “Connect with other trader &
investors and copy their moves”
• Results published in HBR (Nov 2013):– Investors who paid attention to the trading
strategies of a wide group of people (without following the herd) achieved the highest returns:• Operating alone – suboptimal• Operating as a herd – suboptimal• Diverse connections - optimal
Pentland, Alex Sandy. "Beyond the echo chamber." Harvard Business Review 91.11 (2013): 80-+.
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Social Learning and Performance
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Top down vs local decision-making
460 cars
385 cars
289 cars 60%
improvement
25%drop
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Analysing Yammer Networks
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Collaborating Sideways in Yammer
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Networks and Career Growth
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The Interaction Balance
By me:• Posts• Replies• Likes• Mentions
• Notifies
To me:• Posts• Replies• Likes• Mentions
• Notifies
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Takeaway & Questions
Cai KjaerEmail: [email protected]
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• Networks are critical for innovation and organisational performance
• You can see the connections• You can analyse and
measure them• Predict what will happen