Leveraging Networks for Leveraging Networks for Improved PerformanceImproved Performance

Dr. Robin Teigland, akaDr. Robin Teigland, akaKarinda Rhode in SL

Stockholm School of EconomicsStockholm School of Economicswww.knowledgenetworking.orgwww.knowledgenetworking.org

www.slideshare.net/eteiglandwww.slideshare.net/eteigland

RobinTeiglandRobinTeigland May 2013May 2013www.hhs.sewww.hhs.se

Who am I? (LinkedIn Inmaps)Who am I? (LinkedIn Inmaps)

22

SSE

IFL

Swedish

Industry

Research Wharton

Stanford

Tieto

McKinsey

TodayToday’’s discussions discussion

Background Background

Organizational network analysisOrganizational network analysis

Personal network analysisPersonal network analysis

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44

Everyone is talking about networksEveryone is talking about networks

National Innovation Networks

FormalNetworks

Entrepreneurial Networks

Facebook. LinkedIn, Twitter Regional

Networks

Infrastructure Networks

Social Networks

FAS.research

ElectronicNetworks

InformalNetworks

Networksof Practice Networked

organization

What is a network?What is a network?

A set of actors connected by tiesA set of actors connected by ties

•Ties/LinksTies/Links−Knowledge, trust, Knowledge, trust, team, sit by, dislike, team, sit by, dislike, etc.etc.−Alliance, customer, Alliance, customer, investment, etc.investment, etc.

Tie

•Actors/NodesActors/Nodes−IndividualsIndividuals−Teams, Teams, organizations, etc.organizations, etc.

Actor

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Social network analysis has a long history Social network analysis has a long history and is based on matrix algebra and graph and is based on matrix algebra and graph

theorytheory

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http://en.wikipedia.org/wiki/Social_network

Hidden influence of social networksHidden influence of social networks

77http://www.ted.com/talks/lang/en/nicholas_christakis_the_hidden_influence_of_social_networks.html

Happy peopleIn between peopleUnhappy people

Christakis & Fowler, 2011

””No one knows everything, No one knows everything,

everyone knows something, everyone knows something, all knowledge resides in all knowledge resides in

humanity.”humanity.”networksnetworks

Adapted from Lévy 1997

Six degrees Six degrees of separationof separation

- Milgram, - Milgram, 19671967

TodayToday’’s discussions discussion

Background Background

Organizational network analysisOrganizational network analysis

Personal network analysisPersonal network analysis

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Uncovering networks in an organizationUncovering networks in an organization

Formal organization Informal organization

Teigland et al. 2005

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Myths about networksMyths about networks

I already know what is going on in my I already know what is going on in my network. network.

We can’t do much to help informal We can’t do much to help informal networks.networks.

To build networks, you have to To build networks, you have to communicate more.communicate more.

Adapted from Cross et al. 2002

What do you notice about the informal What do you notice about the informal network? network?

1212Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Central connectors within one locationCentral connectors within one location

Bottleneck

Teigland 1998

Surprise!!

Stockholm

1313

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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

1515

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 heterogeneous

Marsden 1987, Burt 1990Marsden 1987, Burt 1990 1717

Stockholm

London

Brussels

HelsinkiMadrid

Copenhagen

Boundary spanners between locationsBoundary spanners between locations

Transferred from

Stockholm

Teigland 1998

San Francisco

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Proximal collaborationProximal collaboration

When people are more than 50 When people are more than 50 feet apart, the likelihood of feet apart, the likelihood of

them collaborating more than them collaborating more than once a week is less than once a week is less than

10%.10%.- Allen 1984

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What is the relationship What is the relationship between networks and between networks and

performance?performance?

2323

BA

Two individuals with the same number of Two individuals with the same number of contacts…contacts…

……but with very different access to resourcesbut with very different access to resources

BA

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Network structure affects performance Network structure affects performance

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Division 1Division 1 Division 2Division 2

Improved efficiency over time

Stagnant performance over

timeSchenkel & Teigland 2008Schenkel & Teigland 2008

Two divisions within Sundlink (Öresund Two divisions within Sundlink (Öresund Bridge)Bridge)

2828

““ManagingManaging”” networks in your organization networks in your organization

Before After

Anklam & Welch 2005

1. Uncover networks

2. Analyze networks

3. Improve connectedness

Informal networks in your organization Informal networks in your organization

Reflect on your organization Reflect on your organization −What informal network would you like to learn more What informal network would you like to learn more

about?about?

What do you think this informal network looks like?What do you think this informal network looks like?−Overarching structure?Overarching structure?−Key players: Central connectors, boundary spanners, Key players: Central connectors, boundary spanners,

peripheral players?peripheral players?

What do you think needs to be done to improve What do you think needs to be done to improve performance, e.g., knowledge flows?performance, e.g., knowledge flows?−How would you like to do this?How would you like to do this?

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Conduct your own ONAConduct your own ONA

1.1. Uncover strategically important networksUncover strategically important networks− Where is collaboration generally poor? Where is collaboration generally poor?

Across Across functional, physical, hierarchical, organizational lines?functional, physical, hierarchical, organizational lines?

− What relationships would you like to uncover?What relationships would you like to uncover? Information flow, knowledge sharing, trust, decision-making?Information flow, knowledge sharing, trust, decision-making?

2.2. Collect and analyze dataCollect and analyze data− How would you like to collect data?How would you like to collect data?

E.g., email, survey, interview, observationE.g., email, survey, interview, observation

− How often do you plan to collect data?How often do you plan to collect data?

3.3. Improve connectednessImprove connectedness− How would you like to provide feedback to the How would you like to provide feedback to the

organization?organization?3131Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Some questions to askSome questions to ask

CommunicationCommunication: How often do you talk with : How often do you talk with the following people regarding (topic x)?the following people regarding (topic x)?

InformationInformation: Who do you typically seek work-: Who do you typically seek work-related information from?related information from?

Problem-solvingProblem-solving: Who do you typically turn to : Who do you typically turn to for help in thinking through a new or for help in thinking through a new or challenging problem?challenging problem?

KnowKnow: How well do you understand this person: How well do you understand this person’’s knowledge and skills?s knowledge and skills?

AccessAccess: Who is generally accessible to you : Who is generally accessible to you within a sufficient amount of time to help within a sufficient amount of time to help solve a problem?solve a problem?

3232Cross et al 2002Cross et al 2002

Analyze and visualize dataAnalyze and visualize data

3333

http://en.wikipedia.org/wiki/Social_network_analysis_software18

Analyze and visualize dataAnalyze and visualize data

3434

NodeXL: http://nodexl.codeplex.com/ http://en.wikipedia.org/wiki/Social_network_analysis_software18

Knowledge sharing across client teamsKnowledge sharing across client teams

3535

Actions

•Identifying overly connected people

•Bridging invisible network silos

•Creating awareness of expertise distributed in the network

•Identifying and drawing in peripheral network members

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

Obtaining benefits of scale and lateral coordination Obtaining benefits of scale and lateral coordination through communitiesthrough communities

Gulf ofMexico

Brazil

Angola

UK

Canada

Saudi Arabia

Nigeria

Gulf ofMexico

Brazil

Angola

UK

Canada

Saudi Arabia

NigeriaBusiness results

•Lowered customer dissatisfaction by 24%•Reduced cost of poor quality by 66%

•Increased new product revenue by 22%•Improved operational productivity by

more than 10%

ONA results•Cohesion – average # steps for each person to get to another – improved

by 25%Cross 2010Cross 2010

Informal networks in your organization Informal networks in your organization

Reflect on your organization Reflect on your organization −What informal network would you like to learn more What informal network would you like to learn more

about?about?

What do you think this informal network looks like?What do you think this informal network looks like?−Overarching structure?Overarching structure?−Key players: Central connectors, boundary spanners, Key players: Central connectors, boundary spanners,

peripheral players?peripheral players?

What do you think needs to be done to improve What do you think needs to be done to improve performance, e.g., knowledge flows?performance, e.g., knowledge flows?−How would you like to do this?How would you like to do this?

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Myths and reality checksMyths 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

3939http://nodexl.codeplex.com/

Importing Email to NodeXLImporting Email to NodeXL

4040http://www.slideshare.net/Marc_A_Smith/analyzing-social-media-networks-with-nodexl-chapter-08-images

Help with NodeXLHelp with NodeXL

Analyzing Social Media Networks with Analyzing Social Media Networks with NodeXL: Insights from a Connected WorldNodeXL: Insights from a Connected World− Book: http://www.amazon.com/gp/product/0123822297?Book: http://www.amazon.com/gp/product/0123822297?

ie=utf8&tag=conneactio-ie=utf8&tag=conneactio-20&linkcode=as2&camp=1789&creative=390957&creative20&linkcode=as2&camp=1789&creative=390957&creativeasin=0123822297 asin=0123822297

Online: http://nodexl.codeplex.com/wikipage?Online: http://nodexl.codeplex.com/wikipage?title=NodeXL%20Teaching%20Resourcestitle=NodeXL%20Teaching%20Resources−Slides: http://www.slideshare.net/Marc_A_SmithSlides: http://www.slideshare.net/Marc_A_Smith

4141

TodayToday’’s discussions discussion

Background Background

Organizational network analysisOrganizational network analysis

Personal network analysisPersonal network analysis

4242

4343

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 2002Casper & Murray 2002

German biotech scientist

s

Bridging unconnected groups brings Bridging unconnected groups brings advantagesadvantages

•More rapid promotions•Greater career mobility

•Higher salaries•More adaptable to changing environments

Brass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & BenassiBrass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & Benassi 4444

Avoid creating insular networksAvoid creating insular networks

http://www.enronexplorer.com/focus/19185#http://www.enronexplorer.com/focus/19185# 4545

Develop three forms of networkingDevelop three forms of networking

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OperationalOperational PersonalPersonal StrategicStrategic

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 2007Ibarra & Hunter, HBR Jan 2007

Build relationships with people Build relationships with people at all hierarchical levelsat all hierarchical levels

Look for complementary Look for complementary skills while maintaining a skills while maintaining a

balance!balance!

Cross, Parise, & Weiss 2006Cross, Parise, & Weiss 2006

Higher: Help with making decisions, Higher: Help with making decisions, acquiring resources, developing acquiring resources, developing political awareness, explaining political awareness, explaining organizational activities beyond organizational activities beyond

local settinglocal setting

Equal: Help brainstorm and provide Equal: Help brainstorm and provide specific help, support, and needed specific help, support, and needed

information information

Lower: Provide best sources of Lower: Provide best sources of technical information and expertisetechnical information and expertise

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Tools to analyze one’s networksTools to analyze one’s networks

FacebookFacebook−TouchGraph Facebook Browser TouchGraph Facebook Browser

http://www.touchgraph.com/facebookhttp://www.touchgraph.com/facebook

LinkedInLinkedIn−http://inmaps.linkedinlabs.com/http://inmaps.linkedinlabs.com/

4848

Analyze your networksAnalyze your networks

http://inmaps.linkedinlabs.com/network

Leadership moving forward……Leadership moving forward……

HierarchyHierarchyLinear, static, process-Linear, static, process-

based organizationbased organization

HierarchyHierarchyLinear, static, process-Linear, static, process-

based organizationbased organization

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

Teigland 2010

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin Teiglandrobin.teigland@hhs.serobin.teigland@hhs.se

www.knowledgenetworking.owww.knowledgenetworking.orgrg

www.slideshare.net/www.slideshare.net/eteiglandeteigland

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin Teiglandrobin.teigland@hhs.serobin.teigland@hhs.se

www.knowledgenetworking.owww.knowledgenetworking.orgrg

www.slideshare.net/www.slideshare.net/eteiglandeteigland

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

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