leveraging networks teigland may2011

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Leveraging Networks for Leveraging Networks for Improved Performance Improved Performance Dr. Robin Teigland, aka Dr. Robin Teigland, aka Karinda Rhode in SL Stockholm School of Economics Stockholm School of Economics www.knowledgenetworking.org www.knowledgenetworking.org www.slideshare.net/eteigland www.slideshare.net/eteigland RobinTeigland RobinTeigland May 2011 May 2011 www.hhs.se www.hhs.se

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My presentation on networks and social media to a group of international managers from multinational organizations as part of IFL training program (www.ifl.se).

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Page 1: Leveraging Networks Teigland May2011

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 2011May 2011www.hhs.sewww.hhs.se

Page 2: Leveraging Networks Teigland May2011

TodayToday’’s discussions discussion

Background Background

Understanding organizational networksUnderstanding organizational networks

““ManagingManaging”” organizational networks organizational networks

Leveraging social mediaLeveraging social media

22

Page 3: Leveraging Networks Teigland May2011

33

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

Page 4: Leveraging Networks Teigland May2011

4

Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=searchv=cL9Wu2kWwSY&feature=search

What trends do you recognize?What trends do you recognize?

How are these trends affecting you How are these trends affecting you and your organization?and your organization?

Page 5: Leveraging Networks Teigland May2011

GrowthGrowth

TimeTime

Information and knowledge

Human absorptive capacity

Human capacity cannot keep up…Human capacity cannot keep up…

Adapted from Cohen & Levinthal 1989Adapted from Cohen & Levinthal 1989

Page 6: Leveraging Networks Teigland May2011

””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

Page 7: Leveraging Networks Teigland May2011

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.

TieTie

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

ActorActor

77

Page 8: Leveraging Networks Teigland May2011

Liljeros 2006

Swedish hip hop artists – mid 2000

??Timbuktu

88

Page 9: Leveraging Networks Teigland May2011

Social network analysis has a long Social network analysis has a long history history

and is based on matrix algebraand is based on matrix algebra

99

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

Page 10: Leveraging Networks Teigland May2011

TodayToday’’s discussions discussion

Background Background

Understanding organizational networksUnderstanding organizational networks

““ManagingManaging”” organizational networks organizational networks

Leveraging social mediaLeveraging social media

1010

Page 11: Leveraging Networks Teigland May2011

1111

Uncovering networks in an organizationUncovering networks in an organization

Formal organization Informal organization

Teigland et al. 2005

Page 12: Leveraging Networks Teigland May2011

Central connectors within one locationCentral connectors within one location

Bottleneck

Teigland 1998

Surprise!!

Stockholm

1212

Page 13: Leveraging Networks Teigland May2011

Individuals within a firmIndividuals within a firm

Mattsson 2004

< 1 yr1-5 yrs

5-10 yrs10-15 yrs> 15 yrs

Time at firm

1313

Page 14: Leveraging Networks Teigland May2011

”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 1414

Page 15: Leveraging Networks Teigland May2011

Stockholm

London

Brussels

HelsinkiMadrid

Copenhagen

Boundary spanners between locationsBoundary spanners between locations

Transferred from

Stockholm

Teigland 1998

San Francisco

1515

Page 16: Leveraging Networks Teigland May2011

1616

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

Page 17: Leveraging Networks Teigland May2011

Organizational communication Organizational communication still occurs within formal silosstill occurs within formal silos

1717

•US-based MNC with 30 product US-based MNC with 30 product divisionsdivisions•30,328 people for 3 months in 30,328 people for 3 months in 20062006

• > 114 mln emails and > 114 mln emails and meetingsmeetings

•Where does communication occur?Where does communication occur?•Vast majority is within business unit and functional Vast majority is within business unit and functional boundaries, not across themboundaries, not across them

•Who are the boundary spanners?Who are the boundary spanners?•WomenWomen•Mid- to high-level executivesMid- to high-level executives•Sales & marketing executivesSales & marketing executives

Kleinbaum et al 2008Kleinbaum et al 2008

Page 18: Leveraging Networks Teigland May2011

1818

Trust & reciprocity are essential for

knowledge exchange in

networks

Page 19: Leveraging Networks Teigland May2011

San Francisco

Stockholm

London

Brussels

Helsinki

MadridCopenhagen

Peripheral players between organizationsPeripheral players between organizations

Teigland 1998

Otherfirms

Electroniccommunities

1919

Page 20: Leveraging Networks Teigland May2011

Dual loyaltiesDual loyalties

Loyalty

Loyalty Loyalty

Loyalty

OrganizationOrganization ProfessionalProfessionalnetworknetwork

Teigland 2003 2020

Page 21: Leveraging Networks Teigland May2011

Managing information overloadManaging information overload

2121Whelan & Teigland 2010

Page 22: Leveraging Networks Teigland May2011

2222

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

power?power?

Power: Access to and control over resourcesPower: Access to and control over resources

Page 23: Leveraging Networks Teigland May2011

How does informal power arise?How does informal power arise?

2323Krebs 2004

Jack gains informal power, Jack gains informal power, weakening the boss Lisaweakening the boss Lisa’’s formal s formal

power…power…

Jill

JackBob Lars AnnaSue

Lisa

Mira Sam Fred

Page 24: Leveraging Networks Teigland May2011

How does informal power arise?How does informal power arise?

2424

……and now Jackand now Jack’’s informal power is s informal power is greater than the boss Lisagreater than the boss Lisa’’s formal s formal

powerpower

……and now Jackand now Jack’’s informal power is s informal power is greater than the boss Lisagreater than the boss Lisa’’s formal s formal

powerpower

Krebs 2004

Jill

JackBob Lars AnnaSue

Lisa

Mira Sam Fred

Page 25: Leveraging Networks Teigland May2011

Betweenness•Control over what

flows in the network•How often are you on

the shortest path between 2

individuals?

Closeness•Access to what flows

in the network•How quickly can you reach all others in the

network?

Your network position is related to power Your network position is related to power

2525Krebs 2004

JillJack

Bob

Lars

Anna

Sue

Lisa

Mira

Sam

Fred

Page 26: Leveraging Networks Teigland May2011

2626

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

performance?performance?

Page 27: Leveraging Networks Teigland May2011

2727

BA

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

Page 28: Leveraging Networks Teigland May2011

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

BA

2828

Page 29: Leveraging Networks Teigland May2011

Performance differs based on onePerformance differs based on one’’s networks network

Firm A

Lowon-time

HighHighCreative Creative

Highon-time

Low Low creative creative

Teigland 2003Teigland 2003

HighHighcreativecreative

Virtualcommunity

Firm BFirm B

2929

Page 30: Leveraging Networks Teigland May2011

3030

Bill

Dept 3

Dept 4

Dept 1

Dept 2

Sue

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

Page 31: Leveraging Networks Teigland May2011

…..you “hire” his or her network.

When you hire someone,… When you hire someone,…

3131

Page 32: Leveraging Networks Teigland May2011

Network structure affects performance Network structure affects performance

3232

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)

Page 33: Leveraging Networks Teigland May2011

Network structure affects performanceNetwork structure affects performance

3333Barsh et al 2007, McK QuarterlyBarsh et al 2007, McK Quarterly

Page 34: Leveraging Networks Teigland May2011

Comparing performance across firmsComparing performance across firms

Teigland et al 2000 3434

Page 35: Leveraging Networks Teigland May2011

Networking activities recognized and rewarded at individual and unit levels

Management support for informal and formal networking activities across internal and external boundariesBest practice task groupPersonal 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-PackardHewlett-Packard

Teigland et al 2000 3535

Page 36: Leveraging Networks Teigland May2011

3636

Other network outcomes?Other network outcomes? Individual level

− Improved effectiveness− Improved job opportunities−Higher salaries−Faster promotions− Increased influence & power− Improved health

Organizational levelOrganizational level−Organizational learningOrganizational learning− Improved innovationImproved innovation− Increased salesIncreased sales−Decreased employee turnoverDecreased employee turnover

Painting by Idahlia Stanley

Page 37: Leveraging Networks Teigland May2011

Avoid creating insular networksAvoid creating insular networks

http://www.enronexplorer.com/focus/19185#http://www.enronexplorer.com/focus/19185# 3737

Page 38: Leveraging Networks Teigland May2011

TodayToday’’s discussions discussion

Background Background

Understanding organizational networksUnderstanding organizational networks

““ManagingManaging”” organizational networks organizational networks

Leveraging social mediaLeveraging social media

3838

Page 39: Leveraging Networks Teigland May2011

3939

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 networksnetworks

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

Adapted from Cross et al. 2002

Page 40: Leveraging Networks Teigland May2011

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

4040Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Page 41: Leveraging Networks Teigland May2011

4141

More social get-togethers and coffee More social get-togethers and coffee breaksbreaks are not the solution are not the solution

Page 42: Leveraging Networks Teigland May2011

4242

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

BeforeBefore AfterAfter

Anklam & Welch 2005

1. Uncover networks

2. Analyze networks

3. Improve connectedness

Page 43: Leveraging Networks Teigland May2011

Conduct your own ONAConduct your own ONA

1.1. Uncover strategically important networksUncover strategically important networks− Collaboration generally poor across Collaboration generally poor across functional, functional,

physical, hierarchical, and organizational linesphysical, hierarchical, and organizational lines− Meaningful, actionable relationships, e.g., Meaningful, actionable relationships, e.g.,

information flow, knowledge sharing, trust, information flow, knowledge sharing, trust, decision-makingdecision-making

2.2. Collect and analyze dataCollect and analyze data− E.g., email, survey, interview, observationE.g., email, survey, interview, observation− Visually map dataVisually map data

3.3. Improve connectednessImprove connectedness− Create meaningful feedback sessionsCreate meaningful feedback sessions

4343Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Page 44: Leveraging Networks Teigland May2011

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?

4444Cross et al 2002Cross et al 2002

Page 45: Leveraging Networks Teigland May2011

4545

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

BeforeBefore After

Anklam & Welch 2005

1. Uncover networks

2. Analyze networks

3. Improve connectedness

Page 46: Leveraging Networks Teigland May2011

Analyze and visualize dataAnalyze and visualize data

4646

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

Page 47: Leveraging Networks Teigland May2011

Knowledge sharing across client teamsKnowledge sharing across client teams

4747

Page 48: Leveraging Networks Teigland May2011

Knowledge sharing across client teamsKnowledge sharing across client teams

4848

Page 49: Leveraging Networks Teigland May2011

Network of top two leadership layers Network of top two leadership layers

4949Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Page 50: Leveraging Networks Teigland May2011

Multinational best practices teamMultinational best practices team

5050Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Page 51: Leveraging Networks Teigland May2011

5151

IBMIBM’’s Atlas shows the social network of a s Atlas shows the social network of a topictopic

and how to get to someoneand how to get to someone

Poole 2008

Page 52: Leveraging Networks Teigland May2011

Conduct your own ONAConduct your own ONA

1.1. Uncover strategically important networksUncover strategically important networks− Collaboration generally poor across Collaboration generally poor across functional, functional,

physical, hierarchical, and organizational linesphysical, hierarchical, and organizational lines− Meaningful, actionable relationships, e.g., Meaningful, actionable relationships, e.g.,

information flow, knowledge sharing, trust, information flow, knowledge sharing, trust, decision-makingdecision-making

2.2. Collect and analyze dataCollect and analyze data− E.g., email, survey, interview, observationE.g., email, survey, interview, observation− Visually map dataVisually map data

3.3. Improve connectednessImprove connectedness− Create meaningful feedback sessionsCreate meaningful feedback sessions

5252Cross, Introduction to organizational network analysisCross, Introduction to organizational network analysis

Page 53: Leveraging Networks Teigland May2011

5353

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

Page 54: Leveraging Networks Teigland May2011

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 5454

Page 55: Leveraging Networks Teigland May2011

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

5555

Page 56: Leveraging Networks Teigland May2011

5656

Build relationships before you need Build relationships before you need themthem

Strong Strong tiesties

Weak Weak tiesties

Outside Outside organizatioorganizatio

nn

Inside Inside organizatioorganizatio

nn

Page 57: Leveraging Networks Teigland May2011

Get active!Get active!

5757

Page 58: Leveraging Networks Teigland May2011

Develop three forms of networkingDevelop three forms of networking

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

5858Ibarra & Hunter, HBR Jan 2007Ibarra & Hunter, HBR Jan 2007

Page 59: Leveraging Networks Teigland May2011

In your trios, discuss…..In your trios, discuss…..

Strategic network development Strategic network development −What is your personal strategic objective for next 1-What is your personal strategic objective for next 1-

2 years?2 years?−What networks/contacts would help you reach this What networks/contacts would help you reach this

objective?objective?−How can you help one another make connections?How can you help one another make connections?

Use of social mediaUse of social media−How do you use social media for work-related How do you use social media for work-related

purposes?purposes?−How could you use social media to help you develop How could you use social media to help you develop

your strategic networks?your strategic networks?

5959

Page 60: Leveraging Networks Teigland May2011

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/

6060

Page 61: Leveraging Networks Teigland May2011

6161

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

Page 62: Leveraging Networks Teigland May2011

TodayToday’’s discussions discussion

Background Background

Understanding organizational networksUnderstanding organizational networks

““ManagingManaging”” organizational networks organizational networks

Leveraging social mediaLeveraging social media

6262

Page 63: Leveraging Networks Teigland May2011

OverviewOverview

BackgroundBackground The relationship between networks and The relationship between networks and

creativitycreativity Moving into the Third Industrial Revolution?Moving into the Third Industrial Revolution? Evolution of business modelsEvolution of business models What does this mean for managers?What does this mean for managers? ConclusionConclusion

Page 64: Leveraging Networks Teigland May2011

"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the rate of greater than the rate of

change inside, the end is change inside, the end is near...." near...."

Jack Welch…Jack Welch…

Page 65: Leveraging Networks Teigland May2011

””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

Page 66: Leveraging Networks Teigland May2011

OverviewOverview

BackgroundBackground The relationship between networks and The relationship between networks and

creativitycreativity Moving into the Third Industrial Revolution?Moving into the Third Industrial Revolution? Evolution of business modelsEvolution of business models What does this mean for managers?What does this mean for managers? ConclusionConclusion

Page 67: Leveraging Networks Teigland May2011

BA

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

Page 68: Leveraging Networks Teigland May2011

……but with very different access to but with very different access to resourcesresources

BA

Page 69: Leveraging Networks Teigland May2011

A

Poor Poor creativity and creativity and

innovative innovative performanceperformance

Highcreativity and

innovative performance

Teigland 2003

B

Page 70: Leveraging Networks Teigland May2011

Avoid creating insular networksAvoid creating insular networks

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

Page 71: Leveraging Networks Teigland May2011

A shift from being A shift from being problem solvers to solution finders problem solvers to solution finders

Page 72: Leveraging Networks Teigland May2011

The wisdom of the crowdThe wisdom of the crowd

ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate

OpenOpenInexpensiveInexpensive

SimpleSimpleClose enoughClose enough

Hinton 2007

AccurateAccurate

Page 73: Leveraging Networks Teigland May2011

OverviewOverview

BackgroundBackground The relationship between networks and The relationship between networks and

creativitycreativity Moving into the Third Industrial Revolution?Moving into the Third Industrial Revolution? Evolution of business modelsEvolution of business models What does this mean for managers?What does this mean for managers? ConclusionConclusion

Page 74: Leveraging Networks Teigland May2011

History tends to repeat itself….History tends to repeat itself….Innovation, financial crisis, industrial revolution, Innovation, financial crisis, industrial revolution,

… …

Steam Steam engineengine

Internal Internal combustion combustion

engineengine

MicroelectroniMicroelectronicscs

Late 18Late 18thth C C Late 19Late 19thth C C Late 20Late 20thth C C

Schön 2008

Third industrial revolution?

Page 75: Leveraging Networks Teigland May2011

Breaking free from Breaking free from ““industrial chainsindustrial chains””??

Industrial Economy AssumptionsIndustrial Economy AssumptionsWork and private life are separateWork and private life are separateWork should be seriousWork should be seriousRoles and responsibilities are appointedRoles and responsibilities are appointedLearning occurs behind the deskLearning occurs behind the deskValue is created by firmValue is created by firm’’s employeess employeesFirms are primary source of value creationFirms are primary source of value creationCompetition is a zero-sum gameCompetition is a zero-sum gameEtc…..Etc…..

Page 76: Leveraging Networks Teigland May2011

A new workforce is appearing…A new workforce is appearing…

Prensky 2001, Beck and Wade 2004, Mahaley 2008 Prensky 2001, Beck and Wade 2004, Mahaley 2008

““Digital ImmigrantsDigital Immigrants””““Digital NativesDigital Natives””

Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal

Learning=Behind the deskLearning=Behind the desk

Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal

Learning=Behind the deskLearning=Behind the desk

Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal

Learning=Fun and gamesLearning=Fun and games

Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal

Learning=Fun and gamesLearning=Fun and games

Page 77: Leveraging Networks Teigland May2011

Adapted from FredCavazza.net

“u r always on….”

Page 78: Leveraging Networks Teigland May2011

Drivers of changeDrivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010DiGangi 2010

Page 79: Leveraging Networks Teigland May2011

Building skills in virtual environmentsBuilding skills in virtual environments

My CV•Leading a virtual team of 30

individuals from across the globe•Creating and successfully executing strategies under

pressure•Managing cross-cultural conflict

without face-to-face communication

Teigland 2010

Page 80: Leveraging Networks Teigland May2011

OverviewOverview

BackgroundBackground The relationship between networks and The relationship between networks and

creativitycreativity Moving into the Third Industrial Revolution?Moving into the Third Industrial Revolution? Evolution of business modelsEvolution of business models What does this mean for managers?What does this mean for managers? ConclusionConclusion

Page 81: Leveraging Networks Teigland May2011

http://www.slideshare.net/helgetenno/post-digital-marketing-2009http://www.slideshare.net/helgetenno/post-digital-marketing-2009

Page 82: Leveraging Networks Teigland May2011

Our economy changesOur economy changes

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010DiGangi 2010

Page 83: Leveraging Networks Teigland May2011

Business models

So, what happens to them?

Johnson, Christensen, and Kagermann 2008, DiGangi 2010

They evolve...

Page 84: Leveraging Networks Teigland May2011

Closed model

Organizations internalize resources for value creation; restrict access to

knowledge, and protect intellectual property. DiGangi 2010DiGangi 2010

Page 85: Leveraging Networks Teigland May2011

DiGangi 2010DiGangi 2010

Page 86: Leveraging Networks Teigland May2011

Open model

Organizations leverage both internal and external resources for value

creation; strategically interact with environment DiGangi 2010DiGangi 2010

Page 87: Leveraging Networks Teigland May2011

Access to 24x7 global workforceAccess to 24x7 global workforce

Average wage Average wage approx. USD 1.40 / approx. USD 1.40 /

hourhourhttp://www.people.fas.harvard.edu/http://www.people.fas.harvard.edu/

~drand/~drand/

Page 88: Leveraging Networks Teigland May2011

““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem

and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated

communication.communication.”” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246

User-driven Innovation

DiGangi 2010DiGangi 2010

Page 89: Leveraging Networks Teigland May2011

DiGangi 2010DiGangi 2010

““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem

and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated

communication.communication.”” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246

User-driven Innovation

Page 90: Leveraging Networks Teigland May2011

Who are the Twitter influencers?Who are the Twitter influencers?

http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-followers/followers/

Page 91: Leveraging Networks Teigland May2011

Word cloud of StarbucksWord cloud of Starbucks’’ top 50,000 consumer profilestop 50,000 consumer profiles

http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-followers/followers/

Page 92: Leveraging Networks Teigland May2011

http://www.slideshare.net/themoleskin/introduction-to-social-meida?from=ss_embed

Page 93: Leveraging Networks Teigland May2011

Global grassroots fundraisingGlobal grassroots fundraising

9393

Page 94: Leveraging Networks Teigland May2011

Co-created model

Organizations encourage flow of knowledge between internal and external resources; focus on common good where

both parties benefit DiGangi 2010DiGangi 2010

Page 95: Leveraging Networks Teigland May2011

eZeZ 230+230+PartnerPartner

ss

37,000+37,000+CommunityCommunitymembersmembers

5,000+5,000+Customers in Customers in 130 countries130 countries

• Open source content management softwareOpen source content management software• Customers include Financial Times, Wall Customers include Financial Times, Wall Street Journal, UN, Vogue, Hitachi, 3M, MITStreet Journal, UN, Vogue, Hitachi, 3M, MIT

• 70 employees in 9 countries (US, Europe & 70 employees in 9 countries (US, Europe & Asia)Asia)

Skien, NorwaySkien, Norway

Page 96: Leveraging Networks Teigland May2011

eZ PhilosophyeZ Philosophy

Connecting people who share a passion for something they do

so that they can collaborate, share ideas,

learn, and create knowledge

Page 97: Leveraging Networks Teigland May2011

The backbone of eZ Systems is social The backbone of eZ Systems is social media - media - throughout the value chainthroughout the value chain

Page 98: Leveraging Networks Teigland May2011

eZ provides eZ provides platforms for interaction platforms for interaction throughout its ecosystemthroughout its ecosystem

eZ Software development team

Page 99: Leveraging Networks Teigland May2011

Current Research ProjectsCurrent Research Projects

04/08/204/08/233

Driven by both parties sharing their experiences and co-creating value of

network

Private-collective Community

Page 100: Leveraging Networks Teigland May2011

But how to balance needs of community with needs of firm in value co-creation

model?

DiGangi et al 2010DiGangi et al 2010

Page 101: Leveraging Networks Teigland May2011

Threadless:Threadless:What came first What came first

– – the community the community

or the or the company?company?

Page 102: Leveraging Networks Teigland May2011

OverviewOverview

BackgroundBackground The relationship between networks and The relationship between networks and

creativitycreativity Moving into the Third Industrial Revolution?Moving into the Third Industrial Revolution? Evolution of business modelsEvolution of business models What does this mean for managers?What does this mean for managers? ConclusionConclusion

Page 103: Leveraging Networks Teigland May2011

My company has blocked my computer from

accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my

phone.

Management Management cannot mandatecannot mandate social relationships social relationships

Page 104: Leveraging Networks Teigland May2011

IBMIBM’’s blogging policy & guidance, s blogging policy & guidance, created by the employeescreated by the employees

Policies based on IBM’sBusiness Conduct

Guidelines

Apply internally and externally

Available on ibm.com“blogging guidelines”

Adapted from Poole 2008

Page 105: Leveraging Networks Teigland May2011

Empower employees to make right Empower employees to make right decisionsdecisions

Trust your employees and enable social media use

Discuss social media usage and guidelines Use wikis to enable employees to create

company guidelinesProvide examples of good use and poor useCheck out others’ guidelines

http://socialmediagovernance.com/policies.php

When trusted, employees feel When trusted, employees feel empowered to do the right thing!empowered to do the right thing!

Page 106: Leveraging Networks Teigland May2011

Communicate competitive landscapeCommunicate competitive landscape

What is our strategy?1. Who are our customerscustomers?

2. What products do we sell?3. How do we create value?4. Who are our competitors?

https://www.securestate.com/PublishingImages/Competition-(BIG).gifhttps://www.securestate.com/PublishingImages/Competition-(BIG).gif

Page 107: Leveraging Networks Teigland May2011

http://www.slideshare.net/themoleskin/introduction-to-social-meida?from=ss_embed

Page 108: Leveraging Networks Teigland May2011

Transparency, transparency, transparencyTransparency, transparency, transparency

http://twitter.com/#!/zappos

Core Value #6: "Build Open and Honest

Relationships with Communication

Page 109: Leveraging Networks Teigland May2011

Some things do not changeSome things do not change

Innovation Exchange

Exchange Trust

Trust Relationships

Relationships Interaction

Page 110: Leveraging Networks Teigland May2011

"E-connection is processed in the brain like an in-person connection."

http://slideshare.net/missrogue

Page 111: Leveraging Networks Teigland May2011

OverviewOverview

BackgroundBackground The relationship between networks and The relationship between networks and

creativitycreativity Moving into the Third Industrial Revolution?Moving into the Third Industrial Revolution? Evolution of business modelsEvolution of business models What does this mean for managers?What does this mean for managers? ConclusionConclusion

Page 112: Leveraging Networks Teigland May2011

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

Page 113: Leveraging Networks Teigland May2011

From the mobility of goods From the mobility of goods to the mobility of financial capital to … to the mobility of financial capital to …

...the ...the ““mobilitymobility”” of labor? of labor?Teigland 2010

Page 114: Leveraging Networks Teigland May2011

What should you think about?What should you think about?

How to leverage the power of How to leverage the power of networks to create value inside and networks to create value inside and outside the boundaries of the firm?outside the boundaries of the firm?

How to let go of control and open up How to let go of control and open up your organization?your organization?

How can you have fun?How can you have fun?

Page 115: Leveraging Networks Teigland May2011

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@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 [email protected]@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: Nordenskiö

ld

Photo: Lindqvist

If you love knowledge, set it

free…