leveraging social networks for results 13338
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Leveraging Networks for Leveraging Networks for Tangible ResultsTangible Results
Dr. Robin TeiglandDr. Robin TeiglandStockholm School of EconomicsStockholm School of Economics
[email protected]@hhs.sewww.knowledgenetworking.org www.knowledgenetworking.org
[email protected] 2007
Everyone is talking about networksEveryone is talking about networks
National Innovation Networks
FormalNetworks
Entrepreneurial Networks
Ego Networks Regional
Networks
Infrastructure Networks
Social Networks
FAS.research
ElectronicNetworks
InformalNetworks
Networksof Practice Networked
organization
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Growth
Time
Information and knowledge
Human absorptive capacity
Cohen & Levinthal 1989
A world of rapidly growing knowledge A world of rapidly growing knowledge ….….
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A world of rapidly growing knowledge A world of rapidly growing knowledge ….….
>One week in 2007
A person’s lifetimein 18th century
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A world of rapidly growing knowledge A world of rapidly growing knowledge ….….
50%knowledge
relevant
50%knowledgeoutdated
First year of technical-based
education Third yearof education
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....that is increasingly connected....that is increasingly connected
new friend
sfamily
localcolleaguesold
friends oldcolleagues
colleagues
at other offices
Just a click away…
virtualcommunities
localnetworks
old classmat
es
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””No one knows everything, No one knows everything, everyone knows something, everyone knows something,
all knowledge resides in all knowledge resides in humanity.”humanity.”
networks.
Lévy 1997
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What is a network?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
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Individuals within a firmIndividuals within a firm
Mattsson 2004
< 1 yr1-5 yrs
5-10 yrs10-15 yrs> 15 yrs
Time at firm
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SEB
Ray-Adams & Sandberg 2000
Individuals between business firms Individuals between business firms Interlocking Interlocking
directorates of directorates of Sweden’s 110 Sweden’s 110
largest public firms, largest public firms, 20002000??
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Networks of firmsNetworks of firms
Dahlin 2007
Nocom Ericsson
Telia
Nokia
TietoEnator
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Groups of organizations (Sectors)Groups of organizations (Sectors)
Teigland et al. 2004
Social interaction in
Uppsala Biotech Cluster
Government
Inter-sectororganizations
Academia
Biotech
firms
Servicefirms
Financial Institution
s
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Uncovering networks in an Uncovering networks in an organizationorganization
Formal organization Informal organization
Teigland et al. 2005
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Central connectors within one Central connectors within one locationlocation
Bottleneck
Teigland 1998
Surprise!!
Stockholm
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Stockholm
London
Brussels
HelsinkiMadrid
Copenhagen
Boundary spanners between locationsBoundary spanners between locations
Transferred from
Stockholm
Teigland 1998
San Francisco
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San Francisco
Stockholm
London
Brussels
HelsinkiMadrid
Copenhagen
Peripheral players between Peripheral players between organizationsorganizations
Teigland 1998
Otherfirms
Electroniccommunities
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Increasing job turnoverIncreasing job turnover
Time
Number of jobs
in lifetime
Estimated time at one
organization in Silicon Valley:~18 months
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What about performance?What about performance?
Firm A
Highcreative
Low on-time
Highon-time Low
creative
Teigland 2003
Highcreative
Virtualcommunity
Firm B
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The strength of weak tiesThe strength of weak ties
Network A’sknowledge Network D’s
knowledge
Network B’sknowledge
Network C’sknowledge
Granovetter 1973
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Two divisions within Sundlink (Öresund Two divisions within Sundlink (Öresund Bridge)Bridge)
Section 1 Section 2
Improved efficiency over time
Stagnant performance over time
Schenkel & Teigland 2007
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Comparing across firmsComparing across firms
Company A R&D
Ericsson R&D
HP R&D
% Revenue from products dev’d in last three years
Poor High High
Speed, time to market Medium Poor High End customer satisfaction Poor Medium High
Teigland et al 2000
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Networking activities Networking activities recognized and rewardedrecognized and rewarded at at individual and unit levelsindividual and unit levels
Management support for Management support for informal and formalinformal and formal networking activitiesnetworking activities across internal and external across internal and external boundariesboundaries
ExtensiveExtensive socializationsocialization: personnel rotation, cross-office : personnel rotation, cross-office teamsteams
A A visionaryvisionary organization organization −Clearly defined mission:Clearly defined mission: ”To make technical contributions for the ”To make technical contributions for the
advancement and welfare of humanity”advancement and welfare of humanity”−Supporting core values,Supporting core values, e.g., teamwork e.g., teamwork−Company-wide goalCompany-wide goal of World’s Best Laboratory of World’s Best Laboratory
Hewlett-Packard (1990s)Hewlett-Packard (1990s)
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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 turnoverPainting by Idahlia Stanley
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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 networksnetworks
To build networks, you have to To build networks, you have to communicate morecommunicate more
Adapted from Cross et al. 2002
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More social get-togethers and More social get-togethers and coffee coffee breaksbreaks are not the solution are not the solution
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““Managing” networks in your Managing” networks in your organization organization
Before After
Anklam & Welch 2005
1. Uncover networks2. Analyze networks
3. Improve connectedness
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…..you “hire” his or her network.
When you hire someone,… When you hire someone,…
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Encourage an open innovation Encourage an open innovation attitudeattitude
Not all the smart people work for us. We need to work with smart people inside and outside the
company.
The smart people in our field work for us.
If you create the most and the best ideas in the industry, you will
win.
If you make the best use of internal and external ideas, you
will win.
Closed attitude Open attitude
Chesborough 2003
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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
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What can you do?What can you do? Where do you sit?Where do you sit? With whom do you eat lunch?With whom do you eat lunch? With whom do you socialize?With whom do you socialize? To which communities, networks do you belong?To which communities, networks do you belong?
Think strategically…Think strategically… How are decisions made in your organization?How are decisions made in your organization? What information flows would you like to be in? What information flows would you like to be in? What resources will you need in the future?What resources will you need in the future?
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Develop participation in a variety of Develop participation in a variety of networks networks
Strong ties
Weak ties
Outside organizatio
n
Inside organizatio
n
SOCNET
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Start your own networkStart your own network
Swedish International Business School Alumni
Network (SIBSAN)
Stanford GSB
Alumni Club
Nobel Laureates
Government Ministers
Stanford
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But…….But…….
“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
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Make yourself easy to find -Make yourself easy to find -Create a live CVCreate a live CV
Blog Blog −blogger, livejournal, blogger, livejournal,
typepad, wordpress, typepad, wordpress, etc.etc.
Social softwareSocial software−LinkedInLinkedIn−ShortcutShortcut−ecademyecademy
MediaMedia−Slideshare.netSlideshare.net−Flickr.comFlickr.com−YouTube.comYouTube.com
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Myths and reality checksMyths and reality checks I already know what is going on in my network I already know what is going on in my network
Those who think they know their network the Those who think they know their network the best are usually the ones who know the leastbest are usually the ones who know the least
We can’t do much to help informal networksWe can’t do much to help informal networks Informal networks can be “managed” through Informal networks can be “managed” through
changing the organizational contextchanging the organizational context
To build networks, you have to communicate To build networks, you have to communicate moremore
Networks can be strategically developedNetworks can be strategically developedAdapted from Cross et al. 2002
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Contribution
Reciprocity
Accumulation
Value
The positive spiral of social networksThe positive spiral of social networks
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References and acknowledgementsReferences and acknowledgements Books
− Barabási, Linked: The New Science of Networks. Perseus, 2002− Castells, The Rise of the Network Society. Blackwell, 2000− Cross & Parker, The Hidden Power of Social Networks. Harvard Business
School, 2004− Gladwell, The Tipping Point. Abacus, 2001− Scott, Social Network Analysis. Sage, 2000− Teigland, Knowledge Networking, SSE, 2003− Teten & Allen, The Virtual Handshake. Creative Commons, 2007
Homepages − Stephen Bird, people.bu.edu/sbird− Steve Borgatti, www.socialnetworkanalysis.com− Rob Cross, www.robcross.org− International Network for Social Network Analysis http://www.insna.org/− David Krackhardt, www.andrew.cmu.edu/user/krack/index.shtml− Valdis Krebs, www.orgnet.com− Fredrik Liljeros, www.sociology.su.se/home/Liljeros/index.html− James Moody, www.soc.duke.edu/~jmoody77/presentations/index.htm − Giancarlo Oriani, www.informalorg.eu (In Italian)− Barry Wellman, www.chass.utoronto.ca/~wellman/
