Presentation of networks and social media in multinational corporations

1. Leading in a Networked Multinational February 2009 Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland 1-

3. A world of rapidly growing knowledge …. > A person’s lifetime in 18th century One week 2008 Fischbowl 2007

4. … that becomes quickly outdated …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

6. Knowledge is growing exponentially…. Cohen & Levinthal 1989 Growth Time Information and knowledge Human absorptive capacity

7. Yet, the world is “shrinking” family local colleagues friends old colleagues colleagues at other offices Just a click away… virtual communities local networks old classmates avatars business contacts social media contacts referrals

8. The speed of information: The power of social media http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008

10. A new workforce is appearing… Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Professional loyalty Work = Personal

11. History tends to repeat itself…. Steam engine Internal combustion engine Microelectronics Late 18 th C Late 19 th C Late 20 th C Schön 2008

15. Individuals within a firm Mattsson 2004 < 1 yr 1-5 yrs 5-10 yrs 10-15 yrs > 15 yrs Time at firm

16. Central connectors within one location Bottleneck  Teigland 1998 Surprise!! Stockholm

17. Boundary spanners between locations Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

20. Trust & reciprocity are essential for knowledge exchange in networks

21. … and most importantly, management cannot mandate social relationships John Eva Hans Miguel Paul Jan Lars Pia Anna Nils Bill Erik Mike Al Alex

22. Peripheral players between organizations San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Teigland 1998 Other firms Electronic communities

23. Dual loyalties Loyalty Loyalty Organization Professional network Teigland 2003

24. Individuals between business firms SEB Ray-Adams & Sandberg 2000 Interlocking directorates of Sweden’s 110 largest firms, 2000 ??

28. Uncovering networks in an organization Formal organization Teigland et al. 2005 Informal organization

29. How does informal power arise? Krebs 2004 Node 16 gains informal power, weakening the boss Node 15’s power…

30. How does informal power arise? … and now N16’s informal power is greater than the boss N15’s formal power Krebs 2004

33. Two individuals with the same number of contacts… B A

34. … but with very different access to resources B A

36. Performance differs based on one’s network Firm A Low on-time High Creative High on-time Low creative Teigland 2003 High creative Virtual community Firm B

37. The strength of weak ties Network A’s knowledge Network D’s knowledge Network B’s knowledge Network C’s knowledge Granovetter 1973

38. When you hire someone,… … ..you “hire” his or her network.

39. Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Improved efficiency over time Stagnant performance over time Schenkel & Teigland 2008

40. More social get-togethers and coffee breaks are not the solution

41. “ Managing” networks in your organization Before After Anklam & Welch 2005 1. Uncover networks 2. Analyze networks 3. Improve connectedness

42. Avoid creating insular networks http://www.enronexplorer.com/focus/19185#

43. Comparing across firms Teigland et al 2000

45. IBM – “A marketplace for projects” for its 390,000 employees worldwide http://www.slideshare.net/SOMESSO/speaker-1-bettina-kahlau-presentation

47. IBM’s Atlas shows the social network of a topic and how to get to someone Poole 2008

48. IBM - Convergence in virtual spaces mentoring Green Data Center SOA Training Play is how we principally learn and principally create &quot; Ray Kurzweil many to choose from IBM Lotus Tools BMW Training Media Brain Thinking Hamilton, 2009

49. Are there any benefits from social media, or is it all hype? Poole 2008: IBM Global Technical Services Knowledge Community of Practice Business Impact Survey 2007, completed by approximately 2,300 respondents

51. External networks are growing in importance! Other people around the world Other employes around the world Other employees in your country Co-Workers Friends Large portion of new ideas and formal collaboration relationships come from external contacts You Alex Eyal Your manager Rami’s manager Hila Yaron Yuval Eduardo Ed Muriel Peter Frequent e-mails Infrequent e-mails Web 2.0 Collaboration

52. Increasing number of external social media sites Rey 2008

53. Using social media http://adultaddstrengths.com/2008/11/05/obama-vs-mccain-social-media/

55. Increasing job turnover Time Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months CNET 2000

56. Why use these new social media tools? Melcrum 10/07

57. The wisdom of crowds (Surowiecki 2004) Closed Expensive Complex Accurate Open Inexpensive Simple Close enough Hinton 2007

58. Innovations - www.innocentive.com

59. Problem solutions - The Goldcorp Challenge

60. Creating tomorrow’s solutions Building the house of the future in an HSB competition in Second Life

62. Promoting an open innovation attitude 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

67. Two individuals with the same number of contacts but with very different access to resources B A

68. Structural holes Advantages of position in information networks Bill Burt 1992, Baker 2003 Dept 3 Dept 4 Dept 1 Dept 2 Barb

69. 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

70. Do you know who has informal power across the organization? Teigland 2003 How can you get to know these people?

71. Are you connected? Your subsidiary Subsidiary D Subsidiary A Subsidiary B

72. Develop participation in a variety of networks Strong ties Weak ties Outside organization Inside organization SOCNET

73. Start your own network Swedish International Business School Alumni Network (SIBSAN) Stanford GSB Alumni Club Nobel Laureates Government Ministers Stanford

74. Develop three forms of networking Ibarra & Hunter, HBR Jan 2007 Operational Personal Strategic 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

75. Build relationships before you need them,…. … … while making sure you create value and foster trust.

79. The positive spiral of social networks tschaut’s photos Contribution Reciprocity Accumulation Value

81. While we know what to do…. Network picture from http://n-e-r-v-o-u-s.com/blog/?m=200712 Hierarchy Linear, static, process-based organization Heterarchy Dynamic, integrated collaboration networks … .getting there is hard to do!!

83. How to bridge islands of competence? Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

84. Increasing focus on Global Virtual Teams Adapted from McDermott 2001 -Obligation -Job requirement -Value -Commitment - Friendship Glue -Planned -Actively discovered -Serendipitously discovered Value Creation -Organize tasks -Meetings -Informal communications -One-on-one Activity -Assigned -Defined boundary -Mostly volunteers -Permeable boundary -Friends & acquaintances -No boundary Members -Accomplish goal -Solve problems -Share info & ideas -Expand knowledge -Share information -Friendship Purpose Virtual Team Community of Practice Personal Network

89. Improving GVT performance Lipnak & Stamps 2007, Coleman 2006 90% people + 10% technology

103. Clearly define virtual team roles Coleman 2006

105. Foster trust to build relationships Coleman 2006 Practices and discipline build trust, not who you are in virtual environments

106. Team configuration matters when it comes to trust! Fully dispersed Three subgroups Two subgroups Least conflict Most trust Most conflict Least trust Polzer et al 2002

107. Cultural differences affect GVT behaviors “ Work-to-live” culture Risk avoidance + — + Teigland 2003 Knowledge acquisition Knowledge sharing

110. Understand individual member’s motivations Low visibility/importance High visibility/importance Develop new creative solutions R e use old solutions Adapted from Briner, Hastings & Geddes, 1996 Team member 1 Team member 2

112. Develop collective competence Collective competence Team’s ability to work together to solve problems and achieve common goals Shared norms Shared routines Shared language Shared understanding Ruuska & Teigland 2008

113. Collective competence It’s really important to get a collective perspective in order for everyone to understand the project’s core and to develop the project’s goals and outcomes…a critical point is when everyone is on the same page and is able to look at the project with the same ”set of eyeglasses”. Ruuska & Teigland 2008

117. How can you turn conflict into creative conflict ? ? Teigland & Ruuska 2009

118. High team performance comes from ongoing processes of positive and negative feedback Other Speaking about other Self Speaking about oneself or own group Advocacy Arguing for own position High Perf. Pos/Neg: 5.6 Medium Perf. Pos/Neg: 1.9 Low Perf. Pos/Neg: 0.4 Losada & Heaphy 2004 Inquiry Exploring other’s viewpoint Positive – Support, encouragement, appreciation Negative – Disapproval, sarcasm, cynicism

119. … and make sure you are connected Your subsidiary Subsidiary D Subsidiary A Subsidiary B

126. Why use these new tools? Melcrum 10/07

129. Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch

131. Thanks and see you in world! Karinda Rhode aka Robin Teigland [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland