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Energizing Change Through Network Leadership
- 1. Energizing Change Through Network Leadership Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland 1-
- 4. Everyone is talking about networks National Innovation Networks Formal Networks Entrepreneurial Networks Ego Networks Regional Networks Infrastructure Networks Social Networks FAS.research Electronic Networks Informal Networks Networks of Practice Networked organization
- 5. A world of rapidly growing knowledge …. > A person’s lifetime in 18th century One week 2008 Fischbowl 2007
- 6. … that becomes quickly outdated …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education
- 8. Human capacity cannot keep up… Cohen & Levinthal 1989 Growth Time Information and knowledge Human absorptive capacity
- 9. 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
- 14. Swedish hip hop artists Liljeros 2006 ?? Timbuktu
- 15. Networks of firms Dahlin 2007 Nocom Ericsson Telia Nokia TietoEnator
- 16. Uncovering networks in an organization Formal organization Teigland et al. 2005 R&D organization Informal organization
- 17. Individuals within a firm Mattsson 2004 < 1 yr 1-5 yrs 5-10 yrs 10-15 yrs > 15 yrs Time at firm
- 18. Central connectors within one location Bottleneck Teigland 1998 Surprise!! Stockholm
- 19. Boundary spanners between locations Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco
- 22. Trust & reciprocity are essential for knowledge exchange in networks
- 23. … and most importantly, management cannot mandate social relationships John Eva Hans Miguel Paul Jan Lars Pia Anna Nils Bill Erik Mike Al Alex
- 24. Peripheral players between organizations San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Teigland 1998 Other firms Electronic communities
- 25. Dual loyalties Loyalty Loyalty Organization Professional network Teigland 2003
- 26. Increasing job turnover Time Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months CNET 2000
- 28. Individuals between business firms SEB Ray-Adams & Sandberg 2000 Interlocking directorates of Sweden’s 110 largest firms, 2000 ??
- 31. How does informal power arise? Krebs 2004 Node 16 gains informal power, weakening the boss Node 15’s power…
- 32. How does informal power arise? … and now N16’s informal power is greater than the boss N15’s formal power Krebs 2004
- 35. Two individuals with the same number of contacts… B A
- 36. … but with very different access to resources B A
- 38. 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
- 39. When you hire someone,… … ..you “hire” his or her network.
- 40. The strength of weak ties Network A’s knowledge Network D’s knowledge Network B’s knowledge Network C’s knowledge Granovetter 1973
- 41. Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Improved efficiency over time Stagnant performance over time Schenkel & Teigland 2008
- 42. More social get-togethers and coffee breaks are not the solution
- 43. “ Managing” networks in your organization Before After Anklam & Welch 2005 1. Uncover networks 2. Analyze networks 3. Improve connectedness
- 45. Comparing performance across firms Teigland et al 2000
- 47. Avoid creating insular networks http://www.enronexplorer.com/focus/19185#
- 48. Organizational response Linear, process-based organization Integrated collaboration networks Sub7 HQ Sub10 Sub9 Sub8 Sub13 Sub11 Sub3 Sub5 Sub4 Sub1 Sub2 Sub6 Sub14 Sub14
- 52. IBM’s Atlas shows the social network of a topic and how to get to someone Poole 2008
- 64. Do you know who the informal key opinion makers are in the organization? Teigland 2003 How can you engage these people?
- 66. Two individuals with the same number of contact but with very different access to resources B A
- 67. Structural holes Advantages of position in information networks Bill Burt 1992, Baker 2003 Dept 3 Dept 4 Dept 1 Dept 2 Barb
- 68. 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
- 71. Diversity can be a source of low performance, but also high performance ! DiStefano 2003
- 74. How can you turn conflict into creative conflict ? ? Teigland & Ruuska 2009
- 75. 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
- 78. Foster trust to build relationships Coleman 2006 Practices and discipline build trust, not who you are in the formal organization
- 85. PESTEL – Leveraging external pressures for innovation Johnson & Scholes 1997 Political Environmental Technical Legal Social Economic Organization
- 87. 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
- 88. Problem solutions - The Goldcorp Challenge
- 89. Promote 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
- 90. Develop participation in a variety of networks Strong ties Weak ties Outside organization Inside organization SOCNET
- 91. Start your own external network Swedish International Business School Alumni Network (SIBSAN) Stanford GSB Alumni Club Nobel Laureates Government Ministers Stanford
- 92. Go meet someone different or far away Robin and Steve Mahaley from Duke CE in Second Life
- 94. Operational networks of high performers Higher level networks provide “big picture” information, help with decision making, and access to resources External peer networks provide new ideas for process or product innovations as well as new insights Subordinates provide technical information and expertise Internal peer networks provide brainstorming, advice, and support External and internal clients ensure satisfied and profitable relationships Adapted from Cross, Martin, Weiss 2006, Teigland 2003
- 95. 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
- 96. Build relationships before you need them,…. … … while making sure you create value and foster trust.
- 97. People understand the game We do have certain individuals who …blast out FYI emails…… I think a lot of it is positioning within the organization….. I would say that 99% of those emails/articles are irrelevant…. are deleted. If I find something interesting …… I would send it to relevant people, but I certainly wouldn’t send it to everyone. Whelan, Teigland, & Donnellan 2008 R&D Scientist
- 98. The positive spiral of social networks tschaut’s photos Contribution Reciprocity Accumulation Value
- 100. Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch
- 102. Thanks and see you in world! Karinda Rhode aka Robin Teigland [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland
Notes de l'éditeur
- Great to see so many people interested in networks. I came from Stanford where networking is part of everyday of life Started my PhD research over ten years ago and one of first things I did was to look at the knowledge flows between the r&D units of three multinationals, HP, Ericsson, and Xerox. At beginning of knowledge management era and companies investing heavily in KM, these companies no exception. Found that top management invested heavily in different intranet applications, thinking understood how individuals worked. So for example, patent, then spoke with one of scientists and found that on one hand did not even access the intranet this application, nahh, just went next door to ask colleague who working with this. Much easier, faster, and better information. This got me started on my journey of looking into networks. Very much management not understanding the way work gets done and now with knowledge work, thinking can manage knowledge in same way managed physical resources of organization. But not the case… So here today to talk about networks
- Networks find everywhere… From Fas.research at www.fas.at Where do we find networks? physics, chemistry, biology : network laws of physics, animal food chains, metabolic networks of cells, neural networks of brain… technology, information technology : phone networks, information networks, railway networks… communication, sociology : communication networks, social networks, relationship networks… mathematics : network theory, graph theory… management, economics : networked enterprise, network strategy, supplier network… It’s a small (but complex) world… Better understanding of networks helps us in the modern world, as more complex phenomena demand faster reactivity (and preferably proactivity) every day Networks are everywhere – organizations are networks as well Every one of us is a part of a global network that connects all people
- Fischbowl 2007 ”Did you know? 3000 new books published daily One week’s issues of New York Times is more information than a person had access to during lifetime in 18th century. The amount of new information produced in number of bytes this year is more than was produced in the past 5000 years
- The amount of new technical information is doubling every 2 years. It’s predicted to double every 72 hours by 2010.
- Cohen, WM och Levinthal, D A, Absorptive Capacity: A new Perspective on Learning and Innovation, Working paper, Carnegie Mellon University and University of Pennsylvania, October 1989 Figur 3. Gapet mellan tillväxten av ny kunskap respektive tillväxten av människans förmåga att absorbera kunskapen. (Fritt efter Robert Junks anförande vid framtidsseminarium i Salzburg1989)
- What is interesting is that the world is shrinking bc becoming easier and easier to collaborate with others. Just 15 years ago, much more difficult to communicate with others outside of own organization. Had to go to conferences or located in your home town. Research has found that researchers in silicon valley and boston becoming increasingly connected. Now not only easier to communicate with those who do know outside organization, but easier to find others to collaborate with through mailing lists, electronic communities, and all social networking software.
- Back ground Example who ever you take that average is six step
- Pierre Lévy, Collective Intelligence: Mankind's Emerging World in Cyberspace , 1997 My example of how this presentation was made. Asked a question on Socnet and received many good answers with people’s presentations and links to interesting sources
- Refer to social networks here Began with Jacob Levy Moreno in the 1930s in attempt to quantify social relationships. Based on matrix algebra. Advanced statistics… Nodes can be people, departments, or organizations Networks consist of links that form a structure Links between nodes have different purposes , e.g., task or general advice, expertise, strategic information, navigating the organization (procedures, know-who, etc.) Links can be one or two directional Links can be both formal and informal Links can have different strengths
- Source: Fredrik Liljeros, 2006 A tie is defiend as participated on the same record. The data was collected by some undergraduates for course paper during their first semester.
- Peter Dahlin [peter.dahlin@mdh.se] This is an &quot;ego-network&quot; of Nocom meaning that it has Nocom as its hub. From there, it extends two steps out, i.e. includes those related to Nocom + those related to some company that is related to Nocom. The same goes for M&As (two steps out..) The relationships are of different kinds: customer-buyer relationships (black lines), partnerships (yellow) and ownerships (blue). This is a bit problematic since there can be several types of relations between two actors and only one will show when presented like this.. Note that this is based on the descriptions found in the newspaper articles on which I have based my data collection, so if a relationship is mentioned there it is included in my data (no further check-ups). There are naturally many actors and relationship missing in this picture. From the labels and sizes you can see that some of the central actors are Ericsson, Telia, Tietoenator, Merkantildata, Skandia, Nokia. The nationality is not easy to make out from the picture I'm afraid. I could naturally make the shape or color of the actors represent nationality, but I have decided not to emphasize the (inter)national aspects as my data collection is strongly focused on Swedish companies. The nationality of the actors in this picture is however varied but mostly Swedish.. Nocom AB (publ), www.nocom.se, är ett IT-företag, verksamt inom distribution och programvara. Huvudkontoret är beläget i Kista, Stockholm. Företaget grundades 1985 och noterades på Stockholmsbörsen 1999. Nocomaktien handlas på OMX Small Cap lista och det finns cirka 17 500 aktieägare. Verksamheten bedrivs i självständiga dotterbolag som arbetar under egna namn och affärsidéer. Totalt har koncernen cirka 270 anställda.
- Large majority of work done through informal networks, some even say approx 80%. Important to understand both these worlds and how relate to one another… Suggests that as much as 90% of information that people take action on comes from people in their own network – Cross dissertation
- How well members of this organization are aware of each other’s skills and capabilities? Mari Mattsson, Master's Thesis. Transactive Memory - &quot;know-who&quot; as resource in work organization. 2004
- Can use this to look at one organizational unit, this picture shows the programmers of the stockholm office of one IT multinational. See that well-connected. Good knowledge flows here as well. The Icon Stockholm programmer community was very well connected, indicating a high degree of knowledge flow. But I use this example, bc want to illustrate key players in this network. They are the central connectors. Central information source for everyone in network. In most cases, these individuals are not formally designated go-to people in unit. Provide help or pointers to others if can’t help. In many cases these individuals are high performers. Interestingly when we showed this picture to management, they knew of three of these but the fourth one was a total surprise. Interesting bc this person was different from mgt, woman programmer. Challenge with these individuals is that even though recognized by their colleagues, often their efforts go unrecognized and unrewarded, yet spend a good amount of time filling this task. Organizations use different kinds of rewards, nominated for best helper, one example is bank that changed its bonus scheme rewarded individuals for their ability to improve communication within unit, to be connectors based on evaluations by fellow employees. McK in semi-annual evaluation process. Mostly positive roles but these individuals can also play power games, using connecting role for private benefit, pitting networks against each other, hoarding information. Sometimes even people just overloaded . Found that this person was a bottleneck, while many people went to this person for help, could not help everyone, so people frustrated. Think about how design teams or redesign jobs, rotating people also. One organization conducted analysis and restaffed teams combining members of both networks. If overloaded, can implement mailing lists, discussion boards to try to reduce workload on central connector Bottlenecks continue to create problems when trying to implement change bc people continue to go to them.
- Here show the multinational’s networks of programmers. While large office of Stockholm was very well connected, c an see with this that many isolated islands of competence. Even though management spent considerable effort on IT systems to get people to communicate across units, very few doing so. However, we can see few individuals who did act as boundary spanners. These individuals serve as conduits of information between units. Rarely many boundary spanners in an organization. Difficult to become part of network across organization, time consuming, personality traits. Important because bring together different kinds of knowledge. Mgt often does not appreciate these inds. Have to spend considerable time maintaining network. Organizational stress because sitting often between two areas, different demands, etc. Or overload. To our surprise, after interviewing several key people in the community, we found that the boundary spanners, known as global advisors, were more information bottlenecks than connection facilitators. Are they making the right connections? Are they connected to connectors in own and other networks? But what happens if these individuals leave organization? Should reward individuals and acknowledge what doing. One company performed analysis and discovered who these boundary spanners are and helped them further develop their networks, also greater bonuses Can design work processes to bring individuals together. In this example, these inds talked with one another because the two in SF had been rotated from the Stockholm office.
- Growth opportunities come from ability to coordinate and collaborate across product, functional, and geographic lines 78% of approx 7300 executives McK & Company But organizations are ineffective at or experience difficulty in cross-boundary collaboration 79% of approx 7300 execs
- This because feels awkward to just call up someone don’t know or if called. Why should I help you?
- If we return to our Stockholm office of programmers, I found that some of these communicated to a high degree with others outside of their firm. Some serve as experts in org, but do not connect a lot with others . Remember story about programmer in SF, easier and faster to go outside and ask question than to bother person at next desk. But why else are these people on periphery? What doing? Could be new to organization, Interested in staying on ”bleeding edge”. Organization have old friends there. Electronic network – embarassed in asking question internally. No one knows your a monkey on the internet. Many managers want to bring these people into the organization. Some may want to, e.g., those who new. But these individuals might not want to be brought into the group. Some want to stay at the cutting edge of their field, demands that they spend a lot of time in outside networks. Others may not be able to due to personal reasons, family, etc. Some organizations try to bring in these individuals by asking to attend internal events, be on committees, etc. But this may frustrate them. Role conflict, increased stress
- Higher turnover at companies these days. Not life-time employee, many restructurings, acquisitions, etc. People always thinking about where go next. Inds bells and whistles Don’t know if working on your problem or someone else’s, including the competition’s Also often project managers leading technical specialists and do not understand what working with. Difficult to know whether really should take so much time or not. Individual working on computer, often don’t know what working on or for whom.
- 1 out of 4 workers today is working for a company they have been employed by for less than one year. More than 1 out of 2 are working for a company they have worked for less than five years. Today’s learner will have 10-14 jobs by age of 38 According to Chicago headhunting firm Roy Talman & Associates, the average technology professional stays on the job roughly 13 months.Meanwhile, employment experts say there's something of a more recent second wave of departures at 18 months, when many employees who are left behind feel compelled to leave or risk acquiring a reputation as &quot;dead wood&quot; or &quot;lifers&quot;--people who hang around because they are too lazy or not talented enough to receive jobs offers or cold calls from desperate headhunters. http://www.news.com/2100-1017-241914.html
- Ray-Adams & Sandberg, 2000, Connecting Firms: A Study of Interlocking Directorates in Sweden's 110 Largest Firms, An example from Swedish business - Sweden’s 110 largest firms. Most members of boards are recommended by people on the board who know them already. This leads to a highly connected network of boards within Sweden. Who is powerful here? Study also found that boards extremely active in strategy development and implementation. Boards look for new members using headhunters, public sources, chairman’s networks, other directors’ networks? Networks and primarily chairman’s network. Rarely used public source or headhunters.
- Below are two groups – A and B, each organized as a hierarchy. A node represents a person in each group. A grey line indicates the prescribed structure of the organization – the formal network or hierarchy1. All information and resources flow through each group’s leader – nodes 010 and 015. Measuring each node’s Power, our InFlow™ software reveals the obvious. Each leader is in complete control of their group – they each have a perfect Power score of 1.00. We see two equivalent groups – same size, same structure. The leaders decide to form a tie between themselves for possible collaboration, or exploitation. By creating this informal tie [purple line], each leader can now monitor the other group. Each leader remains dominant over their respective group and neither leader loses power relative to the other – they have equal power scores. Yet, both leaders have lost some power by joining their groups! Person 014 having learned to trust 016 decides to introduce the new friend to the leader of Group A. Node 015 is currently unaware of this new connection. Person 016 now has more links to the other group than to their home group.
- Soon word gets out in Group B, that 016 is well connected! Networks often, but not always, follow the law of increasing returns – the rich get richer. 2004, Valdis Krebs People who are well connected new ties from others hoping to take advantage of the many connections. 016’s colleagues [017, 018, 019] soon form a tie with the emergent boundary spanner[016]. Person 016 lets the tie to node 014 atrophy or weaken – it is no longer critical. One can only maintain a small number of active strong ties. Node 015 finally senses the loss of power. In frustration, 015 cuts the tie to the other formal leader 010, resulting in even more power to node 016! While clinging to formal authority, leader 015 starts making plans to remove 016 from the group. Will this succeed?
- Both nodes 010 and 016 have the same pattern of, and the same number of, connections. Yet, node 010 has more power! Why? Node 010 is taking advantage of structural holes in the network. A structural hole is anywhere in the network where two nodes could be connected, but are not. There are structural holes between any combination of nodes 011, 012, 013, and 014. This leaves node 010 in a position of total control over the local cluster. A hub[010] controls all spokes[011,012,013,014] attached to it – like the formal hierarchy we saw in the first diagram. A combination where a node has easy access to others, while controlling the access of other nodes in the network, reveals high informal power.
- http://www.ux-sa.com/2007/09/structural-holes-and-online-social.html But avoid becoming a bottleneck!
- Back to performance. Interesting results here as well. Similar to intra-organizational networks. See creative performance but interesting to see other Why do you think so? Someone who interested in developing first solution, being seen as guru. Helping others all time with problems. Prestige. Also, difficulty of knowledge, applying external knowledge to own organization’s problems. Have to maintain connections. Interesting example of company that hired one of these gurus. Guy who fired bc all time working on someone else’s problems.
- Interesting now that companies changing from hiring fresh graduates to mid-career professionals Everyone knows that when you hire one talented programmer, you get 20 for free! Anders L.
- Well-known theory within social networks, the theory of weak ties by famous sociologist at Stanford, Mark Granovetter. Studied how inds found jobs. Saw that those with high number of weak ties found jobs more easily than those with few strong ties. Info, kn is redundant within tight network. Those who know well, all know about same jobs, but it is the weak ties that help out. Your brief contacts that can help out. Fresh non-redundant info. Same goes for when working in firm. Able to take kn from across organization and combine into new creative idea.
- Here I would like to show the results of a study in the construction industry with colleague, Andy Schenkel. This illustrates how two departments can have completely different informal networks and connectedness. The one to left did not meet the structural properties of a community, while the one to the right did . As you can visually see D epartment 1 is disconnected no clear core or periphery not particularly dense In contrast, D epartment 2 is well connected has a core with numbers 77 and 82 forming it and a periphery it also appears to be dense
- Interesting to think that just a few years ago, everyone was saying get people together informally, create venues for them to meet. But research in US has found that need to do more than random interventions. This not enough to align with organizational goals. Yes, this gets inds meeting, but may result in coups or negative spirals if mgt does not understand them.
- Source: https://webapp.comm.virginia.edu/NetworkRoundtable/Portals/0/NR04-05/Networks_and_Organizational_Change.pdf There is a structured way of going about ”managing” informal networks. Today share with you some of the findings from my research and from the gurus in the US. Identify informal network where effective collaboration and kn sharing has sig impact on organization’s operations and strategy. So many networks out there but you don’t need to understand all of them. Good for up to 50 individuals, then should look at sub-networks Simple, 10-15 minutes to do, make list of people and ask all to characterize relationship with one another Make sure think through sensitivity of issues, do pretest Uncover networks Identify which networks are important to understand E.g., product development, merger integration Collect network data E.g., observe, interview people, conduct questionnaire Ask appropriate questions, e.g., advice, trust, innovation Analyze the causes of fragmented networks Leadership style, office layout, virtual work, politics, knowledge sharing attitudes, workflow processes, job descriptions Improve connectedness and u nplug bottlenecks Reevaluate formal structure, e.g., team desi gn, roles Rethink work processes Reassign tasks, rotate individuals, s hift responsibilities Are central connectors hoarding info? Is unit too isolated? Are boundary spanners talking with right people? Is unit losing technical expertise? Think about how design teams or redesign jobs, rotating people also. Restaff teams to override hoarding connectors. One organization conducted analysis and restaffed teams combining members of both networks. If overloaded, can implement mailing lists, discussion boards to try to reduce workload on central connector Shift responsibilities, Put in mailing list, discussion boards, socnet example
- ! First, new criteria were used to decide which groups would reside in the space. Residents would be those working on high-end projects, with strong executive awareness and support. Residents would also possess knowledge that was deemed important to share among other internal groups; and they would be well connected in the network and so likely to yield the greatest value from sharing expertise across projects. ! Second, each person was given a permanent station in the space to ensure that it became both a showcase to clients and a place where real work was done. Previously, only some members of a group had resided in the space, which resulted in fragmentation and poor team collaboration on several critical projects. ! Third, in addition to staffing the work space with intact teams to promote execution, the organization was focused on using the work space to better engage the approximately 600 customers who visited each year. To accomplish this, the company devised “knowledge nodes” to attract viewers and display knowledge. Each group’s knowledge node contained product displays, kiosks, videos, and Web site displays, and was updated several times a year. Sales representatives made these knowledge nodes a regular stop on their customer tours. ! A final, significant change had to do with the physical layout of the space. Early users found it difficult to collaborate because they couldn’t necessarily see one another. For example, when a person walked into the building, they encountered a large fountain that blocked their view of the layout. Large walls inhibited easy access from one area to another. Also, individuals had walls around their work spaces that prevented them from seeing others around them. The organization spent three months redesigning the space to address these challenges, including creating an entrance that allowed visibility into the entire floor area, eliminating wall barriers between groups, and placing shorter walls at each individual work space, thereby allowing easy line-of-sight with other colleagues sitting nearby.
- While research that shows this relationship, thought it would be best to show what I have found in my research. Here have rd operations of three multinationals, Xerox, Ericsson, and HP. Found that HP had highest of three in terms of perf indicators that looked at. Can even talk about regional level – silicon valley vs rte 128 in Boston.
- Did some research in which HP one of companies. Found that this company really understood the importance of informal networks both in terms of ”managing” the informal structure but also in terms of the visionary organization. Interestingly, HP doing network maps based on email communication. Would like to do something similar here.
- Kenneth Lay delegated responsibility to those in his old boys network – failed to listen to someone outside the club – Sherron Watkins.
- Global mindset - the key global issue [for GM] is how to transform the organization internally to become globally competitive. Even for employees who may never go overseas, it is necessary to constantly sensitize everyone to the fact that they are in a global business. The Transnational organization attempts to resolve the inherent limitations of the three organisation archetypes Three key characteristics: Builds and legitimizes multiple internal perspectives Dispersed and interdependent physical assets and capabilities (knowledge) Robust and flexible integrative process Subsidiary as semiautonomous identity within a differentiated system Characteristics Configuration of assets and capabilities Multi-domestic Decentralized and nationally self-sufficient Global Dispersed, Interdependent and specialized Role of overseas operation Sensing and exploiting local opportunities Differentiated contributions by national units to integrated worldwide operations Development and diffusion of knowledge Knowledge developed locally and retained within each unit, some transfers Knowledge developed jointly and shared worldwide Power people – who are those with power in heterarchy? These are the ones who in nw, not necessarily those in hierarchical positions
- We have summarized the benefits in these four points. If only HP knew what HP knows. A surprising amount of corporate knowledge is the property of individuals , not the firm. All too often when someone leaves an organization, their knowledge leaves with them . People are not always inclined to create or disseminate knowledge E mbedded knowledge is hard to extract – contained in systems, practices, structures. – employees frequently spend large amount of time reinventing the wheel. Attract and retain key individuals - this is very important benefit that often forgotten. Can’t have leading organization without leading individuals. Can’t expect to attract them if not working with leading edge practices and technologies. Nor expect to retain them if you do not provide opportunities for innovation, creativity, to use their intellectual prowess.
- Rob Cross, Nitin Nohria and Andrew Parker, Six Myths About Informal Networks -- and How to Overcome Them, Sloan Management Review, 2002
- FAS.Research (www.fas.at): The availability of resources (money, knowledge, relationships) is determined by where one stands, which position one assumes. For the costs of -access to these resources (= the costs of a “link”) as well as the yields to be expected are also defined by the position in the network and by the general structure of the network. This is the central economic and business-related message of network analysis. The second message in this context is that the methods of network analysis can be used to measure and depict both dimensions (position and structure) in quantitative terms. Social capital also reveals both of these dimensions which must also be taken into account in a SWOT analysis based on the methods of social network analysis. The possibilities of added value, of innovation, chances for successful search processes for better solutions as well as the costs of adaptation to changes are distributed differently for each actor within one and the same network. This is not just because each actor assumes a different position and thus the costs of access to the limited resources vary, but also because with each position the immediate environment changes. Thus the character of the network (the “network profile”) is a different one from the local perspective of the actor. Each actor in the network finds a different space of possibilities and has better or worse access to the existing resources by virtue of his relationships to the other actors. The network thus creates the social infrastructure of the opportunities offered to an actor. Networks – relationships iwth others, Political, economical social relationship All have relationships with others, we are all embedded in nws, We retrieve information and knowledge to arrange our lives Decide on success of our activities SNA Networks and underlying relationships – network analysis – Talk about unique relationships that make each individual. Here is a network - can be medicament, interlocking directors of companies. Network is system of relationships Look at people and re Have to look beyond your friends, who are their friends and relatinoshsip
- “ LEADERSHIP IN THE DIGITAL AGE” Ernest J. Wilson III To Appear in The Encyclopedia of Leadership George R. Goethals, Georgia Sorenson, James MacGregor Burns A list of necessary skills would include the capacity to build coalitions and forge communities of interest; to multi-task; to remain focused on one’s own priorities even while seeking common ground with leaders in other sectors. Substantive knowledge is especially important in the knowledge society, including knowledge of how the new technologies function. Leaders must also know what they do not know, and know how to get that missing knowledge by mobilizing their own social networks. These new combinations of skills, attitudes and knowledge requires new patterns of experience, especially personal movement across different sectors in jobs where the emergent leader is forced to engage with people from different professional and demographic backgrounds. Through all these cross-border shifts, successful leaders are able to develop and sustain a moral compass to guide their behavior. Cross, Parise, Weiss, 2006 But these lead often to relational overload that grinds decision making and execution to a halt Inability to identify those who well-connected in organization and those who have the right mind-set and beliefs How to identify the critical network-based drivers of performance? Need to understand both formal organization and organizational networks
- Stability forces Institutionalism – way things are done around here, of current practices Transaction costs –employee stability Sustained advantage – organizational relationships Organizational social capital – trust among co-workers Predictability and uncertainty reduction – the need for these may inhibit change. A necessary prerequisite for a successful change However, organizations and people are complacent Better what you know then what you don’t know Change creates uncertainty Change is perceived as a “zero sum” Often reactive and not proactive “If it ain’t broken don’t fix it” Too much fat (resources, profits)
- Overcoming Complacency A compelling need has to be developed and shared Visible Crises catch peoples’ attention and drive up the urgency levels e.g. GM Create a rivalry – What are your arch competitors doing? Slim down resources Create dissatisfaction with the status quo Benchmark operations Diagnose internal barriers to performance
- 1 = strongly de-energizing 2 = de-energizing 3 = neutral 4 = energizing 5 = strongly energizing
- Can use this to look at one organizational unit, this picture shows the programmers of the stockholm office of one IT multinational. See that well-connected. Good knowledge flows here as well. The Icon Stockholm programmer community was very well connected, indicating a high degree of knowledge flow. But I use this example, bc want to illustrate key players in this network. They are the central connectors. Central information source for everyone in network. In most cases, these individuals are not formally designated go-to people in unit. Provide help or pointers to others if can’t help. In many cases these individuals are high performers. Interestingly when we showed this picture to management, they knew of three of these but the fourth one was a total surprise. Interesting bc this person was different from mgt, woman programmer. Challenge with these individuals is that even though recognized by their colleagues, often their efforts go unrecognized and unrewarded, yet spend a good amount of time filling this task. Organizations use different kinds of rewards, nominated for best helper, one example is bank that changed its bonus scheme rewarded individuals for their ability to improve communication within unit, to be connectors based on evaluations by fellow employees. McK in semi-annual evaluation process. Mostly positive roles but these individuals can also play power games, using connecting role for private benefit, pitting networks against each other, hoarding information. Sometimes even people just overloaded . Found that this person was a bottleneck, while many people went to this person for help, could not help everyone, so people frustrated. Think about how design teams or redesign jobs, rotating people also. One organization conducted analysis and restaffed teams combining members of both networks. If overloaded, can implement mailing lists, discussion boards to try to reduce workload on central connector
- Here are Sue’s and Bill’s egocentric networks, but this time in their larger context. Sue is the bridge between different groups or “clumps” Bill’s network is concentrated within a larger clump Both have advantages, but Sue’s network is the one associated with higher pay, promotions, etc. Multiple, independent information sources Discover problems and find solutions Create more value
- Most diverse work groups do not perform as well as homogeneous groups Counter-intuitive to assumption that diversity provides greater variety, therefore, greater potential for synergy Why gap between potential and actual? How can potential be enhanced?
- How to solve problems? Researcher – solve by him/herself Engineer – solve with help of others 80% of solution or 100% of solution
- Motivation: Government: Public good, Academia: Science, Business: Profit Audience/stakeholders: Government: Citizens, Academia: Global community, Business: Shareholders
- Positive – support, encouragement, appreciation Negative – disapproval, sarcasm, cynicism
- Communicating the vision in order for people to understand the present situation and future state Communicate the means in which to obtain the vision Keep it Simple; Lose the Jargon Create Verbal Pictures Multiple Forums; Repetition Lead by Example; Your Behavior Speaks Explain the Appearance of Inconsistencies 2- Way: Listen as Well as Share Perception is that people know the vision, but don’t really, vision communication is only one small % of total communication Relate to the vision Expect personal gain (make their world a better place) Can give input Respect the leader Believe the time is right
- Trust is needed to work quickly, smartly, and with flexibility—especially during constant change Trust is even more important when working across distances because staff do not regularly see each other Trust on virtual teams resides more at task level than on interpersonal level Give full attention to building trust Watch out for “erosion” of trust by individual team members with a different mindset or agenda
- Promote information sharing Promote the mindset that all shared information will be stored in the team’s shared workspace, even work in progress
- Connaughton & Daly What makes employees who are geographically separated from their managers satisfied with their jobs and their relationship with their managers? In distanced settings, frequency of communication with managers, information equity, and manager’s attentiveness are more important than they are in proximate settings People co-located with managers reported a significantly greater tendency to have early meetings with managers than those at a distance. The manager making early visits to remote sites was positively and significantly related to job satisfaction and manager satisfaction. Individuals working from afar were more satisfied with their jobs than those working proximate to their managers. Accessibility was a significant predictor of satisfaction with manager in the distanced group; actual physical distance was not a significant predictor.
- Semi-structured long interviews 21 leaders with global responsibilities 14 from a high-tech company located in SW 19 males; 2 females Interviews on site and over distance 13 testable propositions emerged
- Articulate norms for meeting prep and execution “ What we would do to make communication more effective is we would come up with half a dozen issues before hand. Each of us would so some pre-work to make the telephone call more productive rather than just leaving it up for grabs.” Ensure that meetings are regularly and publicly scheduled
- 1. What environmental factors are affecting the organization? 2. Which of these are the most important at the present time? 3. Which of these are the most important in the next few years? PESTEL-analysis is a tool – not a key. PESTEL stands for P olitical, E conomic, S ocial, T echnical, E nvironment and L egislative. It is a strategic planning technique that provides a useful framework for analysing the environmental pressures on a team or an organisation A PESTEL Analysis can be particularly useful for groups who have become too inward-looking. They may be in danger of forgetting the power and effect of external pressures for change because they are focused on internal pressures. Help people make their assumptions explicit Important to look forward and at future impact of envtal factors which may be different from past impact. Usually will be combined effect of some of these separate factors that will be important rather than any single factor Plays role in focusing organizations on choices open to them and the constraints and risks involved in these choices. Political – threat of terrorism, Economic – unemployment levels Social – demographic changes Tech – development of new/subst products Environmental – antipollution Legal - antitrust
- PESTEL-analysis is a tool – not a key.
- GoldCorp ... a mining company, 50 years old. Geologists couldn't tell him where the gold was. The CEO was ready to shut down the company. Heard about Linux ... and embraced the principles. Took his geological data, published it on the Internet, and held a contest on the Internet called the &quot;GoldCorp Challenge&quot;. Offered $500K for those who could find the gold. Found $3.4 billion of gold. Value jumped from $90 million to $10 billion. Wikipedia…The Canadian gold mining group Goldcorp made 400 megabytes of geological survey data on its Red Lake, Ontario property available to the public over the internet. They offered a $575,000 prize to anyone who could analyse the data and suggest places where gold could be found. The company claims that the contest produced 110 targets, over 80% of which proved productive; yielding 8 million ounces of gold, worth more than $3 billion.
- Alliances - In addition, they found that successful collaboration between university and industry was often the result of emergent personal relationships. Kreiner & Schulz RD - 40% of potential solutions and opportunities derived from personal external contacts powell et al - interorganizational networks in biotech industry provide knowledge critical to innovation mgt unaware of what going on - 10 vs 57 ongoing efforts at partnering in multinational telecom company.
- Minister of Labour, Mr. Sven Otto Littorin
- Interesting now that companies changing from hiring fresh graduates to mid-career professionals Everyone knows that when you hire one talented programmer, you get 20 for free! Anders L.
- Photo courtesy of tschaut’s photos, http://www.flickr.com/photos/tschaut/ Stocks of socialt kapital tend to be self-reinforcing and cumulative based on the principle of contribution and reciprocity Successful collaboration in one endeavor builds stronger relationship and trust socialt kapital facilitates future collaboration on other, unrelated tasks As with conventional kapital, those who have socialt kapital tend to accumulate more Goes against knowledge is power
- “ cause to go with one,especially by guiding or showing the way or by going in front and taking a person’s hand or an animal’s halter ”, The Concise Oxford Dictionary Challenges about learning Learning about self Learning about others Learning about the ‘business’ Learning about the world Learning about connections and interdependence The timetable of learning Continuous and continual Learn, practice, perform, teach and review FORMAL LEARNING Self - assessment, feedback, performance review Others – team dynamics, motivation, personality profiles etc. ‘ Business’ – strategy, finance, performance, markets etc World – context, policy and politics. Connections – patterns, macro economics etc. Qualification based programmes. Distance learning and e-learning Case studies ‘ Best practice’ reviews Audits and reports Seminars, conferences, workshops and short course programmes INFORMAL LEARNING Self – reflection, feedback. Others – observation, reflection, feedback. ‘ Business’ – enquiry, feedback, observation and review World – reading, observation and review Connections – patterns, coincidences, consequences. Coaching and mentoring Teaching Reflective practice Action learning Discussion,conversation and review Appreciative enquiry, visits and peer review Reading, seeing and hearing – newspapers, books (fiction and fact) art and art forms
- Your competition can take any product or service, reverse engineer it and duplicate it. They can even duplicate the way you do things and the systems you have in place. However, they cannot duplicate the rate at which you uniquely learn and add marketplace-useful knowledge to your personal and corporate database.