Leveraging Social Networks for Results

Slide 1: Leveraging Networks for Tangible Results Dr. Robin Teigland Stockholm School of Economics robin.teigland@hhs.se 1-1 www.knowledgenetworking.org

Slide 2: Everyone is talking about networks Formal Ego Networks Networks Regional Social Networks National Networks Innovation Networks Entrepreneurial Informal Networks Networks Infrastructure Networks Electronic Networks Networks of Practice Networked organization FAS.research @teigland.com 2007 2

Slide 3: A world of rapidly growing knowledge …. Information and knowledge Growth Human absorptive capacity Time Cohen & Levinthal 1989 @teigland.com 2007 3

Slide 4: A world of rapidly growing knowledge …. > One week A person’s lifetime in 2007 in 18th century @teigland.com 2007 4

Slide 5: A world of rapidly growing knowledge …. 50% knowledge outdated 50% knowledge relevant First year of technical-based Third year education of education @teigland.com 2007 5

Slide 6: ....that is increasingly connected Just a click away… local networks colleagues new at other friends offices family local old colleagues friends old colleagues old classmates virtual communities @teigland.com 2007 6

Slide 7: ”No one knows everything, everyone knows something, networks. all knowledge resides in humanity.” Lévy 1997 @teigland.com 2007 7

Slide 8: What is a network? Actor •Actors/Nodes Tie −Individuals −Teams, organizations, etc. •Ties/Links −Knowledge, trust, team, sit by, dislike, etc. −Alliance, customer, investment, etc. A set of actors connected by ties @teigland.com 2007 8

Slide 9: Swedish hip hop artists Timbuktu ?? @teigland.com 2007 Liljeros 2006 9

Slide 10: Individuals within a firm Time at firm < 1 yr 1-5 yrs 5-10 yrs 10-15 yrs > 15 yrs @teigland.com 2007 Mattsson 2004 10

Slide 11: Individuals between business firms Interlocking directorates of Sweden’s 110 largest public firms, 2000 ?? SEB @teigland.com 2007 Ray-Adams & Sandberg 2000 11

Slide 12: Networks of firms Nokia Ericsson Nocom TietoEnator Telia Dahlin 2007 @teigland.com 2007 12

Slide 13: Groups of organizations (Sectors) Social interaction Government in Uppsala Academia Biotech Cluster Biotech firms Inter-sector organizations Servicef Financial irms Institutions @teigland.com 2007 Teigland et al. 2004 13

Slide 14: Uncovering networks in an organization Formal organization Informal organization @teigland.com 2007 Teigland et al. 2005 14

Slide 15: Central connectors within one location S to c kho lm Surprise!! Bottleneck  @teigland.com 2007 Teigland 1998 15

Slide 16: Boundary spanners between locations Brus s e ls Trans fe rre d fro m S to c kho lm S an Franc is c o S to c kho lm Lo ndo n Madrid Co pe nhag e n He ls inki @teigland.com 2007 Teigland 1998 16

Slide 17: Trust & reciprocity are essential for knowledge exchange in networks @teigland.com 2007 17

Slide 18: Peripheral players between organizations Electronic communities S to c kho lm Brus s e ls S an Franc is c o Other firms Lo ndo n Madrid Co pe nhag e n He ls inki @teigland.com 2007 Teigland 1998 18

Slide 19: Dual loyalties Lo lty ya a oy lty L Professional Organization network @teigland.com 2007 19

Slide 20: Increasing job turnover Number of jobs in Estimated time at lifetime one organization in Silicon Valley: ~18 months Time @teigland.com 2007 20

Slide 21: What about performance? Firm B Hig h on-time Low Firm A c re a tive Virtual Hig h community c re a tive Low Hig h on-time c re a tive @teigland.com 2007 Teigland 2003 21

Slide 22: The strength of weak ties Network C’s Network B’s knowledge knowledge Ne twork A’s Ne twork D’s knowle dg e kn owle dg e @teigland.com 2007 Granovetter 1973 22

Slide 23: Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Stagnant performance Improved efficiency over time over time @teigland.com 2007 Schenkel & Teigland 2007 23

Slide 24: Comparing across firms Company A Ericsson HP R&D R&D R&D % Revenue from products Poor High High dev’d in last three years Speed, time to Medium Poor High market End customer Poor Medium High satisfaction @teigland.com 2007 Teigland et al 2000 24

Slide 25: Hewlett-Packard (1990s)  Networking activities recognized and rewarded at individual and unit levels  Management support for informal and formal networking activities across internal and external boundaries  Extensive socialization: personnel rotation, cross- office teams  A visionary organization − Clearly defined mission: ”To make technical contributions for the advancement and welfare of humanity” − Supporting core values, e.g., teamwork − Company-wide goal of World’s Best Laboratory @teigland.com 2007 25

Slide 26: Other network outcomes?  Individual level − Improved effectiveness − Improved job opportunities − Higher salaries − Faster promotions − Increased influence & power − Improved health  Organizational level − Organizational learning − Improved innovation Painting by Idahlia Stanley − Increased sales − Decreased employee turnover @teigland.com 2007 26

Slide 27: Myths about networks  I already know what is going on in my network  We can’t do much to help informal networks  To build networks, you have to communicate more Adapted from Cross et al. 2002 @teigland.com 2007 27

Slide 28: More social get-togethers and coffee breaks are not the solution @teigland.com 2007 28

Slide 29: “Managing” networks in your organization Before After 1. Uncover networks 2. Analyze networks 3. Improve connectedness Anklam & Welch 2005 @teigland.com 2007 29

Slide 30: When you hire someone,… …..you “hire” his or her network. @teigland.com 2007 30

Slide 31: Encourage an open innovation attitude Closed attitude Open attitude Not all the smart people work for us. We need to The smart people in work with smart people our field work for us. inside and outside the company. If you create the most If you make the best and the best ideas in use of internal and the industry, you will external ideas, you will win. win. @teigland.com 2007 Chesborough 2003 31

Slide 32: 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 German biotech scientists @teigland.com 2007 Casper & Murray 2002 32

Slide 33: What can you do?  Where do you sit?  With whom do you eat lunch?  With whom do you socialize?  To which communities, networks do you belong? Think strategically…  How are decisions made in your organization?  What information flows would you like to be in?  What resources will you need in the future? @teigland.com 2007 33

Slide 34: Develop participation in a variety of networks SOCNET Outside organization Inside organization Weak Strong ties ties @teigland.com 2007 34

Slide 35: Start your own network Stanford GSB Alumni Club Stanford Nobel Laureates Swedish International Business School Alumni Network (SIBSAN) Government Ministers @teigland.com 2007 35

Slide 36: 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 @teigland.com 2007 36

Slide 37: Go meet someone different @teigland.com 2007 37

Slide 38: Make yourself easy to find - Create a live CV  Blog − blogger, livejournal, typepad, wordpress, etc.  Social software − LinkedIn − Shortcut − ecademy  Media − Slideshare.net − Flickr.com − YouTube.com @teigland.com 2007 38

Slide 39: Myths 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 @teigland.com 2007 39

Slide 40: The positive spiral of social networks Contribution Value Reciprocity Accumulation @teigland.com 2007 tschaut’s photos 40

Slide 41: References 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/ @teigland.com 2007 41

Slide 42: Thanks!!! Go network! @teigland.com 2007 42