1-1 Leveraging Networks for Tangible Results Dr. Robin Teigland Stockholm School of Economics...
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Transcript of 1-1 Leveraging Networks for Tangible Results Dr. Robin Teigland Stockholm School of Economics...
1-1
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
@teigland.com 2007 2
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
@teigland.com 2007 3
Growth
Time
Information and knowledge
Human absorptive capacity
Cohen & Levinthal 1989
A world of rapidly growing knowledge A world of rapidly growing knowledge ….….
@teigland.com 2007 4
A world of rapidly growing knowledge A world of rapidly growing knowledge ….….
>One week in 2007
A person’s lifetimein 18th century
@teigland.com 2007 5
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
@teigland.com 2007 6
....that is increasingly connected....that is increasingly connected
new friend
s
family
localcolleagues
old friend
s oldcolleagues
colleagues
at other offices
Just a click away…
virtualcommunities
localnetworks
old classmat
es
@teigland.com 2007 7
””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
@teigland.com 2007 8
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
@teigland.com 2007 9Liljeros 2006
Swedish hip hop artists
??Timbuktu
@teigland.com 2007 10
Individuals within a firmIndividuals within a firm
Mattsson 2004
< 1 yr1-5 yrs
5-10 yrs10-15 yrs> 15 yrs
Time at firm
@teigland.com 2007 11
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
??
@teigland.com 2007 12
Networks of firmsNetworks of firms
Dahlin 2007
Nocom Ericsson
Telia
Nokia
TietoEnator
@teigland.com 2007 13
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
@teigland.com 2007 14
Uncovering networks in an Uncovering networks in an organizationorganization
Formal organization Informal organization
Teigland et al. 2005
@teigland.com 2007 15
Central connectors within one Central connectors within one locationlocation
Bottleneck
Teigland 1998
Surprise!!
Stockholm
@teigland.com 2007 16
Stockholm
London
Brussels
HelsinkiMadrid
Copenhagen
Boundary spanners between locationsBoundary spanners between locations
Transferred from
Stockholm
Teigland 1998
San Francisco
@teigland.com 2007 17
Trust & reciprocity are essential for
knowledge exchange in
networks
@teigland.com 2007 18
San Francisco
Stockholm
London
Brussels
Helsinki
MadridCopenhagen
Peripheral players between Peripheral players between organizationsorganizations
Teigland 1998
Otherfirms
Electroniccommunities
@teigland.com 2007 19
Dual loyalties
Loyalty
Loyalty
Organization Professionalnetwork
@teigland.com 2007 20
Increasing job turnoverIncreasing job turnover
Time
Number of jobs
in lifetime
Estimated time at one
organization in Silicon Valley:~18 months
@teigland.com 2007 21
What about performance?What about performance?
Firm A
Highcreative
Low on-time
Highon-time Low
creative
Teigland 2003
Highcreative
Virtualcommunity
Firm B
@teigland.com 2007 22
The strength of weak tiesThe strength of weak ties
Network A’sknowledge Network D’s
knowledge
Network B’sknowledge
Network C’sknowledge
Granovetter 1973
@teigland.com 2007 23
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
@teigland.com 2007 24
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
@teigland.com 2007 25
Networking activities Networking activities recognized and recognized and rewardedrewarded at individual and unit levels at individual and unit levels
Management support for Management support for informal and informal and formalformal networking activitiesnetworking activities across across internal and external boundariesinternal and external boundaries
ExtensiveExtensive socializationsocialization: personnel : personnel rotation, cross-office teamsrotation, cross-office teams
A A visionaryvisionary organization organization −Clearly defined mission:Clearly defined mission: ”To make technical ”To make technical
contributions for the advancement and welfare of contributions for the advancement and welfare of humanity”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)
@teigland.com 2007 26
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
@teigland.com 2007 27
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
@teigland.com 2007 28
More social get-togethers and More social get-togethers and coffee coffee breaksbreaks are not the solution are not the solution
@teigland.com 2007 29
““Managing” networks in your Managing” networks in your organization organization
Before After
Anklam & Welch 2005
1. Uncover networks
2. Analyze networks
3. Improve connectedness
@teigland.com 2007 30
…..you “hire” his or her network.
When you hire someone,… When you hire someone,…
@teigland.com 2007 31
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
@teigland.com 2007 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
Casper & Murray 2002
German biotech
scientists
@teigland.com 2007 33
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?
@teigland.com 2007 34
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
@teigland.com 2007 35
Start your own networkStart your own network
Swedish International Business School Alumni
Network (SIBSAN)
Stanford GSB
Alumni Club
Nobel Laureates
Government Ministers
Stanford
@teigland.com 2007 36
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
@teigland.com 2007 37
Go meet someone different Go meet someone different
@teigland.com 2007 38
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
@teigland.com 2007 39
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” Informal networks can be “managed”
through changing the organizational contextthrough changing 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 developed
Adapted from Cross et al. 2002
@teigland.com 2007 40tschaut’s photos
Contribution
Reciprocity
Accumulation
Value
The positive spiral of social networksThe positive spiral of social networks
@teigland.com 2007 41
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/
@teigland.com 2007 42
Go network!
Thanks!!!