Leveraging Social Networks for Results

Leveraging Networks for Leveraging Networks for Tangible ResultsTangible Results

Dr. Robin TeiglandDr. Robin TeiglandStockholm School of EconomicsStockholm School of Economics

robin.teigland@hhs.serobin.teigland@hhs.sewww.knowledgenetworking.org www.knowledgenetworking.org

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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

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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>One week in 2007

A person’s lifetimein 18th century

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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

family

localcolleagues

old friend

s oldcolleagues

colleagues

at other offices

Just a click away…

virtualcommunities

localnetworks

old classmat

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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.

9@teigland.com 2007 Liljeros 2006

Swedish hip hop artists

??Timbuktu

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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

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

Networks of firmsNetworks of firms

Dahlin 2007

Nocom Ericsson

TietoEnator

Groups of organizations (Sectors)Groups of organizations (Sectors)

Teigland et al. 2004

Social interaction in

Uppsala Biotech Cluster

Government

Inter-sectororganizations

Academia

Biotech

Servicefirms

Financial Institution

Uncovering networks in an Uncovering networks in an organizationorganization

Formal organization Informal organization

Teigland et al. 2005

Central connectors within one Central connectors within one locationlocation

Bottleneck

Teigland 1998

Surprise!!

Stockholm

London

Brussels

HelsinkiMadrid

Copenhagen

Boundary spanners between locationsBoundary spanners between locations

Transferred from

Stockholm

Teigland 1998

San Francisco

Trust & reciprocity are essential for

knowledge exchange in

networks

San Francisco

Stockholm

London

Brussels

Helsinki

MadridCopenhagen

Peripheral players between Peripheral players between organizationsorganizations

Teigland 1998

Otherfirms

Electroniccommunities

Dual loyalties

Loyalty

Organization Professionalnetwork

Increasing job turnoverIncreasing job turnover

Number of jobs

in lifetime

Estimated time at one

organization in Silicon Valley:~18 months

What about performance?What about performance?

Firm A

Highcreative

Low on-time

Highon-time Low

creative

Teigland 2003

Highcreative

Virtualcommunity

Firm B

The strength of weak tiesThe strength of weak ties

Network A’sknowledge Network D’s

knowledge

Network B’sknowledge

Network C’sknowledge

Granovetter 1973

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

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

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-: personnel rotation, cross-office teamsoffice teams

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)

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

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

More social get-togethers and More social get-togethers and coffee coffee breaksbreaks are not the solution are not the solution

““Managing” networks in your Managing” networks in your organization organization

Before After

Anklam & Welch 2005

1. Uncover networks

2. Analyze networks

3. Improve connectedness

…..you “hire” his or her network.

When you hire someone,… When you hire someone,…

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

If you make the best use of internal and external ideas, you

will win.

Closed attitude Open attitude

Chesborough 2003

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

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?

Develop participation in a variety of Develop participation in a variety of networks networks

Strong ties

Weak ties

Outside organizatio

Inside organizatio

SOCNET

Start your own networkStart your own network

Swedish International Business School Alumni

Network (SIBSAN)

Stanford GSB

Alumni Club

Nobel Laureates

Government Ministers

Stanford

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

Go meet someone different Go meet someone different

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

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

40@teigland.com 2007 tschaut’s photos

Contribution

Reciprocity

Accumulation

The positive spiral of social networksThe positive spiral of social networks

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/

Go network!

Thanks!!!

Leveraging Social Networks for Results

Business

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