Leveraging Networks for Tangible Results

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5 3 3 ۳ ۹ ANOLE eee Leveraging Networks for Tangible Results Dr, Robin Teigland Stockholm School of Economics robin.teigland@hhs.se www.knowledgenetworking.org 

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Everyone is talking about networks Ego Formal Networks Networks ١ Regional Social Networks National Networks Innovation Networks Informal Entrepreneurial Networks Networks ( Infrastructure Electronic Networks Networks Networks Networked of Practice organization ۳ 3-06 To Reels FAS.research 5 

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Networks of firms Dahlin 2007 

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Groups of organizations (Sectors) Teigland et al. 2004 13 

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Uncovering Networks IN an organization Caer ‏هی‎ ON ACPA ASLAN PACT thie ۳ ‎Teigland et al. 2005 14‏ یت ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ 

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Dual loyalties 

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تزیرا۱۱ Increasing job turnover Number of jobs ‏لي‎ ‎lifetime >@teigland.com 2007 

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What about performance? Firm B Virtual community ape 7s 222202 2007 Teigland 200321 

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The strength of weak ties : Network C’s Network B’s knowledge knowledge 22 Network A’s ‏ال-5‎ knowledge Network D's knowledge Se) ateioland.com 2007 Granovetter 1973 22 

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Hewlett-Packard (1990s) 6 » 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 ars le — Supporting core values, e.g., teamwork —Company-wide goal of World’s Best Laboratory Pee U Rete 3 

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Other network outcomes? » Individual level —Improved effectiveness — Improved job opportunities —Higher salaries — Faster promotions — Increased influence & power —Improved health » Organizational level 0 ‏ل‎ ‎—Improved innovation —Increased sales apse escent ON ZACR eT GACON Ua لاعاصقع5 وتلطقك! لاط وماغمتهم ۳۳ orm / ۵۳۸ ‏ات‎ 2007 

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Myths about networks » | already know what is going on in my network » We can’t do much to help informal Talia Vela ec} » To build networks, you have to communicate more ۳ Bola Reel Adapted from Cross et al. 2002 27 

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مو و نا وا لاي ا لبس ‎mel on nel oll)" ool aR‏ ای organization After 1. Uncover networks 2. Analyze networks 3. Improve connectedness 1 Sole URS es Anklam & Welch 2005 29 

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When you hire someone.,... 

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Encourage an open Innovation attitude )0( ‏و‎ ccd Ont ol the scart pevple work Porus. Oe veed to work wits save people toside cod vutside ‏ی از‎ AP you souke the best ue ‏اه له ات‎ ری اند بو رل Chesborough 2003 31 را و۱9 ON Rr an coe a ‏نا‎ an 4P pou pede the wost ‏اش ات رات‎ ‏ره ان تخر رتم‎ ۱ 

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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 ‏يك‎ scientists 4 0 ات 

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What can you do? ا كك تا #طعمنا غوع نمز مل مروطانه ماغلالا عر » With whom do you socialize? * To which communities, networks do you belong? ۱0 ۱ Seer CRN lace ulcU airs ‏ی‎ ‎< ۱۷/۳۵ ‏7ننه عطا دا 0660 نوی الا جع ۲ناووع۲‎ ro ZAC ne) 2007 33 

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Start your own network Stanford Swedish International Business School Alumni Network (SIBSAN) Government Renee etd Ministers 35 

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“Lika barn leka bast” People find similar people attractive and develop relations with people like th 6۱۷65 Our networks tend to be Homogeneous and not heterogeneous ۳ BOSE Reels Marsden 1987, Burt 1990 36 

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Go meet someone different 

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Make yourself easy to find - Create a live CV ‘A Knowledge Networking Researcher's Homepage < ۵۱ og — blogger, livejournal, typepad, wordpress, etc. » Social software > — Shortcut —ecademy >» Media — Slideshare.net اک — YouTube.com 38 ل 

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Myths and reality checks » | 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 i 1 SETI Res Adapted from Cross et al. 2002 39 

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The positive spiral of social networks Contributio ca | ۱3 Reciprocit ff. oe 0 LC ee ea 2007 tschaut's photos 40 

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References and acknowledgements Books — Barabasi, 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 ‏كت‎ 2 ‏ا‎ ‎— Scott, Social Network Analysis. Sage, 2000 3 ,558 ,۱۷6۲۷۵۲9 ۵۷/۵096 ,1300 و6 - 7 یت ع اتاهع ك0 .عاو ادو مقط اقبءرثلا ‎mS‏ ‎Homepages‏ 60أماو/نالع.ناط.عاممعم ,50أ8 معطمع5 - < 5۳6۷6 ‏,و80۳‎ ۷۷۷۷ CN ea 605.09 . الاللاللا ,1055© 806 - — International Network for Social Network Analysis http://www.insna.org/ me CUCM Ne leat lee lem eee ‏یت کت ی کت ات یی‎ SRV Cen oem mcentectat امغط.كاعلماردمعع زانا/ءممهطا/ع5. ناد. لاوهاماع50.للاللاننا ,كمعع زانا »اأمولعمع ‏ - 2 ‏ا‎ tea — Giancarlo Oriani, www.informalorg.eu (In Italian) ‎UTC Same lco lg ORS‏ میات ‎ZAC ne) 2007 41 ‎el ‎ 

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Go network! Thanks!!! ل 

Leveraging Networks for Tangible Results Dr. Robin Teigland Stockholm School of Economics robin.teigland@hhs.se 1-1 www.knowledgenetworking.org Everyone is talking about networks Formal Networks Ego Networks National Innovation Networks Social Networks Informal Networks Electronic Networks Networked organization @teigland.com 2007 Regional Networks Entrepreneurial Networks Infrastructure Networks Networks of Practice FAS.research 2 A world of rapidly growing knowledge …. Growth Information and knowledge Human absorptive capacity Time @teigland.com 2007 Cohen & Levinthal 1989 3 A world of rapidly growing knowledge …. > One week in 2007 @teigland.com 2007 A person’s lifetime in 18th century 4 A world of rapidly growing knowledge …. 50% knowledge outdated 50% knowledge relevant First year of technical-based education @teigland.com 2007 Third year of education 5 ....that is increasingly connected Just a click away… local networks new friend s family colleague s at other offices local old colleagues friend s old colleagues old classmat es virtual communities @teigland.com 2007 6 ”No one knows everything, everyone knows something, all knowledge resides in networks. humanity.” @teigland.com 2007 Lévy 1997 7 What is a network? Actor Tie •Actors/Nodes −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 Swedish hip hop artists Timbuktu ?? @teigland.com 2007 Liljeros 2006 9 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 Individuals between business firms SEB ?? @teigland.com 2007 Interlocking directorates of Sweden’s 110 largest public firms, 2000 Ray-Adams & Sandberg 2000 11 Networks of firms Nokia Nocom Ericsso n TietoEnat or Telia @teigland.com 2007 Dahlin 2007 12 Groups of organizations (Sectors) Social interaction in Uppsala Biotech Cluster Government Academia Biotec h firms Inter-sector organizations Servic efirms @teigland.com 2007 Financial Institution s Teigland et al. 2004 13 Uncovering networks in an organization Formal organization @teigland.com 2007 Informal organization Teigland et al. 2005 14 Central connectors within one location Stockholm Surprise!! @teigland.com 2007 Bottleneck  Teigland 1998 15 Boundary spanners between locations Brussels Transferred from Stockholm San Francisco Stockholm Helsinki @teigland.com 2007 Copenhagen London Madrid Teigland 1998 16 Trust & reciprocity are essential for knowledge exchange in networks @teigland.com 2007 17 Peripheral players between organizations Electronic communities Stockholm Brussels San Francisco Other firms London Helsinki @teigland.com 2007 Copenhagen Madrid Teigland 1998 18 Dual loyalties Lo y t l ya Organization @teigland.com 2007 Lo ya l ty Professional network 19 Increasing job turnover Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months Time @teigland.com 2007 20 What about performance? Firm B High on-time Low creative Firm A High creative Virtual community Low High on-time creative @teigland.com 2007 Teigland 2003 21 The strength of weak ties Network B’s knowledge Network A’s knowledge @teigland.com 2007 Network C’s knowledge Network D’s knowledge Granovetter 1973 22 Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Stagnant performance over time Improved efficiency over time @teigland.com 2007 Schenkel & Teigland 2007 23 Comparing across firms Co mp a n y A R&D Eri csso n R&D HP R&D % Re ve nu e fro m prod u ct s dev’d i n l a st t h ree yea rs Sp eed , t i me t o ma rket Poor High High Medium Poor High End cu st ome r sa t i sfa ct i on Poor Medium High @teigland.com 2007 Teigland et al 2000 24 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 Other network outcomes?  Individual level − Improved effectiveness − Improved job opportunities − Higher salaries − Faster promotions − Increased influence & power − Improved health  Organizational level Painting by Idahlia Stanley @teigland.com 2007 − Organizational learning − Improved innovation − Increased sales − Decreased employee turnover 26 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 @teigland.com 2007 Adapted from Cross et al. 2002 27 More social get-togethers and coffee breaks are not the solution @teigland.com 2007 28 “Managing” networks in your organization Before After 1. Uncover networks 2. Analyze networks 3. Improve connectedness @teigland.com 2007 Anklam & Welch 2005 29 When you hire someone,… …..you “hire” his or her network. @teigland.com 2007 30 Encourage an open innovation attitude Closed attitude The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. @teigland.com 2007 Open attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. If you make the best use of internal and external ideas, you will win. Chesborough 2003 31 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 200232 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 Develop participation in a variety of networks SOCNET Outside organizatio n Inside organizatio n @teigland.com 2007 Strong ties Weak ties 34 Start your own network Stanford GSB Alumni Club Stanford Nobel Laureates Swedish International Business School Alumni Network (SIBSAN) @teigland.com 2007 Government Ministers 35 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 @teigland.com 2007 Marsden 1987, Burt 1990 36 Go meet someone different @teigland.com 2007 37 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 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 @teigland.com 2007 Adapted from Cross et al. 2002 39 The positive spiral of social networks Contributio n Value Reciprocit y Accumulation @teigland.com 2007 tschaut’s photos 40 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 Thanks!!! Go network! @teigland.com 2007 42