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1-1 Leveraging Networks for Leveraging Networks for Results- Results- A brief look A brief look Dr. Robin Teigland Dr. Robin Teigland Stockholm School of Economics Stockholm School of Economics [email protected] [email protected] www.knowledgenetworking.org www.knowledgenetworking.org www.slideshare.net/eteigland www.slideshare.net/eteigland May 2008 May 2008

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Page 1: Ifl Womens Network Teigland

1-1

Leveraging Networks for Leveraging Networks for Results- Results-

A brief lookA brief look

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

[email protected]@hhs.sewww.knowledgenetworking.orgwww.knowledgenetworking.orgwww.slideshare.net/eteigland www.slideshare.net/eteigland

May 2008May 2008

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@teigland.com 2008 2

Why the interest in networks?Why the interest in networks?What are networks?What are networks?What about power and What about power and

performance?performance?What can you do?What can you do?

Today’s discussionToday’s discussion

www.slideshare.net/eteiglandwww.slideshare.net/eteigland

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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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A world of rapidly growing knowledge ….A world of rapidly growing knowledge ….

>A person’s lifetimeA person’s lifetime

18th century18th centuryOne weekOne week

20082008

Fischbowl 2007

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……while it becomes quickly outdated ….while it becomes quickly outdated ….

50%knowledge

relevant

50%knowledgeoutdated

First year of First year of technical-based technical-based

educationeducation

First year of First year of technical-based technical-based

educationeducation Third yearThird yearof educationof educationThird yearThird year

of educationof education

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Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?

v=pMcfrLYDm2Uv=pMcfrLYDm2U

How are these trends affecting you How are these trends affecting you and your organization?and your organization?

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Growth

Time

Information and knowledge

Human absorptive capacity

Cohen & Levinthal 1989

Increasing difficulty in keeping up ….Increasing difficulty in keeping up ….

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“The rate at which individuals and organizations learn may become the only sustainable competitive

advantage, especially in knowledge-intensive industries.”

8

Ray Stata,Chairman Analog Devices

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The world is “shrinking”The world is “shrinking”

familyfamily

locallocalcolleaguescolleagues

friendfriendss

oldoldcolleaguescolleagues

colleaguecolleaguess

at other at other officesoffices

Just a click

away…virtualvirtual

communities communities

locallocalnetworksnetworks

old old classmatclassmat

eses

avatarsavatars

businessbusinesscontactscontacts

social social media media

contactscontacts

referralsreferrals

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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.”networksnetworks

Adapted from Lévy 1997

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What is a network?What is a network?

A set of actors connected by tiesA set of actors connected by ties

•Ties/LinksTies/Links−Knowledge, trust, Knowledge, trust, team, sit by, dislike, team, sit by, dislike, etc.etc.−Alliance, customer, Alliance, customer, investment, etc.investment, etc.

TieTie•Actors/NodesActors/Nodes

−IndividualsIndividuals−Teams, Teams, organizations, etc.organizations, etc.

ActorActor

Page 12: Ifl Womens Network Teigland

@teigland.com 2008 12Liljeros 2006

Swedish hip hop artists

??Timbuktu

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Central connectors within one locationCentral connectors within one location

Bottleneck

Teigland 1998

Surprise!!

Stockholm

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Stockholm

London

Brussels

HelsinkiMadrid

Copenhagen

Boundary spanners between locationsBoundary spanners between locations

Transferred from

Stockholm

Teigland 1998

San Francisco

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Trust & reciprocity are essential for

knowledge exchange in

networks

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San Francisco

Stockholm

London

Brussels

Helsinki

MadridCopenhagen

Peripheral players between organizationsPeripheral players between organizations

Teigland 1998

Otherfirms

Electroniccommunities

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Dual loyalties

Loyalty Loyalty

Organization Professionalnetwork

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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 largest public firms, 2000firms, 2000??

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What is the relationship What is the relationship between networks and between networks and

power?power?

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Uncovering networks in an organizationUncovering networks in an organization

Formal organizationFormal organization InformalInformal organizationorganization

Teigland et al. 2005

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How does informal power arise?How does informal power arise?

21Krebs 2004

Node 16 gains informal power, weakening the boss Node 15’s

power…

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How does informal power arise?How does informal power arise?

22Krebs 2004

……and now N16’s informal power is and now N16’s informal power is greater than the boss N15’s formal greater than the boss N15’s formal

powerpower

……and now N16’s informal power is and now N16’s informal power is greater than the boss N15’s formal greater than the boss N15’s formal

powerpower

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Betweenness•Control over what flows

in the network•How often are you on the shortest path between 2

individuals?

Closeness•Access to what flows in

the network•How quickly can you reach all others in the

network?

Your network position is related to power Your network position is related to power

23Krebs 2004

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Does performance differ Does performance differ based on one’s based on one’s

networks?networks?

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BA

Two individuals with the same number of Two individuals with the same number of contacts…contacts…

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……but with very different access to resourcesbut with very different access to resources

BA

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Performance differs based on one’s networkPerformance differs based on one’s network

Firm AFirm A

Lowon-time

HighCreative

Highon-time

Low creative

Teigland 2003

Highcreative

VirtualVirtualcommunitycommunity

Firm BFirm B

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The strength of weak tiesThe strength of weak ties

Network A’sNetwork A’sknowledge knowledge

Network D’sNetwork D’sknowledge knowledge

Network B’sNetwork B’sknowledge knowledge

Network C’sNetwork C’sknowledge knowledge

Granovetter 1973

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……..you “hire” his or her network...you “hire” his or her network.

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

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Two divisions within Sundlink (Öresund Two divisions within Sundlink (Öresund Bridge)Bridge)

Section 1 Section 2

Improved efficiency Improved efficiency over timeover time

Stagnant Stagnant performance over performance over

timetimeSchenkel & Teigland 2008

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More social get-togethers and coffee More social get-togethers and coffee breaksbreaks are are notnot the solution the solution

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

BeforeBefore AfterAfter

Anklam & Welch 2005

1. Uncover networks1. Uncover networks

2. Analyze networks2. Analyze networks

3. Improve connectedness3. Improve connectedness

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Comparing performance across firmsComparing performance across firms

Teigland et al 2000

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Networking activities recognized and rewarded at individual and unit levels

Management support for informal and formal networking activities across internal and external boundariesBest practice task groupPersonal initiatives

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, helpfulness− Company-wide goal of World’s Best Laboratory

Hewlett-Packard (1990s)Hewlett-Packard (1990s)

Teigland et al 2000

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Promote an open innovation attitudePromote 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

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External networks are growing in External networks are growing in importance!importance!

36

Other people around the world

Other employes around the world

Other employees in your country

Co-Workers

Friends

You

AlexEyal

Your managerRami’s manager

Hila

YaronYuval

Eduardo

Ed

Muriel

Peter

Frequent e-mails

Infrequent e-mails

Web 2.0 Collaboration

Large portion of Large portion of new ideasnew ideas and formal and formal collaboration relationships come from collaboration relationships come from external external

contactscontacts

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Facebook Fridays – Embracing social mediaFacebook Fridays – Embracing social media

•#1 Applications Lifecycle Management (ALM) & business mashup

•96 of Fortune 100 as customers•800 employees in 18 countries across globe

•One hour every Friday to Facebook to find fun and connect with co-workers, customers, family,

and friends

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Increasing job turnoverIncreasing job turnover

Time

Number of jobs

in lifetime

Estimated time at one organization in Silicon Valley:

~18 months

CNET 2000

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Why use these new social media tools? Why use these new social media tools?

Melcrum 10/07

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Myths and reality checks about networksMyths and reality checks about networks

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

To build networks, you have to communicate more

Networks can be strategically developed

We can’t do much to help informal networks Informal networks can be “managed”

through changing the organizational context

Adapted from Cross et al. 2002

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So, what does this mean for you?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

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What can you do?What can you do?What do your networks look like?What do your networks look like? 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?

Build networks before you need them…Build networks before you need them… 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? Whom should you get to know?Whom should you get to know?

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

Strong Strong tiesties

Weak Weak tiesties

Outside Outside organizatioorganizatio

nn

Inside Inside organizatioorganizatio

nn

SOCNET

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Start your own networkStart your own network

Swedish International Swedish International Business School Alumni Business School Alumni

Network (SIBSAN)Network (SIBSAN)

Stanford Stanford GSB GSB

Alumni Alumni Club Club

Nobel Laureates Nobel Laureates

Political LeadersPolitical Leaders

Stanford

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But…….But…….

““Lika barn leka bäst”Lika barn leka bäst”People find similar people attractive and People find similar people attractive and

develop relations with people like develop relations with people like themselves themselves

Our networks tend to be Our networks tend to be homogeneoushomogeneous and and not heterogeneousnot heterogeneous

Marsden 1987, Burt 1990Marsden 1987, Burt 1990

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Go meet someone different Go meet someone different

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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

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@teigland.com 2008 4848tschaut’s photostschaut’s photos

ContributioContributionn

ReciprocitReciprocityy

AccumulationAccumulation

ValueValue

The positive spiral of social networksThe positive spiral of social networks

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Thanks and Thanks and see you in world!see you in world!

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@hhs.se

www.knowledgenetworking.www.knowledgenetworking.orgorg

www.slideshare.net/www.slideshare.net/eteigland eteigland

Thanks and Thanks and see you in world!see you in world!

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@hhs.se

www.knowledgenetworking.www.knowledgenetworking.orgorg

www.slideshare.net/www.slideshare.net/eteigland eteigland

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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. American Management Assoc.,

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/

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. American Management Assoc.,

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/