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Network Effectiveness:

An Interactive Working Session for Packard

Foundation GranteesApril 7, 2009

Heather McLeod Grant (Heather_Grant@monitor.com)

Diana Scearce (Diana_Scearce@monitor.com)

Paris

San Francisco

São Paulo

Seoul

Singapore

Tokyo

Toronto

Zurich

Shanghai

Palo Alto

Johannesburg

Beijing

Chicago

Hong Kong

Cambridge

Delhi

Dubai

Los Angeles

Madrid

Manila

Mumbai

Munich

New York

Moscow

London

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Network Basics

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Networks Are Changing the Way the World Works

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Centralized

Connecting ideas and people takes time

Closed and proprietary

Our ability to tap expertise and share knowledge is constrained

Effectiveness is equated with longevity

Decentralized

The pace of connection is fast and getting faster

Open and transparent

Our ability to tap expertise and share knowledge is expanded

Effectiveness is equated with mobilization

Organization-centric modelOrganization-centric modelOrganization-centric modelOrganization-centric model Network-centric modelNetwork-centric modelNetwork-centric modelNetwork-centric model

We are Moving to a More Networked World

Organizations aren’t going away. We need to learn how to balance the interface between organizations and networks.

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“You can have the best technology in the world, but if you don’t have a community who wants to use it and who are excited about it, then it has no purpose.”

– Chris Hughes, Obama’s New-Media Campaign

“One of my fundamental beliefs…is that real change comes from the bottom up. And there’s no more powerful tool for grass-roots organizing than the Internet.”

– Barack Obama

Obama Used Networks to Mobilize 13 M Supporters

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“Newspapers ended 2007 with 8.4% less daily circulation and 11.4% less Sunday circulation than in 2001. Plus, print ad revenues experienced their worst drop in more than 50 years.”

– PBS, March 31, 2008

“The steady leak of advertising and readers from print to the Web has become a widening torrent…Margins are dropping fast, with the [newspaper] industry losing about 15% of its ad revenue this year.”

– New York Times, December 9, 2008

Many Industries are Being Transformed: Newspapers

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Networks are one answer for increasing scale, efficiency, coordination, and impact

Many Nonprofits Not at ScaleThe vast majority of nonprofits have annual budgets of under $1 million2

Increasing Number of NonprofitsAs many as 30,000 new nonprofits are formed each year in the U.S.1 – scarcity of organizations is not the problem

More Competition for ResourcesThe proliferation of nonprofits makes competition fierce, and fundraising more costly…especially in an economic downturn

Source: 1 http://www.alliancetrends.org/nonprofits.cfm?id=56; 2 Center for Non-Profits, 2007

Nonprofits Need to Find Ways to Leverage Networks

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Noun: A collection of people connected to each other through purposeful relationships—formal or informal

Verb: To connect or interact with other individuals, groups, or institutions in order to cultivate productive relationships

“Network” Is A Noun and A Verb

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Networks Have Been Around For A Long Time…

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…and new online spaces for building relationships

There are New Technologies for Sharing Content…

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“We are living in the Golden Age of network theory, where sociology, math, computer science and software engineering are all combining to allow the average user to visualize, understand, and most importantly, rely on the social and business networks that are part of their lives.”

- Clay Shirky

Source: “Work on Networks” by Clay Shirky (2003)

Our Understanding of Networks is Getting Better

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As a Result, the Way Our Work Gets Done is Changing

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Networks Can be Used to Address Many Issues

Get to Scale

Mobilize People and Effort

Innovate

Build Community / Strengthen Ties

Develop and Share Knowledge

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Barr Foundation: Boston Arts and Sports Afterschool Funding

Issue: Build Community / Strengthen Ties

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Issue: Develop and Share Knowledge

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Issue: Innovate

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Issue: Mobilize People and Effort

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Issue: Mobilize People and Effort

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Issue: Coordinate Resources and Services

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8,000 houses built over 8 years

…transforming

communities through

collaborations to address root causes of poverty and

homelessness

Typical HFH country programs

produce 200 houses each year

Source: HBS Case “Habitat for Humanity Egypt”, Jane Wei Skillern, Harvard Business School Publishing ’06

- EGYPT-

Issue: Get to Scale

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Increased flow of information/ ideas/ best practices

Stronger, broader connections from weaving

Greater media coverage

Enhanced fundraising/ corporate sponsors

More participant engagement

Network expansion/ scale

Action on an issue

Enhanced Outcomes from Network Approaches

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Collaborative Technologies

Working

Wikily

Collaborative Processes

Low High

GroupProcess

Skills

Low

High

TechnologicalSkills

Network Strategy Integrates Different Tools, Approaches

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Eight Lessons We’re Learning About “Working Wikily”

1. Experiment a lot, invest in understanding what works, and make only new mistakes

2. Set appropriate expectations for time and effort required

3. Prioritize human elements like trust and fun

4. Design your experiments around a problem to solve, not the tools

5. Understand your position within networks and act on this knowledge

6. Push power to the edges

7. Balance bottom-up and top-down strategies for organizing people and effort

8. Be open and transparent; share what you are doing and learning as a matter of course

Source: Working Wikily, by Gabriel Kasper and Diana Scearce (2008), Monitor Institute

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Understanding Your Network

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How are Networks Structured?

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Core

Link Node

Cluster Periphery

Hub

A Few Helpful Definitions

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Network Structures can Take Many Forms

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Centralized / Hierarchical

Decentralized

Note: These categories often overlap. Most of the examples fit in to multiple categories.

Nonprofit organizations (without explicit network structure)

Membership organizations (Organizations with network component)

Nonprofits with explicit network strategy and structure

Coalition / Alliance (network of organizations)

Networks of networks

Ad Hoc Networks

Developed from Multiple Sources: Net Gains by Plastrik and Taylor (‘06); Net Work by Anklam (‘07); Building Smart Communities by Krebs and Holley

A Typology of Organizing Structures

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Good for:• Speed of execution, efficiency• Quality control, reliability• Service-delivery• Accountability

Nonprofits without Explicit Network Structure

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Good for: Engaging, mobilizing large

groups Fundraising Question: Is the nature of

membership changing?

Membership Organizations

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Good for: Coordination of activity Controlled knowledge transfer Resource sharing

Nonprofits with Explicit Network Structure (Hub-Spoke)

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Good for: Rapid diffusion of knowledge Rapid mobilization Efficient access to knowledge or local

relationships

Nonprofits with Explicit Network Structure (Multi-Hub)

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Good for: Complex coordination & co-

creation Contained knowledge transfer Organizing around joint goals

Coalition / Alliance

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Good for: Innovation Environment scanning Movement building Resilient & adaptive action

Networks of Networks

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Good for: Connecting people/ info across

networks Spontaneous, quick action Aggregating small gifts/ actions

Ad Hoc Networks

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Social Network Mapping:

A Tool for Visualizing Your Network

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What’s Possible from Network Mapping?

Visualize the network: see connections within the system

Make visible network resources, and see flow of resources

Spark a conversation among participants Assess the “health” of a network, diagnose Assess change in network over time

What’s Possible from Network Mapping?

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Network Mapping Can Be Simple and Low-Tech…

Source: June Holley

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…Or More High-Tech

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Frame the Problem

CollectData

AnalyzeData

Validate &DiscussResults

IdentifyNextSteps

Follow up

• Goal• Problem/

Opportunity• Hypotheses• Who/

Boundaries• Relationships/

Flows• Demographics

• Surveys• Interviews• Focus groups• Data mining

• Specialized network mapping software helps to understand data:

• Visually (Maps)• Quantitatively

(Metrics)

• Preliminary review

• One-on-one interviews

• Interactive feedback session

• Formal presentation

• Planning• Training• Organizational

Changes• Specific

interventions

Framework developed by Roberto Cremonini, Barr Foundation

How is Network Mapping Done?

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Using Network Maps to Increase Connection, Coordination of ServicesUsing Network Maps to Increase Service Coordination

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Identified community to map; bounded the network

Sent out survey to collect data; entered data into software

Produced maps with ability to sort by inputs; gathered missing data

Analyzed maps to identify network development opportunities

Group continues to meet; on-going network coaching

Process Used to Map the Youth Development Network

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A map of the different networks shows fairly loose connections

Government

Foundation

Non-Profit

For-Profit

School

Unknown

Religious

Other

Network by Organization Type

Source: Monitor Institute

Maps Were Used to Analyze the Network

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Network Effectiveness:Strategies for Network Development

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Purpose

Membership

Strategy and Structure

Leadership

Communications & Technology

Resource Management

Assessment

Clearly articulated purpose Delivers value/ outcomes to members

Trust Diversity High engagement

Balance of top-down and bottom-up logic Space for self-organized action

Leadership with “network mindset” Distributed leadership

Strategic IT Ample shared space: on-line and in-person

Ability surface network talent Ability to tap excess capacity

Learning-capture Ability to gather and act on feedback

Governance Governance by a group representative of the network’s diversity Openness

Helpful Sources: M. Kearns and K. Showalter; J. Holley and V. Krebs; P. Plastrik and M. Taylor; J. W. Skillern; C. Shirky

Network Effectiveness Diagnostic: Characteristics of Healthy Networks

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Network Effectiveness Diagnostic: Membership

Membership / Participation

Trust: strong relationships Diversity: bridging and valuing differences High level of voluntary engagement

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Leadership with “network mindset” (e.g., opportunity seeking, facilitative, shares responsibility, connector)

Distributed leadershipLeadership

“Oppenheimer [the founder] was eager to help [other potential interactive museums] beg, borrow, and steal his ideas.”

Source: Forces for Good by Heather McLeod Grant and Leslie R. Crutchfield (2007)

Network Effectiveness Diagnostic: Leadership

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Governance Governance by a group representative of network’s diversity Openness to new ideas and new participation

Administrators 1,575 as of

7/17/08

Bureaucrats25 active as of

7/16/08

Stewards36 as of 1/1/08

Arbitration Committee

4 as of 7/18/08

Wikipedians175,884 as of

5/23/08

Network Effectiveness Diagnostic: Governance

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Network Effectiveness Diagnostic: Purpose / Outcomes

Purpose / Outcomes

Clearly articulated purpose Delivers value / outcomes to members

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Network Effectiveness Diagnostic: Strategy, Structure

Strategy and Structure

Balance of top-down and bottom-up logic Space for self-organized action

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Assessment Mechanisms for learning-capture / storytelling Ability to gather and act on feedback

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Hawaii Island Success: Youth have the capacity to malama the next generation

Goal: All youth are surrounded by effective, integrated

community and relationship

based support they can count on

Goal: Youth are part of and contribute to a thriving community

Action: All systems serving

youth exert a positive and

strengthening influence on

youth and their families

Action: Youth receive support

from parents and other caring

adults

Action: Community organizations actively work with community members to find and engage disconnected youth

in hopes of continuing a positive relationship

Action: Youth create

opportunities to belong, learn new skills, grow, lead, receive support,

participate in decision making and contribute to

civic life

Action: Adults are responsible to malama the

process of growth by being easily accessible and modeling these

positive behaviors

Action: Youth create and

convey positive images of

themselves

Action: Youth have the capacity for commitment

and self discipline

Action: Public and private sectors collaborate to create high

demand sectors where job

numbers, wages and advancement opportunities are

increasing

Action: Youth obtain help to develop financial literacy, manage money and

build assets

Action: Efforts are made to diversify the economy in

Hawaii

Goal: Youth have expanded opportunities for family sustaining

work/occupation

Goal: Youth are prepared for meaningful work, higher

education and/or traditional practices

Action: Teachers create an

environment in their

classrooms where kids can

succeed

Action: Teachers have

training & mentors that allow them to

become effective

Action: Teachers have the necessary training and resources to allow kids to

succeed

Action: Ensure multiple

opportunities and diverse avenues to

acquire academic, vocational,

social, life and resiliency skills

Indicator: % of youth reporting

close neighborhood

ties

Indicator: % of youth with at least 1 adult

they can turn to for

support/advise

Indicator: % parents who

actively participate in public school

Indicator: % of youth reporting close family ties

Indicator: % of youth who

volunteer or mentor

Indicator: High level of

interaction between school and community

members

Indicator: Number of youth who age out of

foster care annually with employment, housing or schooling

Indicator: Youth employment in

high growth sectors and geographies

Indicator: Increase in

youth employment and average salaries

Indicator: # of new businesses in sustainable

agriculture, renewable

energy, green architecture

Indicator: New jobs created by

sector and geography

Indicator: # of public/private

partnerships in new industries

Indicator: Number of

teachers with classroom

competence

Indicator: Teachers

with family supporting

wages

Indicator: % students who

meet and exceed expectation in 3rd

Grade

Indicator: Youth with

basic literacy and numeric

skills

Indicator: % of high school

students going to college

and/or trade apprenticeship

Indicator: Good teachers and

principals with 5+ years exp. In same schoolWork in Progress

Network Effectiveness Diagnostic: Assessment

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Network Effectiveness Diagnostic: Communications, IT

Communications & Technology

Strategic IT Ample space: on-line and in-person

What’s your connection to mountaintop removal?

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Network Effectiveness Diagnostic: Communications, IT

Communications & Technology

Strategic IT Ample shared space: on-line and in-person

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Network Effectiveness Diagnostic: Resource Mgt.

Ability to surface network talent Ability to tap excess capacity – talent, access, money

Resource Management

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How healthy is your network?

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You’ve diagnosed your network’s areas of strength and weakness.

Now, what do you do?

Answer: It depends…

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Source: Valdis Krebs and June Holley, Building Smart Communities through Network Weaving

How Networks Progress and Evolve

1. 2.

3. 4. Multi-Hub Small World Core Periphery

Hub and SpokeScattered Clusters

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Bring together core of clusters of people who work together as peers

Grow and engage periphery to bring in new resources and innovation

Support overlapping projects or collaborations, many very small, initiated by many

Nurture quality connections so projects can be high risk & high impact

A Few Strategies for Network “Weaving”/ Development

Source: June Holley, www.networkweaving.com

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The Green and Healthy Building Network: 2005

Source: Barr Foundation “Green and Healthy Building Network Case Study” by Beth Tener, Al Neirenberg, Bruce Hoppe

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Source: Barr Foundation “Green and Healthy Building Network Case Study” by Beth Tener, Al Neirenberg, Bruce Hoppe

The Green and Healthy Building Network: 2007

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How can you strengthen your network?

• Identify your top 2-3 priority areas for improvement• For each…

– What are the open questions that need to be answered?– What are steps you can take to address these questions?

» What can you do in the next month? » Over the next 6 months? » Over the next year?

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Network Aptitude and Mindset

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The Network Mindset

Organization Orientation Network Orientation

Mindset

Strategy

Behaviors

Competition

Grow the organization

Compete for resourcesProtect knowledge

Competitive advantageHoard talent

Collaboration

Grow the network

Share resourcesOpen source IP

Develop competitorsCultivate leadership

Source: Forces for Good by Heather McLeod Grant and Leslie R. Crutchfield (2007)

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1. Learn about the network and strengthen network connectivity

2. Information codification and dissemination

3. Make direct connections

4. Building / strengthening network intermediaries

5. Identify new ideas and resources

6. Help new collaborative cross organizational projects form around emergent issues

7. Coach people to become network weavers

What Network Weavers Do

Source: Building the Field of Dreams by Stephanie Lowell (2007)

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Nine Competencies of ‘Working Wikily’

Systems Thinking

Allocating Resources

Inspiring

Bridging Difference

Connecting

Coordinating

Capacity Building

Building Consensus

Facilitating

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Determining the boundaries, size of the network

Communicating the value of networks

Internal organizational resistance

Building trust among participants

Scaling and meeting resource demands

Tracking and evaluating impact

Letting go of control; not worrying about “credit”

Common Challenges Faced by Network Leaders

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What did you learn? Where did score yourself hi/ low?

What are your priority goals for development?

What are three tangible things you can do to strengthen your network leadership?

What would help you achieve these goals?

Is there a correlation between network / leadership diagnostics?

QUESTIONS (15-20 min)