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Is the Receptionist Better Connected Than You Are? Building an Effective Team Using Organizational Network Analysis Micki Nelson, CIO

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Is the Receptionist Better

Connected Than You Are?

Building an Effective Team

Using

Organizational Network

Analysis

Micki Nelson, CIO

MWH is a Global Environmental

Engineering/Construction Company

• Privately held

• Over 150 years old

• $1.3B yearly revenue

• 6500 employees

• 145+ IT professionals

world wide

• Over 200 offices located in Asia, Africa, North America, South

America, Europe, Middle East, Australia and New Zealand

2003

• MWH will be the premier global provider of wet infrastructure services by seeking

profitable, sustainable growth opportunities that build on our core competencies

and combined strengths.

• The corporation uses its global position and knowledge management concept to

export best practices around the world instantly.

• Extremely decentralized, independent culture

• No consistent global practices

• Strongly relational…a coffee pot culture existed

• Build a centralized, global IT organization that can operate virtually from anywhere

• Improve the overall performance and reduce cost

The Culture

The Challenge

The Vision

Goal setting, gap analysis and careful

planning was used to attain our goals

Where do we want to be (2004 )?

How do we get there (tactics)?

How do we know we’ve arrived (metrics)?

How do we stay there (and improve)?

Where are we now (2003)?

Organizational Network

Analysis

Ed

Tim

Bob

Pam

Sal

Sue

• ONA provides a picture of how work really gets done

• ONA is the study of who you know, not what you know!

• Relationships -- are multi-dimensional and „discovered‟ through the questions we ask

• Network structure will facilitate or impede effectiveness of team

• ONA provides quantitative metrics

• Three networks were examined at MWH:

– Information Network

– Awareness Network

– Energy Network

Density: Robustness of Network

• Number of ties, expressed as percentage of the number of

pairs

• Dense networks have more face-to-face relationships

12

3

56

4

9

12

10

1314

78

11

15

16

Low density calculation example:

12 people = 132 possible connections

Number of pairs = 132 / 2 = 66

16 connections / 66 pair = 25%

Distance: Ease of Network

Connection

• Average number of steps to reach all network participants

• Lower scores reflect a group better able to leverage

knowledge and communicate important information more

quickly

Centrality: Identifies Influential

People

• How well connected each individual is

• Technical definition: Number of ties a person has

Network analysis is NOT about the

org chart

Organization Chart

Network MapSenior Vice President

Jones

2003: Information sharing is higher

within groups than across them

Network Measures

Density = 6%

Distance = 3.2

Centrality = 9

Central People

Smith (29)

Jones (26)

White (21)

Doe(21)

= Pasadena

Location

= High Wycombe= Warrington

= Chicago

= Denver

= EMEAI Other

= Walnut Creek

= AP Other= USA Other

= India= Other

= Christchurch

Asia-Pacific

UK

Americas - ERP

Americas

QUESTION ASKED:

“Please indicate the extent to which the people listed below provide you with information you

use to accomplish your work.” (Responses of frequently and very frequently.)

2003: Many people with low tenure are

central to the information network

QUESTION ASKED:“Please indicate the extent to which the people listed below provide you with information

you use to accomplish your work.” (Responses of frequently and very frequently.)

Network Measures

Density = 6%

Distance = 3.2

Centrality = 9

Central People

Smith (29)

Jones (26)

White (21)

Doe (21)

= 2-5 Years= 5-10 Years= 10+ Years

= 0-2 yearsMWH Tenure

2003: The awareness network is much

denser than the information network

QUESTION ASKED:“I understand this person's knowledge and skills.” (Responses of agree and strongly agree.)

Network Measures

Density = 19%

Distance = 2.1

Centrality = 29

= Pasadena

Location

= High Wycombe= Warrington

= Chicago

= Denver

= EMEAI Other

= Walnut Creek

= AP Other= USA Other

= India= Other

= Christchurch

Central People

Nelson (74)

James (68)

Smith (65)

Mona (65)

What were the obvious challenges?

• Creating a collaborative global/virtual “team”

• Improved project execution

• NIH (not invented here)

• Culture

• Time zones

• Systems & processes

• Communication and collaboration

• Spreading the VISION

So what? What have we done with

this information?

• ONA has been done every year since 2003

• Specific tactics have been put in place each

year

• A variety of tools and techniques have been

tried with varying success

Tactic: Team Building

• Bringing teams together regionally and globally

• Facilitated Meyers Briggs (MBTI) training and

awareness

• Facilitated technical sessions

• Facilitated communication/interaction training

• Facilitated and informal

social interactions

Tactic: Job swaps

• Trade jobs across regions

• 2 weeks to 2 months in length

• Immersion exposure to regional culture &

expectations

• Opportunity

for social

interaction

Tactic: Clearer career paths

• Documented “Performance Track” with KPIs

• Commitment to “advertise” all jobs internally

and globally

• Succession planning at all levels

• Cross-team participation

when interviewing and

selecting applicants

Tactic: Interpret Network Map

to advance specific personnel

actions

India

Asia-Pacific

Americas

Individual role

change removed

barrier and

boosted

collaboration.

Europe

Americas - ERP

Tactic: Time zone

accommodation

US UK

IndiaNZ

Creative

(or multiple)

meetings

Flexible

work

hours

Collaboration

tools

Tactic: Improved systems and

processes

• ITIL: 88% of iNet trained

– Change Management

– Incident Management

– Release Management

– Problem Management

– Configuration Management

• Global standards

• Remote management tools

Tactic: Varied and improved

communication

• Communicate, communicate, COMMUNICATE!

– Email

– Instant messaging

– Staff meetings

– Web casts

– Internal newsletter

– Discussion threads

– Knowledge bases

So… Where are we now?

Awareness has increased

dramatically

2003 Network

2010 Network Measures

Density = 33%

Distance = 1.7

Centrality = 53

Central People

Nelson (142)

Park (117)

Dickson (109)

Doe (103)

2003 Network Measures

Density = 6%

Distance = 3.2

Centrality = 9

2010 Network

Employees central to the Awareness

Network tend to have longer company

tenure

Awareness Network –

responses of agree,

strongly agree

How long have you worked

at MWH?

4 – 7 Years

0 – 6 Months

6 Months – 1 Year1 – 1.5 Years

1.5 – 2 Years

2 – 4 Years

110 – 20

Years

>20 Years

7 – 10 Years

Connections in and between

regions have increased significantly

2003 Network

2010 Network

Americas

Europe-Africa

Asia Pacific

ResourceNet

Middle East

With tenure, cross-regional ties

become more common

MWH AmericasEMEAIMWH APResourceNetMWH Global

Employees with less

than 4 years tenure

Employees with 4 or

more years tenure

Daily or weekly virtual communication

is common for individuals central to

iNet and the information received is

considered effective

Information Effectiveness

Network – responses of I know

this person and have found

them to be effective sources of

information

How often do you communicate

virtually with iNet employees

overseas

No Response

Never

Once a Year

Quarterly

Monthly

Weekly

Daily

High level of collaboration

86%

Never Weekly Daily

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%86% of iNet

team

members talk

to a team

member in

another region

every week.

In fact, 62% do

this daily!

Most iNet business units cross

geographical boundaries

Information Network –

responses of frequently,

and very frequently

What is your business unit?

Other

Application Services

Customer Services

Infrastructure Services

MWH Global iNet

MWHCI IDCOPS

Project & Solution Services

Most central energizers appear

to share iNet news with others

Please indicate what is the

primary way that you

personally become informed

about iNet business

activities and operations

Energy Network –

responses of energizing

In-House Webcasts via KNet

iNews

Managers Other than Your Own

Other Colleagues

Direct MWH manager

Individuals who strongly disagree

that iNet communication is

effective are on network periphery

I feel that iNet

communication is effective

and adequate

Energy Network –

responses of energizing

Strongly Disagree

Disagree

Somewhat Disagree

Somewhat AgreeAgree

Strongly Agree

Did not respond

Most individuals central within

information network understand

iNet strategy

Strongly Disagree

Disagree

Somewhat Disagree

Somewhat AgreeAgree

Strongly Agree

I understand the iNet

strategy

Information Network –

responses of frequently,

and very frequently

Effective Information comes from

those who are enthusiastic about

providing high quality work

Information Effectiveness

Network – responses of I know

this person and have found

them to be effective sources of

information

Always

Very often

Often

SometimesRarely

Almost NeverNever

I am enthusiastic about

providing high quality work

… and from those willing to go that

extra mile

Information Effectiveness

Network – responses of I know

this person and have found

them to be effective sources of

information

Always

Very often

Often

SometimesRarely

Almost Never

Never

I am willing to go the extra mile

…and where their job is a source of

personal pride

Information Effectiveness

Network – responses of I know

this person and have found

them to be effective sources of

information

Always

Very often

Often

SometimesRarely

Almost Never

Never

My job is a source of

personal pride

Results of Globalized Team:

More innovative solutions

Project

work

Today: Work

flow follows

the sun…

Whoever is

awake is

working

Issue

resolution

Virus attack

management

System

maintenance

Project

collaboration

Enterprise

rollouts

Technical

collaboration

Today: One Global iNet Team provides more consistent and

efficient service

Results of Globalized Team:

Dramatically improved metrics

2002 2010 2002 2010 2002 2010 2002 2010

93%

98%5.2%4.3%

195145 1/30

1/45

IT cost as % of

gross revenue IT personnel

world-wide

Ratio of IT staff

to employees Customer

satisfaction

2010: Key ONA findings

• iNet ONA results continue to show MWH IT is a good model of how a global organization should operate – and our customers agree

• Silos continue to break down from region to region and especially within each region

• Significant positive changes in the network data occurred indicating that iNet as a whole has a greater sense of iNet‟s purpose

• Nearly all of the expertise and peer groups found ways to overcome geography and collaborate more frequently – cross-regional business units are effective

• iNet‟s internal communication continues to improve with a 27% increase over the last three years

• Understanding of iNet strategy has increased – 45% increase over 2007 survey

• Cross-regional ties have remained strong despite reduced travel budgets – teams are using other collaboration tools

• Energy is obtained from within one‟s own region, although most principle/manager level staff are viewed as energizers

• The most effective information comes from those who are enthusiastic about providing high quality work and are willing to “go that extra mile”

Lessons learned over 8 years

• Yearly tactical network goals are important

• Participation in yearly survey is important

• Use of ONA must be positive

• Metrics gained will substantiate tactics

Today iNet is a tightly integrated, heavily

collaborative, world-wide team

To this…

From this

Tangible Benefits to MWH:

Savings of $30M over eight

years

Less than 1% of savings

invested in the ONA

90+% improvement in

awareness of other staff‟s

capabilities

Increase in Customer

Satisfaction

MWH was an early Leader in

utilizing ONA

• Utilized ONA for MWH

starting in 2003

• MWH successes with

ONA featured in

numerous

publications and at

conferences

Other Resources

• Rob Cross website: http://www.robcross.org/consulting_testimonials.htm

Look under “Case Studies” for MWH – written in 2005

• The Network Roundtable/University of Virginia:

https://webapp.comm.virginia.edu/networkroundtable/

• The Hidden Power of Social Networks: Understanding How Work Really Gets

Done in Organizations by Robert L. Cross & Andrew Parker

• Wall Street Journal article written about MWH‟s use of SNA:

http://online.wsj.com/article/SB123273549517510905.html

• Micki Nelson, MWH CIO – [email protected]

Questions?

Micki Nelson, CIO

[email protected]