Social Networks and Organisational Performance

www.optimice.com.au 1

Social Networks

and Organisation

al PerformanceCai Kjaer

Optimicewww.optimice.com.au

http://www.optimice.com.au/




If you want to lay blame…

If you want to get work done…

The formal vs informal organisation





Kotter’s Dual Operating System

Sources:• Kotter, John P. "Accelerate! How the most innovative companies capitalize on today’s rapid-fire strategic challenges—and still

make their numbers." Harvard Business Review Reprint R1211B (2012).• Graphics from http://www.kotterinternational.com/our-principles/accelerate















When diffusion starts with opinion leaders, the diffusion occurs more rapidly.

When diffusion starts with randomly selected people, or those on the margins, it is slower.Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010.





How fast can we change?

Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010.





•Reward A for getting B fit!

• Social network incentive scheme worked almost four times more efficiently than a traditional individual-incentive market approach

• Predictive model: – The number of direct interactions

that targets had with their buddies was an excellent predictor of how much their behaviour would change AND maintain new practices

– Exposure to a behaviour of peers predicts ‘idea flow’ (ie new practices)

Peer pressure – Get Fit





Networks and employee performance

“A person who has contacts in multiple groups, (…) can be an advantage in terms of breadth of knowledge, early knowledge, and opportunities or strategically coordinating across groups.”

Ron Burt, Brokerage & Closure – An Introduction to Social Capital.





Team of ‘A-players’ not equal to success





Social Learning and Performance• Pentland analysed 10m transactions made by 1.6m users on eToro - a social investment trading platform.–eToro tagline “Connect with other trader &

investors and copy their moves”

• Results published in HBR (Nov 2013):– Investors who paid attention to the trading

strategies of a wide group of people (without following the herd) achieved the highest returns:• Operating alone – suboptimal• Operating as a herd – suboptimal• Diverse connections - optimal

Pentland, Alex Sandy. "Beyond the echo chamber." Harvard Business Review 91.11 (2013): 80-+.





Social Learning and Performance









Top down vs local decision-making

460 cars

385 cars

289 cars 60%

improvement

25%drop





Analysing Yammer Networks




http://www.optimice.com.au/demomap.php


Collaborating Sideways in Yammer





Networks and Career Growth





The Interaction Balance

By me:• Posts• Replies• Likes• Mentions

• Notifies

To me:• Posts• Replies• Likes• Mentions

• Notifies





Takeaway & Questions

Cai KjaerEmail: [email protected]

www.optimice.com.au

• Networks are critical for innovation and organisational performance

• You can see the connections• You can analyse and

measure them• Predict what will happen



