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~~Slides from May 17, 2012 presentation at the North East HR Association conference~~ How often have you realized, only after an employee has left the company, how critical he or she actually was to the business? Have you ever found your company in dire straits because key positions have been empty for too long? Or have you hired a promising new executive only to see that person fail after just a short time on the job? If so, you’re not alone. Sixty-four percent of new executives hired from the outside fail at their jobs, according to HR Review. And companies regularly fail to recognize the value of individuals or roles until they’re gone. Succession planning helps improve the situation. But the data most companies use to make decisions about development and succession is incomplete. The missing piece is the organization’s networks. Networks show the hidden relationships within organizations and identify deeply trusted employees, subject matter experts, innovation leaders, effective implementers, and problem solvers. They show who is deeply trusted, who people go to for leadership, and who might shine on their performance reviews but can’t work well with others. Knowledge of the information embedded in networks can help leaders identify high potentials more effectively, make better decisions about succession, and craft more accurate and effective development plans. More: http://partneringresources.com/organizational-networks-and-talent/
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Stacking the Deck: Using Hidden Networks to Identify
and Develop High Potentials
Presented By:Maya Townsend & Keli Trejo
Partnering Resources
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The Point
HR leaders can achieve more trustworthy,
complete, and nuanced information about high potentials
by using the organization’s hidden
networks.
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Learning Objectives
• Why and how employees develop networks of relationships to
help get work done
• The types of networks that typically form in organizations and
the 3 critical roles in networks
• How the 3 critical roles can help HR professionals identify and
develop more effective and accurate succession and
development programs
• Case studies of how companies have used network analysis to
develop the workforce
• Plans for applying network knowledge to current and upcoming
human capital development and succession planning efforts
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Maya Townsend, Founder & Lead Consultant• Specializes in using network knowledge to help organizations with
large scale change
• Rich experience in organization change, collaboration, and talent
assessment
• Author: Chief Learning Officer, Talent Management, CIO.Com, Mass
High Tech, et al.
• Presenter: NEHRA, PMI, Gartner, et al.
• Chocolate fanatic
Keli Trejo, Lead Consultant• 20+ years HR experience, including OD, Executive Coaching,
Business Partner, HR Leadership roles
• Significant change management roles through multi-year HR
transformations
• Deep experience with leadership development and succession
management
• Strong, collaborative client and HR partner relationships
• Artist
We help organizations address complex collaboration and change challenges
About Us
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ABOUT NETWORKS
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Networks are the webs of trusted relationships that people forge in order to perform work:Routine Work Socializing Sharing Expertise Innovating Improving
Making Ad Hoc Decisions Mentoring
Image: NetForm International. Used with permission.
What is a Network?
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Networks versus Social NetworksSocial network tools help us develop and maintain networks But the goal is the network
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WHY ARE NETWORKS IMPORTANT?
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Companies like Org Charts…
Jane is at the individual contributor level on the org chart
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But There’s More to the Story
Jane
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It’s Not Just the
Grapevine
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It’s Way More
Decision-Making
InnovationExpertise
Improvement
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CASE STUDY:SUCCESSION PLANNING
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The R&D Organization
Case: Netform, Inc. Used with permission.
JerryJerry, CEO of the R&D
organization, is ready to retire. Here’s the top three levels of his organization (lower levels
hidden for simplicity).
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The R&D Work Network
Diane is a key player in the work network;
she has 9 connections
Case: © 2007 Netform, Inc. Used with permission.
Jerry
Diane
To help him decide on a successor, he asks for a
network analysis. This map shows how people connect in
order to get routine work done. The thicker lines are stronger
connections.
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The R&D Social Network
Joe and the CEO have a strong social relationship
Case: Netform, Inc. Used with permission.
Diane has only four connections, none of
which are with the CEO
Jerry
DianeJoe
This map shows how people connect socially.
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Your Turn
Who should Jerry appoint as his successor? Why?
Who do you think Jerry did appoint as his successor? Why?
Howdy, neighbor!
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The Recommendation
Joe would not be a good candidate for succession since he is not well integrated into
the work network and is overly dependent on the CEO.
Based on his strong personal trust for Joe, the CEO chose Joe as his successor.
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The Promotion
Joe became the new CEO
Case: Netform, Inc. Used with permission.
Diane, frustrated at being passed over,
left the company.
Diane
Joe
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The Defection
Without Diane, the organization fractured and
became deeply disconnected
Case: Netform, Inc. Used with permission.
Joe
After 6 disastrous months, Joe was fired.
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The Aftermath
Stan stepped in as the new CEO
Case: Netform, Inc. Used with permission.
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HUMAN CAPITAL ASSESSMENT
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Quick Case: Who’s the High Performer?
Here’s who the executives
thought were the top 30
influencers in a Fortune 500
global information company.
Here are the actual top 30 influencers as shown by the network analysis.
Only 5 people show up on both lists.
Why the gap? The initial top 30 list
represents only the executives’ direct contacts and the next level down.
They had no insight into the rest of the
organization.
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Quick Case: Critical Connector Lost
• Technology organization• $75M operating budget• Annual trade show was a
major revenue generation vehicle
• The company let go of a low-level administrator citing the need to reduce overhead.
• They realized afterwards that
she was single-handedly
responsible for securing
millions of dollars each year
for the trade show.
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Quick Case: Critical Connectors Saved
• Situation: Merger of two container
plants required decisions about
staff retention and outsourcing
• Results: Leaders identified and
retained people previously on the
layoff list:► Two employees who provided a
steady source of innovation that
were previously slated for retirement
► The group of employees that were
responsible for helping a star
achieve
From Stephenson (2008): “Building a Culture of Trust” and Stephenson (2005): “Trafficking in Trust.”
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The Critical Connectors
• Identified by Dr. Karen Stephenson
• Exist in all networks• Critical Connectors
comprise only 5% of the network and are disproportionately responsible for it’s success
• Three Critical Connectors
Image: © 2005 NetForm, Inc. Used with permission.
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What HR Gets from a Network Analysis
HR can use these lists for…Creating mentoring pairs Seeding mission-critical teams Finding succession
candidates Accelerating change initiatives
A Nuanced “Go To” List for Talent
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HUMAN CAPITAL DEVELOPMENT
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Development & Networks
• Critical connectors have specific attributes that help them develop others more successfully
► We can use critical connectors to help accelerate on-boarding, leader integration, team development, and so on
• High performers use networks in specific ways that help them be successful
► The top 20% of employees are more likely to build and maintain personal networks
Adapted from Cross, Thomas, & Light, How Top Talent Uses Networks and Where Rising Stars Get Trapped and The Organizational Network Fieldbook, by Cross, Singer, Colella, Thomas, & Silverstone.
3131
Network Practices of High Performers
Managing the Center• Preventing overload
• Freeing up SMEs and high potentials to help others
Minimizing Insularity• Building relationships outside
my expertise, position, function
• Collaborating
Developing Awareness of Expertise• Learning how to access information,
expertise, resources, and decision approval
• Ensuring others know how to access information, etc.
Bridging Silos• Brokering connections
• Ensuring collaboration
Leveraging the Periphery• Integrating newcomers rapidly
• Ensuring access
Adapted from “Improving Leadership Effectiveness Through Personal Network Analysis and Development,” by Cross in The Organizational Network Fieldbook.
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Your Turn: Mini Network Assessment
• Which practices do leaders use most effectively in your organization? Please share success stories!
• Which practices do leaders need to improve? Why?
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Network Knowledge & High Performance
• 36 - 42% more likely to exceed expectations
• 43 – 72% more likely to be promoted
• 42 – 74% more likely to stay with the company
"Far Exceeds" Expectations
Promoted to Higher Rank
Left Company
41%
34%
5%
30%
24%
12%15%
11% 11%
BLP Graduates Control Group Others in Top 5 Job Ranks
From Burt & Ronchi, “Teaching Executives to See Social Capital: Results from a Field Experiment.”
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WHAT YOU CAN DO
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What You Can Do
1. Map your networks
2. Analyze the data
3. Engage, grow, and leverage critical connectors
4. Evolve the networks
Stacking the DeckUsing Hidden Networks to Identify and Develop High Performers
Maya Townsend & Keli Trejo
Web: partneringresources.com
Blog: partneringresources.com/blog
Twitter: mayapare
Email: [email protected] / [email protected]
Phone: 617.395.8396 / 508.212.2268
