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Organizational Connectivity presentationChristian Baldia 1
Organizational ConnectivitySociety of Women Engineers Conference 2009
What is OrganizationalWhat is Organizational Connectivity?
Organizational Connectivity presentationChristian Baldia 2
SENIOR VICE PRESIDENT
Example of a Formal Organizational Chart
Exploration & Production Division of a Large Petroleum Company
PRESIDENTJones
EXPLORATIONSWilliams
G & GCohen
Smith
Hughes
Ramirez
PETROPHYSICALCross
Andrews
DRILLINGTaylor
Sen
Moore
Miller
PRODUCTIONStock
PRODUCTIONO’Brian
Paine
RESERVOIRShapiro
22
Bell
Cole
Hussain
Kelly
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
Connections Revealed by Social Network Analysis
O’Brian
Stock
Cole
Shapiro Paine
Cohen
Smith Hughes
KellyAndrews
Jones
33
Sen
Moore
Miller
Ramirez Bell
HussainCross
Taylor
Williams
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
Organizational Connectivity presentationChristian Baldia 3
Formal Network vs. Informal Network
44 Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
Who Has Used Social Network Analysis?
• IBM
• Lucent Technologiesg
• Hewlett‐Packard
• JP Morgan‐Chase
• Rubbermaid
TRW
55
• TRW
• Steelcase Inc.
• US Government
Organizational Connectivity presentationChristian Baldia 4
Common Business Applications
• Promoting Collaboration & Innovation
/ i i• Process Improvement / Reengineering
• Succession Planning
• Post‐Merger Integration
• Supporting Strategic Partnerships
66
• Supporting Strategic Partnerships
• Developing Communities of Practice
Analyzing Terrorist Networks
77
Organizational Connectivity presentationChristian Baldia 5
Seven Important Informal Networks
1. The Work Network2. The Social Network3. The Innovation Network4. The Expert Knowledge Network5. The Career Guidance Network6 The Learning Network
88
6. The Learning Network7. The Decision‐Making Network
Source: Dr. Karen Stephenson, NetForm
Formal Organizational Chart
99 Source: Dr. Karen Stephenson, NetForm
Organizational Connectivity presentationChristian Baldia 6
The Organizational Chart as a Network
1010 Source: Dr. Karen Stephenson, NetForm
The Work Network
1111 Source: Dr. Karen Stephenson, NetForm
Organizational Connectivity presentationChristian Baldia 7
The “Grapevine” Network
1212 Source: Dr. Karen Stephenson, NetForm
The Career Advice Network
1313 Source: Dr. Karen Stephenson, NetForm
Organizational Connectivity presentationChristian Baldia 8
Comparing the Different Networks
Work Network
“Grapevine” Network Career Advice Network
1414 Source: Dr. Karen Stephenson, NetForm
The Building Block of Social Networks
Formal organization charts are based on authority.
So then, what are social networks built upon?
Access
Awareness
1515
Organizational Connectivity presentationChristian Baldia 9
The Role of Trust in Social Networks
Three types of interpersonal trust play a significant role in a social network:
1. Competence‐based Trust
2. Benevolence‐based Trust
1616
3. Integrity‐based Trust
A Critical Distinction in Measuring Talent
1717
Organizational Connectivity presentationChristian Baldia 10
Analyzing a Social Network
David
ElaineHarry
PaulJane
Karen
Charles Ian
Amy
Fiona Brian Ed
Lynn
Neil
Gayle
Charles
Mike
Carol
Andy
Diane
TinaRay
FrankIan
1818
Val
Beth
Walter
Steve
Location
New York
Boston
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
Follow‐up Interviews Provide More Details
David
ElaineHarry
PaulJane
Karen
Charles Ian
Unsung Hero? Rising Star?
Amy
Fiona Brian Ed
Lynn
Neil
Gayle
Charles
Mike
Carol
Andy
Diane
TinaRay
Franka
Information Bottleneck or Political Player?
1919
Val
Beth
Walter
Steve
Location
New York
Boston
Potential Flight Risk?
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
Organizational Connectivity presentationChristian Baldia 11
Follow‐up Interviews Provide More Details
David
ElaineHarry
PaulJane
Karen
Charles IanUnintended
Amy
Fiona Brian Ed
Lynn
Neil
Gayle
Charles
Mike
Carol
Andy
Diane
TinaRay
FrankIan
Bridge-builder?
Information Bottleneck?
2020
Val
Beth
Walter
Steve
Location
New York
Boston
Office Machiavelli?
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
David
ElaineHarry
PaulJane
Karen
Charles Ian
New Person?
Follow‐up Interviews Provide More Details
Amy
Fiona Brian Ed
Lynn
Neil
Gayle
Charles
Mike
Carol
Andy
Diane
TinaRay
Franka
Stuck on the Periphery: Poor
Intentionally Peripheral: Experts, External Liaisons, Work-Life Balance
Employees
2121
Val
Beth
Walter
Steve
Location
New York
Boston
Periphery: Poor Performer?
Cultural Misfit?
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
…or worse: a management
consultant?!
Organizational Connectivity presentationChristian Baldia 12
Metrics Definition Interpretation
Density % of connected pairs of actors, out of 100% possible
The connection level within a network (in relative terms)
Organizational Connectivity Metrics
Complete Network Analysis
p )
Cohesion Average # of intermediaries on the shortest path between two actors
The speed of information flow within a network
Centrality Average # of relationships per person The connection level within a network (in absolute terms)
Metrics Definition InterpretationRole
Identification
Individual Position Analysis
22
Degree Centrality
# of ties a person has Activity Hubs
Betweenness Centrality
% of shortest paths between pairs of all other actors that a person lies on
Control over information flowGatekeepers/
Knowledge Brokers
Closeness Centrality
Reciprocal of the sum of the shortest distances between a person and all other actors
Autonomy (ability to reach out for information easily); Ability to monitor information flow
Potential
Pulsetakers
David
ElaineHarry
PaulJane
Karen
Charles Ian
Connectivity Analysis by Gender
Amy
Fiona Brian Ed
Lynn
Neil
Gayle
Charles
Mike
Carol
Andy
Diane
TinaRay
Franka
Number of Individuals
Avg. Degree Centrality
2323
Val
Beth
Walter
Steve
Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker
Male
Female
TOTAL
14
12
26
5.29
3.83
4.54
Organizational Connectivity presentationChristian Baldia 13
New R&D Subsidiary of a Major Telecommunications Company
CEO Succession Case Study
2424 Source: Dr. Karen Stephenson, NetForm
The Work Network
New R&D Subsidiary of a Major Telecommunications Company
2525 Source: Dr. Karen Stephenson, NetForm
Organizational Connectivity presentationChristian Baldia 14
The Career Advice Network
2626 Source: Dr. Karen Stephenson, NetForm
The Social Network
2727 Source: Dr. Karen Stephenson, NetForm
Organizational Connectivity presentationChristian Baldia 15
Building Connectivity at the Organizational Level
2929
Mentoring and Leadership Development Programs
Organizational Connectivity presentationChristian Baldia 16
Leveraging Diversity Programs
Asian Americans
Affinity Group Program
Hispanics
GLBTDisabled
Women
30
GLBT
African Americans
Disabled
Building Connectivity for New Employees
31
Organizational Connectivity presentationChristian Baldia 17
S l
Employee Resources Groups Build Connections
FinanceSales
R&D
Production
32
HR
An Organizational Network Approach to Leadership
Organizational Connectivity presentationChristian Baldia 18
Traditional vs. New Conceptions of Leadership
3434
How is Your Organization Choosing its Leaders?
Is it on the basis of just Human Capital?
• The person with the most tenure?• The salesperson who makes the most sales?• The engineer with the most engineering skills?
Or is Social Capital also taken into account?
3535
Organizational Connectivity presentationChristian Baldia 19
The Special Importance of Central Connectors
Research suggests that Central Connectors:
• Learn faster,• Perform better, • Are more committed to their organization,• And are less likely to leave the company
Conversely, employees on the periphery:
• Are less engaged and
3636
• Are less engaged, and• Have much higher turnover rates
Of course, these are true only to a certain point…
The Special Importance of Central Connectors
f C l C h iIf Central Connectors have too many connections:
• they become overburdened,• they risk developing into bottlenecks, • and if they become too overwhelmed, they can
burnout or be misdiagnosed as poor performers
3737
Of course, these are true only to a certain point…
Think of Cole in the first example.
Organizational Connectivity presentationChristian Baldia 20
Distinguishing Weak Ties from Strong Ties
38
The Strength of Weak Ties
16.7%27.8%
9.3%
30.9%
15.5%
Rarely Contacted Personal Connections
Frequently Contacted Personal Connections
39 Source: Getting a Job: A Study of Contacts and Careers, by Mark S. Granovetter (1974)
55.6%Occasionally Contacted Personal Connections
Organizational Connectivity presentationChristian Baldia 21
Simple, Explicit Complex, Tacit
When to Use Weak Ties and When to Use Strong Ties
Low High
High Low
40
Low High
Boundary Spanners and Social Capital
1
3
2
6
James3
4 5
Roberta
7
8
4141 Source: Robert Burt, University of Chicago Graduate School of Business
Research suggests that Boundary Spanners:
• Get promoted faster,• Earn higher compensation, • And perform more successfully on teams
Organizational Connectivity presentationChristian Baldia 22
Cultivating T‐Shaped Management
Butterflies T‐shaped Managers
Laggards Lone Stars
Cross‐CompanyContributions
High
Low
42
Individual Performance
HighLow
Low
Two Important Concepts in Social Networks
43
Organizational Connectivity presentationChristian Baldia 23
Advice for Women, Minorities & Newcomers
When looking at early promotions in t bli h d t k h f destablished networks, researchers found:
• Weak tie strategies were more effective in a sample of 284 managers in a large high technology firm…
• EXCEPT, in the case of women and newly hired managers For them a strong tie
44
hired managers. For them, a strong tie strategy worked best
An Organizational Network Approach to Leading Change
Organizational Connectivity presentationChristian Baldia 24
Technology Adoption Process
Innovators Early Adopters
Early Majority
Late Majority Laggards
Venturesome Respected Deliberate Skeptical Traditional
x̅ x̅ + sdx̅ - sdx̅ - 2sd2.5% 13.5% 34% 34% 16%
Time
Number of Net New
Adopters
46
Time
Source: Diffusion of Ideas by Everett M. Rogers
Summary of Research on Early Adopter Attributes
S i i Ch i i l dSocioeconomic Characteristics: Early Adopters…
• are no different from Late Adopters in age• have more years of formal education• have a higher degree of upward social mobility• oversee larger‐sized units (companies, farms, schools nonprofits etc)
47
schools, nonprofits, etc)
Source: Diffusion of Ideas by Everett M. Rogers
Organizational Connectivity presentationChristian Baldia 25
Summary of Research on Early Adopter Attributes
Personality Characteristics: Early Adopters…y y p
• have greater empathy• are less dogmatic• have a greater ability to deal with abstractions• have greater rationality and intelligence• have a more favorable attitude toward change
48
• can cope better with uncertainty and risk• have a more favorable attitude toward science• are less fatalistic• have higher aspirations for themselves
Source: Diffusion of Ideas by Everett M. Rogers
Summary of Research on Early Adopter Attributes
Communication Behavior: Early Adopters…y p
• have more social participation• are more highly connected through interpersonal connections in their social system
• are more cosmopolite• have more contact with change agents
49
• are more exposed to mass media communication• have greater knowledge of innovations and seek information about them more actively
• have a higher degree of opinion leadership
Source: Diffusion of Ideas by Everett M. Rogers
Organizational Connectivity presentationChristian Baldia 26
Technology Adoption Process
Diffusion of a New Weed Spray in an Iowa Farm Neighborhood
Innovators Early Adopters
Early Majority
Late Majority Laggards
Venturesome Respected Deliberate Skeptical Traditional
1948 1950 1951-52 1953-54 1955-56
Time
Number of Net New
Adopters
50
Time
Source: Diffusion of Ideas by Everett M. Rogers
Diffusion of a New Weed Spray in an Iowa Farm Neighborhood
19481950195119521953195419551956
51 Source: Diffusion of Ideas by Everett M. Rogers
Organizational Connectivity presentationChristian Baldia 27
Sample Output from an Actual Client Engagement
Director
Business Solutions Center
Preferred Client Services
Project Manager & Technical Advisor Sales Support Quality Control
Traditional Organization Chart of Our Client
Solutions Center
Team Leader
Online Support
BSC Agent
Online Support
BSC Agent
BSC
Team Leader
Online Support
BSC Agent
Online Support
BSC Agent
BSC
Team Leader
Online Support
Online Support
BSC Agent
BSC Agent
BSC
Services
Analyst
Analyst
Analyst
Analyst
Technical Advisor
Team Leader
Telesales Analyst
Sales Analyst
Sales Analyst
Sales Analyst
Sales
Team Leader
Sales Analyst
Sales Analyst
Sales Analyst
Sales Analyst
Service Admin.
Analyst
Analyst
Analyst
Customer Service
Customer Service
Customer Service
5353
BSC Agent
BSC Agent
Online Support
BSC Agent
BSC Agent
BSC Agent
BSC Agent
BSC Agent
BSC Agent
Online Support
Sales Analyst
Sales Analyst
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 28
Our Client’s Hierarchy as a Network
Quality Control
5454
Sales Support Preferred Client Services Business Solutions Center
Source: Virtcom Consulting
The Work Network with Lines of Authority
Quality Control
Responses Shown:
4 = 1 to 3 times a week
5 D il / Al t d il5 = Daily / Almost daily
5555
Sales Support Preferred Client Services Business Solutions Center
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 29
The Expert Knowledge Network
Quality Control
Responses Shown:
4 = Often
5 V Oft5 = Very Often
5656
Sales Support Preferred Client Services Business Solutions Center
Source: Virtcom Consulting
Expertise Network – The Top Experts
Top 20 Internal Experts Hierarchy Level Location
Indegree
Centrality1
Business Online Banking / IRIS
Enrollm
ent Engine
Onsite Check Deposit
Policies & Procedures (Business
Solutions Center)
Procedures (non‐Business
Solutions Center)
System
s Navigation
(Fiserve, etc.)
Cash Managem
ent / General
Product Know
ledge
E‐statem
ents / Alerts (Vendor‐
supported services)
Healthcare Savings Accounts
Individual
Score Totals Write‐in Expertise Categories
Michael O. Manager Providence 36 30 16 25 27 21 15 23 15 16 188
Roger B. Manager Providence 32 26 17 26 26 23 22 25 15 4 184 Excel, forms, eforms
Matthew B. Team Leader Providence 29 27 22 27 25 21 19 22 18 5 186
Mary O. Team Leader Providence 28 31 23 20 30 23 21 22 20 3 193
Brian D. Manager Providence 27 20 22 9 33 24 15 21 17 2 163
Michael A. Team Leader Providence 25 22 18 22 23 15 17 14 14 1 146 Customer questions
Deb M. Manager Boston 18 6 2 6 7 14 5 20 5 1 66 Unusual customer issues, when team leader is unavailable
Andrea B. Team Member Boston 17 8 2 4 2 7 1 20 2 0 46 Sales, setups
Carlos S. Team Member Providence 15 19 12 11 13 8 10 4 7 2 86
David V. Director Providence 15 3 2 3 18 14 2 14 3 2 61 Managerial advice
Deb P. Manager Boston 15 1 0 0 5 9 4 12 1 0 32 Lockbox (x5)
Jim D. Team Leader Boston 14 10 2 8 7 10 6 19 3 1 66 Sales
Lucy V. Team Member Providence 13 13 3 12 6 7 5 10 5 10 71
Kevin H. Team Member Boston 13 0 0 0 0 4 3 9 1 0 17 Lockbox (x5), Lockbox implementation, Lockbox setup (x2)
Lori A. Team Member Providence 12 20 9 11 14 6 8 5 7 1 81
Holly A. Team Member Providence 12 12 2 12 5 7 5 9 4 11 67
Kim H. Team Leader Boston 12 10 2 8 6 10 8 14 6 1 65
Jo‐Ann H. Team Leader Boston 12 2 1 2 5 11 4 10 1 0 36
Kathleen G. Team Member Providence 11 23 9 6 2 3 0 0 0 0 43
La'fayette W. Team Member Providence 10 20 14 7 2 1 0 0 0 0 44
Totals for Each Category of Expertise 303 178 219 256 238 170 273 144 60
nking / IRIS
sit es (Business
nter)
usiness
er)
/ General
edge
ts (Vendor‐
vices)
Accounts
5757
Top 10 External Experts Services/Products Supported
Indegree
Centrality1
Business Online Ban
Enrollm
ent Engine
Onsite Check Deposi
Policies & Procedure
Solutions Cen
Procedures (non‐Bus
Solutions Center
System
s Navigation
(Fiserve, etc.)
Cash Managem
ent /
Product Knowle
E‐statem
ents / Alert
supported serv
Healthcare Savings A
Individual
Score Totals Write‐in Expertise Categories
ACHWendy S. 32 0 0 0 6 13 0 10 0 0 29 ACH (x2); ACH stops, disputes & problems
Joyce B. Adjustments 17 0 0 0 5 10 1 6 0 0 22 Adjustment issues (x4)
Danielle T. 14 0 0 0 3 7 0 6 1 0 17 Wire
Melodie L. 13 0 0 0 3 8 0 6 1 0 18 Wire, international wire issues
Cheryl K. 13 0 0 0 3 3 0 6 0 0 12 ACH (x2); ACH stops, disputes
Paola O. Onsite check deposit 10 0 0 13 1 4 3 6 0 0 27
Nancy R. DDA, Escrow/IOLTA 8 0 0 0 3 5 0 12 0 0 20 Sweeps, IOLTA
Greg G. Acct recon, Positive pay, … 6 0 0 0 3 4 1 8 1 0 17 Positive pay
Michelle F. IRIS R&P, eStatements 5 8 0 1 0 2 2 8 5 0 26
Cindy F. ACH, Wire, Tax cache, Sweeps 5 1 0 0 1 3 0 9 1 0 15 Sweeps
ACH
Wire
Wire
ACH
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 30
The Career Advice Network
Quality Control
Responses Shown:
3 = Sometimes
4 = Often
5 = Very Often
Cornell
5858
Sales Support Preferred Client Services Business Solutions Center
Source: Virtcom Consulting
Quality Control
Excludes Team Leaders, Managers and Director
What‐If Analysis – Non‐Managers Only
5959
Sales Support Preferred Client Services Business Solutions Center
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 31
Work Network – Intergroup Interactions
Collaboration Sources
BSC PCSTechnical Advisor
Sales Support
Quality Control
ExternalGroups
BSC 33.3% 27.2% 84% 5.4% 0% 13.6%
PCS 13.6% 100% 100% 20% 15% 26.7%
Technical Advisor
16% 100% - 5.9% 0% 33.3%
Sales Support 0.9% 28.2% 35.3% 39% 51.5% 16.1%
olla
bo
rati
on
See
kers
6060
Quality Control 0% 0% 0% 0% 41.7% 0%Co
Source: Virtcom Consulting
Work Network – 10 Most Central People
Management
Rank Name Indegree Outdegree
1 Roger B. 34 43
Team Members
Rank Name Indegree Outdegree
1 Andrea B. 28 32
2 Michael O. 32 42
3 Mary O. 29 29
3 Matthew B. 29 29
5 Michael A. 28 44
6 Brian D. 26 38
7 Deb M. 16 34
8 Deb P. 15 N/A
2 Lori A. 20 24
3 Carlos S. 19 20
4 Lucy V. 16 37
5 La’Fayette W. 15 35
6 Michael S. 14 30
6 Kevin H. 14 N/A
6 Holly A. 14 44
6161
8 Jo-Ann H. 15 25
10 Jim D. 12 33
AVERAGE: 23.6 35.2
9 Marc K. 11 24
9 Kathleen G. 11 28
AVERAGE: 16.2 30.4
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 32
Director
Business Solutions Center
Preferred Client Services
Project Manager & Technical Advisor
Sales Support Quality Control
Diversity Analysis of the Organization
Team Leader
Online Support
BSC Agent
Online Support
BSC Agent
BSC
Team Leader
Online Support
BSC Agent
Online Support
BSC Agent
BSC
Team Leader
Online Support
Online Support
BSC Agent
BSC Agent
BSC
PCS
PCS
PCSPCS
PCS
Team Leader
Telesales Analyst
Sales Analyst
Sales Analyst
Sales Analyst
Sales
Team Leader
Sales Analyst
Sales Analyst
Sales Analyst
Sales Analyst
Service Admin.
Columbia Park
Columbia Park
Columbia Park
Lockbox Implementation
Customer Service
Customer Service
6262
BSC Agent
Online Support
BSC Agent
BSC Agent
BSC Agent
BSC Agent
BSC Agent
BSC Agent
Online Support
Sales Analyst
Sales Analyst Caucasian (Non-Hispanic)
Asian/Pacific American
Hispanic/Latino AmericanAfrican American
Source: Virtcom Consulting
Diversity Analysis of the Organization
Gender All Offices Providence Boston
Male 21 40.4% 13 25.0% 9 17.3%
Female 31 59.6% 18 34.6% 12 23.1%
Total 52 100.0% 31 59.6 21 40.4%
Ethnicity All Offices Providence Boston
Caucasian 38 73.1% 23 44.2% 17 32.7%
Hispanic/Latino 7 13.5% 5 9.6% 1 1.9%
6363
African American 5 9.6% 3 5.8% 2 3.8%
Asian Pacific American
2 3.8% 1 1.9% 1 1.9%
Other 0 0.0% 0 0.0% 0 0.0%
Total 52 100.0% 32 61.5% 21 40.4%
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 33
Diversity Analysis of the Work Network
Caucasian (Non-Hispanic)
6464
Caucasian (Non-Hispanic)
Asian/Pacific American
Hispanic/Latino AmericanAfrican American
Female
Source: Virtcom Consulting
Diversity Analysis of the Career Advice Network
Caucasian (Non-Hispanic)
6565
Caucasian (Non-Hispanic)
Asian/Pacific American
Hispanic/Latino AmericanAfrican American
Female
Source: Virtcom Consulting
Organizational Connectivity presentationChristian Baldia 34
The Power of Human Connectivity UnleashedUnleashed
66
Christian M. Baldia
[email protected](917) 432-8140