Avillion Hotel Sydney 12 February 2007 Chris Fletcher—Director, Knowledge Management Asia Pacific region Deloitte Consulting Encouraging Knowledge Sharing in Professional Services conference 2007 Organisational Network Analysis

The World is Flat! Globalisation 1.0: circa 1492 - 1800 Globalisation 2.0: circa 1800 - 2000 Globalisation 3.0: circa 2000 to today Source: The World is Flat – A Short History of the 21 st Century: Thomas L. Friedman Columbus opened up trade between old and new world Key agents fo change were how much muscle, horse power, wind power, steam power etc each country had and how creatively it was deployed Nation states and muscle shrank the world from size large to size medium 1800 – 1900: global integration driven by falling transport costs due to steam engine and railroad 1900 – 2000: Falling telecom costs due to diffusion of telegraph, telephone, PC, fiberoptics and early www led global integration Era saw the birth & maturation of the global economy – movement of goods and information across continents created global markets and arbitrage in products and labour Key agents of change were multinational companies – going global for markets and labour World shrank from size medium to size small Forces in G1 were countries globalising, in G2 companies globalising, in G3 the dynamic forces in play are unique – the power of the individual to collaborate and compete globally A “flat world platform” is enabling, empowering and enjoining individuals and small groups to go global easily and seamlessly The “flat world platform” is a product of the convergence of the PC, with fiberoptics and the rise of workflow software more individuals from diverse (and non-western) nations are empowered and competitive World has shrunk from size small to size tiny with a flattened playing field

Globalisation 1.0: circa 1492 - 1800 Globalisation 2.0: circa 1800 - 2000

Globalisation 3.0: circa 2000 to today

Columbus opened up trade between old and new world

Key agents fo change were how much muscle, horse power, wind power, steam power etc each country had and how creatively it was deployed

Nation states and muscle shrank the world from size large to size medium

1800 – 1900: global integration driven by falling transport costs due to steam engine and railroad

1900 – 2000: Falling telecom costs due to diffusion of telegraph, telephone, PC, fiberoptics and early www led global integration

Era saw the birth & maturation of the global economy – movement of goods and information across continents created global markets and arbitrage in products and labour

Key agents of change were multinational companies – going global for markets and labour

World shrank from size medium to size small

Forces in G1 were countries globalising, in G2 companies globalising, in G3 the dynamic forces in play are unique – the power of the individual to collaborate and compete globally

A “flat world platform” is enabling, empowering and enjoining individuals and small groups to go global easily and seamlessly

The “flat world platform” is a product of the convergence of the PC, with fiberoptics and the rise of workflow software

more individuals from diverse (and non-western) nations are empowered and competitive

World has shrunk from size small to size tiny with a flattened playing field

“ The new currency won’t be intellectual capital. It will be social capital – the collective value of whom we know and what we’ll do for each other.” — James Kouzes, co-author of The Leadership Challenge Business Week – February 2006

Social Capital and KM So what is Social Capital? “ In sum, it is the value people produce when they work together to achieve mutual goals. It emerges when people build trust, a shared understanding, and a willingness to cooperate in ways that produce something greater than the sum of their parts” Robin Athey – Its 2008: Do You Know Where Your Talent Is? Connecting People for Performance So what does this mean for KM?

The impact of Social Capital on KM A change in the KM model……… Connecting the right people just-in-time, canvassing them to gain their knowledge and advice in the context of a particular business problem or pursuit, synthesizing that knowledge and applying it to the issues at hand Newer thinking: Context & Connection The acquisition, organisation & aggregation, storage and dissemination of content under organisation wide taxonomies using customised tools and repositories, just in case it might be reusable Older thinking: Content & Collection

Six Degrees of Separation……

Organisational Network Analysis (ONA) is a tool for: uncovering the “hidden” network – how work REALLY gets done in organisations understanding the interactions between people identifying and accelerating knowledge and information flows improving the efficiency and effectiveness of knowledge flows and networking Source, Rob Cross, The Hidden Power of Social Networks Source: The Hidden Power of Social Networks – Rob Cross / Andrew Parker

Organisational Network Analysis (ONA) is a tool for:

uncovering the “hidden” network – how work REALLY gets done in organisations

understanding the interactions between people

identifying and accelerating knowledge and information flows

improving the efficiency and effectiveness of knowledge flows and networking

Why use ONA? Is a diagnostic tool – will provide an analysis of the “State of Play” today. Real benefits of the analysis are apparent in the interventions that take place as a result of the insights learnt Visual nature of network maps / supporting quantitative analysis facilitate easy identification of issues and facilitation of network building activities Network analysis facilitates conversations about the business often revealing otherwise hidden insights

Why use ONA?

Is a diagnostic tool – will provide an analysis of the “State of Play” today.

Real benefits of the analysis are apparent in the interventions that take place as a result of the insights learnt

Visual nature of network maps / supporting quantitative analysis facilitate easy identification of issues and facilitation of network building activities

Network analysis facilitates conversations about the business often revealing otherwise hidden insights

What can ONA be used for? The war for talent is now top of mind with executives. ONA can assist in understanding the loss of relationships / social capital when key people leave the organisation, as well as the value and effectiveness of talent in the organisation Talent Management Efficiency of supply chains will often depend upon the flow of information and intermediary relationships. ONA can allow assessment of these networks, provide cost benefit analysis and model $ value of network changes Supply Chain Alliances and strategic partnerships are becoming more common as a way to utilise cross-organisational initiatives. ONA can highlight effectiveness of these initiatives through information flows, knowledge transfer and decision making Strategic Partnerships Successful change on a large scale fundamentally revolves around network integration. ONA can be used before a change initiative to identify key people and it can be implemented 6 – 9 months later to assess if there are significant issues leadership needs to address. Facilitating large scale change or merger integration Successful innovation is the result of a collaborative effort. ONA can assist in understanding the degree to which a team is integrating expertise and utilising skills of others in the organisation Driving Innovation A better understanding of relationships and interactions can assist management in focussing their relationship development, leverage opportunities and embrace knowledge sharing activities Executives can utilise ONA to understand the extent to which business unit interactions are: - aligned with strategic direction - generating measurable value for the business - enabling better working relationships - facilitating information sharing and expertise Organisational Performance - Client Networks - Business Unit efficiency and effectiveness

Key factors for success Support by leadership 80% participation rate Transparency of results Commitment to act upon the results Making assumptions is dangerous Do not underestimate the importance of communications Follow-up survey in 6 – 9 months time

Key factors for success

Support by leadership

80% participation rate

Transparency of results

Commitment to act upon the results

Making assumptions is dangerous

Do not underestimate the importance of communications

Follow-up survey in 6 – 9 months time

Two types of people in networks….. Bonders Bridgers Becoming “us” affinity efficiency trust support community Brokering between “them” access resources innovation impact profit Source: Bruce Hoppe – Connective Associates

Two types of people in networks…..

Becoming “us”

affinity

efficiency

trust

support

community

Brokering between “them”

access

resources

innovation

impact

profit

What outcomes can be expected? Visual representations of the network as it is today based upon nominated attributes Identification of key networks, brokers, and central practitioners Analytics to assess interactions between network groups Program of activities to support desired network changes

What outcomes can be expected?

Visual representations of the network as it is today based upon nominated attributes

Identification of key networks, brokers, and central practitioners

Analytics to assess interactions between network groups

Program of activities to support desired network changes

Business Case Hypothesis Question formulation Survey Delivery Results Analysis Presentation Getting from “So what” to Action” What is the process for undertaking ONA?

Business Case Why do you want to undertake an Organisational Network Analysis? It could address: team building communications and connections across groups identifying key connectors in an organisation identifying key decision makers in leadership teams facilitating efficiency in strategic alliances / partnerships facilitation successful mergers and acquisitions understanding network interaction in Communities of Practice identifying expertise networks facilitating innovation programs managing latent talent or knowledge issues What is the process for undertaking ONA?

Why do you want to undertake an Organisational Network Analysis? It could address:

team building

communications and connections across groups

identifying key connectors in an organisation

identifying key decision makers in leadership teams

facilitating efficiency in strategic alliances / partnerships

facilitation successful mergers and acquisitions

understanding network interaction in Communities of Practice

identifying expertise networks

facilitating innovation programs

managing latent talent or knowledge issues

What is it that you want to know? what does leadership want to find out? what specific issues are top of mind with management? do you have a specific issue / problem that you want to prove/disprove? do you need to focus on individuals, teams, divisions, other organisations? can you answer this hypothesis through ONA? Development of a robust hypothesis is crucial to the success on an ONA Hypothesis What is the process for undertaking ONA?

What is it that you want to know?

what does leadership want to find out?

what specific issues are top of mind with management?

do you have a specific issue / problem that you want to prove/disprove?

do you need to focus on individuals, teams, divisions, other organisations?

can you answer this hypothesis through ONA?

Development of a robust hypothesis is crucial to the success on an ONA

What questions will allow you to prove/disprove your hypothesis? questions need to be framed around the issue being addressed how many topics will be covered in the questions? how many questions will you ask? what survey vehicle will be used – spreadsheet, internet survey, hard copy etc have questions been validated Testing the questions on a representative group is a good idea! Question Formulation What is the process for undertaking ONA?

What questions will allow you to prove/disprove your hypothesis?

questions need to be framed around the issue being addressed

how many topics will be covered in the questions?

how many questions will you ask?

what survey vehicle will be used – spreadsheet, internet survey, hard copy etc

have questions been validated

Testing the questions on a representative group is a good idea!

Sample Survey

Sample Network Questions Communication: How often do you talk with the following people regarding <topic x>? How much do you typically communicate with each person relative to others in the group? Information How frequently have you acquired information necessary to do your work from this person in the past three months? Please indicate the extent to which each person provides you with information you use to accomplish your work. From whom do you typically seek work-related information? To whom do you typically give work-related information? Problem solving Whom do you typically turn to for help in thinking through a new or challenging problem at work? How effective is each person in helping you to think through new or challenging problems at work? Innovation Whom are you likely to turn to in order to discuss a new or innovative idea? Knowledge awareness I understand this person's knowledge and skills. This does not necessarily mean that I have these skills or am knowledgeable in these domains but that I understand what skills this person has and domains they are knowledgeable in. Access When I need information or advice, this person is generally accessible to me within a sufficient amount of time to help me solve my problem. Engagement If I ask this person for help, I can feel confident that he or she will actively engage in problem solving with me. Safety Please indicate the extent to which you feel personally comfortable asking this person for information or advice on work-related topics. Source: The Hidden Power of Social Networks – Rob Cross / Andrew Parker

Communication:

How often do you talk with the following people regarding <topic x>?

How much do you typically communicate with each person relative to others in the group?

Information

How frequently have you acquired information necessary to do your work from this person in the past three months?

Please indicate the extent to which each person provides you with information you use to accomplish your work.

From whom do you typically seek work-related information?

To whom do you typically give work-related information?

Problem solving

Whom do you typically turn to for help in thinking through a new or challenging problem at work?

How effective is each person in helping you to think through new or challenging problems at work?

Innovation

Whom are you likely to turn to in order to discuss a new or innovative idea?

Knowledge awareness

I understand this person's knowledge and skills. This does not necessarily mean that I have these skills or am knowledgeable in these domains but that I understand what skills this person has and domains they are knowledgeable in.

Access

When I need information or advice, this person is generally accessible to me within a sufficient amount of time to help me solve my problem.

Engagement

If I ask this person for help, I can feel confident that he or she will actively engage in problem solving with me.

Safety

Please indicate the extent to which you feel personally comfortable asking this person for information or advice on work-related topics.

How will the survey be distributed to target audience? what form will the survey take? will it be distributed by email, internet or snail mail? what will the follow-up procedure be? who will champion the ONA programme – will they facilitate the introduction of the survey? will this be the first people will here of ONA – is there a need to introduce and allay any fears that will dilute the response rate? Survey delivery What is the process for undertaking ONA?

How will the survey be distributed to target audience?

what form will the survey take?

will it be distributed by email, internet or snail mail?

what will the follow-up procedure be?

who will champion the ONA programme – will they facilitate the introduction of the survey?

will this be the first people will here of ONA – is there a need to introduce and allay any fears that will dilute the response rate?

OK – you have your results – an 80% response rate – what now? need to have decided what analysis program you are going to use i.e. UCINET, InFlow etc understand that the analysis is more than pictorial – an understanding of network analytics is required do not make assumptions in interpreting the data you find – work with the organisation to ensure that conclusions can be validated use the attribute data you have – consider the impact of different network characteristics Results Analysis What is the process for undertaking ONA?

OK – you have your results – an 80% response rate – what now?

need to have decided what analysis program you are going to use i.e. UCINET, InFlow etc

understand that the analysis is more than pictorial – an understanding of network analytics is required

do not make assumptions in interpreting the data you find – work with the organisation to ensure that conclusions can be validated

use the attribute data you have – consider the impact of different network characteristics

Sydney Melbourne Brisbane Perth Cross-city density Density = 12.9% Distance = 2.44 Centrality = 29.1% Please indicate the extent the listed people provide you with information you use to accomplish you job 41.9% 1.1% 3.5% 2.1% Perth 1.1% 44.6% 1.6% 2.6% Bris 3.5% 1.3% 42.7% 3.9% Mel 1.4% 3.3% 3.3% 44.9% Syd Perth Bris Mel Syd

Sydney Melbourne Brisbane Perth Please indicate the extent the listed people provide you with information you use to accomplish you job Centrality Cross-city density Density = 12.9% Distance = 2.44 Centrality = 29.1% 41.9% 1.1% 3.5% 2.1% Perth 1.1% 44.6% 1.6% 2.6% Bris 3.5% 1.3% 42.7% 3.9% Mel 1.4% 3.3% 3.3% 44.9% Syd Perth Bris Mel Syd

Sydney Melbourne Brisbane Perth Please indicate the extent the listed people provide you with information you use to accomplish you job Betweeness Cross-city density Density = 12.9% Distance = 2.44 Centrality = 29.1% 41.9% 1.1% 3.5% 2.1% Perth 1.1% 44.6% 1.6% 2.6% Bris 3.5% 1.3% 42.7% 3.9% Mel 1.4% 3.3% 3.3% 44.9% Syd Perth Bris Mel Syd

Scenario or “what if” analysis

Scenario or “what if” analysis

Each question will provide different patterns Rate your understanding of each person’s areas of expertise Who would you typically turn to for assistance in thinking through a complex business problem

Having undertaken your analysis of the results – what now? do not make assumptions: validate & follow-up key conclusions with project sponsor, especially if you are not part of company culture conduct some follow-up interviews with identified individuals. Anecdotes can provide insight and direction for further investigation look to develop follow-on programs to bring participants into the process for developing interventions ensure that any conclusions drawn address the hypothesis do not use “jargon” in reports and ensure a base level of understanding of networks before presenting findings Getting from “So what” to action What is the process for undertaking ONA?

Having undertaken your analysis of the results – what now?

do not make assumptions: validate & follow-up key conclusions with project sponsor, especially if you are not part of company culture

conduct some follow-up interviews with identified individuals. Anecdotes can provide insight and direction for further investigation

look to develop follow-on programs to bring participants into the process for developing interventions

ensure that any conclusions drawn address the hypothesis

do not use “jargon” in reports and ensure a base level of understanding of networks before presenting findings

Some ongoing challenges…….. Senior management “getting it” ONA is a diagnostic – the real value is in the interventions Ensuring transparency of results Overcoming the “fear factor” Not making assumptions and drawing conclusions without validation Networks are dynamic – analysis will show the current state of play which WILL change Organisation culture is important – need to work with client to interpret results

Senior management “getting it”

ONA is a diagnostic – the real value is in the interventions

Ensuring transparency of results

Overcoming the “fear factor”

Not making assumptions and drawing conclusions without validation

Networks are dynamic – analysis will show the current state of play which WILL change

Organisation culture is important – need to work with client to interpret results

Every manager knows that business runs better when people within an organisation know and trust one another -- deals move faster and more smoothly, teams are more productive, people learn more quickly and perform with more creativity. Strong relationships, most managers will agree, are the grease of an organization. Business gets done without them, but not for long and not very well. How to Invest in Social Capital Laurence Prusak Donald J. Cohen Havard Business Review

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