KM Chicago: Organisational Network Analysis


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KM Chicago (June, 2007)

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  • Columbus opened up trade between old and new world Key agents for 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
  • We have all heard about the concept of six degrees of separation – that we are all only six steps away from everyone else. Is this true though? In 1967 a man by the name of Stanley Milgram tested this hypothesis. He randomly selected people from various places in the US to send postcards to one of two targets: one in Massachusetts and one in the American Midwest. The senders knew the recipient's name, occupation, and general location. They were instructed to send the card to a person they knew on a first-name basis who they thought was most likely, out of all their friends, to know the target personally. That person would do the same, and so on, until it was delivered to the target himself/herself. The results showed that 80% of the successfully delivered packages were delivered after four or fewer steps. Almost all the chains were less than six steps. - Gaddafi – my father was a Consul General for Australia in Libya who met him on a number of occasions – by default, you are three handshakes away from Gaddafi - The Queen/Queen Mother – I have met several times as a child – you are now two handshakes away! - Whitlam – came to my house and had dinner – you are only two handshakes away! - Boxing day Tsunami 2004 – I survived – you are one handshake away! - Who do you know? - Anyone in the world is less than six steps away from you….
  • Network analysis is not new – it has been in existence since the 1930’s. What is new, is its application to business Uncovering hidden networks – the diagram shown is a famous example of a real network in a major oil company – the key here being look at where “Cole” sits in the structure chart, and the central role he plays in the informal network – what would happen if he left or was fired tomorrow? Interactions – between individuals and groups within an organisation – are there roadblocks or breakdowns in relationships that impede information and knowledge transfer – can we increase the number of ties that exist – can we identify key groups central to network success? How does information or knowledge flow in the network – can we see key people facilitating this transfer – are there people bonding groups or are they bridging ties between teams? Does the network represent where the organisation desires to be today – or does it highlight key areas that need to be focused upon – and actions required to be taken to link groups, breakdown network barriers and improve collaboration
  • 16/02/10
  • KM Chicago: Organisational Network Analysis

    1. 1. Presentation to KM Chicago 12 June 2007 Chris Fletcher—Director, Knowledge Management Asia Pacific region Deloitte Consulting Organisational Network Analysis
    2. 2. The World is Flat! <ul><li>Globalisation 1.0: circa 1492 - 1800 Globalisation 2.0: circa 1800 - 2000 </li></ul><ul><li>Globalisation 3.0: circa 2000 to today </li></ul>Source: The World is Flat – A Short History of the 21 st Century: Thomas L. Friedman Globalisation 1 Globalisation 2 Globalisation 3
    3. 3. “ 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
    4. 4. 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?
    5. 5. 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
    6. 6. Six Degrees of Separation……
    7. 7. <ul><li>Organisational Network Analysis (ONA) is a tool for: </li></ul><ul><li>uncovering the “hidden” network – how work REALLY gets done in organisations </li></ul><ul><li>understanding the interactions between people </li></ul><ul><li>identifying and accelerating knowledge and information flows </li></ul><ul><li>improving the efficiency and effectiveness of knowledge flows and networking </li></ul>Source, Rob Cross, The Hidden Power of Social Networks Source: The Hidden Power of Social Networks – Rob Cross / Andrew Parker
    8. 8. <ul><li>Why use ONA? </li></ul><ul><li>Is a diagnostic tool – will provide an analysis of the “State of Play” today. </li></ul><ul><li>Real benefits of the analysis are apparent in the interventions that take place as a result of the insights learnt </li></ul><ul><li>Visual nature of network maps / supporting quantitative analysis facilitate easy identification of issues and facilitation of network building activities </li></ul><ul><li>Network analysis facilitates conversations about the business often revealing otherwise hidden insights </li></ul>
    9. 9. What can ONA be used for? <ul><li>Supply Chain </li></ul><ul><li>Talent Management </li></ul><ul><li>Strategic Partnerships </li></ul><ul><li>Facilitating large scale change or merger integration </li></ul><ul><li>Driving Innovation </li></ul><ul><li>Organisational Performance </li></ul>
    10. 10. <ul><li>Key factors for success </li></ul><ul><li>Support by leadership </li></ul><ul><li>80% participation rate </li></ul><ul><li>Transparency of results </li></ul><ul><li>Commitment to act upon the results </li></ul><ul><li>Making assumptions is dangerous </li></ul><ul><li>Do not underestimate the importance of communications </li></ul><ul><li>Follow-up survey in 6 – 9 months time </li></ul>
    11. 11. <ul><li>Two types of people in networks….. </li></ul>Bonders Bridgers <ul><li>Becoming “us” </li></ul><ul><li>affinity </li></ul><ul><li>efficiency </li></ul><ul><li>trust </li></ul><ul><li>support </li></ul><ul><li>community </li></ul><ul><li>Brokering between “them” </li></ul><ul><li>access </li></ul><ul><li>resources </li></ul><ul><li>innovation </li></ul><ul><li>impact </li></ul><ul><li>profit </li></ul>
    12. 12. <ul><li>What outcomes can be expected? </li></ul><ul><li>Visual representations of the network as it is today based upon nominated attributes </li></ul><ul><li>Identification of key networks, brokers, and central practitioners </li></ul><ul><li>Analytics to assess interactions between network groups </li></ul><ul><li>Program of activities to support desired network changes </li></ul>
    13. 13. Business Case Hypothesis Question formulation Survey Delivery Results Analysis Presentation Getting from “So what” to Action” What is the process for undertaking ONA?
    14. 14. Business Case <ul><li>Why do you want to undertake an Organisational Network Analysis? It could address: </li></ul><ul><li>team building </li></ul><ul><li>communications and connections across groups </li></ul><ul><li>identifying key connectors in an organisation </li></ul><ul><li>identifying key decision makers in leadership teams </li></ul><ul><li>facilitating efficiency in strategic alliances / partnerships </li></ul><ul><li>facilitation successful mergers and acquisitions </li></ul><ul><li>understanding network interaction in Communities of Practice </li></ul><ul><li>identifying expertise networks </li></ul><ul><li>facilitating innovation programs </li></ul><ul><li>managing latent talent or knowledge issues </li></ul>What is the process for undertaking ONA?
    15. 15. <ul><li>What is it that you want to know? </li></ul><ul><li>what does leadership want to find out? </li></ul><ul><li>what specific issues are top of mind with management? </li></ul><ul><li>do you have a specific issue / problem that you want to prove/disprove? </li></ul><ul><li>do you need to focus on individuals, teams, divisions, other organisations? </li></ul><ul><li>can you answer this hypothesis through ONA? </li></ul><ul><li>Development of a robust hypothesis is crucial to the success on an ONA </li></ul>Hypothesis What is the process for undertaking ONA?
    16. 16. <ul><li>What questions will allow you to prove/disprove your hypothesis? </li></ul><ul><li>questions need to be framed around the issue being addressed </li></ul><ul><li>how many topics will be covered in the questions? </li></ul><ul><li>how many questions will you ask? </li></ul><ul><li>what survey vehicle will be used – spreadsheet, internet survey, hard copy etc </li></ul><ul><li>have questions been validated </li></ul><ul><li>Testing the questions on a representative group is a good idea! </li></ul>Question Formulation What is the process for undertaking ONA?
    17. 17. Sample Survey
    18. 18. Sample Network Questions <ul><li>Communication: </li></ul><ul><ul><li>How often do you talk with the following people regarding <topic x>? </li></ul></ul><ul><ul><li>How much do you typically communicate with each person relative to others in the group? </li></ul></ul><ul><li>Information </li></ul><ul><ul><li>How frequently have you acquired information necessary to do your work from this person in the past three months? </li></ul></ul><ul><ul><li>Please indicate the extent to which each person provides you with information you use to accomplish your work. </li></ul></ul><ul><ul><li>From whom do you typically seek work-related information? </li></ul></ul><ul><ul><li>To whom do you typically give work-related information? </li></ul></ul><ul><li>Problem solving </li></ul><ul><ul><li>Whom do you typically turn to for help in thinking through a new or challenging problem at work? </li></ul></ul><ul><ul><li>How effective is each person in helping you to think through new or challenging problems at work? </li></ul></ul><ul><li>Innovation </li></ul><ul><ul><li>Whom are you likely to turn to in order to discuss a new or innovative idea? </li></ul></ul><ul><li>Knowledge awareness </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>Access </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>Engagement </li></ul><ul><ul><li>If I ask this person for help, I can feel confident that he or she will actively engage in problem solving with me. </li></ul></ul><ul><li>Safety </li></ul><ul><ul><li>Please indicate the extent to which you feel personally comfortable asking this person for information or advice on work-related topics. </li></ul></ul>Source: The Hidden Power of Social Networks – Rob Cross / Andrew Parker
    19. 19. <ul><li>How will the survey be distributed to target audience? </li></ul><ul><li>what form will the survey take? </li></ul><ul><li>will it be distributed by email, internet or snail mail? </li></ul><ul><li>what will the follow-up procedure be? </li></ul><ul><li>who will champion the ONA programme – will they facilitate the introduction of the survey? </li></ul><ul><li>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? </li></ul>Survey delivery What is the process for undertaking ONA?
    20. 20. <ul><li>OK – you have your results – an 80% response rate – what now? </li></ul><ul><li>need to have decided what analysis program you are going to use i.e. UCINET, InFlow etc </li></ul><ul><li>understand that the analysis is more than pictorial – an understanding of network analytics is required </li></ul><ul><li>do not make assumptions in interpreting the data you find – work with the organisation to ensure that conclusions can be validated </li></ul><ul><li>use the attribute data you have – consider the impact of different network characteristics </li></ul>Results Analysis What is the process for undertaking ONA?
    21. 21. 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
    22. 22. <ul><li>Having undertaken your analysis of the results – what now? </li></ul><ul><li>do not make assumptions: validate & follow-up key conclusions with project sponsor, especially if you are not part of company culture </li></ul><ul><li>conduct some follow-up interviews with identified individuals. Anecdotes can provide insight and direction for further investigation </li></ul><ul><li>look to develop follow-on programs to bring participants into the process for developing interventions </li></ul><ul><li>ensure that any conclusions drawn address the hypothesis </li></ul><ul><li>do not use “jargon” in reports and ensure a base level of understanding of networks before presenting findings </li></ul>Getting from “So what” to action What is the process for undertaking ONA?
    23. 23. ONA – China example <ul><li>Organisation moving into a significant growth phase </li></ul><ul><li>Division looking to reassess structure to cater for growth plans and more effectively share knowledge </li></ul><ul><li>It was felt that there was an intuitive understanding of underlying issues in the organisation – are they correct? </li></ul><ul><li>ONA is a significant milestone in opening up the culture </li></ul><ul><li>Four questions: information, communication, project awareness and problem solving </li></ul><ul><li>80% response rate (175 people) </li></ul><ul><li>Cultural considerations were guided by local support </li></ul><ul><li>Interviews used to validate analysis and elicit more insight into underlying issues </li></ul><ul><li>Discussion with senior leaders on possible interventions and the way forward taking place this week </li></ul><ul><li>Results to be shared with all staff in two weeks time </li></ul>
    24. 24. Methodology <ul><li>Survey emailed out to all division staff by MD, requesting a response to four questions Q1: How often do you typically seek work related information from this person? 1 = Very Infrequently 6 = Very Frequently </li></ul><ul><li>Q2: How much do you typically communicate with this person relative to others in your group? 1 = Very Infrequently 6 = Very Frequently Q3: How aware are you of projects undertaken by this person in the last 12 months? 1 = Totally unaware 4 = Very aware </li></ul><ul><li>Q4: How often do you typically turn to this person for help in thinking through a new or challenging problem at work? 1 = Very Infrequently 6 = Very Frequently </li></ul><ul><li>Received responses from 175 out of 218 people – response rate of 80% </li></ul><ul><li>Data entered into a matrix and results analysed in a network analysis program called UCINET </li></ul>
    25. 25. Information flows “ How often do you typically seek work related information from this person” Responses of: Very Frequently/Frequently <ul><li>Shanghai does not seek much information from Beijing </li></ul><ul><li>Beijing has higher internal information flows </li></ul>Network Measures 15 4.7 Centrality 2.0 4.2 Cohesion 10% 2.7% Density Target Deloitte Hong Kong (9) Beijing (81) Shanghai (121) Location 20.83% 1.14% 1.19% Hong Kong (9) 0.76% 5.71% 1.47% Beijing (81) 0.73% 0.83% 3.76% Shanghai (121) Hong Kong Beijing Shanghai
    26. 26. Information flows - Level “ How often do you typically seek work related information from this person” Responses of: Very Frequently/Frequently <ul><li>Snr Exec’s are central in the provision of information to senior staff </li></ul><ul><li>Snr Managers play a key role in linking senior and lower hierarchy practitioners in the provision of information </li></ul><ul><li>Levels below Senior Manager do not readily share information amongst themselves </li></ul><ul><li>Significant number of Deputy Mgrs, Consultants and Analysts are on the periphery </li></ul>Chart Interpretation: Each cell reflects the percent of ties out of 100% that could exist if everyone were connected to everyone else at that juncture. Table is read from row to column. Director Manager Snr Manager Snr Exec Analyst Consultant Deputy Mgr Level 5.0% 2.5% 2.2% 2.3% 3.7% 1.8% 1.0% Analyst (46) 1.4% 2.4% 2.0% 2.4% 2.2% 4.9% 1.3% Consult (34) 2.5% 2.2% 2.7% 3.3% 4.7% 5.5% 2.2% Deputy Mgr (61) 1.4% 1.7% 1.9% 2.6% 4.4% 5.2% 5.3% Manager (42) 2.0% 3.2% 4.0% 4.8% 6.9% 8.3% 6.7% S Mgr (20) - - 1.4% 0.8% 1.7% - 1.8% Director (6) - - - 2.6% 7.2% 14.8% 16.7% Snr Exec (9) An Con S Con Mgr S Mgr Dirr Ptr
    27. 27. Shanghai network Deputy Mgrs, Consultants and Analysts on the periphery Director Manager Snr Manager Snr Exec Analyst Consultant Deputy Mgr Level
    28. 28. Beijing network Distinct cluster heavily connected by Senior Managers Cluster not connected to rest of Beijing office Director Manager Snr Manager Snr Exec Analyst Consultant Deputy Mgr Level
    29. 29. Information Flow: Hierarchy Network (Snr Exec – Manager) Snr Exec, Directors and Senior Managers play a central role in the network Director Manager Snr Manager Snr Exec Level
    30. 30. Information flows - Group “ How often do you typically seek work related information from this person” Responses of: Very Frequently/Frequently FMT have little interaction with outside groups & the majority of practitioners are located in Beijing EA has fragmented into two sub-groups causing interaction in the group to be lower than expected. Connections between the sub-groups is primarily at the consultant/analyst level. EA interaction with other groups is also low MFG EA GFSI HCAS S&O E&R FMT TMT Group - - - - - - - 3.3% MFG 50% - 0.8% - - - 1.2% - E&R - - - - 1.0% 10.0% MFG (1) 1.2% - - - - - E&R (2) 17.9% 0.2% 1.2% 0.3% 0.1% 0.2% FMT (41) 3.4% 23.3% 0.6% - - - TMT (10) 0.9% 0.6% 18.7% 0.4% 0.4% 0.8% GFSI (16) 1.7% 1.9% 0.8% 15.0% 1.2% 1.9% HCAS (16) 0.5% 0.5% 0.7% 0.5% 5.0% 0.7% EA (102) 1.1% 2.7% 2.3% 1.0% 0.3% 16.7% S&O (30) FMT TMT GFSI HCAS EA S&O
    31. 31. Brokers are leverage points to enhance collaboration “ How often do you typically seek work related information from this person” Responses of: Very Frequently/Frequently Network with top 18 brokers (10% of practice) and peripheral players highlighted Broker Peripheral player Current Analysis Future state Network with top 18 brokers (10% of practice) and peripheral players linked together By linking brokers and peripheral players, there has been a significant improvement in collaboration and information flows around the network Target Actual 15 4.7 Centrality 2 4.1 Cohesion 10% 2.7% Density 15 2 10% Target 76% 28% 59% Change Actual 8.3 Centrality 3.2 Cohesion 4.3% Density
    32. 32. Some ongoing challenges…….. <ul><li>Senior management “getting it” </li></ul><ul><li>ONA is a diagnostic – the real value is in the interventions </li></ul><ul><li>Ensuring transparency of results </li></ul><ul><li>Overcoming the “fear factor” </li></ul><ul><li>Not making assumptions and drawing conclusions without validation </li></ul><ul><li>Networks are dynamic – analysis will show the current state of play which WILL change </li></ul><ul><li>Organisation culture is important – need to work with client to interpret results </li></ul>
    33. 33. 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
    34. 34. A member firm of Deloitte Touche Tohmatsu