Host: Steven Wardell, VP Marketing, Activate Networks Presenter: Prof. Rob Cross, University of Virginia

1. Driving Innovation
Through Social Networks
Prof. Rob Cross, University of Virginia
Webinar - Thur. Oct. 25, 2012
617.558.0210 | info@activatenetworks.net | www. activatenetworks.net
1 Newton Executive Park, Suite 100 | Newton, MA 02462
© 2012 Activate Networks, Inc.

2. 1. Network Dimensions Underlying Innovation
2. Network Traps Derailing Innovation
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3. Networks are often under-appreciated in comparison
to the formal structure.
Formal Structure Informal Structure
Exploration & Production H ussan
Senior Vice President M ila v e c
Mares
Hopper
Exploration Drilling Production
Avery McWatters Milavec
Ramirez Production Reservoir W a rin g
Geology Petrophysical
Hussan Hopper
Dhillon Crossley
Sutherland Waring
Smith Myers D h illo n M itc h e ll M a re s
Cordoza
Keller
Zaheer M y e rs
Angelo A v e ry
S m ith
K e lle r S c h u ltz
Klimchuck
C o rd o z a
Mitchell M c W a tte rs
C ro s s le y A n g e lo
Schultz
Zaheer R a m ire z
S u th e rla n d K lim c h u c k
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4. Realizing Innovation Potential Across Select
Collaborative Silos
Issue
– Well known consumer products
organization driven depth in R&D
expertise by investing heavily in a
number of core capabilities. Very
successful in driving incremental
innovation but breakthrough
products and cross-expertise
group innovations had stalled.
Region
= NA
= ASIA
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5. Realizing Innovation Potential Across Select
Collaborative Silos
Solutions
– Managing global connectivity:
Rotation and targeted attention to
connecting key people across
regions (e.g., strategically important
growth hub in Asia).
– Developing select cross-expertise
integration plans: Identified 42
cross-expertise points likely to yield
breakthrough innovation and took
steps to promote connectivity at
those points.
– Replicating networks of high
performing NPD teams: Profiled
networks of successful teams and
embedded project management
and process practices to
Region encourage relevant reaching out.
= NA
= ASIA
© 2012 Activate Networks, Inc. 5

6. Key Network Roles In Groups You Care About
Central Connectors:
1. Are central because they have a large number of connections…often
concentrated within a unit, geography, expertise domain or demographic.
2. Are important because they are key opinion leaders and impact
innovation trajectories…yet can also be key susceptibilities (should they
leave) and create a form of innovator’s dilemma.
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7. Key Network Roles In Groups You Care About
Brokers:
1. Are central because they have more bridging connections across sub-
groups…typically across units, geographies, expertise
domains, hierarchical levels, sub-cultures or demographics.
2. Are important because they tend to be effective at integrating different
knowledge domains…yet are often less known than central connectors.
© 2012 Activate Networks, Inc. 7

8. Key Network Roles In Groups You Care About
Peripheral Players:
1. Are peripheral because they have few network connections. Often
newcomers, experts and those managing work life balance.
2. Appropriate leverage of some (e.g., experts or new hires) ensures
innovative ideas are not just brought into the organization but also
become influential in the network.
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9. Developing Network Responsiveness
Solutions
– Re-structure face to face and
virtual meeting formats: Employ
mechanisms that create
awareness of expertise and
vision for integration.
– Paper or electronic expertise
profiles: Critical to contain
professional information that
creates legitimacy and
personal information that
creates approachability.
– Web 2.0 technologies: Wikis
and other tools can take work
out of the network and build
awareness of expertise.
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10. 1. Network Dimensions Underlying Innovation
2. Network Traps Derailing Innovation
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11. Hidden Network Biases to Innovation
Fragmentation of networks at points
that invisibly undermine efforts to
innovate along desired trajectories.
Domination of networks by particular
perspectives and expertise unwittingly
creating an innovator’s dilemma trap.
Insularity keeping an organization
from effectively leveraging
external expertise.
© 2012 Activate Networks, Inc. 11

12. Correcting Network Overload When It Is Stalling
Innovation and Execution
Example: 71 people identified
Person A as an effective source of
info and 27 responded that greater
access to him is critical to improving Person A
their effectiveness.
Issue:
– Hidden bottlenecks can
invisibly slow down the
work of everyone (when
these over-loaded people
feel busy and like things
are happening).
© 2012 Activate Networks, Inc. 12

13. Correcting Network Overload When It Is Stalling
Innovation and Execution
Example: 71 people identified
Person A as an effective source of
info and 27 responded that greater
access to him is critical to improving Person A
their effectiveness.
Solutions
– Structural: Re-allocation of
decision-rights, providing
broader information access,
delegation/addition of roles
and formalized decision-flows.
– Relational: Defining and
re-routing routine decisions
(e.g., various personnel
decisions, travel, resourcing
efforts, clinical protocol and
protocol design, modeling
and simulation).
– Skill Development: Building
alternative sources of
expertise, behavioral
modeling and coaching.
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14. Decreasing Relational Load Is Important For BOTH
Performance and Engagement/Retention in Matrices
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15. Voice In A New Product Development Team
Network Diagram Based on Response: In either one-on-one conversations or meetings, my
interactions with each person below can typically be characterized as: extremely guarded
-- I am unlikely to take risks with ill-formed thoughts or ideas.
On average, people
identified 4.5 others with
whom they are
“extremely guarded” in
terms of sharing thoughts
and ideas. The minimum
and maximum times that
a person was cited by
others was 1-13.
© 2012 Activate Networks, Inc. 15

16. A Highly Energized Network…
Question: “When you interact with this person, how does it affect your energy level?”
Hierarchy
= Level 1
= Level 2
= Level 3
= Level 4
© 2012 Activate Networks, Inc. 16

17. Energy (and Energizers) Matters More Than You Might
Think…
 Energizers get more from those around them.
― People are more engaged in a given conversation and are
more likely to devote discretionary time to these issues.
 People tend to be more innovative and creative with
energizers.
 Energizers tend to win out in the internal labor market and
with customers.
― Ability to motivate others is as, or more, important than
knowing the answer.
 Energizers promote work satisfaction and learning
among those around them.
 Energy spills over into follow-on interactions.
― De-energizers can be deadly on this front.
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18. Do You Create Energy Around You?
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21. Questions?
For more information visit ActivateNetworks.net and
contact Dave Parkhurst - DParkhurst@ActivateNetworks.net
© 2012 Activate Networks, Inc.