We have recently formalised our methods for using social/organisational network analysis techniques to identify critical influencers in an organisation that can help facilitate accelerated change within large and complex organisations. We are seeing that internal networks are becoming a critical resource for promulgating positive change. Our research has shown that the 'critical mass' in modern organisations are also the group most likely to be least influenced by top-down change initiatives. Using social network techniques we have been able to identify with some precision, those roles/people in the enterprise that are at highest risk of NOT being influenced by enterprise wide change initiatives. The pack provides a case study run through our approach. We welcome comments and/or feedback

1. Achieving Organisational Change
Through Leveraging Internal Networks
Targeting influencers at ALL levels

2. Impetus for ‘Change’ has Never Been Greater
* http://www.towerswatson.com/en/Press/2013/08/Only-One-Quarter-of-Employers-Are-Sustaining-Gains-From-Change-Management
What does NOT work in changing a culture?
Some group decides what the new culture
should be. It turns a list of values over to
the communications or HR departments
with the order that they tell people what
the new culture is. They cascade the
message down the hierarchy, and little to
nothing changes.
John P. Kotter
Organisational Change Management
Authority
… But 75% or Organisational Change Efforts Fail*
Situation

3. The Critical Mass has Moved to the Middle…
* Actual data from a 33,000 financial services company
Staff Numbers at Each Level*
CEO
Group Executive
Executive General Manager
General Manager
Executive Manager
Manager/Specialist/Co-ordinator
Analyst/Associate/Representative
Support Officer/Analyst
Admin Support
Office Support
Building Services Support
Executive
The critical mass are
now professional
independent workers
Complication

4. Percentages
Hierarchical Level
Survey: Please nominate up to five people who you rely on the most to get your work done
Levels 6 & 7 rely as much
or more on their peers
than their leaders. They
also made up 68% of total
staff
‘Top Down’ is failing where it matter most…
Complication

5. Layers of Management to Traverse are Significant …
Staff Numbers at Each Level*
CEO
Group Executive
Executive General Manager
General Manager
Executive Manager
Manager/Specialist/Co-ordinator
Analyst/Associate/Representative
Support Officer/Analyst
Admin Support
Office Support
Building Services Support
Executive
* Actual data from a large strong financial services company
The critical stakeholder
groups are 5 Levels or
more down from the CEO
Complication

6. … Sustained influence is most likely at the
peer-to-peer relationship level
One-upPeerOne-down
Percentage
89% of dependency nominations
were within a single level
45% of dependency nominations
were peers at the same level
Mutual dependency is lowest at
the one level up relationship
Cascading ‘Top Down’ has little
chance of working….
Complication

7. Good News … the Critical Mass is Connected
Engagement @ Network Speed!
…but how to identify the ‘right’ super-
connected influencers?...
There is hope…
Resolutions

8. Targeted Diffusion of the ‘Change’ Message
‘Change Agents’ work in networked teams to engage the ‘disconnected’
Valente, Thomas W. Social networks and health: Models, methods, and
applications. Oxford University Press, 2010.
When diffusion starts with opinion leaders, the diffusion occurs
more rapidly.
When diffusion starts with randomly selected people, or those
on the margins, it is slower.
Resolutions

9. A Method to Resolution…
Use SNA to
identify the set of
Influencers,
enterprise wide
1
Enroll peer level
influencers into
targeted change
initiatives
4
Conduct profile
analysis of
‘disconnected’ to
identify target
sectors
3
Identify people
most distant from
potential
influencers (the
Disconnected)
2
Please nominate who
you rely on the most
to get your work done
List of
Influencers
List of
Disconnected
List of
Disconnected
Profiling
Department?
Location?
Seniority?
Tenure?
Gender?
Age?
Role? Etc.
Peer Level
Influencers
‘Top Down’ Change
Facilitators
Division xxx
Role: abc, zzz
Seniority: 7
Location: xyz
Resolutions

10. Identifying Influencers in the ‘Critical Mass’
“With other members of the senior team, they
sought out employees at all levels—those who
were well connected, sensitive to the company
culture, and widely respected—to get their input
on the strategy as well as their views on both the
design and execution of intended process
changes.”
Harvard Business Review Case Study
“Cultural Change That Sticks”
Katzenbach, Steffen and Kronley
Using Social Network
Analysis…

11. Case Example
Use SNA to
identify the set of
Influencers,
enterprise wide
1 Please nominate who you rely on the most to get your work done
Top Influencers
Numberofdependencynominations

12. Case Example
Identify people
most distant from
potential
influencers (the
Disconnected)
2
10,728 received at
least 1 nomination
as an influencer
2,618 non-
influencers
Identified Network
Size = 13,346
18,718
Potentially
Disconnected
Total Staff = 32,064

13. Case ExampleConduct profile
analysis of
‘disconnected’ to
identify target
sectors
3
Retail Banking comprise 57.8% of the Disconnected Group, yet only 24.3% of the
Connected Group; suggesting an under-representation in the connected group

14. Case ExampleConduct profile
analysis of
‘disconnected’ to
identify target
sectors
3
Retail Banking Services - Locations
Victoria is the Region of Retail Banking
Services, most under-represented

15. Case ExampleConduct profile
analysis of
‘disconnected’ to
identify target
sectors
3
Retail Banking Services – Seniority Levels
Seniority Level 7 of Retail Banking, is the most under-represented
Target: Retail Banking Services, Level 7 Staff, start with Victoria

16. Case Example
Enroll peer level
influencers into
targeted change
initiatives
4
Focus on Retail Banking In Victoria for Level 7 +/- 1
Most Connected/Influential
The Branch Support Manager is best placed to influence the critical mass,
followed by team service leaders

17. Case Example
Enroll peer level
influencers into
targeted change
initiatives
4
Initial Focus on Retail Banking Services Level 7 +/- 1
Most risk of being ‘Disconnected’ at levels 6,7,8 in
Retail Banking in Victoria
#MembersineachRole
Roles not part of the ‘connected’ group at any level

18. The ‘New’ Cultural Change by Design
For sustainable change, designed interventions will require more than
changing the organisations chart. They will require insights into the
networks that underpin them.

19. Impact – Network Centred Cultural Change
Examples
• Major Airline Supply Chain Challenge
– Key influencers identified and engaged
• 15% increase in supply chain efficiency
• Parts turnaround from 26 days to 13 days
• Petroleum Firm Knowledge Sharing Culture Challenge
– Baseline performance measured with repeat study
• 5% increase in reserves identification
• Well shutdown avoidance ($750k/day saving)
• Increases efficiencies in evaluations ($200k)
• Major Miner Rail Operations Collaboration Challenge
– Baseline performance measured
• Key value exchanges identified
• Accountabilities built into ‘lean’ Goals