The document discusses how networks are increasingly important in a world where knowledge is growing rapidly but also becoming outdated quickly. It defines what networks are and how an individual's position within networks can impact their access to resources, power, and performance. It provides advice on developing both strong and weak ties within and outside one's organization to maximize learning and opportunities.

1. Leveraging Networks for Results- A brief look Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland 1- May 2008

2. Why the interest in networks? What are networks? What about power and performance? What can you do? Today’s discussion www.slideshare.net/eteigland

3. Everyone is talking about networks National Innovation Networks Formal Networks Entrepreneurial Networks Ego Networks Regional Networks Infrastructure Networks Social Networks FAS.research Electronic Networks Informal Networks Networks of Practice Networked organization

4. A world of rapidly growing knowledge …. > A person’s lifetime 18th century One week 2008 Fischbowl 2007

5. … while it becomes quickly outdated …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

6. Did You Know: Shift Happens http://www.youtube.com/watch?v=pMcfrLYDm2U How are these trends affecting you and your organization?

7. Increasing difficulty in keeping up …. Growth Time Information and knowledge Human absorptive capacity Cohen & Levinthal 1989

8. “ The rate at which individuals and organizations learn may become the only sustainable competitive advantage, especially in knowledge-intensive industries.” Ray Stata, Chairman Analog Devices

9. The world is “shrinking” family local colleagues friends old colleagues colleagues at other offices Just a click away… virtual communities local networks old classmates avatars business contacts social media contacts referrals

10. ” No one knows everything, everyone knows something, all knowledge resides in humanity.” networks Adapted from Lévy 1997

11. What is a network? A set of actors connected by ties Ties/Links Knowledge, trust, team, sit by, dislike, etc. Alliance, customer, investment, etc. Tie Actors/Nodes Individuals Teams, organizations, etc. Actor

12. Swedish hip hop artists Liljeros 2006 ?? Timbuktu

13. Central connectors within one location Bottleneck  Teigland 1998 Surprise!! Stockholm

14. Boundary spanners between locations Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

15. Trust & reciprocity are essential for knowledge exchange in networks

16. Peripheral players between organizations San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Teigland 1998 Other firms Electronic communities

17. Dual loyalties Loyalty Loyalty Organization Professional network

18. Individuals between business firms SEB Ray-Adams & Sandberg 2000 Interlocking directorates of Sweden’s 110 largest public firms, 2000 ??

19. What is the relationship between networks and power?

20. Uncovering networks in an organization Formal organization Teigland et al. 2005 Informal organization

21. How does informal power arise? Krebs 2004 Node 16 gains informal power, weakening the boss Node 15’s power…

22. How does informal power arise? Krebs 2004 … and now N16’s informal power is greater than the boss N15’s formal power

23. Your network position is related to power Betweenness Control over what flows in the network How often are you on the shortest path between 2 individuals? Closeness Access to what flows in the network How quickly can you reach all others in the network? Krebs 2004

24. Does performance differ based on one’s networks?

25. Two individuals with the same number of contacts… B A

26. … but with very different access to resources B A

27. Performance differs based on one’s network Firm A Low on-time High Creative High on-time Low creative Teigland 2003 High creative Virtual community Firm B

28. The strength of weak ties Network A’s knowledge Network D’s knowledge Network B’s knowledge Network C’s knowledge Granovetter 1973

29. When you hire someone,… … ..you “hire” his or her network.

30. Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Improved efficiency over time Stagnant performance over time Schenkel & Teigland 2008

31. More social get-togethers and coffee breaks are not the solution

32. “ Managing” networks in your organization Before After Anklam & Welch 2005 1. Uncover networks 2. Analyze networks 3. Improve connectedness

33. Comparing performance across firms Teigland et al 2000

34. Hewlett-Packard (1990s) Networking activities recognized and rewarded at individual and unit levels Management support for informal and formal networking activities across internal and external boundaries Best practice task group Personal initiatives Extensive socialization : personnel rotation, cross-office teams A visionary organization Clearly defined mission: ”To make technical contributions for the advancement and welfare of humanity” Supporting core values, e.g., teamwork, helpfulness Company-wide goal of World’s Best Laboratory Teigland et al 2000

35. Promote an open innovation attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Closed attitude Open attitude Chesborough 2003

36. External networks are growing in importance! Other people around the world Other employes around the world Other employees in your country Co-Workers Friends Large portion of new ideas and formal collaboration relationships come from external contacts You Alex Eyal Your manager Rami’s manager Hila Yaron Yuval Eduardo Ed Muriel Peter Frequent e-mails Infrequent e-mails Web 2.0 Collaboration

37. Facebook Fridays – Embracing social media #1 Applications Lifecycle Management (ALM) & business mashup 96 of Fortune 100 as customers 800 employees in 18 countries across globe One hour every Friday to Facebook to find fun and connect with co-workers, customers, family, and friends

38. Increasing job turnover Time Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months CNET 2000

39. Why use these new social media tools? Melcrum 10/07

40. Myths and reality checks about networks I already know what is going on in my network Those who think they know their network the best are usually the ones who know the least To build networks, you have to communicate more Networks can be strategically developed We can’t do much to help informal networks Informal networks can be “managed” through changing the organizational context Adapted from Cross et al. 2002

41. So, what does this mean for you? An actor’s position in a social network, i.e., social capital, determines in part the actor’s opportunities and constraints Casper & Murray 2002 German biotech scientists

42. What can you do? What do your networks look like? Where do you sit? With whom do you eat lunch? With whom do you socialize? To which communities, networks do you belong? Build networks before you need them… How are decisions made in your organization? What information flows would you like to be in? What resources will you need in the future? Whom should you get to know?

43. Develop participation in a variety of networks Strong ties Weak ties Outside organization Inside organization SOCNET

44. Start your own network Swedish International Business School Alumni Network (SIBSAN) Stanford GSB Alumni Club Nobel Laureates Political Leaders Stanford

45. But……. “ Lika barn leka bäst” People find similar people attractive and develop relations with people like themselves Our networks tend to be homogeneous and not heterogeneous Marsden 1987, Burt 1990

46. Go meet someone different

47. Make yourself easy to find - Create a live CV Blog blogger, livejournal, typepad, wordpress, etc. Social software LinkedIn Shortcut ecademy Media Slideshare.net Flickr.com YouTube.com

48. The positive spiral of social networks tschaut’s photos Contribution Reciprocity Accumulation Value

49. Thanks and see you in world! Karinda Rhode aka Robin Teigland [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland

50. References and acknowledgements Books Barabási, Linked: The New Science of Networks . Perseus, 2002 Castells, The Rise of the Network Society . Blackwell, 2000 Cross & Parker, The Hidden Power of Social Networks . Harvard Business School, 2004 Gladwell, The Tipping Point . Abacus, 2001 Scott, Social Network Analysis . Sage, 2000 Teigland, Knowledge Networking , SSE, 2003 Teten & Allen, The Virtual Handshake . American Management Assoc., 2007 Homepages Stephen Bird, people.bu.edu/sbird Steve Borgatti, www.socialnetworkanalysis.com Rob Cross, www.robcross.org International Network for Social Network Analysis http://www.insna.org/ David Krackhardt, www.andrew.cmu.edu/user/krack/index.shtml Valdis Krebs, www.orgnet.com Fredrik Liljeros, www.sociology.su.se/home/Liljeros/index.html James Moody, www.soc.duke.edu/~jmoody77/presentations/index.htm Giancarlo Oriani, www.informalorg.eu (In Italian) Barry Wellman, www.chass.utoronto.ca/~wellman/