This document outlines the syllabus for a course on managing strategic networks. The course aims to help students better understand how to create, use, and manage networks effectively. It will examine network concepts applied in organizational settings, starting with simple structures and progressing to more complex arrangements. Students will analyze individual, organizational, and interorganizational networks. The course involves case studies, readings, surveys, and a final field study project applying the tools learned to evaluate a manager's, team's, or organization's network. Evaluation is based on class participation, a network self-assessment, and the field study project.

1. MGT 535: Managing Strategic Networks
Professor Marissa King
Marissa.King@yale.edu
MW 1:00-2:20 PM
Course Scope and Mission:
Networks of relationships determine who is likely to get a job and get promoted, the
innovativeness and profitability of organizations, how effectively industries and
communities can coordinate, and the speed at which ideas and innovations spread.
Although the importance of social capital is self-evident, few managers and
entrepreneurs know how to effectively structure and coordinate their networks. In part,
this is because many of the principles that structure a strategic network are not intuitively
obvious. The number and type of associates a manager or entrepreneur has is often not
as important as how those relations are structured. The goal of this course is to gain a
better understanding of how to create, use, and manage networks effectively.
Course structure:
Network analysis is both a theoretical perspective and a methodology. Each week will
focus on one set of network concepts applied in different organizational settings. We will
begin with the simplest network structures and move towards more complex
arrangements of people and organizations. The first third of the course examines the
way in which patterns of social interaction influence an individual’s ability to achieve their
goals (e.g., get a job or get promoted). Here we draw on cases of individual managers to
assess how their networks help or hinder their performance. The middle of the course
focuses on how networks can affect the ability of organizations to implement change and
realize competitive advantage. Finally, we will examine how increasing connectedness in
the broader social world is transforming the way business is done.
Evaluation and Grades:
Class Participation: 35%
Network Self Assessment + Surveys: 25%
Field Study: 40%
Field Study:
The final team assignment will allow you to use the theoretical and methodological tools
acquired in the course to evaluate either (1) the network around a manager, (2) a team or
unit within an organization, or (3) an interorganizational network. While former
employers and colleagues make fine objects of study, much insight can also be gained by
picking more unusual cases. The project should identify a clear question, problem, or
opportunity and then utilize a combination of observation, interview(s), and/or archival
records to understand the issue. The study should have three components: an overview
of the current situation from a network perspective, a graph of social relations and any

2. relevant network metrics, and a set of recommendations about how to move forward. In
the final session of the course, each team should present an overview of their case and
the recommendations for moving forward.
The project should be done in teams of 4 to 5 people that you are free to choose on your
own. You have considerable latitude in what you choose to study but please meet with
meet with me by September 21st
to discuss your project idea. Past successful projects
have examined network recruitment from schools into Private Equity firms, the role of
twitter in the Egyptian protests, and the Yale SOM alumni network in Silicon Valley. In
general, your project should apply the concepts and theories discussed in the course to a
manager, group, or set of organizations. I generally avoid giving page lengths—quality is
far more important than length. However, I would be surprised if you could successfully
complete the project in less than 15 pages. Both the final report and class
presentations are due on Fri, Oct 14 during class. The class will meet from 11:30
am-1:30 pm.
Network Self-Assessment:
The network self-assessment allows you to examine your work relations (through a
survey instrument and visualizing your LinkedIn network), your personal relations
(through the facebook analyses conducted in class), and the relationship between the
two. Based on the readings and metrics discussed in the course you should 1) analyze
current strengths and weakness of your existing network and 2) use the readings to
develop a strategic action plan to develop your network. The report should be two to
three pages of text, excluding tables and figures. The network self-assessment is due on
September 14th
.
Case Surveys:
To help prepare for discussion and create datasets for the labs, there will often be a two
or three question survey that will take less than five minutes to complete. The results
from these surveys will be used as data in classes. There are no wrong or right answers,
the questions are just meant to provoke discussion. If a survey is due, a link will be
posted on the syllabus or emailed to the class. Please fill out the survey by 7 am on the
day the case will be discussed.
Laptops:
Laptops are not permitted in class, except during lab session. Please take notes by hand.
If you have a particular problem with this request, please see me. If I don’t hear from
you about this individually, I will ask you to close your laptop if I see it open.

3. August 31st: Characteristics of Effective Networks, Part I
Case: Ross Walker’s Path to Power (OB79-PDF-ENG)
Ross Walker, a 2005 graduate of Stanford Business School, had developed an extensive
network for someone at his career stage. He had been chosen to serve as the youngest
alumni representative on the Stanford University Board of Trustees, had a great job, was
well-known and well-liked by a very large number of people. How did he do it? As his
career unfolds, he inevitably faces more intense competition as he moves on to even
bigger platforms and more responsibility. Will the qualities that allowed him to develop
his network continue to serve him just as well in the future as they had in the past?
Readings: Cross, R. and A. Parker (2004). The Hidden Power of Social Networks. Chapter 1.
pp. 2-14.
Ferrazzi, Keith. Never Eat Alone: And Other Secrets to Success, One Relationship at a Time. New
York: Doubleday. (Skim)
Cohen, Allan and David Branford. “Influence Without Authority: The Use of Alliance,
Reciprocity, and Exchange to Accomplish Work.” Organization Dynamics 17:3, pp. 5-17.
(Optional)
September 7th: Characteristics of Effective Networks, Part II
Case: Heidi Roizen
Heidi Roizen, a venture capitalist at SOFTBANK Venture Capital and a former
entrepreneur, maintains an extensive personal and professional network. She leverages
this network to benefit both herself and others. The case considers the steps she's taken
to build and cultivate a network that is both broad and deep.
Prior to the class please fill a quick online survey available at:
http://yale.qualtrics.com/SE/?SID=SV_eKvIdzJNorKCzeA
It should only take 5 to 10 minutes but we will use the network data throughout the

4. Readings:
Knoke, David. Note on Centrality. 2 pages.
Burt, Ronald S. 1992. Structural holes: the social structure of competition. Cambridge, MA:
Harvard University Press.
September 9th: Your network, Lab Part 1
Readings: Brandt, Check, and Pedrazaz. 2006. “You Must Start Before Day One,” From
New Leaders 100-Day Action Plan, 99. 51-68.
Uzzi and Dunlap, “How to Build Your Network,” Harvard Business Review R0512B-PDF-
ENG. 10 pages.
Kuwabara, Ko. “Networking Like an Investor.” Columbia Case Works. 11pages.
Easterly, D and J. Kleiberg. 2010. Networks, Crowds, and Markets. Pages 43-63.
Prepare: Prior to class please go to http://apps.facebook.com/namegenweb/ and
download your Facebook network. Please save the file as a text file and bring the text file
to class. We will analyze this in class.
Go to: http://inmaps.linkedinlabs.com/network and explore visulalizing your LinkedIn
network. It may prove helpful to print out a copy of your network and bring it to class in
order to facilitate comparisons with your Facebook network.
Developmental Network Questionnaire (Classes V2)
September 12th: Status and Mobility
Case: Leading the Josie Esquivel Franchise
After close to a decade at Lehman Brothers, Josie Esquivel was finally ranked number
one in her industry by the Institutional Investor. However, there have been several
organizational changes at Lehman recently and Josie has an offer from Morgan Stanley.
Should she accept? To make this decision, Esquivel needs to reflect on what made her
successful and to consider seriously what it would take to move her "franchise" to
another company without compromising her performance as a star.

5. Readings: Groysberg, Less, and A. Nanda (2008). “Can They Take It With Them? The
Portability of Star Knowledge Workers’ Performance”. Mgmt Science, 7, 1213-1230.
Podolny, J. and D. Phillips (1996). “The Dynamics of Organizational Status,” Journal of
Industrial and Corporate Change, 453-458 (459 – 471 is optional).
September 14th: Teams and Intraorganizational Networks
Case: Building a Networked Organization: Restructuring the IT Department at MWH
Vic Gulas, the new head of IT at the engineering consulting firm MWH Consulting, is
charged with turning a geographically organized department into one organized by
function. He knows that the success of the reorganization will depend on effective
collaboration, but he cannot get a sense of what collaborative relationships do and do
not exist by looking at a formal organizational chart. Instead, Gulas uses organizational
network analysis (ONA), a method for mapping relationships among people in a group.
In the ONA results, Gulas sees a group still fragmented by geography and constrained
by hierarchy and other gaps in connectivity.
Reading: Mehta, Ajay, Andrea Dixon, Daniel Brass and Bruce Robertson. 2006. “The
Social Network Ties of Group Leaders: Implications for Group Performance and Leader
Reputation.” Organization Science 17: 64-79.
September 19th: Sales and Referral Networks
Case: Hale and Dorr
Hale and Dorr, Boston’s largest law firm, is headed by managing partner, Bill Lee. While
the firm has been successful, the industry is getting more competitive. In response, Lee
and the firm’s other partners feel that the time has come to formally think about the
process of acquiring and retaining customers. Put differently, the firm is thinking about
how they should sell their services. The case focuses on two elements of selling:
referrals and sales presentation. Bill Lee must decide how to and to what extent it is
necessary to focus on the development of the firm’s internal and external referral
networks.
September 21st: Brokerage
Case: Jerry Sanders
The Jerry Sanders case recounts how an entrepreneur in the medical devices industry
rapidly transformed a technology concept into a virtual company, X-Cardia. The

6. dilemma posed by the case is whether Sanders’ success with X-Cardia was a one-off or
can it Sanders can have the same success with another company.
Readings: Santos, Filipe and Kathleen Eisenhardt. 2009. “Constructing Markets and Shaping
Boundaries: Entrepreneurial Power in Nascent Fields.” Organization Science 52: 643-671.
September 26th: Negotiation
Case: Basil “Buzz” Hargrove and De Havilland, Inc
In this case we will examine the tactics employed by Basil “Buzz” Hargrove, president of
the Canadian Auto Workers and veteran negotiator, to avoid a strike. During the class
we will watch video footage of the entire process to understand why Hargrove found it
difficult to deal with Merv Gray, the head of the union’s bargaining committee and why
representatives from Buzz’s camp found him difficult to deal with. During the course of
the case discussion we will examine what Hargrove did right and wrong, as well as what
he should do next.
Readings: Gould, Roger V. and Roberto M. Fernandez. 1989. "Structures of Mediation: A
Formal Approach to Brokerage in Transaction Networks." Sociological Methodology pp. 89-126.
September 28th: Visitor—Martina Gmur
Please see resources folder for links to background on the World Economic Forum
Global Agendas Council.
October 3rd
: Your Network--- Lab Part II
Readings:
The Real Life Social Network v2 Slides
An Experimental Study of Search in Global Social Networks Dodds, Muhamad & Watts,
Science, 301, August 8, 2003: 827-829
Watts, Duncan Chapters 2 and 3 in Six Degrees. New York: WB Norton. Pp. 43-83.
Please bring your facebook data to class. We will further analyze this in class. Also
answer the second online survey prior to class. The survey will be the same as the
one you previously filled out. This will allow us to examine the evolution of our
class’s network over the term.

7. Watts, Duncan and Peter Dods. “Thresholds, Cascades, and Predictability.”
October 5th: Viral Marketing
Case: Hasbro POX
Hasbro management is preparing for the launch of a new hand-held electronic game.
The game has several novel benefits: it allows social engagement through its multiplayer
capacity and provides a way to stealthily engage in remote battle sequences. Two
proposals for marketing the new game are on the table at Hasbro. Does a viral marketing
campaign or more traditional marketing approach make the most sense for the new
game?
Watts, D and J Peretti. “Viral Marketing for the Real World.” Harvard Business Review. 2
pages
Elliot, Carl. 2006. “The Drug Pushers.” Atlantic Magazine
http://www.theatlantic.com/magazine/archive/2006/04/the-drug-pushers/4714/
October 10th: Local Networks, Market Entry, and Market Structure
Case: Groupon
This case is set in early 2011, after a period of incredible customer and revenue growth
for Groupon. Reviewing Groupon's rise, the case explores whether Groupon
promotions are really good for local merchants, whether it can continue to thrive amidst
increasingly intense competition, and the key reasons for the company's remarkable early
success.
Ferrary, M. (2003). “The Gift Exchange in the Social Networks of Silicon Valley.”
California
Management Review, 45, 4, 120-138. We will focus on pages 128-138.
Fleming, L. and Matt Marx. (2006). “Managing Creativity in Small Worlds.” California
Management Review, 48, 4, 6-27.
October 12th: Fieldwork Presentations and Wrap Up