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Organizational Connectivity presentationChristian Baldia 1

Organizational ConnectivitySociety of Women Engineers Conference 2009

What is OrganizationalWhat is Organizational Connectivity?


SENIOR VICE PRESIDENT

Example of a Formal Organizational Chart

Exploration & Production Division of a Large Petroleum Company

PRESIDENTJones

EXPLORATIONSWilliams

G & GCohen

Smith

Hughes

Ramirez

PETROPHYSICALCross

Andrews

DRILLINGTaylor

Sen

Moore

Miller

PRODUCTIONStock

PRODUCTIONO’Brian

Paine

RESERVOIRShapiro

22

Bell

Cole

Hussain

Kelly

Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker

Connections Revealed by Social Network Analysis

O’Brian

Stock

Cole

Shapiro Paine

Cohen

Smith Hughes

KellyAndrews

Jones

33

Sen

Moore

Miller

Ramirez Bell

HussainCross

Taylor

Williams



Formal Network vs. Informal Network

44 Source: The Hidden Power of Social Networks, by Rob Cross & Andrew Parker

Who Has Used Social Network Analysis?

• IBM

• Lucent Technologiesg

• Hewlett‐Packard

• JP Morgan‐Chase

• Rubbermaid

TRW

55

• TRW

• Steelcase Inc.

• US Government


Common Business Applications

• Promoting Collaboration & Innovation

/ i i• Process Improvement / Reengineering

• Succession Planning

• Post‐Merger Integration

• Supporting Strategic Partnerships

66

• Supporting Strategic Partnerships

• Developing Communities of Practice

Analyzing Terrorist Networks

77


Seven Important Informal Networks

1. The Work Network2. The Social Network3. The Innovation Network4. The Expert Knowledge Network5. The Career Guidance Network6 The Learning Network

88

6. The Learning Network7. The Decision‐Making Network

Source: Dr. Karen Stephenson, NetForm

Formal Organizational Chart

99 Source: Dr. Karen Stephenson, NetForm


The Organizational Chart as a Network


The Work Network



The “Grapevine” Network


The Career Advice Network



Comparing the Different Networks

Work Network

“Grapevine” Network Career Advice Network


The Building Block of Social Networks

Formal organization charts are based on authority.

So then, what are social networks built upon?

Access

Awareness

1515


The Role of Trust in Social Networks

Three types of interpersonal trust play a significant role in a social network:

1. Competence‐based Trust

2. Benevolence‐based Trust

1616

3. Integrity‐based Trust

A Critical Distinction in Measuring Talent

1717


Analyzing a Social Network

David

ElaineHarry

PaulJane

Karen

Charles Ian

Amy

Fiona Brian Ed

Lynn

Neil

Gayle

Charles

Mike

Carol

Andy

Diane

TinaRay

FrankIan

1818

Val

Beth

Walter

Steve

Location

New York

Boston


Follow‐up Interviews Provide More Details

David

ElaineHarry

PaulJane

Karen

Charles Ian

Unsung Hero? Rising Star?

Amy

Fiona Brian Ed

Lynn

Neil

Gayle

Charles

Mike

Carol

Andy

Diane

TinaRay

Franka

Information Bottleneck or Political Player?

1919

Val

Beth

Walter

Steve

Location

New York

Boston

Potential Flight Risk?




David

ElaineHarry

PaulJane

Karen

Charles IanUnintended

Amy

Fiona Brian Ed

Lynn

Neil

Gayle

Charles

Mike

Carol

Andy

Diane

TinaRay

FrankIan

Bridge-builder?

Information Bottleneck?

2020

Val

Beth

Walter

Steve

Location

New York

Boston

Office Machiavelli?


David

ElaineHarry

PaulJane

Karen

Charles Ian

New Person?


Amy

Fiona Brian Ed

Lynn

Neil

Gayle

Charles

Mike

Carol

Andy

Diane

TinaRay

Franka

Stuck on the Periphery: Poor

Intentionally Peripheral: Experts, External Liaisons, Work-Life Balance

Employees

2121

Val

Beth

Walter

Steve

Location

New York

Boston

Periphery: Poor Performer?

Cultural Misfit?


…or worse: a management

consultant?!


Metrics Definition Interpretation

Density % of connected pairs of actors, out of 100% possible

The connection level within a network (in relative terms)

Organizational Connectivity Metrics

Complete Network Analysis

p )

Cohesion Average # of intermediaries on the shortest path between two actors

The speed of information flow within a network

Centrality Average # of relationships per person The connection level within a network (in absolute terms)

Metrics Definition InterpretationRole

Identification

Individual Position Analysis

22

Degree Centrality

# of ties a person has Activity Hubs

Betweenness Centrality

% of shortest paths between pairs of all other actors that a person lies on

Control over information flowGatekeepers/

Knowledge Brokers

Closeness Centrality

Reciprocal of the sum of the shortest distances between a person and all other actors

Autonomy (ability to reach out for information easily); Ability to monitor information flow

Potential

Pulsetakers

David

ElaineHarry

PaulJane

Karen

Charles Ian

Connectivity Analysis by Gender

Amy

Fiona Brian Ed

Lynn

Neil

Gayle

Charles

Mike

Carol

Andy

Diane

TinaRay

Franka

Number of Individuals

Avg. Degree Centrality

2323

Val

Beth

Walter

Steve


Male

Female

TOTAL

14

12

26

5.29

3.83

4.54


New R&D Subsidiary of a Major Telecommunications Company

CEO Succession Case Study


The Work Network

New R&D Subsidiary of a Major Telecommunications Company





The Social Network



Building Connectivity at the Organizational Level

2929

Mentoring and Leadership Development Programs


Leveraging Diversity Programs

Asian Americans

Affinity Group Program

Hispanics

GLBTDisabled

Women

30

GLBT

African Americans

Disabled

Building Connectivity for New Employees

31


S l

Employee Resources Groups Build Connections

FinanceSales

R&D

Production

32

HR

An Organizational Network Approach to Leadership


Traditional vs. New Conceptions of Leadership

3434

How is Your Organization Choosing its Leaders?

Is it on the basis of just Human Capital?

• The person with the most tenure?• The salesperson who makes the most sales?• The engineer with the most engineering skills?

Or is Social Capital also taken into account?

3535


The Special Importance of Central Connectors

Research suggests that Central Connectors:

• Learn faster,• Perform better, • Are more committed to their organization,• And are less likely to leave the company

Conversely, employees on the periphery:

• Are less engaged and

3636

• Are less engaged, and• Have much higher turnover rates

Of course, these are true only to a certain point…

The Special Importance of Central Connectors

f C l C h iIf Central Connectors have too many connections:

• they become overburdened,• they risk developing into bottlenecks, • and if they become too overwhelmed, they can

burnout or be misdiagnosed as poor performers

3737

Of course, these are true only to a certain point…

Think of Cole in the first example.


Distinguishing Weak Ties from Strong Ties

38

The Strength of Weak Ties

16.7%27.8%

9.3%

30.9%

15.5%

Rarely Contacted Personal Connections

Frequently Contacted Personal Connections

39 Source: Getting a Job: A Study of Contacts and Careers, by Mark S. Granovetter (1974)

55.6%Occasionally Contacted Personal Connections


Simple, Explicit Complex, Tacit

When to Use Weak Ties and When to Use Strong Ties

Low High

High Low

40

Low High

Boundary Spanners and Social Capital

1

3

2

6

James3

4 5

Roberta

7

8

4141 Source: Robert Burt, University of Chicago Graduate School of Business

Research suggests that Boundary Spanners:

• Get promoted faster,• Earn higher compensation, • And perform more successfully on teams


Cultivating T‐Shaped Management

Butterflies T‐shaped Managers

Laggards Lone Stars

Cross‐CompanyContributions

High

Low

42

Individual Performance

HighLow

Low

Two Important Concepts in Social Networks

43


Advice for Women, Minorities & Newcomers

When looking at early promotions in t bli h d t k h f destablished networks, researchers found:

• Weak tie strategies were more effective in a sample of 284 managers in a large high technology firm…

• EXCEPT, in the case of women and newly hired managers For them a strong tie

44

hired managers. For them, a strong tie strategy worked best

An Organizational Network Approach to Leading Change


Technology Adoption Process

Innovators Early Adopters

Early Majority

Late Majority Laggards

Venturesome Respected Deliberate Skeptical Traditional

x̅ x̅ + sdx̅ - sdx̅ - 2sd2.5% 13.5% 34% 34% 16%

Time

Number of Net New

Adopters

46

Time

Source: Diffusion of Ideas by Everett M. Rogers

Summary of Research on Early Adopter Attributes

S i i Ch i i l dSocioeconomic Characteristics: Early Adopters…

• are no different from Late Adopters in age• have more years of formal education• have a higher degree of upward social mobility• oversee larger‐sized units (companies, farms, schools nonprofits etc)

47

schools, nonprofits, etc)




Personality Characteristics: Early Adopters…y y p

• have greater empathy• are less dogmatic• have a greater ability to deal with abstractions• have greater rationality and intelligence• have a more favorable attitude toward change

48

• can cope better with uncertainty and risk• have a more favorable attitude toward science• are less fatalistic• have higher aspirations for themselves



Communication Behavior: Early Adopters…y p

• have more social participation• are more highly connected through interpersonal connections in their social system

• are more cosmopolite• have more contact with change agents

49

• are more exposed to mass media communication• have greater knowledge of innovations and seek information about them more actively

• have a higher degree of opinion leadership



Technology Adoption Process

Diffusion of a New Weed Spray in an Iowa Farm Neighborhood

Innovators Early Adopters

Early Majority

Late Majority Laggards

Venturesome Respected Deliberate Skeptical Traditional

1948 1950 1951-52 1953-54 1955-56

Time

Number of Net New

Adopters

50

Time


Diffusion of a New Weed Spray in an Iowa Farm Neighborhood

19481950195119521953195419551956

51 Source: Diffusion of Ideas by Everett M. Rogers


Sample Output from an Actual Client Engagement

Director

Business Solutions Center

Preferred Client Services

Project Manager & Technical Advisor Sales Support Quality Control

Traditional Organization Chart of Our Client

Solutions Center

Team Leader

Online Support

BSC Agent

Online Support

BSC Agent

BSC

Team Leader

Online Support

BSC Agent

Online Support

BSC Agent

BSC

Team Leader

Online Support

Online Support

BSC Agent

BSC Agent

BSC

Services

Analyst

Analyst

Analyst

Analyst

Technical Advisor

Team Leader

Telesales Analyst

Sales Analyst

Sales Analyst

Sales Analyst

Sales

Team Leader

Sales Analyst

Sales Analyst

Sales Analyst

Sales Analyst

Service Admin.

Analyst

Analyst

Analyst

Customer Service

Customer Service

Customer Service

5353

BSC Agent

BSC Agent

Online Support

BSC Agent

BSC Agent

BSC Agent

BSC Agent

BSC Agent

BSC Agent

Online Support

Sales Analyst

Sales Analyst

Source: Virtcom Consulting


Our Client’s Hierarchy as a Network

Quality Control

5454

Sales Support Preferred Client Services Business Solutions Center


The Work Network with Lines of Authority

Quality Control

Responses Shown:

4 = 1 to 3 times a week

5 D il / Al t d il5 = Daily / Almost daily

5555




The Expert Knowledge Network

Quality Control

Responses Shown:

4 = Often

5 V Oft5 = Very Often

5656



Expertise Network – The Top Experts

Top 20 Internal Experts Hierarchy Level Location

Indegree

Centrality1

Business Online Banking / IRIS

Enrollm

ent Engine

Onsite Check Deposit

Policies & Procedures (Business

Solutions Center)

Procedures (non‐Business

Solutions Center)

System

s Navigation

(Fiserve, etc.)

Cash Managem

ent / General

Product Know

ledge

E‐statem

ents / Alerts (Vendor‐

supported services)

Healthcare Savings Accounts

Individual

Score Totals Write‐in Expertise Categories

Michael O. Manager Providence 36 30 16 25 27 21 15 23 15 16 188

Roger B. Manager Providence 32 26 17 26 26 23 22 25 15 4 184 Excel, forms, eforms

Matthew B. Team Leader Providence 29 27 22 27 25 21 19 22 18 5 186

Mary O. Team Leader Providence 28 31 23 20 30 23 21 22 20 3 193

Brian D. Manager Providence 27 20 22 9 33 24 15 21 17 2 163

Michael A. Team Leader Providence 25 22 18 22 23 15 17 14 14 1 146 Customer questions

Deb M. Manager Boston 18 6 2 6 7 14 5 20 5 1 66 Unusual customer issues, when team leader is unavailable

Andrea B. Team Member Boston 17 8 2 4 2 7 1 20 2 0 46 Sales, setups

Carlos S. Team Member Providence 15 19 12 11 13 8 10 4 7 2 86

David V. Director Providence 15 3 2 3 18 14 2 14 3 2 61 Managerial advice

Deb P. Manager Boston 15 1 0 0 5 9 4 12 1 0 32 Lockbox (x5)

Jim D. Team Leader Boston 14 10 2 8 7 10 6 19 3 1 66 Sales

Lucy V. Team Member Providence 13 13 3 12 6 7 5 10 5 10 71

Kevin H. Team Member Boston 13 0 0 0 0 4 3 9 1 0 17 Lockbox (x5), Lockbox implementation, Lockbox setup (x2)

Lori A. Team Member Providence 12 20 9 11 14 6 8 5 7 1 81

Holly A. Team Member Providence 12 12 2 12 5 7 5 9 4 11 67

Kim H. Team Leader Boston 12 10 2 8 6 10 8 14 6 1 65

Jo‐Ann H. Team Leader Boston 12 2 1 2 5 11 4 10 1 0 36

Kathleen G. Team Member Providence 11 23 9 6 2 3 0 0 0 0 43

La'fayette W. Team Member Providence 10 20 14 7 2 1 0 0 0 0 44

Totals for Each Category of Expertise 303 178 219 256 238 170 273 144 60

nking / IRIS

sit es (Business

nter)

usiness

er)

/ General

edge

ts (Vendor‐

vices)

Accounts

5757

Top 10 External Experts Services/Products Supported

Indegree

Centrality1

Business Online Ban

Enrollm

ent Engine

Onsite Check Deposi

Policies & Procedure

Solutions Cen

Procedures (non‐Bus

Solutions Center

System

s Navigation

(Fiserve, etc.)

Cash Managem

ent /

Product Knowle

E‐statem

ents / Alert

supported serv

Healthcare Savings A

Individual

Score Totals Write‐in Expertise Categories

ACHWendy S. 32 0 0 0 6 13 0 10 0 0 29 ACH (x2); ACH stops, disputes & problems

Joyce B. Adjustments 17 0 0 0 5 10 1 6 0 0 22 Adjustment issues (x4)

Danielle T. 14 0 0 0 3 7 0 6 1 0 17 Wire

Melodie L. 13 0 0 0 3 8 0 6 1 0 18 Wire, international wire issues

Cheryl K. 13 0 0 0 3 3 0 6 0 0 12 ACH (x2); ACH stops, disputes

Paola O. Onsite check deposit 10 0 0 13 1 4 3 6 0 0 27

Nancy R. DDA, Escrow/IOLTA 8 0 0 0 3 5 0 12 0 0 20 Sweeps, IOLTA

Greg G. Acct recon, Positive pay, … 6 0 0 0 3 4 1 8 1 0 17 Positive pay

Michelle F. IRIS R&P, eStatements 5 8 0 1 0 2 2 8 5 0 26

Cindy F. ACH, Wire, Tax cache, Sweeps 5 1 0 0 1 3 0 9 1 0 15 Sweeps

ACH

Wire

Wire

ACH




Quality Control

Responses Shown:

3 = Sometimes

4 = Often

5 = Very Often

Cornell

5858



Quality Control

Excludes Team Leaders, Managers and Director

What‐If Analysis – Non‐Managers Only

5959




Work Network – Intergroup Interactions

Collaboration Sources

BSC PCSTechnical Advisor

Sales Support

Quality Control

ExternalGroups

BSC 33.3% 27.2% 84% 5.4% 0% 13.6%

PCS 13.6% 100% 100% 20% 15% 26.7%

Technical Advisor

16% 100% - 5.9% 0% 33.3%

Sales Support 0.9% 28.2% 35.3% 39% 51.5% 16.1%

olla

bo

rati

on

See

kers

6060

Quality Control 0% 0% 0% 0% 41.7% 0%Co


Work Network – 10 Most Central People

Management

Rank Name Indegree Outdegree

1 Roger B. 34 43

Team Members

Rank Name Indegree Outdegree

1 Andrea B. 28 32

2 Michael O. 32 42

3 Mary O. 29 29

3 Matthew B. 29 29

5 Michael A. 28 44

6 Brian D. 26 38

7 Deb M. 16 34

8 Deb P. 15 N/A

2 Lori A. 20 24

3 Carlos S. 19 20

4 Lucy V. 16 37

5 La’Fayette W. 15 35

6 Michael S. 14 30

6 Kevin H. 14 N/A

6 Holly A. 14 44

6161

8 Jo-Ann H. 15 25

10 Jim D. 12 33

AVERAGE: 23.6 35.2

9 Marc K. 11 24

9 Kathleen G. 11 28

AVERAGE: 16.2 30.4



Director

Business Solutions Center

Preferred Client Services

Project Manager & Technical Advisor

Sales Support Quality Control

Diversity Analysis of the Organization

Team Leader

Online Support

BSC Agent

Online Support

BSC Agent

BSC

Team Leader

Online Support

BSC Agent

Online Support

BSC Agent

BSC

Team Leader

Online Support

Online Support

BSC Agent

BSC Agent

BSC

PCS

PCS

PCSPCS

PCS

Team Leader

Telesales Analyst

Sales Analyst

Sales Analyst

Sales Analyst

Sales

Team Leader

Sales Analyst

Sales Analyst

Sales Analyst

Sales Analyst

Service Admin.

Columbia Park

Columbia Park

Columbia Park

Lockbox Implementation

Customer Service

Customer Service

6262

BSC Agent

Online Support

BSC Agent

BSC Agent

BSC Agent

BSC Agent

BSC Agent

BSC Agent

Online Support

Sales Analyst

Sales Analyst Caucasian (Non-Hispanic)

Asian/Pacific American

Hispanic/Latino AmericanAfrican American


Diversity Analysis of the Organization

Gender All Offices Providence Boston

Male 21 40.4% 13 25.0% 9 17.3%

Female 31 59.6% 18 34.6% 12 23.1%

Total 52 100.0% 31 59.6 21 40.4%

Ethnicity All Offices Providence Boston

Caucasian 38 73.1% 23 44.2% 17 32.7%

Hispanic/Latino 7 13.5% 5 9.6% 1 1.9%

6363

African American 5 9.6% 3 5.8% 2 3.8%

Asian Pacific American

2 3.8% 1 1.9% 1 1.9%

Other 0 0.0% 0 0.0% 0 0.0%

Total 52 100.0% 32 61.5% 21 40.4%



Diversity Analysis of the Work Network

Caucasian (Non-Hispanic)

6464




Female


Diversity Analysis of the Career Advice Network


6565




Female



The Power of Human Connectivity UnleashedUnleashed

66

Christian M. Baldia

[email protected](917) 432-8140

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