Beyond the org chart: Understanding leadership and influence through - - PowerPoint PPT Presentation

Beyond the org chart:

Understanding leadership and influence through Network Analysis

Louise Kovacs – Madston Black Mario Ferraro – Deloitte Consulting 6th February 2012

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Why analyse networks?

• Huge investment of time designing org structures and org charts, often with

disappointing results

• The informal organisation usually doesn’t receive enough attention
• Informal networks can exist between functions, divisions and Business Units
• Informal networks can bypass formal reporting structures to get results quickly
• Informal networks can also sabotage or jeopardise initiatives
• Mapping these informal networks can help harness the real power and full

potential of the organisation

Org Chart : Skeleton = Informal Network : Central Nervous System

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Understanding leadership and influence dynamics

Network analysis can help us:

• Understand the sources and distribution of power
• Assess leadership potential
• Lead change
• Recruit and retain
• Foster innovation
• Enhance collaboration to achieve results

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How does it work?

• Identify social groups linked by work, friendship, influence or communication

relations

• Analyse the relative position of each “actor” within each group

Fundamental parameters: Aspects of “Centrality”

• Degree Centrality: Number of ties between an actor and other actors
• Closeness Centrality: Distance from each actor to all others
• Betweenness Centrality: Positional advantage from being on the shortest

path between other pairs of actors Typical roles:

• Central Connector: Link most people within a network
• Boundary Spanner: Connect a network to other part of the organisation or
• ther networks
• Information Broker: Keep different subgroups within a network together
• Peripheral Specialist: Accessible to all network members for specialist

expertise

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Data sources

• Network surveys (employee questionnaires)
• Who talks to whom
• Who trusts whom
• Who advises whom on technical matters
• Managers’ impressions of informal networks

Other data sources:

• Email traffic
• Telephone traffic
• Social Network traffic
• Attendance records
• Information can be processed with several commercially available tools (e.g.

UCINET, Pajek, Visone, etc.)

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What do we look for?

• Formal structures
• Communication Networks
• Advice Networks
• Trust Networks

Other features to look for:

• “Imploded Relationships”: Groups and departments with few links to other
• groups. Isolation and “silos syndrome”
• Irregular Communication Patterns: Staff communicate more with external groups

than among themselves. Lack of cohesion

• Fragile Structures: Critical communication links between teams that need to

collaborate are tenuous

• Holes in the network: Missing critical links
• “Bow ties”: Many players dependent on a single employee, who has great power

and control

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Measuring connectedness and influence

Based on Deloitte’s internal Social Network platform (Yammer) The wheel demonstrates that Yammer has connected numerous groups which might not

• therwise have been

connected. Influence can be measured by responses to posts.

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Overlaying Network Analytics with Text Analytics

New York City’s 311 information & complaint hotline:

Mapping the ebb and flow of the information flowing through a network

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Text Mining and Sentiment Analysis

Identifying the leaders and influencers, together with insights into the sentiments of specific employee segments, allow proactive interventions.

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Leadership and Networks

Do networks matter?

Top 20% of sales people had better networks

11/11

Recently promoted VPs had qualitatively different networks to those not promoted Researchers with better networks had higher rate of innovation and more successes High performing MDs had 20% more ties and these connections bridged regions, functions,

Span the

• rganisation in

important ways Cross functions Tenure Specialists Geography

12/11

Structural

3 elements to high performers’ networks

Relational Behavioural

Find ways of extending their capacities Seek complementary expertise Sharing their knowledge Authentic leaders Invest in developing relationships before they are needed Not transactional

Using ONA for talent management and leadership development

13/11

Productive networks high- potential criteria Identify hidden talent Succession planning Provide opportunities for successors to develop network Personal network reports Networks and ONA part of curriculum Programmes facilitate making relevant connections Re-measured regularly

Using Network Analysis

14/11

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Using Network Analysis

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Network type matched to problem

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Problem solving

Louise Kovacs - CEO lkovacs@madstonblack.com.sg Mario Ferraro – Director Human Capital maferraro@deloitte.com