disciplined collaboration: nimble networks prof. morten hansen miic october 1, 2010
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Disciplined Collaboration:Nimble Networks
Prof. Morten Hansen
MIIC October 1, 2010
Some network concepts
Ego-centric vs. Complete networks
Dichotomous, asymmetric networks
Nodal/dyadic attributes vs. network structure
Individual vs. cross-unit networks
Good networks get you two things:
Identify CaptureOpportunities + Value
Networks especially good for lowering search and transfer barriers
Key activity Barrier lowered Network rules Effect
Not-invented-here Rule #1: Build outward, not inward
+ Identify
Opportunities
Search Rule #2: Build diversity, not size
Rule #3: Build bridges, don’t use familiar faces
Rule #4: Build weak ties, not strong
+++
Hoarding Rule #5: Swarm target, don’t go it alone
+ Capture Value
Transfer Rule #6: Switch to strong, don’t rely on the weak
+++
+++ Great effect + Good effect
1. Build your network outward, not inward• Build a sizeable network outside of you own unit and country
Combating tendency to look inward
The IslanderLife is good on our island, why talk to people elsewhere?
Country-to-country:Lots of communication within each…
AustriaBaltics&Estonia France Uk Russia Spain Sweden Italy
Austria 6
Baltics/Est 4.9
France 3.8
Uk 5.1
Russia 6
Spain 5.3
Sweden 4.9
Italy 6
1=avg. no interaction, 6=avg. daily interaction. N=152
… and between a few, especially to Uk (red hot)
AustriaBaltics&Estonia France Uk Russia Spain Sweden Italy
Austria 6 1.3 2 4.3 1 1.7 1.7 1.5
Baltics/Est 1 4.9 1.4 2.3 1.3 1.1 1.4 1
France 1.1 1 3.8 2.2 1 1.5 1.3 1.7
Uk 1.4 1.7 1.7 5.1 1.5 1.7 3 1.78
Russia 2 1.5 2 5.5 6 2 3.5 1
Spain 1.1 1.3 1.5 3.2 1 5.3 1.5 1.2
Sweden 1.1 1.3 1.4 3.4 1.04 1.3 4.9 1
Italy 1.3 1.4 1.7 3.6 1.1 2 1.9 6
1=avg. no interaction, 6=avg. daily interaction. N=152
… but many country-to-country links with low or no interactions (cold blue)
AustriaBaltics&Estonia France Uk Russia Spain Sweden Italy
Austria 6 1.3 2 4.3 1 1.7 1.7 1.5
Baltics/Est 1 4.9 1.4 2.3 1.3 1.1 1.4 1
France 1.1 1 3.8 2.2 1 1.5 1.3 1.7
Uk 1.4 1.7 1.7 5.1 1.5 1.7 3 1.78
Russia 2 1.5 2 5.5 6 2 3.5 1
Spain 1.1 1.3 1.5 3.2 1 5.3 1.5 1.2
Sweden 1.1 1.3 1.4 3.4 1.04 1.3 4.9 1
Italy 1.3 1.4 1.7 3.6 1.1 2 1.9 6
1=avg. no interaction, 6=avg. daily interaction. N=152
Meaning: All roads lead to Uk- A centralized, not a distributed, network
Thick line = strong ties; thin line = weak ties
QuickTime™ and a decompressor
are needed to see this picture.
A distributed network would have many more links across all countries
QuickTime™ and a decompressor
are needed to see this picture.
2. Build Network Diversity, not Size• Build to different kinds of units, knowledge, demographics (gender, nationality, age….), professions, life styles, interests…. - Many contacts to similar people less value
Do you know who this is?
Vivi Nevo“A Media Powerhouse Everyone and Nobody Knows”New York Times
Vivi Nevo“A Media Powerhouse Everyone and Nobody Knows”New York Times
“I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.”
Richard Parsons, Time Warner Chairman
Vivi Nevo“A Media Powerhouse Everyone and Nobody Knows”
New York Times
“I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.”
Richard Parsons, Time Warner Chairman
“The guy sitting next to me was Vivi Nevo, and we just started talking and developed a nice rapport right then.”
John Thain, then-president Goldman Sachs
Vivi Nevo“A Media Powerhouse Everyone and Nobody Knows”
New York Times
“I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.”
Richard Parsons, Time Warner Chairman
“The guy sitting next to me was Vivi Nevo, and we just started talking and developed a nice rapport right then.”
John Thain, then-president Goldman Sachs
“He is everywhere, all the time, like no one I have ever seen.”
Editor in chief of Vanity Fair
Vivi Nevo“A Media Powerhouse Everyone and Nobody Knows”New York Times
“I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.”
Richard Parsons, Time Warner Chairman
“The guy sitting next to me was Vivi Nevo, and we just started talking and developed a nice rapport right then.”
John Thain, then-president Goldman Sachs
“He is everywhere, all the time, like no one I have ever seen.”
Editor in chief of Vanity Fair
“Mr. Nevo has an uncanny ability to network and a knack for putting himself in the right place at the right time” New York Times
The network power of Vivi Nevo:He walks in different worlds
FinanceMediaFirms
Silicon Valley
ArtistsHollywood
John MackHerb AllenGoldman Sachs
Rupert MurdochLachlan MurdochBarry DillerGerald LevinRichard Parsons
Zhang Ziyi (fiance)Harvey Weinstein
Lenny KravitzMadonna
Startups25 startup investmentsYahoo!
Diversity: Different kinds of technologies accessed through network
Melbourne
Santa Rosa, CA
Edinborough
New Jersey
Note: data altered slightly to disguise
Melbourne
Santa Rosa, CA
Edinborough
New Jersey
5 technologies accessed:OpticsDistrib measurementReal-time softwareIC designFault diagnostics
Note: data altered slightly to disguise
Diversity: Different kinds of technologies accessed through network
Two divisions with same no. links- But Edmonton’s more diverse access
Telecom TestBusiness Unit,Melbourne
Santa Rosa, CA
Palo Alto, CA
New Jersey
5 technologies accessed:OpticsDistrib measurementReal-time softwareIC designFault diagnostics
Edmonton, Canada
Col. Springs
Spokane, Wa
11 technologies accessed:OpticsDistrib measurementReal-time softwareIC designFault diagnostics
San Jose, CA
Ditg sig procQuartz resonanceAnal. Sign procTest syst archic.High-speed digtl.RF measurmnt.
Note: data altered slightly to disguise
Few links, few technologies Few links, many technologies
3. Build weak ties, not strong• Weak ties = infrequent contacts, less close• Weak ties provide access to new knowledge and help search in large companies - Not part of cliques that circulate old news
Strong ties(weekly,
Work closely)
Weak ties(once a month or less,
acquaintance)
Too weak(once a year or less, Don’t really know)
Weak ties help you search better
Engineering months spent searching
0123456789
strong ties weak ties
Project types
No. eng. months
Source: Study of 121 project teams and their cross-business networks in Hewlett-Pachard. Hansen, Lovaas, and Mors, Academy of Management Journal, 2003.
Search time lower for teams with weak ties
4. Use Bridges, don’t go it alone• Networks run on intermediaries or bridges - people who help others connect• A good number of bridges needed - Needs to be cultivated, known and used
Let’s Play the Kevin Bacon Game:Who links Kevin Bacon and Hugh Grant?
Connection Lever
Two steps between Kevin Bacon and Hugh Grant (Julia Roberts).
Flatliners(1990)
Notting Hill(1999)
Connection Lever
Bridges build small worlds
I need to talk tosomeone about transfer pricing. Doyou know someone?
Charlie, The Expert
A small-world: a 2-step chain
Connector
Why don’t you callCharlie, he knows
Connection Lever
Bridges in a company’s network- Example
Joakim Claesson ASA
Knut Fredrik Ramstad Media
Inger Lise Eliassen Aftenposten
Thomas Bjerkeli Aftenposten
Vidar Åsebø Aftenposten
Rune Danielsen VG
Trude Erlandsen VG Print
Gunn Helen Hagen VG
Endre Kolbjørnsen FINN
Gunilla Asker SvD
Pierre Bergström SvD
Henrik Olsson Aftonbladet
Anders Berglund Aftonbladet
Sales Success Group
Bridges in a company’s network- Example
Joakim Claesson ASA
Knut Fredrik Ramstad Media Norge
Inger Lise Eliassen Aftenposten
Thomas Bjerkeli Aftenposten
Vidar Åsebø Aftenposten
Rune Danielsen VG
Trude Erlandsen VG Print
Gunn Helen Hagen VG
Endre Kolbjørnsen FINN
Gunilla Asker SvD
Pierre Bergström SvD
Henrik Olsson Aftonbladet
Anders Berglund Aftonbladet
Sales Success Group
Bridges in company’s network- Example
Joakim Claesson ASA
Knut Fredrik Ramstad Media Norge
Inger Lise Eliassen Aftenposten
Thomas Bjerkeli Aftenposten
Vidar Åsebø Aftenposten
Rune Danielsen VG
Trude Erlandsen VG Print
Gunn Helen Hagen VG
Endre Kolbjørnsen FINN
Gunilla Asker SvD
Pierre Bergström SvD
Henrik Olsson Aftonbladet
Anders Berglund Aftonbladet
Sales Success Group
Joakim Pops Webtraffic
Anders Berglund Aftonbladet
Joakim Claesson ASA
Dan Ouchterlony ASA
Pierre Bergström SvD
MikaelSamuelsson E 24
Karin Almers Schibsted Sverige
Web traffic (advertising)
Bridges in a company’s network- Example
Joakim Claesson Schibsted ASA
Knut Fredrik Ramstad Media Norge
Inger Lise Eliassen Aftenposten
Thomas Bjerkeli Aftenposten
Vidar Åsebø Aftenposten
Rune Danielsen VG
Trude Erlandsen VG Print
Gunn Helen Hagen VG
Endre Kolbjørnsen FINN
Gunilla Asker SvD
Pierre Bergström SvD
Henrik Olsson Aftonbladet
Anders Berglund Aftonbladet
Sales Success Group
Joakim Pops Webtraffic
Anders Berglund Aftonbladet
Joakim Claesson Schibsted ASA
Dan Ouchterlony Schibsted ASA
Pierre Bergström SvD
Mikael Samuelsson E 24
Karin Almers Schibsted Sverige
Web traffic (advertising)
Newspaper Online (21 people
Advertising project (28 people)
Strategy online adv. (36 people)
Bridges are vital, yet often overlooked
Who makes a good bridge?
Broad and diverse network Across countries, areas, groupings in the company
Long-tenure (middle managers often)
Worked in many different places in the company
One deep skill area, but many other superficial
knowledge areas
Plays the role informally; takes 10% of his/her time
Connection Lever
Last two rules good for capturing value
Key activity Barrier lowered Network rules Effect
Not-invented-here Rule #1: Build outward, not inward
+ Identify
Opportunities
Search Rule #2: Build diversity, not size
Rule #3: Build bridges, don’t use familiar faces
Rule #4: Build weak ties, not strong
+++
Hoarding Rule #5: Swarm target, don’t go it alone
+ Capture Value
Transfer Rule #6: Switch to strong, don’t rely on the weak
+++
+++ Great effect + Good effect
5. In difficult network situations, need to influence other party (swarming) so that they will help out—it is not automatic
Influence tactics: what can you do?
• Common Link. Enlist people you both know. • Common good. Appeal to the common good
(“one company”)• Reciprocity. “You help me now, I help you later.”• Threaten. “Help me, or else….”• Escalate. Ask your boss to talk to his boss……
Swarm the target
6. Switch from weak to strong ties in tough project situations • You need strong ties (frequent and close) for working together on complicated things - Invest in team-building ahead of time
Setting cross-unit teams up to fail
Strangers ComplicatedWork
+
=
Complicated work: tacit knowledge
"A Béarnaise sauce is simply an egg yolk, a shallot, a little tarragon vinegar, and butter, but it takes years of practice for the result to be perfect."
Fernand Point, often considered the father of modern French cuisine
A common frame: people with strong ties know how to work well together
Muhammad Ali and Angelo Dundee- Deep understanding and relationship
“If he wanted Ali to jab, he wouldn’ttell him to jab; he knew the boxer’s egowouldn’t allow it.”
“I made him feel like he innovated it.If I was the guy that gave him directions, He’d say, ‘Hey, who’s that midget to tell me what to do? No I never gave him a direct order.’”
Solution: Re-engineer strong tie
Create strong tie
ComplicatedWork
+
Summary: 6 factors to build a nimble yet effective network
Effective = Identify Opportunities X Capture Value
Network 1. Built outward 5. Swarming targets
2. Diverse network 6. Switching to strong ties
3. Many weak ties
4. Many Bridges