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Leveraging Networks and Social Leveraging Networks and Social Media for Improved PerformanceMedia for Improved Performance
Dr. Robin Teigland, akaDr. Robin Teigland, akaKarinda Rhode in SLKarinda Rhode in SL
IFL at Stockholm School of EconomicsIFL at Stockholm School of Economics Associate ProfessorAssociate Professor
www.knowledenetworking.orgwww.knowledenetworking.orgwww.slideshare.net/eteiglandwww.slideshare.net/eteigland
Photo: Lundholm, Metro
March 2010March 2010ww.ifl.seww.ifl.se
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Today’s discussionToday’s discussion
Background Background
Introduction to networksIntroduction to networks
Creating value through social mediaCreating value through social media
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"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the change greater than the change
inside, the end is near...." inside, the end is near...."
Jack Welch…Jack Welch…
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A world of rapidly growing knowledge ….A world of rapidly growing knowledge ….
>>A person’s lifetimeA person’s lifetime
in 18th centuryin 18th centuryOne weekOne week
20102010
Fischbowl 2007Fischbowl 2007 44
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……that becomes quickly outdatedthat becomes quickly outdated
50%knowledge
relevant
50%50%knowledgeknowledgeoutdatedoutdated
First year of technical-based
education Third yearof education
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Increasing number of social media
Adapted from FredCavazza.net
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Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?
v=jpEnFwiqdx8&feature=fvwv=jpEnFwiqdx8&feature=fvw
How are these trends affecting you How are these trends affecting you and your organization?and your organization?
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GrowthGrowth
TimeTime
Information Information and knowledgeand knowledge
Human Human absorptive absorptive capacitycapacity
Human capacity cannot keep up…Human capacity cannot keep up…
Adapted from Cohen & Levinthal 1989Adapted from Cohen & Levinthal 1989
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””No one knows everything, No one knows everything, everyone knows something, everyone knows something,
all knowledge resides in all knowledge resides in humanity.”humanity.”
networksnetworks
Adapted from Lévy 1997
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6 degrees of separationEverybody is connected to everybody else by no more than six degrees of separation.
“Small World Phenomenon” by sociologist Stanley Milgram, 1967
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1111
The wisdom of the crowdThe wisdom of the crowd
ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate
OpenOpenInexpensiveInexpensive
SimpleSimpleClose enoughClose enough
Hinton 2007
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Leveraging external resources to find Leveraging external resources to find solutions and solve unsolved problemssolutions and solve unsolved problems
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Transparency: There is nowhere to hide…Transparency: There is nowhere to hide…
http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008
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Traditional media vs social mediaTraditional media vs social media
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http://adultaddstrengths.com/2008/11/05/http://adultaddstrengths.com/2008/11/05/obama-vs-mccain-social-media/obama-vs-mccain-social-media/
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History tends to repeat itself….History tends to repeat itself….Innovation, financial crisis, industrial revolution, Innovation, financial crisis, industrial revolution,
… …
Steam Steam engineengine
Internal Internal combustion combustion
engineengine
MicroelectroniMicroelectronicscs
Late 18Late 18thth C C Late 19Late 19thth C C Late 20Late 20thth C C
Schön 2008Schön 2008
Third industrial revolution?
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A new workforce is appearing…A new workforce is appearing…
Prensky 2001, Beck and Wade 2004, Mahaley 2008 Prensky 2001, Beck and Wade 2004, Mahaley 2008
““Digital Immigrants”Digital Immigrants”““Digital Natives”Digital Natives”
Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal
Learning=Behind the deskLearning=Behind the desk
Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal
Learning=Fun and gamesLearning=Fun and games
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Facebook: Only for people I have met in real life. Mainly
friends but also colleagues and managers
Google Reader/Buzz: All blogs that I read as well as alerts on specific words. A lot of sharing
among friends
LinkedIn: My resume online, one of the first links you see in
My Blog: Interaction with other bloggers, allow me to write
down my own thoughts, makes me pay more attention. A good
way of showing who I amTwitter: I learn new things
everyday, people share links to interesting posts, articles etc.
Good place to network and get to know people in your field
Enckel 2010Enckel 2010
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Enckel 2010Enckel 2010
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2020
Building skills in virtual environmentsBuilding skills in virtual environmentsMy CVMy CV
•Leading a virtual team of 30 Leading a virtual team of 30 individuals from across the globeindividuals from across the globe
•Creating and successfully Creating and successfully executing strategies under executing strategies under
pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict
without face-to-face without face-to-face communicationcommunication
Teigland 2010
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Increasing pressure on Increasing pressure on “traditional” organizations“traditional” organizations
Formal organization/ Formal organization/ Hierarchy Hierarchy
Social organization /Social organization /HeterarchyHeterarchy
Teigland et al. 2005Teigland et al. 2005
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What is a network?What is a network?
A set of actors connected by tiesA set of actors connected by ties
•Ties/LinksTies/Links−Knowledge, trust, Knowledge, trust, team, sit by, dislike, team, sit by, dislike, etc.etc.−Alliance, customer, Alliance, customer, investment, etc.investment, etc.
TieTie•Actors/NodesActors/Nodes
−IndividualsIndividuals−Teams, Teams, organizations, etc.organizations, etc.
ActorActor
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BA
Two individuals with the same number of Two individuals with the same number of contacts…contacts…
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……but with very different access to resourcesbut with very different access to resources
BA
2424
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Bridging unconnected groups brings Bridging unconnected groups brings advantagesadvantages
•More rapid promotionsMore rapid promotions•Greater career mobilityGreater career mobility
•Higher salariesHigher salaries•More adaptable to changing environmentsMore adaptable to changing environments
Brass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & BenassiBrass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & Benassi 2525
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Network dynamics impact Network dynamics impact creativity and innovation….creativity and innovation….
Firm AFirm A
LowLowon-timeon-time
HighHighCreative Creative
HighHighon-timeon-time
Low Low creative creative
Teigland 2003Teigland 2003
HighHighcreativecreative
VirtualVirtualcommunitycommunity
Firm BFirm B
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……..you “hire” his or her network...you “hire” his or her network.
When you hire someone,… When you hire someone,…
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……as well as organizational learning..as well as organizational learning..
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Division 1Division 1 Division 2Division 2
Improved efficiency Improved efficiency over timeover time
Stagnant Stagnant performance over performance over
timetimeSchenkel & Teigland 2008Schenkel & Teigland 2008
Two divisions within Sundlink (Öresund Two divisions within Sundlink (Öresund Bridge)Bridge)
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Comparing performance across firmsComparing performance across firms
Teigland et al 2000 2929
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Networking activities Networking activities recognized and recognized and rewardedrewarded at individual and unit levels at individual and unit levels
Management support for Management support for informal and formalinformal and formal networking activitiesnetworking activities across internal and across internal and external boundariesexternal boundaries Best practice task groupBest practice task group Personal initiativesPersonal initiatives
ExtensiveExtensive socializationsocialization: personnel rotation, : personnel rotation, cross-office teamscross-office teams
A A visionaryvisionary organization organization − Clearly defined mission:Clearly defined mission: ”To make technical contributions ”To make technical contributions
for the advancement and welfare of humanity”for the advancement and welfare of humanity”− Supporting core values,Supporting core values, e.g., teamwork, helpfulness e.g., teamwork, helpfulness− Company-wide goalCompany-wide goal of World’s Best Laboratory of World’s Best Laboratory
Hewlett-Packard (1990s)Hewlett-Packard (1990s)
Teigland et al 2000 3030
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Avoid creating insular networksAvoid creating insular networks
http://www.enronexplorer.com/focus/19185#http://www.enronexplorer.com/focus/19185# 3131
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External networks are growing in External networks are growing in importance!importance!
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Other people around the world
Other employes around the world
Other employees in your country
Co-Workers
Friends
YouAlexEyal
Your managerRami’s manager
Hila
YaronYuval
Eduardo
Ed
Muriel
Peter
Frequent e-mailsInfrequent e-mailsWeb 2.0 Collaboration
Large portion of Large portion of new ideasnew ideas and formal and formal collaboration relationships come from collaboration relationships come from external external
contactscontacts
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My company has blocked my computer from
accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my
phone.
Management Management cannot mandatecannot mandate social relationships social relationships
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http://www.personalizemedia.com/garys-social-media-count/
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Increasing number of social media
Adapted from FredCavazza.net
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My definition of social mediaMy definition of social media
- enable communication & collaboration…
- through user-generated content….
- from one-to-one to many-to-many people…
- across all boundaries
Teigland 2010
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Companies span the full range of use but….
Organizational useOrganizational use
Employee useEmployee use
No use
Ban use
One-way “broadcasting”
Allow use
Encourage use
Two-wayconversations
..the majority are
here
Teigland 2010
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Organizations primarily use social Organizations primarily use social media for branding…..media for branding…..
Blogs YouTube Facebook Twitter LinkedInBranding 30% 28% 23% 12% Customer relations 24% Innovation 28% Networking 25% 25%Marketing 28% Employee communications 23% Learning & training 27% Business intelligence 26% Future employees 15%
B2C companies are more active than B2B B2C companies are more active than B2B Teigland 2010
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Improving internal operationsImproving internal operations
http://billives.typepad.com/portals_and_km/2009/10/intuit-brainstorm-offers-innovation-management.html
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Strengthening internal and external Strengthening internal and external relationships through Facebookrelationships through Facebook
•#1 Applications Lifecycle Management (ALM) & business
mashup•96 of Fortune 100 as
customers•800 employees in 18 countries across globe
•Facebook Fridays: One hour every Friday on Facebook to find fun and connect with co-workers, customers, family,
and friends•Average employee age: 46•27 year old Silicon Valley
company• >90% of employees on FB
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Creating value through external Creating value through external conversationsconversations
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4343http://www.socialmedia.biz/2009/11/02/why-i-love-public-transportation-and-hate-hp/
Check out HP’s
responsiveness!
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$6.5 million as of Dec 2009
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Positive return on social Positive return on social media for INC 500 media for INC 500
companiescompanies
Barnes & Mattsson 2009Barnes & Mattsson 2009
No
Yes88%
12%If you use social media, has it been successful
(hits, comments, leads, sales)?
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Where are the sources of Where are the sources of sustainable competitive advantage?sustainable competitive advantage?
#1
InnovationInnovationNetworks of Networks of relationshipsrelationships
Brand & Brand & ReputationReputation
FIRM
Kaye 1993Kaye 1993
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#1InnovationInnovationNetworks of Networks of
relationshipsrelationships
Brand & Brand & ReputationReputation
FIRM
Where are the sources of Where are the sources of sustainable competitive advantage?sustainable competitive advantage?
Teigland 2010
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ExploitationExploitationImproving Improving
existingexisting value value creation creation activitiesactivities
ExplorationExplorationDeveloping Developing newnew value value creation creation activitiesactivities
Adapted from March 1991Adapted from March 1991
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Threadless:Threadless:What came first What came first
– – the community the community
or the or the company?company?
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eZeZ 230+230+PartnerPartner
ss
30,000+30,000+CommunityCommunitymembersmembers
5,000+5,000+Customers in Customers in 130 countries130 countries
• #1 open source content management #1 open source content management softwaresoftware
• Customers include UN, Vogue, Hitachi, 3M, Customers include UN, Vogue, Hitachi, 3M, MITMIT
• 75 employees in 9 countries (US, Europe & 75 employees in 9 countries (US, Europe & Asia)Asia)
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The backbone of eZ Systems is social The backbone of eZ Systems is social media - media - throughout the value chainthroughout the value chain
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Innovation in the eZ ecosystemInnovation in the eZ ecosystem
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Here comes the Immersive InternetHere comes the Immersive Internet
O’Driscoll 2009O’Driscoll 2009
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““Clearly if social activity migrates to Clearly if social activity migrates to synthetic worlds, economic activity will go synthetic worlds, economic activity will go
there as well.”there as well.” CastranovaCastranova
http://www.youtube.com/watch?v=-ahqjBeknT0http://www.youtube.com/watch?v=-ahqjBeknT0 5454
•USD 3 bln in virtual USD 3 bln in virtual goods sales in 2009, to goods sales in 2009, to grow to USD 12 bln in grow to USD 12 bln in
20122012•Swedish government Swedish government
granted bgranted bank license to virtual world Mind Bank in
2009•USD 330,000 for virtual USD 330,000 for virtual
space station in 2010space station in 2010
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5555
Building skills in virtual environmentsBuilding skills in virtual environmentsMy CVMy CV
•Leading a virtual team of 30 Leading a virtual team of 30 individuals from across the globeindividuals from across the globe
•Creating and successfully Creating and successfully executing strategies under executing strategies under
pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict
without face-to-face without face-to-face communicationcommunication
Teigland 2010
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Innovation workshops bring together Innovation workshops bring together users from across the globeusers from across the globe
Giovacchini, Teigland, Kohler, Helms 2010
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Which professions and industriesWhich professions and industrieswill will notnot be revolutionized? be revolutionized?
5757
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From the mobility of goods From the mobility of goods to the mobility of financial capital to … to the mobility of financial capital to …
...the “mobility” of labor?Teigland 2010
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So, what does all this mean?So, what does all this mean?
Organizations have to ….Organizations have to …. develop their employees’ network leadership develop their employees’ network leadership
skillsskills to build their networks globally - both inside and outto build their networks globally - both inside and out
leverage social medialeverage social media− to win the war for talent to win the war for talent − to innovate for continuous competitive advantageto innovate for continuous competitive advantage− to build their reputation and brandto build their reputation and brand− to build their networks across numerous boundariesto build their networks across numerous boundaries
cultivate an open, knowledge sharing culturecultivate an open, knowledge sharing culture
5959
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6060
Leadership moving forward……Leadership moving forward……
If you love knowledge, set it free…
HierarchyHierarchyLinear, static, process-Linear, static, process-
based organizationbased organization
HeterarchyHeterarchyDynamic, integrated Dynamic, integrated
collaboration networks collaboration networks
Teigland 2010
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6161
DNDNAug 20, 1996Aug 20, 1996
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Thanks and Thanks and see you in world!see you in world!
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.www.knowledgenetworking.orgorg
www.slideshare.net/www.slideshare.net/eteigland eteigland
Photo: Lindholm, Metro