disciplined collaboration: nimble networks prof. morten hansen miic october 1, 2010

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