MGT 535: Managing Strategic NetworksProfessor Marissa KingMarissa.King@yale.edu

MW 1:00-2:20 PM

Course Scope and Mission:Networks of relationships determine who is likely to get a job and get promoted, the innovativeness and profitability of organizations, how effectively industries and communities can coordinate, and the speed at which ideas and innovations spread. Although the importance of social capital is self-evident, few managers and entrepreneurs know how to effectively structure and coordinate their networks. In part, this is because many of the principles that structure a strategic network are not intuitively obvious. The number and type of associates a manager or entrepreneur has is often not as important as how those relations are structured. The goal of this course is to gain a better understanding of how to create, use, and manage networks effectively.

Course structure:Network analysis is both a theoretical perspective and a methodology. Each week will focus on one set of network concepts applied in different organizational settings. We will begin with the simplest network structures and move towards more complex arrangements of people and organizations. The first third of the course examines the way in which patterns of social interaction influence an individual’s ability to achieve their goals (e.g., get a job or get promoted). Here we draw on cases of individual managers to assess how their networks help or hinder their performance. The middle of the course focuses on how networks can affect the ability of organizations to implement change and realize competitive advantage. Finally, we will examine how increasing connectedness in the broader social world is transforming the way business is done.

Evaluation and Grades:Class Participation: 35%Network Self Assessment + Surveys: 25%Field Study: 40%

Field Study:

The final team assignment will allow you to use the theoretical and methodological tools acquired in the course to evaluate either (1) the network around a manager, (2) a team or unit within an organization, or (3) an interorganizational network. While former employers and colleagues make fine objects of study, much insight can also be gained by picking more unusual cases. The project should identify a clear question, problem, or opportunity and then utilize a combination of observation, interview(s), and/or archival records to understand the issue. The study should have three components: an overview of the current situation from a network perspective, a graph of social relations and any relevant network metrics, and a set of recommendations about how to move forward. In the final session of the course, each team should present an overview of their case and the recommendations for moving forward.

The project should be done in teams of 4 to 5 people that you are free to choose on your own. You have considerable latitude in what you choose to study but please meet with meet with me by September 21st to discuss your project idea. Past successful projects have examined network recruitment from schools into Private Equity firms, the role of twitter in the Egyptian protests, and the Yale SOM alumni network in Silicon Valley. In general, your project should apply the concepts and theories discussed in the course to a manager, group, or set of organizations. I generally avoid giving page lengths—quality is far more important than length. However, I would be surprised if you could successfully complete the project in less than 15 pages. Both the final report and class presentations are due on Fri, Oct 14 during class. The class will meet from 11:30 am-1:30 pm.

Network Self-Assessment:The network self-assessment allows you to examine your work relations (through a survey instrument and visualizing your LinkedIn network), your personal relations (through the facebook analyses conducted in class), and the relationship between the two. Based on the readings and metrics discussed in the course you should 1) analyze current strengths and weakness of your existing network and 2) use the readings to develop a strategic action plan to develop your network. The report should be two to three pages of text, excluding tables and figures. The network self-assessment is due on September 14th.

Case Surveys:To help prepare for discussion and create datasets for the labs, there will often be a two or three question survey that will take less than five minutes to complete. The results from these surveys will be used as data in classes. There are no wrong or right answers, the questions are just meant to provoke discussion. If a survey is due, a link will be posted on the syllabus or emailed to the class. Please fill out the survey by 7 am on the day the case will be discussed.

Laptops: Laptops are not permitted in class, except during lab session. Please take notes by hand. If you have a particular problem with this request, please see me. If I don’t hear from you about this individually, I will ask you to close your laptop if I see it open.

August 31st: Characteristics of Effective Networks, Part I

Case: Ross Walker’s Path to Power (OB79-PDF-ENG)

Ross Walker, a 2005 graduate of Stanford Business School, had developed an extensive network for someone at his career stage. He had been chosen to serve as the youngest alumni representative on the Stanford University Board of Trustees, had a great job, was well-known and well-liked by a very large number of people. How did he do it? As his career unfolds, he inevitably faces more intense competition as he moves on to even bigger platforms and more responsibility. Will the qualities that allowed him to develop his network continue to serve him just as well in the future as they had in the past?

Readings: Cross, R. and A. Parker (2004). The Hidden Power of Social Networks. Chapter 1. pp. 2-14.

Ferrazzi, Keith. Never Eat Alone: And Other Secrets to Success, One Relationship at a Time. New York: Doubleday. (Skim)

Cohen, Allan and David Branford. “Influence Without Authority: The Use of Alliance, Reciprocity, and Exchange to Accomplish Work.” Organization Dynamics 17:3, pp. 5-17. (Optional)

September 7th: Characteristics of Effective Networks, Part II

Case: Heidi Roizen

Heidi Roizen, a venture capitalist at SOFTBANK Venture Capital and a former entrepreneur, maintains an extensive personal and professional network. She leverages this network to benefit both herself and others. The case considers the steps she's taken to build and cultivate a network that is both broad and deep.

Readings:

Knoke, David. Note on Centrality. 2 pages.

Burt, Ronald S. 1992. Structural holes: the social structure of competition. Cambridge, MA: Harvard University Press.

September 9th: Your network, Lab Part 1

Readings: Brandt, Check, and Pedrazaz. 2006. “You Must Start Before Day One,” From New Leaders 100-Day Action Plan, 99. 51-68.

Prior to the class please fill a quick online survey available at:

http://yale.qualtrics.com/SE/?SID=SV_eKvIdzJNorKCzeA

It should only take 5 to 10 minutes but we will use the network

Uzzi and Dunlap, “How to Build Your Network,” Harvard Business Review R0512B-PDF-ENG. 10 pages.

Kuwabara, Ko. “Networking Like an Investor.” Columbia Case Works. 11pages.

Easterly, D and J. Kleiberg. 2010. Networks, Crowds, and Markets. Pages 43-63.

Prepare: Prior to class please go to http://apps.facebook.com/namegenweb/ and download your Facebook network. Please save the file as a text file and bring the text file to class. We will analyze this in class.

Go to: http://inmaps.linkedinlabs.com/network and explore visulalizing your LinkedIn network. It may prove helpful to print out a copy of your network and bring it to class in order to facilitate comparisons with your Facebook network.

Developmental Network Questionnaire (Classes V2)

September 12th: Status and Mobility

Case: Leading the Josie Esquivel Franchise

After close to a decade at Lehman Brothers, Josie Esquivel was finally ranked number one in her industry by the Institutional Investor. However, there have been several organizational changes at Lehman recently and Josie has an offer from Morgan Stanley. Should she accept? To make this decision, Esquivel needs to reflect on what made her successful and to consider seriously what it would take to move her "franchise" to another company without compromising her performance as a star.

Readings: Groysberg, Less, and A. Nanda (2008). “Can They Take It With Them? The Portability of Star Knowledge Workers’ Performance”. Mgmt Science, 7, 1213-1230.

Podolny, J. and D. Phillips (1996). “The Dynamics of Organizational Status,” Journal of Industrial and Corporate Change, 453-458 (459 – 471 is optional).

September 14th: Teams and Intraorganizational Networks

Case: Building a Networked Organization: Restructuring the IT Department at MWH

Vic Gulas, the new head of IT at the engineering consulting firm MWH Consulting, is charged with turning a geographically organized department into one organized by function. He knows that the success of the reorganization will depend on effective collaboration, but he cannot get a sense of what collaborative relationships do and do not exist by looking at a formal organizational chart. Instead, Gulas uses organizational network analysis (ONA), a method for mapping relationships among people in a group. In the ONA results, Gulas sees a group still fragmented by geography and constrained by hierarchy and other gaps in connectivity.

Reading: Mehta, Ajay, Andrea Dixon, Daniel Brass and Bruce Robertson. 2006. “The Social Network Ties of Group Leaders: Implications for Group Performance and Leader Reputation.” Organization Science 17: 64-79.

September 19th: Sales and Referral Networks

Case: Hale and Dorr

Hale and Dorr, Boston’s largest law firm, is headed by managing partner, Bill Lee. While the firm has been successful, the industry is getting more competitive. In response, Lee and the firm’s other partners feel that the time has come to formally think about the process of acquiring and retaining customers. Put differently, the firm is thinking about how they should sell their services. The case focuses on two elements of selling: referrals and sales presentation. Bill Lee must decide how to and to what extent it is necessary to focus on the development of the firm’s internal and external referral networks.

September 21st: Brokerage

Case: Jerry Sanders

The Jerry Sanders case recounts how an entrepreneur in the medical devices industry rapidly transformed a technology concept into a virtual company, X-Cardia. The dilemma posed by the case is whether Sanders’ success with X-Cardia was a one-off or can it Sanders can have the same success with another company.

Readings: Santos, Filipe and Kathleen Eisenhardt. 2009. “Constructing Markets and Shaping Boundaries: Entrepreneurial Power in Nascent Fields.” Organization Science 52: 643-671.

September 26th: Negotiation

Case: Basil “Buzz” Hargrove and De Havilland, Inc

In this case we will examine the tactics employed by Basil “Buzz” Hargrove, president of the Canadian Auto Workers and veteran negotiator, to avoid a strike. During the class we will watch video footage of the entire process to understand why Hargrove found it difficult to deal with Merv Gray, the head of the union’s bargaining committee and why representatives from Buzz’s camp found him difficult to deal with. During the course of the case discussion we will examine what Hargrove did right and wrong, as well as what he should do next.

Readings: Gould, Roger V. and Roberto M. Fernandez. 1989. "Structures of Mediation: A Formal Approach to Brokerage in Transaction Networks." Sociological Methodology pp. 89-126.

September 28th: Visitor—Martina Gmur

Please see resources folder for links to background on the World Economic Forum Global Agendas Council.

October 3rd: Your Network--- Lab Part II

Please bring your facebook data to class. We will further analyze this in class. Also answer the second online survey prior to class. The survey will be the same as the one you previously filled out. This will allow us to examine the evolution

Readings:

The Real Life Social Network v2 Slides

An Experimental Study of Search in Global Social Networks Dodds, Muhamad & Watts, Science, 301, August 8, 2003: 827-829

Watts, Duncan Chapters 2 and 3 in Six Degrees. New York: WB Norton. Pp. 43-83.

Watts, Duncan and Peter Dods. “Thresholds, Cascades, and Predictability.”

October 5th: Viral Marketing

Case: Hasbro POX

Hasbro management is preparing for the launch of a new hand-held electronic game. The game has several novel benefits: it allows social engagement through its multiplayer capacity and provides a way to stealthily engage in remote battle sequences. Two proposals for marketing the new game are on the table at Hasbro. Does a viral marketing campaign or more traditional marketing approach make the most sense for the new game?

Watts, D and J Peretti. “Viral Marketing for the Real World.” Harvard Business Review. 2 pages

Elliot, Carl. 2006. “The Drug Pushers.” Atlantic Magazine http://www.theatlantic.com/magazine/archive/2006/04/the-drug-pushers/4714/

October 10th: Local Networks, Market Entry, and Market Structure

Case: Groupon

This case is set in early 2011, after a period of incredible customer and revenue growth for Groupon. Reviewing Groupon's rise, the case explores whether Groupon promotions are really good for local merchants, whether it can continue to thrive amidst increasingly intense competition, and the key reasons for the company's remarkable early success.

Ferrary, M. (2003). “The Gift Exchange in the Social Networks of Silicon Valley.” CaliforniaManagement Review, 45, 4, 120-138. We will focus on pages 128-138.

Fleming, L. and Matt Marx. (2006). “Managing Creativity in Small Worlds.” CaliforniaManagement Review, 48, 4, 6-27.

October 12th: Fieldwork Presentations and Wrap Up