The Network Approach to Change Initiatives

617.558.0210 | [email protected] | www.activatenetworks.net1 Newton Executive Park, Suite 100 | Newton, MA 02462

The Network Approach to Change Initiatives

Rob Cross, DBA, and Luke Matthews, PhD

© 2013 Activate Networks 2Connected Insight Summit 2013: www.connectedinsightsummit.com

Activate Networks

Network science based on 15 years of research of leading and analysis from both Harvard and UVA’s participation with leading corporations

Users of ONA include major global organizations and industry leaders

A software company providing the strategic tools to identify and understand the key social connections that drive commercial, organizational, and health results

Utilizes innovative social network analytic technology developed by Prof. Rob Cross of the University of Virginia


Presenters: Rob Cross & Luke Matthews

• Professor of Management at University of Virginia’s McIntire School of Commerce

• Senior Consultant for Activate Networks, Inc.

• Author of Driving Results through Social Networks: How Top Organizations Leverage Networks for Performance and Growth

• Senior Scientific Directorat Activate Networks, Inc.

• Research ranges from social networks of capuchin moneys to Fortune 500 marketing teams

• Covered in The New York Times, The Washington Post, New Scientist

Rob Cross, DBA

Luke Matthews, PhD


Agenda

A Case Study of a telecommunication company’s work with Activate Networks post reorganization

How to drive successful reorganizations and avoid common pitfalls with Organization Network Analysis (ONA)

Ask your questions throughout the presentation and have them answered by Rob and Luke

1. Rob Cross

2. Luke Matthews

3. Q&A


Formal Structure Informal StructureExploration & Production

Zaheer

Schultz

Mitchell

Klimchuck

Angelo

Keller

Smith

GeologyDhillon

Myers

PetrophysicalCrossley

ExplorationAvery

Cordoza

Sutherland

Ramirez

DrillingMcWatters

Waring

ProductionHussan

ReservoirHopper

ProductionMilavec

Senior Vice PresidentMares

Sutherland

Smith

Crossley

Dhillon

Zaheer

Keller

Angelo

Schultz

Cordoza

Klimchuck

Mitchell

McWatters

Myers

Ramirez

Avery

Mares

Hopper

Hussan

Milavec

Waring

Networks are often under-appreciated in comparison to the formal structure


Top 200 leaders transitioning from a regional to a matrix structure

Some Simple Actions…• Expertise Locator to Connect Across Regions.• Re-Defined Approvals on Routine Decisions (e.g. Pricing).• VP’s Used Unit ONAs to Develop Targeted Ties Across Regions.• Global Solution Teams to Leverage Expertise Across Regions.• Performance Management Systems Assessing Support and Responsiveness.• Revised Project Start Up Practices Demanding Reaching Out. • Leadership Development Focused on Offerings and Networks.

= Director= Managing Director= Group/Area VP= Vice President

= Client Executive= Director Service Delivery

= Account Executive= Manager

…Produced Desired Results Rapidly• 17% Increase In Ties To and From AEs… Stories of New Client Wins and

Account Add-On Sales.• 13% Improvement in Cross Function and Business Unit Ties. • Improvement in sales collaborations: 27% increase in ties generating sales

up to $500k; 15% increase for sales between $500k-$2MM and 9% for sales between $2-$10MM.

Low Overall Connectivity, Silos Around Regions and Excessive Focus Up (5% of the Leaders Held 26% of the Ties)


Building connectivity with well-positioned key stakeholders

AT, Other

BR, North Central

BY, South Central

CU, South East

CL, North East

CM, Gov’t

AH, Corporate

EB, India

By connecting BA, the most central person and leader in the Application Services unit (or her direct reports), to the people who are highly central in other regions, the network and awareness of who to go to for what expanded much more rapidly than other matrix-based transitions.


Executive Director

Director 1

Director 2

Director 3

Director 4

Associate Director

1

Associate Director

2

Associate Director

3

Associate Director

4

Associate Director

5

Associate Director

6

Portfolio Lead

Admin

Key Overloaded Individuals: would reducing span of control to 8 DRs help enough? More may be needed?

Formal restructuring and network overload

18 DR 9 DR 0 DR 9 DR 11 DR 9 DR 8 DR 12 DR 0 DR 9 DR 2 DR

11 DR

65

Informal Collaboration: Including direct reports, how many others indicate this person is an important source of information and collaboration?

105 75 75 66 73 41

92

Greater Access: What % of collaborators indicate greater access would be helpful or crucial?

18% 32% 25% 23% 20% 15% 22%

36%

Others seem to be doing well; maybe the solution is unit-specific and not one-size-fits-all?

Subject Matter Experts: Adding DRs can derail their ability to positively impact org.

95

14%


Successful leaders know and work through networks by…

Knowing and utilizing the network’s center.

Leveraging the network’s edge.

Bridging silos where collaboration matters.


Solutions– Re-structure face to face

and virtual meeting formats: Employ mechanisms that create awareness of expertise and vision for integration.

– Paper or electronic expertise profiles: Critical to contain professional information that creates legitimacy and personal information that creates approachability.

– Web 2.0 technologies: Wikis and other tools can take work out of the network and build awareness of expertise.

Building awareness of expertise enables responsiveness and innovation


Case Study

• Company: A major telecommunication company

• Reorg type: Recent acquisition and re-structure

• Issue: Post- change, HR could not assess if the change initiative was successful

• Goal: To use Organizational Network Analysis (ONA) – through survey and email data – to discover what factors drove collaboration, specifically to confirm if the old structure, the legacy group, continued to drive how employees connected


Location?

Rank?

Sub-function?

Role?

Legacy group?

Question: What is driving collaboration post-change?


Method:Email Data Analysis

Timeframe: 15 weeks Criteria: From, To, Date, Time

Response Connection

Volume Connection

From To Date [email protected]

[email protected] 12:30:00 3/31/2012

[email protected] [email protected] 12:31:00 3/31/2012

[email protected]

[email protected] 12:35:00 3/31/2012

[email protected]

[email protected] 12:37:00 3/31/2012

[email protected]

[email protected] 13:15:00 3/31/2012

[email protected]

[email protected] 13:43:00 3/31/2012

[email protected]

[email protected] 14:01:00 3/31/2012

[email protected]

[email protected] 14:26:00 3/31/2012

[email protected]

[email protected] 15:02:00 3/31/2012

[email protected]

[email protected] 15:36:00 3/31/2012



5 6 7 8 9 10 11 12 13 14 150.84

0.86

0.88

0.90

0.92

0.94

0.96

0.98

Email Volume

Correlation to Prior Network

Weeks



An Email Network

• Ties are inferred from email log data

• Nodes are colored by physical location



16

ANI has found that 60-80% of email-inferred network ties are within the same network community.

We can then use network regression techniques to find which org structure features best predict individuals being in different network communities.

Network Community: A community is a group of nodes (individuals) within a network. Individuals within communities are more connected to each other than anyone else.


Location?

Rank?

Sub-function?

Role?

Legacy group?

Question: What is driving collaboration post-change?


Location 2.1 | 1.94

Rank 0.88 | 0.98

Sub-functions 10.1 | 4.89

Role 2.5 | 2.12

Legacy group 1.9 | 1.66

Results: Function, not legacy group.

Effect on being in different network communities Survey | Email


Implications:ONA through all stages of the Reorg

Pre-Change• Collect data on

the existing network structure and collaboration ties to allow for more informed decisions prior to initiating change

During• Monitor how the

change is impacting the network structure and identify which areas need additional targeting

Post-Change• Quantify if and

how initial goals were met

• Understand how the network functions to allow for more informed human capital planning


Questions?


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Discover a revolutionary way to boost the performance of your organization by leveraging your real-world corporate network to:

• Improve Engagement;

• Foster Collaboration;

• Increase Knowledge Sharing; and

• Accelerate Innovation.

Decoding employee networks to boost performance