Social Networks and Organisational Performance
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The document discusses how social networks impact organizational performance. It describes John Kotter's dual operating system model and how networks influence the diffusion of new ideas and practices. Research presented found that employees with diverse connections across groups performed best and that social learning networks on investment platforms led to higher returns. The document concludes that networks are critical for innovation and performance within organizations.
Social Networks and Organisational Performance
- 1. Social Networks and Organisational Performance Cai Kjaer Optimice www.optimice.com.au www.optimice.com.au 1
- 2. The formal vs informal organisation If you want to lay blame If you want to get work done www.optimice.com.au 2
- 3. Kotters Dual Operating System Sources: Kotter, John P. "Accelerate! How the most innovative companies capitalize on todays rapid-fire strategic challengesand still make their numbers." www.optimice.com.au 3 Harvard Business Review Reprint R1211B (2012). Graphics from http://www.kotterinternational.com/our-principles/accelerate
- 4. Kotters Dual Operating System www.optimice.com.au 4
- 5. Kotters Dual Operating System www.optimice.com.au 5
- 6. www.optimice.com.au 6 When diffusion starts with opinion leaders, the diffusion occurs more rapidly. When diffusion starts with randomly selected people, or those on the margins, it is slower. Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010.
- 7. How fast can we change? Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010. www.optimice.com.au 7
- 8. Peer pressure Get Fit Reward A for getting B fit! Social network incentive scheme worked almost four times more efficiently than a traditional individual-incentive www.optimice.com.au 8 market approach Predictive model: The number of direct interactions that targets had with their buddies was an excellent predictor of how much their behaviour would change AND maintain new practices Exposure to a behaviour of peers predicts idea flow (ie new practices)
- 9. Networks and employee performance A person who has contacts in multiple groups, () can be an advantage in terms of breadth of knowledge, early knowledge, and opportunities or strategically coordinating across groups. Ron Burt, Brokerage & Closure An Introduction to Social Capital. www.optimice.com.au 9
- 10. www.optimice.com.au 10 Team of A-players not equal to success
- 11. Social Learning and Performance Pentland analysed 10m transactions made by 1.6m users on eToro - a social investment trading platform. eToro tagline Connect with other trader & investors and www.optimice.com.au 11 copy their moves Results published in HBR (Nov 2013): Investors who paid attention to the trading strategies of a wide group of people (without following the herd) achieved the highest returns: Operating alone suboptimal Operating as a herd suboptimal Diverse connections - optimal Pentland, Alex Sandy. "Beyond the echo chamber." Harvard Business Review 91.11 (2013): 80-+.
- 12. Social Learning and Performance www.optimice.com.au 12
- 14. Top down vs local decision-making 385 cars 289 cars 460 cars 25% drop 60% improvement www.optimice.com.au 14
- 15. Analysing Yammer Networks www.optimice.com.au 15
- 16. Collaborating Sideways in Yammer www.optimice.com.au 16
- 17. Networks and Career Growth www.optimice.com.au 17
- 18. The Interaction Balance www.optimice.com.au 18 By me: Posts Replies Likes Mentions Notifies To me: Posts Replies Likes Mentions Notifies
- 19. Takeaway & Questions Networks are critical for innovation and organisational performance You can see the connections You can analyse and measure them Predict what will happen Cai Kjaer Email: cai.kjaer@optimice.com.au www.optimice.com.au www.optimice.com.au 19