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The Mystery Ingredient

Cai Kjaer, April 2012

Presented at the KMLF in Melbourne


Balance in Relationships

Too few

“…who was likely, over time, to become a lower performer and occasionally even fired—these people often had very underdeveloped networks (poor connections on networks of information flow, decision making, problem solving, and career advice) compared with others of similar organizational tenure, and they also tended to be less-‐efficient collaborators, thus taking valuable time from their peers. “

Too many

“The least engaged individuals (small circles) were those who were both (a) heavily sought out for information and (b) whose colleagues indicated that they needed greater access to them in order to be effective.”

Ballinger et al, California Management Review, Vol 53, No 4, Summer 2011


Exercise #1 -‐ Can you work this out?

6 simple statements:

• Belinda knows Louise

• Louise knows May through Dennis

• Don knows May

• Anna knows Louise, but not Don

• Tony knows Anna and Belinda

• Don knows Louise through Dennis


Exercise #1 -‐ Can you work this out?

• So, what has Belinda, Louise, Anna, Tony and Dennis in common?

– The answer is obvious, right?


Visualisation of relationships

• We are basically not very good at thinking quickly! • Visualisation shifts the balance between perception and cognition • Take fuller advantage of the brain's abilities to quickly and precisely process information


A little bit of history – unscientific selection!

• Social maps invented in the 1930’ies – Dr J. L. Moreno mapping ‘Like’ and ‘Dislike’ relationships among 500 schools girls in the New York State School for Girls in the 1930’ies.

•  ‘Six degrees of separation’ Stanley Milgram in 1967 -‐ http://en.wikipedia.org/wiki/Small_world_experiment

• The Strength of weak ties – by Mark Granovetter in 1973

• The Kevin Bacon game -‐ http://oracleoaacon.org/index.php

• 2011 Champions League –FC Barcelona vs Manchester United http://www.fas-‐research.com/cases?id=158&view=detail

• Musician map -‐ http://www.liveplasma.com/

• …etc


Relationships and Business Performance

Efficiency Minimise inefficiencies

Effectiveness High capability and competency

Innovation Connecting disparate worlds


Efficiency: Hierarchies and Speed

• Command and Control vs Side-‐ways collaboration

What’s good/bad about

hierarchies?


High Trust = High Speed

UK Facilities Manager: Trust Index = 32% (n = 762) Private Sector Rail Engineers: Trust Index = 24% (n = 74)

International Petroleum: Trust Index = 14% (n = 644) Australian Engineering Trust IndexTrust Index =

18% (n = 231)


Efficiency – reaching out

• How fast does information and knowledge flow between BUs?


Efficiency: Are you receiving more than you are giving?

Value Sink RECEIVES more

than it gives

-‐200

-‐150

-‐100

-‐50

0

50

100

Value Source GIVES more than

it receives

Give/Receive BALANCE

What’s good/bad about sources and sinks?


Efficiency: Health Innovation Network

“In the last 12 months who did you go to for new ideas or innovative solutions to a challenge you were working?”

Program Office


Efficiency: Health Innovation Network

Program Office X

“In the last 12 months who did you go to for new ideas or innovative solutions to a challenge you were working?”


Organisational Performance -‐ Effectiveness


Effectiveness: Working…

• Experts are colored RED

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What’s good? What’s bad?


Effectiveness – How exposed are you?

Lose the 12% most connected people and you lose 50% of relationships.


Over to you…what’s your profile?


Innovation: Will new ideas be supported by management


Innovation: 3 Es of Innovation

Explore

Engage Exploit

Identify brokers across disparate network clusters to assist in

introducing new ideas / inventions

Facilitate engagement with the core network

players

Use the cohesive core to exploit innovation

opportunities


Innovation Analysis

The 3E’s Model of Innovation views innovation from a ‘networks’ perspective. It promotes the view that successful innovations result from ideas traversing the network of Explorers,

Engagers and Exploiters within organisations


My own ‘disconnected’ worlds

LinkedIn (Inmaps)

Twitter (NodeXL)


Resources

• Reading material – www.optimice.com.au/publications.php

– The Hidden Power of Social Networks

• Trying out – NodeXL (free)

– ONA Surveys

• Training • Consulting


Key Take-‐Aways

• Relationships are a key differentiator. • Become more resilient:

– Efficiency: Optimise your relationship interfaces -‐ are they out of balance?

– Effectiveness: Build connected competence. It is more than the sum of the individuals

– Innovation: Use your relationships wisely to generate ideas and get them implemented

• Download from www.optimice.com.au: – Bringing Social Network Analysis into Mainstream Business

– 3Es of Innovation • Contact me

– [email protected]

– Twitter @caikjaer


KMLF Twitter Map

• Map based on ‘follow’ between people who tweeted using the #KMLF hashtag during the session.

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