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| Andrew Parker (left) and Rob Cross, co-authors of
The Hidden Power of Social Networks. |
The employees in your organization may be electronically connected, but if they are socially isolated, your business is likely to suffer serious consequences. Rather than in the conference room, some of the most important exchanges in business occur during unplanned everyday conversations in the mailroom, at the coffee machine, and in the hallway.
Seemingly “invisible” social networks do not appear on any formal organizational chart, yet these networks significantly affect performance and innovation. With the proper tools and insights, leaders can learn to successfully manage these networks and even come to see them as a valuable resource.
These were among the messages delivered by some of the world’s most respected thought leaders in the field of social network analysis during a conference Nov. 3-5, 2004, co-sponsored by the University of Virginia’s McIntire School of Commerce and Darden School.
Batten Fellow Rob Cross, Assistant Professor of Management at the McIntire School, opened the conference, “Leading in a Connected World,” by welcoming nearly 150 participants to “God’s country.” His Darden faculty host, Assistant Professor of Business Administration Tim Laseter, collaborated to bring the group together.
Trust Is Key
Cross called the conference the “right idea, at the right time, for the right group” because of the applicability of his social network theory to any organization pursuing excellence. Attendees came from more than 80 organizations, including 3M, Bank of America, the Defense Intelligence Agency, ExxonMobil, Fuji, Goldman Sachs, IBM, Landmark Communications, McKinsey & Company, Microsoft, NASA, Nextel, Pfizer, United Way, World Bank, and Xerox.
The first guest speaker, Larry Prusak, Founder and former Executive Director of the IBM Institute for Knowledge, discussed social capital in a global economy, pointing out that “firms should be organized more like communities—that is, with connectedness, knowledge of one another, and trust.” He emphasized that trust is the most important attribute because without it, he said, “You can’t get work done in an organization.”
He pointed out that this is far more than a mere “touchy-feely concept,” that without trust among individuals, communities, and businesses, the wheels of commerce would clatter to a halt.
Energizers and Vampires
In one of the smaller conference breakout groups, Cross spoke about his research on the role of positive and negative relationships in networks. He looked at top achievers and learned that a high level of technical expertise is not enough to ensure success. A person’s connection to others in the organization is also vital to top performance.
“The ability to create ‘buzz,’ to create energy, to get clients and partners to back what you’re doing, pushes certain people to the top,” he said. “Those are the energizers, and they always know whom to go to in order to get the job done.”
On the flip side, he asked, “Do you work with any people who suck the life out of a room as soon as they walk in? Those are the de-energizers, whom we try to avoid at all costs.” His concise description of de-energizers is “negative on all levels.” When these people find allies, they can bring down organizations.
Driving Innovation through Networks
Associate Professor of Management Andrew Hargadon from the University of California, Davis Graduate School of Management talked about driving innovation through networks. He used the Apple iPod as an example to demonstrate his point. Hargadon said Apple brought the iPod to market in a short time period by working with other companies to develop the product. “Apple did the design of the case and interfaced and collaborated with five other companies, including Sharp and Sony, on the remaining components to bring the product to completion in eight months from start to market,” he said.
His advice: “Find and reward the people who are effective brokers, those who are out visiting vendors to get new ideas rather than working in isolation, trying to win the world alone.”
After the conference, Cross and Laseter will collaborate to produce articles for journals focusing on the application of social network analysis to new product development and/or communities of practice. This research will ultimately help practitioners better understand the specific challenges of engaging strategically important groups in driving innovation and corporate transformation. Students will have the opportunity to meet with Cross and Laseter informally to discuss this dynamic field of research and possible case writing opportunities.
| New Resource:
The Network Roundtable |
The Network
Roundtable at the University of Virginia is available for
business practitioners who want to make use of a network
perspective to enhance the performance of their organizations.
The Network Roundtable: |
| • Provides
training, development, and continuing education for managers
on various relational means of promoting performance |
| • Facilitates
research and application of new ideas by creating
opportunities for leading organizations to work with faculty
from universities around the world |
| • Creates an
effective link between the business community and the
resources of the University of Virginia, including
practitioner access to students, faculty, social programs, and
research publications |
| McIntire Assistant Professor Rob Cross serves as the Network Roundtable Research Director. Cross has worked with more than 70 strategically important networks across a wide range of industries. His award-winning work is widely published in both academic and popular journals. He is also the
co-author of two books:
The Hidden Power of Social Networks: Understanding How Work Really Gets Done in Organizations (Harvard Business School Press) and
Networks in the Knowledge Economy (Oxford University Press). To learn more, contact Cross at 434-924-6475 or
robcross@virginia.edu. |
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