Leveraging social networks and social media for improved performance

transcript

Leveraging Networks and Social Leveraging Networks and Social Media for Improved PerformanceMedia for Improved Performance

Dr. Robin Teigland, akaDr. Robin Teigland, akaKarinda Rhode in SLKarinda Rhode in SL

IFL at Stockholm School of EconomicsIFL at Stockholm School of Economics Associate ProfessorAssociate Professor

www.knowledenetworking.orgwww.knowledenetworking.orgwww.slideshare.net/eteiglandwww.slideshare.net/eteigland

Photo: Lundholm, Metro

March 2010March 2010ww.ifl.seww.ifl.se

Today’s discussionToday’s discussion

Background Background

Introduction to networksIntroduction to networks

Creating value through social mediaCreating value through social media

"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the change greater than the change

inside, the end is near...." inside, the end is near...."

Jack Welch…Jack Welch…

A world of rapidly growing knowledge ….A world of rapidly growing knowledge ….

>>A person’s lifetimeA person’s lifetime

in 18th centuryin 18th centuryOne weekOne week

20102010

Fischbowl 2007Fischbowl 2007 44

……that becomes quickly outdatedthat becomes quickly outdated

50%knowledge

relevant

50%50%knowledgeknowledgeoutdatedoutdated

First year of technical-based

education Third yearof education

Increasing number of social media

Adapted from FredCavazza.net

Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?

v=jpEnFwiqdx8&feature=fvwv=jpEnFwiqdx8&feature=fvw

How are these trends affecting you How are these trends affecting you and your organization?and your organization?

GrowthGrowth

TimeTime

Information Information and knowledgeand knowledge

Human Human absorptive absorptive capacitycapacity

Human capacity cannot keep up…Human capacity cannot keep up…

Adapted from Cohen & Levinthal 1989Adapted from Cohen & Levinthal 1989

””No one knows everything, No one knows everything, everyone knows something, everyone knows something,

all knowledge resides in all knowledge resides in humanity.”humanity.”

networksnetworks

Adapted from Lévy 1997

6 degrees of separationEverybody is connected to everybody else by no more than six degrees of separation.

“Small World Phenomenon” by sociologist Stanley Milgram, 1967

The wisdom of the crowdThe wisdom of the crowd

ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate

OpenOpenInexpensiveInexpensive

SimpleSimpleClose enoughClose enough

Hinton 2007

Leveraging external resources to find Leveraging external resources to find solutions and solve unsolved problemssolutions and solve unsolved problems

Transparency: There is nowhere to hide…Transparency: There is nowhere to hide…

http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008

Traditional media vs social mediaTraditional media vs social media

http://adultaddstrengths.com/2008/11/05/http://adultaddstrengths.com/2008/11/05/obama-vs-mccain-social-media/obama-vs-mccain-social-media/

History tends to repeat itself….History tends to repeat itself….Innovation, financial crisis, industrial revolution, Innovation, financial crisis, industrial revolution,

… …

Steam Steam engineengine

Internal Internal combustion combustion

engineengine

MicroelectroniMicroelectronicscs

Late 18Late 18thth C C Late 19Late 19thth C C Late 20Late 20thth C C

Schön 2008Schön 2008

Third industrial revolution?

A new workforce is appearing…A new workforce is appearing…

Prensky 2001, Beck and Wade 2004, Mahaley 2008 Prensky 2001, Beck and Wade 2004, Mahaley 2008

““Digital Immigrants”Digital Immigrants”““Digital Natives”Digital Natives”

Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal

Learning=Behind the deskLearning=Behind the desk

Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal

Learning=Fun and gamesLearning=Fun and games

Facebook: Only for people I have met in real life. Mainly

friends but also colleagues and managers

Google Reader/Buzz: All blogs that I read as well as alerts on specific words. A lot of sharing

among friends

LinkedIn: My resume online, one of the first links you see in

Google

My Blog: Interaction with other bloggers, allow me to write

down my own thoughts, makes me pay more attention. A good

way of showing who I amTwitter: I learn new things

everyday, people share links to interesting posts, articles etc.

Good place to network and get to know people in your field

Enckel 2010Enckel 2010

1919Teigland 2010Teigland 2010

Building skills in virtual environmentsBuilding skills in virtual environmentsMy CVMy CV

•Leading a virtual team of 30 Leading a virtual team of 30 individuals from across the globeindividuals from across the globe

•Creating and successfully Creating and successfully executing strategies under executing strategies under

pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict

without face-to-face without face-to-face communicationcommunication

Teigland 2010

Increasing pressure on Increasing pressure on “traditional” organizations“traditional” organizations

Formal organization/ Formal organization/ Hierarchy Hierarchy

Social organization /Social organization /HeterarchyHeterarchy

Teigland et al. 2005Teigland et al. 2005

What is a network?What is a network?

A set of actors connected by tiesA set of actors connected by ties

•Ties/LinksTies/Links−Knowledge, trust, Knowledge, trust, team, sit by, dislike, team, sit by, dislike, etc.etc.−Alliance, customer, Alliance, customer, investment, etc.investment, etc.

TieTie•Actors/NodesActors/Nodes

−IndividualsIndividuals−Teams, Teams, organizations, etc.organizations, etc.

ActorActor

Two individuals with the same number of Two individuals with the same number of contacts…contacts…

……but with very different access to resourcesbut with very different access to resources

Bridging unconnected groups brings Bridging unconnected groups brings advantagesadvantages

•More rapid promotionsMore rapid promotions•Greater career mobilityGreater career mobility

•Higher salariesHigher salaries•More adaptable to changing environmentsMore adaptable to changing environments

Brass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & BenassiBrass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & Benassi 2525

Network dynamics impact Network dynamics impact creativity and innovation….creativity and innovation….

Firm AFirm A

LowLowon-timeon-time

HighHighCreative Creative

HighHighon-timeon-time

Low Low creative creative

Teigland 2003Teigland 2003

HighHighcreativecreative

VirtualVirtualcommunitycommunity

Firm BFirm B

……..you “hire” his or her network...you “hire” his or her network.

When you hire someone,… When you hire someone,…

……as well as organizational learning..as well as organizational learning..

Division 1Division 1 Division 2Division 2

Improved efficiency Improved efficiency over timeover time

Stagnant Stagnant performance over performance over

timetimeSchenkel & Teigland 2008Schenkel & Teigland 2008

Two divisions within Sundlink (Öresund Two divisions within Sundlink (Öresund Bridge)Bridge)

Comparing performance across firmsComparing performance across firms

Teigland et al 2000 2929

Networking activities Networking activities recognized and recognized and rewardedrewarded at individual and unit levels at individual and unit levels

Management support for Management support for informal and formalinformal and formal networking activitiesnetworking activities across internal and across internal and external boundariesexternal boundaries Best practice task groupBest practice task group Personal initiativesPersonal initiatives

ExtensiveExtensive socializationsocialization: personnel rotation, : personnel rotation, cross-office teamscross-office teams

A A visionaryvisionary organization organization − Clearly defined mission:Clearly defined mission: ”To make technical contributions ”To make technical contributions

for the advancement and welfare of humanity”for the advancement and welfare of humanity”− Supporting core values,Supporting core values, e.g., teamwork, helpfulness e.g., teamwork, helpfulness− Company-wide goalCompany-wide goal of World’s Best Laboratory of World’s Best Laboratory

Hewlett-Packard (1990s)Hewlett-Packard (1990s)

Teigland et al 2000 3030

Avoid creating insular networksAvoid creating insular networks

http://www.enronexplorer.com/focus/19185#http://www.enronexplorer.com/focus/19185# 3131

External networks are growing in External networks are growing in importance!importance!

Other people around the world

Other employes around the world

Other employees in your country

Co-Workers

Friends

YouAlexEyal

Your managerRami’s manager

YaronYuval

Eduardo

Muriel

Frequent e-mailsInfrequent e-mailsWeb 2.0 Collaboration

Large portion of Large portion of new ideasnew ideas and formal and formal collaboration relationships come from collaboration relationships come from external external

contactscontacts

My company has blocked my computer from

accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my

phone.

Management Management cannot mandatecannot mandate social relationships social relationships

http://www.personalizemedia.com/garys-social-media-count/

Increasing number of social media

Adapted from FredCavazza.net

My definition of social mediaMy definition of social media

- enable communication & collaboration…

- through user-generated content….

- from one-to-one to many-to-many people…

- across all boundaries

Teigland 2010

Companies span the full range of use but….

Organizational useOrganizational use

Employee useEmployee use

No use

Ban use

One-way “broadcasting”

Allow use

Encourage use

Two-wayconversations

..the majority are

Teigland 2010

Organizations primarily use social Organizations primarily use social media for branding…..media for branding…..

Blogs YouTube Facebook Twitter LinkedInBranding 30% 28% 23% 12% Customer relations 24% Innovation 28% Networking 25% 25%Marketing 28% Employee communications 23% Learning & training 27% Business intelligence 26% Future employees 15%

B2C companies are more active than B2B B2C companies are more active than B2B Teigland 2010

Improving internal operationsImproving internal operations

http://billives.typepad.com/portals_and_km/2009/10/intuit-brainstorm-offers-innovation-management.html

Strengthening internal and external Strengthening internal and external relationships through Facebookrelationships through Facebook

•#1 Applications Lifecycle Management (ALM) & business

mashup•96 of Fortune 100 as

customers•800 employees in 18 countries across globe

•Facebook Fridays: One hour every Friday on Facebook to find fun and connect with co-workers, customers, family,

and friends•Average employee age: 46•27 year old Silicon Valley

company• >90% of employees on FB

Creating value through external Creating value through external conversationsconversations

4343http://www.socialmedia.biz/2009/11/02/why-i-love-public-transportation-and-hate-hp/

Check out HP’s

responsiveness!

$6.5 million as of Dec 2009

Positive return on social Positive return on social media for INC 500 media for INC 500

companiescompanies

Barnes & Mattsson 2009Barnes & Mattsson 2009

Yes88%

12%If you use social media, has it been successful

(hits, comments, leads, sales)?

Where are the sources of Where are the sources of sustainable competitive advantage?sustainable competitive advantage?

InnovationInnovationNetworks of Networks of relationshipsrelationships

Brand & Brand & ReputationReputation

Kaye 1993Kaye 1993

#1InnovationInnovationNetworks of Networks of

relationshipsrelationships

Brand & Brand & ReputationReputation

Where are the sources of Where are the sources of sustainable competitive advantage?sustainable competitive advantage?

Teigland 2010

ExploitationExploitationImproving Improving

existingexisting value value creation creation activitiesactivities

ExplorationExplorationDeveloping Developing newnew value value creation creation activitiesactivities

Adapted from March 1991Adapted from March 1991

Threadless:Threadless:What came first What came first

– – the community the community

or the or the company?company?

eZeZ 230+230+PartnerPartner

30,000+30,000+CommunityCommunitymembersmembers

5,000+5,000+Customers in Customers in 130 countries130 countries

• #1 open source content management #1 open source content management softwaresoftware

• Customers include UN, Vogue, Hitachi, 3M, Customers include UN, Vogue, Hitachi, 3M, MITMIT

• 75 employees in 9 countries (US, Europe & 75 employees in 9 countries (US, Europe & Asia)Asia)

The backbone of eZ Systems is social The backbone of eZ Systems is social media - media - throughout the value chainthroughout the value chain

Innovation in the eZ ecosystemInnovation in the eZ ecosystem

Here comes the Immersive InternetHere comes the Immersive Internet

O’Driscoll 2009O’Driscoll 2009

““Clearly if social activity migrates to Clearly if social activity migrates to synthetic worlds, economic activity will go synthetic worlds, economic activity will go

there as well.”there as well.” CastranovaCastranova

http://www.youtube.com/watch?v=-ahqjBeknT0http://www.youtube.com/watch?v=-ahqjBeknT0 5454

•USD 3 bln in virtual USD 3 bln in virtual goods sales in 2009, to goods sales in 2009, to grow to USD 12 bln in grow to USD 12 bln in

20122012•Swedish government Swedish government

granted bgranted bank license to virtual world Mind Bank in

2009•USD 330,000 for virtual USD 330,000 for virtual

space station in 2010space station in 2010

Building skills in virtual environmentsBuilding skills in virtual environmentsMy CVMy CV

•Leading a virtual team of 30 Leading a virtual team of 30 individuals from across the globeindividuals from across the globe

•Creating and successfully Creating and successfully executing strategies under executing strategies under

pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict

without face-to-face without face-to-face communicationcommunication

Teigland 2010

Innovation workshops bring together Innovation workshops bring together users from across the globeusers from across the globe

Giovacchini, Teigland, Kohler, Helms 2010

Which professions and industriesWhich professions and industrieswill will notnot be revolutionized? be revolutionized?

From the mobility of goods From the mobility of goods to the mobility of financial capital to … to the mobility of financial capital to …

...the “mobility” of labor?Teigland 2010

So, what does all this mean?So, what does all this mean?

Organizations have to ….Organizations have to …. develop their employees’ network leadership develop their employees’ network leadership

skillsskills to build their networks globally - both inside and outto build their networks globally - both inside and out

leverage social medialeverage social media− to win the war for talent to win the war for talent − to innovate for continuous competitive advantageto innovate for continuous competitive advantage− to build their reputation and brandto build their reputation and brand− to build their networks across numerous boundariesto build their networks across numerous boundaries

cultivate an open, knowledge sharing culturecultivate an open, knowledge sharing culture

Leadership moving forward……Leadership moving forward……

If you love knowledge, set it free…

HierarchyHierarchyLinear, static, process-Linear, static, process-

based organizationbased organization

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

Teigland 2010

DNDNAug 20, 1996Aug 20, 1996

Thanks and Thanks and see you in world!see you in world!

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin Teiglandrobin.teigland@hhs.serobin.teigland@hhs.se

www.knowledgenetworking.www.knowledgenetworking.orgorg

www.slideshare.net/www.slideshare.net/eteigland eteigland

Photo: Lindholm, Metro