Teigland Leading In Networked MNC

1-1

Leading in a Networked Leading in a Networked Multinational Multinational February 2009February 2009

Dr. Robin TeiglandDr. Robin TeiglandStockholm School of EconomicsStockholm School of Economics

[email protected]@hhs.sewww.knowledgenetworking.orgwww.knowledgenetworking.orgwww.slideshare.net/eteigland www.slideshare.net/eteigland

www.knowledgenetworking.org 2

Understanding networks in Understanding networks in multinational corporationsmultinational corporations

Achieving high performance Achieving high performance in a networked multinational in a networked multinational corporationcorporation

Today’s discussionToday’s discussion


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

>A person’s lifetime

in 18th centuryOne week

2008

Fischbowl 2007


……that becomes quickly outdated ….that becomes quickly outdated ….

50%knowledge

relevant

50%50%knowledgeknowledgeoutdatedoutdated

First year of First year of technical-based technical-based

educationeducation

First year of First year of technical-based technical-based

educationeducation Third yearThird yearof educationof educationThird yearThird year

of educationof education


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

v=pMcfrLYDm2Uv=pMcfrLYDm2U

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


GrowthGrowth

TimeTime

Information and Information and knowledgeknowledge

Human Human absorptive absorptive capacitycapacity

Knowledge is growing exponentially….Knowledge is growing exponentially….

Cohen & Levinthal 1989Cohen & Levinthal 1989


Yet, the world is “shrinking”Yet, the world is “shrinking”

familyfamily

locallocalcolleaguescolleagues

friendfriendss

oldoldcolleaguescolleagues

colleaguecolleaguess

at other at other officesoffices

Just a Just a click click

away…away…virtualvirtual

communities communities

locallocalnetworksnetworks

old old classmatclassmat

eses

avatarsavatars

businessbusinesscontactscontacts

social social media media

contactscontacts

referralsreferrals


The speed of information: The speed of information: The power of social media The power of social media

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

www.knowledgenetworking.org

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

““Small World Phenomenon” by sociologist Small World Phenomenon” by sociologist Stanley Milgram, 1967Stanley Milgram, 1967

Six degrees of separationSix degrees of separation

99


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

10Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky

“Digital Immigrants”“Digital Natives”

Company loyaltyWork ≠ PersonalCompany loyaltyWork ≠ Personal

Professional loyaltyWork = Personal

Professional loyaltyWork = Personal


History tends to repeat itself….History tends to repeat itself….

11

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


””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


Understanding networksUnderstanding networks− Some network basicsSome network basics− What about power and performance?What about power and performance?− Leveraging external networksLeveraging external networks

Achieving high performance in a Achieving high performance in a networked multinationalnetworked multinational



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


Individuals within a firmIndividuals within a firm

Mattsson 2004

< 1 yr1-5 yrs

5-10 yrs10-15 yrs> 15 yrs

Time at firm


Central connectors within one locationCentral connectors within one location

Bottleneck

Teigland 1998

Surprise!!

Stockholm


Stockholm

London

Brussels

HelsinkiMadrid

Copenhagen

Boundary spanners between locationsBoundary spanners between locations

Transferred from

Stockholm

Teigland 1998

San Francisco


Proximal collaborationProximal collaboration

When people are more than 50 When people are more than 50 feet apart, the likelihood of feet apart, the likelihood of

them collaborating more than them collaborating more than once a week is less than once a week is less than

10%.10%.

Allen 1984


Communication still occurs within formal Communication still occurs within formal silossilos

19

•US-based MNC with 30 product US-based MNC with 30 product divisionsdivisions•30,328 people for 3 months in 30,328 people for 3 months in 20062006

• 114 mln emails (114 mln)114 mln emails (114 mln)• 68 calendar meetings 68 calendar meetings

•Where does communication occur?Where does communication occur?•Vast majority is within business unit and functional Vast majority is within business unit and functional boundaries, not across themboundaries, not across them

•Who are the boundary spanners?Who are the boundary spanners?•WomenWomen•Mid- to high-level executivesMid- to high-level executives•Sales & Marketing executivesSales & Marketing executives

Kleinbaum et al 2008Kleinbaum et al 2008


Trust & reciprocity Trust & reciprocity are essential for are essential for

knowledge knowledge exchange in exchange in

networksnetworks


……and most importantly, management and most importantly, management cannot mandatecannot mandate social relationships social relationships

Jan

Lars Pia

Anna

Nils

Bill

Erik

Mike

Al

AlexJohn

Eva

Hans

Miguel

Paul


San Francisco

Stockholm

London

Brussels

Helsinki

MadridCopenhagen

Peripheral players between organizationsPeripheral players between organizations

Teigland 1998

Otherfirms

Electroniccommunities


Dual loyaltiesDual loyalties

Loyalty

Loyalty Loyalty

Loyalty

OrganizationOrganization ProfessionalProfessionalnetworknetwork

Teigland 2003


SEB

Ray-Adams & Sandberg 2000Ray-Adams & Sandberg 2000

Individuals between business firms Individuals between business firms

Interlocking Interlocking directorates of directorates of Sweden’s 110 Sweden’s 110 largest firms, largest firms,

20002000??


But…….But…….

““Lika barn leka bäst”Lika barn leka bäst”People find similar people attractive and People find similar people attractive and

develop relations with people like develop relations with people like themselves themselves

Our networks tend to be Our networks tend to be homogeneoushomogeneous and and not heterogeneousnot heterogeneous

Marsden 1987, Burt 1990Marsden 1987, Burt 1990






What is the relationship What is the relationship between networks and between networks and

power?power?

Power: Access to and control over resourcesPower: Access to and control over resources


Uncovering networks in an organizationUncovering networks in an organization

Formal organizationFormal organization InformalInformal organizationorganization

Teigland et al. 2005Teigland et al. 2005


How does informal power arise?How does informal power arise?

29Krebs 2004

Node 16 gains informal power, Node 16 gains informal power, weakening the boss Node 15’s weakening the boss Node 15’s

power…power…


How does informal power arise?How does informal power arise?

30

……and now N16’s informal power is and now N16’s informal power is greater than the boss N15’s formal greater than the boss N15’s formal

powerpower

……and now N16’s informal power is and now N16’s informal power is greater than the boss N15’s formal greater than the boss N15’s formal

powerpower

Krebs 2004


Betweenness•Control over what

flows in the network•How often are you on

the shortest path between 2

individuals?

Closeness•Access to what flows

in the network•How quickly can you reach all others in the

network?

Your network position is related to power Your network position is related to power

31Krebs 2004


Does performance differ Does performance differ based on one’s based on one’s

networks?networks?


BA

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

BA


Bridging unconnected groups brings Bridging unconnected groups brings advantagesadvantages

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

•More adaptable to changing environmentsMore adaptable to changing environments

Brass, Burt, Podolny & Baron, Sparrowe et al, Gargiulo & Benassi 35


Performance differs based on one’s networkPerformance differs based on one’s network

Firm AFirm A

LowLowon-timeon-time

HighHighCreative Creative

HighHighon-timeon-time

Low Low creative creative

Teigland 2003Teigland 2003

HighHighcreativecreative

VirtualVirtualcommunitycommunity

Firm BFirm B


The strength of weak tiesThe strength of weak ties

Network A’sNetwork A’sknowledge knowledge Network D’sNetwork D’s

knowledge knowledge

Network B’sNetwork B’sknowledge knowledge

Network C’sNetwork C’sknowledge knowledge

Granovetter 1973Granovetter 1973


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

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


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

Section 1Section 1 Section 2Section 2

Improved efficiency Improved efficiency over timeover time

Stagnant Stagnant performance over performance over

timetime

Schenkel & Teigland 2008Schenkel & Teigland 2008


More social get-togethers and coffee More social get-togethers and coffee breaksbreaks are are notnot the solution the solution


““Managing” networks in your organization Managing” networks in your organization

BeforeBefore AfterAfter

Anklam & Welch 2005Anklam & Welch 2005

1. Uncover networks1. Uncover networks

2. Analyze networks2. Analyze networks

3. Improve connectedness3. Improve connectedness


Avoid creating insular networksAvoid creating insular networks

http://www.enronexplorer.com/focus/19185# 42


Comparing across firmsComparing across firms

Teigland et al 2000


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


IBM – “A marketplace for projects” for its IBM – “A marketplace for projects” for its 390,000 employees worldwide390,000 employees worldwide

http://www.slideshare.net/SOMESSO/speaker-1-bettina-kahlau-presentation


“Leading by values is very different …..It is empowering .. Rather than burden our people with excessive controls,

we are trusting them to make decisions and to act based on values...

In today's world, where everyone is so interconnected and interdependent…. If we're going to solve the biggest,

thorniest and most widespread problems in business and society, we have to innovate in ways that truly matter.

And we have to do all this by taking personal responsibility for all of our relationships - with clients, colleagues, partners, investors and the public at large.

This is IBM's mission as an enterprise, and a goal toward which we hope to work with many others, in our industry

and beyond.

46

Samuel Palmisano, IBM Chairman, President, and

CEO


IBM’s Atlas shows the social network of a IBM’s Atlas shows the social network of a topictopic

and how to get to someoneand how to get to someone

Poole 2008


IBM - Convergence in virtual spacesIBM - Convergence in virtual spaces

mentoringmentoring

Green Green Data Data

CenterCenter

SOA SOA TrainingTraining

Play is how we principally learn and principally createPlay is how we principally learn and principally create"" Ray Kurzweil Ray Kurzweil

many tomany tochoose choose fromfrom

IBMIBMLotus Lotus ToolsTools

BMW BMW TrainingTraining

MediaMedia

BrainBrainThinkingThinking

Hamilton, 2009


Are there any benefits from social media, Are there any benefits from social media, or is it all hype?or is it all hype?

49

IBM social software benefits acknowledged by % of survey respondents

87%

84%

84%

77%

74%

42%

60%

65%

65%

0% 20% 40% 60% 80% 100%

Increased skills

Accessed experts quicker

Shared know ledge w ith others

Reused assets

Increased productivity

Improved personal reputation

Increased sense of belonging

Increased sales

Improved customer satisfaction

Poole 2008: IBM Global Technical Services Knowledge Community of Practice Business Impact Survey 2007, completed by approximately 2,300 respondents






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

51

Other people around the world

Other employes around the world

Other employees in your country

Co-Workers

Friends

You

AlexEyal

Your managerRami’s manager

Hila

YaronYuval

Eduardo

Ed

Muriel

Peter

Frequent e-mails

Infrequent e-mails

Web 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


Increasing number of external social Increasing number of external social media sitesmedia sites

Rey 2008


Using social mediaUsing social media

53

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


Facebook Fridays – Embracing social mediaFacebook Fridays – Embracing social media

•#1 Applications Lifecycle Management (ALM) & business mashup

•96 of Fortune 100 as customers•800 employees in 18 countries across globe

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

and friends


Increasing job turnoverIncreasing job turnover

Time

Number of jobs

in lifetime

Estimated time at one organization in Silicon Valley:

~18 months

CNET 2000


Why use these new social media tools? Why use these new social media tools?

Melcrum 10/07


The wisdom of crowds (Surowiecki 2004) The wisdom of crowds (Surowiecki 2004)

ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate

OpenOpenInexpensiveInexpensive

SimpleSimpleClose enoughClose enough

Hinton 2007


Innovations - www.innocentive.comInnovations - www.innocentive.com


Problem solutions - The Goldcorp ChallengeProblem solutions - The Goldcorp Challenge


Creating tomorrow’s solutionsCreating tomorrow’s solutions

Building the house of the futureBuilding the house of the futurein an HSB competition in Second Lifein an HSB competition in Second Life


eZ Systems and the eZ ecosystem: eZ Systems and the eZ ecosystem: An open source business modelAn open source business model

6161

eZeZ PartnersPartners CommunitCommunityy

CustomersCustomers

•#1 open source content management software#1 open source content management software•Enterprise open source – “Grow the cake”Enterprise open source – “Grow the cake”•60 Employees in 8 countries (Europe & Asia)60 Employees in 8 countries (Europe & Asia)•230+ Partners230+ Partners•5000+ Customers5000+ Customers•30,000+ Community members30,000+ Community members

www.ez.nowww.ez.noSkien, NorwaySkien, Norway


Promoting an open innovation attitudePromoting an open innovation attitude

Not all the smart people Not all the smart people work for us. We need to work for us. We need to work with smart people work with smart people inside and outside the inside and outside the

company.company.

The smart people in The smart people in our field work for us.our field work for us.

If you create the most If you create the most and the best ideas in and the best ideas in the industry, you will the industry, you will

win.win.

If you make the best If you make the best use of internal and use of internal and external ideas, you external ideas, you

will win.will win.

Closed attitudeClosed attitude Open attitudeOpen attitude

Chesborough 2003Chesborough 2003



Achieving high performance in a Achieving high performance in a networked multinationalnetworked multinational− Leveraging your networksLeveraging your networks− Leading a global virtual teamLeading a global virtual team



Myths and reality checks about networksMyths and reality checks about networks

I already know what is going on in my network I already know what is going on in my network Those who think they know their network the Those who think they know their network the

best are usually the ones who know the leastbest are usually the ones who know the least

We can’t do much to help informal networksWe can’t do much to help informal networks Informal networks can be “managed” Informal networks can be “managed”

through changing the organizational contextthrough changing the organizational context

To build networks, you have to communicate To build networks, you have to communicate moremore

Networks can be strategically developedNetworks can be strategically developed

Adapted from Cross et al. 2002Adapted from Cross et al. 2002


So, what does this mean for you?So, what does this mean for you?

An actor’s position in a social network, An actor’s position in a social network, i.e., social capital, determines in part the i.e., social capital, determines in part the actor’s actor’s opportunities and constraintsopportunities and constraints

Casper & Murray 2002Casper & Murray 2002

German German biotech biotech

scientistsscientists


High performers leverage networks High performers leverage networks (in top 20% of organization’s HR ratings)(in top 20% of organization’s HR ratings)

Structural – Position themselves at key Structural – Position themselves at key points in the network and leverage points in the network and leverage networks to get things donenetworks to get things done

Relational – Invest in relationships that Relational – Invest in relationships that extend expertise and help to avoid extend expertise and help to avoid learning biases and career trapslearning biases and career traps

Behavioral – Understand and cultivate the Behavioral – Understand and cultivate the value of networks and focus on building value of networks and focus on building high quality relationships, not just big high quality relationships, not just big networksnetworks

66Cross, Parise, & Weiss 2006


Two individuals with the same number of Two individuals with the same number of contacts but with very different access to contacts but with very different access to

resourcesresources

BA

67


BillDept 3

Dept 4

Dept 1

Dept 2

Barb

Structural holes Structural holes Advantages of position in information Advantages of position in information

networksnetworks

Burt 1992, Baker 2003


Build relationships with people Build relationships with people at all hierarchical levelsat all hierarchical levels

Look for complementary Look for complementary skills while maintaining a skills while maintaining a

balance!balance!Cross, Parise, & Weiss 2006Cross, Parise, & Weiss 2006

Higher: Help with making decisions, Higher: Help with making decisions, acquiring resources, developing acquiring resources, developing political awareness, explaining political awareness, explaining organizational activities beyond organizational activities beyond

local settinglocal setting

Equal: Help brainstorm and provide Equal: Help brainstorm and provide specific help, support, and needed specific help, support, and needed

information information

Lower: Provide best sources of Lower: Provide best sources of technical information and expertisetechnical information and expertise

69


Do you know who has informal Do you know who has informal power across the organization?power across the organization?

Teigland 2003

How can you get to know these people?How can you get to know these people?70


Are you connected?Are you connected?

Your subsidiaryYour subsidiarySubsidiary DSubsidiary D

Subsidiary A Subsidiary A Subsidiary B Subsidiary B


Develop three forms of networkingDevelop three forms of networking

OperationalOperational PersonalPersonal StrategicStrategic

Purpose Getting work done efficiently

Enhancing personal and professional development

Developing and achieving future priorities

Members Mostly internal contacts and focused on current demands

Mostly external contacts and focused on current and future interests

Both internal and external contacts and focused on future

Network attributes

Depth through building strong working relationships

Breadth through reaching out to contacts who can refer you to others

Leverage through creating inside-outside links

74Ibarra & Hunter, HBR Jan 2007


……while making sure you while making sure you create value and foster trust.create value and foster trust.

Build relationshipsBuild relationshipsbefore you need them,before you need them,

….….……

75


Those who energize others are higher Those who energize others are higher performers while those who drain energy performers while those who drain energy are lower performersare lower performers

- Get higher commitment from othersGet higher commitment from others- Motivate others so get resources they needMotivate others so get resources they need- Help others learnHelp others learn

How do they do this?How do they do this?- Create a compelling vision – see the possibilities and Create a compelling vision – see the possibilities and

not the roadblocksnot the roadblocks- Enable others to contribute meaningfully to achieving Enable others to contribute meaningfully to achieving

the vision – allowing them to shape the road the vision – allowing them to shape the road - Are trustworthy – honest and not driven by a hidden Are trustworthy – honest and not driven by a hidden

agendaagenda

Higher performers create energy in their Higher performers create energy in their interactions with othersinteractions with others

Cross, Baker, & Parker 2003 76

www.knowledgenetworking.org 7979tschaut’s photostschaut’s photos

ContributioContributionn

ReciprocitReciprocityy

AccumulationAccumulation

ValueValue

The positive spiral of social networksThe positive spiral of social networks



Achieving high performance in a Achieving high performance in a networked multinationalnetworked multinational− Leveraging your networksLeveraging your networks− Leading a global virtual teamLeading a global virtual team



While we know what to do….While we know what to do….

81Network picture from http://n-e-r-v-o-u-s.com/blog/?m=200712

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

based organizationbased organization

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

based organizationbased organization

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

HeterarchyHeterarchyDynamic, integrated Dynamic, integrated

collaboration networks collaboration networks

…….getting there is hard to do!!.getting there is hard to do!!


Profitable Profitable growth growth through higher through higher efficiency and efficiency and innovationinnovation− Preventing the waste of valuable resources - avoid Preventing the waste of valuable resources - avoid

reinventing the wheelreinventing the wheel− Ensuring the use of leading-edge technology and Ensuring the use of leading-edge technology and

thinking across the firmthinking across the firm− Increasing customer satisfaction through shorter lead-Increasing customer satisfaction through shorter lead-

times and consistent behaviortimes and consistent behavior− Creating a competitive cost structureCreating a competitive cost structure− Facilitating breakthrough and incremental innovations Facilitating breakthrough and incremental innovations

through combination of technologies and ideas from through combination of technologies and ideas from across and outside the firmacross and outside the firm

An An attractive workplaceattractive workplace that encourages cross- that encourages cross-functional functional co-operation across the globeco-operation across the globe− Attracting and retaining key individuals Attracting and retaining key individuals

What are the benefits of global networks?What are the benefits of global networks?


Stockholm

London

Brussels

HelsinkiMadrid

Copenhagen

How to bridge islands of competence?How to bridge islands of competence?

Transferred from

Stockholm

Teigland 1998

San Francisco


Increasing focus on Global Virtual TeamsIncreasing focus on Global Virtual Teams

-Obligation-Job requirement

-Value-Commitment

- FriendshipGlue

-Planned-Actively discovered-Serendipitously discovered

Value Creation

-Organize tasks-Meetings-Informal

communications

-One-on-oneActivity

-Assigned-Defined boundary

-Mostly volunteers-Permeable boundary

-Friends & acquaintances-No boundary

Members

-Accomplish goal-Solve problems-Share info & ideas-Expand knowledge

-Share information-Friendship

Purpose

VirtualTeam

Communityof Practice

Personal Network

Adapted from McDermott 2001


What is a Global Virtual Team (GVT)?What is a Global Virtual Team (GVT)?

Manager

Team Member

Team Member

Team Member

Team Leader

Manager

Manager

Manager

A group of people often with complementary skills: A group of people often with complementary skills: • Functioning across boundaries of space, time, and organizationFunctioning across boundaries of space, time, and organization

•Working together to achieve a shared purposeWorking together to achieve a shared purpose•Supported by information and communication technology Supported by information and communication technology


Great potential from GVTs!Great potential from GVTs! ResourcesResources

− Getting the best people, no matter where they areGetting the best people, no matter where they are− Different perspectives from several locationsDifferent perspectives from several locations− Better resources for problem solvingBetter resources for problem solving

ProcessProcess− Improved quality of decision making, eg test ideas in Improved quality of decision making, eg test ideas in

multiple contexts before making final decisionsmultiple contexts before making final decisions− Greater commitment to tasksGreater commitment to tasks

ResultsResults− Improved creativity and innovationImproved creativity and innovation− Higher motivationHigher motivation− More individual need satisfactionMore individual need satisfaction− Higher organizational commitmentHigher organizational commitment− Reduced employee burnout due to travelReduced employee burnout due to travel− Reduced expenses related to travel and office costsReduced expenses related to travel and office costs

Schermerhorn 2004Schermerhorn 2004

Creation of the whole Creation of the whole >> sum of its sum of its partsparts


What are the key challenges to GVTs?What are the key challenges to GVTs?

Think for 5 minutes individually Think for 5 minutes individually about the about the challenges with global virtual teams that challenges with global virtual teams that you are experiencing, have experienced, or you are experiencing, have experienced, or have seen around you.have seen around you.

DiscussDiscuss these with others at your table for these with others at your table for 10 minutes.10 minutes.

Select the 3 Select the 3 most crucial challenges per most crucial challenges per table.table.

Appoint a Appoint a spokespersonspokesperson to present them. to present them. Share Share with the group.with the group.


What are the key challenges to GVTs?What are the key challenges to GVTs?

Three key aspects make working in global Three key aspects make working in global virtual teams different from working in virtual teams different from working in collocated teams:collocated teams:−You’re dealing with greater You’re dealing with greater complexitycomplexity, , −of which you see less, i.e., of which you see less, i.e., reduced visibilityreduced visibility, , −while having to rely on while having to rely on “handicapped” “handicapped”

communicationcommunication..

Within the overall theme of greater Within the overall theme of greater cross-cross-cultural diversitycultural diversity

Baan 2005


Improving GVT performanceImproving GVT performance

Lipnak & Stamps 2007, Coleman 2006

90% people + 10% technology90% people + 10% technology


Teams that focus on the issues of being Teams that focus on the issues of being “virtual” sometimes do well, but often don’t“virtual” sometimes do well, but often don’t

Teams that Teams that focus on being a teamfocus on being a team and getting and getting their job done well generally figure out the their job done well generally figure out the technology anywaytechnology anyway

But But equal technology supportequal technology support for all team for all team members is essential!!members is essential!!−Each team needs to customize its own Each team needs to customize its own

communications strategy based on members communications strategy based on members experience and skillsexperience and skills

Technology is not the most important part!Technology is not the most important part!

Adapted from Maznevski 2001

90% people + 10% technology90% people + 10% technology


Leading from a distance is an absolute Leading from a distance is an absolute necessity …… It will be that way in necessity …… It will be that way in more and more industries. It is a more and more industries. It is a hard skill. People who have never hard skill. People who have never

done it don’t even recognize it as a done it don’t even recognize it as a separate skill.separate skill.

Connaughton & Daly


What characterizes strong GVT What characterizes strong GVT leadership?leadership?

Think for 1-2 minutes individually Think for 1-2 minutes individually about about the challenges of leading virtual teams the challenges of leading virtual teams that you are experiencing, have that you are experiencing, have experienced, or have seen around you.experienced, or have seen around you.

Discuss Discuss these with others at your table these with others at your table for 10 minutes.for 10 minutes.

Select the 3 Select the 3 most crucial challenges per most crucial challenges per table.table.

Appoint a Appoint a spokespersonspokesperson to present them. to present them. ShareShare with the group. with the group.


Characteristics of high-performing teamsCharacteristics of high-performing teams

A clear and elevating goalA clear and elevating goal A task-driven, results-oriented structureA task-driven, results-oriented structure Competent, committed members who work Competent, committed members who work

hardhard A collaborative climateA collaborative climate High standards of excellenceHigh standards of excellence External support and recognitionExternal support and recognition Strong and principled leadershipStrong and principled leadership


You really want to create You really want to create that feeling that you’re that feeling that you’re right down the hallway.right down the hallway.

- Global Marketing Director- Global Marketing Director

Create a feeling of presenceCreate a feeling of presence


Facebook Fridays – Embracing social mediaFacebook Fridays – Embracing social media

•#1 Applications Lifecycle Management (ALM) & business mashup

•96 of Fortune 100 as customers•800 employees in 18 countries across globe

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

and friends


“The frequent interactions with people you have here [at headquarters] are often

attributed to trust. And over distance you have a complete void there. So you are missing one of your fundamental tools. Somehow you’ve got to overcome that. And that’s where the one-on-one calls

come in…”

Accessibility and attentionAccessibility and attention matter more matter more than physical closeness than physical closeness

What can you do with your interaction to make it more

personal?


Communicate, communicate, communicateCommunicate, communicate, communicate

Communicate Communicate timely timely and and continuouslycontinuously

Use at least Use at least two two communicationcommunication channels channels for important messagesfor important messages

Link Link “big picture”“big picture” with with “little picture”“little picture”

Balance and Balance and respect all respect all members’ interestsmembers’ interests

Don’t take silence for agreement


It is easy to under-communicate outside of your immediate sphere of contact everyday. And

that means that people feel lost and disconnected. When they hear about something that everyone back here

[headquarters] knew for weeks was coming and nobody told them, they feel they have

wasted time, effort, and personal investment.

Connaughton & Daly


Avoid creation of an Avoid creation of an “inner circle”“inner circle”

Ensure information equityEnsure information equity− Avoid informing local team members before distant onesAvoid informing local team members before distant ones− Make information open to allMake information open to all− Link “big picture” with “little picture”Link “big picture” with “little picture”

Pay attention to those who are distantPay attention to those who are distant− Avoid giving more attention to those team members who Avoid giving more attention to those team members who

are closer geographically or organizationallyare closer geographically or organizationally− Aim to have weekly / bi-weekly one-on-one chats with all Aim to have weekly / bi-weekly one-on-one chats with all

team members where concerns can be raised and feedback team members where concerns can be raised and feedback givengiven

− Provide access to other connections in your networkProvide access to other connections in your network− Don’t assume anything - silence does not mean people Don’t assume anything - silence does not mean people

agree/disagree, care/don’t care.agree/disagree, care/don’t care.− Constantly check in and get involvementConstantly check in and get involvement

MoreMore difficult in Global Virtual difficult in Global Virtual Teams!!!Teams!!!


Create trust through open, balanced Create trust through open, balanced communication….. communication…..

Provide open forum for discussion between Provide open forum for discussion between all partners, e.g., virtual project spaceall partners, e.g., virtual project space

Ruuska & Teigland 2008


…….and a rhythm in your meetings.and a rhythm in your meetings

• Meets face-to-face every six Meets face-to-face every six monthsmonths

• Meets by formal telephone Meets by formal telephone conference every two monthsconference every two months

11 33 1313997755 1111

Maznevski 2001Maznevski 2001

MonthMonth

11 33 1313997755 1111MonthMonth

• No established rhythm of face-No established rhythm of face-to-face meetingsto-face meetings

• No rhythm of contact using rich No rhythm of contact using rich mediamedia

Ineffective teamIneffective team Effective teamEffective team


Stretch time, don’t overload it Stretch time, don’t overload it

Team Member

Team Member

Team Member

Team Leader

•High performing teams stretch time, ie leverage time differences and technology

•Low performing teams overload time, ie meeting together simultaneously too often


Clearly define virtual team rolesClearly define virtual team roles

Coleman 2006


Develop guidelines Develop guidelines Example: EmailExample: Email

− Answer messages promptly Answer messages promptly − Update your outgoing message when out of the office Update your outgoing message when out of the office − Keep distribution lists currentKeep distribution lists current− Clearly identify the subject in the subject line Clearly identify the subject in the subject line − Prioritize mail by coding top of message with either “Requires Prioritize mail by coding top of message with either “Requires

action” or “For your information (FYI)”action” or “For your information (FYI)”− Send short, straightforward messages (no scrolling required)Send short, straightforward messages (no scrolling required)− Use attachments sparingly Use attachments sparingly − Use websites to communicate large documents Use websites to communicate large documents − Check spelling and grammarCheck spelling and grammar− Send group mail when all recipients actually need it Send group mail when all recipients actually need it − Forward messages with care and consideration Forward messages with care and consideration − When replying to a mail, only keep the relevant part of the mailWhen replying to a mail, only keep the relevant part of the mail− Only write what you are willing to see in the newspaperOnly write what you are willing to see in the newspaper− Avoid ironyAvoid irony− Do not use for urgent messages (use voice-to-voice or face-to-Do not use for urgent messages (use voice-to-voice or face-to-

face)face)− Agree that email is a supplement and not a substitute for Agree that email is a supplement and not a substitute for

personal interactionpersonal interaction

Reeves-Lipscomb 2001


Foster trust to build relationships Foster trust to build relationships

Coleman 2006

Practices and discipline build trust, not who you are in virtual environments


Team configuration matters Team configuration matters when it comes to trust!when it comes to trust!

Fully dispersedFully dispersed Three subgroupsThree subgroups Two subgroupsTwo subgroups

Least conflictLeast conflictMost trustMost trust

Most conflictMost conflictLeast trustLeast trust

Polzer et al 2002Polzer et al 2002


“Work-to-live”culture

Risk avoidance

Knowledgeacquisition

Knowledgesharing

+

—

Cultural differences affect GVT behaviorsCultural differences affect GVT behaviors

+

Teigland 2003


Diversity presents additional challenges Diversity presents additional challenges to achieving high performanceto achieving high performance

Surface diversitySurface diversity− Ethnic background, age, genderEthnic background, age, gender

Structural diversity (Structural diversity (difficult to seedifficult to see))− Different training/educational and occupational Different training/educational and occupational

backgroundsbackgrounds Learning histories, i.e., own patterns of information Learning histories, i.e., own patterns of information

acquisition and use acquisition and use Perspectives on analyzing and solving problems Perspectives on analyzing and solving problems Example: Basic researcher vs politician vs Example: Basic researcher vs politician vs

salespersonsalesperson



Understand individual member’s Understand individual member’s motivations motivations

Low visibility/importanceLow visibility/importance

High visibility/importanceHigh visibility/importance

Develop Develop newnew creative creative

solutionssolutions

RReeuse old use old solutionssolutions

Adapted from Briner, Hastings & Geddes, 1996Adapted from Briner, Hastings & Geddes, 1996

TeamTeammember 1member 1

Team Team member 2member 2


Conduct joint problem solving tasksConduct joint problem solving tasks

Ensure participation by all members in joint tasks Ensure participation by all members in joint tasks from the very beginning of the projectfrom the very beginning of the project− Example: Development of project objectivesExample: Development of project objectives

Use boundary objects to facilitate understandingUse boundary objects to facilitate understanding



Develop collective competenceDevelop collective competence

Collective competenceCollective competenceTeam’s ability to work together Team’s ability to work together

to solve problems and achieve common goalsto solve problems and achieve common goals

Shared normsShared normsShared routinesShared routines

Shared languageShared languageShared understandingShared understanding

Ruuska & Teigland 2008Ruuska & Teigland 2008


Collective competenceCollective competence

It’s really important to get a collective perspective in order for everyone to

understand the project’s core and to develop the project’s goals and outcomes…a critical point is when everyone is on the same page

and is able to look at the project with the same ”set of eyeglasses”.



• ” ”Eld-själ” who burns for cause/drives the processEld-själ” who burns for cause/drives the process•Critical mass of insiders who help Critical mass of insiders who help • Second layer of seekers who askSecond layer of seekers who ask

• Lurkers on outside who follow conversationLurkers on outside who follow conversationWasko & Teigland 2002 114

Build a communityBuild a community


Cap Gemini – NCN MS Electronic CommunityCap Gemini – NCN MS Electronic Community

Background and objectiveBackground and objective− To provide programmers working with Microsoft To provide programmers working with Microsoft

products a forum to help each other solve problems products a forum to help each other solve problems

Organization Organization − 345 programmers across Nordic countries345 programmers across Nordic countries

ActivitiesActivities− Helping each other through posting questions and Helping each other through posting questions and

responses on listserv nicknamed “L2A2L” (Learn to ask responses on listserv nicknamed “L2A2L” (Learn to ask to learn)to learn)

Critical success factorsCritical success factors− ““Eldsjäl” – one who burned for community and walked Eldsjäl” – one who burned for community and walked

the talkthe talk− High level of reciprocityHigh level of reciprocity

Teigland & Wasko 2003


Encourage distributed leadership Encourage distributed leadership ……

Make Make every member responsibleevery member responsible for for

recognizing when task and/or maintenance recognizing when task and/or maintenance

activities are needed and taking actions to activities are needed and taking actions to

provide themprovide them−Leading through Leading through task activities task activities focuses on solving focuses on solving

problems and achieving performance resultsproblems and achieving performance results

−Leading through Leading through maintenance activities maintenance activities helps helps

strengthen and perpetuate the team as a social strengthen and perpetuate the team as a social

systemsystem


How can you turn conflict into How can you turn conflict into creative creative conflictconflict??

117

?

Teigland & Ruuska 2009


High team performance comes from High team performance comes from ongoing processes of positive and ongoing processes of positive and

negative feedbacknegative feedback

118

OtherOtherSpeaking about otherSpeaking about other

SelfSelfSpeaking about oneself or own groupSpeaking about oneself or own group

AdvocacAdvocacyy

Arguing for Arguing for own own

positionposition

High Perf.High Perf.Pos/Neg: 5.6Pos/Neg: 5.6

Medium Perf.Medium Perf.Pos/Neg: 1.9Pos/Neg: 1.9

Low Perf.Low Perf.Pos/Neg: 0.4Pos/Neg: 0.4

Losada & Heaphy 2004Losada & Heaphy 2004

InquiryInquiryExploring Exploring other’s other’s

viewpointviewpoint

Positive Positive – Support, – Support, encouragement, encouragement,

appreciationappreciationNegativeNegative – –

Disapproval, Disapproval, sarcasm, cynicismsarcasm, cynicism


……and make sure you are connected and make sure you are connected

Your subsidiaryYour subsidiarySubsidiary DSubsidiary D

Subsidiary A Subsidiary A Subsidiary B Subsidiary B


Explore new communication technologiesExplore new communication technologies

Text messaging/IMText messaging/IM− Quick connectionsQuick connections

BlogsBlogs− Build reputationBuild reputation− Share information Share information

Wikis Wikis − Collaborate and share knowledgeCollaborate and share knowledge

Forums & message boardsForums & message boards− Get employee feedbackGet employee feedback− Solve mutual problemsSolve mutual problems

Facebook, MySpace, Ning, TwitterFacebook, MySpace, Ning, Twitter− Build relationships, share, explore Build relationships, share, explore

Second Life, QWAQ, other virtual Second Life, QWAQ, other virtual worldsworlds− Build relationshipsBuild relationships− CollaborateCollaborate− Replicate the “water cooler”Replicate the “water cooler”


Survey on collaboration technologiesSurvey on collaboration technologies

Survey of >100 people Survey of >100 people −Over 50% are top executivesOver 50% are top executives−50% in US and 50% elsewhere50% in US and 50% elsewhere

Working on teamsWorking on teams−62% work on teams over 50% of time62% work on teams over 50% of time−72% not sure how to apply collaboration 72% not sure how to apply collaboration

technologiestechnologies−65% have fear of using collaboration technologies65% have fear of using collaboration technologies

Coleman 2006


Facilitating the virtual workforce Facilitating the virtual workforce through virtual worldsthrough virtual worlds

•Completely private virtual business worlds offering Completely private virtual business worlds offering tools to conduct business and collaboratetools to conduct business and collaborate

•Fortune 500: IBM, Intel, Johnson & Johnson, Fortune 500: IBM, Intel, Johnson & Johnson, Motorola, Novartis, Sun Microsystems, Unilever Motorola, Novartis, Sun Microsystems, Unilever


VWs improve global collaborationVWs improve global collaboration

Unilever uses SL to bring together Unilever uses SL to bring together individuals working with Dove across the individuals working with Dove across the

world world

Finding and connecting with Finding and connecting with peoplepeopleBuilding communitiesBuilding communitiesSharing information and Sharing information and knowledgeknowledgeSolving problems and finding Solving problems and finding solutionssolutionsLearning informallyLearning informally

Overcoming diversity Overcoming diversity challenges through creating challenges through creating collective competencecollective competence

Shared understandingShared understandingShared language, normsShared language, norms


Improving global collaboration Improving global collaboration

Creating immersive workspaces in virtual Creating immersive workspaces in virtual worldsworlds

http://www.youtube.com/watch?http://www.youtube.com/watch?v=PnPBQAxUuDEv=PnPBQAxUuDE

By 2012, Gartner estimates that 70% of organizations will have their own private virtual

worlds. (May 2008)


Tomorrow’s meetingTomorrow’s meeting

Telepresence by CiscoTelepresence by Cisco http://www.youtube.com/watch?http://www.youtube.com/watch?

v=rcfNC_x0VvEv=rcfNC_x0VvE


Why use these new tools? Why use these new tools?

Melcrum 10/07


Individuals make Individuals make choiceschoices about how they use their knowledge…about how they use their knowledge…

Knowledge resides in the minds of individualsKnowledge resides in the minds of individuals Individuals make own choices about Individuals make own choices about

knowledge knowledge −Share openly for the benefit of the organizationShare openly for the benefit of the organization−Protect and use only in work practice Protect and use only in work practice

Perception that an individual’s value is diminished if Perception that an individual’s value is diminished if share knowledgeshare knowledge

Knowledge is powerKnowledge is power−Protect and use only in external relationships Protect and use only in external relationships

for own benefitfor own benefit Knowledge leakageKnowledge leakage

−Leave the firm and take knowledge with themLeave the firm and take knowledge with them


By the end of 2008By the end of 2008……

At least 70% of companies without At least 70% of companies without officialofficial support for blogs and wikis will have support for blogs and wikis will have multiple unofficial deploymentsmultiple unofficial deployments

Enterprise social software will be the Enterprise social software will be the biggest new workplace technology biggest new workplace technology success story of this decadesuccess story of this decade

Gartner: “Predicts 2007:Web 2.0 and Consumerization Forge Into Enterprise”, “Wikis and Social Software, 2007”

•Young people ”demand” to have collaboration tools/social media, they will not want to work there otherwise (HR)

•Legal, security reasons for slow deployment, not CIO (technical)


Leadership and learning are indispensable to

each other.”

- John F. Kennedy

Leadership, teaching, and learning are

inextricably interlinked.

- Jack Welch

Leading and learningLeading and learning


“The rate at which individuals and organizations learn may become the only sustainable competitive

advantage, especially in knowledge-intensive industries.”

130

Ray Stata,Chairman Analog Devices


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

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@hhs.se

www.knowledgenetworking.www.knowledgenetworking.orgorg

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

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

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@hhs.se

www.knowledgenetworking.www.knowledgenetworking.orgorg

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


Network sources and acknowledgementsNetwork sources and acknowledgements Books

− Barabási, Linked: The New Science of Networks. Perseus, 2002− Castells, The Rise of the Network Society. Blackwell, 2000− Cross & Parker, The Hidden Power of Social Networks. Harvard

Business School, 2004− Gladwell, The Tipping Point. Abacus, 2001− Scott, Social Network Analysis. Sage, 2000− Teigland, Knowledge Networking, SSE, 2003− Teten & Allen, The Virtual Handshake. American Management Assoc.,

2007 Homepages

− Stephen Bird, people.bu.edu/sbird− Steve Borgatti, www.socialnetworkanalysis.com− Rob Cross, www.robcross.org− International Network for Social Network Analysis

http://www.insna.org/− David Krackhardt, www.andrew.cmu.edu/user/krack/index.shtml− Valdis Krebs, www.orgnet.com− Fredrik Liljeros, www.sociology.su.se/home/Liljeros/index.html− James Moody,

www.soc.duke.edu/~jmoody77/presentations/index.htm − Giancarlo Oriani, www.informalorg.eu (In Italian)− Barry Wellman, www.chass.utoronto.ca/~wellman/

Books− Barabási, Linked: The New Science of Networks. Perseus, 2002− Castells, The Rise of the Network Society. Blackwell, 2000− Cross & Parker, The Hidden Power of Social Networks. Harvard

Business School, 2004− Gladwell, The Tipping Point. Abacus, 2001− Scott, Social Network Analysis. Sage, 2000− Teigland, Knowledge Networking, SSE, 2003− Teten & Allen, The Virtual Handshake. American Management Assoc.,

2007 Homepages

− Stephen Bird, people.bu.edu/sbird− Steve Borgatti, www.socialnetworkanalysis.com− Rob Cross, www.robcross.org− International Network for Social Network Analysis

http://www.insna.org/− David Krackhardt, www.andrew.cmu.edu/user/krack/index.shtml− Valdis Krebs, www.orgnet.com− Fredrik Liljeros, www.sociology.su.se/home/Liljeros/index.html− James Moody,

www.soc.duke.edu/~jmoody77/presentations/index.htm − Giancarlo Oriani, www.informalorg.eu (In Italian)− Barry Wellman, www.chass.utoronto.ca/~wellman/


GVT sourcesGVT sources

Coleman, D. Virtual Team Spaces, 2006.Coleman, D. Virtual Team Spaces, 2006. Connaughton, SL & Daly, JA, “Leading from Afar: Strategies for Connaughton, SL & Daly, JA, “Leading from Afar: Strategies for

Effectively Leading Virtual Teams” in Effectively Leading Virtual Teams” in Virtual Collaborative Teams: Virtual Collaborative Teams: Process, Technologies, & Practice Process, Technologies, & Practice (S. H. Godar & S. P. Ferris, Eds.).(S. H. Godar & S. P. Ferris, Eds.).

Lipnack, J. & Stamps, Lipnack, J. & Stamps, Virtual Teams: Reaching Across Space, Time, Virtual Teams: Reaching Across Space, Time, and Organizations with Technologyand Organizations with Technology. John Wiley & Sons, Inc.: New . John Wiley & Sons, Inc.: New York, 1997.York, 1997.

Maznevski, M. High performance from global virtual teams, 2001.Maznevski, M. High performance from global virtual teams, 2001. Ruuska, I. & Teigland, R. 2009 (Forthcoming). “Ensuring Project Ruuska, I. & Teigland, R. 2009 (Forthcoming). “Ensuring Project

Success through Collective Competence and Conflict Management in Success through Collective Competence and Conflict Management in Public-private Partnerships: A Case Study of a Swedish Triple Helix e-Public-private Partnerships: A Case Study of a Swedish Triple Helix e-government Initiative”. government Initiative”. International Journal of Project ManagementInternational Journal of Project Management..

Schermerhorn, Jr., J., Schermerhorn, Jr., J., ManagementManagement, 2004., 2004.

Robin’s homepage at www.knowledgenetworking.orgRobin’s homepage at www.knowledgenetworking.org

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