Disciplined Collaboration: Nimble Networks

1. Disciplined Collaboration:Nimble Networks Prof. Morten Hansen MIIC October 1, 2010

2. Some network concepts • Ego-centric vs. Complete networks • Dichotomous, asymmetric networks • Nodal/dyadic attributes vs. network structure • Individual vs. cross-unit networks

3. Good networks get you two things: Identify Capture Opportunities + Value

4. Networks especially good for lowering search and transfer barriers

5. 1. Build your network outward, not inward • Build a sizeable network outside of you own • unit and country

6. Combating tendency to look inward The Islander Life is good on our island, why talk to people elsewhere?

7. Country-to-country:Lots of communication within each… 1=avg. no interaction, 6=avg. daily interaction. N=152

8. … and between a few, especially to Uk (red hot) 1=avg. no interaction, 6=avg. daily interaction. N=152

9. … but many country-to-country links with low or no interactions (cold blue) 1=avg. no interaction, 6=avg. daily interaction. N=152

10. Meaning: All roads lead to Uk- A centralized, not a distributed, network Thick line = strong ties; thin line = weak ties

11. A distributed network would have many more links across all countries

12. 2. Build Network Diversity, not Size • Build to different kinds of units, knowledge, • demographics (gender, nationality, age….), • professions, life styles, interests…. • - Many contacts to similar people less value

13. Do you know who this is?

14. Vivi Nevo “A Media Powerhouse Everyone and Nobody Knows” New York Times

15. Vivi Nevo “A Media Powerhouse Everyone and Nobody Knows” New York Times “I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.” Richard Parsons, Time Warner Chairman

16. Vivi Nevo “A Media Powerhouse Everyone and Nobody Knows” New York Times “I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.” Richard Parsons, Time Warner Chairman “The guy sitting next to me was Vivi Nevo, and we just started talking and developed a nice rapport right then.” John Thain, then-president Goldman Sachs

17. Vivi Nevo “A Media Powerhouse Everyone and Nobody Knows” New York Times “I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.” Richard Parsons, Time Warner Chairman “The guy sitting next to me was Vivi Nevo, and we just started talking and developed a nice rapport right then.” John Thain, then-president Goldman Sachs “He is everywhere, all the time, like no one I have ever seen.” Editor in chief of Vanity Fair

18. Vivi Nevo “A Media Powerhouse Everyone and Nobody Knows” New York Times “I first met Vivi at the duck pond in Sun Valley. We shortly became best buds. Vivi is plugged in to everything. He hears everything.” Richard Parsons, Time Warner Chairman “The guy sitting next to me was Vivi Nevo, and we just started talking and developed a nice rapport right then.” John Thain, then-president Goldman Sachs “He is everywhere, all the time, like no one I have ever seen.” Editor in chief of Vanity Fair “Mr. Nevo has an uncanny ability to network and a knack for putting himself in the right place at the right time” New York Times

19. The network power of Vivi Nevo:He walks in different worlds Finance Media Firms John Mack Herb Allen Goldman Sachs Rupert Murdoch Lachlan Murdoch Barry Diller Gerald Levin Richard Parsons Silicon Valley Artists Hollywood Startups 25 startup investments Yahoo! Lenny Kravitz Madonna Zhang Ziyi (fiance) Harvey Weinstein

20. Diversity: Different kinds of technologies accessed through network Melbourne Santa Rosa, CA Edinborough New Jersey Note: data altered slightly to disguise

21. Diversity: Different kinds of technologies accessed through network Melbourne Santa Rosa, CA Edinborough New Jersey 5 technologies accessed: Optics Distrib measurement Real-time software IC design Fault diagnostics Note: data altered slightly to disguise

22. Two divisions with same no. links- But Edmonton’s more diverse access Edmonton, Canada Telecom Test Business Unit, Melbourne Santa Rosa, CA Col. Springs Palo Alto, CA San Jose, CA New Jersey Spokane, Wa 5 technologies accessed: Optics Distrib measurement Real-time software IC design Fault diagnostics 11 technologies accessed: Optics Distrib measurement Real-time software IC design Fault diagnostics Ditg sig proc Quartz resonance Anal. Sign proc Test syst archic. High-speed digtl. RF measurmnt. Few links, many technologies Few links, few technologies Note: data altered slightly to disguise

23. 3. Build weak ties, not strong • Weak ties = infrequent contacts, less close • Weak ties provide access to new knowledge • and help search in large companies • - Not part of cliques that circulate old news Strong ties (weekly, Work closely) Weak ties (once a month or less, acquaintance) Too weak (once a year or less, Don’t really know)

24. Weak ties help you search better Search time lower for teams with weak ties Source: Study of 121 project teams and their cross-business networks in Hewlett-Pachard. Hansen, Lovaas, and Mors, Academy of Management Journal, 2003.

25. 4. Use Bridges, don’t go it alone • Networks run on intermediaries or bridges • - people who help others connect • A good number of bridges needed • - Needs to be cultivated, known and used

26. Connection Lever Let’s Play the Kevin Bacon Game:Who links Kevin Bacon and Hugh Grant?

27. Connection Lever Two steps between Kevin Bacon and Hugh Grant (Julia Roberts). Notting Hill (1999) Flatliners (1990)

28. Connection Lever Bridges build small worlds Why don’t you call Charlie, he knows A small-world: a 2-step chain I need to talk to someone about transfer pricing. Do you know someone? Charlie, The Expert Connector

29. Bridges in a company’s network- Example Sales Success Group

30. Bridges in a company’s network- Example Sales Success Group

31. Bridges in company’s network- Example Sales Success Group Web traffic (advertising)

32. Bridges in a company’s network- Example Sales Success Group Web traffic (advertising) Newspaper Online (21 people Advertising project (28 people) Strategy online adv. (36 people)

33. Connection Lever Bridges are vital, yet often overlooked Who makes a good bridge? • Broad and diverse network • Across countries, areas, groupings in the company • Long-tenure (middle managers often) • Worked in many different places in the company • One deep skill area, but many other superficial knowledge areas • Plays the role informally; takes 10% of his/her time

34. Last two rules good for capturing value

35. 5. In difficult network situations, need to influence other party (swarming) so that they will help out —it is not automatic

36. Swarm the target • Influence tactics: what can you do? • Common Link. Enlist people you both know. • Common good. Appeal to the common good • (“one company”) • Reciprocity. “You help me now, I help you later.” • Threaten. “Help me, or else….” • Escalate. Ask your boss to talk to his boss……

37. 6. Switch from weak to strong ties in tough • project situations • You need strong ties (frequent and close) for • working together on complicated things • - Invest in team-building ahead of time

38. Setting cross-unit teams up to fail Complicated Work Strangers + =

39. Complicated work: tacit knowledge "A Béarnaise sauce is simply an egg yolk, a shallot, a little tarragon vinegar, and butter, but it takes years of practice for the result to be perfect." Fernand Point, often considered the father of modern French cuisine

40. A common frame: people with strong ties know how to work well together Muhammad Ali and Angelo Dundee - Deep understanding and relationship “If he wanted Ali to jab, he wouldn’t tell him to jab; he knew the boxer’s ego wouldn’t allow it.” “I made him feel like he innovated it. If I was the guy that gave him directions, He’d say, ‘Hey, who’s that midget to tell me what to do? No I never gave him a direct order.’”

41. Solution: Re-engineer strong tie Create strong tie Complicated Work +

42. Summary: 6 factors to build a nimble yet effective network Effective = Identify Opportunities X Capture Value Network 1. Built outward 5. Swarming targets 2. Diverse network 6. Switching to strong ties 3. Many weak ties 4. Many Bridges