Network AnalysisHBO - 45-792 Network Analysis I. Fundamentals A. Layers B. Properties II. Seeing Clearly A. Power Exercise B. Life in the Pentagon III.Fine.

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Presentation transcript:

Network AnalysisHBO Network Analysis I. Fundamentals A. Layers B. Properties II. Seeing Clearly A. Power Exercise B. Life in the Pentagon III.Fine Tuning A. Entrepreneurship & Innovation B. Efficiency

Network AnalysisHBO What do we mean by “network”? Your contact network includes... everyone you know everyone you have ever known everyone who knows you A network perspective focuses on... relationships patterns/configurations positions

Network AnalysisHBO Network Layers Advice (key to routine) - problem solving & technical information - prominent players Advice (key to routine) - problem solving & technical information - prominent players Trust (key to change) - share sensitive, risky political information Trust (key to change) - share sensitive, risky political information Communication (key to innovation) - discuss work-related matters - uncovering new ideas & opportunities Communication (key to innovation) - discuss work-related matters - uncovering new ideas & opportunities

Network AnalysisHBO The Formal Chart Shows Who’s on Top Leers (CEO) Software Applications O’Hara (SVP) Bair Stewart Ruiz Field Designs Calder (SVP) Harris Benson Fleming Church Martin Lee Wilson Swinney Carlson Hoberman Fiola Integrated Communications Technologies Lang (SVP) Muller Jules Baker Daven Thomas Zanado Data Control Systems Stern (SVP) Huttle Atkins Kibler $ $

Network AnalysisHBO The Advice Network Reveals the Experts O’Hara (SVP)Calder (SVP) Lang (SVP) Stern (SVP) Bair Ruiz Fiola Hoberman Carlson Swinney Wilson Lee Martin Church Fleming Benson Harris Zanado Thomas Daven Baker Jules Muller Kibler Atkins Huttle Leers (CEO)

Network AnalysisHBO Notice the inter-unit linkages Leers (CEO) Software Applications O’Hara (SVP) Bair Stewart Ruiz Field Designs Calder (SVP) Harris Benson Fleming Church Martin Lee Wilson Swinney Carlson Hoberman Fiola Integrated Communications Technologies Lang (SVP) Muller Jules Baker Daven Thomas Zanado Data Control Systems Stern (SVP) Huttle Atkins Kibler $ $

Network AnalysisHBO The Trust Network Reveals Who Can Get “Buy-In” O’Hara (SVP) Calder (SVP) Lang (SVP) Bair Ruiz Fiola Hoberman Carlson Swinney Lee Martin Church Fleming Benson Harris Thomas Daven Baker Muller Kibler Atkins Huttle Leers (CEO) Stewart

Network AnalysisHBO Notice the inter-unit linkages Leers (CEO) Software Applications O’Hara (SVP) Bair Stewart Ruiz Field Designs Calder (SVP) Harris Benson Fleming Church Martin Lee Wilson Swinney Carlson Hoberman Fiola Integrated Communications Technologies Lang (SVP) Muller Jules Baker Daven Thomas Zanado Data Control Systems Stern (SVP) Huttle Atkins Kibler $ $

Network AnalysisHBO Network Properties Global Network (The Forest) Centrality Density Cohesion Structural Equivalence Ego-centered Network (The Trees) Small World Phenomenon (6 degrees of separation) Strength of Weak Ties Structural Holes Entrepreneurship Diffusion Power You Target 1 2

Network AnalysisHBO Power Plays in Networks “Ye olde kite structure (where is the power)? DegreeClosenessBetweenness A B C D E F G H I J I J H GF E C D BA /17(.53) 9/20(.45) 9/17(.53) 9/20(.45) 9/14(.64) 9/15(.60) 9/21(.43) 9/29(.31) 4/58(.07) 0/58(.00) 2/58(.03) 0/58(.00) 13/58(.22) 14/58(.24) 8/58(.14) 0/58(.00)

Network AnalysisHBO Application Exercise: Life in the Pentagon Roger PamBob Pat Tim Red Tyler Sue Sally Kim Linda Rick Conrad Will Pete Joe Sam

Network AnalysisHBO Structural Hole Conrad Will Pat Linda Sam Rick Roger Joe Tyler Tim BobSally Pam Pete Sue Kim Red Application Exercise: Life in the Pentagon Strong Trusted Ties (showing true structure)

Network AnalysisHBO Structural Hole Entrepreneurship Through Networks Q: How do we learn about new ideas & opportunities? Getting a Job (strength of weak ties) Casual acquaintances Key assumption: dense cluster of strong ties Not a lot of new news when redundant Weak ties serve as a bridge Getting Ahead (structural holes) Not tie strength, but structural hole b/n contacts Acquiring Capabilities (bridging ties) 2 3 1

Network AnalysisHBO Improving Network Efficiency Q: How would you re-structure this networks to increase benefits? you Large network More contacts  more information Contacts require maintenance / time Redundant contacts know the same thing Diversity enhances quality of benefits Opportunity costs Diversity of information per contact Developing non-redundant contacts Q: How do you choose? Disconnected contacts Trusted contacts you

Network AnalysisHBO Building Networks: How Do You Get There? Q: What determines your position in a network (i.e. who your contacts are)? Expertise acquired over the years Mandated by authority Social Similarity Exchange & Reciprocity The Law of Propinquity (nearness, proximity)

Network AnalysisHBO Liability of Connectedness Q: Is there such a thing as too much networking? The “ties that bind” can also be the “ties that blind” Schmooze you lose Power plays by central actor can backfire when dependents connect The dark side of network density

Network AnalysisHBO Summing Up 3Different dimensions important for understanding different aspects of organizational 7Advice 7Trust 7Communication 3Centrality is critical for power & influence 3Knowledge of the network is also a source of power 3New ideas spread through networks 3Diversity (structural holes) fosters innovation