Monday, July 02, 2007

Social Network Analysis Helps Maximize Collective Smarts

Social Network Analysis Helps Maximize Collective Smarts


This particular exercise followed a yearlong study of social networks in Mars’s sprawling research and development division. Top executives there wanted to improve the company’s ability to innovate and were concerned that their scientists weren’t networking enough with outside colleagues. To find out who was working with whom and how scientists were getting new ideas, they decided to map the group’s professional contacts using a process called social network analysis (SNA). In an online survey, R&D managers were asked to name the 15 people they work most closely with and whom they go to for advice, as well as further details of their professional network.

he company has determined, for instance, which scientists were overburdened (too many people were going to them for help) and is working on eliminating the need to go to senior people to get approval for things.

Looking at the company org chart, it turns out, often doesn’t tell the real story about who holds influence, who gives the best advice and how employees are sharing information critical for success. This all takes on greater urgency as millions of baby boomers prepare to retire over the coming decade.

SNA can help companies identify key leaders and then set up mechanisms—such as "communities of practice" or other groups—so that those leaders can pass on their knowledge to colleagues.

Over the past several years, with help from Krebs and other SNA believers, the corporate world has been waking up to the uses for this once arcane social science. Some of the interest stems from disappointment with efforts to build knowledge management databases that were largely ignored by employees.

SNA can also make the lack of connections (or collaboration) painfully clear.

"People sometimes don’t believe that they are disconnected from the rest of the organization, but in our case, a picture spoke a thousand words," Gulas says.

At Mars, the SNA project uncovered a lack of good communication between the snack food division in New Jersey and the food division in Los Angeles. "We found very few bridges between the two groups, and that lack of communication was leading to duplication of efforts in some areas," says Caroline Ruzicka, who was then group research and development manager for Masterfoods USA, a division of Mars, and has since left the company.

By mapping the social networks in their organizations, companies can find out ahead of time who has necessary knowledge and create ways of transferring it to younger employees before it’s too late.

...networking has been built into the development and performance review process, and scientists have to set goals on expanding their networks.

Those who turn out to be highly connected are often high performers, and conversely, those with few connections often are not performing as well.