1. Presentation to KM Chicago 12 June 2007 Chris Fletcher—Director, Knowledge Management Asia Pacific region Deloitte Consulting Organisational Network Analysis
3. “ The new currency won’t be intellectual capital. It will be social capital – the collective value of whom we know and what we’ll do for each other.” — James Kouzes, co-author of The Leadership Challenge Business Week – February 2006
4. Social Capital and KM So what is Social Capital? “ In sum, it is the value people produce when they work together to achieve mutual goals. It emerges when people build trust, a shared understanding, and a willingness to cooperate in ways that produce something greater than the sum of their parts” Robin Athey – Its 2008: Do You Know Where Your Talent Is? Connecting People for Performance So what does this mean for KM?
5. The impact of Social Capital on KM A change in the KM model……… Connecting the right people just-in-time, canvassing them to gain their knowledge and advice in the context of a particular business problem or pursuit, synthesizing that knowledge and applying it to the issues at hand Newer thinking: Context & Connection The acquisition, organisation & aggregation, storage and dissemination of content under organisation wide taxonomies using customised tools and repositories, just in case it might be reusable Older thinking: Content & Collection
21. Each question will provide different patterns Rate your understanding of each person’s areas of expertise Who would you typically turn to for assistance in thinking through a complex business problem
27. Shanghai network Deputy Mgrs, Consultants and Analysts on the periphery Director Manager Snr Manager Snr Exec Analyst Consultant Deputy Mgr Level
28. Beijing network Distinct cluster heavily connected by Senior Managers Cluster not connected to rest of Beijing office Director Manager Snr Manager Snr Exec Analyst Consultant Deputy Mgr Level
29. Information Flow: Hierarchy Network (Snr Exec – Manager) Snr Exec, Directors and Senior Managers play a central role in the network Director Manager Snr Manager Snr Exec Level
30. Information flows - Group “ How often do you typically seek work related information from this person” Responses of: Very Frequently/Frequently FMT have little interaction with outside groups & the majority of practitioners are located in Beijing EA has fragmented into two sub-groups causing interaction in the group to be lower than expected. Connections between the sub-groups is primarily at the consultant/analyst level. EA interaction with other groups is also low MFG EA GFSI HCAS S&O E&R FMT TMT Group - - - - - - - 3.3% MFG 50% - 0.8% - - - 1.2% - E&R - - - - 1.0% 10.0% MFG (1) 1.2% - - - - - E&R (2) 17.9% 0.2% 1.2% 0.3% 0.1% 0.2% FMT (41) 3.4% 23.3% 0.6% - - - TMT (10) 0.9% 0.6% 18.7% 0.4% 0.4% 0.8% GFSI (16) 1.7% 1.9% 0.8% 15.0% 1.2% 1.9% HCAS (16) 0.5% 0.5% 0.7% 0.5% 5.0% 0.7% EA (102) 1.1% 2.7% 2.3% 1.0% 0.3% 16.7% S&O (30) FMT TMT GFSI HCAS EA S&O
31. Brokers are leverage points to enhance collaboration “ How often do you typically seek work related information from this person” Responses of: Very Frequently/Frequently Network with top 18 brokers (10% of practice) and peripheral players highlighted Broker Peripheral player Current Analysis Future state Network with top 18 brokers (10% of practice) and peripheral players linked together By linking brokers and peripheral players, there has been a significant improvement in collaboration and information flows around the network Target Actual 15 4.7 Centrality 2 4.1 Cohesion 10% 2.7% Density 15 2 10% Target 76% 28% 59% Change Actual 8.3 Centrality 3.2 Cohesion 4.3% Density
33. Every manager knows that business runs better when people within an organisation know and trust one another -- deals move faster and more smoothly, teams are more productive, people learn more quickly and perform with more creativity. Strong relationships, most managers will agree, are the grease of an organization. Business gets done without them, but not for long and not very well. How to Invest in Social Capital Laurence Prusak Donald J. Cohen Havard Business Review
Columbus opened up trade between old and new world Key agents for change were how much muscle, horse power, wind power, steam power etc each country had and how creatively it was deployed Nation states and muscle shrank the world from size large to size medium 1800 – 1900: global integration driven by falling transport costs due to steam engine and railroad 1900 – 2000: Falling telecom costs due to diffusion of telegraph, telephone, PC, fiberoptics and early www led global integration Era saw the birth & maturation of the global economy – movement of goods and information across continents created global markets and arbitrage in products and labour Key agents of change were multinational companies – going global for markets and labour World shrank from size medium to size small Forces in G1 were countries globalising, in G2 companies globalising, in G3 the dynamic forces in play are unique – the power of the individual to collaborate and compete globally A “flat world platform” is enabling, empowering and enjoining individuals and small groups to go global easily and seamlessly The “flat world platform” is a product of the convergence of the PC, with fiberoptics and the rise of workflow software more individuals from diverse (and non-western) nations are empowered and competitive World has shrunk from size small to size tiny with a flattened playing field
We have all heard about the concept of six degrees of separation – that we are all only six steps away from everyone else. Is this true though? In 1967 a man by the name of Stanley Milgram tested this hypothesis. He randomly selected people from various places in the US to send postcards to one of two targets: one in Massachusetts and one in the American Midwest. The senders knew the recipient's name, occupation, and general location. They were instructed to send the card to a person they knew on a first-name basis who they thought was most likely, out of all their friends, to know the target personally. That person would do the same, and so on, until it was delivered to the target himself/herself. The results showed that 80% of the successfully delivered packages were delivered after four or fewer steps. Almost all the chains were less than six steps. - Gaddafi – my father was a Consul General for Australia in Libya who met him on a number of occasions – by default, you are three handshakes away from Gaddafi - The Queen/Queen Mother – I have met several times as a child – you are now two handshakes away! - Whitlam – came to my house and had dinner – you are only two handshakes away! - Boxing day Tsunami 2004 – I survived – you are one handshake away! - Who do you know? - Anyone in the world is less than six steps away from you….
Network analysis is not new – it has been in existence since the 1930’s. What is new, is its application to business Uncovering hidden networks – the diagram shown is a famous example of a real network in a major oil company – the key here being look at where “Cole” sits in the structure chart, and the central role he plays in the informal network – what would happen if he left or was fired tomorrow? Interactions – between individuals and groups within an organisation – are there roadblocks or breakdowns in relationships that impede information and knowledge transfer – can we increase the number of ties that exist – can we identify key groups central to network success? How does information or knowledge flow in the network – can we see key people facilitating this transfer – are there people bonding groups or are they bridging ties between teams? Does the network represent where the organisation desires to be today – or does it highlight key areas that need to be focused upon – and actions required to be taken to link groups, breakdown network barriers and improve collaboration