Disciplined Collaboration: Nimble Networks

1. Disciplined Collaboration:Nimble Networks Prof. Morten Hansen MIIC March 9, 2009

2. Disciplined Collaboration ECONOMIC OPPORTUNITY How much value—and where—from collaboration? BARRIERS TO COLLABORATION Find them, tear them down MANAGEMENT LEVERS Tailor solutions to specific barriers, and don’t overdo

3. Four barriers to collaboration #3. Search Cannot find good help #1. Not-invented here Do not want to reach out # 2. Hoarding Do not want to help # 4. Transfer Cannot work together “wrong chemistry” Ability Motivation

4. Example: Large high-tech company Good Bad 137 72 184 169 N=107 companies. “How to Build Collaborative Advantage.” SMR, 2004

5. MANAGEMENT LEVERS Tailor solutions to specific barriers, and don’t overdo

6. Tailor Unification, People and Connection Levers Unification Lever Connection Lever People Lever • T-shaped leaders • Selecting: • promotion, recruiting • Development • Big Common Goal • Teamwork Value • Language • Internal Networks • External Networks • Knowledge • Management ↓ Not-invented-here ↓ Not-invented-here ↓ Search ↓ Hoarding ↓ Hoarding ↓ Transfer

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

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

9. Networks especially good for lowering search and transfer barriers

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

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

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

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

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

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

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

17. 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

18. Do you know who this is?

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

20. 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

21. 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

22. Diversity in your network survey

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 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

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

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

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

31. 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)

32. 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

33. Last two rules good for capturing value

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

35. Swarm the target • Influence tactics: what can you do? • Common Link. Enlist people you both know. • Common good. Appeal to the common good in Schibsted • (“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……

36. 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

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

38. 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

39. 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.’”

40. Solution: Re-engineer strong tie Different objectives Create strong tie Complicated Work + +

41. 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