Organizational Diagnosis using Social Network Analysis (SNA) to Harness the Power of the Informal Workplace
FORGET ORGANIZATION CHARTS. HOW WORK REALLY GETS DONE DEPENDS ON THE EFFICIENCY OF YOUR COMPANY’S SOCIAL NETWORK.
When we consult with organizations on large transformation interventions, a considerable amount of time is spent by the HR teams, as part of the initial diagnosis, in explaining their organizational hierarchy through charts to help us understand ‘how work really gets done here.’
Beyond the organization chart
The organization charts and designations are what we refer to as the formal organization that’s visible from the outside. Over the years, we have learnt that much of the real work of companies happens despite this formal structure. Often what needs attention is the diagnosis of the informal organization or the hidden organization, the networks of relationships that employees form across functions and divisions to accomplish tasks faster. These informal networks can cut through formal reporting procedures to get work done or, as the case may be, to stop work from getting done.
These informal networks can sabotage companies’ best laid plans by blocking communication and fomenting opposition to change. They become the energy sappers, for whom a problem shared is a problem multiplied. Such network of people can act as sponges in de-energizing the others.
At times, managers fail to understand that success depends less on reporting structures and more on these informal web of contacts. Many a times, these managers know only people who are closest to them or are structurally linked to them. But a study of their informal networks would reveal how much knowledge and information flows through them and how little through their formal networks. Learning to identify and map these social links can help managers harness the real power in their companies and understand the dynamics of informal networks. There are times when highly adaptive, informal networks move diagonally and elliptically, and can skip the entire functions to get work done.
Social network analysis [SNA] is the mapping and measuring of relationships and information flow between people, groups, organizations, computers, websites, and other information / knowledge processing entities. The nodes in the network are the people and groups while the links show relationships or flows between the nodes.
SNA provides both a visual and a mathematical analysis of human relationships.
Recently, SNA has become an important tool for organizational consultants seeking to understand the connection between patterns of interaction and business outcomes such as job performance, job satisfaction, adoption of new ideas or technologies, likelihood of information getting shared, and creation of new ideas. Hence, it has become critical to understand these networks, especially, when it comes to any change and transformation initiative taken by an organisation, be it a merger, a new CEO, a new function head, a new strategic partnership, or even, implementation of a new strategy.
Our experience with SNA – A case study
A Social Network analysis was recently undertaken by ODA for a Publishing House – XBZ Publishing (name changed).
We helped the organization take a closer look into their informal personal contacts through which work gets done, information is shared and the play of networks within their organization.
A traditional Organization Chart which “prescribes” that work
and information flow in a hierarchy…
What is shown above is the formal structure of the Editorial team and the hierarchy flows from the Director (Ajith) to the rest of the organization.
But an SNA done for the XYZ Publishing and our analysis reveals quite a different picture of the ‘Real Organization.’
…but social network mapping reveals that work and informationactually flow through a vast web of informal channels
For conducting the SNA for XBZ Publication we went through the following process, which helped us identify the roles played by the members of the informal organizations.
STEP 1: The analysis started with a survey of the entire defined set of employees, with questions which assessed the employees based on various dimensions like:
• Work Interaction
• Grapevine
• Innovation
• Value and Importance
• Expertise, etc.
STEP 2: The response was converted to generate a detailed quantitative and visual summary of the informal network called the ‘SOCIOGRAM.’ This is a “map” which provides an assessment of the quality (or strength) and number of linkages between people in the collaborative network.
STEP 3: Observations and Analysis – We then identified the key players of the network on certain parameters to identify the HUBS, GATEKEEPERS, and PULSE TAKERS, who are identified as entities managing the network, their relationships and interactions.
Referring back to the organization chart, let us take a closer look at the detailed description on the real networks present in the organization. The following three roles recur consistently across any social network:
Ø THE HUBS: These are people who are socially connected to the nth degree, with the highest number of ‘direct ties’ and fit the analogy of a hub-and-spoke system. It is based on the number of direct connections a node has.
Our SNA analysis shows, two people - Anil and Meena are identified as the Hub entities that have the highest degree of centrality.
They, by definition of a Hub, possess the following power / authority in the organization:
• an active player in the network
• typically a very good communicator and transmitter of knowledge and has the trust of people he / she works directly with
• often a connector or hub in the network
• in an advantaged position / designation in the network
• possess the required qualities that attracts people in the network
Ø GATEKEEPERS: These are identified as a central entity position within a network in terms of its ability to make connections to other groups (or functions) within a network. They can do a lot of things to information, which can either be good for the organization, or in some cases be bad. They can color information; they can make it disappear; they can spray their personal bias like a patina on information and have it be forever colored as it goes across the organization.
In the above mentioned case, Sangeeta is identified to be the Gate Keeper of all information, communication and generally:
• holds a favored or powerful position in the network
• represents a node with high betweenness and has great influence over what flows – and what does not – inside the network
• has a greater amount of power over what happens in a network
Ø PULSE TAKERS: The pulse-taker is the least visible, the least intuitive, and to our understanding the most interesting. They have the shortest paths to all others and they are close to everyone else in the network.
We identified Balwinder and Nandan to be the pulse takers who:
• are in an excellent position to monitor the information flow in the network
• have the best visibility into what is happening in the network
• obtain easy access to the hubs, gatekeepers and the rest of the network
Everybody in a network has varying degrees of all three in them. Our analysis has allowed us to develop algorithms to identify all the roles that each person plays and to what extent they play those roles at any given time in an organization.
The diagram shown below clearly demonstrates the placement and connectivity of the key players, to all the other nodes in the network.
STEP 4: Analyzing behavioural aspects of the key players – The entire analysis followed with a one-on-one interaction with the members that helped us understand the behavioral aspects of the key players and endorse their presence in the network as identified above.
Besides this, we were also able to identify the loners in the network, such as Pawan.
Pawan, being a Business Development Manager, has, interestingly, not been interacting with any of the key players or others in the network.
STEP 5: Post the Social Network mapping, we sat down with the management of XYZ Publishing to discuss our analysis, our recommendations and the collaborative steps that could be taken based on the observations.
In general, the more effectively an organization can use its hubs, gatekeepers, and pulse takers to manage information, the more effectively they can make the larger organization manage, leverage and utilize its own information to grow and transform.
Hence, some of the general business applications of SNA could be:
Ø Managing Change and handling human resistance to change
Ø Aligning organisation during Mergers and Acquisitions
Ø Effecting organizational Restructuring
Ø Efficient Decision making and Strategy implementation
Ø To accelerate Innovation
Ø For Leadership Development and Team effectiveness
Ø To improve Performance and Appraisal systems
Ø Identify key players for Succession planning, etc.
Each of the above application could either be the stated business need by the management, or could even arise out of an SNA done to map an organisation for one of the other applications. Each application would need a different set of questions to be asked during Step 1 of the study, and then the subsequent analysis.
In case of XBZ Publishing, we were able to help the organisation identify the key nodes, and look at development action plans for their leadership, based on the SNA, and succession planning, going forward. As a corollary to the study, we even managed to help identify potential problem makers for the organisation!
