Networks in Organizations and a new Network Analysis Tool

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Networks in Organizations and a new Network
Analysis Tool

• KMnetwork Breakfast
• November 4, 2004

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Agenda

• Quick Review of Social Capital and Social Network
  Analysis.
• A couple of examples to illustrate the
  improvements that we are trying to incorporate.
• Analyze the KMnetwork Network

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Social Capital Theory

• The central premise of social capital is that
  social networks have value.

• Social capital refers to the collective value of
  all "social networks" who people know and the
  inclinations that arise from these networks to do
  things for each other "norms of reciprocity".
• - Bowling Alone The Collapse and Revival of
  American Community by Robert D. Putnam (2000).

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Social Capital Theory (cont) 2

• The term social capital emphasizes not just warm
  and cuddly feelings, but a wide variety of quite
  specific benefits that flow from the trust,
  reciprocity, information, and cooperation
  associated with social networks. Social capital
  creates value for the people who are connected.
• Social capital works through multiple channels
  that are dependent on social networks
• information flows
• norms of reciprocity (mutual aid)

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Social Capital Theory (cont) 3

• Examples
• A group of neighbours informally keep an eye on
  one another's homes
• Hassidic Jews trade diamonds without having to
  test each gem for purity

• The motto in Cheers "where everybody knows your
  name"

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Social Network Analysis (SNA)

• SNA is seen as a sub discipline by Social
  Capitalists or as its own discipline by
  participants.
• Focuses on mathematical descriptions of social
  relations, predominantly networks.

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What we want to do?

• Use the techniques that have been developed by
  the SNA world and apply them to more robust
  descriptions of Social Capital.
• This means network diagramming but with more
  dimensions.

Traditional SNA tools
The new tools
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Cross Example
Jones
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Cross Example (cont)
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Silo Example
Formal Organizational Chart
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Next Steps

• Acton is going to continue working with a current
  client to refine the methodology.
• Discussions are underway to form a multi-client
  study group to further explore the use and power
  of SNA as a tool for organizations
• Dave_at_consultacton.com