White paper. network analysis. in organizational change. Your business technologists. Powering progress

Transcription

1 White paper Susing social network analysis in organizational change Your business technologists. Powering progress

2 Using Social Network Analysis in Organizational Change When a company goes through an organizational change program, there is often a lack of knowledge about actual relationships within the company and about single points of failure or bottlenecks. There is also often a lack of ability to measure effectiveness of collaboration within the organization. The objective of this whitepaper is to demonstrate that organizations can change more effectively, efficiently and less painfully by gaining insights into the informal networks that exist within them by using Social Network Analysis (SNA) methodologies and tooling. It also seeks to show how SNA may help organizations unlock and mobilize these informal networks in order to achieve sustainable strategic goals. About the Authors Edited by Michel Mertens, Head of the SAP Competence Center (SAPCC) for the Global SAP Business Unit at Atos and member of the Scientific Community, Belgium (michel.mertens@atos.net). Also based on contributions from: William Rice Business Development in Telecom, Media & Technology Manager, global Portfolio Manager for Telco Enabling Solutions and member of the Scientific Community, the Netherlands (william.rice@atos.net). Mark Young, Consultant working in the CIO Advisory practice of the UK IT leadership Consulting group, the United Kingdom (mark.young@atos.net). Contents Social Network Analysis, a Brief Introduction An explanation of what SNA is and the benefits it brings to an organization, along with a number of business use cases, as well as a description of key SNA concepts and terms. How to use SNA in Organizational Change A step-by-step look at the business change process and how SNA can make each step easier or faster with the conclusion that the potential for reducing the cost and risk of change is considerable. Challenges Consideration of the two primary concerns legal and ethical with regards to applying SNA within an organization. Value for Organizations The situations in which SNA can bring especially large business benefits and help organizations optimize their performance as a whole. Current Status within Atos Why Atos believes SNA is an approach ready for widespread adoption as part of businessled change initiatives. Conclusions and References A summary of issues and ideas covered in the paper and a list of sources for further reading. 2 Using Social Network Analysis in Organizational Change

3 Social Network Analysis, a Brief Introduction Overview Many strategically important networks are not found on the formal organization chart. Social Network Analysis (SNA) helps discover the underlying, informal structures that exist within organizations. It is a diagnostic methodology for collecting and analyzing data concerning the relationship patterns among people in groups. Hub Pulsetaker Social Network Analysis (SNA) as used within an organization is sometimes known as Organizational Network Analysis (ONA). Here, the focus is on identifying key networks within organizational boundaries, understanding the structure of personal and group relationships within these networks, and using this understanding to make a difference to business performance. Pulsetaker Gatekeeper Formal Informal SNA is focused on uncovering patterns with regards to how people interact by using maps and metrics (mathematical analysis of human relationships) and evaluating the quality of a social network. Healthy networks are those that can adapt quickly to change, that can be reorganized without significantly affecting productivity, and that can diffuse information quickly. Informal networks have always played a huge role in how work gets done. Good managers understand the role of these networks and how to leverage them. What is different today is that years of research in the social and physical sciences has provoked interest in a new set of methods for mapping and mining insights from these networks. SNA is a robust analytical technique with a long academic heritage(*). Key to understanding and managing networks is to find the critical connectors or the unofficial organizational roles. Critical connectors comprise just five percent of the network. There are four main critical connectors: hubs, gatekeepers, pulse takers, and peripheral specialists (explained in more detail below). Companies use organizational network maps to help them manage change, facilitate mergers and reorganizations, enhance innovation, spot talent, and plan for succession. The use of Social Network Analysis allows an organization to, for example: ``Conduct what if analysis before making organizational changes in order to identify key network connections that must not be broken in a reorganization process. ``Gain insight into how decisions are made and the effectiveness of the existing organizational structures. ``Reveal the real experts in the enterprise and best knowledge resources, and who is accessing them. Once social relationships and knowledge flows can be seen, they can be evaluated and measured. The results of Social Network Analyses can be used at the level of the individual, department or organization to: ``Identify teams and individuals playing central roles, such as thought leaders, key knowledge brokers, experts, etc. ``Identify isolated teams or individuals and spot opportunities for knowledge flow improvements. ``Detect information bottlenecks. ``Detect opportunities for increased innovation, productivity, and responsiveness. ``Accelerate the flow of knowledge and information across functional and organizational boundaries. ``Improve the effectiveness of formal communication channels. ``Target opportunities where increased knowledge flow will have the most impact. ``Raise awareness of the importance of informal networks. ``Introduce organizational changes without breaking important connections and knowledge-sharing groups. *References: SNA history: SNA history: SNA history: Using Social Network Analysis in Organizational Change 3

4 SNA Core Concepts and Terms The example below(*) explains the key terms and metrics used: The nodes in the network are people or groups. The links show relationships, ties or flows between these nodes. ``Network: Human network, the movement of information. ``Nodes: Individuals on whom relationships act. ``Edges: Relationships between connecting nodes. These relationships can be directional. Two nodes are connected if they regularly talk to each other or interact in some way. ``Cohesive Sub-Group: Well-connected group, also called cluster or clique. Andre Beverly Node Edge Carol Cohesive Sub-Group Fernando Diane Heather Ike Jane Garth Ed To understand networks and their participants, the location of the actors in the network is evaluated. Measuring the location involves finding the centrality of a node. These measures give insight into the various roles and groupings within a network. Key Metrics that provide insight into an individual s or group s location within the network are: ``Degree centrality: Measures the network activity for a node by the number of direct connections that node has. In the diagram above, Diane has the most direct connections in the network, making her the most active node in the network. She is therefore a hub. In this diagram, Diane has connections only to others in her immediate cluster, her clique. ``Betweenness centrality: While Diane has many direct connections, Heather has few direct connections. However, she has one of the best locations in the network. She plays a gatekeeper or broker role. While she plays a powerful role in the network, she also is a single point of failure. Without her, Ike and Jane would be cut off from information and knowledge in Diane s cluster. A node with high betweenness has great influence over what flows and what doesn t flow in the network. ``Closeness centrality: Fernando and Garth have fewer connections than Diane, but the pattern of their direct and indirect connections allow them to access all the nodes in the network more quickly than anybody else. They are the pulse takers and have the shortest path to all others. They are close to everyone else. They are in a good position to monitor the information flow in the network and have the best visibility of what is happening in the network. The four main unofficial organizational roles (critical connectors) are: Unofficial organizational roles Hub or central connector Gatekeepers or brokers Pulse takers Peripheral specialist Description These are the people that have significant influence over the network. Hubs are nodes with high degree and betweenness centrality. A highly central node can become a single point of failure. A network centralized around a well-connected hub can fail abruptly if that hub is disabled or removed. Sometimes also called boundary spanners(*), these are the people that connect disparate groups. They serve as the links between departments, functions and groups. They act as information gateways and they are the broker knowledge between critical parts of the organization. These people have maximum influence using the minimum number of direct and indirect contacts (<three steps away). Most people would view the nodes of the periphery of a network as not being very important. In fact in the example above, Ike and Jane receive very low centrality scores for this network. Since individuals networks overlap, peripheral nodes are connected to networks that are not currently mapped. Ike and Jane may be contractors or vendors that have their own network outside the company, making them very important resources for fresh information not available inside the company. (*) Boundary spanners such as Gatekeepers and Pulsetakers are nodes that connect their groups to others and usually end up with high network metrics. Boundary spanners such as Fernando, Garth, and Heather are more central in the overall network than their immediate neighbors whose connections are only local within their immediate cluster. An individual can be a boundary spanner via their bridging connections to other clusters and networks. Boundary spanners are well positioned to be innovators since they have access to ideas and information flowing in other clusters. They are in a position to combine different ideas and knowledge found in various places into new products and services. *References: 4 Using Social Network Analysis in Organizational Change

5 Business Use Cases Social Network Analysis has been around for over 10 years and there are many case studies available which document its usage. The adoption of SNA has been hampered by the perception that it is highly conceptual and the information collected is difficult to translate into practical actions. This is because most of the case studies are generally academic in that they show the opportunities for SNA, rather than the business outcomes to be gained. Most business use cases can be grouped into three broad categories: Managing human resources in large enterprises: Social Network Analysis software can map the true social structure of an organization and reveal informal, invisible processes. The way responsibility, influence and power are distributed across any large group of people is always more complex than a simple pyramid structure. Social Network Analysis involves the mapping and measuring of these normally invisible relationships between people, thereby providing an organizational x-ray for use by HR managers and consultants. Business Processes Management: SNA can give businesses insight into how their best workers operate. A lot of practices take place outside applications and are improvised and ad hoc. Social Network Analysis can provide a diagram of these improvised practices, and once these practices are captured, they can be shared. An organization might find a whole raft of new business processes that emerge when people s organic behavior is seen. Strategic: SNA tools and metrics can be applied at the level of the individual, organization and industry. They are useful for organizational change and restructuring programs. Good sources of case studies include: provides examples of analyses under various headings, including organizations, projects, and teams. The case studies found here are generally academic in that they show the opportunities for SNA, rather than the business outcomes of the process. These studies are all anonymous, but show analyses in areas as diverse as: ``Post-merger integration of companies. ``Senior management decision-making process. ``Setting up communities of practice to promote sharing in key knowledge areas. ``Better working in a global IT function. ``Better working in a HR function. The case studies found atwww.robcross.org are generally more focused on actions and outcomes. There are a mix of anonymous and named companies, including: ``Masterfoods USA mitigating the negative impact of the impending breakup of the research function into business-focused units by first identifying the key cross-business collaborations required. ` `*Keane supporting the change to a matrix organization by redefining roles to support the social networking required. ``CPG Fortune 500 company improving performance in sales teams by understanding the nature of interactions which makes good practice and replicating this throughout the organization. The overall impression from the case studies is that SNA is a powerful technique which when used to define, enable, and embed change can offer major benefits in diverse areas. A frequent reason cited for using SNA as part of a major organizational change program is the desire to preserve the networks which may otherwise be disrupted, or to enable effective working in a matrix organization. Organizations manage a complex mix of products, geographies and markets. The formal organization has to follow only one of these areas, and can therefore never manage ideally. An intelligent organization recognizes this reality and puts in place processes to manage across the boundaries. Social Network Analysis can enable exactly that. It mitigates the risks involved in moving to a new, say global, organizational structure, by surfacing the networking which worked well in the old organization and would negatively impact the business if it were to be destroyed. The adoption of SNA has been hampered by the perception that it is highly conceptual. Using Social Network Analysis in Organizational Change 5

6 How to use SNA in Organizational Change Principles for SNA ``Human relationships are complex and dynamic. They change constantly. The most that can be achieved using SNA is a snapshot, a point in time. ``Using SNA tools, data can be collated and grasped via surveys or via various electronic sources ( , phone, IM, etc.). However, this excludes interactions and data that take place informally, such as information received at a coffee machine, from people who come into the office for a chat, etc. ``As soon as an SNA project begins or even during its design phase when a company starts to communicate about it, people s behavior toward one another may start to change. The awareness brought to people about their relationships begins the change process. ``The outcome of any change cannot be guaranteed because complex problems are not governed by simple rules of cause and effect. SNA itself may provide retrospective coherence to the behavior of an organization. Changes made as a result of SNA will only be revealed in the future. ``Changes should be small and focused. Approach, methodology Social Network Analysis claims to make business and organizational change easier because one of the key properties of the networks it reveals, for example, is to absorb stress and make adaption to change easier. However to date, no one has looked at SNA from a business change process point of view. This section of the paper looks at the business change process, stage by stage, and explores how Social Network Analysis can make each stage easier and/or faster. It concludes that the potential for reducing the cost and risk of change is considerable. Business change is not yet a mature science, but it is at a stage where leading consultancy firms base their work on broadly similar models. The Atos model(*) is shown below. It identifies three main stages 1. Planning for change - the case for change is established, the future state defined and the preparedness of the organization understood. 2. Mobilizing and engaging - the change is effectively led, resistance is managed and targeted communications are delivered. 3. Delivering the change - people are developed and trained, the change is fully aligned with the business and it is embedded to make it stick. How can Social Network Analysis support this change process? CULTURE CASE FOR CHANGE BUSINESS ALIGNMENT How will we align with the business? Howwe embed change? Wy do we need to change? What does the future look like? FUTURE STATE DEVELOPMENT TRAINING AND PEOPLE How will we develop people? COMUNICATIONS How will we engage people? Deliver Plan Mobilise & Engage How will be impacted? STAKEHOLDER AND RESISTENCE MANAGEMENT Howprepared arewe? How will we lead change? CHANGE LEADERSHIP READINESS FOR CHANGE MONITORING CHANGE KNOWLEDGE MANAGEMENT *References: Atos Change Model 6 Using Social Network Analysis in Organizational Change

7 1. Planning the change Objective setting and desired results SNA is a powerful tool for visualizing what is wrong with the current organization and what needs to change. Often, a single diagram can show simply how one part of the organization is a bottleneck or how power is not distributed in a way to help the business achieve what it wants most effectively. The creation of a picture of the future state which is agreed by a large number of stakeholders and also understood in the same way by them is a key part of planning change. Social Network Analysis is a simple pictorial tool which everyone can interact with and understand. A future social network analysis should also be included as a key part of the design of the future organization. It was once said, No organization is perfect. Intelligent organizations understand this and design around their weaknesses. Social Network Analysis provides the perfect tool for understanding the cross-boundary networks required to mitigate the weaknesses of the lessthan-perfect organization. Readiness assessment is a process by which the organization s attitude to change can be determined using a survey methodology. It also indicates where particularly strong emphasis is needed in the various stages of change. Readiness assessment brings issues to light, such as whether people are fatigued from previous failed changes, and identifies attitudes and values that SNA does not reveal. As such, it is a tool to help understand where SNA can add the most benefit. However, one of the problems of readiness assessment is that completing the survey can be time consuming and this tends to limit the size of the sample that a business is prepared to study. Social Network Analysis allows for a representative sample to be selected more accurately and with less risk. 2. Mobilizing and engaging In the change leadership process, one of the most critical stages is identifying people who are able to influence peers and subordinates to achieve the required behavior change. SNA can identify Gatekeepers and Pulse takers who are critical to the change and who need to have direct leadership roles. Hubs are also good candidates to become the change champions who are crucial to achieving successful change at ground level. Stakeholder and resistance management is achieved during a change process using carefully targeted communication. Key analysis looks at individuals in terms of their ability to block change and the impact change will have on them. The added value of SNA is that it can show how those impacted by change are connected and identify key influencers. This is a significant addition to traditional analysis, which tends to focus on main management roles. 3. Delivery or make it stick phase Whilst the change is being embedded into the organization, Social Network Analysis provides a second insight into the roles people naturally adopt. It also shows where there are natural self-support networks to share good practice that helps in training for complex issues. In addition, SNA can be used at regular intervals to assess whether the interactions developing are those required by the future state, and enable corrective action to be taken if they are not. The organization can therefore simultaneously develop both the formal and informal structures as required by the future state. The impact of SNA through the change process is summarized in Table 1 below: Table 1: Impact of social network analysis through the change process Phase Stage Key question Impact of Social Network Analysis on answering the question 1 Plan Case for change Why do we need to change? 2 Plan Future state What does the future look like? 3 Plan Change readiness How prepared are we? Sometimes, the SNA diagram can help illustrate this vividly for example, if there is only knowledge flow between business units via the center, it is clear that this is not making the best use of company knowledge. SNA can be used as part of the process by which the management team work together on a vision of what the future will be like, which can then be explained and communicated. This is particularly important when the organizational change is going to disrupt existing knowledge sharing that needs to be preserved. Change readiness assessment can be made less painful and more accurate by using SNA to better target who is surveyed and to check overall messages. 4 Mobilize and engage Change leadership How will we lead? Helps identify change leaders and change champions. 5 Mobilize and engage 6 Mobilize and engage Stakeholder and resistance management Communications Who will be impacted? How will we engage people? Identifies individuals who have the power to block the change and who need to be targeted. As above. 7 Deliver Training How will we develop people? 8 Deliver Business alignment How will we align with the business? 9 Deliver Culture How will we embed the change? Helps identify natural self-support networks and groups. Enables a better choice between individuals and roles. Monitors interactions to highlight where additional changes may be required to embed them. Using Social Network Analysis in Organizational Change 7

8 The main roles of the SNA roles in the change process can also be identified as shown below. Table 2: Typical SNA roles and how they fit into a change process Table 2: Typical SNA roles and how they fit into a change process: Role in SNA language How the role appears in Social Network Analysis Characteristics Role in business change language Hub Harry Paula Parry Gary Highly connected disseminates knowledge. Change champions or superusers. Gatekeeper Harry Paula Parry Gary Acts as links between departments. Potential change managers for the department. Pulsetaker Harry Paula Parry Gary Maximum influence with minimum number of contacts. Potential change champions for the department. It can therefore be concluded that Social Network Analysis can be used as a significant aid to business change, enabling organizations to undertake it faster, quicker, and with fewer resources. Level of methods &tools The use of Social Network Analysis in an organizational change requires a tool or method for collecting and entering data for analysis, such as a survey or other automated SNA tools that mine electronic sources, such as traffic, instant message traffic, phone traffic, etc. An additional tool is needed to analyze the data in order to prepare metrics and diagrams. Software applications such as GraphViz, NetDraw, UCINET, Orgnet.com: InFlow, FMS: Sentinel visualizer are available to create network diagrams based on survey data. More recently, some vendors (IBM Atlas for Lotus Connections and Trampoline Systems: Metascope and SONAR) also let users create social network maps from artifacts, such as communication and document access. The risk here is that automated tools can easily calculate the quantity (how many connections, etc.) of interactions, but are less adept at assessing interaction quality (request for help, approval, personal message, etc.). More tools can be found on org/wiki/social_network_analysis_software 8 Using Social Network Analysis in Organizational Change

9 Creating network diagrams based on the survey data. The creation of network diagrams based on the survey data starts with framing the right questions and creating a questionnaire for the survey. The survey for Organizational Network Analysis consists of the following sections: ``The context: Business purpose, sponsor, schedule and timeline, etc. ``Demographics: Gender, age, job function, job level, location, etc. ``Bounded network questions: Here the questions to ask depend on the organizational context, type of network (example leadership network, innovation network, communities of practice, etc.) and the purpose (business goals) of the survey. Some of the frequently used questions are listed in Figure 1. Whenever possible, quantitative measure should be used instead of measures that require interpretation. ``Personal network: in the context of organizational change, this part is very important. It will ask people to list up to +/- 15 people with whom they exchange work information, learning, and engage on a regular basis. This will help to draw out additional information about the length of relationships, how well employees are leveraging their personal networks, whether they are spending too much time with the same people, getting sufficient diversity of opinions, etc. ``Additional questions that provide insights into the network structure, such as cultural values, competency areas, use of different type of media for getting information, etc. The types of questions and number of questions need to be balanced between obtaining the most useful information and the amount of time it will take for an individual to fill out the survey. Network/Question What it shows Information How often do you receive information from this person that you use to accomplish your work? Frequency of contact, implying the strength of a relationship. It can also show whether or not people are aware of what others do or know. Awareness How familiar are you with this person s knowledge and skills? Specific information about what others know. This aspect of a relationship can reveal underlying reasons as to why knowledge transfer may not be taking place. Decision making How often do you go to this person prior to making a decision? Potential bottlenecks among managers in an organization. Problem solving How often do you go to this person when you need help or advice solving a problem? How well people know each other s skills, how accessible people are to help solve problems, and the expertise network. Value creation How much time do you save each month because of information or advice you receive from this person? The key contributors in an organization, along with a baseline time value that can be used for future metrics and evaluation. Energy How does working with this person affect your energy levels? The people in the organization who motivate others and those who may be hindering productivity. A more complete set of questions is available in The Hidden Power of Social Networks by Rob Cross & Andrew Parker. There are several ways of collecting data for network surveys: ``Paper (hard copy): useful when a network consists of a small number of people. The disadvantage is that the data has to be entered manually in a format for use by the analysis tool. ``Using excel spreadsheets: worksheets can split up the survey questions into categories, such as introduction, demographic information, etc. The disadvantage is that there is a lot of manual work involved to complete it so that it is ready to be used by the analysis tool, as the spreadsheet for each person has to be combined for each question. This work has to be done extremely carefully to be sure errors are not introduced in cutting and pasting. ` ` Web-based forms: The easiest method for collecting data from a large number of people. A web-based program can collect all responses, collate them for each question, and prepare results in a format that is correct for the analysis software. One example of a web-based survey tool is C-IKNOW, a powerful web-based software tool for Social Network Analysis investigation. It can store and analyze virtually any type of network data. More information can be found at: northwestern.edu/ Using Social Network Analysis in Organizational Change 9

10 Tools to analyze data for creating visual maps of the network and generate metrics. There is a wide variety of software available for analyzing data. InFlow ( ) has been designed specifically for ONA. ``The key features required for analysis software are: ``The ability to draw views of the network based on different attributes using colors or shapes to designate demographic attributes. ``The ability to add, remove individual people (nodes), and add or remove ties (links, connections). ``The ability to create and save what if scenarios. ``The ability to generate key network metrics: density, internal/external ratios, betweenness, closeness, clustering, etc. analysis_softwareoffers more insight on the current most popular tool vendors for SNA. Analyze data and mine it for insights Analyzing data and mining it for insights is about the identification of interesting patterns that lead to meaningful questions. Most of these questions are around fragmentation, isolation, and the roles of specific individuals. The researcher also works with hypotheses and scenarios; what if views often lead to meaningful insights. For instance, What if we remove the manager from the group? The key roles of people in certain groups can often be seen by removing them. It is important to remember that the survey results generate questions rather than answers. Gaining an understanding of the background context is the most essential part of the analysis. Relationships are easy to visualize. However visuals provide only part of the results. Metrics provide additional insights. There are two categories of metrics: ``Positional or centrality metrics: used to identify the roles of specific people within a network and the extent to which people are either very central to the network or on the periphery. ``Structural metrics or baseline metrics: used to provide data about the network as a whole. Baseline metrics help guide people in the organization to look for areas for improvement. Metric What it indicates Degree Extent to which a person is directly connected to other people in the network. Centrality Metrics Closeness Betweenness The extent to which a person is able to access all the other people in the network (either through a direct connection or indirectly through another person). Potential change champions for the department. Brokerage Extent to which a person sits on paths between other people. Density How tightly people in a network are connected, represented as a percentage of connections that a person has out of the total possible number of connections. Baseline (structural) Metrics Distance External/Internal ratio The maximum and average number of links across a network from one person to another (in short, the number of phone calls it might take to reach the person who can really answer a question). The extent to which people connect only within their own organization or subgroup versus connecting with people outside their own group or organization. Group Centrality To what extent the network is dependent on one or more key people, thus potentially less able to withstand the loss of one or two people. 10 Using Social Network Analysis in Organizational Change

11 Using the results of Social Network Analysis The network diagram and associated data provides the organization with information it can use to ask questions about what kind of change it wants to achieve and what actions it should take to achieve its objectives. The results of the network data do not offer answers, but lead to good questions. In the domain of complex problems, the operational rule of thumb is probe, sense, respond. In SNA, the survey is a probe, the analysis and interpretations are the sense-making, and the responses should consist of actions suitable for a complex environment, increasing the number of connections, etc. The typical actions an organization could undertake fall into three broad categories: SNA is an excellent tool to uncover the human dynamics that are at play. Make an organizational shift or adjustment Role change, role addition, relocation, and reassignment. For example, if it is determined that a central connector has become a bottleneck because they are overloaded, then their span of control could be reduced or some of their work offloaded to others. Increase the knowledge capacity of the organization Provide opportunities for people to meet, collaborate, innovate, and learn. For example, an organization that has many peripheral players may want to orchestrate meetings so people can get to know each other or introduce a social software tool that allows users to create personal profiles. Focus on the individual behavior of key people to encourage knowledge sharing across the organization For example, if a boundary spanner who is the leader of a cluster is identified as the funnel through which all information flows into and out of their team they could be coached to become more comfortable sharing power. Using SNA is an excellent tool to uncover the human dynamics that are at play in the following five elements of a well-functioning organization. These elements needs to be in alignment and checked regularly for misalignment. 1. Conversations generated by SNA can lead to an understanding of the relationship with the organizational mission or context. 2. The degree of relationships among people and the extent to which social capital creates and sustains a motivated workforce. 3. The potential for enhancing collaboration and communication through technology. 4. The introduction of work practices that integrate connection and communication into daily activity. 5. The impact of organizational boundaries, roles and responsibilities on the nature of work. Getting these five elements aligned will help organizations to find gaps and manage them in order to become smarter. *References: : SNA Masterclass by Patti Anklam Gartner: Social Network Analysis: What a difference an A Makes The hidden power of Social Networks by Rob Cross & Andrew Parker. C-IKNOW: web-based software tool Using Social Network Analysis in Organizational Change 11

12 Challenges Two primary concerns with regards to applying SNA within an organization are of a legal and ethical nature. From a legal perspective, the applicable privacy laws must be respected. From the employer s perspective, mostly represented by HR, the ethical aspects reflected through mutual trust and employee satisfaction are of the utmost importance. The privacy concerns in analyzing a network can be grouped to three categories(*): 1. Identity disclosure: the identity of an individual who is associated with a node is revealed. 2. Link disclosure: the sensitive relationships between two individuals are disclosed. 3. Content disclosure: the sensitive data associated with each node is compromised, e.g., the message sent and/or received by the individuals in an communication network. How employees react to the analysis of an organizational social network of which they are part depends on the way it is communicated. The honest and willing full participation of employees is important to achieve good results. To reassure people, the employer will need to provide complete transparency with respect to the goals of the initiative and the details of the approach: What will be analyzed and for what purpose. It is not necessary to analyze content of communication between people in order to carry out network analysis, and this should be explicitly stated in the communication. To address the concerns with relation to analyzing communication patterns between people through computer systems (such as ), the following guidelines should apply: ``Senders and receivers of communication must have formally accepted to take part in the test (express consent). ``It must be clearly explained to individuals what data would be used, the scope of the study, how the results will be used, how long data is kept, and what happens if they refuse to answer. ``Even if the content of s is not made available and the project is not aimed at controlling employee activities, it would be necessary to inform the Works Council of the project. ``Notification to the national data protection authorities is mandatory before a SNA test is launched (for each legal entity in the concerned countries). Finally, when communicating about a network analysis initiative, it should be made clear that it is not being done for the purpose of controlling employees. *References: Privacy-preserving Data Analysis on Graphs and Social Networks, Liu et al., Using Social Network Analysis in Organizational Change

13 Value for Organizations Atos believes Social Network Analysis can bring large business benefits, particularly in the following situations: 1. An organization is preparing to undertake a major organizational change at the product/ market/geography level. Here,SNA is proven to help the organization get the benefits from the change while mitigating risks. 2. Organizations that have recently merged and wish to increase the chances that the merger will succeed, as judged by the shareholders. 3. An organization that knows it needs to change, but is not sure in which direction to go SNA can provide a cost-effective way of defining a vision of the future which many stakeholders will agree with. 4. An organization which has grown quickly and needs to put a formal organization in place without disrupting the creative essence of what made it grow rapidly in the first place. Structural holes, according to Burt s Hole Hypothesis (2000) (*), are the weak connections between groups. The existence of these holes or gaps creates advantages for people whose relationships span across the holes between groups. These people are valuable to an organization, however, it also runs a risk if it depends only on a limited number of people, socalled Gatekeepers. By analyzing the social networks within organizations, identifying structural holes, and initiating change actions to reduce dependency on these people, organizations will mitigate risks and be able to optimize the organization s performance as a whole. As a network, even. As this paper shows, organizations are often reflected through formal organization charts. These sometimes also include business models or process models. But even in these representations, holes exist. These holes are blind spots that are not represented in the formal organizational documentation, but are the areas where the work is really being done and decisions are being made. *References: The Hole Hypothesis from Burt (2000) - Using Social Network Analysis in Organizational Change 13

14 Current Status within Atos Atos sees Social Network Analysis as an approach which is ready for widespread adoption as part of business-led change initiatives for three reasons: 1. SNA has been around for many years and has been through the hype cycle. There are real case studies showing its value in identifying, driving and embedding major changes within organizations, and offering a good understanding of a company s strengths and how to tackle the people issues involved in change. 2. Tools that both show social networks and analyze them have now reached maturity. 3. As this paper demonstrates, SNA can be used as part of a proven methodology for delivering major business change. Social Network Analysis is used increasingly by change professionals as part of their portfolio, and in their dealings with HR directors who are charged with delivering major change at low risk by maintaining employee engagement. SNA is used increasingly by change professionals as part of their portfolio. 14 Using Social Network Analysis in Organizational Change

15 Conclusions and References Conclusions Organizations that undertake Social Network Analysis will gain a new perspective on the impact of relationships on their corporate performance. They will have greater visibility of the relationships that are making their organization successful, as well as those that may be hindering progress. The use of SNA does not provide specific answers to questions about relationships, but does provide data that organizations can use to ask questions about the as-is state and design the interventions needed to achieve the desired to-be state. It is important to note that SNA is only an assessment tool and should be used in a wider context in order to reach a business and organizational goal. SNA can identify existing connections and can tell a lot about those connections. There are no right or wrong network structures; there are simply networks that may be more or less effective in achieving goals. Organizations should look at the whole network as well as at individual positions as part of an assessment. References SNA history: SNA history: SNA history: SNA Core Concepts & Terms: Business case examples: Business case examples: Atos Change Model: : SNA Masterclass by Patti Anklam Gartner: Social network analysis: What a difference an A Makes The hidden power of Social Networks by Rob Cross & Andrew Parker. C-IKNOW: web-based software tool Privacy-preserving data analysis on graphs and social networks, Liu et al., 2008 Hole Hypothesis from Burt (2000) - SNA Tools: Before undertaking SNA, an organization must ensure that is has the trust and buy-in of the people it hopes to include in the analysis. Issues of privacy and confidentiality must be addressed and a determination needs to be made regarding how the information will be used and communicated. Establishing ground rules upfront will encourage more open and honest participation. Social Network Analysis can be used as a significant aid to business change, enabling organizations to undertake it faster, quicker, and with fewer resources. Social Network Analysis can bring business benefits and help companies find gaps and manage them to help them become smarter organizations. Using Social Network Analysis in Organizational Change 15

16 About Atos Atos is an international information technology services company with annual 2010 pro forma revenues of EUR 8.6 billion and 74,000 employees in 42 countries at the end of September Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transport; Financial Services; Telecoms, Media & Technology; Energy & Utilities. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic Games and is quoted on the Paris Eurolist Market. Atos operates under the brands Atos, Atos Consulting and Technology Services, Atos Worldline and Atos Worldgrid. atos.net Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos Worldgrid are registered trademarks of Atos SA. November Atos.