Presentation on networks and social media made for a group of international managers attending the International Management Program at IFL (www.ifl.se) in May 2009.

1. Leveraging Networks and Social Media in a Multinational Company May 2009 Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland 1-

3. Everyone is talking about networks National Innovation Networks Formal Networks Entrepreneurial Networks Ego Networks Regional Networks Infrastructure Networks Social Networks FAS.research Electronic Networks Informal Networks Networks of Practice Networked organization

5. A world of rapidly growing knowledge …. > A person’s lifetime in 18th century One week 2008 Fischbowl 2007

6. … that becomes quickly outdated …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

7. Human capacity cannot keep up… Cohen & Levinthal 1989 Growth Time Information and knowledge Human absorptive capacity

8. Yet, the world is “shrinking” family local colleagues friends old colleagues colleagues at other offices Just a click away… virtual communities local networks old classmates avatars business contacts social media contacts referrals

9. A new workforce is appearing… Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Learning=Behind the desk Professional loyalty Work = Personal Learning=Fun and games

10. … with skills in using social media tools to reach out… Rey 2008 Communication Personal Media Self-expression Collective Intelligence Content Production

11. … to build relationships, find information and knowledge, solve problems, and learn Mahaley 2008

12. 6 degrees of separation Milgram 1967, DesAutels 2008

14. History tends to repeat itself…. Steam engine Internal combustion engine Microelectronics Late 18 th C Late 19 th C Late 20 th C Schön 2008 Third industrial revolution?

18. Swedish hip hop artists Liljeros 2006 ?? Timbuktu

19. Networks of firms Dahlin 2007 Nocom Ericsson Telia Nokia TietoEnator

20. Uncovering networks in an organization Formal organization Teigland et al. 2005 R&D organization Informal organization

21. Individuals within a firm Mattsson 2004 < 1 yr 1-5 yrs 5-10 yrs 10-15 yrs > 15 yrs Time at firm

22. Central connectors within one location Bottleneck  Teigland 1998 Surprise!! Stockholm

23. Boundary spanners between locations Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

26. Trust & reciprocity are essential for knowledge exchange in networks

27. … and most importantly, management cannot mandate social relationships John Eva Hans Miguel Paul Jan Lars Pia Anna Nils Bill Erik Mike Al Alex

28. Peripheral players between organizations San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Teigland 1998 Other firms Electronic communities

29. Dual loyalties Loyalty Loyalty Organization Professional network Teigland 2003

30. Increasing job turnover Time Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months CNET 2000

32. Individuals between business firms SEB Ray-Adams & Sandberg 2000 Interlocking directorates of Sweden’s 110 largest firms, 2000 ??

36. How does informal power arise? Krebs 2004 Jack gains informal power, weakening the boss Lisa’s formal power… Jill Jack Bob Lars Anna Sue Lisa Mira Sam Fred

37. How does informal power arise? … and now Jack’s informal power is greater than the boss Lisa’s formal power Krebs 2004 Jill Jack Bob Lars Anna Sue Lisa Mira Sam Fred

41. Two individuals with the same number of contacts… B A

42. … but with very different access to resources B A

44. Performance differs based on one’s network Firm A Low on-time High Creative High on-time Low creative Teigland 2003 High creative Virtual community Firm B

45. When you hire someone,… … ..you “hire” his or her network.

46. The strength of weak ties Network A’s knowledge Network D’s knowledge Network B’s knowledge Network C’s knowledge Granovetter 1973

47. Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Improved efficiency over time Stagnant performance over time Schenkel & Teigland 2008

48. More social get-togethers and coffee breaks are not the solution

49. “ Managing” networks in your organization Before After Anklam & Welch 2005 1. Uncover networks 2. Analyze networks 3. Improve connectedness

51. Comparing performance across firms Teigland et al 2000

53. Avoid creating insular networks http://www.enronexplorer.com/focus/19185#

56. The Enterprise Open Source Business Model Subscription-based business model

65. Structural holes Advantages of position in information networks Bill Burt 1992, Baker 2003 Dept 3 Dept 4 Dept 1 Dept 2 Barb

66. Build relationships with people at all hierarchical levels Look for complementary skills while maintaining a balance! Cross, Parise, & Weiss 2006 Higher: Help with making decisions, acquiring resources, developing political awareness, explaining organizational activities beyond local setting Equal: Help brainstorm and provide specific help, support, and needed information Lower: Provide best sources of technical information and expertise

67. External networks are growing in importance! Other people around the world Other employes around the world Other employees in your country Co-Workers Friends Large portion of new ideas and formal collaboration relationships come from external contacts You Alex Eyal Your manager Rami’s manager Hila Yaron Yuval Eduardo Ed Muriel Peter Frequent e-mails Infrequent e-mails Web 2.0 Collaboration

68. Go meet someone different or far away Robin and Steve Mahaley from Duke CE in Second Life

69. Develop participation in a variety of networks Strong ties Weak ties Outside organization Inside organization SOCNET

70. Develop three forms of networking Ibarra & Hunter, HBR Jan 2007 Operational Personal Strategic Purpose Getting work done efficiently Enhancing personal and professional development Developing and achieving future priorities Members Mostly internal contacts and focused on current demands Mostly external contacts and focused on current and future interests Both internal and external contacts and focused on future Network attributes Depth through building strong working relationships Breadth through reaching out to contacts who can refer you to others Leverage through creating inside-outside links

72. Build relationships before you need them,…. … … while making sure you create value and foster trust.

73. Foster trust to build relationships Coleman 2006 Practices and discipline build trust, not who you are in the formal organization

74. People understand the game We do have certain individuals who …blast out FYI emails…… I think a lot of it is positioning within the organization….. I would say that 99% of those emails/articles are irrelevant…. are deleted. If I find something interesting …… I would send it to relevant people, but I certainly wouldn’t send it to everyone. Whelan, Teigland, & Donnellan 2008 R&D Scientist

75. The positive spiral of social networks tschaut’s photos Contribution Reciprocity Accumulation Value

79. Traditional media vs social media http://adultaddstrengths.com/2008/11/05/obama-vs-mccain-social-media/

80. The speed of information: The power of social media http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008

83. Organizing in MNCs Network picture from http://n-e-r-v-o-u-s.com/blog/?m=200712 Hierarchy Linear, static, process-based organization Heterarchy Dynamic, integrated collaboration networks

85. Hinton 2007 Knowledge flows through communities of practice

87. How can social networking sites be leveraged? ringsidenetworks.com

90. eZ Wire enables global conversations

91. IBM – “A marketplace for projects” for its 390,000 employees worldwide http://www.slideshare.net/SOMESSO/speaker-1-bettina-kahlau-presentation

93. At IBM, “BlueIQ” facilitates several functions Communities Create, find, join, and work with communities of people who share a common interest, responsibility, or area of expertise Blogs Use a weblog to present your idea and get feedback from others; learn from the expertise and experience of others who blog Dogear Save, organize and share bookmarks; discover bookmarks that have been qualified by others with similar interests & expertise Activities Organize your work, plan next steps, and easily tap your expanding professional network to help execute your everyday deliverables, faster Profiles Quickly find the people you need by searching across your organization using keywords that help identify expertise, current projects and responsibilities Poole 2008

94. Management cannot mandate social relationships Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

95. IBM’s Atlas shows the social network of a topic and how to get to someone Poole 2008

97. The future manager portal at Cisco

100. Improving virtual teaming and cross-cultural skills Task: To build a bridge in your virtual team Designed by Duke CE and Stockholm School of Economics

102. IBM - Convergence in virtual spaces mentoring Green Data Center SOA Training Play is how we principally learn and principally create &quot; Ray Kurzweil many to choose from IBM Lotus Tools BMW Training Media Brain Thinking Hamilton, 2009

103. IBM’s jam sessions in Second Life

104. External networks are growing in importance! Other people around the world Other employes around the world Other employees in your country Co-Workers Friends Large portion of new ideas and formal collaboration relationships come from external contacts You Alex Eyal Your manager Rami’s manager Hila Yaron Yuval Eduardo Ed Muriel Peter Frequent e-mails Infrequent e-mails Web 2.0 Collaboration

105. Improving recruiting efforts Job Fairs Accenture recruits in Second Life since 2006 – this recruiting has since paid for itself A manager at a high-tech multinational recruits senior level employees through Orkut, resulting in reduced turnover and headhunter fees Virtualworldnews.com 2008, Hustad & Teigland 2008

107. Creating new knowledge sources… Closed Expensive Complex Accurate Open Inexpensive Simple Close enough Hinton 2007

109. What can organizations do? Innovation Product development Content generation Decision making Funding Sales & marketing Distribution Brayrie 2007

110. Innovations - www.innocentive.com

111. Problem solutions - The Goldcorp Challenge

112. From organization-generated content (OGC) to user-generated content (UGC) Content created by a user to be used by a user Content created by an organization to sell to a user Di Gangi 2008

113. Rapid growth of UGC Web Sites Organizations increasingly introducing UGC websites (e.g., social networking, electronic communities) as organizational resources Deloitte 2008, DiGangi 2008

114. Why are organizations using UGC websites? Deloitte 2008

115. GE Healthcare on Twitter

116. GE Healthcare on LinkedIn

117. Examples at Dell DiGangi 2008, Brayrie 2007 Self-support Product development

118. Building the Dell community Brayrie 2007

119. Motorola Q – Creating content

120. Scania Social Media Newsroom “ One of the best B2B newsrooms I have seen.” -Bodnar, May 10, 2009

122. Engaging readers in content creation http://socialmediab2b.com/2009/05/b2b-social-media-newsroom/comment-page-1/#comment-80

125. Match the tool to the purpose Tool Purpose Example Blogs/Microblogs Conversation Relationship building Information sharing Getting customer and employee feedback Sun Microsystems Ericsson GE Healthcare Discussion forums Self-support Solution finding Customer engagement Dell Wikis Collaboration Mutual problem solving Engagement Motorola Swedbank Social networking sites Community development Relationship building Building loyalty Solution finding Serena Software Victoria’s Secret Jeep Virtual worlds Collaboration Innovation Engagement Knowledge accidents Nokia Philips IBM

127. Why use these new social media tools? Melcrum 10/07

131. Are there any b enefits from social media, or is it all hype? Poole 2008: IBM Global Technical Services Knowledge Community of Practice Business Impact Survey 2007, completed by approximately 2,300 respondents

134. Fear of loss of power at the top Cross, Parise, & Weiss 2006

135. Is knowledge trading good or bad for a firm? We pass over the nondisclosure agreements of different companies and trade company secrets all the time.

136. Who owns the knowledge? Organizational information vs. Personal expertise

137. Social overload and role conflict Loyalty Loyalty Organization Professional network Teigland 2003

138. Do employees know how to represent the company when using external social media? Statoil-Hydro Love at 150 m below sea level!

139. IBM’s blogging policy & guidance, created by the employees Policies based on IBM’s Business Conduct Guidelines Apply internally and externally Available on ibm.com “ blogging guidelines” Adapted from Poole 2008

141. Promoting an open innovation attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Closed attitude Open attitude Chesborough 2003

142. Users create their own meanings Wesch 2008

143. There is nowhere to hide http://www.youtube.com/watch?v=t8XxcOj3Seo Fortune, Rey 2008 Monitor social media sites and react in a timely fashion

144. Treat like any change project Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change

147. What one listener emailed me after…. When I got home last night, my 17 year old son was doing what he usually does – sitting at the computer online with his friends…But after hearing this presentation, I couldn’t help but be interested in what he really was doing. So, when I looked more closely, I saw that he was involved in three separate conversations - all at the same time, and not only that, he was also following the discussions on one of the school’s forums. Then he said, “Mom, you grown-ups are sooooo behind…..think how much you could get done if you worked like this!”

152. Interested in a tour? Stepping into the Internet: A tour of Second Life

153. Within five years, the 3-D Internet will be as important for work as the Web is today. January 2008 By the end of 2011, 80 percent of active Internet users (and Fortune 500 enterprises) will have a “second life”, but not necessarily in Second Life. Steve Prentice Gartner

154. Towards 3-D Internet Level of Interaction Time Hamilton 2008 Individual - Web 1.0 Thinking Mosaic, Prodigy, Compuserve, AOL, Netscape Connected Web 2.0 Thinking Facebook, Friendster, Yahoo, Blogger, Wikipedia, eBay, Typepad, LinkedIn. Amazon, MySpace, Textamerica, Delicious, HubPages SENSORY 3D Internet Thinking SecondLife, Active Worlds, There, SimsOnline, Club Penguin, World of Warcraft, 3D planets, ToonTown, Habbo, VSlide, Protosphere

156. 780,000 users USD 420 mln turnover 2008

161. “ We think it has potential as a way of doing business. We’re just experimenting with it ourselves but we see massive potential in the human interaction you can bring. It’s a big browsing environment in many ways.” - IBM Director

162. Recruiting Job Fairs

163. Improving internal effectiveness Unilever is running an extensive pilot in SL

164. In-house training and education IFL at SSE and Duke Corporate Education Co-developing and running virtual team building exercise

165. Co-creating solutions for today… Philips Design Group Lead-user innovation workshops

166. … as well as for tomorrow HSB: Building the house of the future in a competition with KTH and Chalmers architecture students

167. Increasing effectiveness in traditional industries “ Soon all fashion designers will be originating their designs and managing the production in virtual worlds ….Why such a dramatic change? Economics, pure and simple .” Shenlei Winkler, Director Fashion Research Institute

168. 3D internet Before the first plate of aluminum is even bent for production, the passengers will have flown, the crew will have serviced, and the pilots will have flown the plane. CEO of Boeing supplier

171. The opportunities are endless……. http://static.flickr.com/47/110109290_2189217cee.jpg

173. What should you do in virtual worlds? Experiment, “play”, and learn Stay on the look-out Consider creating independent operations Don’t forget other emerging media

174. We digitized audio and video, why can’t we just digitize, you know, Earth” Philip Rosedale, Chairman Linden Lab

175. “ I think there’s a world market for maybe five computers.” Thomas Watson, Chairman of IBM, 1943 “ There is no reason anyone would want a computer in their home.” Ken Olson, President, Chairman and Founder of Digital Equipment Corporation, 1977 “ Heavier-than-air flying machines are impossible.” Lord Kelvin, President, Royal Society, 1895

176. Thanks and see you in world! Karinda Rhode aka Robin Teigland [email_address] www.knowledgenetworking.org www.slideshare.net/eteigland