Enabling Leadership Using Network Analysis to Unleash Organizational Potential

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1 Enabling Leadership Using Network Analysis to Unleash Organizational Potential April 26 th, 2016 Facilitator:Stacia Garr, VP Talent Management Bersin by Deloitte, Deloitte Consulting LLP Michael Arena Chief Talent Officer, General Motors

2 Enabling Leadership

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4 ATTRACTING, HIRING, RETAINING Human Capital

5 Social Capital Perspective Brokerage Three specific competitive advantages: wider access to diverse information, early access to new information and control over the diffusion on information (Burt, 2005). Networks with brokerage are the most creative within organizations and they enable more novel ideas (Nerkar & Paruchuri, 2005, Singh, Fleming, 2010). Performance, promotions and compensation are positively correlated with network position (Burt 2005). vs. Cohesion Individuals are able to quickly share information and typically demonstrate higher levels of trust than less cohesive groups (Fleming, Mingo & Chen, 2007). Ideas within cohesive sub-groups are more likely to be developed and adopted within the cluster (Fleming, Mingo & Chen, 2007). Brokerage networks produce up to 25% more insights (Wu, Waber, Aral, Brinjolfsson, Pentland, 2008). Cohesive networks improve productivity by up to 30% (Wu, Waber, Aral, Brinjolfsson, Pentland, 2008).

6 Enabling Leadership Operational System Adaptive Space Entrepreneurial System

7 Brokers Connectors Energizers Early access to novel ideas, wider access to diverse information, and control over diffusion. More likely to be in top 20% of high performers within organizations. Ideas within cohesive sub-groups are more likely to be socialized, developed and adopted locally. However, ideas are 43% more likely to be dismissed by others. Energizers are 4Xs more likely to influence within and across subgroups. They are also more likely to get ideas noticed and their reputation spreads quickly.

8 THINK BIG START SMALL SCALE FAST CO:LABs Operational System GM IDEAs LEADERSHIP Entrepreneurial System CATALYST CAMPs SUMMITs TEC TALKs TIPPING FORWARD

9 New Executive Orientation Understand how the network really works Identify, develop, and leverage influencers Understand and leverage personal networks Leverage the networks that are most relevant to their strategic challenges Foster an environment of collaboration and interdependence Cullen, K., Palus, C., & Appaneal, C., CCL (2013). 9

10 LEVERAGING BROKERS

11 SUMMIT

12 Creative Exchanges

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15 LOCAL all Center CONNECTORS Study: Improvements Team 1 Team 2 Managers Team 3 Team 4 Intervention: Series of in-team Experiments Intervention Impact: Cohesion increase: 30% Productivity increase: Estimated 25% Cohesion matters; productivity (r = 0.61)

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17 FINDING ENERGIZERS

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19 Influence What do you do? You Influencer Unit 1 Unit 2 Unit 3

20 your Network says a lot about you! gossip 2008, Burt, R., Gossip & Reputation

21 Influence Network Closure You Influencer Unit 1 Unit 2 Unit 3

22 Tuesday

23 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Copyright 2016 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited