[Webinar] "How to Keep Top Talent & Improve Your Bottom Line"

1© 2013 Activate Networks, Inc. 1

617.558.0210 | [email protected] | www. activatenetworks.net1 Newton Executive Park, Suite 100 | Newton, MA 02462

How to Keep Top Talent & Improve Your Bottom Line

Prof. Rob Cross, University of VirginiaFriday, May 3rd, 2013

2© 2013 Activate Networks, Inc.

617.558.0210 | [email protected] | www. activatenetworks.net

1 Newton Executive Park, Suite 100 | Newton, MA 02462


Presenter: Rob Cross

Professor of Management at University of Virginia’s McIntire School of Commerce

Founder and Research Director of The Network Roundtable

Senior Consultant for Activate Networks, Inc.

Author of Driving Results through Social Networks: How Top Organizations Leverage Networks for Performance and Growth


The Company at a Glance

Sponsor of the Network Roundtable

Representative Members

Utilizes innovative social network analytic technology developed by Prof. Rob Cross of the University of Virginia

Users of ONA include major global organizations and industry leaders

A software company providing the strategic tools to identify and understand the key social connections that drive commercial, organizational, and health results

http://www.thenetworkroundtable.org/index.html


Formal Structure

Sutherland

Smith

Crossley

Dhillon

Zaheer

Keller

Angelo

Schultz

Cordoza

Klimchuck

Mitchell

McWatters

Myers

Ramirez

Avery

Mares

Hopper

Hussan

Milavec

Waring

Informal Structure

Networks are often under-appreciated in comparison to the formal structure.

Exploration & Production

Zaheer

Schultz

Mitchell

Klimchuck

Angelo

Keller

Smith

GeologyDhillon

Myers

PetrophysicalCrossley

ExplorationAvery

Cordoza

Sutherland

Ramirez

DrillingMcWatters

Waring

ProductionHussan

ReservoirHopper

ProductionMilavec

Senior Vice PresidentMares

Networks are Often Under-Appreciated in Comparison to the Formal Structure


Getting Better Leverage From Key Talent…

Network Effectiveness

Perf

orm

ance

Rati

ng

AlignmentUnder-Utilized (25% High Performers But Peripheral)

Under-Recognized(40-50% Overlap Top

Talent Lists)

On-boarding, Staffing,

Development


Person A

Example: 71 people identified Person A as an effective source of info and 27 responded that greater access to him is critical to improving their effectiveness.

Issue:

• Hidden bottlenecks can invisibly slow down the work of everyone (when these over-loaded people feel busy and like things are happening).

• Who is Person A?• What would you do?

Leaders (and Most Organizations) Don’t Sufficiently Appreciate The Effect Of Overload Points In Networks…

Senior VP+Vice PresidentExecutive Director/Senior DirectorDirector or Below

Solutions• Structural: Re-allocation of

decision-rights, providing broader information access, delegation/addition of roles and formalized decision-flows.

• Relational: Defining and re-routing routine decisions (e.g., various personnel decisions, travel, resourcing efforts, clinical protocol and protocol design, modeling and simulation).

• Skill Development: Building alternative sources of expertise, behavioral modeling and coaching.

Gre

ater

Acc

ess

is C

ritica

l to

Effec

tiven

ess

1 21 41Effective Source of Information

61

-5

0

5

10

15

20

25


Decreasing Relational Load is Important for BOTH Performance and Well-Being at Work

0% 10% 20% 30% 40% 50%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of Colleagues Desiring Greater Access

% o

f Col

leag

ues R

ating

the

Indi

vidu

al a

s an

Effec

tive

Sour

ce o

f Inf

orm

ation


% People Removed 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%% Ties Removed 29% 43% 53% 61% 66% 71% 75% 79% 82% 84%

0%

20%

40%

60%

80%

100%

% T

ies

Rem

oved

Issue• The organization’s revenue

base is VERY susceptible to departure of just a few employees. Many of these people were not recognized as critical in the formal talent processes and so were more likely to leave.

Typically only 40-50% overlap between key enablers and top talent lists

Solutions• Retention-Based: Allocating

additional resources/benefits, building networks among high connectors.

• Development-Based: Developing key expertise and client (or scientific) connections amongst others in the network.

• Succession-Planning: Helping emerging leaders build networks required for success in a new role.

Identification of Key Talent for Retention Purposes…

% T

ies

Rem

oved

% People Removed

% Ties Removed


Leaders (and Most Organizations) Don’t Sufficiently Know and Leverage Top Talent in Networks…

Name# Incoming

TiesDepartment Location % Energizing Ties

% Problem Solving / Bus Opp Ties

% Cross-Dept Ties

George A 52 Investment Banking Australia

Sharron M 48 Operations Other Asia

Stephano C 46 Financing North America

Jessica S 46 Research North America

Michael G 46 Equities North America

Pat B 43 Currncy & Commdts Australia

Deborah K 42 Financing North America

Roman N 41 Equities South America

Josh W 40 Asset Mgmt North America

Gene P 39 Investment Banking Europe

Birger S 39 Asset Mgmt Europe

Seth I 39 Equities South America

Dmitry K 38 Fixed Income China

Deborah K 38 Investment Banking North America

Johan W 37 Currncy & Commdts Australia

Ivana L 36 Other North America

Ricardo I 36 Investment Banking North America

Sylvia E 35 Fixed Income China

Richard M 34 Investment Banking Europe

Vladimir T 34 Financial Adv Svcs China

Andrey K 34 Financing North America 31%

57%

48%

50%

30%

64%

32%

45%

49%

38%

40%

45%

76%

31%

33%

30%

39%

26%

25%

45%

42%

54%

52%

58%

63%

47%

53%

64%

59%

61%

48%

33%

60%

43%

47%

49%

46%

41%

49%

40%

29%

62%

76%

53%

15%

40%

31%

94%

84%

39%

66%

49%

62%

44%

73%

54%

83%

91%

67%

87%

83%

96%

56%


Successful Leaders Know and Work through Networks by…

Knowing and utilizing the network’s center.

Leveraging the network’s edge.

12© 2013 Activate Networks, Inc.

Name # Effective Incoming Info Ties

# Advice Incoming

Ties

XXXTenure

Role FunctionPrimary

Therapeutic Area

Location

Person 1 41 22 1 to < 3 yrs VPDev Lead Metabolics NJ

Person 2 39 22 1 to < 3 yrs VP RMSCardio- vascular

Person 3 36 26 < 1 year VP GHOMultiple Areas NJ

Person 4 34 21 1 to < 3 yrsExec Drctr GCR ImmunologyNJ

Person 5 27 16 1 to < 3 yrs VP GCR OncologyPerson 6 23 15 1 to < 3 yrs Drctr RMS Metabolics

Person 7 22 18 1 to < 3 yrs VP DMCPMultiple Areas NJ

Person 8 20 13 1 to < 3 yrsExec Drctr Other

Multiple Areas

Person 9 19 13 1 to < 3 yrsExec Drctr DMCP Metabolics NJ

Person 10 18 11 1 to < 3 yrsGp

Drctr GCR Oncology

Understanding the Behaviors and Early Assignments of Least Tenured Top Connectors Can Improve

On-Boarding Processes of New Hires

Characteristics of Fast Movers (i.e., Least Tenured Connectors) Compared to Others in Same Tenure Band: Provide expertise across the enterprise: almost three times as many cross-function ties. Create enthusiasm: four times as many energizing incoming ties. Help others: more than two and a half times as likely to provide advice to help formulate

strategies and key decisions.

Ties by Tenure

Cross-Function Ties by Tenure

Avg. number of incoming ties

Avg. number of ties from people outside function.

Least Tenured Top Connectors


High Performers* Show Unique Network Patterns: Replicating These Networks Via Talent Programs Can Yield Impact

More than twice the number of people find high performers energizing compared to others. Energized subordinates give greater effort and attract effective networkers. Energized leaders create room and provide resources.

Higher performers have a much greater focus on those outside of their capability (ratios are fairly similar for unit & CoE also):

High performers are more sought and seek out others more frequently than others. The comparative ratio is:

High performers are 2.8 times as likely to play a brokering role in the network by positioning themselves at key inflection points.

Notes:1) High Performers are defined as those people who received a bonus rank of 1. This represents 22% of the population.2) Ratios represent the increment of ties of high performers over those of all others on average.

High performers have significantly more ties with people outside their location:

High performers are much more likely to seek out others up and down the hierarchy. They are also more sought out by people in other grade levels.

Sought by Others Seek Out Others

Expertise, Info & Resources

2.0X more frequently

27% more frequently


Within Capability


17% more frequently

Outside Capability


44% more frequently


Within Level 78% more frequently

23% more frequently

Outside Level 2.3X more frequently

30% more frequently


Within Same Work Location

86% more frequently

33% more frequently

Outside Same Work Location


18% more frequently


Too Often the Things That Make You Successful – Being Accessible, a Problem Solver, etc. – Become Career

De-Railers at the Next Level of Responsibility• His effectiveness suffering…

‒ Health problems (overweight, high cholesterol, pre-diabetic).

‒ Family problems (stress of work came into home life).

‒ Interactions at work becoming more toxic.

• Subordinates intimidated and over-prepping.

• Peers though he was becoming an A*(%)hole.

• His group’s performance was suffering…

‒ Many people on the fringe were disheartened by missed opportunities.

‒ Several geographies were extremely disconnected.

‒ Top team had significant blind spots into key functions.

‒ Churn and gridlock on increasingly routine decisions.

Meet Scott P.


Scott Initially Focused on Structural Drivers of Overload – Informational Requests and Routine Decisions That He Did Not

Need to be Involved with

Project management: travel approvals, capital approval, budget, manuscript clearance forms, project strategy, etc

Capital requests and justifications

Alliance and collaboration management decisions (confidentiality agreements, milestone payments, etc.)

IT and data systems: data management, tools, reporting, workflow, data processing

Performance review and planning processes that were non-developmental.

Experimental planning, protocols, setup and design. Technical planning and technical alignment.


He Also Focused on Behaviors – Things He Did That Created Network Reliance/Overload

• Sent employees to meetings he had been attending to either be “in the know” or protect his group.

• Began to ask more questions (and answer fewer) while connecting people around him in the network.

• Was more selective on problems that he jumped into to help others solve.• Became more cautious in improving employees’ plans (don’t do if not more

than 25% impact).• Focused on addressing conflict earlier so that problems did not manifest deep

into the network.• Began using a blog to communicate certain ideas more consistently.


Network Overload is the Most Common Career De-railer

The Over-Loaded Leader or Expert

Issue: Intentionally or unintentionally creates heavy reliance on self. Uses own time – and others – inefficiently

Outcome: Personal burnout, the organization’s network is too slow to respond to threats or opportunities, innovation and decision making can stall

Decisions/Info You Can Shift

Behaviors You Can Alter


Specific Dimensions of Network Connectivity Promote Individual Performance.

High Performers (i.e., top 20%) Have Non-Insular Networks:

• Select ties up in the hierarchy (to your boss and others) provides a breadth of information, context, resources and political support for your initiatives.

• Lateral connections to peers within the organization are important for brainstorming and best practice transfer as these people face similar issues.

• High quality (i.e., energizing) relations to those lower in the hierarchy creates reputation and draws emerging high performers to you over time.

• Select ties to experts outside of the organization yield innovations and novel opportunities.

Reaching Up Provides Info and Support

Internal Peer Networks For B-Storming

Energized Subordinates Give Greater Effort and Attract High Performers

External Peer or SME Networks For Process or Product Innovation

Customer (Internal or External) Ensures Satisfied and Learning Relationships

Specific Dimensions of Network Connectivity Promote Individual Performance


Connections that provide personal support/energy• People you re-group with when you have had a tough meeting or bad day.• People that you are energized by or people you can “just be you” with.

Connections and activities that support balance• People that influence involvement in and hold you accountable for:

• Activities that improve physical health (e.g., sports, nutrition)• Activities that promote mental engagement (e.g., hobbies, learning)• Activities that feed the soul (e.g., music, religion, art, service, etc.)

Minimizing or removing interactions with negative relationships• Toxic relationships that create unhealthy levels of job or non-job related stress.• Friends, family members or co-workers that enable or encourage unhealthy

behaviors on either a physical (e.g., nutrition or exercise) or mental front.

Specific Dimensions of Network Connectivity Promote Career Satisfaction, Psychological Well-Being and Health


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For More Information: ActivateNetworks.net

Contact Jackie Criscuolo: [email protected]

http://www.activatenetworks.net/

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[Webinar] "How to Keep Top Talent & Improve Your Bottom Line"