Refereed Publications Abstract

The Role of Networks in Organizational Change

  • When companies experience organizational pain, their first response is often a structural fix, such as decentralizing, breaking down silos, or shifting to a matrix organization.
  • Many such efforts have only limited success because formal organizational charts mask the invisible networks that employees use to get things done.
  • Investing time and energy to understand networks can help companies measure the effectiveness of major initiatives and make organizational changes stick.
  • In many cases, a key to success is focusing on “brokers,” who serve as bridges across a number of subgroups in a network and are easy to overlook because they occupy the “white space” of organizations.

This article contains the following exhibits:

  • Exhibit 1: The number of relationships brokers have may be small compared with those of influential connectors.
  • Exhibit 2: In focusing on eliminating bottlenecks and improving connections among key employees, one company increased the ratio of employee ties that were external to their functions by 13 percentage points.
  • Sidebar Exhibit: Analysis can help employees understand how they compare with peers on dimensions such as information sharing, mentoring, and social interaction.

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