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An Organizational Lens

Over at NetAge's Endless Knots, Jessica Lipnack and Jeff Stamps have are providing a preview of a chapter they've contributed to an upcoming book on High Performance Teams.

They have been developing with a client, a network analysis method that overcomes some of the shortcomings of the standard SNA/ONA method. Instead of using surveys or other methods to determine what linkages exist among people in the informal organization, they asked a very simple question: what if we just did a map of the formal organization? In other words, what could be learned by using a network analysis tool to examine a hierarchy?
The resulting tool, OrgScope, uses a hyperbolic network modeling tool from Inxight, reading data straight out of a corporation's SAP system.

In this project, they supported a manager who was in the process of setting up a completely virtual, matrixed organization in a global company. The OrgScope views helped to answer questions like:


  • Did some nodes (people) in the organization have more direct links than others?
  • Did most managers have an average span of control?
  • Were certain positions clearly hubs in the network?

When the maps were presented to the new management team, can you guess what happened? Questions! (This is the primary point I always make when I give tutorials and workshops in ONA/SNA: "The primary goal is to be able to ask good questions.")

The ultimate result in this case was a reconsideration of the organizational structure with an eye to balancing the number of direct reports at each level. Moreover, after data was added to reflect the matrixed relationships (which are not always recorded), the maps provided insight into the internal communications model -- looking at how information moved across the organization, not just through organizational cascades.

This is another good example of how the network lens -- whichever way you want to look at the network in your organization -- enables action guided by fresh insight.

Comments (3)

Keith Fortowsky:

"The ultimate result in this case was a reconsideration of the organizational structure with an eye to balancing the number of direct reports at each level."
Do you have any fears that the end result of this approach will be managerial compensation again pretty directly linked to # of reports/size of budget? Isn't this the kind of world we're trying to move away from?

Keith - thanks for your comment. If we implied that the company we wrote about "balanc[ed] the number of reports at each level," apologies. They did not. What they did was to notice the outliers and direct additional HR and IT support to those people with unusually large loads, this after someone with an outrageous number of reports threw up his hands and quit. I'm not aware of this company's comp scheme having anything to do with number of managerial reports or size of budget but rather pay scale as determined by position.

Key point about "OrgScope-y" type approaches is this: They/it allow(s) you to see things you just can't see with org charts on a piece of paper or even on a Powerpoint screen. And once you look and measure, you don't want *not* to. It's valuable, we believe, for companies to learn that their largest organizations are often buried 5, 6, and 7 levels down. From the top, all companies tend to look the same but when you go down deep, below the surface that most executives see, the world looks quite different.

I'm interested to know whether this explanation makes sense to you...jessica

Keith Fortowsky:

Yes, your explanation makes a lot of sense, thanks. /Keith

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