19 November 2008
Social networking is good for organizations
Report advises how to ensure your networks steer clear of the "Dark Side".
Internal social networking has the potential to create a more resilient organization, according to a recent report, Network Citizens, published by think tank Demos.
The research developed visualizations of team networks in 6 organizations and found social networks to be at least as powerful as the formal organization, if not more so.
Power of networks
Mobile network provider Orange commissioned the report, which describes the benefits of networking. To challenge the concept that networking only engenders creativity, innovation and freedom, the report also cites some of the downsides (see Figure 1, below).
Figure 1. Some potential positives and negatives of networks
Into the light |
The dark side |
Build meritocracy, openness and democracy |
Exclude and discriminate |
Diffuse power away from hierarchical structures |
Hoard power for themselves |
Incubate the talents and ideas of the many |
Promote the interests of the few |
Source: Network Citizens report, Demos
The business world now has a greater acceptance and understanding of social networking sites such as Facebook.
At the same time, the availability of cheaper, faster and more widespread internet access is “super-charging” social networking by increasing people’s connectivity in and out of the office and globally.
Let employees be free
“Social networks can provide a safety net for business,” says Peter Bradwell, Demos researcher and the report’s author. He says today’s difficult business environment tends to create an instinctive reaction to “batten down the hatches”.
Managers may be looking to return to traditional “command and control”, where they closely monitor and measure productivity.
Allowing workers to have more freedom appears to create businesses more capable of maintaining stability.
“Allowing workers to have more freedom and flexibility might seem counterintuitive, but it appears to create businesses more capable of maintaining stability,” Bradwell says.
Secure interactive environment
The Hub spoke with David Lavenda, VP marketing & product strategy at WorkLight, a company that has helped make Facebook a business tool in some enterprises.
“It's important for communicators to provide useful tools for people to voice their concerns through a collaborative environment rather than a top-down approach,” he says.
“When deployed inside the firewall, social networking provides a secure working environment that allows employees to interact, while management concerns can be mitigated as internal discussions do not leave the confines of the organization,” Lavenda continues.
Networking: fundamental to business
“Networking has always been a fundamental part of good business practice,” says Robert Ainger, head of corporate at Orange Business UK. Its profile and significance are now increasing through proliferating new technologies, enabling connections between our personal and professional lives.
But he says companies should spot any tensions and deploy guidelines to protect a network’s positive impact, not hamper it. “Changing how your business approaches and facilitates social networking could present a significant opportunity in the current business climate,” he adds.
Mark Turrell, CEO, Imaginatik, a research participant, says his employees benefit by having space to explore ideas and develop business opportunities. “In this situation, having a virtual networked environment is really important to keep people together and maintain the coherency of the organization.”
Potential "dark side"
The report suggests a network “dark side” can stem from the blurring of organizational boundaries, which can create tensions between employees and employers.
In a virtual, online network, power is generally less visible than in the formal organization – where organograms clearly show who has authority and accountability. “In a network, the rivers of power often flow underground,” the report says.
“Without enough attention, these challenges jeopardize the very gains we presume networks can deliver.”
Although networks can improve information flow and support innovation, an individual’s loyalty may be as much to the network as to the firm. “Which poses sharp challenges if the interests of the network and the firm diverge,” says the report.
Whose network?
The report poses key questions about social network ownership and power:
- Who owns the network – the employee or the business?
- What is an individual’s responsibility to maintain their professionalism?
- Who holds power? On what basis? For whose benefit? To what end?
“Nurturing and hosting social networks can bring benefits in terms of productivity, innovation and workplace democracy.” But the report recognizes that “networks are ultimately as good or bad as the people who constitute them...The very power of some networks rests on their intimacy and exclusivity.”
A network 'dark side' can stem from the blurring of organizational boundaries.
Acknowledge hierarchical challenges
The report suggests several ways to guard against a negative accumulation of power by asking:
- Am I excluding some people from my network for no good reason?
- Does the network extend across gender and ethnic boundaries? Should it?
- What are the unwritten rules of network exchange – and are they fair?
The current shift from traditional hierarchical organizations can free employees to collaborate on new initiatives. “As the benefits of this looser ethic have become clear, so have challenges for how loyalty and work is measured and tracked.”
“The feedback from customers we’ve received confirms social networking’s benefits in the organization,” says Lavenda.
“Standard Chartered Bank, which is using Facebook for internal collaboration, can find information faster through expertise search and sharing business-critical info with colleagues and managers. The value this brings to the organization may not be easily tracked, but can be vividly felt throughout the enterprise.”
Practical advice
The report concludes with some practical advice for developing responsible, prosperous networks.
- Do not separate social and professional networking. Attempts to control employees’ use of social networking software at work may damage the organization by depleting its network capital.
- Value networking with people outside the firm. Too often, only senior staff are encouraged to build external relationships. The power of horizontal networks across organization boundaries is clear and growing.
- Keep in touch with ex-employees. The temptation during a difficult economic climate is to hunker down, but this risks cutting off flows of network capital. Companies should consider keeping former employees in the network.
- Do not police networks, but consider improvements. These should be a first step towards collective conversations about the networking “rules of the game”.
Importance of networking in a downturn
Orange’s Robert Ainger believes businesses can become more adaptable in dealing with today’s challenging economic climate. They should encourage employees to build more formal and informal relationships with each other – and use networking technology to form closer links with potential customers and partners.
“Our analysis suggests that the ‘ties that bind’ within organizations are important incubators of innovation and productivity. Networks contribute to organizational resilience, a vital attribute in an economic downturn.”
Relationships between workers are likely to be more important in difficult economic times.
The report concludes that relationships between workers are likely to be more important in difficult economic times.
Maintaining open dialogue
“In challenging times, it's increasingly important for employees and management to work in a cohesive, transparent environment, especially as there are fewer employees dealing with a bigger workload," says Lavenda.
It's important on several levels, he says. To maintain employee morale and a sense of achievement; but also to tighten business exchanges both internally and with trusted partners.
“Leveraging a social networking environment internally requires communicators to maintain an honest and open dialogue with management to both listen to their concerns and to emphasize the inherent benefits for the company,” Lavenda concludes.
Download the full report from the Demos website.
Have your say
The report observes that a “network permissive culture” requires trust on the part of managers and responsibility on the part of employees – do you think communicators have a role to play in building this type of culture?
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