At the 2018 International Conference on Social Computing, Behavioral-Cultural Modeling, & Prediction and Behavior Representation in Modeling and Simulation (SBP-BRiMS), I presented a short paper titled “Formal Organizations, Informal Networks, and Work Flow: An Agent-Based Model” (PDF).
The paper presents initial findings of a continuing project (view/follow project on ResearchGate) to develop and refine a generalized organizational agent-based model that includes both formal organization hierarchy (i.e., a so-called “organization chart”) and the informal networks that really matter in a company (i.e., what David Krackhardt and Jeffrey R. Hanson aptly called “the company behind the chart“). Such a generalized model would be useful to create simulations of a variety of individual and organizational processes at multiple levels (e.g., employees, managers, executives, and overall organization) and to precisely quantify processes as the simulations unfold.
Initial findings from early model runs suggest potential decreases in both individual and organizational productivity as supervisory span-of-control increases in organizations with cultures of micromanagement.
Below you can read the paper abstract and find out more information about the model.
Few computational network models contrasting formal organization and informal networks have been published. A generalized organizational agent-based model (ABM) containing both formal organizational hierarchy and informal social networks was developed to simulate organizational processes that occur over both formal network ties and informal networks. Preliminary results from the current effort demonstrate “traffic jams” of work at the problematic middle manager level, which varies with the degree of micromanagement culture and supervisory span of control. Results also indicate that some informal network ties are used reciprocally while others are practically unidirectional.
Keywords: organizations, networks, ABM, boundary spanning
My model will be made available under the Apache 2.0 license from OpenABM for others to use in their own research. Please feel free to use, refine, or extend this model with attribution.
Briggs T.W. (2018) Formal Organizations, Informal Networks, and Work Flow: An Agent-Based Model. In: Thomson R., Dancy C., Hyder A., Bisgin H. (eds) Social, Cultural, and Behavioral Modeling. SBP-BRiMS 2018. Lecture Notes in Computer Science, vol 10899. Springer, Cham https://doi.org/10.1007/978-3-319-93372-6_21 (PDF)
Reid Hoffman, Ben Casnocha, and Chris Yeh’s The Alliance: Managing Talent in the Networked Age (find in a library) is a short but engaging read focused on three core ideas for talent management in the “networked” age:
1. Use an “Alliance” framework between employer and employee
2. Invest in and leverage employee networks
3. Encourage and/or run employee alumni networks and groups
The Alliance Framework
The book opens with the usual assertion that the old model of “lifetime” employment is dead. Where it begins to veer from the typical, though, is by frankly criticizing the alternatives seen as replacing lifetime employment: falsely ascribing “family” status to an organization and its members and employees, or fully resigning to a free agent, market-ruled alternative.
Most CEOs have good intentions when they describe their company as being “like family.” They’re searching for a model that represents the kind of relationships they want to have with their employees–a lifetime relationship with a sense of belonging. But using the term “family” makes it easy for misunderstandings to arise.
In a real family, parents can’t fire their children.
The authors instead point to professional sports teams as an exemplar of the Alliance framework. The professional sports team has a specific mission (win games and championships) and members come together to accomplish the mission, even as the composition of the team changes over time.
While a professional sports team doesn’t assume lifetime employment, the principles of trust, mutual investment, and mutual benefit still apply. Teams win when their individual members trust each other enough to prioritize team success over individual glory; paradoxically, winning as a team is the best way for the team members to achieve individual success.
Borrowing a military term, the authors suggest that organizations harness entrepreneurial talent by using a tour of duty framework. They are careful to note that companies are very different from the military: while a departing employee might get a farewell party, a soldier who leaves his unit before his tour is complete is AWOL and gets court-martialed. They argue that the metaphor is still useful, however, since both military and business tours of duty focus on honorably completing a specific, finite mission.
Tours of duty are defined by the specific mission to be accomplished, and not time-in-role as career experience is often reduced to. Tours of duty are also not “one size fits all,” and three different types of tours are suggested:
Rotational Tour of Duty
Typically at the entry or junior level, Rotational tours are not personalized to specific employees. Rotational tours are often used by consulting firms, investment banks, and tech companies who provide standardized on-boarding for new junior employees, often allowing them to rotate through a finite number of roles during the often two to four years of the tour, usually for a predetermined number of months (3, 6, or 9) in each role. The primary purpose of the Rotational tour is to evaluate potential long-term fit on both sides: employer and employee.
Transformational Tour of Duty
Transformational tours are personalized to individual employees and are less about specific time commitments and more about a clear and specific mission to be accomplished. The promise of the Transformational tour is that it gives the employee the opportunity to transform both his or her career and the company by accomplishing something substantive. The crux of the Transformational tour is this win-win synergy for employer and employee. The Transformational tour is personalized and structured at the outset with both the employer’s goal and the employee’s future career aspirations–whether in the current company or elsewhere–front and center.
Foundational Tour of Duty
Foundational tours often occur at the highest (founder/executive) level. Foundational tours occur when there is “exceptional alignment” between employer and employee as a defining hallmark of the relationship, and the employee is identified with the organization and vice-versa (e.g., Warren Buffett and Berkshire Hathaway). Typical tenure in Foundational tours is 10 years or more, though Foundational tours are not restricted to executives, since Foundational tours at all levels ensure ownership, continuity, and serve as keepers of institutional memory.
No one ever washes a rental car. A Foundational employee would never allow the company to cut corners to meet short-term financial goals.
The authors spend the next several chapters of the book carefully laying out the prerequisites and steps for using tours of duty. First, they discuss the importance of defining an organization’s core mission and values so specifically and rigorously that some players feel strong alignment while others feel so out of alignment they might leave the organization. (The authors argue that organizations want to lose this latter group.) Next, they provide specifics on having the kind of honest, raw conversations with employees that are crucial for effectively using a tour of duty framework. Finally, they provide suggested timelines and tools for checking in and using feedback during the course of a tour of duty, as well as negotiating subsequent tours.
Employee Network Intelligence
In the second major strategy in The Alliance, the authors claim that employee networking is a good thing. Rather than seeing networking as a detriment to the organization or a behavioral indicator that an employee is thinking about leaving, The Alliance suggests that employers should pay employees to build, maintain, and leverage their networks. The authors argue that in the current era of knowledge work, human capital is defined not simply by the knowledge, skills, and abilities in each individual employee, but by all that those employees can bring to an organization through the responsible and skilled use of their individual networks. Employers should enable and train all employees to skillfully utilize social media, pay for learning opportunities and institute a formal system of knowledge transfer whenever external learning occurs, and even start a “networking fund” and allow employees to expense networking lunches.
Corporate Alumni Networks
The third strategy in The Alliance is that organizations should network with ex-employees substantially more than most currently do, specifically by creating corporate alumni networks to facilitate lifelong alliances between organizations and former employees. The authors note extensive potential ROI from corporate alumni networks, including the ability to hire more great people through referrals, new customers, access to competitive and network intelligence, and alumni as brand ambassadors. The authors provide specific how-to guidance on setting up and running corporate alumni networks, ranging from the relatively low-cost to the highly-involved.
Overall, The Alliance: Managing Talent in the Networked Age (find in a library) turns some existing talent management practices sideways, if not upside down. While the authors are perhaps too light on caveating that the Silicon Valley talent ecosystem in which they operate may not generalize to other industries or fields, the talent strategies Hoffman, Casnocha, and Yeh are suggesting are by no means reserved for the tech world. The Alliance challenges leaders, managers, and HR strategists to think differently about legacy talent management practices that may no longer fit today’s environment.