The most important managerial tool available for assessing patterns of relationships in informal networks is called social network analysis. By making critical patterns of interaction visible, social network analysis helps managers give informed answers to such questions as: Does information flow smoothly within a given network? Do functional departments or business units collaborate appropriately in taking their services to market? Is the collective expertise within a network being leveraged effectively? The result of such probing is likely to be improved collaboration at strategic junctures within an organization. Managers can carry out a social network analysis by following six steps:
PICK THE RIGHT GROUP
Although social network analysis can be applied to any group — from one consisting of a few people to an entire organization — it’s best to focus on those that are strategically important. Examples include top leadership networks, groups operating in cross-company partnerships and alliances, teams involved with new-product development, and networks of people who cross core work processes. In general, groups that cross physical, functional or hierarchical boundaries are good targets for improvement.
ASK THE RIGHT QUESTION
Social network analysis can be used to find out a variety of things about the groups in an organization. Companies are usually most interested in the flow of information within a network (the overarching question, then, is, Who do you seek information from to help you do... To read the complete article, login or sign-up using the form below.
Become a premium subscriber today to read this and all MIT Sloan Managmeent Review articles.
Buy this article. Purchase one or more copies of this article in PDF form.
Become a premium subscriber today to read this article and the entire archive of MIT SMR articles.
Upgrade your existing subscription to premium
Sign in if you are a premium subscriber.
Do you subscribe the MIT Sloan Management Review in print? Enter the email address and password you used when ordering. Don't remember? Lookup your subscription account information
- Register for free access to recent articles and the current issue of MIT Sloan Management Review.
- Subscribe and read articles from the past three years online.
- Premium subscription give you access to the entire archive of articles.

