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How ONA and Leadership Development Can Support Businesses in a Recession

Francisco Marin & David Green

Since I entered the field ten years ago, organisational network analysis (ONA) has consistently been one of the most common topics discussed at conferences, with people analytics professionals, and at peer meetings for member companies of the Insight222 People Analytics Program. 

For much of that time, ONA seemed to be 'more talk than action', with many practitioners I spoke to giving priority to ONA as an analytical technique they wanted to deploy rather than as a tool that could potentially give unique insights on a business problem they were trying to solve. Research we've undertaken at Insight222 allied to a rising number of case studies in publications like Harvard Business Review and MIT Sloan Management Review strongly points to that trend being reversed. 

Examples include:

  1. How General Mills and Uber used ONA to study collaboration, productivity and wellbeing

  2. How Microsoft studied the upsides and downsides of employee connectedness

  3. How remote work impacts innovation

Figure 1. (source: Insight222 People Analytics Trends Report 2022)

Of the companies surveyed about their technology adoption as part of Insight222's People Analytics Trends 2022 study , we found that 48% are using collaboration analytics and ONA technologies – an increase from 39% in 2021 (see Figure 1.). Moreover, an additional 35% of survey respondents are considering investing in at least one collaboration analytics and ONA technology tool.     

Separate Insight222 research found that people analytics teams are using ONA and collaboration analytics for a variety of use cases, including to understand 'real' organisational networks, the impact of remote and hybrid working, intra- and inter-team collaboration and inclusion, and organisations are increasingly using ONA as part of their employee listening ecosystem. 

The increased demand for and use of ONA and collaboration analytics technologies has seen a number of technology firms establish themselves in the field. One of these companies is Cognitive Talent Solutions, so I was delighted to catch up recently with their CEO and co-founder Francisco Marin to reflect on the current economic headwinds and discuss how ONA can be applied to leadership development to support organisations during a recession.

Francisco, most observers believe that we are heading towards a global recession, and we are sadly seeing an increasing number of layoffs being announced, especially in the tech sector. When it comes to talent management, what should organisations consider around layoffs?

When it comes to talent management during a recession and layoffs, organisations should consider the importance of combining human and social capital:  

  • Human capital refers to employees' knowledge, skills, and abilities. It is important to retain key employees who are critical to the organisation's success, as they possess unique skills and knowledge that cannot easily be replaced.  

  • Social capital refers to the networks and relationships employees have within the organisation and with external stakeholders. It is important to consider the impact of layoffs on remaining employees, as well as the organisation's relationships with external stakeholders, and take steps to maintain morale and engagement.

  • Combining human and social capital can help organisations mitigate the negative impact of layoffs by retaining key employees and maintaining positive relationships with external stakeholders. This can help the organisation to maintain its performance and competitiveness in difficult economic conditions. 

At Cognitive Talent Solutions, I know you have helped many of the companies you have worked with to identify their informal leaders. Why are informal leaders important, and what role can they play in times of uncertainty?

The significance of informal leaders lies in their impact on the behaviour and mindset of their colleagues. They can be instrumental in shaping the atmosphere of a group or organisation. In times of unpredictability, informal leaders can be vital in guiding others through the challenges and providing the means to manage uncertainty and stress. They are also able to foster unity and motivation among the group and act as a support system and role model during trying times.

A growing number of organisations are turning to Organisational Network Analysis (ONA) to help identify informal leaders. Please can you provide an overview of the different types of ONA and how this technique can be used to identify informal leaders?

ONA can be conducted through two main methods: active and passive. Active ONA involves gathering data directly from the organisation's workforce through surveys, interviews, or other forms of engagement. This method allows for a more in-depth understanding of the relationships and interactions between individuals, as well as their attitudes and perceptions. Passive ONA, on the other hand, involves collecting data from existing sources, such as electronic communication and attendance records. This method allows for a large-scale analysis of interactions within an organisation and can reveal patterns of communication and collaboration that may not be apparent through active data collection methods. 

Based on our experience, Active ONA is the most effective method for identifying informal leaders within an organisation, as it allows for a more detailed and accurate understanding of the relationships and interactions within that company while also respecting the data privacy of individuals. Passive ONA can still provide valuable insights but can raise data privacy concerns when implemented at an individual level. From a data privacy perspective, the best approach when implementing passive ONA entails analysing metadata from collaboration tools at an aggregate level, which is not ideal when it comes to identifying informal leaders.

What are the pros and cons of active and passive ONA, and when should you use either?

The main advantage of active ONA is that it allows for the collection of detailed and specific information about the relationships within the organisation. However, it can be time-consuming and expensive to collect and analyse the data, and there may be a risk of bias if the survey or interview questions are not carefully crafted.  

Passive organisational network analysis, on the other hand, is less time-consuming and less expensive than active network analysis. However, the data collected may be less detailed and specific, and there may be a risk of missing important relationships or patterns if the data sources are not carefully chosen.  

Both active and passive organisational network analysis have their own advantages and limitations. Active network analysis can provide more detailed and specific information, but it is more time-consuming and expensive, whereas passive network analysis is less time-consuming and less expensive, but it may not be as detailed or specific. 

In most cases, it is beneficial to use both active and passive network analysis methods together to get a more comprehensive view of the organisation's relationships. For example, active network analysis can be used to gather more detailed information about specific relationships, while passive network analysis can be used to identify broader patterns and trends within the organisation.

How can ONA be used to support leadership development?

ONA can be used to identify potential leaders and target leadership development programs to those leaders or potential leaders who will likely have the most impact on the organisation. Additionally, ONA can be used to understand how information is transmitted within the organisation, identify areas where communication can be improved, and identify people with strong communication skills who may be suitable for leadership positions.

ONA can also be used to identify high-potential individuals who can be groomed for leadership roles in the future and target training and development programs to those who need them most. Overall, ONA can provide valuable insights into the relationships and communication patterns within an organisation, which can be used to identify individuals with leadership potential, support the development of existing leaders, and improve the overall effectiveness of leadership within the organisation.

Figure 2. (Source: Cognitive Talent Solutions, Identification of informal leaders in a private hospital network)

In the context of a private network of hospitals during the pandemic, ONA helped by identifying informal leaders within the organisation who did not have formal positions of authority. These informal leaders were considered for leadership development programs and succession planning initiatives. 

By identifying these informal leaders, the hospitals were able to leverage their knowledge and expertise to improve communication and coordination across the network. For example, the informal leaders were able to bridge communication gaps between different departments and teams, as well as provide valuable insights into how to best respond to the challenges posed by the pandemic. Additionally, by identifying these leaders, the hospitals were able to build stronger, more resilient networks that were better able to adapt to changing circumstances. 

Overall, ONA helped the private network of hospitals to better understand the structure of their organisation and how to effectively leverage the strengths of their team members to enhance leadership development.

And what about teams? What role can ONA play in assessing collaboration and productivity in teams?

ONA can provide unique insights to assess collaboration and productivity in teams. It can identify the structure of a team, including connections and information flow. It can also measure team cohesion, and identify key team members and cross-functional teams, as well as relationships with external stakeholders. 

Figure 3 (Source: Cognitive Talent Solutions, newly incorporated Manager not accepted by existing team members)

Additionally, ONA can identify areas where team members lack skills or knowledge for leadership. This information can be used to identify potential issues, support key team members and improve overall effectiveness and productivity. Finally, ONA can also provide valuable insights into relationships and communication patterns within a team, and overall it is a powerful tool for assessing and improving team performance.    

In the case of a global IT company, ONA helped to identify that a recently incorporated manager was not accepted by the team. This was likely determined by analysing patterns of communication and identifying a lack of communication and collaboration between the manager and other team members. 

The manager's lack of acceptance by the team had a negative impact on the team's productivity and collaboration dynamics. Without the support and buy-in of the team, the manager was struggling to effectively lead and make decisions, leading to delays, confusion and lack of alignment in the team. Additionally, the lack of communication and collaboration between the manager and other team members may have further hindered the team's ability to work together effectively

With the downturn expected in 2023 forecasted to paradoxically coincide with heightened talent scarcity and competition, how can ONA support organisations in retaining its key talent?

ONA can support organisations in retaining key talent by identifying key players within the organisation, understanding communication patterns and relationships, and identifying areas for improvement. ONA can be used to identify individuals who have a high degree of influence within the organisation and strong relationships with their peers. 

This information can be utilised to identify potential leaders and direct retention strategies to those who have the most potential impact on the organisation. Overall, ONA can provide valuable insights into the relationships and communication patterns within an organisation, which can be used to identify and retain key players in a proactive manner. 

What are some of the other key use cases where ONA can provide unique insights?

Other ONA use cases include:  

  • Change Management: Accelerating strategic change adoption by identifying and leveraging informal leaders as early adopters. Industry research shows only 3% of informal leaders can influence up to 85% of the remaining population. 

  • Diversity & Inclusion: Understanding the organisation's inclusion dynamics at the level of age, gender, and ethnicity. Our research at CTS revealed that employees from underrepresented minorities are twice as likely to be disconnected from the organisation's informal network.

  • Employee Wellbeing: Assessing burnout risk at an aggregate level through digital footprint analysis.

  • Mergers & Acquisitions: Accelerating the realisation of synergies and preventing cultural clashes in mergers and acquisitions.  

  • Onboarding: Reducing new hires' time-to-productivity by positioning informal leaders as buddies throughout the adaptation period. 

  • Return to the Office: Understanding the collaboration dynamics of remote versus on-site work models in the organisation.    

 What key tips and guidance would you offer to HR leaders looking to get started with ONA?

  • Establish clear goals: Before collecting data, ensure that you have a clear understanding of the problem or opportunity you are trying to address through ONA. This will guide data collection and analysis towards the right objectives.  

  • Involve key stakeholders: ONA can provide valuable insights, but it may also raise sensitive issues in an organisation. To ensure support and successful implementation, involve key stakeholders such as HR and People Analytics leaders, managers and employees from the beginning. 

  • Start with a small scope and scale up gradually: ONA can be complex and resource-intensive, so it's best to start with a small scope and gradually scale up as you gain experience and comfort with the process. This will help establish a strong foundation of data and experience for further analysis.

THANK YOU

Thanks to Francisco for sharing his time, perspective and expertise with readers of the myHRfuture blog. If you want to find out more about his work and Cognitive Talent Solutions, you can connect with Francisco on LinkedIn, follow him on Twitter @fmarinruz, and visit the Cognitive Talent Solutions website.

If you'd like to explore more of Francisco's recent work, do take a look at some of the links below:

To find out more about Francisco’s work and Cognitive Talent Solutions please visit the following links:

ABOUT THE AUTHORS

Franciso Marin

Francisco is the Co-founder and CEO of Cognitive Talent Solutions, a company specialising in AI-powered Organisational Network Analysis. With over 10 years of experience in People Analytics and Process Improvement, Francisco has a wealth of knowledge in this field. He is originally from Cordoba, Spain, and holds a Master's Degree in Business Administration from Loyola University Andalusia. Francisco has lived and worked in Europe, Asia, and North America, fluently speaking Spanish, English, and Slovak languages. Francisco has a background working at IBM as a Business Analytics Leader for Sales Transaction Support Operations in Europe, the Middle East, and Africa, where he implemented global solutions for process automation and predictive talent retention. He is certified as a Lean Six Sigma Black Belt and has experience implementing various methodologies such as GDF, Agile, Lean, Six Sigma, and Design Thinking. In addition, Francisco co-developed a patent-pending Organisational Network Analysis system for mergers, acquisitions, and reorganisations, and was awarded as Emerging Innovator of the Year at the 2020 NWA Tech Summit. He has facilitated Organisational Network Analysis modules for People Analytics programs organised by DCH and LMS. He is also an Ambassador in the US for DCH, an international association of HR executives with 4000+ members across 12 countries.

 

David Green

David is a globally respected author, speaker, and executive consultant on people analytics, data-driven HR and the future of work. With lead responsibility for Insight222’s brand and market development, David helps chief people officers and people analytics leaders create value with people analytics. David is the co-author of Excellence in People Analytics, host of the Digital HR Leaders podcast, and regularly speaks at industry events such as UNLEASH and People Analytics World. Prior to co-founding Insight222, David worked in the human resources field in multiple major global companies including most recently with IBM.

About Cognitive Talent Solutions

Cognitive Talent Solutions (CTS) is a leading provider of AI-powered Organisational Network Analysis (ONA). It has been acknowledged as a leading People Analytics vendor by RedThread Research and has been named among the top 12 vendors shaping the ONA space by David Green. CTS was also awarded Emerging Innovator of the Year at the 2020 NWA Tech Summit. With funding from institutional investors like Morgan Stanley and Starta Ventures, CTS stands out as one of the few vendors offering both active and passive ONA capabilities. The company has developed patent-pending ONA technology, integrated in their cloud-based platform Cognitive Network Analyzer™. CTS serves a diverse clientele of Fortune 500 and Global 2000 companies and has established partnerships with technology and consulting firms such as ServiceNow and Facthum among others.