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http://www.orgnet.com/sna.html

An Introduction to

Social Network Analysis

Social network analysis [SNA] is the mapping and measuring of relationships and flows between people, groups, organizations, animals, computers or other information/knowledge processing entities. The nodes in the network are the people and groups while the links show relationships or flows between the nodes. SNA provides both a visual and a mathematical analysis of human relationships. Management consultants use this methodology with their business clients and call it Organizational Network Analysis [ONA].

A method to understand networks and their participants is to evaluate the location of actors in the network. Measuring the network location is finding the centrality of a node. These measures help determine the importance, or prominence, of a node in the network. Network location can be different than location in the hierarchy, or organizational chart.

We look at a social network, called the "Kite Network"[see above], developed by David Krackhardt, a leading researcher in social networks. Two nodes are connected if they regularly talk to each other, or interact in some way. For instance, in the network above, Andre regularly interacts with Carol, but not with Ike. Therefore Andre and Carol are connected, but there is no link drawn between Andre and Ike. This network effectively shows the distinction between the three most popular individual network measures: Degree Centrality, Betweenness Centrality, and Closeness Centrality.

Degree Centrality

Social network researchers measure network activity for a node by using the concept of degrees -- the number of direct connections a node has. In the kite network above, Diane has the most direct connections in the network, making hers the most active node in the network. She is a 'connector' or 'hub' in this network. Common wisdom in personal networks is "the more connections, the better." This is not always so. What really matters is where those connections lead to -- and how they connect the otherwise unconnected! Here Diane has connections only to others in her immediate cluster -- her clique. She connects only those who are already connected to each other.

Betweenness Centrality

While Diane has many direct ties, Heather has few direct connections -- fewer than the average in the network. Yet, in may ways, she has one of the best locations in the network -- she is between two important constituencies. She plays a 'broker' role in the network. The good news is that she plays a powerful role in the network, the bad news is that she is a single point of failure. Without her, Ike and Jane would be cut off from information and knowledge in Diane's cluster. A node with high betweenness has great influence over what flows in the network. As in Real Estate, the "golden rule" of networks is: Location, Location, Location.

Closeness Centrality

Fernando and Garth have fewer connections than Diane, yet the pattern of their direct and indirect ties allow them to access all the nodes in the network more quickly than anyone else. They have the shortest paths to all others -- they are close to everyone else. They are in an excellent position to monitor the information flow in the network -- they have the best visibility into what is happening in the network.

Network Centralization

Individual network centralities provide insight into the individual's location in the network. The relationship between the centralities of all nodes can reveal much about the overall network structure.

A very centralized network is dominated by one or a few very central nodes. If these nodes are removed or damaged, the network quickly fragments into unconnected sub-networks. A highly central node can become a single point of failure. A network centralized around a well connected hub can fail abruptly if that hub is disabled or removed. Hubs are nodes with high degree and betweeness centrality.

A less centralized network has no single points of failure. It is resilient in the face of many intentional attacks or random failures -- many nodes or links can fail while allowing the remaining nodes to still reach each other over other network paths. Networks of low centralization fail gracefully.

Network Reach

Not all network paths are created equal. More and more research shows that the shorter paths in the network are more important. Noah Friedkin, Ron Burt and other researchers have shown that networks have horizons over which we cannot see, nor influence. They propose that the key paths in networks are 1 and 2 steps and on rare occasions, three steps. The "small world" we live is not one of "six degrees of separation" but of direct and indirect connections <3 steps away. Therefore, it is important to know: who is in your network neighborhood? Who are you aware of, and who can you reach?

In the network above, who is the only person that can reach everyone else in two setps or less?

Boundary Spanners

Nodes that connect their group to others usually end up with high network metrics. Boundary spanners such as Fernando, Garth, and Heather are more central than their immediate neighbors whose connections are only local, within their immediate cluster. Boundary spanners are well-positioned to be innovators, since they have access to ideas and information flowing in other clusters. They are in a position to combine different ideas and knowledge, found in various places, into new products and services.

Peripheral Players

Most people would view the nodes on the periphery of a network as not being very important. In fact, Ike and Jane receive very low centrality scores for this network. Yet, peripheral nodes are often connected to networks that are not currently mapped. Ike and Jane may be contractors or vendors that have their own network outside of the company -- making them very important resources for fresh information not available inside the company!

Recent applications of SNA...

• Build a grass roots political campaign

• Determine influential journalists and analysts in the IT industry

• Unmask the spread of HIV in a prison system

• Map executive's personal network based on email flows

• Discover the network of Innovators in a regional economy

• Analyze book selling patterns to position a new book

• Map a group of entrepreneurs in a specific marketspace

• Find an organization's go-to people in various knowledge domains

• Map interactions amongst blogs on various topics

• Reveal key players in an investigative news story

• Map national network of professionals involved in a change effort

• Improve the functioning of various project teams

• Map communities of expertise in various medical fields

• Help large organization locate employees in new buildings

• Examine a network of farm animals to analyze how disease spreads from one cow to another

• Map network of Jazz musicians based on musical styles and CD sales

• Discover emergent communities of interest amongst faculty at various universities

• Reveal cross-border knowledge flows based on research publications

• Expose business ties &financial flows to investigate possible criminal behavior

• Uncover network of characters in a fictional work

• Analyze managers' networks for succession planning

• Discern useful patterns in clickstreams on the WWW

• Locate technical experts and the paths to access them in engineering organization

For Training options, please contact us about...

• Training in all aspects of social / organizational network analysis [Request...]

• Training in expert use of the InFlow network analysis software [Request...]

• Training in building Smart Networks via Network Weaving [Request...]

Software for social network analysis are available from the author.

Copyright © 2006, Valdis Krebs

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Valdis Krebs

Valdis is a management consultant, teacher, author and the developer of InFlow software for social and organizational network analysis [SNA/ONA]. InFlow maps and measures knowledge exchange, information flow, emergent communities, networks of alliances and other connections within and between organizations and communities. Since 1988, Valdis has participated in over 400 SNA/ONA projects.

Clients such as IBM Global Services, TRW, Raytheon, Northrop Grumman, Boeing, Aventis, Solvay, Cardinal Health, Annie E Casey Foundation, MacArthur Foundation, Barr Foundation, Centers for Disease Control [CDC], ACENet, Scottish Enterprise, Deloitte Touche Tohmatsu, Jaakko Poyry, PricewaterhouseCoopers, Booz-Allen & Hamilton, KPMG, University of Michigan Business School, Naval Postgraduate School, CapitalOne, Target, Sempra Energy, Lucent Technologies, Hiram Walker, Shell, various government offices, and hundreds of independent consultants use his software and services to map and measure networks, flows, and relationships in organizations, communities, and other complex human systems.

Valdis is an often quoted expert on network analysis and network weaving. His work has been covered in major media including Business Week, Discover Magazine, Business 2.0, New York Times Magazine, Fast Company, CNN, Entrepreneur, First Monday, Optimize Magazine, Training, PC, ZDNet, O'Reilly Network, Knowledge Management, Across the Board, HR Executive, Personnel Journal, Forbes, FORTUNE, CIO Magazine, MSNBC.com, HR.com, Release 1.0, several major newspapers around the world including the Wall Street Journal, New York Times, Christian Science Monitor, Cleveland Plain Dealer, USA Today, and Associated Press. Krebs is also quoted in dozens of books, many of which have reprinted his network maps.

Valdis has undergraduate degrees in Mathematics & Computer Science, and a graduate degree in Organizational Behavior/Human Resources and has studied applied Artificial Intelligence. He has given invited talks on organizational networks at UCLA School of Public Policy and The Anderson School of Management, Michigan State University School of Labor and Industrial Relations, Weatherhead School of Management - Case Western Reserve University, Cleveland State University, University of Michigan Business School, Kellogg School of Management - Northwestern University and the University of Latvia.

Before starting his own business, Valdis held various HR management positions at Disney, TRW, Toyota, and Ford. Valdis works from his office in Cleveland, Ohio with a network of colleagues in the USA, Canada and Europe.