Human Challenges : Weblog

Wednesday Jan 09, 2008

Value of Social Networks

Recently I put together a few slides about the benefits of social networks to update our team. As you know from some of my former entries I strongly believe that Human Resources professionals need to get on top of this trend as it is touching many different HR related topics: organization consulting, change management, communication, learning, team collaboration, compensation, retention, motivation, leadership requirements...

Here are the slides, let me briefly go through:

What is Web 2.0? - Starting off with a brief explanation: The phenomenon of Web 2.0 appears to me as two fold. On one hand all the people participating via blogs, videos, etc. contributing, sharing and voting. On the other hand new technologies that make it easier and more comfortable to find information and consume information. This reminds the Sun Microsystems vision statement on the next slide: “Everyone and Everything participating on the Network!”
Use of Social Networks – Coming to the core, describing purpose and resulting benefits of using social networks in a company.
Concept of Social Capital - How to explain that Social Networks are so beneficial? They add value because they increase the social capital of a company and more social capital increases productivity through higher levels of collaboration.
Communities of Practice - One type of Social Network that is in the focus for being used in a business context. It is a Social Network based on knowledge sharing and learning and has already been looked at before the social revolution with Web 2.0. Call it a classic.
Improving Organization Performance – Visualizing how Communities of Practice increase social capital and finally increase organization performance.
21. Century Organization - Taken from the McKinsey article I mention in one of my blogs putting into perspective nowadays work environment. McKinsey talks about establishing formal networks, meaning nothing else than specific accountable social networks or call them communities of practice that leverage out many of the disadvantages of today's prevailing matrix organizations and provide an ideal background for knowledge workers to give their best.
What is in it for HR? - Play a role in increasing the intangible company value that makes up more and more of the overall company market value, some say up to 80%! Provide mechanisms to motivate and retain the 21. Century workforce of predominantly self directed knowledge workers with innovative recognition models based on collaboration and participation goals that can be measured. And build appropriate leadership capabilities to motivate collaborative behavior!