A study from Manchester Business School’s Institute of Innovation and Research and ICI has confirmed that getting people talking informally - water cooler networking - is one of the most effective ways of unlocking knowledge within an organisation.
The joint project compared the formal and informal social networks within large research and development organisations where the free exchange of ideas and know-how is crucial.
Dr Phil Gamlen, Senior Fellow at Manchester Business School, said, "Businesses should ask themselves whether they are maximising the power of informal networks as an integral part of their business development strategy. However, it’s not always as straightforward as it seems - especially if an organisation has recently undergone restructuring, which can sever key relationships."
The study has generated five action points which can easily be put into practice:
• Informal social networks matter - coffee room or water cooler gossip lubricates the real business of the firm. Informal contacts help spread key knowledge within an organisation. Yet informal contacts are often ignored when managing organisations.
• Informal networks need managing. Individuals who are key technology 'nodes' and those who cross boundaries must be identified and nurtured. These key people can help or hinder know-how flow around a large organisation.
• To be an effective knowledge node needs a particular set of personal characteristics but coaching and training can increase impact still further.
• It is possible to map networks within firms to reveal gaps and blocks which may have to be supported by more formal structures, such as regular meetings.
• Loss of personnel not only means a loss of formal know-how, but the organisation also disproportionately suffers from the collapse of informal networks which a manager has built up during their employment.
(Courtesy The People Bulletin)
