We know it is not the organizational chart that tells us how the work gets done. The knowledge and power resides within an invisible network of personal relationships.
Mapping these informal relationships at a company can be revealing. The use of social network analysis, as a management tool, is accelerating because companies are hungry for ways to find and nurture their most in-the-know employees.
As innovation becomes more critical for corporate survival, understanding and encouraging these invisible networks between different groups of employees can lead to exciting new ideas. Online communities for special interest and knowledge groups serve as forums for people who don't regularly work together sharing best practices. Well-connected individuals, who show up as "hubs" of these networks, have developed group power and rise to take on formal, central roles in knowledge management.
Knowledge sharing is the most common reason that companies employ the practice. However, a map of social networks where you work can help in these common situations:
Integrating mergers & acquisitions to identify key players and build the trust required in post merger integration activities.
Managing change through communicating new strategies or reorganizations.
Sparking innovation by encouraging cross cultural cooperation outside traditional functional areas.
Spotting talent that is not visible on the organizational chart.
Planning for succession and knowing that potential leaders are trusted and which key experts hold the tacit knowledge within the organization.
Source: Managing Networks in BusinessWeek, February 27, 2006