Network science is a rapidly evolving field that became itself in the first 20 years of the 21st century. Explore ways that connections shape and influence individuals, organizations, and society. From computer and neural networks to social and communication systems, networks are ubiquitous.
For today's leaders, understanding the dynamics of networks provides an important framework for navigating the complex and increasingly interconnected worlds we live in.
At its core, the network consists of individual entities such as people in social networks and nodes, as well as connections between them. It is the flow of information, energy, or resources that traverse these connections.
The new science of networks delivers a profound yet simple message for leaders. Focus on the space between people. These are spaces where relationships form, and influence and collaboration flourish.
The work of famous scientists Christakis and Fowler on social networks shows this point. They observed that military recruits often train even when parts of a larger battalion often train in small, closely connected groups of eight to ten people. This structure promotes a culture of mutual trust, trust and open communication. In this area, each individual's behavior directly affects the success of the group. result? Their personal bonds (i.e., connections) are so strong that soldiers are willing to fight each other and die.
This example highlights the importance of improving flows within the network. Flow is a way in which information, energy and influence moves between individuals. In today's interconnected world, effective leadership depends on fostering strong connections and enabling flows to promote organizational success.
Leaders who apply these insights from network science will introduce five key strategies.
1. Strengthen the flow at the node level. To improve flow within the network, leaders need to focus on strengthening individuals' socio-emotional abilities. Building deeper relationships, adoration, and curiosity can improve the quality of these flows. A respect helps an individual to recognize what they don't know, and induces a curiosity and a desire to connect more deeply with people and ideas.
2. Use the power of a small team. Research consistently shows that small teams are better than larger teams. Groups of 4-5 develop stronger relationships, faster communication and greater trust. This creates an ideal environment for collaboration and agility. Leaders need to prioritize forming small, solid knit teams to allow for better performance.
3. Recognize your purpose as the most powerful “pull” force. Attractive and shared objectives provide clarity, motivation and meaning to individuals within the network. The objective creates a collective focus that resonates throughout the organization, activates individuals, and promotes behavior and resilience. Leaders need to pin the network to a clear and motivating purpose that gan rubans everyone across the organization.
4. Use the Engagement Catalyst Question to activate your purpose. To achieve their objectives, leaders need to ask open-ended engagement catalyst questions related to realizing their organization's objectives. These questions ignite reflexes, spark conversations, and aggressive action. Engagement Catalyst Questions can help translate objectives into tangible actions that energise the entire organizational network.
5. It promotes self-organization. When control is decentralized, self-organization appears, and feedback loops allow adaptation. A powerful shared purpose sets the conditions for the system to organize itself. This promotes innovation and responsiveness without external intervention. Leaders need to create an environment that allows teams to self-organize and drive innovation.
The right case: Transforming the General Electric Appliance
The former dominant US brand, General Electric Appliances (GEA), slowly declined in the 2000s. GEA products were no longer recognized as cutting edge, resulting in a steady loss of market share. By 2015, GEA was poised to fall to fifth place in the US appliance market.
Fast forward to 2022. GEA has achieved incredible growth. Between 2016 and 2022, GEA saw double-digit growth rates each year. Revenues skyrocketed from $5.9 billion to $11.3 billion, with GEA regaining its position as North America's top appliance brand.
Two important achievements in particular stand out.
- Product innovation: GEA has introduced 2,800 new products. 25% of that has been expanded to new product categories.
- Employee satisfaction: GEA experienced employee satisfaction of 76%. This exceeds industry and national standards. For three years in a row (2022-2024), GEA has been recognized as the perfect place for work.
What has changed?
GEA embraced the principles of network leadership and transformed into a network organization.
More specifically, GEA has been reorganized into a small, semi-autonomous team known as “Microenterprises.” Each micro prize usually consists of less than 10 people. They can make decisions about resource allocation, product development, and customer relationships. Instead of receiving a fixed salary, employees are compensated based on the value they create for their customers.
Furthermore, GEA has redefine its purpose. It has shifted to an ambitious purpose to simply be an electrical manufacturer and become a “major home ecosystem company.” This brand new purpose inspires the micro-people and provides a clear guide to their ongoing work.
In an interconnected world, effective leadership relies on mastering the dynamics of the network. This involves strengthening connections, strengthening flows, and creating an environment where collaboration and innovation can flourish. Leaders who recognize the power of networks and cultivate these connectivity unlock the full potential of their company. By implementing the principles of network leadership, organizations are prepared to actively engage in lasting complexity and continued future disruptions.
