Harnessing the power of informal employee networks

Most large corporations have dozens if not hundreds of informal networks, in which human nature, including self-interest, leads people to share ideas and collaborate.
Informal networks are a powerful source of horizontal collaboration across thick silo walls, but as ad hoc structures their performance depends on serendipity and they can’t be managed.
By creating formal networks, companies can harness the advantages of informal ones and give management much more control over networking across the organization.
The steps needed to formalize a network include giving it a “leader,” focusing interactions in it on specific topics, and building an infrastructure that stimulates the ongoing exchange of ideas.

Exhibit 1: Formal structures do not reflect how work really gets done.
Exhibit 2: Informal networks often have members who play such crucial roles that their departure would disrupt the network.
Exhibit 3: The differences between formal networks and matrix structures are significant.
Exhibit 4: A formal network reaching across the hierarchical structure can facilitate interactions among marketing professionals within an organization.

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