Closing Employee Performance Gaps with Organizational Network Analysis

In today’s networked work environment, understanding employee performance and collaboration is more critical than ever. Traditional performance reviews, which have been around for nearly 100 years since their inception by the US military at the end of World War I and introduction to the workplace in the 1920s, are often plagued with biases and inaccuracies. Performance appraisals, as they are commonly known, can sometimes miss the mark.

For instance, research shows that 60% of a manager’s performance rating is bias, with only 20% reflecting actual employee performance. Furthermore, in a performance review with a 5 point rating scale, a staggering 90% of employees will receive 3s and 4s, making it challenging for companies to discern genuine top and bottom performers. This is where the importance of sharing feedback and promoting rapid innovation comes into play.

Enter Organizational Network Analysis (ONA) – a powerful tool that provides a fresh perspective on employee performance and collaboration by examining the connections between nodes and ties in an organization. As the way we work has transformed, transitioning from side-by-side offices to intricate networks, managers often lack the visibility they once had to make informed ratings decisions. ONA offers valuable insights into these new dynamics, promoting a better understanding of the formal structure of organizations and the day-to-day work of its members.

Key Takeaways

• Organizational Network Analysis (ONA) provides a comprehensive understanding of employee collaboration and performance, enabling organizations to optimize their workforce.
• ONA helps identify hidden talent and collaboration patterns to drive innovation, while providing actionable insights into internal operations for improved productivity.
• Organizations can successfully leverage ONA by carefully planning the implementation process with consideration given to data protection concerns.

The Rise of ONA

As the workplace has become more interconnected, the importance of ONA has grown exponentially. Its ability to provide a more accurate and comprehensive view of employee performance and collaboration has led to its increasing use for talent mobility strategy. This shift away from traditional performance reviews reflects the recognition that these outdated methods often fail to capture the true value an employee brings to the organization.

Research shows that 60% of a manager’s performance rating is bias and just 20% is actual employee performance. ONA’s focus on the connections and collaborative efforts within an organization opens avenues for companies to identify untapped potential, address skills gaps, and foster a culture of continuous improvement and innovation.

This innovative approach to assessing performance can help organizations better understand their existing employees and create a more engaged and productive workforce through development programs encouraging growth and learning. By implementing an employee performance review system, companies can ensure that they are effectively evaluating their staff and providing the necessary support for success. The performance review process, with the help of performance review templates and performance review examples, can be a valuable resource in this journey.

The Power of Organizational Network Analysis (ONA)

The power of ONA lies in its ability to measure performance and collaboration in today’s networked work environment. Unlike annual reviews, ONA provides a more dynamic and accurate view of employee performance by examining organizational networks and the flow of information. This comprehensive understanding of how employees collaborate and contribute to company culture can lead to significant improvements in overall well-being, performance, and alignment with organizational goals.

It's worth noting that 15% of employees create 50% of the impact in any organization, while 5% of employees account for 50% of the problems. ONA's unique approach can help pinpoint these individuals, ensuring that talent is recognized and challenges are addressed.

Organizations can optimize their workforce and drive innovation with ONA’s ability to identify hidden talent and collaboration patterns. This innovative approach to talent management can complement and enhance traditional performance review processes, providing a clearer picture of employee performance and potential. By combining expertise from various departments, businesses can achieve rapid innovation and strategic success.

Identifying Hidden Talent and Collaboration Patterns

ONA’s ability to identify hidden talent and collaboration patterns is a game-changer for organizations. Research indicates that in a typical network, 3-5% of people account for 20-35% of value-adding collaborations. Recognizing these individuals through ONA allows human resources to harness the power of their top talent in their day to day work, thereby fostering a collaborative environment that drives innovation, growth, and strategic success.

Moreover, ONA can help uncover central connectors who play a vital role in facilitating information flow and problem-solving within an organization. Sharing feedback and best practices becomes essential in improving performance. These individuals are often hidden gems, whose contributions might not be immediately apparent through traditional performance reviews. Leveraging ONA, organizations can recognize, nurture, and position these valuable employees for success.

How ONA Enhances Traditional People Analytics

ONA enhances traditional people analytics by providing a more dynamic and accurate view of employee performance, collaboration, and influence within an organization. It offers a quantitative perspective on performance based on every employee’s view of one another, allowing companies to measure performance through networks and provide constructive feedback for career development.

Traditional manager reviews often favor individuals who excel at self-promotion or manage up, disadvantaging those who don't engage in such behaviors. Leadership qualities are sometimes overshadowed in this process. Additionally, 360 reviews can suffer from selection bias, where employees cherry-pick their reviewers, leading to skewed results. ONA addresses these challenges by providing a holistic view of performance and collaboration.

Organizations are increasingly engaging in people analytics projects that incorporate ONA components, whether active, passive, or both, to enhance performance ratings and overall talent management. Integrating network analysis with traditional people analytics offers a comprehensive perspective of an organization’s internal operations, uncovering untapped talent and collaboration trends, and providing actionable insights for improving productivity, employee experience, and internal mobility.

Real-World ONA Success Stories

Real-world ONA success stories demonstrate its effectiveness in driving innovation, leadership development, and overall organizational performance. Leveraging ONA, organizations can glean valuable insights to bolster productivity, enhance employee experience, and identify high-impact employees who slip through the cracks in traditional performance reviews.

These success stories serve as a testament to the power of ONA in transforming organizations and unlocking their full potential. We’ll examine how ONA has driven innovation at a global SaaS company.

Leadership Development at a Global Consumer Goods Company

In the midst of "The Great Resignation" of 2021, most organizations grappled with challenges, but a global SaaS provider stood out by leveraging a robust business strategy. Faced with the daunting task of retaining mission-critical employees, traditional performance reviews fell short. This prompted the VP of People & Ops, like many business leaders, to turn to Organizational Network Analysis (ONA) as a best practice. By encouraging employees to participate and provide employee feedback, the company was able to identify people considered top performers.

Remarkably, while many businesses saw up to 40% workforce turnover due to a lack of employee engagement, this company harnessed rapid innovation to retain 100% of its key talent, experiencing less than 10% overall turnover. This strategic use of ONA not only preserved the company's future state, culture, and growth trajectory but also resulted in substantial cost savings from potential attrition.

Practical Applications of ONA

ONA has various practical applications beyond talent management and performance reviews. Identifying change agents and key influencers within an organization through ONA can fuel successful change initiatives and optimize collaboration networks.

To effectively utilize ONA, organizations can pose questions such as:a) Who do you go to for help and advice?b) Who energizes or motivates you?c) Who do you see as an outstanding contributor?d) Who do you believe needs additional support or attention?These questions can provide insights into the dynamics of the organization and help identify key players and areas of improvement.

Additionally, ONA can be employed to refine decision-making procedures, boost team productivity, and foster knowledge sharing and creativity. These insights can aid in improving employee retention and turnover, further demonstrating the versatility and power of ONA in the modern workplace.

Implementing ONA in Your Organization

Implementing ONA in your organization requires careful planning, vendor selection, and a clear understanding of its potential benefits and applications. The ONA implementation process necessitates establishing objectives, selecting the appropriate tools, and gathering data.

It is also important to:

• Analyze the data
• Visualize the ONA network
• Use the findings to propel organizational improvements
• Construct an action plan
• Carry out the changes
• Assess the outcomesBy following these steps, organizations can successfully leverage ONA to enhance performance, collaboration, and talent management.

Summary

In conclusion, Organizational Network Analysis is a powerful tool that offers a fresh perspective on employee performance and collaboration. By integrating ONA with traditional performance reviews and people analytics, organizations can gain valuable insights into their workforce and unlock hidden potential.

As ONA continues to gain traction in the modern workplace, its potential applications and benefits will only continue to grow. By embracing this innovative approach to talent management, organizations can drive innovation, develop world-class leaders, and ultimately achieve greater success in today’s competitive business landscape.

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Frequently Asked Questions

What is organizational network analysis how is it used?

Organizational network analysis (ONA) is a tool to measure and graph connections and patterns of collaboration between people within and across organizations. Companies use ONA to optimize operational efficiency, monitor the breadth of connections between employees, make data-driven decisions, drive innovation and execute strategies.

What are the benefits of organizational network analysis?

Organizational network analysis provides invaluable insights into the formal and informal relationships of an organization. This data can help shape strategy, foster collaboration, spur innovation, and introduce new leaders, ultimately leading to a more sustainable and effective business.

What do you mean by organizational network?

An organizational network is a group of three or more organizations that collaborate, share resources, and work together in order to achieve shared goals.

What should I say in a performance review?

In your performance review, you should talk about your achievements, ways to improve, skills you've developed, company development, feedback on tools and equipment, experience in the workplace, how you can help, and your future expectations. You can also discuss what your boss could provide that would help you be more effective in your job

How can ONA be used to identify hidden talent and collaboration patterns?

ONA can be used to identify hidden talent and collaboration patterns by uncovering central connectors and high-impact employees who are often overlooked.