Why Organizational Network Analysis Should be a Foundational Tool for People Analytics Practitioners

In the ever-evolving landscape of people analytics, Organizational Network Analysis (ONA) is emerging as a pivotal tool that should be considered foundational rather than merely a nice-to-have. While many traditional people analytics tools depend heavily on the quality of existing data, ONA stands out due to its unique capabilities and low dependency on data quality. Moreover, ONA is a highly transversal tool that can significantly impact various decision-making processes across the organization. This article explores why ONA should be integral to any robust people analytics strategy.

What is Organizational Network Analysis?

Organizational Network Analysis is a method used to visualize and analyze the informal networks of relationships within an organization. By examining how individuals interact, share information, and collaborate, ONA provides deep insights into the actual functioning of an organization, beyond the traditional hierarchical structures.

The Challenge of Data Quality in People Analytics

One of the significant hurdles in people analytics is the dependency on high-quality data. Many tools require accurate, comprehensive, and up-to-date data to generate meaningful insights. However, data quality can vary significantly across organizations and systems, often limiting the effectiveness of traditional analytics methods. This is where ONA offers a distinct advantage.

The Advantage of Low Dependency on Existing Data Quality

1) Active ONA: Insights from Ad-Hoc Surveys

Active ONA derives insights from ad-hoc surveys designed to capture the dynamics of interpersonal relationships within an organization. These surveys are tailored to elicit specific information about how employees interact and collaborate. Since the data is collected directly through these surveys, the insights are less dependent on the existing quality of organizational data. This approach allows for a more flexible and accurate representation of the current state of the organization’s networks.

2) Passive ONA: Analysis of Aggregated Metadata

Passive ONA, on the other hand, leverages the analysis of aggregated metadata already stored in a company's servers. This metadata can include email patterns, meeting schedules, and other forms of digital communication. By analyzing this metadata, ONA can map out the interaction patterns and identify key influencers, bottlenecks, and collaboration hotspots within the organization. This method relies on existing digital footprints, which are typically abundant and less prone to the issues of incomplete or outdated data that plague other forms of people analytics.

The Transversal Impact of ONA on Decision-Making Processes

Organizational Network Analysis is not just a tool for understanding social networks; it is a versatile instrument that can influence various decision-making processes across the organization. By generating social capital metrics that complement traditional human capital metrics, ONA can enhance decision-making in several key areas:

1. Change Management: Understanding the informal networks helps leaders identify change agents and potential resistance points, enabling smoother transitions during organizational changes.
2. Onboarding: Insights from ONA can streamline the onboarding process by identifying key individuals who can help new hires integrate quickly and effectively into the organization.
3. Leadership Development: ONA can identify potential leaders by highlighting individuals who are central in the informal networks and who play crucial roles in communication and collaboration.
4. Team Formation: By revealing the real interaction patterns, ONA helps in forming teams that are more cohesive and effective, based on actual working relationships rather than formal structures.
5. Talent Management: ONA provides insights into employee engagement and satisfaction by highlighting how well-connected and integrated individuals are within the organization.

Why ONA Should be a Foundational Tool

1. Enhanced Organizational Understanding: ONA provides a deeper understanding of how work actually gets done in an organization. By uncovering informal networks, it reveals insights that are often missed by traditional organizational charts and structures.
2. Improved Decision-Making: With a clearer picture of the actual flow of information and collaboration, leaders can make more informed decisions about restructuring, team compositions, and resource allocations.
3. Increased Agility: Organizations can quickly identify and respond to changes in how employees interact and collaborate. This agility is crucial in today’s fast-paced business environment.
4. Better Employee Engagement and Well-being: By understanding the real connections and networks within the organization, leaders can foster more effective communication, collaboration, and support systems, leading to higher employee satisfaction and well-being.
5. Scalable and Cost-Effective: Given its reliance on existing metadata and targeted surveys, ONA is both scalable and cost-effective, making it accessible for organizations of all sizes.

Conclusion

Organizational Network Analysis offers a compelling solution to the challenges of data quality in people analytics. By leveraging both active and passive data collection methods, ONA provides a robust and flexible framework for understanding the true dynamics within an organization. Additionally, its transversal nature allows it to impact various decision-making processes, enhancing change management, onboarding, leadership development, and more. As such, ONA should be considered a foundational tool for people analytics practitioners, offering insights that drive better decision-making, enhance organizational agility, and improve employee engagement and well-being. Embracing ONA is not just a step forward in analytics but a leap towards a more connected and effective organizational future.