Network Analysis in Practice

ONA Insights

Organizational network analysis (ONA) offers a fresh perspective on how organizations truly function beyond traditional organigrams. Asaf Shapira highlights the power of community detection algorithms in revealing hidden structures within organizations, such as informal networks that differ from official hierarchies. He shares an example where community detection uncovered three distinct clusters within a company, including a surprising "A Team" that operated parallel to the formal structure 1. This insight is crucial for organizations aiming to improve communication and efficiency.

Networks are a way to x-ray the organization, see how it really works.

--- Asaf Shapira

Despite its potential, ONA remains underutilized, with only a small percentage of organizations fully embracing it 2.

   

Homophily & Clusters

Homophily, the tendency for similar nodes to cluster together, plays a significant role in network analysis. Asaf Shapira explains that this principle helps label communities within networks, as seen in his use of the Louvain algorithm to detect clusters 3. These clusters often reveal more about the network's structure than random graphs, highlighting the importance of real-world data.

The beautiful thing about the community structure, from an analyst's point of view, is that the communities are no coincidence.

--- Asaf Shapira

By understanding these clusters, organizations can better align their internal communication and operations, as demonstrated in Shapira's analysis of informal networks within companies 1.