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| Excerpt from: Value Network Analysis
| | | July 31, 2009 | | Indicators and Metrics for Monitoring and Predicting Performance | One of the most powerful benefits of value network modeling is the ability to monitor, predict and influence performance. Metrics are made simple with the Comprehensive Reports function in the ValueNetwork.com application. In addition to Animations and Detailed Visuals, indicator reports are generated for the Standard Value Network (Role view) and the Collaborative Value Network (Participant view). The text and charts below are drawn from a Standard Value Network (Role-based) Report, using the example of scheduling procedures in a health care organization. For other blogs in this series see the links at the end or simply search "Indicators and Metrics."
Agility
One indicator of network agility is how quickly information can move around the network. Most people have heard the term “degrees of separation.” Degrees of separation, technically referred to as “distance” in a network is a measure of how quickly information can spread out across the network to reach all members. It is an important indicator of a network’s agility in being able to make sense of and adapt to internal and external changes. It is also an indicator of how easy it is for any individual to reach the person who might be able to solve a specific problem. A high average distance between Roles can be an indication that there are not enough hubs or connectors in the network.
Average Degrees of Separation for all Transactions : 1.46
Average Degrees of Separation for all Intangible Transactions : 1.18
Average Degrees of Separation for all Tangible Transactions : 1.54
Stability
Stability is revealed by measures of network Density. Density is calculated as the number of actual connections between Roles divided by the number of potential connections between Roles. One transaction between two Roles is considered as the maximum number of connections. The higher this percentage, the higher the density.
The most significant Density indicator is Weak Tie Stability, which helps us understand the extent that the loss of connections in the network will impact performance of the network as a whole. Weak Tie Stability is the ratio between intangible and tangible transaction density. The higher the ratio, the more dominant the density of intangible connections. The lower the ratio, the more dominant the density of tangible connections. A resilience of 1 shows a perfect balance between densities of tangible and intangible connections. In value network analysis the number of actual connections can be greater than one transaction. In that case the indicator will be greater than 100%.
Weak Tie Stability: (intangible/tangible) 0.6953.57 % of all possible ties are present.
Density All transactions:
In your network 32.14 % of all possible intangible ties are present.
Density Intangible transactions:
In your network 46.43 % of all possible tangible ties are present.
The density of the network often provides insights into the speed at which information diffuses among the Roles. High density in the network can also show that there is a high level of social capital as people are well connected. Low density could indicate social constraint. The constraint might mean there is a low level of trust, a low need for regular interaction, or other factors that create “distance” between the Roles. Geography is sometimes a significant factor in the density of the network.
Other topics in this series: | Topic Tags: degrees of separation, density, distance, intangible transactions. weak ties., tangible transactions, value network | |
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