How formal should informal networks be?

In an economy like the present, it is quickly becoming essential to stretch the dollar by leveraging information and relationship assets. Informal networks are rich sources of collaboration across entrenched silos that spring up via self-interest and personal desire. So, wouldn’t it be a great business value proposition if a firm could harness the power of the informal network by formalizing it? Sure, it could increase efficiency, lower costs and all that bottom line impact stuff, but inherent in these networks is the freeform flow of information and organic growth through interest. (Hence, informal network.) So, where to do we budding business people draw the line? How much formal can informal take before it begins to lose value?

In my experience, informal networks derive their greatest value due to the sheer nature of being informal. In a properly functioning organization I find informal networks are often filling gaps the organization has overlooked or enriching workforce engagement through personal relationships. Yes, these informal networks provide management with information and insight into the culture, but this concept of monitoring is not to be confused with formalized processing.

It seems logical that infusing informal networks with strategic relationships and key employees could drive additional value for management, but it comes with the risk that such formalization efforts could infect the entire network, leading to a slow painful death. While it is probable that there are specific cases where formalization could drive network results, a key point to keep in mind is that informal networks are generally created by motivated people seeking out information. Thus, it is implied that formalization should also come from within, not above. Unless formalization efforts can truly enhance the way in which informal network participants interact and gain value from their involvement in the network, the cost of the formalization will likely outweigh the benefits derived from such change.

The push and pull between formal and informal and management and the workforce is an ongoing challenge. Informal networks’ role in the organization will continue to evolve and dynamics may change, but for the most part, informal networks should be left alone.