Harnessing the power of informal employee networks

Formalizing a company’s ad hoc peer groups can spur collaboration and unlock value.

McKinsey Quarterly, November 1, 2007 — In any professional setting, networks flourish spontaneously: human nature, including mutual self-interest, leads people to share ideas and work together even when no one requires them to do so. As they connect around shared interests and knowledge, they may build networks that can range in size from fewer than a dozen colleagues and acquaintances to hundreds. Research scientists working in related fields, for example, or investment bankers serving clients in the same industry frequently create informal—and often socially based—networks to collaborate.