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Abstract: This article explores the importance of informal networks, or "hidden teams", that exist within organizations alongside formal hierarchical structures, as research has shown these organic relationship-based networks play a key role in knowledge sharing, innovation, and driving work forward through efficient exchange of ideas and solutions across boundaries in communities of practice and "invisible colleges", while teams that bridge different professional communities are better able to solve complex problems. The article provides recommendations for how leaders can identify, support, and leverage hidden teams to drive business success by mapping networks through analysis and employee surveys to uncover natural collaborations, supporting hidden teams through dedicating time and space for collaboration, cross-pollinating memberships, institutionalizing information flows, and recognizing contributions, as demonstrated through two case studies where a technology company and healthcare system identified existing hidden teams, formalized roles and support, and achieved rapid, grassroots change and meaningful business impacts, suggesting that viewing informal networks as assets that break down silos and strengthen connections across groups can empower change and improve organizational performance.
Formal organizational structures often fail to fully capture the complexity of how work actually gets done. While hierarchical charts show clear lines of reporting and decision making, the reality is that collaboration and problem solving frequently cut across these boundaries. Understanding and leveraging these "hidden teams" could be a key lever for organizational performance.
Today we will explore the research on informal networks in organizations and provide practical recommendations for how leaders can identify, support, and empower hidden teams to help drive business success.
Research on Informal Networks
A body of research over the past few decades has shone a light on the informal, relationship-based networks that exist alongside formal structures in organizations. Studies have found that these networks, sometimes called "communities of practice" or "invisible colleges," play an important role in knowledge sharing, innovation, and driving work forward (Wenger, 1998; Cross et al., 2001). Some key findings:
People naturally form connections with others based on shared domains of expertise, tasks, or interests rather than formal roles (Wenger, 1998). These networks allow for efficient exchange of ideas, problems, and solutions.
Innovation is more likely to occur when ideas can spread across boundaries through weak ties, rather than being constrained within formal groups (Granovetter, 1973). Informal networks break down silos.
Communities of practice have been found to be incubators of new ideas, prototypes, and workarounds that later get implemented more formally (Brown & Duguid, 2001). They generate the seeds of change.
Teams that bridge different professional communities within an organization are more likely to solve complex, interdisciplinary problems (Kellogg et al., 2006; Cross et al., 2001). Hidden teams build bridges.
Identifying Hidden Teams
With a foundation of how valuable informal networks can be, leaders must work to identify the key hidden teams already operating within their organizations. Some approaches include:
Network analysis. Mapping out formal reporting structures can be combined with employee surveys to identify relationships cut across groups. Tools like OrgScope can visualize these networks (Cross & Parker, 2004).
Look for natural brokers. Certain individuals seem to know everyone and connect diverse people. They are likely central hubs within hidden teams (Kellogg et al., 2006).
Follow collaborations. Tracking joint projects, publications, problem solving interactions can expose existing partnerships and expertise clusters outside the org chart.
Ask employees. Low-cost surveys or focus groups can reveal the pockets of people already working well together informally to advance important work.
With insight into these invisible structures, leaders gain opportunities to support and leverage them for business advantage.
Supporting Hidden Teams
Once key hidden teams are identified, leadership can take meaningful steps to sustain and strengthen these relationships in service of organizational goals. Some effective approaches include:
Provide dedicated time and space. Establish forums, office hours, lunch discussions, and offsites focused on collaboration. Teams depend on opportunities to convene.
Cross-pollinate membership. Invite different perspectives in to challenge assumptions, bring new ideas, and seed new connections. Carefully curated rotation expands networks.
Institutionalize information flows. Host regular gatherings and online forums to share work, set priorities, communicate needs and opportunities across organizational boundaries.
Recognize and reward contributions. Highlight the impact of cross-functional problem solving through formal and informal rewards to further motivate participation in hidden teams.
Facilitate access to resources. Provide funding, training, tools, and talent to help informal teams tackle ambitious goals that drive strategic priorities.
With light support, hidden teams evolve into powerful change agents within an organization.
Empowering Hidden Teams in Practice
The following two examples illustrate how leaders in different industries have successfully identified and empowered hidden teams in their organizations.
Technology Company
A large technology company's leadership noticed that grassroots developer communities were springing up organically across different product areas like iOS, Android, and cloud infrastructure. Through surveys and Slack analysis, they mapped the key brokers between these islands of expertise. The company established a formal Innovation Exchange program, inviting participation from the top hidden teams identified. This provided dedicated collaboration hours, travel budgets for in-person meetings, and rewards for successful projects. Within a year, several new products emerged from these cross-functional pilots, opening major new revenue streams for the company. By embracing and strengthening existing relationships, leadership unleashed dormant insights.
Healthcare System
Frontline nurses at a large hospital system expressed frustrations with onerous discharge processes and low patient satisfaction. Administrators conducted ride-alongs and discovered ad hoc teams forming between nurses, social workers, and case managers to streamline transitions to post-acute care. The system formalized these hidden teams as Transitional Care Committees with participatory leadership, dedicated meeting times protected from clinical duties, and incentives for partnership with community providers. Within 6 months, length of stay dropped 10% as barriers fell, and patient experience scores jumped. Recognizing pre-existing collaboration yielded rapid, grassroots change even among fiercely independent clinical roles.
Conclusion
Organizations would be wise to look beyond the neat boxes and lines of formal structures. A rich world of informal partnerships, expertise clusters, and relationship-based problem-solving already exists within their teams. Leaders who work to identify, understand, and support key hidden teams will gain tremendous allies for driving innovation, speeding the diffusion of new ideas, and adapting nimbly to challenges. At the same time, these distributed networks strengthen connections across groups and break down silos. Modest investments to sustain existing collaboration webs can yield disproportionate returns through cross-pollination of insights and motivation of passionate, interconnected team members. Overall, viewing networks as assets to nurture can empower grassroots change and strengthen organizational performance in today's fast-moving environment.
References
Brown, J. S., & Duguid, P. (2001). Knowledge and organization: A social-practice perspective. Organization science, 12(2), 198-213.
Cross, R., Borgatti, S. P., & Parker, A. (2001). Beyond answers: Dimensions of the advice network. Social networks, 23(3), 215-235.
Cross, R., & Parker, A. (2004). The hidden power of social networks: Understanding how work really gets done in organizations. Harvard Business Press.
Granovetter, M. S. (1973). The strength of weak ties. American journal of sociology, 78(6), 1360-1380.
Kellogg, K. C., Orlikowski, W. J., & Yates, J. (2006). Life in the trading zone: Structuring coordination across boundaries in postbureaucratic organizations. Organization science, 17(1), 22-44.
Wenger, E. (1998). Communities of practice: Learning as a social system. Systems thinker, 9(5), 2-3.
Additional Reading
Westover, J. H. (2024). Optimizing Organizations: Reinvention through People, Adapted Mindsets, and the Dynamics of Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.3
Westover, J. H. (2024). Reinventing Leadership: People-Centered Strategies for Empowering Organizational Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.4
Westover, J. H. (2024). Cultivating Engagement: Mastering Inclusive Leadership, Culture Change, and Data-Informed Decision Making. HCI Academic Press. doi.org/10.70175/hclpress.2024.5
Westover, J. H. (2024). Energizing Innovation: Inspiring Peak Performance through Talent, Culture, and Growth. HCI Academic Press. doi.org/10.70175/hclpress.2024.6
Westover, J. H. (2024). Championing Performance: Aligning Organizational and Employee Trust, Purpose, and Well-Being. HCI Academic Press. doi.org/10.70175/hclpress.2024.7
Citation: Westover, J. H. (2024). Workforce Evolution: Strategies for Adapting to Changing Human Capital Needs. HCI Academic Press. doi.org/10.70175/hclpress.2024.8
Westover, J. H. (2024). Navigating Change: Keys to Organizational Agility, Innovation, and Impact. HCI Academic Press. doi.org/10.70175/hclpress.2024.11
Westover, J. H. (2024). Inspiring Purpose: Leading People and Unlocking Human Capacity in the Workplace. HCI Academic Press. doi.org/10.70175/hclpress.2024.12
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). The Power of Hidden Teams: Leveraging Informal Relationships to Drive Organizational Success. Human Capital Leadership Review, 15(2). doi.org/10.70175/hclreview.2020.15.2.7
