Informal networks play a crucial role in software development and testing. These spontaneous connections help improve team collaboration, trust and effectiveness, especially in flexible and hybrid work environments. Organisations are required to actively promote these networks through open communication and various engagement strategies. In addition, trust is a key factor in building effective teams, and the benefits of collaboration over individual work can be clearly emphasised.

Podcast Episode: The Power of Informal Networks

In this episode, I talk to Yuliia Pieskova about the importance of informal networks in software development and testing. Yuliia explains how such spontaneous connections improve team collaboration, trust and effectiveness, especially in remote and hybrid work environments. She shows that organisations need to foster these networks through open communication and various engagement strategies. We also talk about the role of trust in building effective teams and the benefits of collaboration over individual work.

"As soon as we have a more favorable environment to communicate with people, the higher the chances are that we enjoy it and, as a result, do a very good job." - Yuliia Pieskova

Yuliia Pieskova is the co-founder of Alpha Affinity, a data startup, as well as a Certified Agile and Organizational Coach and consultant with over 13 years of IT experience in operational and leadership roles. She has successfully guided startups through scaling journeys, building distributed international product teams from the ground up, and has collaborated with corporations like SimCorp and SAP on complex transformations and change management initiatives. As a contributor to Agile Alliance and a keynote speaker, Yuliia drives forward-thinking discussions on Agile practices, remote work, and emerging technologies. She also designs and delivers AI workshops and training sessions, empowering leaders and coaches with practical tools to seamlessly integrate AI into their workflows.

Highlights of the Episode

• Importance of informal communication networks in organizations
• Role of informal networks in enhancing collaboration and trust
• Strategies for fostering informal networks within teams
• Need for diverse communication styles to accommodate different team members
• Building trust through genuine interactions and shared experiences

The power of informal networks

Introduction

Informal networks are often underestimated structures within companies. They develop in parallel to formal company structures and are not limited to team colleagues.

Significance of these networks:

• Trust: Informal networks foster trust, which is essential for effective collaboration.
• Adaptability: In dynamic environments such as Scrum or Kanban, these networks are critical to organizational resilience.
• Emotional and rational aspects: These networks develop unconsciously and are influenced by emotions as well as rational considerations.

The power of informal networks is often seen in their ability to improve dynamics and collaboration within the organization. By understanding these networks, companies can optimize their structure and strengthen collaboration.

The role of informal networks in companies

Informal networks are parallel structures that emerge within organizations and often go unnoticed. They differ from formal structures in several aspects:

1. Definition and characteristics

Informal networks consist of relationships based on personal connections, common interests and informal communication. These networks enable employees to exchange information quickly and find support.

2. Differences to formal structures

While formal networks have clearly defined hierarchies and processes, informal networks are characterized by flexibility and adaptability. They are not tied to fixed roles, which promotes dynamic interaction.

3. Unconscious emergence

Informal networks are often formed unconsciously. Emotions and rationality play a decisive role here. Employees spontaneously join forces to solve problems or exchange ideas. Such interactions promote mutual trust and strengthen cooperation.

Recognizing the function of informal networks is crucial for the development of an effective working environment. They contribute to the resilience of companies and make it possible to react quickly to changes in the market.

Example of the effectiveness of informal networks: Junior developer in the HR department

A junior developer in the HR department provides an illustrative example of the strength of informal networks within a company. Through unconventional interactions and the exchange of ideas with colleagues from different departments, this developer can gain valuable insights.

Promoting collaboration

Informal conversations allow the Junior Developer to quickly build relationships and gain trust. These connections promote knowledge sharing and collaboration across departmental boundaries.

Increase effectiveness

By actively participating in informal networks, the Junior Developer is able to develop innovative solutions. Access to different perspectives not only supports their personal development, but also helps to improve team dynamics.

Such experiences show how important informal networks are for increasing efficiency and creativity in a company.

Open formats and their impact on informal networks: hackathons as an example

Hackathons are a great way to create and foster informal networks. At these events, participants can exchange ideas and develop innovative solutions in a creative environment. This is where the power of informal networks is particularly evident, as interaction between different departments and hierarchical levels is encouraged.

Opportunities to create informal networks through hackathons:

• Interdisciplinary collaboration: Participants from different areas come together, which facilitates the exchange of knowledge and experience.
• Emotional bonding: Informal conversations during the event strengthen trust among participants.
• Promoting innovation: Creative freedom gives rise to new ideas and approaches that are often not possible in formal structures.

Open formats such as hackathons also have the advantage of creating a relaxed atmosphere. This makes it easier for introverts to get involved and build relationships. The informal environment encourages spontaneous interactions, which are crucial for the emergence of informal networks.

Such events can serve as catalysts for long-term relationships within the company, increasing efficiency and creativity.

Challenges for formal networks compared to informal networks

Formal networks face specific challenges that differ significantly from the dynamics of informal networks. These challenges not only influence the efficiency of corporate processes, but also the corporate culture.

1. Lack of trust

Formal networks are often characterized by hierarchies and rigid structures. This often leads to a lack of trust between employees and managers. In an environment where mistrust prevails, it is difficult to promote effective collaboration.

2. Insufficient adaptation

Formal structures are often cumbersome and cannot adapt quickly enough to change. In today's dynamic business world, flexibility is crucial. Informal networks, on the other hand, enable employees to react quickly to new requirements and develop creative solutions.

3. Lack of proximity

Personal contact is often neglected in formal networks. This distance can lead to misunderstandings and communication difficulties that impair teamwork.

With these points in mind, it is clear that formal networks, while important for the structure of a company, cannot offer the same flexibility and trust as informal networks. Business dynamics therefore require a balance between the two types of networks.

However, it is important to note that team conflicts in formal networks can serve as a catalyst for positive change if they are resolved constructively.

Remote work and its impact on informal networks: opportunities and challenges

The transition to the home office and the introduction of hybrid models have had a significant impact on the dynamics of informal networks in organizations. While these changes offer new opportunities for collaboration, they also bring challenges.

Challenge 1: Building trust

In a remote environment, building trust is crucial. In the absence of face-to-face contact, it can become more difficult to build relationships. Informal interactions that used to happen spontaneously during coffee breaks or team meetings are now often limited to scheduled virtual meetings.

Challenge 2: Improving informal networks

Companies can take targeted measures to promote informal networks:

• Virtual events: Hackathons or online team building activities can help to intensify exchanges between employees.
• Open communication channels: Tools such as Slack or Microsoft Teams enable uncomplicated conversations and promote real-time exchange.
• Mentoring programs: These can be particularly valuable for new employees to build trust and fit into the company more quickly.

Creating a supportive environment is necessary to maximize the positive aspects of remote work. By being proactive, companies can ensure that informal networks thrive in the virtual space.

Encourage cross-location collaboration: Benefits of remote work for overcoming geographical barriers

Remote working offers numerous benefits to overcome geographical barriers and encourage cross-location collaboration.

1. Breaking silos

The ability to collaborate virtually allows teams to communicate across departmental and location boundaries. This leads to a better exchange of ideas and information.

2. Access to talent

Companies benefit from an expanded talent pool as they are no longer limited to local workers. They can attract the best professionals from different regions.

3. Strengthening informal networks

Remote working creates new opportunities for informal interactions. Virtual coffee breaks or online events such as hackathons promote contact between employees from different locations.

4. Collaboration across departments

Employees are more willing to contribute their perspectives and ideas when they work in an open environment. This strengthens mutual trust and encourages creative solutions.

The power of informal networks is particularly strong in a remote environment. Creating opportunities for spontaneous interactions can help to develop a positive team dynamic and increase productivity. In this context, it is important to understand how to communicate and collaborate effectively even in an Agile Remote Team to take full advantage of digital collaboration.

Conclusion: The power of informal networks for agile organizations with recommended actions to foster this dynamic

The findings on informal networks highlight their essential role in agile organizations. They promote:

• normalization of collaboration through trust and emotional connection
• team dynamics that stimulate creativity and innovation
• Effectiveness in product development through interdisciplinary collaboration

To support this dynamic, companies should take the following measures:

• Encourage hackathons and open formats to create informal networks
• Create opportunities for unstructured interactions in everyday working life
• Establish a supportive environment that fosters relationships without pressure
• Implement a culture of direct feedback to minimize misunderstandings

The power of informal networks can serve as a catalyst for change and significantly increase an organization's adaptability. This is particularly relevant in the context of agility, which is key to greater flexibility and efficiency. By promoting personal development, companies can strengthen the agile mindset in the team. These individual values play a decisive role in collaboration and the success of the company. In addition, the Agile Manifesto has not only revolutionized Agile software development, but also inspires numerous other areas, which underlines the versatile applications of agility.

Frequently asked questions

What are informal networks and why are they important for companies?

Informal networks are unstructured, spontaneous connections between employees based on trust and personal relationships. They are important for companies because they promote communication, facilitate knowledge sharing and improve team dynamics.

How do informal networks differ from formal company structures?

Informal networks often develop unconsciously and independently of the official company hierarchy. In contrast, formal structures are clearly defined and regulate the distribution of tasks. Informal networks offer flexibility and promote innovation, while formal structures guarantee stability.

What influence do hackathons have on informal networks in companies?

Hackathons promote open formats and creative collaboration, which contributes to the formation and strengthening of informal networks. These events allow employees to interact and share ideas across departmental boundaries, which leads to increased innovation.

What challenges do formal networks face compared to informal networks?

Formal networks can suffer from a lack of trust and often do not react quickly enough to changes. Informal networks, on the other hand, adapt more flexibly to new circumstances and encourage open communication, resulting in a more dynamic business environment.

How does remote work affect the dynamics of informal networks?

The transition to remote working can bring both opportunities and challenges for informal networks. While working from home limits face-to-face contact, hybrid models offer opportunities to foster trust and collaboration across geographical barriers.

What recommendations are there for fostering informal networks in agile organizations?

To strengthen informal networks in agile companies, regular team events, open communication channels and a culture of trust should be encouraged. In addition, innovative formats such as workshops or hackathons can help to normalize collaboration and improve team dynamics.

Frequently asked Questions

What are informal networks and why are they important for companies?

Informal networks are unstructured, spontaneous connections between employees based on trust and personal relationships. They are important for companies as they promote communication, facilitate the exchange of knowledge and improve team dynamics.

How do informal networks differ from formal company structures?

Informal networks often arise unconsciously and independently of the official company hierarchy. In contrast, formal structures are clearly defined and regulate the distribution of tasks. Informal networks offer flexibility and promote innovation, while formal structures guarantee stability.

What influence do hackathons have on informal networks in companies?

Hackathons promote open formats and creative collaboration, which contributes to the formation and strengthening of informal networks. These events enable employees to interact and exchange ideas across departmental boundaries, which leads to increased innovation.

What challenges do formal networks face compared to informal networks?

Formal networks can suffer from a lack of trust and often fail to respond quickly enough to change. Informal networks, on the other hand, adapt more flexibly to new circumstances and encourage open communication, resulting in a more dynamic business environment.

How does remote work influence the dynamics of informal networks?

The transition to remote working can bring both opportunities and challenges for informal networks. While working from home limits face-to-face contact, hybrid models offer opportunities to foster trust and collaboration across geographical barriers.

What recommendations are there for promoting informal networks in agile companies?

In order to strengthen informal networks in agile companies, regular team events, open communication channels and a culture of trust should be promoted. In addition, innovative formats such as workshops or hackathons can help to normalize collaboration and improve team dynamics.