The 3% Rule, Informal Networks and practical applications in Change Management.
Informal networks are the unseen connections between people within an organisation – those bonds that influence how information flows, decisions are made, and how change is either resisted or embraced. Jeppe Vilstrup Hansgaard, CEO of Innovisor, shared valuable insights into successful change management with us.
The Power of Informal Networks
Jeppe emphasised the importance of understanding the informal networks within any organisation undergoing change. While formal organisational charts show the official lines of communication and decision-making, it’s the informal networks that reveal the true influence points. When we talk about change, we are really talking about people. How they connect, collaborate, and influence one another is key to driving change effectively.
He illustrated his point with a personal story about his first experience with informal network analysis in 2005. At that time, Jeppe was managing a consultancy, and through analysis, he discovered that a 35-year-old woman, not necessarily a top performer, was actually the ‘glue’ that held the organisation together. Without her, the consultancy’s operations would likely have faltered, a powerful lesson on the importance of identifying key influencers.
Informal networks can be visualised, which helps Change Managers see how people are connected in ways that formal structures do not reveal. The surprising takeaway? It’s not always the senior leaders or high performers who are the most influential; rather, it’s often individuals who are trusted by their peers for their approachability and helpfulness.
The 3% Rule
One of the most fascinating elements Jeppe discussed was the 3% rule. This concept is simple but powerful: 3% of an organisation’s employees can influence up to 90% of their peers. Identifying these key influencers can dramatically increase the chances of successful change implementation.
He described this as “optimising impact on the informal network through the fewest number of people.” By focusing on the right 3%, Change Managers can engage those who have a disproportionate level of influence, ensuring that their efforts ripple through the organisation far more efficiently than if they relied on traditional top-down communication strategies.
To illustrate this point, he shared a case study of an energy company that operated in two locations with a three-hour commute between them. Through an informal network analysis, they discovered that one of their most influential employees was a Frenchman who had joined the company only four months prior. While leadership initially doubted this, further investigation revealed that this employee had made an effort to connect with colleagues after meetings, spending extra time socialising and building relationships. His informal influence quickly grew, demonstrating how social connections can have a profound impact on organisational dynamics.
Who Should Be Your Change Ambassadors?
One of the key practical takeaways from Jeppe’s talk was around selecting change ambassadors. Many organisations assume that leaders or top performers make the best ambassadors, but his analysis shows otherwise. He explained that introverts, who tend to listen more carefully, are often better at influencing their peers than extroverts.
Likewise, it’s not tenure or formal authority that matters most, but rather the degree to which people trust and feel connected to a particular individual. He advised Change Managers to avoid appointing formal talents as change ambassadors since doing so can strip them of their informal influence. Instead, ambassadors should be those who are liked and trusted within the network – qualities that often outweigh technical competence in driving change.
Positivity vs. Negativity in Change
A particularly interesting part of the discussion was Jeppe’s analysis of how positivity and negativity spread within organisations. While many believe that negativity is more contagious, Jeppe revealed that positivity actually spreads more quickly. He cited data showing that positive emotions are twice as contagious as negative ones. This insight is crucial for Change Managers, who often focus too much on mitigating negative sentiment without capitalising on the potential for positive emotional contagion to accelerate change.
For instance, if a highly influential person within the organisation becomes positive about a change, their positivity can increase the likelihood of their peers becoming positive by 15%. This effect even extends to second-degree connections, where there is a 10% higher chance of positivity. These numbers underline the importance of engaging and activating the right influencers to create a supportive environment for change.
Breaking Down Barriers to Connection
One of the key challenges in Change Management is understanding why people may not connect with each other. Jeppe highlighted several common barriers, such as fear, lack of trust, and organisational silos. Interestingly, he noted that fear is one of the biggest inhibitors of connection. Many people are simply afraid to ask for help or to approach someone they don’t know well.
Jeppe encouraged the audience to combat this fear by actively fostering connections, both formally and informally. This is particularly important in large organisations with dispersed teams or in situations where cultural and functional divides exist. The more people can be encouraged to reach out and form connections, the stronger the informal networks will become, and the more resilient the organisation will be during times of change.
How to Activate Your 3%
Once you’ve identified your 3%, the next challenge is to activate them. Jeppe provided some practical advice on how to do this:
- Listen: Don’t dictate to your key influencers. Instead, listen to them. Understand their perspectives and what they believe will help the change succeed.
- Co-create: Engage these influencers in co-creating change activities. When they feel ownership of the process, they are more likely to champion the change among their peers.
- Engage continuously: Don’t make the mistake of engaging your influencers only once and then forgetting about them. Their influence continues long after the initial change effort, so ongoing engagement is crucial.
Jeppe’s emphasis on listening and co-creating with informal leaders highlights a shift in how organisations can think about Change Management. By focusing on empathy and trust, rather than hierarchy and authority, Change Managers can unlock the full potential of their informal networks.
Conclusion
Jeppe Vilstrup Hansgaard’s talk offers a fresh perspective on Change Management by focusing on informal networks and the 3% rule. By understanding and leveraging these invisible influencers, Change Managers can greatly enhance the effectiveness of their initiatives. The insights shared during this session are a valuable reminder that successful change is as much about people and relationships as it is about processes and strategies
🎬 Members can watch the webinar on the MEMBER HUB
🤔 Not a member yet? Now is a great time to JOIN HERE NOW
