MBUS 803 – Strategy I – Dr. Tina Dacin
Q.1 - Using the assigned readings, provide an analysis of Roizen’s network. What kinds of networks does Roizen build? What do they look like?
Heidi Roizen has built herself a very strong rainmaker network (Exhibit 1). This type of network combines the clique network and the entrepreneurial (constellation) network to create a network optimized for performance impact (Dacin). A clique network is built based on similarities such as expertise or proximity. Clique networks (Exhibit 1 – coloured nodes) are beneficial for finding like-minded individuals but don’t scale well across job functions and industries. The entrepreneurial network (Exhibit 1 – empty nodes) is built based on fostering…show more content… Having a large network as well as holding the venture capitalist responsibilities puts Heidi in a position where there is the potential for conflicts of interest to arise. This could happen through funding a member of her network or placing a member of her network in a Softbank funded venture. Even if she doesn’t take any of these actions for pure personal gain they can be perceived that way should a situation sour. This could undermine the credibility factor that plays a large role in holding her network together despite its dependence on weak ties (Pfeffer).
Q.3 – What steps did Roizen take to develop her network? To maintain it?
Heidi began developing her network as soon she left school. With no reputation she first had to build an emotional connection with the hiring manager at Tandem to get in the door. Effective persuaders have a strong sense of their audience’s emotional state and they adjust their tone accordingly (Conger). Heidi did that in hitting it off with the hiring manager and landing the job. She then shifted her attention to making important relationships work (Pfeffer) by finding common ground with the CEO in her role as a disseminator of information at Tandem. This started her pattern of building reciprocal relationships whereby the other party felt obligated to repay her for assisting them in some matter (Cialdini)