Old-boy
network’s power exposed:
“By considering various possible networks in a board of
ten members (a typical size for a corporation), the researchers
show that each network can be assigned a ‘force’ which measures the
likelihood that the board will approve the CEO’s proposal. If the
board has, say, three links between members (a link indicates that
they sit on an outside board), then 40% of the possible networks
have at least a 75% chance of approving the proposal. For a
non-interlocked board – one with no old-boy network – this chance
is close to 50:50, as it should be. In other words, even a small
amount of cliquiness can make a big difference.”