EXPLAINER

Why the organizational risks that destroy deal value are invisible to conventional analysis

What organizational network analysis is, why communication data is more reliable than surveys and management interviews, and what it means for acquirers focused on value creation

THE PROBLEM

Conventional analysis leaves the most important risks invisible

Most deal teams and operating partners are making structural decisions — resource allocation, org design, integration sequencing, team composition — using a combination of:

  • Org charts that show formal reporting lines but not real authority
  • Management self-reports subject to bias and incomplete disclosure
  • HR data that reflects job titles, not how work actually flows
~50%

of post-acquisition value destruction is attributable to people and integration failure — often caused by decisions that severed informal networks sustaining revenue, delivery, or execution capacity

GENERATING ONA

What we actually do with the data

We clean and strip communication data from Microsoft 365, Google Workspace, and Slack to reveal only who communicated with whom and when. Building on decades of academic research, we then use statistical analysis to create ONA metrics — aggregated and anonymized to reveal the informal networks that drive organizations

We do not use AI for ONA. AI would break GDPR and employee data protection regulations. As a black box, it is not auditable — we cannot be certain of any findings it produces
  • 01 Communication metadata extracted — who, when, how often. No message content, subject lines, or attachments
  • 02 Names replaced with random identifiers before data reaches us. We never hold the re-identification key
  • 03 Statistical network analysis applied to pseudonymised data. No AI. Fully auditable methodology
  • 04 Outputs delivered at group level. No individual is named, scored, or ranked in any finding
ONA VS CONVENTIONAL ANALYSIS

What organizational intelligence reveals that conventional analysis cannot

Conventional analysis Organizational network analysis
Measures what people say they do. Subject to self-reporting bias. Measures what people actually do. Based on observable, auditable communication events
Org charts show formal hierarchy. Real authority is invisible. Maps where influence and authority actually concentrate, regardless of formal title
Key-people risk identified reactively, when individuals leave Structural dependency mapped before it becomes a value event
Integration fault lines discovered during execution, when they are expensive to address Structural incompatibilities between organizations visible before the integration plan is finalized
Months to field surveys and synthesise results Structural insight in 2–4 weeks. No survey distribution
Transformation success or failure only becomes clear in P&L months later Ongoing reviews identify adjustments needed — within weeks
THE FINANCIAL METRICS IT INFORMS

Connected to the metrics you track across the hold period

Organizational intelligence from network analysis connects to the financial metrics PE and strategic buyers track across the investment lifecycle

Revenue acceleration

Sales velocity, ARR growth, NRR — driven by the structural conditions enabling commercial teams to execute

Operational leverage

Operating margin, burn multiple — affected by siloes, bottlenecks, and management gaps

Human capital ROI

Revenue per employee, retention cost — shaped by where structural concentration creates dependency and departure risk

M&A synergy realisation

Integration cost and timeline — determined by whether informal networks mesh or clash

LTV and retention

Customer churn, cost-to-serve — influenced by how well client-facing teams are structurally connected

Explore how ONA can inform your financial metrics

The structural conditions that determine your returns are identifiable before they move the numbers

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