We’re all familiar with the truism “It’s not what you know, it’s who you know.” Managers invariably use their personal contacts when they need to, say, meet an impossible deadline, get advice on a strategic decision, or learn the truth about a new boss. Increasingly, it’s through these informal networks—not just through traditional organizational hierarchies—that information is found and work gets done. Social networks can be powerful political tools as well; few managers can resist the temptation to use their connections to discredit business initiatives they dislike or to support proposals they favor.

A version of this article appeared in the June 2002 issue of Harvard Business Review.