Networks create value in two opposite ways: by bridging gaps between otherwise unconnected groups, or by tightly closing a group so its members trust and reinforce one another — and a person or organization is rarely strong at both at once.
The idea
Brokerage is the position of sitting between groups that are not otherwise connected — a structural hole, in Ronald Burt’s terms. Brokers see information and opportunities earlier because they are exposed to multiple, non-redundant networks, and can shape how those groups interact. Closure is the opposite: a densely interconnected group where everyone knows everyone, which builds trust and the ability to enforce cooperation, but limits exposure to new information because the group mostly talks to itself.
When to use it
- Deciding whether to invest in deepening ties within an existing group or building bridges to new, unconnected ones.
- Explaining why some people or teams consistently spot opportunities others miss.
- Diagnosing why a tightly bonded team is slow to notice outside change, or why a well-connected individual struggles to build deep trust.
How to apply it
- Map your own network into distinct, non-overlapping clusters.
- Identify where you (or your organization) currently sit — as a bridge between clusters, or embedded within one.
- Deliberately choose brokerage (build a bridge to a new cluster) or closure (deepen ties within one) based on whether you need novel information or reliable cooperation.
Watch out for
Pure brokerage without any closure can mean shallow, low-trust relationships and difficulty executing on what you learn. Pure closure without brokerage can mean a group that is efficient and loyal but blind to outside change.
Related models
- Small World Phenomenon — the network structure that makes brokerage positions so valuable.
- Centrality — a related way of measuring a node’s structural importance in a network.
- Network Building — practical approaches to building the kind of network position you need.
Sources
Ronald S. Burt’s “structural holes” theory, in “Structural Holes: The Social Structure of Competition” (1992), is the foundational treatment of brokerage; closure draws on James Coleman’s work on social capital (1988).