The Power of Social Capital: How To Move Your Business Forward
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Understand the value of developing and managing professional networks to grow and sustain your business. Understand the factors that underlie highly effective networks. Examine the roles of reputation management and trust. Explore how to optimize your professional networks to grow and sustain your business.
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The Power of Social Capital: How To Move Your Business Forward
- 1. THE POWER OF SOCIAL CAPITAL HOW TO MOVE YOUR BUSINESS FORWARD Green Silk Associates
- 2. TODAY’S PRESENTERS The Power of Social Capital Deborah Seidman President Green Silk Associates, LLC www.greensilkassociates.com Heidi Wooden Managing Director The Wooden Hub www.thewoodenhub.com
- 3. OBJECTIVES Understand the value of developing and managing professional networks to grow and sustain your business Understand the factors that underlie highly effective networks Examine the roles of reputation management and trust Explore how to optimize your professional networks to grow and sustain your business The Power of Social Capital
- 4. WHAT IS SOCIAL CAPITAL? Social capital refers to connections within and between social networks. – Wikipedia Social capital represents the relationships that bind the organization together, including relationships with customers (Nerdrum & Erickson, 2001)* “The dealings we have with one another that affect our common welfare and produce well- being” The Power of Social Capital *Source: “Critical Success Factors in Team-Based Organizing,” by Michael M. Beyerlein and Cherly L. Harris, The Collaborative Work Systems Fieldbook
- 5. WHY IS SOCIAL CAPITAL IMPORTANT? “Better connected people enjoy higher returns.” * The Power of Social Capital *Source: The Network Structure of Social Capital, Ronald S. Burt, Graduation School of Business, University of Chicago
- 6. SOCIAL NETWORKS AND SOCIAL CAPITAL The Power of Social Capital George Henry Ann Vijay Chris Karen
- 7. HOW CAN YOU BUILD SOCIAL CAPITAL? Important Factors o Network structure (the content of social capital) o Relationships (the quality of social capital) The Power of Social Capital
- 8. Formal Structure Informal Structure Retail Banking Max Leslie Susan Sam Angelica Hugh Randall Checking Harooon Nathan Savings Anthony Consumer Banking Karen Chris Vijay Paul Investments Kate Geoff Mortgage Ella Auto Alex Lending Ryan Senior Vice President John ORGANIZATION/NETWORK COMPARISON The Power of Social Capital Alex Ryan Ella Geoff Susan Haroon Vijay Nathan Randall Max Hugh Angelica Sam Paul Kate Leslie Chris Anthony Karen John
- 9. TYPES OF NETWORKS The Power of Social Capital Strategic PersonalOperational • For perspective; long-term view • For breadth of information; coaching; mentoring • For getting today’s work done efficiently Source: “How Leaders Create and Use Networks” by Herminia Ibarra and Mark Hunter, HBR, January 2007
- 10. NETWORK CHARACTERISTICS What makes a network effective? o Diverse resources – levels, locations, experience o High quality relationships that can be tapped when needed The Power of Social Capital
- 11. DEFINING THE NETWORK Name Problem- solving Information Expertise Access John √ √ √ Vijay √ Susan √ √ Angelica √ √ Haroon √ Kate √ Ella √ √ Max √ Nathan √ √ Alan √ The Power of Social Capital
- 12. UNDERSTANDING YOUR NETWORK The Power of Social Capital Karen Senior Peer Junior Customers Employees Vendors Karen
- 13. Formal Structure Informal Structure Retail Banking Max Leslie Susan Sam Angelica Hugh Randall Checking Harooon Nathan Savings Anthony Consumer Banking Karen Chris Vijay Paul Investments Kate Geof f Mortgage Ella Auto Alex Lending Ryan Senior Vice President John BRIDGING The Power of Social Capital Alex Ryan Ella Geoff Susan Haroon Vijay Nathan Randall Max Hugh Angelica Sam Paul Kate Leslie Chris Anthony Karen John
- 14. NETWORK CHARACTERISTICS: OPPORTUNITIES TO BRIDGE John Vijay Susan Angelica Haroon Kate Ella Max Nathan Chris John √ √ √ √ √ √ √ √ Vijay √ √ Susan √ √ √ √ √ Angelica √ √ √ Haroon √ √ Kate √ Ella √ Max Nathan Chris The Power of Social Capital
- 15. ENHANCING YOUR NETWORK Relationships and Reputation Trust Network development The Power of Social Capital
- 16. RELATIONSHIPS Assess the quality of your network relationships. o How do they perceive you? What is your reputation? o Is there mutual agreement on how you will relate to each other? o Is there reciprocity? o How honest/candid are the communications? The Power of Social Capital
- 17. REPUTATION MANAGEMENT Your business reputation is vital to your social capital both offline and online Leverage social media monitoring for reputation management How to monitor & manage your brand, product(s), service(s) The Power of Social Capital
- 18. THE SOCIAL MEDIA MONITORING PROCESS FOR REPUTATION MANAGEMENT LISTEN ENGAGE CONTENTRE-CREATION GENERATE BUZZ COMMUNITY BUILDING SocialMedia Process The Power of Social Capital
- 19. TIPS FOR RELATIONSHIP DEVELOPMENT Show an interest in the other person Go first; take the initiative Say what you mean Show appreciation The Power of Social Capital Source: The Trusted Advisor by David H. Maister, Free Press 2000
- 20. MAINTAINING RELATIONSHIPS Check in from time-to-time Keep their interests in mind Make it easy for them to connect with you Earn their trust The Power of Social Capital
- 21. EARNING TRUST Trust = Credibility + Reliability + Personal Connection Risk The Power of Social Capital Adapted from The Trusted Advisor, by David Maister
- 22. TAKING ACTION The Power of Social Capital Mindset Time Independence Investment Cycle Time Giving Back Innovation Community Access Barriers Enablers
- 23. TIPS FOR DEVELOPING NETWORKS: WHAT TO DO Mindset – accept that networking is an important business requirement. Time allocation – reallocate your time; master delegation Establish connections – find reasons to interact with those outside of your typical sphere of influence Give and take – establish reciprocity The Power of Social Capital
- 24. UTILIZING SOCIAL MEDIA TO ENHANCE YOUR NETWORK The Power of Social Capital • Identify the right social media platform(s) for Social Capital • Key Players : •Quality vs. Quantity •Share, Build Trust, Reciprocity oIt’s better to give than receive oBecome a trusted advisor •The Value of Information oContent is King oInteraction is critical Internal Online Social Networks
- 25. LEVERAGING SOCIAL CAPITAL Now that you’ve developed social capital…. What’s next? The Power of Social Capital
- 26. STAKEHOLDER/INFLUENCER MANAGEMENT Recognize and network with social media profile influencers (external and internal) Leverage influencers and stakeholders to support the buying process Commitment and time allocation is vital Follow up, Follow up, Follow up Always say the magic words “Thank You” The Power of Social Capital
- 27. MAPPING THE STAKEHOLDER LANDSCAPE Assess stakeholder engagement for a key business challenge or opportunity Identify how to leverage the network to influence key stakeholders The Power of Social Capital
- 28. STAKEHOLDER MANAGEMENT PRIORITIES The Power of Social Capital Support Low High High Susan John Alan Katrina Vijay Seth
- 29. ACTION PLAN The Power of Social Capital Who Activity Method John Make him aware of the project’s potential to meet his needs Ask Seth to promote our new product idea as worthy of investment George Connect with him as a potential ally Invite him to lunch to build rapport
- 30. SUMMARY Key learning points Reflection on the workshop Wrap up Thank You Deb Seidman Heidi Wooden President Managing Director Green Silk Associates, LLC The Wooden Hub 1 (917) 445-2443 1 (877) 446-4699 www.greensilkassociates.com www.thewoodenhub.com twitter.com/thewoodenhub facebook.com/thewoodenhub The Power of Social Capital
Editor's Notes
- Social, adj. Of or having to do with human beings living together as a group in a situation in which their dealings with one another affect their common welfare Capital, adj. Wealth (i.e., abundance, well-being) in whatever form, used or capable of being used to produce more wealth “The dealings we have with one another that affect our common welfare and produce well-being”
- It’s not just “what” you know (intellectual capital), but “who” you know -- the connections that help to get things done. Through networks of relationships embodying reciprocity and trust … social capital facilitates action “Social structure is a kind of capital that can create for certain individuals or groups a competitive advantage in pursuing their ends. Recommendations you get from those you know e.g. The power of the networks that buoyed Obama’s presidential race
- A social network consists of the connections between individuals or organizations. The network is a measure of social capital – that is, the value obtained from the social network While social capital exists in one’s network, it the creation, maintenance and development of the network that generates value.
- p. 5 of The Hidden Power of Social Networks An analysis of frequent information exchange. Cole had reputation for expertise and responsiveness
- Operational – People you need to accomplish your assigned, routine tasks – They help you get stuff done every day. Operational networks: Purpose is to ensure coordination and cooperation among people who need to know and trust each other to accomplish tasks. Includes direct reports, superiors, peers – both inside and outside the business unit – and outsiders, such as vendors and customers. (As a leader – do not become over-reliant on this network. You will need to balance the internal perspective external and future-focused perspectives. Need to build relationships that enable you to face unforeseen and non-routine challenges. Personal – Kindred spirits outside your organization who can help you with personal advancement – They help you to grow and develop Personal networks: Relationships formed through involvement in professional organizations, alumni groups, clubs, and personal interest communities. Look to these contacts for development support (ability to grow in a “safe” environment), referrals, lead generation and information). TIP: accept invitations to social gatherings, research people who are attending so that you can initiate conversations – helps in conversation development and taking interest in others. Strategic – People outside your control who will enable you to reach key organizational objectives – They help you see the big picture and give you a long-term perspective (market dynamics, internal politics, resource priorities, etc.) Strategic networks: Critical for a long-term perspective. Connections with people outside immediate control. Positions you to observe dynamics of the market, resource allocation/priorities, power struggles, etc. Helps in seeing the big picture/ trends. Key to a good strategic network is leverage – ability to marshal information, support, and resources from one sector to achieve results elsewhere. Leaders must recruit stakeholders, line up allies and sympathizers, diagnose political landscape and broker conversations among unconnected parties. All three types of network are needed. They are not mutually exclusive – a personal relationship can be strategic or can provide insight on an operational matter. Successful people master strategic networking – interacting regularly with people who can open your eyes to new opportunities and help you to solve problems.
- Diverse resources: High Performers (i.e., top 20%) Have Non-Insular Networks: Select ties up in the hierarchy (to your boss and others) provides a breadth of information, context, resources and political support for your initiatives. Lateral connections to peers within the organization are important for brainstorming and best practice transfer as these people face similar issues. Select ties to experts outside of the organization yield innovations and novel opportunities. High-quality relationships High quality (i.e., energizing) relations to those lower in the hierarchy creates reputation and draws emerging high performers to you over time. Source: Rob Cross – McIntire School of Commerce Foundation
- Karen looked at her top 8-10 connections to see whether she had a diverse network – one that had operational, personal, and strategic connections. In this example, there is no one to provide access to prospective clients or key opinion leaders and there is a larger investment in expertise. Karen realized that she was getting a lot of the same information and help from her network and that she was missing connections with people who could help her gain broader perspective and influence. *For a workshop: (not the presentation) List your top 8 – 10 connections and indicate what you go to each of them for. It is OK to go to someone for multiple needs. Identify who is in your network: Who do you go to for information Who do you go to for expertise Who do you go to for organization or career advice and guidance/support Who to you go to for problem solving Who do you to for access to decision-makers and influencers Who do you go to for political support? Do you have resources in each of these areas? Are you overly invested in some and underinvested in others? Do you have operational, personal, and strategic connections?
- Next, Karen looked at her network according to level of experience relative to her own. She saw that most of her interactions were with peers and there was only one senior-level connection (her boss). Also, the vast majority of her connections were within her own department and unit. Virtually no connections were with competitors or other industry professionals. As a result, her knowledge of the competitive landscape and ability to identify business partnerships were both lacking. She also recognized that senior people often don’t connect with more junior-level people. She could be an important conduit between these levels. People with more insular networks tend to be circulating with others who are aware of the same opportunities. Those with more diverse networks hear different information early and are able to capitalize on opportunities that require disparate expertise and insights. (from”How Top Talent Uses Networks and Where Rising Stars Get Trapped” by Rob Cross and Robert J. Thomas, Org. Dyanmics. Identify who is in your network: Who do you go to for information Who do you go to for expertise Who do you go to for organization or career advice and guidance/support Who to you go to for problem solving Who do you to for access to decision-makers and influencers Who do you go to for political support?
- Susan has a reputation for responsiveness. She provides information to others and hears about developments in other areas of the business.
- Karen realized that she had a unique opportunity to connect Susan with others in her network and that everyone would benefit from getting to know each other and sharing ideas and practices. Check those who are connected – and would be without your involvement. Where are there opportunities for you to broker connections?
- We’ve talked about the structure of networks -- the types of connections and where to position yourself. Now let’s turn to the quality of the network – the relationships. How good are they? Which ones to develop/improve How to do so Behaviors that enhance network relationships Trust, reciprocity, etc. How to develop your network Barriers and Enablers Actions to take to enhance network
- Look back at your network. Take a moment to consider the quality of your relationships. Which relationships need to be developed further?
- Focus on the other person: Be: Thoughtful Understanding Considerate Sensitive to their feelings Supportive Giving Allow the other person to get to know you by giving of yourself first, e.g. sharing knowledge, making connections to others, lending a hand.
- -- Don’t connect only when there is something you need – be interested and supportive; as you come across information, contacts, etc. of interest to them, make the connection -- be responsive and appreciative See next slide on trust
- Here is a way of thinking about trust. It’s an equation where increasing credibility, reliability, and/or personal connection leads to greater trust and decreasing the risk in the relationships increases trust. Credibility: Do you have the expertise you claim to have? Is your behavior consistent with your words? Reliability: Do you keep your commitments? Personal Connection/Intimacy: Do you empathize with others? Do you allow yourself to be vulnerable/show yourself as a person? Do you show concern for others’ welfare and look to help them? Credibility – how to others assess your competence – your skills, knowledge, and ability? Can they trust that you will perform as they would expect? Reliability – Are you consistent in delivery? Do you keep to your promises? Both of these factors are part of your integrity – that you adhere to principles acceptable to the other, that there is consistency in your delivery and congruence between words and deeds. Personal Connection/Intimacy – Showing concern for the other and trying to support their interests vs. advancing your own at their expense. Demonstrating that you trust them via your honest and open communications and willingness to share control. Sharing common values and goals. At the highest level, each party understands each other’s desires and intentions and can act as agent for the other. Risk: What risks do others take by being connected to you? What can you do to minimize the risk to them and make it easier for them to trust you? As risk decreases, trust can increase. Ask: What are some ways to build trust? Practical Implications for Building Trust (From beyondintractability.org – essay on Trust and Trust Buiilding, by Roy U. Lewicki and Edward C. Tomlinson, December 2003: Perform competently – demonstrate your ability, your competence Establish consistency and predictability – congruent words and actions Communicate accurately, openly, and transparently – be clear about motives and intentions Share and delegate control – Give trust to get trust Show concern for others – be sensitive to needs, desires, and interests. Show respect and protect their interests. Establish a common identity – Use “we” and “us”, rather than “me” Engage in frequent interactions – helps to grow the relationship and get to know one-another better Create shared goals and promote shared values
- Barriers: Mindset – concerns about being manipulative and political; belief that it isn’t important work; not natural – outside comfort zone; no excuse for making contact Time – too busy trying to meet work obligations; takes too much time and not directly related to what you need to get done now. Independence – can do it myself. Don’t want to be beholden to others. Don’t want to appear weak. Draws from me without any real return. Investment cycle time – may have no immediate impact; hard to stick with if no near-term results. Enablers: Giving Back – the sense that you are helping others and contributing to something larger than yourself Innovation – access to different perspectives helping you to identify new opportunities Community – the ability to connect with others and form new bonds/gain support with people having common interests Access to Expertise – having people you can call with questions
- Mindset: As you move into leadership roles, you become more dependent on others. Seek to transform dependence to mutual influence. Take the long view – look to grow relationships over time vs. immediately gaining something from others; view this as “real work” – necessary for achieving objectives and not as something that takes you away from your job Time: prioritize your activities; eliminate those that are non-essential; delegate were possible. Establish connections: Look for common social interests or communities of expertise as means to connecting with others Give and take: Don’t wait until you really need something badly to ask for a favor from a network member. Take every opportunity to give to – and receive from – people in our networks, whether you need help or not. Help others so they perceive value in the relationship and want to help you as well. If this give and take is part of your regular interactions, when you really need them it won’t come as something out of the ordinary.
- Can include launching a new product or business, advancing your career, implementing a solution.
- Identify your key stakeholders (individuals or groups) What is the degree of impact each will have on your success? What is their level of enrollment, concerns? What, specifically, do you need from them. Prioritize the management of stakeholders by first mapping them in accordance with the degree of impact they will have and the level of support. Consider the effort required to change perceptions and increase support. How can you leverage those with high impact and support and convert those with high impact but low support? Develop an influencing strategy that leverages your network relationships – your allies, people who can influence key stakeholders on your behalf, etc.
- Create a plan to develop the network and grow influence Identify network opportunities from network analysis and/or stakeholders to influence based on stakeholder assessment Describe the actions to take to enhance the network and/or exert influence (e.g., test assumptions/get clear about motivations; present new ideas, etc.) Method – consider how to leverage your network. Is there a third party who can intervene on your behalf?
- Ask participants what are the key points that have found most useful. Learning points should include: Importance of developing a broad and diverse network Taking time to build relationships and make connections across the network Helping yourself by helping others – the role of reciprocity and trust in relationship development Understanding why politics exist and how to manage them Sources of power and how to exert them for influence Using stakeholder assessment and leveraging the network to get things done.