The Power of Social Capital: How To Move Your Business Forward

THE POWER OF SOCIAL CAPITALHOW TO MOVE YOUR BUSINESS FORWARD

Green Silk Associates

TODAY’S PRESENTERS

The Power of Social Capital

Deborah SeidmanPresident

Green Silk Associates, LLC

www.greensilkassociates.com

Heidi WoodenManaging Director

The Wooden Hub

www.thewoodenhub.com

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


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”


*Source: “Critical Success Factors in Team-Based Organizing,” by Michael M. Beyerlein and Cherly L. Harris, The Collaborative Work Systems Fieldbook

WHY IS SOCIAL CAPITAL IMPORTANT?

“Better connected people enjoy higher returns.” *


*Source: The Network Structure of Social Capital, Ronald S. Burt, Graduation School of Business, University of Chicago

SOCIAL NETWORKS AND SOCIAL CAPITAL


George Henry

Ann

Vijay

Chris

Karen

HOW CAN YOU BUILD SOCIAL CAPITAL?

Important Factorso Network structure (the content of social capital)o Relationships (the quality of social capital)


Formal Structure Informal Structure

Retail Banking

Max

Leslie

Susan

Sam

Angelica

Hugh

Randall

CheckingHarooon

Nathan

SavingsAnthony

Consumer BankingKaren

Chris

Vijay

Paul

InvestmentsKate

Geoff

MortgageElla

AutoAlex

LendingRyan

Senior Vice PresidentJohn

ORGANIZATION/NETWORK COMPARISON


Alex

Ryan

Ella

Geoff

Susan

Haroon

Vijay

Nathan

Randall

Max

Hugh

Angelica

Sam

Paul

Kate

Leslie

Chris

Anthony

Karen

John

TYPES OF NETWORKS


Strategic

Personal Operational

• 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

NETWORK CHARACTERISTICS

What makes a network effective?o Diverse resources – levels, locations, experienceo High quality relationships that can be tapped when

needed


DEFINING THE NETWORK

Name Problem-solving

Information Expertise Access

John √ √ √

Vijay √

Susan √ √

Angelica √ √

Haroon √

Kate √

Ella √ √

Max √

Nathan √ √

Alan √


UNDERSTANDING YOUR NETWORK


Karen

Senior

Peer

Junior

Customers

Employees

Vendors

Karen

Formal Structure Informal StructureRetail Banking

Max

Leslie

Susan

Sam

Angelica

Hugh

Randall

CheckingHarooon

Nathan

SavingsAnthony

Consumer BankingKaren

Chris

Vijay

Paul

InvestmentsKate

Geoff

Mortgage

Ella

Auto

Alex

LendingRyan

Senior Vice PresidentJohn

BRIDGING


Alex

Ryan

Ella

Geoff

Susan

Haroon

Vijay

Nathan

Randall

Max

Hugh

Angelica

Sam

Paul

Kate

Leslie

Chris

Anthony

Karen

John

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


ENHANCING YOUR NETWORK

Relationships and Reputation Trust Network development


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?


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 SOCIAL MEDIA MONITORING PROCESS FOR

REPUTATION MANAGEMENT

LISTEN

ENGAGE

CONTENT RE-CREATION

GENERATE BUZZ

COMMUNITY BUILDINGSocial Media Process


TIPS FOR RELATIONSHIP DEVELOPMENT

Show an interest in the other person Go first; take the initiative Say what you mean Show appreciation


Source: The Trusted Advisor by David H. Maister, Free Press 2000

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


EARNING TRUST

Trust = Credibility + Reliability + Personal Connection

Risk


Adapted from The Trusted Advisor, by David Maister

TAKING ACTION


Mindset Time Independence Investment Cycle Time

Giving Back Innovation Community Access

Barriers Enablers

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


UTILIZING SOCIAL MEDIA TO ENHANCE YOUR NETWORK


• Identify the right social media platform(s) for Social Capital

• Key Players :

•Quality vs. Quantity

•Share, Build Trust, ReciprocityoIt’s better to give than receiveoBecome a trusted advisor

•The Value of InformationoContent is KingoInteraction is critical

Internal Online Social Networks

LEVERAGING SOCIAL CAPITAL

Now that you’ve developed social capital….

What’s next?


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”


MAPPING THE STAKEHOLDER LANDSCAPE

Assess stakeholder engagement for a key business challenge or opportunity

Identify how to leverage the network to influence key stakeholders


STAKEHOLDER MANAGEMENT PRIORITIES


SupportLow High

High

Susan

John

Alan

Katrina

Vijay

Seth

ACTION PLAN


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

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 Hub1 (917) 445-2443 1 (877) 446-4699www.greensilkassociates.com www.thewoodenhub.com

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