Building Social Capital

Article contributed by Bill Sherman.

Bill Sherman is based in St. Louis, USA and writes on social capital and thought-leadership marketing at Aha Moments. Graham Southwell recently asked Bill some questions about building social capital.  

GS: What’s the difference between a social network and social capital?

BS: Many people have become comfortable with the concept of a social network through tools such as LinkedIn and Facebook. However, you don’t need any technology to have a social network. Your social network includes the many people you know—your family, close friends, business colleagues, association members, sports buddies, etc. However, a social network is just a collection of contacts.

Social capital represents your ability to locate and mobilize resources within your social network. Sociologists, such as Nan Lin at Duke University, crafted this incredibly powerful definition, and it’s worth exploring the concept in detail.

When you have social capital, people will answer your calls, agree to meet with you for lunch, and even listen to your requests. They may even offer to help you. Social capital reflects  the potential within your network.

In order to successfully activate social capital, three things must happen:

·         The right person must exist within your network (or your extended network);

·         You must be able to locate this person; and

·         They must be willing to act when you make a request.

Everyone possesses some amount of social capital. Just like we all have financial capital (such as cash, credit, stocks, etc.)  Social capital represents a highly valuable asset, but you can’t measure it like you can measure your bank account.

GS: Are there different types of social capital?

First, there’s positional social capital, which represents the resources that you’re able to tap within your organization. If you’re the rookie salesperson in a company, you will have access to fewer resources than the business-owner. However, you still have access to social capital within the organization. As you rise within an organization, you’ll have connections with people in other departments. You’ll be increase your ability to mobilize resources within the organization.

While positional social capital allows you to “get things done” within formal channels, you probably know a lot of people who are successful whether or not they have a senior title. They seem to have the right information at their fingertips, and they know who to reach out to. These people are social capital entrepreneurs. They’ve deeply invested in the success of their networks. These people have personal social capital. They’ve built social capital by building relationships with others.

If you’re a small-business owner or a salesperson, you need to be aware of both types of social capital. In fact, your success will likely be closely tied to your social capital.

GS: What are some benefits that can come from social capital?

In the modern world, there’s this myth that we all have to be self-made individuals. However, that’s really a fundamentally flawed concept. There are very few valuable long-term goals that can be achieved solely by individuals. Here are just a few examples where most people need professional help:

·         Launching a new business or expanding an existing business;

·         Assembling research for a big presentation/proposal;

·         Raising a child; or even

·         Getting through day-to-day life.

You may be able to locate and mobilize help within your company or from outside consultants; you may ask a friend to listen to you rehearse a presentation; or you may need a great babysitter or someone to stop by and pick up your kids after an event. We’re not going to succeed in life, unless we accept that we need to ask for help and also offer it to others.

GS: How can we nurture our social networks and build strong relationships?

BS: That’s a very good question, Graham. Social capital is not a get-rich-quick scheme. Just like any of the other forms of capital, value accumulates over time and follow the laws of compounding. You build social capital by developing the capacity of the network.

You must commit yourself to developing and sustaining long-term relationships. If you follow a short-term strategy, you’re thinking too transactionally. You have to be willing to give without the expectation of receiving anything in return.

Quite simply, you cannot keep score with individuals. People are very smart, and if they sense that you’re solely “giving to get back” they’ll respond negatively. You’ll erode the trust that you want to build. It’s sometime tempting to think “I did this for you, so you owe me.” However, that’s a recipe for disaster.

If you want to develop social capital, you must take a long-term approach and invest in the success of your network. Help people achieve their goals, large and small. You’ll become known as someone who genuinely cares about people. And when you need help, it may not be from the people who you helped.

GS: What sort of connections do people personally make within your network?

BS: I’d rather make one amazing connection than ten mediocre introductions. Weak, pointless introductions actually erode social capital. So, before I connect two people, I ensure they both want to be connected and see the value. By the time I make the connection, both people should be eager to meet each other. I don’t rush things. Some introductions can happen right away, while others may take a while to set up.

GS: In today’s digital age, can you build social capital online without face-to-face meetings?

Yes. We live in an increasingly interconnected world.

I live in St. Louis, USA, and my colleagues and clients live around the country and the world—such as New York, Los Angeles, San Jose, Milwaukee, Bangalore, and Singapore. While I travel some 75+ days per year, I often go long stretches of time without seeing these people face-to-face. I’ve learned to develop the potential of virtual relationships.

Let me share a story about my friend Peter. He and I were first introduced to each other through a mutual friend. Our relationship started as client/vendor, and we worked together for about a year without meeting face-to-face. We connected via phone, via e-mail, and cards back and forth. We listened to each others’ frustrations, and we found ways to help each other beyond just our work responsibilities. When we finally met at Los Angeles Int’l Airport (just before we went to a client onsite together), we greeted each other as friends. It’s possible to build social capital long-distance, but it takes exceptional  commitment.

GS: What strategies do you use for building global relationships?

BS: Typically, I use the same strategies whether I meet someone face-to-face or online. I take time to listen to people, because I’m deeply interested in what they need to be successful. Then, I look within my network to see what resources I can provide to help fill that need.

When you’re connecting with someone online, you don’t have the ability to read body language and posture. So, you have to fine tune your senses to pick up on cues. If you’re connecting with someone via phone, then take a few minutes to move beyond the transactional work-agenda. Savvy people know how to break the ice online. Open up and share aspects of your life (whether via voice or e-mail) and invite others to do the same.