Social Capital – Spice of Success

Social Capital – Spice of Success

In my early schooldays, I have been told many times, “You and you alone are responsible for your success and just work hard and you will be successful”. True, my education credentials, through my hard work, served me as a passport for my entry into corporate job, but the above formula failed to shine further on my success. Gradually I realized that success is not a solitary activity, and it is a result of our connections and relationships. Sociologists call this as Social Capital (SC). This article will help to decode the term Social Capital, how to gain this valuable currency & turn it into the Spice of Success in our lives.

Social Capital is a sociological concept that refers to intangible and invisible assets that emerge from our social interactions and relationships. The good news is that we have much more control over acquiring Social Capital than the other two – Human and Financial Capital. Social capital are “relational” assets. To be successful, it is not what you know but who you know and more important is what they know about you and are they willing to help you. The question is why they should help me? How many have I helped first? We need to come with mindset of helpfulness and generosity. The biggest givers are essentially the biggest winners in the game of Social Capital.

?As Social creatures, our nervous systems are hardwired for social connection. Our “happy hormones” increase with good friendships, that can help reduce stress and feelings of pain. As we grow older, social capital is more important than financial capital. Research shows that people who are in schools, organizations, families & communities, who are rich in stocks of social capital are more likely to be happier, healthier, and wealthier. These days, Social Capital goes far outside your local community and extends into the global collective. As a result of social media, online marketing, remote work, and the internet have made it possible to connect with people from far beyond our own back yard.

Organizations, Professionals, Leaders, and Entrepreneurs – all need a rich stock of Social Capital to be successful. Social Capital is key for success in entrepreneurship, which can spur economic growth and job creation. Lack of social capital is among the top reasons that nine out of ten startups fail. Social capital can help address the obstacles entrepreneurs encounter due to lack of knowledge or skill and a lack of funding. Networks connect entrepreneurs to the right people who will provide information, collaboration, and partnerships as well as access to financial resources. Entrepreneurs with higher social capital have greater chances of getting funding for their ventures.

Nowadays, companies who are rich in Social Capital dramatically outperform their competitors. So, executives are upskilled to discern the value in existing networks and potential value in new network connections. Fortunately, in organizations / businesses, the connections are mostly with one or max two degree of separation, known as “Friend of a friend of a friend”, with 2nd degree or max 3rd degree connections. We need to redefine networking here; it is not about meeting complete strangers; The best definition is about understanding the network already around you & acting accordingly. Who is a Friend and Who is Friend of a Friend? We need to reactivate the old forgotten friends, what the sociologists call the “weak/dormant ties”. They have the power to provide new information or new opportunities and it is much easier to unlock these as you have better rapport with them in the past. The best way to make new connections is to go through your friends of friends. When you must step outside of your circle, the best way is to navigate through your circle!

We all know that networking and professional connections are hugely important to our careers in our lives. Executives who are more trained in Social Capital are more likely to get promoted, get raises and have more fulfilling careers. Networking is a skill that can be learnt and improved upon. With social media, “virtual coffee meet’ with video chats can power our networking. How we conduct ourselves helps in our brand building. Managing the impression that you are creating is a critical part of Leader’s role. Nowadays MBA schools teach organizational behavior with the added chapter on Impressions Management.

There are several Do’s and Don’ts in Networking; The most important is Networking is not about closing sales; Business / Profitability all happen therefore, as a consequence. Networking is about building rapport, trust and in pursuit of mutually beneficial and satisfying relationships. Lateral networking on non-work interests such as hobbies, passions etc. can facilitate dialogue with strangers. The more diverse ways we connect with other person, the deeper we build the relationships faster. Always follow VCP rule – Visibility first, followed by Credibility & Profitability last. After any networking event, Follow up, Follow up, Follow up...

Finally, all networking and relationships function successfully on the go-giver principle. Go-getters are fools here. What can I do for you? How can I give more value than I am charging you money for? How can I focus on making it better for you? If I focus on giving, getting is in default. I loved one of the experts say, “we all came to this world with nothing; we will go out with nothing; in between what is the fuss about?” He went on say that one word in Sanskrit ??????? Paropkar says it all - do good to others; Emotional Intelligence is anchored on this principle and philosophy.?

With Covid going away, and “Social Distancing” on exit mode, it is time for us to revisit the almost obliterated phrase Social Capital. Let us all be Connecting, Complimenting, Contributing and Celebrating.

Welcome your thoughts.

Author: Sat Murthi