This document discusses social capital and its importance for organizations. It defines social capital as networks and relationships between employees that are not owned by individuals or the organization but can be influenced. The document suggests that social capital, along with human capital and organizational capital, are important sources of competitive advantage. It also discusses how organizations can focus on developing social capital through activities like networking, team design, and internal communication.

1. Social Capital - Generating the Right
Connections, Relationships and
Conversations
@JonIngham

2. Jon Ingham
• 25+ years in strategic
HR
• Experience working
as HR Director
• Consultant,
researcher, high
profile HR blogger
• Wife and 2 daughters
(11 & 7)
• Likes skiing, sailing,
gym, gardening,
writing?, travel!

3. Basis for Competition
Organisational Capabilities
Core Competencies
Competitive Positioning

4. Competitive Positioning &
Core Competencies
Processes
Technology Organisation
Sources: Michael Porter, Competitive Strategy, 1980
Gary Hamel and CK Prahalad, Competing for the Future, 1994

5. Human Capital
• Health, capability and
engagement of people
working for the
organisation
• Is owned by the individual
not the organisation
• Will only be invested for as
long as the investor is well
cared for and receives an
appropriate return

6. Organisation Capital
• Organisation structure,
business processes,
cultural attributes
• Do not result in an
effective organisation
on their own, but
severely constrain
performance if they are
not aligned with the
business strategy

7. Social Capital
• Based on networks and
relationships between
people working in the
organisation
• Not owned just by
people or the
organisation
• Can be influenced but
not managed

8. Organisational Health
§ Accountability
§ Capabilities
§ Co-ordination and control
§ Culture and climate
§ Direction
§ External orientation
§ Innovation and learning
§ Leadership
§ Motivation
Source: Keller and Price, McKinsey, 2011

9. Outcomes
Activities
Staff
Human Social Organisational
Skills Shared
Values Style Systems Structure

10. Value Triangle
• Driving and accelerating business strategy
• Creating opportunity for the future
• Maximising the potential of people
• Taking advantage of exceptional opportunities
• Producing truly wonderful solutions
• Focussing HR/OD on business strategy
• Creating capability to perform now
• Ensuring effectiveness and alignment
• Administering HR operations
• Ensuring efficiency e.g.
through outsourcing
Organisation Effectiveness
Create
value
Human Resources
Add
value
Value for
money
Personnel
© Strategic Dynamics, 2013

11. ‘Social Recruiting’
• Each year, Goldman Sachs invests over 100,000 hours
in conversations with prospective employees
• About 5,000 applicants speak to 10 members of the
firm
• About 2,500 speak to 30 members

14. So in your organisation, what really
makes the difference to business
performance?
The individual quality /
capabilities / performance of the
your people, or the way your
people work together?

18. Chile ranks fifth in the world for social networking
usage
A recent study has suggested that Chile has the fifth
highest usage of social networking sites worldwide.
Chileans spend up to a third of their time on social
networking.
The average Chilean internet user spends around 8.7
hours per day on social networking sites. This figure is
some 3.3 hours greater than the worldwide average of 5.4
hours per day.
Source:
http://www.ilovechile.cl/2011/09/21/chile-5th-highest-social-networking-usage-worldwide/
32451

21. So in your organisation, what
proportion of your HR activities
focuses on creating social capital
vs human capital?

22. • Values and purpose
• Organisation design
• Team design
• Network design
• Community design
• Job design
• Workplace design
• Social technologies
• Team based HR processes
• Leadership from the middle
• Team facilitation
• Team development
• Community management
• Internal communication
• Organisation development
• Social network analysis
STRUCTURE
STRATEGY SYSTEMS
SHARED
VALUES
STYLE STAFF
SKILLS

23. Alumni
Management Recruiting
Onboarding
Performance
Management
Social
Approaches
Learning &
Development
Communication
Reward &
Recognition
Career
Management

24. Gary Hamel: "Management 2.0 is going to look like web 2.0:
• Everyone has a voice
• Capability counts for more than credentials and titles
• Commitment is voluntary
• Power is granted from below
• Authority is fluid and contingent on value-added
• The only hierarchies are "natural" hierarchies
• Communities are self-defining
• Individuals are richly empowered with information
• Just about everything is decentralised
• Ideas compete on an equal footing
• It's easy for buyers and sellers to find each other
• Resources are free to follow opportunities
• Decisions are peer-based.”

25. Formal Structure Informal Structure
Exploration & Production
Exploration
Geology
Dhillon
Smith
Keller
Angelo
Klimchuck
Mitchell
Schultz
Zaheer
Petrophysical
Crossley
Myers
Avery
Drilling
McWatters
Ramirez
Sutherland
Cordoza
Production
Milavec
Production
Hussan
Waring
Reservoir
Hopper
Senior Vice President
Mares

27. Multiplying the Benefits
Group Social
HR
Individual Individual
HR
Social
Capital
Human
Capital
Activities Outcomes

28. jon.ingham@strategic-hcm.com
strategic-hcm.blogspot.com
blog.social-advantage.com
linkedin.com/in/joningham
twitter.com/joningham
strategic-hcm

29. Social Capital - Generating the Right
Connections, Relationships and
Conversations
@JonIngham