Skip to content
November 15, 2011 / compassioninpolitics

The advantages of social capital for individuals and companies

Valdis Krebs highlights the need to focus beyond the individual for 21st century skills:

In the knowledge economy, content is no longer sufficient. . .everyone has access to multitudes of content. You cannot compete on what everyone knows. The new advantage is context — how internal and external content is interpreted, combined, made sense of, and converted to end product. Creating competitive context requires social capital, the ability to find, utilize and combine the skills, knowledge and experience of others.

Krebs continues by explaining how not only is social capital key to the success individual but also the company:

The following is a list of outcomes and goals that are the focus of HR. All are significantly influenced and enhanced by better social capital both within the firm and across its borders. People with better social capital:
◆ find better jobs more quickly4
◆ are more likely to be promoted early5,6
◆ close deals faster7
◆ receive larger bonuses8
◆ enhance the performance of their teams9
◆ help their teams reach their goals more rapidly10
◆ perform better as project managers11
◆ help their teams generate more creative solutions12
◆ increase output from their R&D teams13
◆ coordinate projects more effectively14
◆ learn more about the firm’s environment and marketplace15
◆ receive higher performance evaluations16
The affects of social capital do not contribute to just the success of individuals and teams. Organizations with better connections in the network of industry alliances and joint ventures report higher patent outputs,17 a higher probability of innovation18 and higher earnings
and chances of survival in rapidly innovating industries.19 Social capital within the firm and across the firm’s border to other firms, seems to be a prerequisite for organizational learning, adaptability, and agility.

From “Working in the Connected World: Social Capital — The Killer App for HR in the 21st Century” IHRIM Journal by Valdis Krebs

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 196 other followers

%d bloggers like this: