Build Social Capital; Partners for Innovation

Leaders of Great Groups trade the illusion of control that micromanaging gives for the higher satisfactions of orchestrating extraordinary achievement. — Warren Bennis

Social capital is the immeasurable value derived when people are working and thinking cooperatively together. Social capital has profoundly beneficial consequences for an organization.

Partners for Innovation works with organizations to build the productive and beneficial relationships that lead to extraordinary organizational success.

The industrial era promoted the idea that workers are a necessary operational expense. The goal in managing that expense is to get the maximum error-free work from people at the lowest possible cost.

In contemporary knowledge-based organizations, people are often more highly regarded as the "human capital" of the enterprise — the resources without which the organization would be inoperative. Investment in human capital has produced enduring and substantial rewards for those organizations perceptive enough to recognize the value of developing people.

Social capital acknowledges the value of individuals, yet goes further to also recognize the value of their relationships. Social capital is the sum total of the positive outcomes of people working productively together — the rising tide that raises all boats.

An investment in the social capital of an organization has immeasurably beneficial consequences for the well being of the organization and its people. The rippling repercussions of positive social capital generate good will among stakeholders, donors, clients, staff, and the public. Positive social capital enhances the performance of every individual in the organization.

Similarly, negative social capital, where people do not work well together, will have a negatively spiraling impact on organizational success.

	Labor "Boss" (Theory X)	Human Capital "Mentor" (Theory Y)	Social Capital "Coach" (Theory Z Squared)
A S S U M P T I O N S
Work	Work is distasteful and unfulfilling...that's why people have to be paid to do it.	Work can be creative and fulfilling.	Connecting with others, purpose to purpose, is thrilling and highly productive.
Expectations	Employees won't make good decisions or be productive unless they are carefully supervised.	If given the freedom to do so, people will take responsibility for work well done.	People will generate the highest value to the organization by freely collaborating to attain the organizational mission.
Staff Focus	The focus is on keeping the boss happy and avoiding punishment.	The focus is on meeting individual goals and standards for job performance.	The focus is on continual improvement in exceeding historical group goals and standards.
Manager's View	"Employees are here to do my bidding."	"I am here to support the effectiveness of individual employees."	"I am here to support people working effectively together."
Motivation	A system of rewards and punishments will induce people to do the right work.	Work is inherently appealing: people are motivated by challenge, achievement, recognition, responsibility and growth.	The greatest sense of personal fulfillment occurs when people collaborate to attain a common purpose.
Development	Staff are trained and compelled to do their work as delineated in tightly programmed job descriptions.	People are encouraged to develop a wide range of skills and to become more versatile assets for the organization.	People are encouraged to collaborate in ways that maximize the value of individuals' best gifts.
Goal	Get people to do as much of their prescribed work as possible, with a minimum of errors, at the least possible expense to the organization.	Develop the potential of people to act independently for the best interests of clients and the organization.	Develop the collaborative genius of the organization to continually solve problems and seize opportunities for improvement.