@JonIngham

Social Capital - Generating the Right Connections, Relationships and Conversations

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!

Basis for Competition

Competitive Positioning

Core Competencies

Organisational Capabilities

Competitive Positioning & Core Competencies

Processes

Technology Organisation

Sources: Michael Porter, Competitive Strategy, 1980 Gary Hamel and CK Prahalad, Competing for the Future, 1994

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

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

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

§  Accountability §  Capabilities §  Co-ordination and control §  Culture and climate §  Direction §  External orientation §  Innovation and learning §  Leadership §  Motivation

Organisational Health

Source: Keller and Price, McKinsey, 2011

Staff

Outcomes

Activities

Human Social Organisational

Skills Shared Values Style Systems Structure

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

Create value

Add value

Value for money

Personnel

Human Resources

Organisation Effectiveness

© Strategic Dynamics, 2013

•  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

‘Social Recruiting’

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?

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

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

•  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

SYSTEMS STRATEGY

STAFF STYLE

SKILLS

SHARED VALUES

Alumni Management Recruiting

Onboarding

Performance Management

Learning & Development

Communication

Career Management

Reward & Recognition

Social Approaches

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.”

Formal Structure Informal Structure Exploration & Production

Zaheer

Schultz

Mitchell

Klimchuck

Angelo

Keller

Smith

Geology Dhillon

Myers

Petrophysical Crossley

Exploration Avery

Cordoza

Sutherland

Ramirez

Drilling McWatters

Waring

Production Hussan

Reservoir Hopper

Production Milavec

Senior Vice President Mares

Outcomes Activities

Individual Individual

HR Human Capital

Group Social

HR Social Capital

Multiplying the Benefits

jon.ingham@strategic-hcm.com

strategic-hcm.blogspot.com

blog.social-advantage.com

linkedin.com/in/joningham

twitter.com/joningham

strategic-hcm

@JonIngham

Social Capital - Generating the Right Connections, Relationships and Conversations