Social Capital: The Missing Link in Strong, High-Performing Organizations

Back in the day, business models were built around being competitive. In the drive to be number one, numbers and the bottom line became everything. As a result, the environment became competitive too. Organizations became obsessed with finding stars and rewarding them handsomely. And now everyone wants to be that star — and whatever it takes to get there is considered acceptable.

Climbing the corporate ladder was all that counted. So how’s that working today?

From our point of view… not so hot.

All too often we enter environments that are dysfunctional. People — really intelligent people — are frustrated that nobody listens to their ideas. Even more concerning, we meet too many people who don’t recognize the importance of what they are doing, who it affects, how it affects others, or why they should even try.

This environment is built on rules and hierarchy. Titles are king. The result?

• Leaders who don’t know how to communicate

• Leaders who don’t know how to build teams

• Leaders who think motivation is all about money and titles

• Leaders who miss the mark entirely on what drives people

They are missing out on the power of Social Capital.

What Is Social Capital?

Social Capital is the network of relationships among people in a workplace or society that enables it to function effectively. It is the missing link in why so many organizations flounder and fail to get the best from their people.

They’ve forgotten how to strengthen and further relationships.

There are three subcategories of social capital:

Bonding

Connecting with people who share common identity — family, close friends, culture, background.

Bridging

Reaching outward to distant friends, colleagues, and associates.

Linkage

Connecting across the organization — peers, bosses, direct reports, departments, divisions.

Bonding and bridging often occur naturally, even in spite of company rules. Linkage is where organizations separate themselves from the competition.

Linkage relationships require attention, intention, and cultivation — and they often determine whether a company is average, good, or great.

How to Build Social Capital in Your Organization

Building linkage relationships takes planning — and a few thoughtful meetings.

Start by asking:

• What factions exist within the organization?

• What can engineers learn from pattern makers — and vice-versa?

• What can sales learn from architects?

• What can food service learn from maintenance?

Every role has something to teach — and something to learn. Many problems simply need a fresh perspective.

Meetings should:

• Include diverse groups

• Clarify why social capital matters

• Teach how different units contribute to company success

• Involve “get to know you” activities

• Highlight organizational goals and everyone’s part in achieving them

It may feel awkward at first — relationship building always does. But the payoff?

• Breakdown of silos

• Stronger camaraderie

• Greater pride in contribution

• Improved problem solving

• A more cohesive workforce

Social Capital Builds Stronger Organizations

If you want a more unified culture, better collaboration, and teams that push for excellence, the answer is not more rules, more titles, or more pressure.

The answer is social capital — and the relationships that make people feel seen, valued, and connected.

Take the next step in your organization. Develop your social capital. If you need help, give us a call. We can show you a better way.

Strong leadership begins with strong relationships. Explore how LIA Training helps organizations build trust, communication, and connection through live and virtual training programs.