Social Capital Is Value Which Your Business May Be Missing

“People who like what they do, do it better”. This is what Henry Engelhardt had as his philosophy when he started Admiral Insurance in 1993. He wanted to enjoy work. He recognised that if his staff were happy and enjoyed work too, there would be better productivity, so he set to work with a company philosophy putting happy staff at the centre of his business model.

One initiative to promote this philosophy is to have a business team called the Ministry of Fun, a team dedicated to organising weekly social activities for staff, such as come to work in fancy dress days, such as Superhero Day, nights out, or computer game tournaments in lunch breaks.

For 14 years in a row, Admiral Insurance has been in the 100 Best Places to Work in the UK. The business has grown to a $5.6billion valuation, is in the UK’s FTSE 100 stocks and has 7000 staff across Europe and India.

ARE YOU MISSING OUT ON SOCIAL CAPITAL?
Venture capital, human capital, financial capital, leveraging, share offerings are all sources of value that are utilised in business. And, yet, businesses can still miss out on a key source of capital to help them grow – Social Capital!

The Admiral Insurance story is one of a deliberate culture setting out to build and use strong Social Capital.

Work is, and always has been, one of the most defining aspects of our lives. It might be where we meet people, excite ourselves and feel at our most creative and innovative. It could also be where we can feel our most frustrated, exasperated and taken for granted.

With the average worker now spending over 90,000 hours at work in a lifetime, the workplace has become a “centre of meaning, membership, and mutual support “, and of friendship. Indeed, many people count some work colleagues as good friends.

Work organisations are inherently social. Many organisations depend upon the goodwill of staff members, and on their cooperation with customers and each other, to achieve the goals and mission of the business. The 2016 Edelman Trust Barometer shows that the trust of the majority cannot be taken for granted.

Failure to acknowledge Social Capital and to build an environment to cultivate it may mean that your business is missing out on this vital form of capital and the opportunity to advance to the next level.

WHAT IS SOCIAL CAPITAL?
Social Capital is the sum of goodwill and potential resources available to individuals and groups stemming from their networks of relationships.

When the members of networks have established some level of knowledge and trust, it brings them to a level of commitment to each other and a desire to exchange resources with each other, and this provides a context in which innovation can flourish. People have the desire to do things for and with others within their social networks. People tend to do things to help and encourage those in their same social network, creating a cycle of mutually beneficial reciprocity.

Like monetary capital, Social Capital has some value. It can be accumulated, invested and exploited, through deposits and withdrawals. The Ministry of Fun initiatives at Admiral Insurance are examples of ‘building deposits’ of Social Capital with the staff.

The outcomes of Social Capital are:
• Exchange and Reciprocity – “I’ll scratch your back, because I can trust you to scratch mine, when I need it”
• Good spirits
• Follow through – a willingness to go the extra mile with those in your network
• Trust overcoming uncertainty – it is far easier to come to an agreement with someone with whom you have a positive connection than with a stranger. There is a banking adage that says, “A relationship is worth one basis point”.
• Team Identity, even ‘team pride’

The ‘value’ of Social Capital can be seen by imagining a workplace where Social Capital was missing, one where:
• competition trumped cooperation
• there was little trust, with too much suspicion, whispering and cynicism
• there was little willingness to:
o share information, or to share it in a timely manner
o share resources
o assist each other
• business units stay stovepiped within their silos

HOW IS SOCIAL CAPITAL DIFFERENT FROM HUMAN CAPITAL?
Social Capital differs from Human Capital (as in HCM). Human capital may be said to be focussed on the education, experience and abilities of an employee for a particular role or pathway. It is a main focus of HR and managers, who are trying to hire, develop, performance-manage, promote and retain their talent pool. There may be some overlap between Human and Social Capital depending on how a business’s culture, employee engagement and wellbeing are defined. Many businesses choose to invest in the happiness and well-being of their employees because this investment indirectly benefits the bottom line by cultivating a happier, more energetic workforce.

IS SOCIAL CAPITAL THE SAME AS EMOTIONAL INTELLIGENCE?
When Billy Aydlett became the 7th principal in 6 years at Leataata Floyd Elementary, a school with a long history of dysfunction in a low-income part of Sacramento USA, he quickly discovered that the young students were not going to be able to make progress on the academics until they had gotten help with their social and emotional issues.

However, although Aydlett had risen through teaching ranks to become principal, he was a socially awkward man who confessed to being “awful” at ordinary human encounters, so he attended social-emotional training. Since beginning the emotional-literacy work, Aydlett said he had become more aware of interpersonal dynamics, and even made going on a vacation with his wife a priority – something he had never bothered to do before. (“I didn’t see the point in that kind of connectedness,” he admitted. “But I’ve learned that it’s important.”)

Emotional Intelligence is the ability to recognise emotions in oneself and in others, to be able to harness and manage them. They are the individual skills that are used by each person to build his or her Social Capital within work or other networks.

The experience of Mr Aydlett shows that building social connections does not come naturally for many people, even successful ones!

Deliberate action needs to be undertaken to foster Social Capital across the staff in a business. Some may be able to make flourishing connections naturally, for example “She’s a ‘people-person'”, but many are not able to do it on their own.

HOW IS SOCIAL CAPITAL OBTAINED?
Social Capital is built by the types and frequency of social interactions. Staff need fresh, shared experiences and face-to-face interactions to keep Social Capital flourishing.

Attending an event together gives a shared experience, which creates their own unique narrative/stories amongst attendees.

“Do you remember when we went xxxing? Wasn’t it great!? Wasn’t it funny when yyy completely messed up? And wasn’t zzz surprising in how she blitzed it!?”

This helps develop ties and bonds, and begins trust between participants.

Team building events can be very useful. If you have met someone from the business at an event, the ice is broken. The next time that you meet them, you are further along the path than with a stranger and better positioned to ask for a favour.

Most team building falls flat because it is a one-time activity, done and then forgotten. The challenge is to keep creating opportunities for people to connect and interact in meaningful ways, outside of regular meetings or training.

BENEFITS OF SOCIAL CAPITAL
Social Capital offers advantage to businesses iv. Here is a listing of the kinds of effects achievable through deliberately helping staff to build Social Capital.

RESOURCE SHARING
Team members have more certainty about how their peers will respond to requests for help. They can drive at unique solutions due to more certainty of a favourable response.

The resources available to individuals via his or her social networks within a business or industry are very wide ranging. The type of resources that someone else could provide include:
• Offering to use their influence,
• Providing their time,
• Accessing some of their budget dollars,
• Providing advice,
• Connecting an idea with the right person,
• Offering support,
• Giving (privileged) information,
• Sharing space and tools,
• Releasing a worker to join a project team,
• Providing an introduction to the right person,
• Giving a testimonial concerning another’s abilities,
• Smoothing access to higher echelons, sponsors or approving bodies,
• Gaining opportunities for advancement and development, or
• Simply rolling up their sleeves to pitch in when a deadline looms.

INNOVATION
Those who define Social Capital claim that it can influence innovation. How so?

It can provide an excited environment full of positivity, collaboration and willingness. It can also provide ‘casual collisions’, whereby unexpected encounters may connect diverse ideas. Roman Philosopher Seneca defined luck as what happens when preparation meets opportunity. Sports commentators can be heard to regularly say that great teams or sports people ‘create their own luck’, which probably means that they show a mixture of being more polished, less clumsy, displaying a commanding, professional presence and competence.

IMPACTING EMPLOYEE ENGAGEMENT
For the last 5 years, the Gallup organisation has found that the percentage of US employees who are unengaged has remained steady at 70%. This is despite concerted efforts by executives in those years to drive engagement higher than 30% in business.

Gallup defines an engaged employee as, “[They] are involved in, enthusiastic about and committed to their work. Gallup’s extensive research shows that employee engagement is strongly connected to business outcomes essential to an organization’s financial success, such as productivity, profitability and customer engagement. Engaged employees drive the innovation, growth and revenue that their companies need.”

Using this definition, we can surmise that 70% unengaged employees have low involvement, low enthusiasm and low commitment to the business and its profitability, and this effects its bottom line.

Clearly, something needs to be done about increasing staff engagement and involvement, and one way to impact this is have an active Social Capital building, through events, training and team building/team bonding activities.

HEALTH IMPACTS
Social Capital can also impact employee health, with positive benefits for those who have Social Capital and negative risks for those low in it or without it.

A 5 year study of 65,000 Finnish Public Servants ending in 2005 showed that men with low Social Capital had a 40-60% higher risk of chronic hypertension (high blood pressure) compared to their peer males who had high Social Capital. They also had risks of an unhealthy lifestyle involving alcohol and obesity.

Interestingly, no association between workplace Social Capital and hypertension was found for women. Is this because of the natural inclination of women to socialise?

LEARNING
It turns out that happiness and learning are tied very closely together. Trying new things with your staff can generate good vibes among employees, which in turn benefits the business itself.

Positive or happy experiences activate the learning process. The ideal state of learning is called flow, when you lose yourself entirely in an activity. Flow happens when you’re so engaged in what you’re doing, that you lose track of time.

These are merely a sample of the positive outcomes available to business managers who choose to provide a positive culture and deliberately assist all staff to build Social Capital. Staff will call upon colleagues to gain access to resources that they would not otherwise have… and then reciprocate.

THE CHANGING NATURE OF WORK
In the past, we commuted to a workplace, committed to a single/or a few employers, knew work colleagues well for years and disconnected from work when we went home. Success was achieved via isolated effort through personal drive, ambition and competition.

According to Seth Godin (blogging and marketing genius), the old paradigm of a commute to rows of cubicles, with meetings behind closed doors, is all too expensive and slow. There is going to be a huge focus on finding the essential people and outsourcing the rest. It will be a high-stress, high-speed, high-flexibility way of working, with your efforts auctioned off to the lowest bidder.

Futurists predict that billions will be connected by mobile services in the cloud, working flexibly, surrounded by digital bots, assistants and learning machines. Success will be achieved through the combination of mastery, to stand out from the ‘crowd’, and connectivity, leveraging what the ‘crowd’ brings. Therefore, having a deliberate strategy to build Social Capital is a strong means of growing and leveraging connections.

The Deloitte Institute of Innovation and Entrepreneurship says that in a future increasingly defined by innovation (the capacity to combine and connect know-how), both competencies and networks will be key. It’s in this synthesis from the diverse members of the network that real innovative possibilities lie. So, whom you choose to connect with, and to whom they are connected, will be one of the defining aspects of future working life.

Workplace management, says Godin, will mean managing a tribe, creating a movement and operating in teams, sometimes in person, often online, dispersed throughout global time zones. Therefore, leaders will have to find new ways to help everyone feel like they ‘belong’.

SUMMARY
Social Capital will not disappear along with your dedicated workstation, but it will be ever evolving.

For some, building and using Social Capital is natural, but for many it is not. Deliberate interventions, such as team building activities, need to be undertaken… and repeated.

Consider these questions too. What happens to the networks when someone leaves the business? And, similarly, how does a new hire develop any relationships or break into existing networks?

Choosing regular activities that are unique and slightly outside of people’s comfort zones can encourage them to gel together for the first time or in new ways, building connections from which they can draw resources – Social Capital!

What are you going to do to build and leverage Social Capital in your business?

Attitude – The Power of Positive in the Workplace

o Did you know that 75% of employees are unhappy in their current job?
o Have you ever thought about how your attitude affects…
o Personality and work performance?
o Your employees, your customers, your relationships and your work environment?
o Workforce diversity, career success, and teamwork?
o Bottom-line results?

It all starts with attitude! A positive attitude is a priceless possession for personal fulfillment and career success. It is also an essential element for creating a positive workplace. It’s what really matters… When we think about the basics elements of human relationships, we think primarily about the attitude we each bring to relationships, whether they are personal or professional in nature. What is the first thing you remember about someone you meet? Chances are it’s their attitude!

Noted authors, Elwood Chapman and Wil McKnight say, “The attitude you bring with you everyday will significantly affect what you can see, what you can do, and how you feel about it.”
We all know what a positive attitude sounds like, but how can we define it?
Simply stated, Chapman and McKnight describe it as the way you look at things mentally, your mental focus on the world. It’s never static; it’s always in flux – the result of an on-going process that’s dynamic and sensitive to what’s going on.

Events, circumstances, and messages – both positive and negative – can affect your attitude. A positive attitude can be infectious! Let’s face it… no one can be positive all of the time! What we do know is that a positive attitude makes problem solving easier and the more you expect from a situation, the more success you will achieve (The High Expectancy Success Theory).

Nowhere is your positive attitude more appreciated by others than when you are at work. How does a positive attitude about diversity impact the world of business? A major change had taken place in recent years in the workforce: the generational and cultural mix of employees has become more diversified. The performance standards are the same, but the workforce mix is different. Business is complex and competitive – with comparable resources, including people. People with a positive attitude are looking up and forward and are more likely to work to higher standards of quality, safety, and productivity – individually and as a team. Working near a person with a positive attitude is an energizing experience; he/she can change the tone and morale of the department and make others feel more upbeat. Sometimes the reason people lack a positive attitude is simply that they don’t realize that they have a negative one!

A positive workplace is about the people and their positive outlook about their work and the organization that make the business thrive. The war for talent exists. Do we want to hire and retain people with positive or negative attitudes? The answer is obvious…Hire for attitude; the mechanics of the job can be taught. A company gets its edge from the attitude of its people – its leaders, its supervisors, front-line, back-office, entry-level and long-term employees. Employees want to feel valued and appreciated and will most likely be more engaged and stay with an organization, as a result. The higher the engagement levels, the more their attitude barometer rises. The higher the attitude barometer rises, the more business results improve.

Building and maintaining healthy, effective relationships in all directions – with people your work for, people you work with, and people who work for you – is a key to success. Business is a team sport, that’s a given. Nothing contributes more to the process of building effective work relationships than a positive attitude. More business successes are won on attitude than technical achievement. A supervisor who demonstrates and knows how to build a positive attitude can lead a departmental workforce with only average experience and skills to achieve high productivity and successful performance. It’s called “teamwork” and it happens often!

It’s important to remember that we all have a choice – to be either positive or negative in any situation – and we make those choices every day. By keeping our power and being aware of our own attitude and choices, we can protect ourselves from external circumstances and people’s negativity. Safeguard your attitude by solving personal conflicts quickly, taking the “high road” if someone behaves unreasonably or unfairly, insulating or distancing yourself from a person with whom you have a repeated conflict, focusing on the work and changing your traffic pattern to avoid people who pull your attitude down. Remember: Your attitude belongs to you and you alone!

Be open to new people, ideas and processes that create positive changes and improved bottom-line results. The business world consists of many people who are different from you. We’re dependent on each other to achieve common goals. We need to understand and work effectively with all the labor resources. Opportunities for us to learn about other generations, backgrounds and cultures broaden our perspective with new ideas, talents, and points of view – it all affects bottom-line results!
A word of caution – don’t go overboard by becoming a noisy cheerleader who spends more effort on projecting your attitude than nurturing it. Above all, don’t try to be someone you are not! Be who you are… Project the real thing! Be authentic!

Life is a learning journey and all we can do is to strive to do our best each day.
A wise person once said, “If you place more emphasis on keeping a positive attitude than on making money, you’ll be successful and the money will take care of itself.”
Be good to yourself, enjoy the ride and make a Positive Impact on your career and workplace with a positive attitude!

A Positive Workplace Means Business!

NFL Situation Spotlight #76 – Teams with a Big Pass Yardage % For (BPY%F) > 50%

When an NFL team takes the field on offense, their goal is simple: gain enough yards on each play as to set up an eventual 1st down, thereby moving the chains and starting the whole process over again, until either a field-goal, or preferably a touch-down, is put up on the scoreboard.

First-downs can be achieved in many different ways of course; either through the air, or on the ground; via the big-play, or by using a more conservative approach that involves more short-yardage conversions in 3rd-down situations.

Regardless of whether a team is built around speedy Pro-Bowl receivers that shred an opponents defense for long gains or they take a more traditional route, involving up-the-middle ‘smash-mouth’ runs with a mix of short-yardage pass attempts thrown in for good measure–all coaching staffs will use the players they have on the field and their accompanying skill sets in the best possible manner to get that next first down, or score.

The important question for those of us looking to beat the Vegas Point spread is: are there certain styles of offense that in the right situations, cover the spread at a higher rate than others?

The answer is yes and this article will briefly explore one style of offense that has produced some very good results against the spread over the past 7 years when a certain statistical bench-mark is achieved.

The particular style of offense I am talking about involves teams that produce a high percentage of big pass play yardage as part of their overall yardage gained by throwing the football.

My official label for this stat is BPY%F (Big Pass Yardage Percentage For) and it is a measurement of the percentage of total team passing yards that were gained from passing plays of 20 or more yards.

Dallas led the league in this category in 2007. 42.5% of the Cowboys passing yardage for the season came on plays of >= 20 yards. Green Bay and San Diego rounded out the top 3. The league average for BPY%F has typically been around 40% in most years over the past decade, but this fell to 37.5% in 2007.

It was actually a good year versus the spread for teams that rely on the deep ball: The top 8 teams in the league for BPY%F were a combined 75-45 ATS and none of the 8 had an ATS record under .500. Conversely, the bottom 8, led by Baltimore’s brutal pass attack (they had a BPY%F of only 25.5%) were a dismal 50-74 ATS.

These interesting results have not played out in a consistent manner over the past 7 years; however, and in some years, teams with a high BPY%F have only been mediocre against the number overall while those at the bottom end of the scale have been closer to .500 ATS.

When we look at teams entering a game with an extremely high BPY%F (greater than 50%); though, a consistent pattern does begin to emerge.

Since 2001–which is when I began to track BPY–teams have been an excellent 145-119 (54.9%) ATS when entering a game with a BPY%F of greater than 50% on the season.

Teams that have this large a percentage of big pass play yards are normally only seen in the first 6-7 weeks of the season, before a mounting number of pass attempts begin to reduce BPY%F to a more normal level, league wide. That’s not to say that some teams have not carried a 50% level all the way to season’s end (Philadelphia from 2006 is a good example, they had a BPY%F well over 50 at the end of that season) only that, this situation does predominantly play on teams that are extremely efficient with the deep-pass right out of the gate.

What we have here is good so far, but, there is one more primary condition that needs to be added to this situation before things really begin to take shape and it involves how ‘game-ready’ the opponent of our focus team happens to be, at this early stage of the season.

Here is the meat of this situation: I have found that teams with a Big Pass Yardage Percentage > 50%, playing a team with a Play Book Execution Penalty per-game average against (PBEPA) of 1.3 or greater are a very strong 56-20 (73.7%) ATS since 2001, for a profit of $3,400.00 when wagering $110 to win back $100.

What are Play Book Execution penalties you might be ready to ask? For those who have not read my NFL Game Sheets Guide, I categorize penalties under a total of 6 different headings and this particular category involves calls such as: Illegal Procedures, Formations, Shifts, Motion, Participation, Snaps and Substitutions; Intentional Grounding; Delay of Game; 12 Men on the Field; Ineligible Receivers, and so on–essentially those flags generated by the break-down of play-calls, mostly on offense. The league average for PBEP’s is normally around 0.7 calls per game (on each team).

It’s a category of penalties that act as a good yardstick for measuring the quality of a team’s coaching staff and also provides an indication if players are being used in schemes where they are comfortable and have the necessary skills to succeed.

Combining a team that is having great success with the deep ball early in the season, with a team that is perhaps at the other end of the spectrum in regards to ‘preparedness’ and offensive efficiency and creativity, creates line value that the astute bettor can exploit.

In addition to the main conditions described above, there are a few secondary conditions that serve to tighten the record of this trend.

Firstly, any games with an Over/Under of greater than 48 are excluded and our focus team must also be coming off a game in which their Time of Possession was 23 minutes or greater (TOPF is an excellent barometer of the overall health of a team, both on offense and defense).

In addition, teams that are coming off back-to-back SU wins of >= 14 points are also excluded as they are more likely to be either overvalued, or at risk for a let-down in the current game.

Lastly, teams that met their current opponent either earlier in the season, or anytime within the previous 2 seasons, and had a turn-over differential (TOD) of Primary Conditions (Building Blocks)

1) Big Pass Yardage % For (BPY%F) > 50%.

2) Opponent’s Play Book Execution Penalty Average Against (PBEPA) > 1.3.

Secondary Conditions (Tighteners)

1) Exclude Over/Under (OU) >= 48.

2) Exclude Time of Possession For (TOPF) in Last Game of = 14 points in Last 2 Games.

4) Exclude Turn-over Differential (TOD) Situation Stats

ASMR: +0.8

Home%: 55.4

Dog%: 42.9

TDIS%: 65.6

WT%: 75.0

SPR: -0.40

Top Teams: PIT(7); ATL(6); CAR(4); CLE(5)

Situation Records

Overall (Since ’01): 48-6 ATS

2007 Season: 6-1 ATS

2006 Season: 9-0 ATS

2005 Season: 15-1 ATS

2004 Season: 11-1 ATS

Last 3 Results. Pick in Brackets.

2007 WK6–CLE 41 MIA 31 (CLE -4.5) W

2007 WK5–WAS 34 DET 3 (WAS -3.5) W

2007 WK4–IND 38 DEN 20 (IND -9.5) W