Have you ever wondered about the true cost is exacted by
the people in your company who regularly leave bad
relationship tracks? According to a recent report, almost
80% of employees believe, to paraphrase the late Rodney
Dangerfield, that "they get no respect" at work. Sixty
percent of those think the situation is getting worse.
Twenty percent of employees say they are victims of
incivility on a weekly basis. One in eight employees ends
up leaving because they experience rudeness. The average
Fortune 1000 executive spends 13% of his/her time mediating
worker disputes. According to Time Magazine, that
translates to seven weeks a year!
The true cost of social deficit is recognized by more and
more companies. One company has a policy that will not
tolerate people who consistently disrespect people and who
throw sand in the gears of human interaction. But Social
deficit is not just caused by people who are rude. It
occurs any time we walk away from an interchange without
building rapport, trust and respect.
These social deficit costs go beyond the bottom line. They
also create other serious problems. Conversations that
occur in an environment of social deficit require more time
and effort in order to develop shared understanding. Even
mild social deficit can quickly double the interactive time
that is required to complete a successful transaction. As
social deficit increases in severity leading to breakdowns,
the waste explodes exponentially.
In every interchange, you are either building social
capital or social deficit. And what you build in this
interchange will be there to meet you in the next.
Social capital is the residual value that is created when
relationships include trust, rapport and openness. It is an
asset that builds value: an investment in one interaction
that pays dividends in the next.
Social capital isn't just about treating people with
respect. It is also about creating trust. You tend to trust
the people that are both capable and reliable at delivering
on their promises and keeping their commitments. You trust
people whom you know are open and forthright and are wary
of those that are manipulative or speak with mixed or
hidden meanings. You experience rapport and are more
naturally open with those you trust.
Social capital influences the fabric of conversations
because it creates a safe haven in which undeveloped ideas
can be teased out and clarified. It also increases the
amount of intellectual ferment by creating a generative
environment that encourages people to move out of
intellectual comfort zones to produce inspired thought.
The broader the thinking required, the greater the bank
account of social capital required.
We build social capital with conversations not only because
we seek community although this is an invaluable end in
itself. We build it because we know that high quality
relationships measurably enhance our ability to
collaboratively develop ideas and to do it without the
waste that always accompanies social deficit.
How do you build social capital in your organization? It
isn't just about weeding out the worst offenders. Here are
some concrete steps you can take.
Set expectations. Build a set of norms at the executive
level. Then set the clear expectation that everyone will
use every interaction as an opportunity to build social
capital.
Back it up. Let everyone know the cost of social deficit,
and what it takes to build social capital. Share the norms
you expect people to live by. Then back it up. Don't just
excuse people because they make their numbers. Let them
know that you expect them to also deliver on social
capital. Many companies make it part of performance review.
Provide support. Don't start by singling out the people
who have a reputation for creating social deficit. Make it
clear that you expect everyone to step up. That's why we
don't recommend hiring an executive coach just to deal with
problem people. Instead, translate your norms into a 360
degree feedback survey. This should be administered to
everyone on your senior team and should include individual
coaching for each person. Then include your middle
managers. Important: The survey information should be
totally confidential. It should not be shared with anyone
other than the coach. Performance review should be focused
on observed behaviors, not confidential survey information.
Stay on it. Make it clear that you are expecting a
permanent shift. If people don't step up after they are
coached, that is the time to deal with them directly.
Repeat the 360 degree feedback and coaching process to
track improvement.
Social deficit exacts a hidden cost far beyond just time
wasted. It can increase turnover, degrade innovation, sour
relationships with customers and erode morale. The
investment you make in social capital is money in the bank
because it never stops paying dividends.
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Lewis E. Frees, Ph.D. is president of Harmony, Inc.
(http://www.harmonyinc.com ) an organizational development
consulting firm. Lew and the Harmony team train, coach,
facilitate and provide process consultation to develop
inspired high performance organizations. Together they
provide services necessary to ensure that organizations
master all of the five competencies required to develop
superior intellectual products and big value outcomes.