Develop Your Team’s Social Capital, Not Just Their Skills
Leigh Wells/Ikon Images Leaders may prioritize executing strategy and driving organizational performance, but they are also responsible for developing the next generation of leaders. Traditionally, leadership development has focused heavily on performance — an understandable emphasis, given that leaders themselves are evaluated and rewarded based on execution and results. However, as…
Developing the next generation of leaders is a vital responsibility for leaders in organizations. Traditionally, leadership development has focused on performance and execution, as leaders are evaluated based on results. However, in today's organizations, success increasingly depends on the ability to build relationships, influence stakeholders, and gain credibility across different areas of the business.
Many organizations still develop high-potential talent primarily through performance-focused experiences, overlooking the importance of developing social capital. Social capital refers to the trust, goodwill, and credibility that shape how individuals are perceived, their contributions are interpreted, and the support and advocacy they receive.
It plays a crucial role in determining whether performance is limited to the team where it is produced or travels beyond, leading to broader visibility, advocacy, and opportunity. Despite its influence, few professionals are explicitly taught how to build social capital, convert it into opportunities, and use it for career mobility.
Social capital shapes how performance is interpreted, influencing whether accomplishments remain within a team or become recognized across functions and decision-making circles. In situations where individuals pursue zigzag moves across organizational boundaries, social capital serves as a mechanism to maintain credibility and trust with stakeholders who have limited knowledge of their previous work.
Building social capital occurs through everyday work interactions, such as thoughtful contributions, collaborative problem-solving, and consistent follow-through. However, it is also fragile and can be quickly diminished through poor judgment, broken commitments, or misaligned relationships. Social events may seem like networking opportunities, but participants caution that power dynamics and existing cliques can quickly erode social capital.
Black professionals, in particular, face additional risks, scrutiny, and rewards related to social capital.
Written by urgent.news from MIT Sloan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
