A business is in itself a social network of people connecting to create value collectively both internally and then delivering the value externally. If the value creation chain breaks down internally it affects the value delivery externally.

The people within every business are influenced by the organization’s culture. The culture is a “mesh” of beliefs and behaviors regulated by the organizations leadership. Whether recognized or not, the culture is driven by a set of principles--spoken and unspoken. People learn to work within the constraints of an organization’s culture which then create social norms

When you look at the social web you can see a construct of millions of people socializing. This construct creates numerous behaviors represented by the conflicting principles of different affinities to certain values.

As in the physical world we see people migrating to groups that reflect common principles. Then these groups, and the individuals, produce media which expresses positions and opinions. Collectively, the principles of the group are reflected by the communications within the media produced.

The same concept applies to an organization. Within every business there are attributes of a social norm reflected by the value system set by management methods. Not unlike the web, businesses represent a “mesh” of principles reflected by the interactions of the people with each other, with suppliers and with customers.

How Do Conflicting Principles Impact Business?

When a business says one thing and does another it is, in fact, establishing its own principles of social norms. When a business fails to satisfy customer expectations the root cause can be found not only in broken processes but social norms reflected by employee behavior. Do we really think employees go to work everyday with the intent on delivering poor customer service? No, poor customer service is a result of “systemic disconnects between the people and the processes.” Can the people change a process? No, only management can institute process changes. Can the people change the social norms? No, only leadership can change the social norms.

The Socialution™ for businesses to leverage the advantages of the social web is centric to Leadership principles and management processes. Both of these control and set the social norms of an organization. People are designed to serve and willing to do so. People cannot serve when the social norms constrain their ability to do what is a natural human instinct, to serve other people.

That is of course if the people believe your product or service truly has value for the customer.

What Say You?

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The Emergence of the Relationship Economy

Relationship Capital is the cornerstone of the Relationship Economy, which RNIA defines as an “economic system in which Relationship Capital influences the production, distribution, exchange, and consumption of goods and services.”  I am proud to have contributed discussion of the Ten Laws of Relationships Capital to the upcoming book The Emergence of the Relationship Economy, now out as an eBook and in hardcopy.  With a forward written by Doc Searls (of Cluetrain Manifesto fame), it is being considered a “must read” for anyone responsible for the strategic direction of their business.  If you would like to purchase your own copy of The Emergence of the Relationship Economy, please click here.

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