Are You a Leader or a Manager? How Social Capital Plays a Vital Role in Organizations

“Managers help people see themselves as they are; Leaders help people to see themselves better than they are.” (Jim Rohn)

Managers manage. And leaders lead. I know you’ve heard this before. And while they do tend to go hand in hand, they’re not necessarily the same thing. Consider this:

• A manager mostly performs tasks on a structured basis and is required to follow specific functions, is faced with more systematic responsibilities, and is not necessarily focused on building relationships with those who aren’t needed to meet their current goals – mostly utilizing internal connections in their company.
   
• A leader asks questions and challenges the task at hand, consistently adds value and establishes innovation around projects and ideas, leads by example and influence and continuously empowers others, and is focused on strategy and building relationships with people who can assist with current and future goals regarding their organization – usually utilizing both internal and external connections.

Networking is about collaboration and sharing worthy information with those who are valued. And whether you are a “networking manager” or a “networking leader” this applies to you; the difference is in how you nurture your connections and handle your relationships with others.

Be a Change (Networking) Leader

Change is a good thing. Many are afraid of it, others avoid it, but it should be looked at as progress – not a road block. “Change is not a threat, it’s an opportunity. Survival is not the goal, transformative success is,” says author and business executive Seth Godin. Sometimes you need to assess and restructure who you network with to make a difference and be successful, because without change there is no evolution. This is how you can benefit from networking, as long as you understand how important it is.

Think about how you can make advancements within your own network, so you can evolve from a “networking manager” to a “networking leader”. It’s like Moore’s Law: “The simplified version of this law states that processor speeds, or overall processing power for computers will double every two years.” This suggests exponential growth, which, for better or worse is a reality. And you should embrace changes that need to be made to how you network so your relationships can continuously improve and progress, similar to how computers constantly advance.

According to Wayne Baker: “Exceptional leaders,” he says, “look for success in the right place. They understand the value of social capital. No matter where they are in the organization, these leaders are social architects who establish the conditions of interaction and then stand back and allow networks to blossom on their own.” By realizing how powerful your social capital is and by helping people first, you are actually demonstrating your leadership skills and how valuable you are – and what you bring to the table.

Those with Good Networks are Good Influencers

The research on power and influence shows that people who are well networked are three times more influential than people who aren’t. (The Power of Networking by Terry R. Bacon) Developing your network and recognizing who you can tap into as a resource helps you to grow as a leader. When you consistently depend on the same people over and over, you may create a sense of over-reliance on these individuals, and results may not be as effective.

Creating new connections or recognizing a diversity of others within your current network who can provide the expertise you need to reach your goals gives you access to different people – resulting in a variety of individuals you can rely on. This helps you expand your leadership skills, knowledge, opportunities, innovation… and your influence on others.

Herminia Ibarra, the Professor of Organizational Behavior at London Business School states: “Being able to network effectively is a crucial part of a leader’s job and it’s what distinguishes them from managers.” This is very true. Managers are not always necessarily tuned into the importance of networking and creating new relationships.

She goes on to say: “Leaders require the ability to figure out where to go and to enlist the people and groups necessary to get there.” You must place significance on your networking circle and your sphere of influence, and understand who you can depend on to obtain what you need. This all helps to increase your social capital and leadership within an organization.

“When I talk to managers I get the feeling they’re important. When I talk to leaders I get the feeling I’m important” (Alexander den Heijer) This is also what differentiates a “networking manager” from a “networking leader”. You should strive to be the latter…and consistently reinforce the value you find in others, which leads to stronger and influential relationships.

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NetWorkWise Top Tip: When you recognize the power of your network, and your connections value what you offer, you will be regarded as a trustworthy leader and influencer by others.

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