Jeff Lipschultz’s Blog

I Think, Therefore I Blog

Show Your Face(book), Part II

Last month, I shared my high level view on Social Media and the new ways friends, colleagues, and co-workers have embraced new communication tools that technology has provided [Show Your Face(book)].  I mentioned that although millions have jumped in this new sea of interaction, many are still slow to “dip their toe in the water.” I also shared some insights on Facebook specifically, as this is one of the more mainstream applications.  In a second post, I talked about the concepts of transparency and social capital associated with these tools (Just How Transparent Are You?).

Recently, my friend, Jeff Hurt (who I met on Twitter, by the way), shared with me great insights on the bigger picture.  He spotlights the ways in which social networking is effecting our relationships.  I love what he has to say on this and would like to share it with you.

“Social networking sites like Facebook, LinkedIn and Twitter are fundamentally changing how we live, work and relate to one another as human beings. The edges between work and social life are blurring. People are shifting their social networks into their work networks and vice versa—business associates and childhood friends, side by side. Business has invaded Facebook. Creative talent seekers are scouring Twitter and YouTube for their next star. Do you “friend” (befriend) your boss on Facebook? Do you send Twitter messages to your sales rep? You do now.

As individuals, we have two sources of personal competitive advantage: human capital and social capital. Human capital, which includes talent, intellect, charisma and formal authority, is necessary for success but often beyond our direct control. Social capital, on the other hand, derives from our relationships. Consciously or unconsciously, people use sites like Facebook, LinkedIn and Twitter as tools for maximizing their social capital (the currency of business interactions and relationships).

People don’t trust advertisers, buzz, marketing hype or strangers. Business people, consumers and people, like you and me, are looking for relationships built on trust. We want our friends and those we’ve built a relationships with to tell us something is good. We want someone we know, in our community or network, to tell us to read something, consider a new product or purchase a specific service. In this “Attention and Trust Economy,” communities are king and ROI stands for Return on Influence. As Chris Brogran says, “Friends are the Wall Street of the Trust Economy.”

Individuals with greater social capital and stronger networks close more deals, are better respected and get higher-ranking jobs. Online social networks offer access to social capital, empowering those who are well connected with private information, diverse skill sets, and others’ energy and attention. Participation in social media is the way to increase your social capital and ROI (return on influence).”


April 18, 2009 - Posted by | General Musings, Guest Post, Social Media

1 Comment »

  1. Hi, Jeff, thank you for your thorough social media posts and sharing your friend Jeff’s post, too. It makes me think of not only how technology has had such a tremendous effect on business networking, but also how networking has become imperative in our current economy. I look forward to reading more!

    Comment by Elana | April 23, 2009 | Reply

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