OR Alone? Social Capital as a Professional Asset

Presentation to the INFORMS Roundtable, Spring 2001

Michael Trick, Carnegie MellonPresident-Elect, INFORMS

Outline What is Social Capital? Importance of Social Capital Decrease in Social Networks Implications for OR/MS

Professionals Questions for discussion

Inspiration Presentation inspired by work in

Bowling Alone by Robert Putnam Much data and ideas taken from

this book

Definition Social Capital : measures of the

value of social networks. Those tangible substances that count

for most in the daily lives of people: namely good will, fellowship, sympathy, and social intercourse [Hanifan, 1916]

Social Capital Value we gain from interactions per

se Some interactions lead immediately to

human capital (you teach me something: I gain human capital; I know you as a teacher, I (and you) gain social capital)

Generally the result of ongoing, repeated interactions

Social Capital Not a “fuzzy”, “feel-good” concept,

but a measurable aspect of life with clear economic and social implications. Careful studies show executives with

larger networks advance faster Those who volunteer time are healthier

As illustrated, cause and effect can be problematic

Illustration

Information

Social Capital

Information Exchange

Types of Social Capital Bonding: interactions that bind a

group together Bridging: interactions that work to

combine groups Both important but have different

implications (for getting a good job, wide social networks are often better than close-knit families)

Why is Social Capital Important/Useful? “Lubricant” that makes

interactions go (like money in economic transactions)

Leads to Trust Reciprocity Cooperation Institutional Effectiveness

Social Norms Social Capital (and efforts to gain

it) avoid “Tragedy of Commons” type inefficiencies

Avoids legalisms that can entrench poor choices

Downside to Social Capital Social Capital also can lead to

Sectarianism Ethnocentrism Corruption

How can the positive aspects be maximized and the negative minimized?

Examples of activities Working for Political Party Serving as officer in a club Church Attendence Membership in professional

organization Entertainment at home Bowled in a League

Declines? From the introductions today “Not enough time” “Feel bad I don’t do more” “Lack of proximity” “Commuting 20 hours/week” “Used to do, but don’t do now” “Part of a generation that doesn’t

join”

Decline of Social Capital 1970-1995

Worked for political party

7% 2.8%

Served as officer in club

10% 6%

Attended Church 42% 36%

Member of Institute of Architects

41% 28%

Entertained at home 14 9

Bowled in a league 69/ 1000

31/ 1000

Further Sign? Informs Membership

1994 1998 1999 2000

Regular 13,100

11,752 11,058 10,499

Student 2700 2253 1985 1755

Retired 325 492 504 516

Decline of Social Capital By almost any measure, the

activities that lead to social capital are declining after having reached a peak in 1950-1970 period

Decrease is strongest in youngest cohorts (relative to involvement of others at that age)

Exceptions Even possible exceptions are not

encouraging Some membership organizations

have grown (Greenpeace and the like from 8/1000 to 37/1000). Membership is essentially fundraising

“Small group movement”: growth limited to “inner-directed” AA and other self-help

What about the internet? No evidence in data yet Lots more talking, little listening Few examples of true social capital

building (issues with lack of social cues)

Huge issue remains: how can we use these technological advances to create real communities

Effects of this decline Society is measurably more

doubtful of others (people don’t trust each other as much)

People break “little laws more” (at a set of stop signs in NY, stopping went from 38% in 1978 to 1%)

Charitable giving has decreased Many more signs of breakdown

Why? Many suspects No one reason Careful study does remove some

possibilities: hard to blame internet when the decline from 1970 is steady

Pressures of Time and Money Heavy time demands are more likely

to be active civically and professionally Busy people spend less time reading

books, sleeping, and (particularly) watching TV

Increasing financial anxiety during period, however decreases in engagement even correcting for this

Pressures of Time and Money Full time employment by women (attributable

virtually entirely to financial pressures) decreases civic involvement (Porter: “Although the mothers of the current generation of American adults were usually not part of the paid labor force, they engaged in many socially productive functions. As their daughters have assumed a greater share of work outside the home, one might have expected their sons to assume a greater share of other social responsibilities but … that has not happened”)

Sprawl and mobility Rural and small towns have been

“hotbed” of activity: now decreasing

More time spent in commute gives less time for other activities. Speed is actually up, which causes formerly self-contained towns to become bedroom communities

Television and technology There are now 2.4 TV sets per

household, and the average household watches TV 7.5 hours/day

Isolated and isolating activity that correlates most strongly with other measures of social disengagement

TV Usage: “TV is my primary form of entertainment”

Strongly Agree

Strongly Disagree

Volunteered 4.1 9.1

Letters written 12 18

Club meetings 5 9

Worked on community project

1.5 3

Gave finger to another driver

3 1.4

Causation? Some interesting studies of 3

northern Canadian communities in the 1970s, one with no TV, one with one channel, and one with five.

Participation in community activities was sharply higher in “no TV” town

Generational Shifts Two ways these changes could

come about: uniform across all ages or replacement of “civic generation” with a less civic generation

Data is clearly in favor of the latter. Matches with TV results

Relevance to OR/MS Professionals? Clearly an important issue for

society Bowling Alone received widespread

media coverage Is there special relevance to OR/MS

professionals?YES! (I think)

Importance of Social Capital Communication

with colleagues for Jobs New methods Support Ongoing

information

Communication externally for Funding Initiatives Professional Growth

By our very nature, this bridging social capital is key to our success (“OR waxes and wanes”)

Effect of Bowling Alone conclusions Society membership is a poor measure

of importance of an area. OR/MS may be dying, but don’t point to INFORMS membership numbers for support.

Instead, the reverse may be true: OR/MS may be weakened by lack of emphasis on social capital issues (just as many aspects of social welfare are weak in states with little social capital).

Effect of Bowling Alone conclusions (cont.) Societies (including the Roundtable)

may likely require more professional support to offset decreased volunteer effort.

Decreased opportunities for “bridging” social capital

Don’t think less of colleagues who don’t join: they are getting to be the norm.

“Mispricing” of social capital opportunities due to lack of experience.

Offsetting these effects

First step in solving a problem is to recognize one exists.

Recognize social capital as a key component of our professional lives and increase supply Structured lunch tables at conferences Additional opportunities for members of

our profession, particularly young ones

Offsetting the Effects Increase demand for social capital

Create cohorts of “bonded” individuals within the larger community (viz. the “small group movement”)

Increase rewards and professional recognition for “social capital” activities

Hide social capital activities in other actions

Offsetting the Effects Understand social capital issues in

the communities we create (user groups, cross-functional teams, professional societies, etc.) Do not overemphasize knowledge

over interaction Recognize individual reluctance Create opportunities

Offsetting the Effects Be leaders in exploiting new

technology to create mixed online/live communities Offset time/ sprawl effects Look at the “open software communities”

and try to extend their success. Move beyond the “individual” aspects of

the web to discover social capital aspects

Illustration

Web pages

True interaction

Questions How does social capital affect your

professional life? What special aspects of life as an OR/MS

professional do you see affected by social capital?

What has affected your ability to gain and retain social capital?

What opportunities do you see for generating social capital in OR/MS either globally or in your area? Can you generate both bridging and bonding?

Practice Portal Advertisement Time to get to reception, so:The Practice Portal (Phase 1) is coming

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Talk to (aka “Gain social capital with”):Robin Lougee-Heimer, IBM, AE

PracticeMatt Saltzman, Clemson, IOL Editor