Using Your ‘Utu’
In Mauri culture, ‘Utu’ refers to the preservation of balance and harmony within a civilisation. It was designed to create and strengthen social connections. The Mauri culture recognises that the stronger the bonds between individuals, the stronger the society, and it appears that New Zealand’s government have taken heed. Last month they announced that decisions on spending will no longer be based on simple GDP related impacts but will now take into account four wellbeing orientated dimensions: human capital, natural capital, financial capital and SOCIAL CAPITAL.
At forward thinking inc, we are dedicated to helping the growth of our client’s long-term value, delivered through relentless focus on developing the strength of their intangible assets. Specifically, through people, relationships and brand. Social capital falls into the bracket of relationships and is an area with which we are becoming increasingly interested - reflected in some of our more recent projects to help clients create and leverage the value embodied within a strong and well-functioning ‘community’ of employees.
Just as the true vitality of a country cannot be gleaned from movements in GDP, a company’s growth and profit margins are far from the whole story. New Zealand is leading the way in shifting the focus from purely financial metrics to the prosperity of the relationships which enable society to function effectively and productively in a sustainable way. Social capital is the ‘oil in the engine’; it lubricates connections helping things run smoothly. That said, whilst the Mauris understood the value of strong connections and trust in making a strong, well-functioning, successful unit, many organisations today are still not investing in their company community in the same way.
On a national level, low levels of social capital within society are likely to produce a number of negative consequences including: lower confidence in the government and leaders, lower political efficacy and general feelings of alienation. Likewise, a company with low levels of trust, reciprocity and collaboration will not function effectively in the long-term, likely leading to an unhappy, unmotivated and unengaged workforce and ultimately lower value.
New Zealand has taken the first step along a path toward a broader and better understanding of national prosperity. There is an opportunity for leaders in business to follow their lead by actively measuring and managing their intangible assets to achieve something similar.