Strategic Networking for BusinessPresentation Transcript
Strategic Networking Which relationships can boost your career and start-up?
Benjamin F. Wirtz
Formerly Information Systems
Research project on social networks
Business Plan (EBIN group)
Execution – with several twists and turns
Dissertation: Strategic Networking for Entrepreneurs
Many sales people get 80-90% of their business through networking organizations. A referral generates 80% more results than a cold call 74% of all buying decisions are made on a friend’s recommendation Meeting 2-3 people at an event and learning more about their needs and challenges is far more valuable than collecting (or giving away) 20 business cards. About 70% of all jobs are found through networking Socially embedded employees are 40% less likely to quit their job.
Basics of social theory
Why networking is valuable
How to utilise networks
Workshop (hands on!)
Analyse your goals and needs
Check if/how your network can help you
Plan to align your network towards success
The lecture bit
Talking to people Swapping business cards Selling yourself The art of making and maintaining relationships It’s all about exchange ! Strategic Networking What is Networking ?
Crucial for exchange in networks: Trust (comes from positive experiences over time) Perceived value of further cooperation by others Social capital = value of information, knowledge and resources, that an individual can potentially access, because others perceivecooperation (for exchange) as beneficial to themselves. What is Social Capital ? Strategic Networking
How can networking be valuable? Social Capital Value enables access to creates Networking delivers Information, Knowledge, Resources affects Goals requires Strategic Networking
Four eyes see better than two Different points of view New ideas Complementary information Examples Students: Where to get a job Entrepreneurs: Market insights, feedback Managers: Moves of competitors, foresights Benefits (I): Information Input Strategic Networking
Humans specialise Complementary knowledge, skills Tacit Knowledge (based on experiences, awareness) Hard to transfer, needs a lot of trust and time Examples Students: How to write a successful application Entrepreneurs: How to write a business plan Managers: How to negotiate good deals Benefits (II): (Tacit) Knowledge Strategic Networking
You don’t own the world ...and your friends neither But you can help each other out “Activate” social capital to get money, time or goods Examples Students: Getting invited for dinner Entrepreneurs: Investment, website redesign Managers: Extra staff from another department Strategic Networking Benefits (III): Resources
“Ideas that spread, win” (Seth Godin) Visibility (let others know what you need) Credibility Search (for resources or knowledge) Examples Students: Get jobs by recommendation Entrepreneurs: Market your product for free Managers: Get promoted Strategic Networking Benefits (IV): Spreading Information
Networking by itself has no value at all Diversity: You can’t do/have everything yourself Dunbar’s number: You can’t have more than (roughly) 150 friends Cognitive constraint Strategic Networking Why a strategic approach?
Strategic Networking What is Strategic Networking? Aligning your network towards achieving your goals Strategic Analysing your needs and haves Planning your relationship portfolio Tactical Planning networking events (which ones and why) Juggling socialising and working Operational The Talking & shake hands part (exchange)
Define a goal (e.g. succeed with a business idea) And make a rough plan how to achieve it Define your needs Information Input (e.g. competitors, market situation) Tacit Knowledge (e.g. how to run a start-up) Resources (e.g. funding) Information Output (e.g. to get a strong partner on board) Strategic Networking Analyse
Analyse what you have and whom you know Match to needs Plan A (easy) and plan B (backups or ideal) Is your relationship at the right level? Create your Relationship Portfolio Know your “hubs” (people with lots of contacts) Ensure diversity Strategic Networking Plan
Use tools to support networking LinkedIn (find suitable contacts) Plancast (meet them at events) Twitter (find out what they are up to) Reflect if you are on target HandyElephant Strategic Networking It’s all planned – what now?
Strategic Networking Networking Cycle
For shy/introverted people: http://www.slideshare.net/sachac/the-shy-connector Ground breaking paper: Granovetter (1973) – The Strength of Weak Ties For short breaks: TED.com (e.g. Daniel Kahneman) Wikipedia: Expected Utility Theory, Prospect Theory Strategic Networking Further Reading
Benjamin F. Wirtz Email: email@example.com Twitter: benfwirtz