A visual guide to 21st century networking

21ST
CENTURY
NETWORKING
A GUIDE TO
BROUGHT TO YOU BY:

Published in 2014 by Head Resourcing Ltd, Edinburgh, Scotland.
Written and edited by
Scott Torrance & Ross Coverdale
Design and layout by
Ross Coverdale & Mirka Voláková
Illustrations by
Scott Torrance & Mirka Voláková
Downloadable PDF of this white paper is available online at
www.headresourcing.com

WWW.HEADRESOURCING.COM
CONTENTS
What networking is
What has changed
Impact of technology
Drop your old tools
Being a connected employee
Clustering
Brokerage
Closure
The strength of weak ties
Scale-free networks
Social capital
Generation C
Social networking 101
What does matter?
1.
INTRODUCTION
2.
(UN)CONNECTED
BUSINESS
3.
NETWORK SCIENCE &
THE CONNECTED AGE
4.
ADDING VALUE IN
YOUR NETWORK
5.
SIZE DOESN’T
MATTER

4
INTRODUCTION
Networking always has been and always will remain important in business.
However:
How networks are constructed has changed
How we network has changed
How you go about creating value has changed
How you scale your network has changed
And these things are changing fast.
Unfortunately, not enough of the thinking in business has changed, and
the tools that we have are no longer fit for purpose. We need a new
approach for the 21st century.
While social networks are playing an increasingly important role in how
business is done, we have a poor understanding of how they work. The
same is true of building human social networks to help you achieve your
business goals.
In this white paper we are going to introduce you to the world of network
science and explore how it can change your behaviour to significantly
improve your results. Network science is not a new discipline, but
recent findings coupled with an ever changing business landscape has
challenged many of the core principles of relationship building, and offers
invaluable advice that, until now, business has largely ignored.

5
WHY SHOULD YOU READ THIS GUIDE?WHY SHOULD YOU READ THIS GUIDE?
THIS GUIDE WILL HELP YOU:
In a world where customers and consumers are becoming increasingly
connected, being a connected employee is no longer something that only
the social media-savvy intern does, in the same way that networking is no
longer just a task for sales people looking to hit their targets.
To remain competitive in the future individuals need to understand how to
conceptualise, understand, and leverage their networks to get things done.
Learn about the mindset
required for success in 21st
century business
Understand how networks
are constructed and how
value is added
Learn how to leverage
your relationships
Understand power and
control in networks
This is the first in a two-part series of white papers on networking in the
21st century, where we take a look at the theory to better understand the
impact of social networks in business.
In the second white paper we will apply that theory into an actionable
strategy for success.

There is a lot
that SCIENCE
knows about
NETWORKING
that is largely ignored
by BUSINESS

7
Networks have always been important in society – they have been the
cornerstone of various social evolutions and revolutions, and, of course,
they are key to success in business.
What’s interesting is the
increasing scope of areas
networks are influencing in
business...
...and that social media platforms are making
connections more explicit.
INNOVATION
LEADERSHIP
CAREERS
500+
CONNECTIONS
PEOPLE CONNECT IN WAYS
THAT BUSINESSES DON’T
YOU
MARISSA
MAYER
How you’re
connected...

8
Most business leaders now accept the importance of informal networks in
driving performance and innovation, but so few spend the time to assess
the implications for organisational structure and personal networking.
Just as someone who is IT illiterate will make incorrect decisions about
how best to accomplish a task, so too will the network illiterate make
incorrect decisions about how to network to get things done.
The importance of social networks in business are being accelerated by
two factors:
the unstoppable rise and adoption of technology
the use of that technology for people to connect and
self-organise
THE IMPACT OF TECHNOLOGY
Technology is changing how we communicate and interact with each
other and this is having a significant impact on how relationships are
formed and developed.
When we talk about networking in business it is easy to get caught up
in the technology and social network platforms that have interwoven
themselves into the very fabric of our every day life. While Facebook,
Twitter and LinkedIn are important, we must not underplay the role
that mobile devices – and in particular the smartphone – has played in
accelerating both the adoption of these platforms but also in drastically
altering the communication landscape.

9
Just think, in the last 24 hours how often have been more
than 10ft away from your smartphone? Whether you’re
always aware of it or not, you are more connected to your
network than you may realise.
(UN)CONNECTED BUSINESS
How information is created, accessed and shared has been significantly
altered by technological advances and the social networks that sit on top of
this technology. These changes are creating a shift from an ‘information age’
following the industrial revolution, to a ‘networked age’ where employees,
customers and organisations are becoming increasingly connected.
As such, more traditional or formal channels are being bypassed both
internally within businesses but more so in the marketplace; customers
nowadays are continuing to connect, creating informal networked
communities that allow them to share information and experiences
throughout the buying journey – and this is all beyond the control of
businesses.
Think about how many companies have
had well-publicised marketing initiatives
hijacked by their consumer base on
Twitter?
In many spheres of your life you are the
connected customer; you are using your
social media connections to decide which
restaurants to go to on a Saturday night
or what books to buy, but most people are
not applying this thinking to their own careers
or business interests.

10
BUSINESSES IN GENERAL ARE SLOW TO
REACT AND WILL NEED TO ADAPT TO
SURVIVE.
This is all having an impact on how relationships are formed and develop.
We are using outdated tools and approaches to relationship building that
are not fit for purpose in a networked world. The capability is available to
us as we have all the communication tools at our fingertips – in fact, they
have never been more available – but we don’t
have the skills to use them effectively in business.
We need to drop our old tools and ways of
thinking and adopt a new approach to networking
that is fit for a connected age.
However, this is easier said than done.
Organisational theorist Karl Weick investigated this topic by
looking at wild fire fatalities where firefighters refused to
drop their tools when ordered to do so, and as a result were
overrun with fire and died within sight of safe zones. The
firefighters could have made it if they had been lighter and
more agile, if they had dropped their tools.
One firefighter who was unable to outrun a fire was found
250ft from a safety zone still carrying his back pack and
chainsaw.
Source: Drop your Tools: On Reconfiguring Management Education (Weick, 2007)
While this is a rather dramatic example, the inability to drop your old
networking tools and bad habits, and pick up new ones, could signal the
demise of your competitiveness in the workplace.

As 21st century employees
and business leaders
we need to REVIEW
our APPROACH to
NETWORKING.

12
To be able to navigate this new business landscape we need new tools and
new ways of thinking.
Network science provides these. Network science is the study of complex
networks; from computer networks, to biological networks, and cognitive
and semantic networks.
Networks are everywhere in our life. A network is basically a set of nodes
and the connections between those nodes.
When things are deeply connected they act and behave differently.
NETWORK SCIENCE
& THE CONNECTED AGE
Take for example a single ant. It
is not overly intelligent in that it
cannot achieve much by itself…
…but when networked
together ants can create
remarkable structures and
communities that they
wouldn’t be able to alone.

13
The first step in adapting to this new business landscape is to understand
social networks. When you have an understanding, the sometimes
complex and seemingly unpredictable nature of networks starts to make
sense, and you can use that understanding to your advantage.
When it comes to relationship building we are interested in social
networks and the field of social network analysis.
WHAT IS A SOCIAL NETWORK?
A social network is simply a network where:
The nodes are
organisations and
people...
...and the connection
between them
are the links.
formal
informal
logical
emotional
Think of your workplace, school, church, clubs and associations that you
are involved in, these are all social networks.
Social networks are interdependent; they rely on each other for survival
and ultimately success.

14
We’ve all heard of Generation X and Generation Y – these relate to the
period in which you were born (between the 1960s and early 80s, and
between the early 80s and early 2000s, respectively). Certain trends and
assumptions around motivations and aspirations in life and work can be
attributed to these generations.
Generation C is
not a demographic
designation
but rather a
psychographic one
driven by a specific
set of values,
opinions, attitudes,
interests, lifestyle
and personality.
The best networkers are paid more, get more promotions... but this is too
broad; it’s not just about being a networker, and it’s not about having the
most connections or the biggest rolodex.
The top networking performers have very specific characteristics, and
build their networks in a very specific manner to maximise value, which
we will go on to explore.
Become a part of Generation C
“Social networks are patterns
of behaviour and interaction. As
behaviours are repeated, they form
stronger associations over time.”
DAVE GRAY
Author of ‘The Connected Company’

Do you speak
NETWORKING ?

16
ADDING VALUE IN YOUR
NETWORK
To be able to fully utilise these new tools we must first improve our
network literacy. We refer to network literacy because it is a fundamental
skill that will determine a person’s success in business. Entrepreneur John
Battelle identified the competitive edge that the ‘search literate’ had in the
Information Age in being able to find and make sense of the ever-increasing
amount of data in the information age1
. This is no longer enough; in the
Connected Age we must improve our network literacy to better navigate an
increasingly uncertain landscape and identify opportunities along the way.
When we start to understand the structure of our social networks we start
to understand that there are two main activities that create value in small-
world networks: clustering and brokerage.
1 – Source: The Information Age to the Networked Age: Are You Network Literate? (Hoffman, 2014)
Information flows quickly and
repeatedly within clusters
Information doesn’t flow easily
between clusters
CLUSTERING
Your network is a group of clusters. There are two key points that are
important to note about clusters:

17
BROKERAGE
Brokering is about developing the weak ties—building the bridges and
relationships between clusters.
BROKERS
(connectingclusters)
CLOSURE(building trustwithin a cluster)
loosely
connected
densely
connected
clusters
And this is how clusters and brokers relate in a wider network:

18
As a networker in the 21st century your job is to bridge the gap between
diverse networks by becoming a broker between two separate networks.
Research consistency shows that brokers within a network receive higher
salaries, more promotions and increased industry recognition. In Rob
Cross’s research into high-achievers, no other factor was as important for
determining career success than the extent to which a person is a broker
within a network2
.
When you have the
opportunity to learn
how someone in another
group does what you do
differently, jump at it.
Brokerage & Closure (Burt, 2005)
Brokers are in a position
to see the differences
between clusters, cross-
pollinate ideas, and
to capitalise on these
differences to co-create
value and opportunity
where previously there
was none.
The Connected Company (Gray, 2012)
ROB BURT
DAVE GRAY
2 – Source: The Hidden Power of Social Networks: Understanding how work really gets done in organisations (Cross; Parker, 2004)

19
Burt identifies three advantages that brokers have in a network:
BREADTH OF
INFORMATION
Brokers are able to pull information
from multiple, diverse networks
and cross-pollinate those ideas. By
identifying the differences between
networks they are able to capitalise
on these opportunities and create
value where there was none before.
TIMING
They are the first to introduce an
idea into a cluster.
TRANSLATION
As we discussed above, closed
networks can develop a unique
language. Develop the skills and
abilities to be able to translate
knowledge from one network
and introduce it into another in a
language they understand.
This gives brokers access to diverse,
often contradictory information and
interpretations.
While there is a lot of competitive advantage to be accrued to the person
who can bridge the gap between networks it means stepping out of the
comfort zone of closed networks. This means increased discomfort and
requires intellectual flexibility to handle the increased uncertainty.

20
CLOSURE
Whereas brokering is about developing the weak ties between clusters,
closure is about building strong ties within a cluster by building trust and
alignment within the community.
These are two very different ways that you can add value to a network. It
is important to develop the right balance between brokering and closure
that aligns to your role and the goals you are tasked with achieving.
Sociologist Brian Uzzi carried out a study looking at why
certain Broadway musicals made between 1945 and 1989 were
successful and others flopped. The explanation he arrived at
had to do with the people behind the productions. For failed
productions, one of two extremes was common. The first
was a collaboration between creative artists and producers
who tended to all know one another. When there were
mostly strong ties, the production lacked the fresh, creative
insights that come from diverse experience. The other type
of failed production was one in which none of the artists had
experience working together. When the group was made up of
mostly weak ties, teamwork and group cohesion suffered.
In contrast, the social networks of the people behind
successful productions had a healthy balance: there were
some strong ties and some weak ties. There was some
established trust, but also enough ‘new blood’ in the system to
generate new ideas.
Source: The New Yorker – Groupthink: The Brainstorming Myth (Lehrer, 2012)
Understanding this can also help you to understand and navigate the
informal power structure in any large complex organisation.

21
There is an inherent tension between the two roles.
Brokers are striving to increase
variation within networks by
bridging knowledge and this
means focusing on freeing oneself
from the restrictions of one group.
Closers on the other hand are
looking to reduce variation and
are looking to drive common
behaviour and alignment within
the group.
Build high-quality
relationships with
trusted allies and
establish a broad
network of weak ties.
The Start Up of You (Hoffman, 2012)
REID HOFFMAN
Founder of LinkedIn
Being a recruitment consultancy it feels right that we look at
challenging long-held assumptions regarding job hunting and
give some advice on how to overcome it.

23
When you are looking for a job, who do you turn to? Most people would
say that you turn to those closest to you. This of course makes sense,
because they are the ones who know you the best and would do anything
to help you succeed.
While these strong ties are important in many situations, when job
hunting, this is often not where the real advantage comes.
A Stanford sociologist, Mark Granovetter, set out to test the
assumption that we get the most help from our strong ties,
surveying people in professional, technical and managerial
professions who had recently changed jobs. Nearly 28%
percent heard about the job not through their strong ties, but
in fact through their weak ones, compared to 17% from strong
ties.
Source: The Strength of Weak Ties (Granovetter, 1973)
It is often the people with whom we are least connected to that offer us
the most interesting and diverse career opportunities. Why is that?
STRONG TIES
WEAK TIES

24
These connections work in the same places, read the same things and
socialise with the same people. Weak ties on the other hand are our
acquaintances, the people we know casually and potentially haven’t
seen for a few years for whatever reason. It is these weak ties that
offer a connection to new networks, introducing new and interesting
opportunities and job leads.
Often a short conversation with a relative
stranger over coffee can spark a deep
connection and open up a whole new world
of opportunities that were previously not on
your radar.
Now that you know this, what comes next?
Start building those weak ties now... before you need them. Engaging with
lots of different people will increase the likelihood of these serendipitous
encounters. Start thinking about how you can grow your network, be it
through social media, hobbies, industry events, alumni groups or any other
social groups and occasions.
OUR STRONG TIES ARE TOO CLOSE TO US

26
The basic idea behind Metcalfe’s Law is
that the ‘potential value’ of a network
increases exponentially as you add new
interconnected nodes. In the context of
relationship building, this means
that as you build relationships that are
connected to each other, the value of
the network increases exponentially3
.
Metcalfe’s Law becomes significant when a critical mass is
achieved and hockey stick like growth occurs.
Small world networks only tell part of the story.
In the early 1990’s, economist George Glider postulated a theory that
would change how we think about networks from telephones to the
Internet and social networks. He called his theory Metcalfe’s Law, named
after the founder of Ethernet.
SMALL-WORLD TO SCALE-FREE NETWORKS
Most networks are what Ron Burt defined as small world networks. Small
world networks are a combination of densely-connected clusters that are
loosely connected with each other.
VALUE
#OFCONNECTIONS
3 – Source: Information Rules: A Strategic Guide to the Network Economy (Shapiro, 1998)

27
When small world networks combine and grow
a higher order pattern emerges.
PREFERENTIAL
ATTACHMENT
SUPER
HUBS
When new nodes
join a network,
they don’t do so
randomly
They are more
likely to attach to
large nodes
No matter how
large they grow, the
distribution of nodes
and hubs doesn’t
change
SCALE-FREE
NETWORKS
What emerges are so-called
This becomes significant
when a critical mass is
achieved and a hockey
stick like growth
appears

28
SIZE, STRUCTURE & SOCIAL
CAPITAL
The size of your network is often held as the ultimate
measure of the value of someones network, but
network science challenges this core assumption.
Luckily the field of network science starts to offer some actionable
insights that help to challenge our long held beliefs about networking.
It is not the size of your network that matters but rather the structure
and the resulting social capital you have. Your position within that set of
relationships — the benefit you get from this is your social capital.
While there are many definitions of social capital they all agree that social
networks have intrinsic value. The social connections and relationships
you have affect your productivity and your ability to get stuff done.
Social capital explains how some people do better because they are
somehow better connected to people.
THE SIZE OF YOUR
NETWORK DOESN’T
MATTER
IF SIZE DOESN’T MATTER, THEN WHAT
DOES?

29
SOCIAL CAPITAL
Imagine the situation, you have a new business
idea for the healthcare sector that you want to
move on but you need a software developer to
work with you to make it a reality. You know two
developers in your network who have the perfect
skill set to make it a reality.
The question is: who are you likely to approach
with the opportunity, Alex or James?
Who has the most value?
James
Alex
YOU MUST LOOK AT THE WIDER NETWORK
All of Alex’s connections are within
the software developer network,
with indirect connections to VCs
and the healthcare sector through
friends of friends.
Alex is likely to have a lot of
redundant information as many of
his connections are what network
scientists would call ‘structurally
equivalent people’.
James’s position affords him a
number of advantages:
Given James’ position in the
network, he is a bridge between
the groups and therefore a conduit
for information between the three
groups.
Healthcare
Professionals
Software
Developers
Alex
James
VCs
James is
what network
scientists call
a broker; he
bridges the
gap between
separate groups.
Early access to information
Access to a wider variety of
information
Control over information
diffusion
In short: you should approach James.

30
HOW WILL EFFECTIVE NETWORKING
IMPROVE MY PERFORMANCE?
Rob Cross at The University of Virginia, carried out research
over 5 years looking not at what people with big networks do,
but rather on how the high performers in an organisation use
their network to drive results.
Cross found that there is often a statistically significant
negative likelihood of knowing a lot of people and being a
top performer.
Source: The Hidden Power of Social Networks: Understanding how work really gets done in organisations
(Cross; Parker, 2004)
If this is the case then what do high performers do?
Cross found that high performers manage their networks in very specific
ways:
They look to develop and encourage a range of different ideas and
information in their networks.
They get out from behind their desk and maintain balanced
relationships across organisational lines, departments within their
organisation as well as out with the company’s four walls. As well
as balancing of kinds of benefit, information, political support they
receive from their network.
They look to extend their abilities; to build networks that challenge
them, not surrounding themselves with people who only know
what they know.
They build purposeful, high-quality relationships that actually drive
ideas and innovation towards them on a voluntary basis over time.

31
In the next white paper we will take this knowledge
and put it into action, looking at how to develop a
robust networking strategy for the 21st century that
will ensure your competitiveness in the marketplace.
Building up a large number of connections within your closed network is
easy because it is comfortable, but it is not where the value lies.
As you build and nurture your network, ask yourself: are you following
these principles or are you falling into old comfortable habits?
While there is a lot of competitive advantage to be had by the person
who can bridge the gap between separate networks effectively, it is not
always an easy thing to do. It is often very enticing to stick with what
we know best, but becoming a high performer requires stepping out of
your comfort zone and stepping into the discomfort that comes from the
increased uncertainty that will ensue. Being an effective networker in the
21st century requires you to hold many different and often contradictory
viewpoints; join the dots that others may not see and translate that insight
into a language that people will understand.
Now that we have a better understanding of how how social networks
affect business and our ability to get things done, now what?
THE VALUE OF OUR CONNECTIONS
GROWS WHEN WE REINFORCE THE MOST
IMPORTANT CONNECTIONS.

Thank you for reading our guide to networking in the 21st
century.
JOIN IN THE DISCUSSION ONLINE:

A visual guide to 21st century networking

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