Strategic Networking Can Rachet Up Your Success

[Maria Elena Duron]

This article appeared this week in the FINANCIAL POST:

Strategic networking can ratchet up success
Strong networks typically perform two major functions for a company. They build a business's visibility and help it meet specific objectives.

How do I build an effective business network?
Mary Teresa Bitti, Special to the Financial Post
Published: Tuesday, May 20, 2008

To build strong alliances, you first have to decide what you want
those alliances to do for you. According to Becky Reuber, associate
professor, strategic management at the Rotman School of
Management at the University of Toronto, there are essentially
two answers to that question. One is to gain a certain visibility and
a good reputation.
They say birds of a feather flock together. This maxim is also true
of business networks.
"You're judged by your affiliations," Ms. Reuber says. "If you are on high-powered committees or you
are associated with well-placed people in the business community, that rubs off onto you and your
firm."
In effect, to some degree you are who you hang out with. So you absolutely want to be associated with
individuals that are at least as good as you are and, hopefully, better.
The second answer comes down to your goals for the business. In other words, your network is a
means to help you achieve specific objectives. "Do you want to build a sales capability? Do you want to
find out what others are doing in terms of sales compensation? Those are specific objectives," Ms.
Reuber says. "Just going to networking events and handing out business cards is not going to be
effective. What are you looking for at this time?"
If it is to raise your company's profile, then there are natural places to go in your community. Think of
your local Chamber of Commerce, young president's club, industry associations --all often sponsor and
encourage business networking events. Consider these options the low-hanging fruit.
If you are looking for input on specific issues -- and this is perhaps where the true strength of a strong
network lies -- then there are some interesting non-traditional routes to take.
Perhaps this is a good time to make the case for why a solid business network is important. Richard
Carson, partner with Deloitte and leader of the consulting firm's customer and channel strategy
practice in Canada, says a good strategic network can take a business to the next level.
"It's a no-brainer that having a strong network is key to building a successful business," Mr. Carson
says. "We all need input from different stakeholders who can challenge the status quo. If you want to
grow, you need to do something different to attract more customers or get your current customers to
spend more. Often, that requires someone or a group to challenge you to innovate and improve. You
need fresh ideas. You need people to tell you the truth about what's not going well."
So, before you go out there, you have to drill down and decide what is the biggest
opportunity/challenge for which networking might be able to help you.
"Naturally, people think, OK, I'm ready to network, let's find peers or competitors who can give me
new ideas, without first taking that step of [defining] what specifically you want to get out of that," Mr.
Carson says. "But that's not going to help."

And don't limit yourself. Mr. Carson thinks business owners should view their networks as a fluid
thing. In fact, consider multiple networks to get new ideas. "People who are successful have multiple
networks in life and in business," Mr. Carson says. "So they get a real variety of input. I don't think any
one type of network is right."
That said, he proffers a few options on how to create an effective network: - Go to the people who
advise you. Think your lawyer, accountant, banker. They have clients who might be in similar
situations to you. Ask for an introduction. "It's important to talk to people who might have the same
size of business as you, similar goals but in a completely different sector as they might offer a fresh
perspective. Leverage those relationships, it's an often untapped potential." - Think about your local
community to find out who some of those folks might be and who you might peer up with.
Most small business owners don't leverage their vendors enough, Mr. Carson says. Go to your
suppliers and find out who their other customers are and which ones you could potentially peer up
with. - Look to your own clients. Organize a customer panel each quarter. "Put it out there," Mr.
Carson says. "Tell them, 'you are a loyal customer, you have a good feel for my business, help me grow.'
This can be very impactful. Understanding them can be a great way to network and get new ideas." -
Look to people who don't necessarily think like you. It can be older or younger people, Mr. Carson
says. "There are a number of retired executives who may be bored and more than willing to share their
lessons learned." He suggests leveraging organizations such as the Canadian Association of Retired
Persons (CARP).
On the other hand, if you are an entrepreneur over age 40 with little access to people in their twenties
and thirties, you are missing out on a whole perspective of what they might be looking for. Go to your
friends' children and talk about attitudes, experience, likes --be open to new ideas."
Of course, there are also social networking sites such as Facebook -- seemingly all the rage with all
generations. Worth a look, Mr. Carson says, but trust them only in so far as you can ensure the input is
valid. In other words, take what you get with a grain of salt. Finally, the important thing to remember
about networking is you don't have to accept or implement the ideas you hear. But by listening, you
might get some fresh thinking that could help you out.
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I agree and am floored by how little strategy is put forth in building those associations. Whether it's your on-line or off-line reputation, you are "built by association". How well you do at that determines if your network...works!

[David Sandusky]

I can't think of a better time to comment how thrilled I am you are part of this community, Maria Elena! Your reputation on and offline is stellar and your expertise in building personal brands and connectors is respected!