Building 'Ready for business image':

Effective networking for business development

Dr. K. Kuhathasan- CEO Cenlead

"Human networking in reconciliation is the way for Sri Lanka to hold the banner of ready for business in a short period of time," said Indian HR Consultant S. Ramesh at a seminar recently.

One of the fastest developing practices in the business throughout the world involves firms in cooperative relationship with their suppliers, distributors, and even competitors. These networks of relationships enable organizations to achieve efficiency and flexibility - to exploit the advantages of the mechanistic and the organic organization designs.

The exact form of the network organization varies. Some organizations develop relationships only with key suppliers. Other organizations develop relationships with marketeers and distributors.

The critical managerial and organizational decisions involve which of the functions to buy, which of the functions to produce, and how to manage the relationships with their partners.

Managers in these network organizations have less environmental uncertainty to deal with because they have, in a sense, subcontracted that responsibility to their counterparts in the network. Such organization structures are, in a sense, boundaryless organizations.

The exact form of the network organization can take different shapes. Some forms follow the Japanese practice of establishing alliances. These alliances take the form of cooperative agreements, consortia and equity ownership agreements to establish networks of business.

Why networking

* To win friends and influence people

* To connect rapidly with a wide range of people

* To communicate magically

* To build solid, lasting relationships

* To create incredible results

* To help others improve performance and increase success

Management role

What separates successful from unsuccessful managers, particularly at senior level, is their networking abilities. Most managers now spend their time in lateral rather than vertical relationships. Interpersonal skills are therefore, important, and networking demands that these skills should be of a high order.

Effective managers work at building contacts in other departments so that, when required, they can obtain rapid co-operation. They know that seniority alone will not guarantee such help. It will take the building of personal relationships.

Networks are loosely constructed arrangements that bypass the hierarchy. Whoever initiates a project, for instance, will be responsible for seeing it through, regardless of their position in the organisation.

If you work in an organisation that relies heavily on projects or temporary teams, you will need an anchor as you move from one group to another. A network provides that support. Networks facilitate direct person-to-person connections. This might be through phone calls, meetings, faxes, video conferences and e-mails. Instead of having around you one specific team, you can also have a "virtual" team.

Learning the art of networking is becoming critical to managerial success. It matters most in organisations that are:

* Strongly decentralised

* Based on heavy interdependence between people of different knowledge and skills.

* Based on common and demanding standards of performance.

* Willing to allow leadership to be exercised by informal leaders.

* Ready to accept challenges to traditional boundaries.

Benefits of Networking

To you

* More contacts leading to more business

* The wider knowledge and service you can offer others

* More exposure and higher profile

* Formal and informal support for projects/problems

* A variety of information

* The chance to offload worries and be listened to

* Constructive feedback

* Assistance in deciding priorities

To others

* Better service

* More business

* The chance to share your knowledge and expertise

* Promotion of the organisation

* Speedy problem solving.

Some networking basics

Be cautious at the start. Make the first move and avoid making it a request. Sending out your promotional literature is not networking, it is selling.

Be prepared. Help other people. List the members of your network on index cards or computer. Note down information that may be of use to them when you hear it.

Find the right approach. You have to decide which member to approach with your request and how to make it. When making a request do not always seek the obvious; try to get different answers or perspectives on an issue.

Avoid pressure. People like to be approached gradually, not hustled into helping you. Carefully assess the ability of the person you plan to ask.

Use people's time wisely. Know what you want before you ask for it. Think things through before picking up the phone.

Check for reasonableness. Consider whether your request is reasonable. Are you asking someone to take a big risk? Will it require much time and money? If the table were turned would you do it for the other person?

Respect their priorities. Even though your request is important to you, the other person may be too busy right now to help. Accept this with good grace.

Be specific. If you are vague you may not get what you want. Calling half a dozen people may be useless. Approach the right people only.

Explain what you need and why. Ask them how they would approach the same problem.

Think about the phrasing. Give thought to how you convey your requests. Phrasing requests like sales patter may be less effective than if offered as opportunities or possibilities.

Reciprocate. If someone asks you for help, give it generously. If you cannot provide it, recommend someone else to contact. Show a real interest in their problem.

Give value. Offer value rather than always trying to make a sale. Give value without expecting anything in return.

Keep people informed. When given the name of someone to call, keep your original contact informed about any results.

Say thank you. Never take someone's good nature for granted, a thank you is always required.

Start now. Do not wait until you really need a network to begin developing one. Networks are based on trust, respect and personal chemistry. They are not created overnight.

Stay in touch. Networks continually change, evolve, expand and contract. They need nurturing, be creative about keeping in touch.

Keep it two way. Maintain a balance between asking for and giving help. Too much giving is as bad as too much taking. By giving without ever accepting something in return, you make recipients hesitant to ask for more, you imply that they have nothing to offer.

Deliver on promises. Do not make promises you cannot deliver.

Analysing network relationships

* What do they want from me?

* What do I want from them?

* How do they tell me what they want?

* How do I tell them what I want?

* What are the main issues or things involved in the exchanges I have with them?

* How do I know if my or their performance is satisfactory?

* What can I do to strengthen the relationship?

* Is enough time being invested in a particular relationship?

* Is the networking helping me to be more effective?

* How could the network serve me better and what action must I take to ensure that it does?

The blocks

Some managers remain reluctant networkers. They find the whole process distasteful or messy. Often this reluctance reflects a defensiveness that ultimately damages their effectiveness. Shyness is another reason for avoiding active networking. It takes a certain amount of confidence to call someone you do not know and ask for help.

But one of the commonest reasons why people fail to make networking succeed is that they simply forget people's names, lose their phone numbers, or fail to keep proper records.

If you are reluctant to network it is time to explore the barriers and see if you can begin to overcome them. If you are shy, then maybe you could benefit from some personal development program to build your confidence.

If you keep losing names, use a computer based contact system, or more simply use a business card holder. Effective networking will offer you personal success, professional competence and organisational productivity.