1. Which relationships
can boost your
career and start-up?
Strategic Networking

2.  Formerly Information Systems
 Research project on social networks
 EBIN 2009/2010
 Business Plan (EBIN group)
 Execution – with several twists and turns
 Dissertation: Strategic Networking for
Entrepreneurs
 Now:
Benjamin F. Wirtz

3. 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.
Many sales people get 80-90% of their
business through networking
organizations.
About 70% of all jobs are found through
networking
A referral generates 80% more results than
a cold call
Socially embedded employees are 40%
less likely to quit their job.
74% of all buying decisions are made on a
friend’s recommendation

4.  Lecture
 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
Overview

5. The lecture bit

6.  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 ?

7.  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
perceive cooperation (for exchange) as
beneficial to themselves.
What is Social Capital ?
Strategic Networking

8. How can networking be valuable?
Social
Capital
Goals
Information,
Knowledge,
Resources
Value
Networking
Strategic Networking

9.  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

10.  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

11.  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

12.  “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

13.  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?

14. 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)

15. The workshop bit

16. Strategic Networking
Strategic Networking Framework
Analyse
- Needs
- Haves
Plan
- Relationship
Portfolio
Network
- Search and
exchange
- Contact and
relationship analytics

17. 1. Define a goal (e.g. succeed with a business
idea)
1. And make a rough plan how to achieve it
2. Define your needs
1. Information Input (e.g. competitors, market
situation)
2. Tacit Knowledge (e.g. how to run a start-up)
3. Resources (e.g. funding)
4. Information Output (e.g. to get a strong partner on
board)
Strategic Networking
Analyse

18. 3. Analyse what you have and whom you know
1. Match to needs
2. Plan A (easy) and plan B (backups or ideal)
3. Is your relationship at the right level?
4. Create your Relationship Portfolio
1. Know your “hubs” (people with lots of contacts)
2. Ensure diversity
Strategic Networking
Plan

19.  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?

20. Strategic Networking
Networking Cycle
Prepare
Interact
Post-
Process

21.  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

22. Benjamin F. Wirtz
Email: ben@handyelephant.com
Twitter: benfwirtz