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Leveraging
    Your Links
                             Why successful
                             leaders network
                             By Herminia Ibarra & Mark Lee Hunter, INSEAD




     Building a diverse network of personal contacts can provide the
     support, feedback, insight, resources and information that is
     necessary for leaders to tackle current and unforeseen challenges.
     This article lays out the value of a ‘three-pronged’ networking
     approach as a major element of leaders’ professional development

                                                         www.criticaleye.net 01
There is no denying the ‘work’ in networking;    complementary to their own and that this
people must step outside their comfort           was not a distraction from the ‘real work’,
zone and into the unknown. The trick is to       nor was it insincere or manipulative.
look for those personal contacts that will
be great at advising objectively, or turn        Our study has led to the development of
colleagues from nearby operations into           three distinct categories of networking,
a support system. More than anything –           each of which has a role to play at different
you may have to re-evaluate your outlook         junctures of the leadership transition:
towards networking as a whole.
                                                 • Operational – linking to functional tasks
Based on the findings from our interviews with   • Personal – linking to individual development
30 executives, we found that most believed       • Strategic – developing new
their success was built on working hard and        business opportunities
focusing on the technical skills their jobs
required. However, moving into a leadership      OPeratiOnal netwOrking
role creates new challenges, in particular
strategy-making that supported the business      Membership to this network is very simple
as a whole, and not solely the functional        – you are either involved in the job or not. it
specialties they had always relied on.           involves interacting with functional peers,
                                                 superiors and crucial outsiders such as
Furthermore, our study revealed respondents      suppliers, distributors and customers. were
had trouble grasping that they would             it not for these connections, the executive
benefit from interacting with people in roles    in question would not be in his or her role.

            Community Comment
            David Kneeshaw
            Chief Executive
                                                 It is the rapport and mutual
            Royal London 360
 “Personal networking is as much about
                                                 trust of its membership
 enjoying the environment as it is about
 pursuing an objective. Simply being
 away from the desk, with its attendant
                                                 that makes an operational
                                                 network powerful and the
 minutiae and narrow urgent focus,
 creates a more open space in which
 to talk and share ideas. The result is a
 sense of perspective and rejuvenation
 of the mind. it is crucial to approach
 an event with a spirit of generosity
                                                 executive must work to
 and hope, not of immediate gain. To
 network in a mindset where you look for
 advantage from every conversation will
                                                 nourish these relationships
 be counter-productive and transparent
 to others. networking should be about           Operational networks are rarely created by
 giving and enjoying, not just taking,           executives; they tend to come along with
 to be a worthwhile experience.”                 the job. it is the rapport and mutual trust of
                                                 its membership that makes an operational
                                                 network powerful and the executive must
            Community Comment                    work to nourish these relationships.
            Lynda Gratton, Professor             However, operational networking should
            of Management Practice               direct an executive toward the important
            London Business School               knowledge that bigger goals necessitate
 “Building networks, especially those            bigger networks and a fuller perspective.
 outside your organisation, is increasingly
 a key leadership skill. a good networker        links are governed by routine, short-term
 juggles a diverse range of knowledge            demands. The network’s relations with
 flows and the value lies in building            outsiders, for example board members,
 reciprocal relationships that enhance this
                                                 customers or regulators, are those that are
 flow. Beyond the number of followers or
 connections you have, you should create         directly task-related, and tend to be bounded
 value for your cloud of acquaintances so        and constrained by demands determined at
 that later you get something back. Your         a higher level. But as an executive moves into
 social network is a community of practice       a leadership role, his or her network must re-
 in the sense that it has been built around a    orient itself externally, and towards the future.
 common shared interest or experience and
 it nurtures the feeling that you’ve been        take alistair, one of our interviewees, who
 informed by a trusted colleague; a friend.”     was unexpectedly promoted by his firm’s
                                                                                                     www.criticaleye.net 02
founder to Financial Director and given a            went public. The upgrade was brilliant
place on the board. Being the youngest and           for his team, but he missed the fact that
least-experienced, his immediate response            only a minority of the seven-person board
was to strengthen his operational skills. after      shared the founder’s ambition. alistair then
hearing a tip from the founder, he completely        realised that his time would have been better
reorganised the accounting department in             spent getting to know his co-directors.
order to hold up in the event the company
                                                     PerSOnal netwOrking
             Community Comment
                                                     Many executives see personal networking
             Matthew Blagg                           as an insincere trade of string pulling. This
             CEO                                     sentiment is often intensified by the idea that
             Criticaleye                             personal lives and business should be kept
  “networking is about forming business              very separate. But personal networking is not
  relationships that will stand the test             solely about making use of personal contacts;
  of time. it would be naïve to think that           rather it creates flexible links to individuals
  executives invest time and energy into             with whom we have things in common.
  networking without the expectation that
  they will get something back, but it is time
  to acknowledge that relationship building          Often, rising leaders become aware of their
  is a long-term investment. Furthermore,            disproportionately internal and functional
  potential business relationships are               concentration, so they see the benefit
  all around us, not just at events or               in building their knowledge in domains
  meetings set up for the specific purpose           beyond their areas of proficiency. By joining
  of initiating business partnerships. The           professional associations, clubs, and common
  interconnectivity of today’s business              interest groups, executives can widen their
  environment means it is no longer enough
                                                     perspectives – both professionally and socially.
  to network with other executives in the
  same industry as you. The challenges
  that face you at the top of the tree go            Personal networking can offer new executives
  beyond what can be gained from a purely            a greater understanding and judgment of
  vertical network so having access to               themselves and a deeper perspective of the
  cross-sector, cross-region information             surroundings in which they operate, and yet
  and a platform to ask questions and talk           this type of networking is often surrendered
  to other leaders is crucial. Fundamentally,        because people don’t see the immediate
  leaders don’t know what they don’t
                                                     link to their own business – or conversely,
  know. Only those with strong and trusted
  relationships will have access to the              because they seek social ties in areas so far
  information they need to be successful.”           removed from their own interests that they
                                                     feel more isolated than ever. They might


  Key Considerations for Leadership networKing:

  1. You get out what you put in – while             4. Master the skill of delegation –
     some perceive networking to be too much            effective business leaders network
     extra work, others feel it is more about           in order to obtain information
     exploiting ‘who you know’ rather than              continually, not just at formal
     gaining actual skills to get a job done well.      meetings. However, it takes time to
                                                        gather the information they need to
  2. Seek out a good role model – a                     meet their goals; relying on informal
     different person’s approach can                    discussions with a great and varied
     put behaviour under an improved                    range of people, that are not
     light and can overcome the ‘who                    necessarily in charge of an issue or
     you know’ negativity; particularly if              task, means that the executive must
     they are a respected character.                    master the skill of delegation or he
                                                        or she will find a million reasons
  3. Find external common ground –
                                                        not to take time for networking.
     establishing relationships is hard, but
     personal interests or networks that can         5. Keep in touch – executives often
     be transposed into a strategic domain              wait until a crisis, or when they
     will help create a natural ‘excuse’ for            need something urgently, to
     getting in touch with senior individuals           network, but the best networkers
     outside our domains; similarly,                    take every opportunity they can
     making use of functional interests                 to give to and receive from the
     or expertise will help (communities                network; a great way to start is
     of practice exist in many areas of                 with a simple request such as
     business, from brand management                    connecting two people or requesting
     to Six Sigma to global strategy).                  an opinion from someone.


                                                                                                        www.criticaleye.net 03
Personal networking can
offer new executives a greater
understanding and judgment of
themselves and a deeper perspective of
the surroundings in which they operate
also feel intimidated by new higher-level         they can preserve their autonomy and risk
colleagues, in spite of common interests.         losing the ability to protect and advance
without linking outside contacts back to the      their aspirations. Our study showed that
firm and the business, the executive will not     many aspiring leaders opt for the latter and
benefit from the true power of networking.        that this choice was frequently rationalised
                                                  as a matter of personal principle.
Personal networking offers the aspiring
leader encouragement in the way of counsel.       Jody worked for a company whose leadership
advisors found through a personal network         she found to be ‘dysfunctional.’ She
need not necessarily be a hierarchical            adamantly rejected utilising her extensive
superior or well versed in that person’s          internal network when her rivals gained from
particular field; the benefit of an advisor       the leadership’s shortfalls. She would not play
is their wider knowledge and experience           ‘silly power games’, and upheld her moral
in business of a general nature. These            perspective. Silly or not, the games cost Jody
individuals can offer a new leader a fresh        the respect and support of colleagues who
outlook on professional matters as a whole.       clearly would not back someone who did not
                                                  defend herself. in the end she resigned.
Take Michel, a recently promoted executive
that we interviewed. when he was told to fix      and she missed a key message: those that
production resources, or shut them down.          network strategically have the benefit not only
He joined a local business association            of influencing those around them with their
and met a lawyer who offered contacts             personal example, but they can actually form
and advice for his dilemma. eventually he         the environment to their advantage. while
was able to contact colleagues within his         this individual rejected such tactics, her rivals
own firm who then acted as mentors and            did not. The shuffling and recruitment of
supported his battle to keep the plant alive.     subordinates, financing and lobbying for key                      Mark Lee Hunter
                                                  allies in peer positions and altering supply and                  Adjunct Professor
Strategic netwOrking                              finance sources can strengthen your network.                      & Senior Research Fellow
                                                                                                                    INSEAD
The talent of being able to identify untapped     the POwer Of PerSeverance
                                                                                                      Mark Lee Hunter is an adjunct professor and
prospects or vital individuals and parties                                                            co-founder of the Stakeholder Media Project of the
is what separates leaders from managers.          Many executives become frustrated when              INSEAD Social Innovation Centre. He is also a founding
Strategic networking becomes a vital              their networks don’t immediately pay off.           member of the Global Investigative Journalism
sustenance, providing the rising leader           it is a developed skill that takes a lot of         Network. His work at INSEAD and as a consultant
with a series of contacts and resources           practice. we have observed people working           for multinational companies centres on the ways
                                                                                                      that organisations gather, use and diffuse information.
that can help to achieve both personal and        at it, who not only develop a knack for
organisational targets. Meeting people with       networking, but who have also learned to like                    Herminia Ibarra
divergent connections, experience, goals          it. Traditionally, professional development                      Professor of
                                                                                                                   Organisational Behaviour
and motivations forces the new executive to       has relied on the idea that successful
                                                                                                                   INSEAD
establish business over operational objectives.   individuals add fresh, but role-appropriate
                                                  talents as they climb the corporate ladder.         Herminia is Professor of Organisational Behaviour
Many turn to management primarily because         However, the transition requires subtraction        and The Cora Chaired Professor of Leadership
they take pleasure in being the boss. However,    as well as addition; creating space for new         and Learning and Organisational Behaviour
advancing in the hierarchy often means            competencies, executives must come to               Area Chair at INSEAD. She is an expert on
becoming increasingly reliant on others, over     depend less on their reliable established           professional careers and leadership development;
                                                                                                      her articles on these topics are published in
which our executives had little to no control.    skills. To accomplish this they must alter
                                                                                                      leading journals. At INSEAD she directs The
This forces leaders to make a difficult choice    their outlook on what to offer and how to           Leadership Transition, an executive programme
– however unwitting it might be. On the one       add value. Over time they will transform how        for managers moving into bigger leadership roles,
hand they can acknowledge their growing           they think and, ultimately, who they are.           and numerous other leadership programmes.
reliance on those around and above them
and build it into reciprocated authority. Or      © criticaleye 2011                                  Contact the authors through www.criticaleye.net

                                                                                                                                    www.criticaleye.net 04

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Leveraging Your Links Why Successful Leaders Network

  • 1. Leveraging Your Links Why successful leaders network By Herminia Ibarra & Mark Lee Hunter, INSEAD Building a diverse network of personal contacts can provide the support, feedback, insight, resources and information that is necessary for leaders to tackle current and unforeseen challenges. This article lays out the value of a ‘three-pronged’ networking approach as a major element of leaders’ professional development www.criticaleye.net 01
  • 2. There is no denying the ‘work’ in networking; complementary to their own and that this people must step outside their comfort was not a distraction from the ‘real work’, zone and into the unknown. The trick is to nor was it insincere or manipulative. look for those personal contacts that will be great at advising objectively, or turn Our study has led to the development of colleagues from nearby operations into three distinct categories of networking, a support system. More than anything – each of which has a role to play at different you may have to re-evaluate your outlook junctures of the leadership transition: towards networking as a whole. • Operational – linking to functional tasks Based on the findings from our interviews with • Personal – linking to individual development 30 executives, we found that most believed • Strategic – developing new their success was built on working hard and business opportunities focusing on the technical skills their jobs required. However, moving into a leadership OPeratiOnal netwOrking role creates new challenges, in particular strategy-making that supported the business Membership to this network is very simple as a whole, and not solely the functional – you are either involved in the job or not. it specialties they had always relied on. involves interacting with functional peers, superiors and crucial outsiders such as Furthermore, our study revealed respondents suppliers, distributors and customers. were had trouble grasping that they would it not for these connections, the executive benefit from interacting with people in roles in question would not be in his or her role. Community Comment David Kneeshaw Chief Executive It is the rapport and mutual Royal London 360 “Personal networking is as much about trust of its membership enjoying the environment as it is about pursuing an objective. Simply being away from the desk, with its attendant that makes an operational network powerful and the minutiae and narrow urgent focus, creates a more open space in which to talk and share ideas. The result is a sense of perspective and rejuvenation of the mind. it is crucial to approach an event with a spirit of generosity executive must work to and hope, not of immediate gain. To network in a mindset where you look for advantage from every conversation will nourish these relationships be counter-productive and transparent to others. networking should be about Operational networks are rarely created by giving and enjoying, not just taking, executives; they tend to come along with to be a worthwhile experience.” the job. it is the rapport and mutual trust of its membership that makes an operational network powerful and the executive must Community Comment work to nourish these relationships. Lynda Gratton, Professor However, operational networking should of Management Practice direct an executive toward the important London Business School knowledge that bigger goals necessitate “Building networks, especially those bigger networks and a fuller perspective. outside your organisation, is increasingly a key leadership skill. a good networker links are governed by routine, short-term juggles a diverse range of knowledge demands. The network’s relations with flows and the value lies in building outsiders, for example board members, reciprocal relationships that enhance this customers or regulators, are those that are flow. Beyond the number of followers or connections you have, you should create directly task-related, and tend to be bounded value for your cloud of acquaintances so and constrained by demands determined at that later you get something back. Your a higher level. But as an executive moves into social network is a community of practice a leadership role, his or her network must re- in the sense that it has been built around a orient itself externally, and towards the future. common shared interest or experience and it nurtures the feeling that you’ve been take alistair, one of our interviewees, who informed by a trusted colleague; a friend.” was unexpectedly promoted by his firm’s www.criticaleye.net 02
  • 3. founder to Financial Director and given a went public. The upgrade was brilliant place on the board. Being the youngest and for his team, but he missed the fact that least-experienced, his immediate response only a minority of the seven-person board was to strengthen his operational skills. after shared the founder’s ambition. alistair then hearing a tip from the founder, he completely realised that his time would have been better reorganised the accounting department in spent getting to know his co-directors. order to hold up in the event the company PerSOnal netwOrking Community Comment Many executives see personal networking Matthew Blagg as an insincere trade of string pulling. This CEO sentiment is often intensified by the idea that Criticaleye personal lives and business should be kept “networking is about forming business very separate. But personal networking is not relationships that will stand the test solely about making use of personal contacts; of time. it would be naïve to think that rather it creates flexible links to individuals executives invest time and energy into with whom we have things in common. networking without the expectation that they will get something back, but it is time to acknowledge that relationship building Often, rising leaders become aware of their is a long-term investment. Furthermore, disproportionately internal and functional potential business relationships are concentration, so they see the benefit all around us, not just at events or in building their knowledge in domains meetings set up for the specific purpose beyond their areas of proficiency. By joining of initiating business partnerships. The professional associations, clubs, and common interconnectivity of today’s business interest groups, executives can widen their environment means it is no longer enough perspectives – both professionally and socially. to network with other executives in the same industry as you. The challenges that face you at the top of the tree go Personal networking can offer new executives beyond what can be gained from a purely a greater understanding and judgment of vertical network so having access to themselves and a deeper perspective of the cross-sector, cross-region information surroundings in which they operate, and yet and a platform to ask questions and talk this type of networking is often surrendered to other leaders is crucial. Fundamentally, because people don’t see the immediate leaders don’t know what they don’t link to their own business – or conversely, know. Only those with strong and trusted relationships will have access to the because they seek social ties in areas so far information they need to be successful.” removed from their own interests that they feel more isolated than ever. They might Key Considerations for Leadership networKing: 1. You get out what you put in – while 4. Master the skill of delegation – some perceive networking to be too much effective business leaders network extra work, others feel it is more about in order to obtain information exploiting ‘who you know’ rather than continually, not just at formal gaining actual skills to get a job done well. meetings. However, it takes time to gather the information they need to 2. Seek out a good role model – a meet their goals; relying on informal different person’s approach can discussions with a great and varied put behaviour under an improved range of people, that are not light and can overcome the ‘who necessarily in charge of an issue or you know’ negativity; particularly if task, means that the executive must they are a respected character. master the skill of delegation or he or she will find a million reasons 3. Find external common ground – not to take time for networking. establishing relationships is hard, but personal interests or networks that can 5. Keep in touch – executives often be transposed into a strategic domain wait until a crisis, or when they will help create a natural ‘excuse’ for need something urgently, to getting in touch with senior individuals network, but the best networkers outside our domains; similarly, take every opportunity they can making use of functional interests to give to and receive from the or expertise will help (communities network; a great way to start is of practice exist in many areas of with a simple request such as business, from brand management connecting two people or requesting to Six Sigma to global strategy). an opinion from someone. www.criticaleye.net 03
  • 4. Personal networking can offer new executives a greater understanding and judgment of themselves and a deeper perspective of the surroundings in which they operate also feel intimidated by new higher-level they can preserve their autonomy and risk colleagues, in spite of common interests. losing the ability to protect and advance without linking outside contacts back to the their aspirations. Our study showed that firm and the business, the executive will not many aspiring leaders opt for the latter and benefit from the true power of networking. that this choice was frequently rationalised as a matter of personal principle. Personal networking offers the aspiring leader encouragement in the way of counsel. Jody worked for a company whose leadership advisors found through a personal network she found to be ‘dysfunctional.’ She need not necessarily be a hierarchical adamantly rejected utilising her extensive superior or well versed in that person’s internal network when her rivals gained from particular field; the benefit of an advisor the leadership’s shortfalls. She would not play is their wider knowledge and experience ‘silly power games’, and upheld her moral in business of a general nature. These perspective. Silly or not, the games cost Jody individuals can offer a new leader a fresh the respect and support of colleagues who outlook on professional matters as a whole. clearly would not back someone who did not defend herself. in the end she resigned. Take Michel, a recently promoted executive that we interviewed. when he was told to fix and she missed a key message: those that production resources, or shut them down. network strategically have the benefit not only He joined a local business association of influencing those around them with their and met a lawyer who offered contacts personal example, but they can actually form and advice for his dilemma. eventually he the environment to their advantage. while was able to contact colleagues within his this individual rejected such tactics, her rivals own firm who then acted as mentors and did not. The shuffling and recruitment of supported his battle to keep the plant alive. subordinates, financing and lobbying for key Mark Lee Hunter allies in peer positions and altering supply and Adjunct Professor Strategic netwOrking finance sources can strengthen your network. & Senior Research Fellow INSEAD The talent of being able to identify untapped the POwer Of PerSeverance Mark Lee Hunter is an adjunct professor and prospects or vital individuals and parties co-founder of the Stakeholder Media Project of the is what separates leaders from managers. Many executives become frustrated when INSEAD Social Innovation Centre. He is also a founding Strategic networking becomes a vital their networks don’t immediately pay off. member of the Global Investigative Journalism sustenance, providing the rising leader it is a developed skill that takes a lot of Network. His work at INSEAD and as a consultant with a series of contacts and resources practice. we have observed people working for multinational companies centres on the ways that organisations gather, use and diffuse information. that can help to achieve both personal and at it, who not only develop a knack for organisational targets. Meeting people with networking, but who have also learned to like Herminia Ibarra divergent connections, experience, goals it. Traditionally, professional development Professor of Organisational Behaviour and motivations forces the new executive to has relied on the idea that successful INSEAD establish business over operational objectives. individuals add fresh, but role-appropriate talents as they climb the corporate ladder. Herminia is Professor of Organisational Behaviour Many turn to management primarily because However, the transition requires subtraction and The Cora Chaired Professor of Leadership they take pleasure in being the boss. However, as well as addition; creating space for new and Learning and Organisational Behaviour advancing in the hierarchy often means competencies, executives must come to Area Chair at INSEAD. She is an expert on becoming increasingly reliant on others, over depend less on their reliable established professional careers and leadership development; her articles on these topics are published in which our executives had little to no control. skills. To accomplish this they must alter leading journals. At INSEAD she directs The This forces leaders to make a difficult choice their outlook on what to offer and how to Leadership Transition, an executive programme – however unwitting it might be. On the one add value. Over time they will transform how for managers moving into bigger leadership roles, hand they can acknowledge their growing they think and, ultimately, who they are. and numerous other leadership programmes. reliance on those around and above them and build it into reciprocated authority. Or © criticaleye 2011 Contact the authors through www.criticaleye.net www.criticaleye.net 04