 Identify your business networking objectives: I want to grow my business, obtain professional support, access resources etc.
 Determine the ideal contacts you would need to make and think about relationships that you will have to build.
 Equip yourself with the required skills and techniques to make ideal contacts and build relationships.
 Next, you need to determine where you are likely to find your ideal contacts. Compile a list of different networking groups that are currently in the area, or areas where you would like to do business. Do research to find out about how they operate. Ask other business owners what groups they attend and ask if they will invite you as a guest so that you can find out more about the group. Do they offer what you are looking for? Do they have an opening for someone in your field? Do they allow more than one person offering a similar service to participate?
 Obtain information about the groups’ or organisations’ operating standards and some may even have a code of conduct. Make sure that you are comfortable with it as you will recommend your other contacts and clients to participate in the group or organisation and/or use the member services.
 Next, look at the group owners’ marketing efforts. Do they promote the group in a positive way? Do they have a regular emphasis on new members? Are they genuinely and sincerely interested in your success? Are they mainly focused on collecting attendance or membership fees as well as the promotion of other products and services offered by them? Do they stress loyalty of regular attendance and participation? These are all factors you should consider after you have attended one or two sessions and when you meet with them.
 Certain groups stress the importance of loyalty within the group because of the importance of credibility and trust. Where the emphasis on social interactions is very high you need to be super efficient to make contacts and build relationships. People do business with people they know, like and trust. Remember to have an attitude to “giving and helping others first “.
 Compile a networking budget, including a budget of your time. This will keep you from becoming financially overextended and networking will not become a “burden” on your time as you will see it as an investment in growing your business.

Remember that some groups are more social in nature while others are more formal-business like. It is important that you feel comfortable with the style of the group if you are going to develop the kinds of relationships that will lead to the greatest benefit for yourself and the other members.

Copyright 2010 by Karl Smith
This article may be copied or republished with the following credit:
“By Karl Smith, South Africa’s Business Networking and Referral Coach, Cape Town, South Africa.

First, they are deliberately initiated, actively managed and continuously controlled by the firm, which is impossible or very difficult with organic WOM activities like spontaneous customer conversations and blogs. Second, the key idea is to use the social connections of existing customers with non-customers to convert the latter. Third, to make this conversion happen, the firm offers the existing customer a reward for bringing in new customers.

Whereas leveraging the social ties of customers with non-customers to acquire the latter is not unique to customer referral programmes, their three distinctive characteristics set them apart from other forms of network-based marketing. Unlike organic WOM, referral programmes are actively managed and monitored by the firm. Unlike most forms of buzz and viral marketing, the source of social influence is limited to existing customers rather than anyone who knows about the brand or event. Unlike multi-level marketing, existing customers get rewarded only for bringing in new customers. They do not perform any other sales function (e.g., hosting parties) and do not generate any income as a function of subsequent sales.
Consequently, referral programmes do not carry the stigma of exploiting social ties for mercantile purposes like multi-level marketing does. In most referral programmes, the reward is given regardless of how long the new referred customers stay with the firm.

According to a new study titled, “Referral Programs and Customer Value” (to be published in the January 2011 issue of the American Marketing Association’s Journal of Marketing), customer referral programmes are indeed a financially attractive way for firms to acquire new customers. The study — authored by Van den Bulte, Bernd Skiera and Philipp Schmitt, a professor and doctoral student, respectively, at Goethe-University in Frankfurt, Germany — was conducted over a period of three years and followed the customer referral program of a leading German bank (which remained anonymous) that paid customers 25 euro for bringing in a new customer.

This study addresses this gap and investigates to what extent referred customers are more profitable and more loyal. Using information from a database of 10,000 customers acquired by the bank in 2006 — about half of them through the institution’s referral programmes and the other half through traditional marketing efforts such as direct mail and advertising — the study tackled three questions:

* Do referred customers have higher margins than other customers?
* Do referred customers stay longer with the firm than other customers?
* Do referred customers have a higher customer lifetime value (CLV), the net present value of all the profits a customer generates over his or her entire association with the firm?

An analysis of customer activity from January 2006 until September 2008, a total of 33 months, showed that referred customers indeed generated higher margins than other customers. This difference was quite sizable at first, but eroded over time and came down to zero after about 1,000 days. The average value of a referred customer is at least 16% higher than that of a non-referred customer with similar demographics and time of acquisition. However, the size of the value differential varies across customer segments; therefore, firms should use a selective approach for their referral programs.

“As a customer, I know my bank better than non-customers do. I also know my friends better than my bank does,” Van den Bulte points out. “I have a better idea than my bank about which of my friends would be a good match for the bank, and vice versa. This is the better-matching argument: The existing customer knows both the bank and the prospect, and so has superior information to assess to what extent there is a good fit between the two. Using that information, I only refer prospects who I feel will match well with my bank.”

This “superior match” phenomenon explains why the margins documented at the beginning of the study were higher for the referred customer than for the customer acquired through traditional marketing efforts. Well-matched customers simply generate more revenue at a lower cost to the firm.

Many practitioners, including managers of the bank who made the data available, fear that referral programs suffer from “moral hazard,” where opportunistic customers bring in “deadbeats and other unprofitable new customers just to earn a referral fee,” Van den Bulte states. However, the study shows that the benefits of a customer referral program can outweigh such negatives, making the programmes pay off financially.

However, there are concerns that WOM stimulated by the firm may be substantially less effective than organic WOM in generating valuable customers : (i) targeted prospects may be suspicious of stimulated WOM efforts; (ii) such efforts often involve a monetary reward for the referrer who as a result may seem less trustworthy; (iii) programs providing economic benefits tend not to be very sustainable ; (iv) unlike organic WOM, stimulated WOM is not free, raising questions about cost-effectiveness; and (v) stimulated WOM is prone to abuse by opportunistic referrers.

Why does a study on the financial benefits of customer referral programs make sense now? The recent trend toward viral or social marketing is one reason, but Van den Bulte notes that there is also a general belief that the ROI on traditional marketing has been decreasing. Consequently, companies feel that something must be done to “get a bigger bang for our marketing dollars.” This in turn has put marketers under pressure to quantify the return on their expenditures. “Marketing accountability is a major trend nowadays. One of the appeals of using a customer referral program is that you know exactly how much you put into it and, as our study shows, you can also calculate how much you’re getting out of it.”

This study goes a long way to address the uncertainty about the benefits of stimulated WOM in customer acquisition for managers facing demands to increase their marketing ROI and wondering whether or not to use this method. Small businesses have always used organic WOM to grow their businesses and they will continue to do so, says Karl Smith, founder of Business Networking South Africa. Smith concurs that stimulated WOM can erode trust if the referrers are not transparent in referring their networks for a referral fee. “If I say that I trust you, I say that I know that you will act in my best interest. It’s that simple!” says Smith. “If you simply refer me to a service provider for a fee without taking into consideration my needs, aspirations and values then you are not acting in my best interest. Can I really trust you?”

Copyright 2010 by Karl Smith
This article may be copied or republished with the following credit:
“By Karl Smith, Business Networking and Referral Coach, Cape Town, South Africa. +27 (0) 71 444 2210 karl@businessnetworkingsouthafrica.co.za “ www@businessnetworkingsouthafrica.co.za ”

This meant carving out a niche based on competitive advantages and specific corporate attributes. They crafted and maintained a strategic brand - a unique, useful promise to current and prospective customers - to gain brand equity and loyalty. This was business, after all.

Today, branding occurs at the individual level. But do you want to make a woman feel uncomfortable? Just ask about her strengths. It’s no stereotype: Studies show that women are notoriously bad at promoting their personal brands.

One study, from employee search firm ISR, attributes this trait to the high value women place on relationships and communities. Women don’t speak about their strengths, the reasoning goes, because they don’t want to alienate people who are less successful.

Whatever its cause, this hesitance to self-promote hurts women’s careers. In today’s competitive world the people most vocal about their accomplishments are the ones most likely to get ahead. And by downplaying their accomplishments and deflecting praise onto others, women act like their own worst enemies.

As a former executive and as a business relationship building and personal branding expert working with many women business owners and professionals, I see this behaviour all the time. I’ve also heard countless excuses for why women avoid communicating their own personal brands. Another expert, Kelly Watson, identified the following four excuses which she dubbed as the four myths of self-promotion:

The Bitch Myth - “Self promotion will make me look arrogant.”
Not all self-promotion is shameless. Sometimes it’s essential to a successful career, whether that means reminding a boss of your achievements or publicising the 10th anniversary of your business. But many women have trouble making the distinction between shameless bragging and smart promotion.

The Princess Myth- “If I’m good enough, people will hear about it.”
This myth originates from fairy tales where the princess waits for her knight to arrive and sweep her off her feet. Generations of girls have heard this story. Many grow up believing it’s true. If you work hard and wait patiently enough, someone will eventually notice.

Unfortunately, this only applies to fairy tales. In the corporate world most people are juggling too many responsibilities to notice what others are doing well. This goes double for people with the authority to give promotions and pay raises. And for business owners, simply waiting for the right customers to appear is a recipe for failure. The world is too full of competition for businesses to stay solvent without good promotion. Survival depends upon taking action to get noticed.

The Friends and Family Myth - “Others should talk about my accomplishments, not me.”
Some women assume that others with promote them by spreading positive word of mouth. While word of mouth is a great form of promotion, relying word of mouth without influencing they key messages can be counter productive.

Let’s face it- no one is more passionate about your work than you. No one else knows the depth of your experience and expertise. And no one can elaborate on your unique skills as convincingly as you can. By delegating promotion of your personal brand to others, you’re taking away your best opportunity to demonstrate your value.

The Martyr Myth - “You can’t control what people think anyway.”
When promotion your personal brand makes you feel uncomfortable, it can be tempting to take a “why bother?” attitude. After all, people form their first impressions before you even say a word, so there’s no sense trying to change their minds … right? Wrong!

The Bottom Line

The myths you believe often mask a deeper insecurity about the value you place on what you have to offer. If you don’t fully believe in yourself, you’ll naturally resist stepping into the spotlight. This resistance, plus generations of conditioning to be humble and stand on the sidelines, has left many women unprepared for today’s ultra-competitive business world. To discover and communicate your is not about being fake

Copyright 2010 by Karl Smith
This article may be copied or republished with the following credit:
“By Karl Smith, Founder of Business Networking South Africa , Cape Town, South Africa. +27 (0) 71 444 2210 karl@businessnetworkingsouthafrica.co.za “ www@businessnetworkingsouthafrica.co.za ”

“ Are South African businesses truly ready for a major international event such as the imminent Soccer World Cup?

In terms of popular appeal, the World Cup is by far the biggest sporting event in the world. Leading business and relationship development coach Karl Smith decided to write the book when one business owner told him: “The World Cup is killing our business”.

This pragmatic book considers valuable lessons that can be learned from a survey conducted of professionals across five Central and Eastern European countries to gauge their attitudes and preferences during the 2006 Soccer World Cup on this issue.

The aim of many of the World Cup awareness strategies in Africa seems be focusing on creation awareness of the tourism industry. At the time of writing this book, South Africa had no coordinated national resource to provide guidance for business sustainability during the World Cup.

Research shows that while many companies are implementing no-air travel measures, they aren’t making plans for transport disruptions, absenteeism and other factors during the World Cup. A survey before the 2006 World Cup in Germany suggested planned absenteeism for businesses and the economy as a whole, translated to millions of man-hours of lost productivity.

Buy this book to learn how you can use sport to improve communication, better your management styles and increase sales. Learn how to deal with the ethical dilemma in business gifts: giving or bribery? Major sports events are characterized by sponsorships and other forms of “giving”. Get guidance to ensure operational efficiency and human resources during World Cups as is a critical component of general day-to-day business.

The value of this book transcends the World Cup as the information is applicable for business sustainably during any major event. “I encourage companies to use it as a reference point during their planning meetings and where necessary to rebuild their relationship capital. The book can be ordered at R100.00 (excluding postage and packaging) a copy by emailing your details to karl@businessnetworkingsouthafrica.co.za

About Karl
Internationally acclaimed business relationship building expert, Karl Smith, is a sought-after and compelling self-improvement teacher, author and coach on business networking, referral business, trust, credibility, ethics, personal excellence, personal branding and leadership from the core. South Africa ®, and he is the author of the book: Beyond the Business Handshake: Dare to Build High-Trust Business Relationships and co-author of the book: One Goal, Many Paths. Karl passionately delivers his message and is dedicated to enabling individuals and organisations around Africa to reap the dividends of high trust. With deep insight in human behaviour and business, Karl presents a people centric and principle-based approach to self-mastery. It’s about learning how to invest in people for an extraordinary return. It’s about increasing individual effectiveness to positively impact the speed and cost of business through integrity, honesty, accountability and credibility.

Ends.

Contact Business Networking South Africa CEO: Karl Smith
Tel: 071 444 2210 Tel: 021- 511 0802
Tel: 087 808 9753 Fax: 086 694 6399
karl@businessnetworkingsouthafrica.co.za www.businessnetworkingsouthafrica.co.za

When people hear “Networking” most immediately think of attending external activities; Chamber events, membership meetings and black tie events. Rarely do professionals consider the importance of Internal Networking with those inside their own office walls. Yet, every leader, manager and employee within an organisation represents their own network of endless relationships simply waiting to be discovered. Additionally, business developers and salespeople are increasingly understanding the power of networking, but few bother to network with the people inside their company.

So what the internal networking? Internal networking is building informal relationships between individuals within an organisation. The purpose of the relationships are for seeking help, advice and support. It is a way to increase the impact of each worker’s duties in the organisation, as well as increasing resources for the individual. The more people that the worker is able to communicate with in the organisation; the more information the worker has access to; the more influence the worker may have.

Being an internal networker means you are looking outside your immediate, day-to-day activities and thinking about how you can connect with and create value for others in your company. Many of the same principles apply for both external and internal networking, but there’s a nuance to the internal process that’s unique.

Where Do I Start? The answer is directly linked to why we network. Take a moment to FOCUS and perhaps the best way to do that is by asking yourself the following questions. “What would make my job easier?” or “How can I better support my own goals and/or the goals of my employer or company?” Reflect on some of the following answers and see if you might have similar responses:

“My job would be easier if I could…
• achieve better internal co-operation with other departments.”
• find suppliers who have excellent service standards and competitive prices.”
• be more “in the loop” relative to leading edge technology.”
• quickly source highly qualified employees.
• gain easier access to key decision makers.”

Develop Trust. Knowing is one thing, trust is something completely different. For internal networking to be successful, you must be able to answer the following questions:
• Who can I trust to help me on an important company matter?
• Who can I trust to refer an important client?
• Who can I trust to be a mentor?
• Who can I trust to succeed me when it is time to move on?

Developing trust requires time, energy and a degree of personal risk. It requires connecting with people one on one. It requires sharing one’s own background and stories and showing interest in others. It requires being vulnerable, opening up to others and being real. In today’s hyper competitive landscape, those organisations that embrace and understand the power of internal relationships unleash an incredible force to enhance teamwork, reduce turnover and most importantly expand a company’s circle of influence! Thus, companies should take time to foster internal networking. However, many do not and therefore they do not take advantage of the significant personal connections that can be made by internal networking.

Copyright 2010 by Karl Smith.This article may be copied or republished with the following credit:
“By Karl Smith, fouder of Business Networking South Africa +27 (0) 071 444 2210 karl@businessnetworkingsouthafrica.co.za “ www@businessnetworkingsouthafrica.co.za

Karl’s clients love his highly interactive, motivational, pragmatic and motivational courses and presentations. Book Karl to speak at your conference or to do in-company training today! Have a look at the topics:

• Leverage The Power of Business Networking for Professional and Personal Success
• The Power of The Brand Me Inc
• Relationships for Leadership and Management Success
• Endless Referrals: Building A Referral-Based Business
• Relationships for Stakeholder Management
• Repositioning Yourself For Personal Excellence: Fly With The Eagles
• Networking in a Culturally Diverse Organisation: Enhance Performance, Deliver Results, and Optimise Your Opportunities.
• Authentic Leadership: It is becoming increasingly obvious that new leadership is required in the 21st century to tackle the urgent challenges we face in government, business or public service.

What’s missing? In a word, leadership. Authentic leadership. In the midst of the current global socio-economic crisis, we must ask ourselves, where have all the leaders gone? Where are the other versions of Nelson Mandela former President of South Africa; Barack Obama the President of The United States of America and Warren Buffet, the Chairman of Berkshire Hathaway?

Today your capacity to lead and influence people is grounded in your knowledge of and relationship with yourself and others. So what then, is the 21st-century leader all about? It is being authentic and uniquely yourself. Authentic leaders know who they are. They are “good in their skin”, so good they don’t feel a need to impress or please others. They not only inspire those around them, they bring people together around a shared purpose and a common set of values and motivate them to create value for everyone involved.

Many people have written on what it means to be a leader. Almost everyone identifies influence as the primary characteristic. By definition, this means that leadership and position are two different things. You can have a title and a position of power, but this does not mean that you are a leader. Even people without these things can exert influence and thus leadership. Leadership expert John C Maxwell suggests that “leadership is influence - nothing more, nothing less”. This moves beyond the position defining the leader, to looking at the ability of the leader to influence others - both those who would consider themselves followers and those outside that circle. Indirectly, it also builds character in leadership, since without maintaining integrity and trustworthiness, the capability to influence will disappear.

The foundation of leadership is authenticity. How do we go about expressing ourselves more authentically? Ask yourself two simple questions: “Do our actions originate from deep within ourselves, or are they coming from a more superficial, limited place?” “Is our leadership arising from our character, the essence of who we are?” “Or is it only coming from our persona, the external personality we’ve created to cope with lifes circumstances.” The idea “authentic leadership” originates with the Humanistic School of psychology that emerged in the 1960’s which notes that we cannot help others unless we share ourselves openly and honestly - that we are “real”.

What do the words “authentic leader” actually mean? What truly makes one and why is it worth the effort to become one? There are many different answers to these questions. Goffee and Jones (2005) make the point that a leader cannot define him/herself as an authentic leader. Only the people who experience the leader can ascribe authenticity to the leader. Authenticity is only perceived by others. It is the perception that the leader is real, sincere and defined by honesty and integrity. These authors state that no one can declare, “I am authentic”. That attribute must be ascribed by others. Authenticity, according to Webster’s Dictionary, is being genuine. Genuine, suggests Webster means not being a hypocrite. The following five qualities serve as guidance to make a commitment to the lifelong process of authentically growing as a person in order to grow as an authentic leader.

• Authentic leaders have insight. Sometimes we refer to this as vision, but that usually has exclusive reference to the future. While leaders must have vision, they need more. They need wisdom and discernment. They need to be able to look at complex situations, gain clarity, and determine a course of action. They need to stand firmly on principle, even in the face of opposition.

• Authentic leaders demonstrate initiative. They go first. They don’t sit on the sidelines. They don’t ask others to do what they are unwilling to do themselves. Instead, they lead by example. They are more concerned about acting on good ideas rather than having the ideas.

• Authentic leaders exert influence. It’s no coincidence that influence and influenza (the flu) come from the same root word. Real leaders are contagious. People “catch” what they have. People are drawn to their vision and their values. They are able to gather a following and move people to act. People have a clear understanding of their intent and agendas.

• Authentic leaders have impact. At the end of the day, leaders make a difference. The world is changed because of their leadership. They are able to create real and lasting change. They have the humility to take full responsibility and to serve everyone at the same time. They seek to recognize contribution rather than being recognised for making it.

• Authentic leaders exercise integrity. Not every leader is benevolent. Adolf Hitler was a leader, as was Mao Zedong and Josef Stalin. They had insight, initiative, influence and impact. Yet their lives were not integrated with the highest values. Integrity — or the lack thereof — ultimately determines the quality of a persons impact. “Integrity” comes from the same Latin root as the words “integrated “and “integer”. A person has integrity when there is no gap between intent and behaviour…when he or she is whole, seamless, the same – inside and out. In essence, this is the foundation of authentic leadership: it is this quality which lack in leadership today. The absence thereof results in mistrust and a lack of credibility.

So to be truly genuine - or authentic - leaders require a few things: To ensure that ones corporate actions and rhetoric realigns; to ensure that such actions are meaningful (as opposed to superficial, headline-grabbing actions that don’t take root beyond the organisation’s need for disingenuous publicity); and to ensure that ones public persona and private core are not at odds.

In contrast, most leaders of today’s best-run corporations and government organisations remain silent. Are they afraid that by speaking out they may invite scrutiny of their entities? Although the global trend to effect changes in regulations - to curb unethical leadership behaviour - is appropriate and necessary, they do not address the deeper issues at stake here. It is impossible to legislate integrity, stewardship and sound governance. Somewhere along the way we lost sight of the imperative of selecting leaders that create healthy corporations and government agencies for the long term.

We do not need executives running corporations and government entities into the ground in search of personal gain. We do not need celebrities to lead organisations. We do not need more laws. We do not need more conferences. We do not need more excuses and apologies. We do not need more task teams and disciplinary committees. We do not need more tough talk. We do not need more cronyism. We need new leadership.

We need authentic leaders, people of the highest integrity, committed to building enduring organisations. We need leaders who have a deep sense of purpose and are true to their core values. We need leaders who are more concerned about what is right than being right. We need leaders who have the courage to build their organisations to meet the needs of all their stakeholders, and who recognise the importance of their service to society.
The general public must stop playing a role in encouraging this inauthentic leadership as well. In idealising high-profile personalities that ran companies - wrecked by corporate scandals and vote questionable individuals into power, we make them into heroes. Search committees and voters alike fall into the trap of choosing leaders for their style rather than their substance, for their image instead of their integrity. Given this way of doing business, why should we be surprised when our leaders come up short? It is always exciting when our most urgent need and our greatest opportunity coincide. In both the public and the private sectors we have an urgent need for great leadership. Not just any old great leadership, but authentic, great leadership.

Copyright 2010 by Karl Smith
We acknowledge various experts. This article may be copied or republished with the following credit:
“By Karl Smith, Author: Beyond The Business Handshake: Dare To Build High-Trust Business Relationships” Cape Town, South Africa. +27 (0) 71 444 2210 karl@businessnetworkingsouthafrica.co.za www.businessnetworkingsouthafrica.co.za”

Before, very few businesses were aware of networking as a formal way of developing a business or to build in-company or stakeholder relationships. Chambers of Commerce and the AHI ran popular events; meanwhile, Business Network International (BNI), the world’s largest networking organisation was well established in this country, encouraging people to be aware of the virtues of getting out of bed before 7am to do business. Beyond Chambers of Commerce events, the AHI and a few independent groups, networking had a very low profile. During recent years the cocktail function image of networking has devalued its effectiveness to schmoozing. Today we are operating in The Network Economy and it will underpin the global business environment for years to come. Networks will provide unsolicited benevolence which brands will not understand and trust is emerging as the defining characteristic (asset) in this economy. For instance, having cohesive face-to-face networks made employees in one organisation 30% more productive, says MIT researcher Alex Pentland. Having extensive personal digital networks resulted in only a 7% productivity increase. (”How Social Networks Network Best,” Harvard Business Review, February 2009). To make a bigger difference in your business or to seize opportunities you will have to collaborate with others. But what are the networking trends for Africa in general and South Africa in particular?

1. Firstly, there seems to be consensus amongst economic commentators that the economy IS going to improve. This isn’t a “networking” issue, but it IS important. Have faith. Look for opportunities, especially relationships that can be established around the 2010 FIFA Soccer World Cup. Remember that the world is coming to Africa and the rest of Africa is coming to South Africa. The recession has highlighted that relationships (not just client numbers or contacts) are crucial to stay in business or to find a job. Focus on what you do best. You will have a better year, but you need to focus on solutions.

2. Online social networks will continue to be the buzz words and it will grow in prominence. However, consider this . . . digital schmoozing will continue to cause frustration over which forums to join and how to convert that technology into viable business opportunities. To successfully leverage your social networks you need to really be active in your communities, ergo it is best to have power accounts on a few social media sites rather then trying to manage many of them across multiple networks. Find your niche. Educate your on-line networking members on how to leverage the forum otherwise it will just be another virtual listing of a profile.

This is an emerging field, and much of it will be established over the next few years. In considering joining groups think about your overall strategy for personal and business success. Many web developers will seek to become experts in this arena as clients will expect them to be authorities in this arena. Be careful. Do research before you dig into your pockets and request success stories. Go as far as contacting references.

3. Companies, small and large, need to create a social media strategy. Social media is here to stay. The best way to define social media is to break it down. Media is an instrument of communication, like a newspaper or a radio, so social media would be a social instrument of communication. A new study from the Marketing Executives Networking Group reveals most marketers are still in the early or experimental phases of adopting and measuring social media.

Like many other skills, the only real way to effectively apply a new strategy is to get the knowledge and just do it. What’s your plan? Oh . . . you don’t have one? Big mistake in 2010. Don’t know where to start? Do a little research. Begin with the End in Mind. Strategy isn’t the goal. It’s the path you plan to take to get there. Before we go too far down any one path, we should ask some questions:

What are your personal and business goals? Are your customers likely to be online? Note that many people are online these days, but it might be that you have a product or service that isn’t as frequently purchased via the web. What’s your story? Are you ready to handle negativity? Platforms like blogs and videos allow for negative comments, and some company cultures aren’t ready to engage with those opinions. How will engaging users via social media integrate into your overall marketing/communications/research/knowledge strategy? How will you incorporate this into people’s daily jobs? How will you measure results? How long are you willing to give it a try? What’s your willingness to experiment, take risks, and adjust your plans? If you know of any good experts out there who can help in this area, then please let me know.

4. Word-of-mouth. Despite impressive growth in the business, word-of-mouth will continue to be used mainly by most small business. Why? They don’t have the marketing and other resources to increase market share for various reasons. Most large corporations will continue to ignore the total cost (human resources: recruitment, selection and training + marketing + other opportunity costs) to business as they underrate the influencing power of individuals among their networks. I encourage you to invest in networking training so that you can reap the full benefits of networking as a business skill.

5. Victims of retrenchment will become active in networking groups (both face-to-face and online). Many people have lost their jobs. A number of business networking organisations have noted that within a few months of an increase in unemployment rates, there is almost always an influx of new members into networking organisations. I have also seen a surge in the formation of new networking groups in South Africa and a number of individuals from other African countries have interacted with me to provide guidance in starting networking forums. I am confident that networking organisations will continue to experience an influx of new members in 2010. What is their challenge? Read point 9 below!

6. Women will lead the way. The business landscape has now changed dramatically and more women are starting businesses and occupying positions of power. Based on the audiences addressed to date and my current clientele more women (entrepreneurs, managers and leaders) will invest in networking (business relationship building) education because they understand that it is highly prized business and professional competency. Read point 9 below for more about my predications for women in networking.

7. We will begin to see more of an interface between face-to-face and online networking opportunities. Online networks will do things to promote face-to-face opportunities, and face-to-face networks will begin to integrate online networking more effectively into their programmes.

8. We will see the slow death of the “one-way” website. I told my web developer a while ago that I don’t have a website - I have an information tool, a business resource, a communication and marketing tool. As business owners get to grips with social media and online networking more and more, companies will create websites that operate in two directions. They will not only provide information to their customers but will also seek feedback from their customers. Blogs, interactive newsletters, social network sites, consumer feedback groups . . . all of these will continue to grow in importance for companies.

9. Face-to-face networks (networking organisations) will continue to grow, IF they stay true to a fundamental mission of helping people growing their businesses. If they use it for marketing or to make money, then it will die a quick death. I am predicting comfortably that more women networking organisations will be formed, magazines and other services providers focusing on women clientele will incorporate networking (online and off-line) as a product, marketing or information sharing forum. I am encouraging owners of independent women networking forums to cooperate because therein lies the power of authentic networking.

10. A strong network of professional contacts will become vital. Professional network is a term that describes the professional contacts a businessperson or professional may have. Industry bodies, member associations, professional organisations will be challenged to address the needs of value-driven members. Why? Value-driven members seek support and benefits from their perspectives based on their realities. I predict that these organisations will put a greater emphasis on “networking” as a value proposition. However, they will face competition in attracting and retaining members because of the increase in the variety alternative networking forums.

Don’t wait on your organisation! Begin by constructing a database of members and other people you already know who might assist you. Concurrently, think carefully about the value each of these individuals brings to your networking group. You must be committed. You aren’t networking if you’re out for instant gratification. Remember “networking” is a professional and business competency…most people are not natural born networkers but they can acquire this vital skill.

11. Relationship building skills will accelerate as a requirement for job seekers or if you want to climb the corporate ladder. Top executives such as Chief Financial Officers, Chief Information Officers, Board members etc are now required to proactively create and nurture relationships to help the business to uncover the best opportunities. More and more positions advertised in printed and other media will mention requirements such as “the ability to network”, “must have a strong network”, “the ability to influence others” “relationship building” etc. A large section of the generation that grew up during the techno era will be in sales, leadership, management and other positions where they must interact and influence people. They will face many people challenges and Africa will have a dire shortage of relationship building skills.

12. Companies that succeed in 2010 will remain agile and will focus on relationships. Technology is a tool. Relationships are king when it comes to networking. Companies who are creative in using tools to enhance the relationship building process will be the leaders in a company networking programme. More leaders, managers, entrepreneurs, business developers will invest in relationship building because they understand that all successful people have one thing in common - they understand that networking is nothing else but relationship building. Private Bankers and Financial Planners must note that relationships will distinguish them in a highly competitive market! Don’t be surprised if you see big corporates and other organisations re-opening local branch offices again!

13. Networking isn’t the best way to job hunt. It IS the job hunt and job placement competency. If you’re in a job search, you know that networking is by far the most effective way to find what you are seeking - and that even applies to getting noticed by a recruiter. Fellow networking expert Anne Baber was doing a workshop for job hunters, she asked, “How many of you spend more time on-line than on face-to-face networking?” Most of the 80+ attendees raised their hands. Oops! Only 7% of jobs are found through the internet; more than 68% of jobs are found through networking. I predict that face-to-face networking will remain the most effective tool to find a job and the most cost effective tool to find the right candidate for the right position at the right company.

Do you know how ready your network is to help you to find a job? Answer “Yes” to the following 5 questions test their readiness.

1. I attend at least 75% of the activities/events/programs of my professional association and take a visible role.

2. I am in touch with 10 key contacts regularly to update them on my successes (and to find out about theirs).

3. I’ve reached out in the last month to build a relationship with several people who are outside my regular circles.
4. When someone I know is laid off, I immediately get in touch and focus on learning as much as I can about that person’s expertise, so I can refer him/her to my contacts.

5. I’ve identified twelve organisations that hire people with my expertise and am talking with others in my network to find contacts in those organizations.

As you talk with a contact, ask, “How would you describe what I do?” The person who can give a vivid, accurate example of what you’re good at, is a valuable contact and more likely to pass opportunities along to you. So, continue to update contacts with stories about your recent successes and accomplishments.

Well, there it is. Those are my predictions for 2010…and beyond - say 5 years. What do you think of these ideas AND what, if anything, would you add to these business networking predictions? To comment on this article , send me a networking or referral question, share a tip that works for you, tell me about other referral success, or suggest topics for future Networking/Referral Minutes, send an email to me at karl@businessnetworkingsouthfrica.co.za

Copyright 2010 by Karl Smith
This article may be copied or republished with the following credit: ” Adapted from www.NetworkingNowBlog.com by Karl Smith, Author: Beyond The Business Handshake: Dare To Build High-Trust Business Relationships” www.businessnetworkingsouthafrica.co.za karl@businessnetworkingsouthafrica.co.za

I am sure that if you are a new entrepreneur, consultant or even a full-time employee, who have had a similar experience, you will understand the nightmare which such cause in your life! As a self-improvement teacher I never really had the proper credentials to help people to really believe in themselves when their livelihood is threatened. After reflection on my options at hand I decided to see the experience as a challenge to test my own conviction in what I believe and what I teach others. I often say in my talks that it is one thing to know the way, it’s another to show the way and it’s another to go the way. I received the expected call at 11h00 and I enjoyed the good news. Guess what? I found the project through a relationship I have built two years ago and just as I was about to leave my office, I received another call from Johannesburg: South Africa for a telephone meeting to discuss another project. So this newsletter is dedicated to all of you who have received similar bad news. I recently told a delegation of women leaders from across Africa at a conference that winners attract winners and success attracts success. If you want to attract the right people then you must work towards becoming a winning magnet. Here are some tips to help you move from the mindset of a “survivor” or an “economic causality’ to that of winner:

1. Mourn your situation and acknowledge that you have a challenge. If you deny it, go to bed and hope it will be gone tomorrow, then you cannot do something about it.
2. Recall all your inner resources: your self- belief, tenacity and courage.
3. Reconfirm your vision for yourself and those you care about.
4. Problems come our way in two manners: It is brought into our lives without being asked for or in most instances it is the result of our own decisions. I am convinced it forces us to see what we are capable of achieving in life. Without problems would we ever know our full human potential? Ask yourself: What have I learned? What will I do differently if I can do it over again? If the decision you have taken is the origin of the problem, then change direction. Take a different decision to get a different result!
5. Follow Stephen Covey’s – author of 7 Habits of Highly Effective People - advice. Focus on your sphere of influence. What can you do to influence the matter in a positive manner? If you focus on the problem then you will get more problems.
6. State the solution and take action to implement the solution.
7. Review your Board of Directors – your personal and professional advisory board are the people in your network who must guide you, advise you, mentor you and nourish you. Determine if everyone is adding value to your life. In my keynotes, I suggest that people must have allies in their network; they must have a Board of Directors. Jim Smith Jr, a professional speaker in America, calls it your dream team and he notes that membership should be sacred and valued. Here are some of his tips to cope with creditors:
7.1. Keep your creditors up-to-date regarding your plans to bring in revenue
7.2. Prioritise your debt and pay what needs to be paid
7.3. Distribute your funds amongst creditors
7.4. Take control of conversations with creditors, and refer to your current financial situation as a temporary bump in the road
7.5. Maintain a positive mindset. You will instill confidence in your creditors when your voice sounds upbeat. No one wants to attend a “tension convention”.

Don’t go back to your problems because it will not be the same problem. As you dwell on the problem you add baggage to it and it becomes a bigger problem. Don’t recall the problem. If you have to do so, recall the steps you have taken to make you a better you. If the problem is as a result of what someone did, then face and address it. If you can resolve it, then do it but don’t treasure and talk about it again. With my new project contract and a number of speaking engagements confirmed for next year I am confident that my best is yet to come in 2010. I wish you great holiday season and wonderful 2010. Remember 2010 is Africa’s Largest Networking Extravagancy. Have you planned your networking strategy?

I’d love to hear from you. Tell me via karl@businessnetworkingsouthafrica.co.za how you deal with problems or how you made it through the tough economic times.

Similarly, neighbours to South Africa and Kenya in the north have launched their campaigns to reap from the World Cup tournament. In short, the aim of many of the World Cup awareness strategies in Africa seems to be focusing on creation awareness of the tourism industry. Local organizers expect 450,000 overseas visitors for the event with an estimate that the economic benefit to South Africa could reach $7 billion. In terms of popular appeal, the World Cup is by far the biggest sporting event in the world. This spectacular and great extravaganza will take place in South Africa and the first game of the Soccer World Cup will be on 11 June 2010. Surely one cannot undervalue the long-term benefits long after the greatest show on earth is over? But how many local and other businesses on the African continent have considered the potential quality contacts they can make during this period to leverage in future?

It is my humble, and perhaps naïve opinion, that most local businesses are only focusing on the cashing in opportunities during the period around the World Cup. How many of them are taking a long-term view of the potential benefits to be derived from the thousands of overseas visitors? How many are actually training staff and preparing themselves to do business “unusual” so that foreign clients can rave about their experience whether at a guest house, hotel or at the stadiums. How many of us realise that among these visitors may be individuals who want to use their stay for business purposes? How many of us understand the power of word-of-mouth and that even if they are not directly interested in business ventures, chances are that someone in their own country may enquiry about their experiences and impressions?

Understanding the 2010 World Cup environment will help businesses leverage these opportunities more effectively to generate new business and build their profile in the local and international marketplace says Smith. The event provides Africa with the opportunity to make contact with people from across the globe in one country. Have we considered the potential networking benefits for our businesses? If you haven’t done so yet, should you not place it high on your agenda? We will have many local gatherings from organised dinner events to informal braai’s and we are going to find ourselves outside our normal business environment. So what is my point? We are going to meet potential prospects, funders, decision-makers, collaborators, people who can open doors and so much more. Many of us cannot afford to go and meet people elsewhere in the world, now the world is coming to Africa. What a great networking opportunity! The question we need to ask is what South Africans and Africans in general are doing from a relationship building perspective to leverage the host of networking opportunities? “I am not referring to attending business breakfasts and other opportunities to be seen”, Smith says. “I am saying that you know your business and personal goals and that you understand the value”.

The ability to develop and maintain a broad network of “business friendships” is a critical skill for every entrepreneur, business developer, or company leader says Smith. There are three fundamental types of networkers: Givers who give altruistically; Takers (we’ve all known some) who only engage in conversation, call or email when they want something; and Investors who see their personal, functional and strategic relationships as their most valuable asset, and consistently aim at more effectively identifying, building, nurturing, and leveraging those investments for a quantifiable return on those relationships. Which one are you? Giver, Taker or Investor?

Trust is a keystone of business-to-business relationships says Smith. Research conducted by The Economist Intelligence Unit 2008 on the role of trust in business collaboration shows that people who want to collaborate want first and foremost for their partners (individuals and organisations) to have integrity (i.e. be honest and ethical). It further suggests that it is quite likely that an individual who does not inspire trust has the power to erode trust in their entire organisation. So what then are the key skills you or your company’s representatives would need to acquire to move from making contacts to building relationships? The ability to inspire and build trust. It is also important to remember that networking to make new contacts may not always need a specific commercial imperative. Since Africa is geographically remote from America, Europe and other countries, it is vital to form relationships to keep abreast of new and developing business trends. And these ongoing interactions help to maintain trust and confidence in the relationship. Smith cautions networking and conference event organizations as well as SMMEs not to infringe on FIFA trademarks as they might then be liable for prosecution.

Why don’t you drop me a mail via karl@businessnetworkingsouthafrica.co.za to tell me about your networking and other international business relationship building challenges?

My new keynote “Relationships for Leadership and Management Success” launched in Cape Town last month received accolades. Most of the feedback underlined the “passion” the audience has experienced during this presentation. Why was I able to speak with passion in offering them a step-by-step process to build profitable relationships? The answer is simple! I have burnt my fingers because of my fundamental belief that people are worthy of trust. I remain convinced that all people are worthy of trust but I learned one needs to be aware of understanding the kind of person you are dealing with and looking at their track record before you just jump into the relationship. Stephen M.R Covey calls it a balance between your ability to analyse risk -good business judgment- and good people judgment - including instinct and intuition. Allow me to focus my attention on “trust and micro-management”. I have always been an opponent to micro-management because micro-managers can only take their companies as far as they themselves take them. They run the risk of driving away their best and most talented people.

In business management, micro-management is a management style where a manager closely observes or controls the work of his or her subordinates or employees. Micro managing may make you feel in control but in reality you are only hurting yourself and the company. It only limits an employee’s ability to be innovative and creative.

Signs of micro-management: What follows are some signs that you might be a micro-manager - or have one on your hands. In general, micro-managers:
• Resist delegating;
• Immerse themselves in overseeing the projects of others;
• Start by correcting tiny details instead of looking at the big picture;
• Take back delegated work before it is finished if they find a mistake in it; and
• Discourage others from making decisions without consulting them.

When a manager, director or other executive tries to micro manage every person and every project, productivity is lost. There is simply no way around it. An effective manager is responsible for multiple projects and many people. When he tries to exert too much influence over too many things, he can’t help but to lose focus on the bigger picture. As attention becomes focused on one aspect of the business, the inter- relationships and integration of projects become lost in the fog, or worse, on-going complementary projects are changed, and forced to fit with the project the manager is detailing. The higher the level of management, the more dangerous this becomes. If a CEO or COO becomes obsessed with production issues, he may loosen his grasp on things like sales and marketing or operations. By the time he fixes the production issue the point has become moot because sales have dried up. .

So now you’ve identified micro-managerial tendencies and seen why they’re bad. What can you do if you know you’re exhibiting such behaviours - the best way to build healthier relationships with employees may be the most direct: Talk to them. It might take several conversations to convince them that you’re serious about change. Getting frank feedback from employees is the hard part. This means giving your employees the leeway, encouragement – and resources to succeed. Focus first on the ones with the most potential, and learn to delegate effectively to them. If you lack trust in your employees remember the statement - “Employees won’t start trusting you until you start trusting them”.

Why don’t you drop me a mail via karl@businessnetworkingsouthafrica.co.za to tell me about your challenge to build trust?