2010 is here (and many are glad that 2009 is over!), and it’s time to focus on the future. Has 2009 been the year networking has grown up in South Africa? There certainly seem to have been more changes in the last 24 months than any comparable period in the last decade.
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
