Understanding the role of relationships in Business

Genuine networking is not swapping business cards; rather, it’s the active process of building and managing productive relationships. Networking is a controversial subject. Just the term itself elicits strong feelings, positive and negative. Some people swear by the practice of networking; others swear at it. But no matter how you feel about networking, a growing body of research reveals that success in business depends on technical competence and the ability to build strong relationships and networks of relationships.

It’s not enough to excel at the technical part of your job. You also have to excel at the art and science of networking. There are myths and folklore about networking that are common barriers to learning how to network well. The folklore arises from misperceptions about the role and importance of relationships in business.

Consider some of the most common folklore and facts:

FOLKLORE: Tough-minded business people don’t consider networking and relationship-building to be important because the impact of these “soft skills” can’t be scientifically proven.

FACT: The benefits of networking can be scientifically measured. Dozens of scientific studies reveal that those who network well are more effective, paid better, promoted faster, healthier, happier—and even live longer.

Consider just a few of these additional facts:

Managers with large, well-diversified networks get promoted faster and at younger ages.
People who find jobs through personal contacts find better, more satisfying, better paying jobs.
People with strong social support networks are less likely to become ill.
Leaders who take charge of new situations are much more likely to be successful if they build solid working relationships.
Strong customer relationships save money. It’s much cheaper to keep an old customer than to get a new one.
Supplier partnerships yield lower costs and better quality products and service.
FOLKLORE: Success in business depends primarily on technical skills, training, and abilities. If you’re good enough technically, you don’t need to learn how to network well.

FACT: Many people think technical expertise is enough, but a vast amount of research shows that it’s not. The most successful business leaders are the best relationship builders, but they’re not necessarily the best technically. Research shows that those who ignore or neglect their relationship-building responsibilities “top out” early in their careers. The main cause of failure for managers who take charge of a new situation is neglecting to build strong personal relationships. As you advance in your career, relationship-building becomes a larger and more significant part of your responsibilities. Those who benefit the most from networking build large, well-diversified networks that include a wide range of internal and external relationships.

FOLKLORE: Networking is somewhat unethical, even “sleazy.”

FACT: Networking and relationships can be misused and abused. Con artists, for example, cultivate trust (or what might be called pseudo-trust) in order to defraud, trick, and swindle. But those who misuse and abuse relationships are always found out. Genuine relationships are based on real trust, mutual understanding, and mutual benefits.

Genuine networking is the process of developing such relationships. It’s the only road to long-run success. Concepts like networking come with so much negative baggage that many people simply reject the idea of managing relationships. These negative associations are much more than unfortunate—they threaten your ability to be successful in today’s business world. Those who succeed in business and life are those who are better, faster, and smarter at building relationships.

FOLKLORE: Networking and relationship-building skills can’t be learned. Some people are just naturally good at it. They just happen to be “people oriented.”

FACT: Relationship-building and networking skills can be learned by anyone. What you need is new information about the importance and power of relationships and concrete advice on how to put this information into practice.

Adapted by Graham Southwell, BNI-NZ, from an original article by Dr. Wayne Baker on www.humaxnetworks.com. Used with permission.