Networking: Should you?

Networking, very often, is seen as a "not-so-good" word - if not a bad word. Almost like "sales". Everyone wants to be in "marketing". Sales seems to imply a smooth-talking, sell-anything-you can-and-run-away kind of person. In fact, in my last job (long ago), sales guys were called "Marketing Executives". In hindsight, i think it was to make them feel better. :)
But sales is really what keeps a business going - and real sales involves real people interacting over a real way to solve a very real problem. No amount of smooth talking will keep sustainable sales going.

In my view, in the short-term, markets might be inefficient. But in the long-term, it tends to recognize value (but thats a topic for another post)

Like sales, networking has these connotations of a lot of superficial interactions and parties - but no real substance.

However, if you ask any mid-to-senior level executive about how they got their most recent job or their new deal, a significant part of the answer lies in how their "network" helped out. Network in this context could mean alumni, friends, former colleagues, family etc.

Business communities throughout history have embraced the networking concept - without probably every calling it that. Weddings conducted over days are clear avenues for networking - be it for business deals or prospective partners for your child! Most business communities also clearly embrace the values of supporting their other community members - and seeking their assistance in building their business.

So, why should you network?

- Its a competitive world out there: Competition is not betwee companies or individuals. Its between networks. Network of Company A v/s Network of Company B. Network as defined as the entire set of well-wishers, employees, investors, customers, partners, suppliers etc. All those that can reduce the transaction cost of doing business and hence make the business more competitive.

- Leverages the real value of YOU: You are the sum of your skills, experience and the network of interactions you have had in the past. Only if you actively network, will you bring the real value to the table.

The important thing to remember is that the network that works positively for your recommendation will also work negatively if you don't deliver on your promise.

Next time: How do you go about building a network?

cheers! :)