Networking - How and Why

Are you frustrated with the ineffective activity of attending events touted to be a golden opportunity to meet business people with whom you can do business? The outcome, more often than not, is a hand full of business cards that are put in a drawer with no follow-up from you or the other person.

Entrepreneurs have capitalized on people's naivety on how to reach more clients/customers by turning networking into a business - from BMI to Le Tip and Meet-Up. However, people are not conducting more business or making more money than those who never attend a 'networking' event. The question is, of course, why? The majority of people do not understand the complex psychology of high-net-worth clients, CPAs or other centers of influence.

Networking events are devoid of your most important client relationships. Networking events are stacked with those who do not know how to network with people of influence. Thus, you are meeting people who are only looking to 'sell.' This undermines your credibility as a true professional. You need to consider going back to the old school networking method.

The old school networking method is based on learning the psychology of referrals. You need to learn a set of skills and a process that will help you position your referrals from strength...not weakness. This approach reflects the core attitudes and attributes of top clients. It calms their created referral fears and resonates with their own self-image of intelligence, professionalism and success.

Old school networking begins by connecting with someone who might know the person you need to connect with to achieve a goal, purchase something or gather information.

For example: In 1985, I was on a management and organizational consulting assignment with a major bank in Tulsa, Oklahoma that was going through a merger. My phone rang. The caller introduced himself - "This is Robert Jones (not his real name) I am the President of XYZ bank in Kansas City, MO. Your name was given to me as the best person in Tulsa to contact." (Flattery works, but be cautious. It could come across as disingenuous. Who gave him my name has long ago been forgotten.)

What can I do for you, Robert? I asked. My wife was recently transferred to a plum job in Tulsa. It was a job she wouldn't turn down for her career, so, I am the tag along spouse. I am looking for a new opportunity in banking in Tulsa. I don't need to be, president, head of a division in a large bank is of interest. Our conversation continued. Although, I didn't know of anyone to refer him to, I suggested he send his resume. His resume was impressive. I gave his resume to two division VP's in the Tulsa bank. They both agreed he had an impressive work history and they would keep him in mind if they heard of a position commensurate with his background. Three weeks later, I received a phone call from a headhunter in Tulsa, who I knew before taking the consulting assignment. She called because she was looking for a candidate for a Tulsa bank that needed a new president to do a turn-around. Was I the last person she would think to call? No. Why? Because I work in a large bank, I am in a center of influence in the industry she is hoping to find a candidate. Of course, I told her about Robert Jones. Of course, I wouldn't be telling the story unless it was a home run. Indeed, Robert was offered and took the job two months after his initial phone call to me. August, 1986, I moved to New York, Robert and I kept in contact.

Three years later, Robert called me, because he had done such a good job turning the bank around they didn't need him and his position was given to a division VP, they wanted to give a promotion. I knew the Tulsa manager of the government managed Resolution Trust Corp., organized to resolve the savings and loan debacle. I suggested Robert contact the Tulsa manager. He got a job in Tulsa with the Resolution Trust Corp. We are no longer in contact, he might have retired.

You have heard the cliché, it isn't what you know, it is who you know. Of course, intelligence, skills, talent, experience and reputation are important. The bottom line is, you need to develop relationships with influential people.

If you want to establish a network of people you need to develop a list of twenty names in four categories or those who know others who are influential in areas you need contacts. Twenty names is all you need to have a well organized and honed network. List five names in each area: Personal, Professional, Community and People of Influence.

o Personal: Country clubs, organizations, sports activities, golf, sailing, travel, skiing, hair-stylist/barber (they know many people), etc.

o Professional: colleagues, competitors, suppliers, CPA, lawyer, professional associations, etc.

o Community: Clubs, civic organizations, religious community, chamber of commerce, local business owners - dry cleaners, etc.

o People of Influence: Politicians, University career center, sorority/society, high school/college friends, etc.

o Do research: Google, local newspaper, local business journal, WSJ journal, hobby publications and more.

o Identify twenty people you would like to be referred to - find a connection to get the referral..

o Identify twenty people you have on your referral list to refer people to them..

o Last, but not least, quid pro quo is a highly honored and accepted networking strategy. Use it well..

It has been said that a well designed network means that one needs to make only two phone calls or less - one to someone, who would know the right person to contact, or the right contact.

Although, I would not have considered myself the person for Robert to contact in his job search, I am a commensurate 'old school' networker and I was working in the industry he was interested in finding a position. Furthermore, since I was in Tulsa less than a year, I would say, I was the last person to contact. Yet, I was the one who had the right contact to lead him to the right job, not one, but twice.

If there is a moral to the story, it is this, 'old school' networking works.