Increased returns through social capital

July 2002

We operate in increasingly complex environments that require us to apply large amounts of knowledge in our day-to-day work activities.

Because knowledge is continuously changing and evolving, we cannot possess all the knowledge we require at any point in time. How do we deal with this challenge? Current thinking tells us that we should enhance our social capital. We must network, use our contacts, and develop linkages that are of benefit to us, both now and in the future. We must realise that we live in a world of complexity, where we are faced with knowledge overload. That past knowledge and experiences are less likely to be of value when we are increasingly faced with novel and unexpected situations. To obtain knowledge that is relevant, we should tap external knowledge and continually enhance our social capital. Social capital is a learnable skill, however it must be systematically built through networking.

Here are four things we can do to build social capital.

1. Evaluate your networks. We know from research that people have a distorted, incomplete 'mental map' of their personal or organisational networks. We know that people who have good mental maps are more influential and effective as networkers.

2. The network must have variety. The research tells us that similarity is the enemy of networking. Similar people tend to have similar networks. If you have diversity in your network, then you will have greater network reach.

3. Focus on the work and non-work element of your network. The research tells us that many people have networks that focus on work or make a very clear distinction between personal and work life. The most effective social capital accumulators have the capacity to spread the focus of their network. This may include involvement in professional groups, cultural or sporting organisations, community groups, etc.

4. Large diverse networks are effective for getting lots of new information, learning about new opportunities and finding necessary resources. Large networks are not that effective if your purpose is to build consensus or develop a sense of mission. Small networks are better if your concern is building group loyalty, identity and a sense of common purpose.

EFFECTIVE NETWORK BEHAVIOUR

We know that the way you behave during your networking activities is as important as the extent of your network. We can identify a number of rules that you should follow:

Be Open and Prepared: It is important that you are open to ideas, people and opportunities, but you must also be prepared. This requires you to learn the skills to network effectively. Your level of preparation must match the opportunities available.

Be Ethical: The best advice here is that you should treat everyone as equals. Do not be concerned with title, status or prestige. We know that the true value of a network is in the information and support that you derive from it. It is best to understand a network as a level and fair playing field. Do not get involved in the network simply just to get something back. It is recommended that you give for the sake of giving.

Be Proactive: If you require help, the advice is that you should be proactive. In order to get help you must ask for it. Acknowledge the people who help you. It is also recommended that you listen attentively to those who speak to you. It is not effective when you monopolise the conversation.

Be Committed and Circulate: Your level of commitment to the network is important. Networking requires patience, it takes time and you must use the help you get. Everyone in your life is part of your network. This includes your family, friends, neighbours, professionals, suppliers, clients, co-workers, clubs, associations and voluntary groups. Establish their identities, your needs and the resources you can contribute.

HOW TO IMPROVE YOUR NETWORKING SKILLS

Networking skills do not develop by accident. They demand you to be focused and systematic in your skills development. Some of the skills you can develop are:

Research and Planning: You should research networks to identify the ones best suited to you. This requires that you pay attention to news, current events and local developments. Ask questions where necessary and then devise objectives and appropriate strategies.

Communication and Promotion: Your communication skills will determine your overall network effectiveness. Your use of language should be appropriate, concise, open, honest and articulate and most important of all, you must listen. Understand your strengths and how to use them. You must also learn how to effectively express your strengths and promote yourself and your organisation.

Keeping Records: Keep thorough and accurate notes. This requires that you keep lists, write reminder notes about people you met and if you have a business card, use it. You will be more effective when you are organised.

Follow-Through: This is a most important behaviour. If you make commitments to yourself or others, make sure that you follow-through. If you are given a piece of advice, act on it or where you are given a contact, follow through on it.

CONCLUSION

We live in the era of networking. It is an essential skill in all spheres of life and work. Good networkers have clear aims and objectives; they know whom they want to meet and what they want from each encounter. They know the best places to network, believe in the value of networking and have the skills to engage people. They are skilled questioners, have a well-formulated message and know how to keep in touch.