2. Formerly Information Systems
Research project on social networks
EBIN 2009/2010
Business Plan (EBIN group)
Execution – with several twists and turns
Dissertation: Strategic Networking for
Entrepreneurs
Now:
Benjamin F. Wirtz
3. Meeting 2-3 people at an event and
learning more about their needs and
challenges is far more valuable than
collecting (or giving away) 20 business
cards.
Many sales people get 80-90% of their
business through networking
organizations.
About 70% of all jobs are found through
networking
A referral generates 80% more results than
a cold call
Socially embedded employees are 40%
less likely to quit their job.
74% of all buying decisions are made on a
friend’s recommendation
4. Lecture
Basics of social theory
Why networking is valuable
How to utilise networks
Workshop (hands on!)
Analyse your goals and needs
Check if/how your network can help you
Plan to align your network towards success
Overview
6. Talking to people
Swapping business cards
Selling yourself
The art of making and maintaining
relationships
It’s all about exchange !
Strategic Networking
What is Networking ?
7. Crucial for exchange in networks:
Trust (comes from positive experiences over time)
Perceived value of further cooperation by others
Social capital = value of information,
knowledge and resources, that an individual
can potentially access, because others
perceive cooperation (for exchange) as
beneficial to themselves.
What is Social Capital ?
Strategic Networking
8. How can networking be valuable?
Social
Capital
Goals
Information,
Knowledge,
Resources
Value
Networking
Strategic Networking
9. Four eyes see better than two
Different points of view
New ideas
Complementary information
Examples
Students: Where to get a job
Entrepreneurs: Market insights, feedback
Managers: Moves of competitors, foresights
Benefits (I): Information Input
Strategic Networking
10. Humans specialise
Complementary knowledge, skills
Tacit Knowledge (based on experiences,
awareness)
Hard to transfer, needs a lot of trust and time
Examples
Students: How to write a successful application
Entrepreneurs: How to write a business plan
Managers: How to negotiate good deals
Benefits (II): (Tacit) Knowledge
Strategic Networking
11. You don’t own the world
...and your friends neither
But you can help each other out
“Activate” social capital to get money, time or
goods
Examples
Students: Getting invited for dinner
Entrepreneurs: Investment, website redesign
Managers: Extra staff from another department
Strategic Networking
Benefits (III): Resources
12. “Ideas that spread, win” (Seth Godin)
Visibility (let others know what you need)
Credibility
Search (for resources or knowledge)
Examples
Students: Get jobs by recommendation
Entrepreneurs: Market your product for free
Managers: Get promoted
Strategic Networking
Benefits (IV): Spreading Information
13. Networking by itself has no value at all
Diversity: You can’t do/have everything
yourself
Dunbar’s number: You can’t have more than
(roughly) 150 friends
Cognitive constraint
Strategic Networking
Why a strategic approach?
14. Strategic Networking
What is Strategic Networking?
Aligning your network towards achieving your goals
Strategic
Analysing your needs and haves
Planning your relationship portfolio
Tactical
Planning networking events (which ones and why)
Juggling socialising and working
Operational
The Talking & shake hands part (exchange)
16. Strategic Networking
Strategic Networking Framework
Analyse
- Needs
- Haves
Plan
- Relationship
Portfolio
Network
- Search and
exchange
- Contact and
relationship analytics
17. 1. Define a goal (e.g. succeed with a business
idea)
1. And make a rough plan how to achieve it
2. Define your needs
1. Information Input (e.g. competitors, market
situation)
2. Tacit Knowledge (e.g. how to run a start-up)
3. Resources (e.g. funding)
4. Information Output (e.g. to get a strong partner on
board)
Strategic Networking
Analyse
18. 3. Analyse what you have and whom you know
1. Match to needs
2. Plan A (easy) and plan B (backups or ideal)
3. Is your relationship at the right level?
4. Create your Relationship Portfolio
1. Know your “hubs” (people with lots of contacts)
2. Ensure diversity
Strategic Networking
Plan
19. Use tools to support networking
LinkedIn (find suitable contacts)
Plancast (meet them at events)
Twitter (find out what they are up to)
Reflect if you are on target
HandyElephant
Strategic Networking
It’s all planned – what now?
21. For shy/introverted people:
http://www.slideshare.net/sachac/the-shy-connector
Ground breaking paper:
Granovetter (1973) – The Strength of Weak Ties
For short breaks:
TED.com (e.g. Daniel Kahneman)
Wikipedia: Expected Utility Theory, Prospect Theory
Strategic Networking
Further Reading
Welcome to workshop
Won’t bore you too long with theory - start very basic, get hands on
Me: EBIN student, formerly IS, research on SN
Made a startup out of our business plan, realised how much networking gave me
And wrote my dissertation on StratNet
Why a workshop on this topic?!
Exchange:
versus hierarchies (no search for resources required)
versus markets (lowest price wins)
Network: Knowing what people have & want
Efficiency of exchange depends on relationship quality
Strong (family) weak (
BUT: Something is required for exchange in networks
How many people know what social capital is?
Ask for definitions
SC is granted by others through networking
5 capitals:
Unlike financial, manufactured, SC does not provide value by itself !
Like human capital, but hard to express (PhD vs 5000 friends on facebook – or followers on twitter)
Diversity crucial !
But we tend towards homophily
You don’t know the right question
Text Messaging, Walkman, ...
Note: Different benefits require different effort and levels of trust – i.e. Different relationships
Strategic: Also knowing when needs have to be fulfilled (my mistake – chatted with potential partners, but didnt have anything)
Plan: number your stages
Needs: Dependent on stage
For Delivery plan: , e.g. put post-its per month on it, take away if done
It’s build-measure-learn (set a target and see if it works out)