The Power of Networking: Why Your Alumni Network is Key to Success

Reid Hoffman, the co-founder of LinkedIn, said that your network is your most valuable asset. Whether you're searching for a job, a business partner, a mentor, or a professional of any background, you will have no difficulty realizing the power of networking or connections. In recent years, you may have noticed a barrage of connection requests from unknown individuals on LinkedIn (or any social media platform). In today's Networked Age, who you know and how you engage with them—social capital—often provides a greater advantage than just what you know— career capital. While both social and career capital are essential and complement each other, the pressing question is: why has social capital, or networking, become so crucial to succeed in this networked age?

The famous French sociologist Pierre Bourdieu gave the concept of social capital. Born in 1930 in a small village in Southwestern France. Bourdieu came from a modest background, but he was able to study at one of the most elite institutions in France. He observed that people from privileged backgrounds with access to elite education had better social mobility than those from less privileged backgrounds.

He noticed that students from privileged backgrounds performed better academically and attained higher social status, not necessarily because of their natural abilities but because of the cultural and social resources they possessed. These social networks provided additional advantages to those students in all aspects of life. This led him to develop the concept of social capital as a distinct form of capital that individuals could accumulate to improve their social status and position.

Social capital refers to the benefits and opportunities one gains from being a part of a social network, group, or larger community. Bourdieu believed that social capital is inherited and not equally accessible to everybody. Though the idea originates from his observation of prevailing social inequality in French society at that time, but it has been a great framework for understanding the role and importance of social networking.

The very foundation of B-Schools hinges on building a strong and extensive alumni network (for some, it may be a privileged one). Where you come from (institution) often influences where you will go (destination). While this is not always the case, it is generally true. Recently, LinkedIn ranked the 100 best business schools around the world based on five criteria: hiring and demand, ability to advance, network strength, leadership potential, and gender diversity.

The report highlights key aspects of networking, including connection growth rate, connection intensity, and quality. Fostering high-quality connections is crucial in today’s rapidly evolving environment. With AI, Generative AI, and automation drastically changing market dynamics and job prospects, it is essential to build a robust network of peers who can guide and support you in navigating this complex and challenging world.

However, having an extensive network alone may not be helpful. The true value of a network lies not in its size but in how readily you can access and engage with your connections. How you engage with peers and reciprocate in the hours of need. Networking is not about just connecting people; rather, it's about connecting people with opportunities, and that’s how one can succeed. Albert-László Barabási, a renowned network scientist, in his famous book Linked, said that success in a connected world is based on your ability to leverage your social and professional network.

Hence, the chances of leveraging opportunities are higher when you have a diversified network. One should aim to build connections with peers from different institutions, sectors, and professions. This diversification provides access to a wider range of ideas, opportunities, resources, and the various skills needed to thrive in today’s dynamic market. Alumni and professionals have a greater responsibility to offer support to juniors or anyone in need. Your success is often linked to helping others succeed. As Adam Grant says, "The more I help out, the more successful I become." He promotes a "giver" approach to networking, where helping others selflessly fosters a strong, successful network. Let’s work together to create a robust network so that when the chips are down, you can rely on the invisible hand of the marketplace - which is your network.

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