Relationship networking: The Next Challenge for CFOs and Other Top Executives

In this picture: Karl Smith takes members of The South African Institute of Chartered Accountants through his pragmatic, motivational and interactive "How To Make Your Contacts Count" presentation. He offers a step-by-step guide for creating, cultivating and capitalizing on networking relationships and opportunities.  Accountants, financial planners, entrepreneurs, job-seekers and others will find all the networking help they need to supercharge their careers and boost their bottom lines.

Business networking is about making real connections with real people in order to build long-term, mutually-beneficial relationships. Networking is important because, in spite of the growing use of technology and the internet, people still do business with people. Business is personal - people help and support people they know, like and trust. Networking transactions are founded on reciprocal relationships based on trust. Networking results are derived from the network taken as a whole rather than from a specific individual, product or business unit.

The premise of relationship networking is "I'll help you and you help me; we'll face problems together that are difficult to face alone". Successful networking provides a competitive edge and creates a new type of wealth called Relationship Capital. Relationship Capital is a measurement assigned to people, products and business units based on outcomes of the relationship interactions between them, and the interactions they have within themselves that are observable by others.

Relationship Capital can be earned, lost or utilized by people, products and business units. While it has no direct link to money, it may be utilized to create financial capital based on the perception of its holder's value in the marketplace; for instance a person’s Relationship Capital may be taken into account by potential employers, business partners and investors. It may be a factor in a job promotion, pay-for-performance arrangement or retirement bonus.

Companies long ago began forming relationships with customers, suppliers and competitors. Top executives such as Chief Financial Officers, Chief Information Officers, Board members etc are now required to proactively create and nurture relationships to help the business to uncover the best opportunities.

Top executives are in ideal positions to interact with strategic “centres of influence” such as individuals whose opinions can cause others to buy products or services, increase company visibility, help the company to stay on the cutting edge and so forth.

At first top executives were hired for their technical and people management skills. But few were involved with strategic and measurable relationship networking. Today, it is a common criterion for top executives to demonstrate that they have the ability to network. Today, technical and business management information is important but knowledge to maximise relationship networking is now vital.

As top executives move further into the Relationship Economy, he or she will need to remain on top of the stakeholder or customer communications, collaboration, consensus-building, teamwork and every other aspect that contribute to the company's Relationship Capital. Will every top executive become a relationship capital leader through networking?

Of course not. Some will have no interest in strategic networking activities which are measured, while others may find it hard to acquire these vital soft skills required to influence a dynamic relationship network. Fortunately, some are already on the high road to the Relationship Capital, involved in strategic networking initiatives, for example.

While investing and building in their company’s network, they will find that no matter how hard they work to establish and build relationships, a simple fact of human nature dictates that they will naturally hit it off with certain people, finding common goals, interests and reasons to connect.

This is not to say that you should give up on individuals less inclined to form a trusted relationship, but the amount of time you dedicate to such communications will define the potential for a successful connection. Smith says that building and expanding your network requires a plan or set of processes that you can follow repeatedly.

Copyright 2016 by Karl Smith

Karl Smith is business networking, personal branding , LinkedIn and résumébranding thought leader, author, coach, writer and founder of Business Networking South Africa.  In a global economy that is becoming increasingly disconnected, Karl Smith has attracted speaking and training engagements from clients such as ABSA, Standard Bank, SAICA, SAIPA, Sanlam, Old Mutual SA, IRBA and many more in driving growth through unique return on their strategic relationships and personal reputation building. 

Karl advocates the phenomenon that relationships and reputation are the greatest off balance sheet asset any organizations possesses, large and small, public and private. He is the author of several books including Beyond  The Business Handshake. Book Karl to inspire your audiences or teams to network more productively and build their personal brands via 0714442210 or [email protected] now!

Follow Karl on twitter@networkingguysa for daily inspiration.