How do networking companies work

Many times, what appears to be unpalatable or unproductive behavior takes on a new light when a person you respect does it well and ethically. For example, Gabriel Chenard, general manager for Europe of a group of consumer product brands, learned from the previous general manager how to take advantage of branch visits to solidify his relationships with employees and customers.

Every flight and car trip became a venue for catching up and building relationships with the people who were accompanying him. Watching how much his boss got done on what would otherwise be downtime, Gabriel adopted the practice as a crucial part of his own management style.

Networking effectively and ethically, like any other tacit skill, is a matter of judgment and intuition. Some successful managers find common ground from the outside in—by, for instance, transposing a personal interest into the strategic domain. Linda Henderson is a good example.

An investment banker responsible for a group of media industry clients, she always wondered how to connect to some of her senior colleagues who served other industries. She resolved to make time for an extracurricular passion—the theater—in a way that would enhance her business development activities. Four times a year, her secretary booked a buffet dinner at a downtown hotel and reserved a block of theater tickets. Key clients were invited.

Other managers build outside-inside connections by using their functional interests or expertise. For example, communities of practice exist or can easily be created on the Internet in almost every area of business from brand management to Six Sigma to global strategy.

If an aspiring leader has not yet mastered the art of delegation, he or she will find many reasons not to spend time networking.

Participating in formal and informal meetings with people in other units takes time away from functional responsibilities and internal team affairs. Between the obvious payoff of a task accomplished and the ambiguous, often delayed rewards of networking, naive managers repeatedly choose the former. The less they practice networking, the less efficient at it they become, and the vicious cycle continues. Henrik, the production manager and board member we described earlier, for example, did what he needed to do in order to prepare for board meetings but did not associate with fellow board members outside those formal events.

As a result, he was frequently surprised when other board members raised issues at the heart of his role. In contrast, effective business leaders spend a lot of time every day gathering the information they need to meet their goals, relying on informal discussions with a lot of people who are not necessarily in charge of an issue or task.

They network in order to obtain information continually, not just at formal meetings. Many managers equate having a good network with having a large database of contacts, or attending high-profile professional conferences and events. But they falter at the next step—picking up the phone.

Instead, they wait until they need something badly. The best networkers do exactly the opposite: They take every opportunity to give to, and receive from, the network, whether they need help or not. A network lives and thrives only when it is used. A good way to begin is to make a simple request or take the initiative to connect two people who would benefit from meeting each other. Doing something—anything—gets the ball rolling and builds confidence that one does, in fact, have something to contribute.

It takes a while to reap the benefits of networking. We have seen many managers resolve to put networking at the top of their agendas, only to be derailed by the first crisis that comes along. One example is Harris Roberts, a regulatory affairs expert who realized he needed a broader network to achieve his goal of becoming a business unit manager. But six months later, when a major new-drug approval process overwhelmed his calendar, Harris dropped all outside activities.

Two years later, he found himself out of touch and still a functional manager. He failed to recognize that by not taking the time to attend industry conferences or compare notes with his peers, he was missing out on the strategic perspective and information that would make him a more attractive candidate for promotion. Building a leadership network is less a matter of skill than of will. But networking is not a talent; nor does it require a gregarious, extroverted personality. It is a skill, one that takes practice.

We have seen over and over again that people who work at networking can learn not only how to do it well but also how to enjoy it. And they tend to be more successful in their careers than those who fail to leverage external ties or insist on defining their jobs narrowly. Making a successful leadership transition requires a shift from the confines of a clearly defined operational network. Aspiring leaders must learn to build and use strategic networks that cross organizational and functional boundaries, and then link them up in novel and innovative ways.

It is a challenge to make the leap from a lifetime of functional contributions and hands-on control to the ambiguous process of building and working through networks. Leaders must find new ways of defining themselves and develop new relationships to anchor and feed their emerging personas. They must also accept that networking is one of the most important requirements of their new leadership roles and continue to allocate enough time and effort to see it pay off.

You have 1 free article s left this month. You are reading your last free article for this month. Subscribe for unlimited access. Create an account to read 2 more. Power and influence. How Leaders Create and Use Networks. Reprint: RC Most people acknowledge that networking—creating a fabric of personal contacts to provide support, feedback, insight, and resources—is an essential activity for an ambitious manager.

To succeed as a leader, Ibarra and Hunter recommend building three types of networks: Operational —people you need to accomplish your assigned, routine tasks. Personal —kindred spirits outside your organization who can help you with personal advancement.

Strategic —people outside your control who will enable you to reach key organizational objectives. The Idea in Practice The most effective leaders understand the differences among the three types of networks and how to build them. Figure out future priorities and challenges; get stakeholder support for them. How to find network members Identify individuals who can block or support a project.

Participate in professional associations, alumni groups, clubs, and personal-interest communities. Identify lateral and vertical relationships with other functional and business-unit managers—people outside your immediate control—who can help you determine how your role and contribution fit into the overall picture.

A version of this article appeared in the January issue of Harvard Business Review. Read more on Power and influence or related topics Leadership , Professional networks and Leadership development. For HBR Subscribers. Follow her on Twitter HerminiaIbarra and visit her website.

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