Investing in Relationships....the long term rewards

I attended the Hertfordshire Institute of Directors 'Hert-y Breakfast' this morning. The guest speaker was former BBC foreign affairs correspondent and independent MP Martin Bell, aka 'The Man in the White Suit'.



The talk was fascinating, with challenging views on the war in Iraq and Afghanistan, sleaze in Parliament, the quality of our politicians and electoral system and standards in journalism.

In terms of networking, one thing that Martin said jumped out at me. I've often talked about the dangers of preconceptions at networking events, looking at people and asking yourself how they can help you. To often we write off people without getting to know them, thinking that their business is too small, they are too junior within a company, they wouldn't be able to afford us. Not only is this limited thinking, ignoring who they might know or influence, it is also short term thinking.

Martin Bell's career, and his ability to get the inside track on what is currently happening in the world, has been profoundly influenced by the connections that his has made, and developed over the years.

"The young officers I knew when I reported on the streets of Belfast in the 60s and 70s are now Generals and retired Generals, and they tell me things they wouldn't tell a young reporter.

"The second and third Secretaries I met in Cambodia and Vietnam are now Ambassadors and ex-Ambassadors, and they tell me things they wouldn't tell a young reporter."

Whether you are chasing a story, chasing a career or chasing new business, the relationships that you make, nurture and develop can make a huge difference for you. You can't necessarily measure the strength of your connections based on the immediate benefits you derive from them, in many cases you need to invest in a relationship over a period of years before the return becomes apparent.

It's who knows you...

In his Nesta Connect Blog at the end of January, Roland Harwood talks about the importance of the 'reputation economy'. " I believe that we are moving from a knowledge economy", says Roland, ..."to being a networked economy, where organisations and individuals create value primarily through their relationships and networks."

This transition should be a key area of focus to business and organisations of all sizes. Where previously attempts have been made to secure and protect intellectual property within a company, we are now in a position where relationships hold the true value.

I met with a Sales Director this morning where we were discussing how his team could build stronger, and deeper, relationships with their clients. The key to creating more and more value from their customers lay in developing a range of strong contacts within the organisation, insuring against future changes of personnel.

Speaking with one person in an organisation will limit potential ideas and opportunities. As you build your reputation within a client's organisation, either personal or as a company, the greater your standing becomes and the more opportunities come your way. Developing your network within that company gives you the opportunity to learn more about their problems and issues and be more creative in the solutions you provide.

True value now lies in the relationships you build. As Roland says, "it's not what you know, it's who you know". Well, it's also who knows you, and individual profile and reputation becomes increasingly important.

Are people becoming more important than expertise and imagination? Roland ventures "the best idea in the world will go nowhere if the originator is unpleasant or impossible to work with".

What's most important in your organisation? And where do you invest your time?

The XBOX story by Tim Sanders

How much interest do you show in the people around you? Have you thought about how powerful it is to interact with people personally as well as professionally?

Watch this powerful video from Tim Sanders, author of Love is the Killer App.

You may not come across such dramatic circumstances but hopefully this will get you thinking.

It did me!

How Important is 'USP' in the Relationship Economy?

Twice in the last fortnight I have been asked by people how they get across their 'Unique Selling Proposition' to people they meet at networking events.

We have been told by marketing experts for many years how important it is to have a 'USP'. What is it that makes us different from our competitors? Why should people choose us and not someone else?

There is no doubt that it remains important for businesses to have a clear understanding of what their strengths are and where they stand out from the crowd. I am not so sure, however, quite how relevant this is in a networking environment. After all, we are also continually reminded that 'people buy people'.

At a networking event, or as part of a networking group, you will benefit much more by getting to know people and building a relationship that you ever will by creating the perfect marketing message that highlights your USP. More importantly than people buying people, people refer people they know, like and trust.

Yes, once people know, like and trust you, you want to build their understanding of your business so that they are in a better position to refer you. At that point a strong knowledge of your strengths in the market place are important. You can also use your USP to help you focus people on who you want to speak to, in other words, who in particular needs what you are best placed to provide?

In other words, as the relationship develops you can educate people about your USPs. However, the relationship must come first.

Yesterday I was talking about the first person to raise this question with me. Try as I might, I couldn't remember her USP. But I remember her.

Return on Relationships

There is an excellent series of blogs currently being posted on Ecademy by Rory Murray. The series is based on the concept of 'Return on Relationships' (ROR) and looks at how you can demonstrate value from networking and relationship building activities.

You can see the blogs here.

One of Rory's recent blogs, about the power of investing in goodwill and seeing the dividents from those relationships struck a very personal chord. Both last year, when my last book was launched, and the last month following my departure from Business Referral Exchange, have seen me reaping the dividends from relationship building over the last few years.

You can read my thoughts on Rory's post here.

(You may need to be an Ecademy member to read these posts. If you have any problems, please let me know at andy@lopata.co.uk).

The 51-51 Equation

I recently met a very interesting woman, Servane Mouazan, who describes herself as a social entrepreneur and social innovation coach.

Servane has a theory about networking which she calls 'The 51-51 Equation'. Servane describes this as a way to measure and value your connections and your networking standards. Relationships which follow Servane's equation should result in benefits for both parties.

The principle expressed by Servane is nothing new, but the equation is a very nice way of expressing the importance of the old adage of going the extra mile. If both parties in an interaction take one more step than that expected of them, the results will be a much stronger relationship and greater levels of trust and rapport.

Servane describes the simple steps you can take to go beyond a 'flat 50%-50%'. Simple things such as recommending someone else to attend an event when you can't; prompting people who are explaining their business to you at speed networking by asking the right questions or helping the host clear up at the end of networking events. As Servane puts it, 'this is the moment when secrets are revealed!'.

Many people now recognise that networking effectively means much more than just collecting business cards and getting sales. The power of networks to provide support, advice and knowledge to its members is of increasing importance to many business people. By offering such support, you raise your profile and reputation in your network and naturally draw people to you.

The 51-51 equation is about going beyond what is expected and into the realms where you stand out from others and connect on a much deeper level.