Leaders Build Networks

Tree structure networks

Source: PICRYL

In my practice, I advise clients to find experts who will help make their vision a reality (without the right data, how can they gauge the market for a new idea?). I advise them on building those experts into teams (if experts aren’t communicating, how can they deliver advice?). But there is another permutation to this approach: building networks of people (even if they’re not “experts”) who are available when the need arises.

Everyone knows about networking. The term usually appears in connection with looking for a job (LinkedIn, anyone?). But networks have other uses. They allow us to expand our reach. They can act as our proxies. They can join a project that we cannot pursue on our own. They can be cogs in the wheels of a vision that cannot roll along solely on our personal power.

Thus, the people who populate networks do not just advise (as teams of experts would); rather, they play active roles in making things happen. They help develop a vision by taking part in how it develops, even if only on an ad hoc basis when the need arises. In this regard, a network is not as formally organized as a team. It is external to an organization and frequently changes shape. But because it is not so clearly defined, it responds to needs that experts find too broad for their narrower expertise.

A good example might be an alumni association. Of course, the president of a prep school has a fundraising team, which designs campaigns for new campus structures and faculty raises over the next 10 years. But suppose that the women’s basketball team now needs new uniforms after years of wearing them to shreds. The president goes to the alumni association—mainly a network of sports enthusiasts—and asks for funds to replace those uniforms.

The president knew just whom to tap (e.g., a former team captain who chairs a hedge fund) and who, in turn, to ask for a good bespoke tailor (another alum who works in fast fashion). The experts on the fundraising team would not have had these connections. But, as a good leader, the president had cultivated the alums; he had just the right network to get the job done. As a gesture of thanks, they received free season tickets to all at-home games.

So, in this expanded hands-on context, networks are groups who do things with us and for us because a) they’re there, and b) they can. The people in the network may not even know each other, but they can act concertedly because they share a common interest (even if that interest is just their acquaintance with us!). In the case of the prep school, it was a love for the school and a fondness for its sports. Thus, while our association with the people in our networks is likely to be casual (unlike with our teams, with whom we work on a regular basis) that’s actually an advantage, since we can ask for unaccustomed support that no team with a conventional job description would ever expect to provide.

A leader knows how to create such networks and use them effectively. Some leaders could never imagine having arrived at their positions except by virtue of the networks surrounding them. Such networks are already in place as they begin to shape their vision into a reality. That is, the best leaders do not wait to form networks—they have them in reserve and have formed them early on in their planning process and held them ready. In this sense, networks represent the future of a vision, and will come into play as a vision grows. They may require a certain, periodic cultivation. But they’re there, able to spring into action (that is, able to cohere) once they receive notice that they’re needed.

One of my clients, a young man, first discovered the utility of experts and then, crucially, discovered how to multiply his effectiveness through networking. He created an entire business model based on networking. But rather than being the sole beneficiary, he allowed the benefits to circulate through the network (analogy: the president who hands out tickets to games). This is where he displayed a touch of genius. Who, after all, wants to be of service (at least for an extended period) without participating in the value proposition? This young man turned the network into a machine for distributing mutual benefits.

We can all create networks that support our vision. But we must design them so that people want to remain committed. My client first learned that he needed experts, and then teams; then he discovered that networks are not just like teams—they’re more loosely organized and, ultimately, based not only on skills but on being available when those skills become crucial. They are immensely useful, provided there is incentive enough for them to remain functional.

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So, as you think about the segue between team-building and forming effective (though more loosely organized) networks, think about these issues:

• Are you a skilled networker? Do you know how to get people excited about joining your network and contributing what they know?
• Are you able, like my client, to make networking fun—as much of an adventure for the network’s members as for you?
• Does your vision include aggregating talent around you informally, to be called on (and rewarded) when you need it?
• Have you figured out how to reward people, and keep them involved, by offering growth potential?

My client would be able to answer these questions with a yes. He was an instinctive networker. But it’s a skill you can learn. Don’t be shy about putting yourself out there. Have your elevator pitch ready. Make the possibilities seem plausible (not by misrepresentation but by displaying your knowledge of an untapped market). Let people know they’re a valuable resource, and encourage them to share your vision. Above all, be able to spot talent aligned with ambition. People do not need to become formal employees if they can help grow your operation and participate in its success.