All networking is premised on building relationships with contact in different types of networks to which you belong (or could belong). The network you select to use must support your organisation’s business objectives.
An organisation’s objectives are its goals, purpose, and mission. It includes its intentions for operating a business as well. Your organisation’s objectives should be clear, specific, and achievable, so you should be able to know what these are even without having to look them up. Even before you joined the organisation, the objectives should have already been communicated to you to give you an idea of what the organisation is trying to achieve.
Your organisation can have one overall business development goal, but the activities done to achieve the goal can vary from department to department. Understanding your organisation’s objectives is important because this will guide you in planning and implementing the proper activities. You can refer to the Ace Finance Corporate Marketing Plan to understand their current strategic plan and business objectives.
Aligning organisational objectives to networking objectives
Networking objectives depend on business development objectives. Networking is usually a strategy to help achieve the overall goal of the organisation. But not always. Consider business development objectives. Do they require the involvement of people outside the organisation to be achieved? For example, if the objective is to create more products, the organisation needs suppliers they can purchase the materials from. In this case, networking with suppliers is necessary to achieve the objective. In the case of Ace Finance, networking is very clearly identified as a key strategy for attracting more clients, especially clients wanting a more holistic accounting service that includes training in financial literacy
Aligning personal networking objectives to organisational objectives
Your personal objectives depend on your work role and your long-term career goals. Examples of personal objectives you can set for networking are:
- Increase your knowledge and learn skills.
- Look for other job opportunities.
- Get more clients through referrals.
Generally, your personal objectives for networking should be aligned with the organisation’s objectives. Ensure that there are no major conflicts between these so that your networking activities can satisfy both personal and organisational objectives. If networking is an important feature of your organisation, it will (like Ace Finance) have a networking policy and procedure which outlines expected behaviours.
Your position description will outline any networking responsibilities you have. These will vary depending on the role. For example, an IT support person will mostly network internally. On the other hand, a business development manager, product salesperson or research assistant will likely have to network externally. In fact, networking may be identified as a key performance indicator for your role.
Read the following article from the Harvard Business Review that explores the impact of working remotely on professional and personal relationships. The research looked at the impact on an individual's career progress and the negative impact on organisations where less creativity and more 'groupthink' has resulted.
Read the article from the Havard Business Review on the impact of remote working on professional and personal relationships.
Reading
We’re Losing Touch with Our Networks
Explores the impact on professional and personal relationships of working remotely.
Expected Duration: 20 minutes
URL: https://hbr.org/2021/02/research-were-losing-touch-with-our-networks
Potential business networks
The three main business contacts you will need to maintain relationships with are suppliers, clients/customers, and colleagues. Contacts can be individuals within your organisation (for example, from another team), or found external to the organisation (for example, through other related organisations such as suppliers or even your clients). Contacts can also be found through other organisations that directly or indirectly promote and foster networking opportunities.
So, how do we define the difference between these types of potential networks?
- Industry associations: association members play an important role as a collective voice for individual businesses within an industry. Their members will often share information, discuss issues, develop standards and establish rules for best practice within their industry. The Financial Services Federation may be a useful industry association for Ace Finance.
- Professional associations: Professional associations, on the other hand, are a body of persons engaged in the same profession. It usually formed to control entry into the profession, maintain standards, assist members through ongoing professional development, provide mechanisms for quality control and engage in research. The New Zealand Institute of Chartered Accountants (NZICA) is an example of a professional association relevant to Ace Finance.
- The New Zealand Chamber of Commerce is a network of businesspeople designed to promote and protect the interests of its members who come from all sectors of the economy. Many regional centres will have a business chamber that may be affiliated with the New Zealand Chamber of Commerce.
- Professional networking organisations: The number of organisations that exist to promote networking is increasing. They include LinkedIn which is the world's largest professional network, Opportunity which uses artificial intelligence and matching algorithms to connect you to people, and EventBrite which is an events hub where you can search for physical and online networking events.
There are also often some specific networking organisations that cater to a specific demographic group. For example, a networking organisation may cater specifically to women in business. There are also networking groups that cater to minority groups or that cater to specific business sectors, such as small businesses or home-based businesses.
They can all be used for networking and building your contacts. Which you decide to use will depend on your networking objectives (which should support your team or organisational objectives). Check your organisation's policies and procedures for recommended networking opportunities.
Answer this question on networking opportunities
Identifying contacts for your network
A contact can be an individual internal or external to your organisation. Select the following headings to learn more about making a list of contacts (via a range of network types including individuals and organisations), researching how to find them (including through industry-related organisations and professional networking sites) and tips for reaching out and/or becoming involved with a contact.
List all the people and groups that would be helpful to know for business purposes. These can be potential customers or other businesses that offer complementary products or services. The following table lists network types that would benefit Ace Finance and describe what assistance they can provide.
| NETWORK TYPE | CAN ASSIST WITH |
|---|---|
| Fellow business owners | Advice and business updates and practices. |
| Bookkeepers | Processes, industry updates, software assistance. |
| Colleagues/staff | Company policies, procedures and information. |
| Fellow accountants | Legislation and tax information, company tax returns, family trusts, financial reporting. |
| Lawyers | Laws and legislation, legal advice. |
| Registered tax agents | Legislation and tax information, GST preparation and lodging. |
| Auditors | Adherence to company policies, legislation and tax information. |
| Banks, Building Societies, Credit Unions | Banking and financial tools. |
| Mentors and advisors | Processes, industry updates, software assistance, ethical behaviours, professional developments. |
| Information Technology team (IT) | Software upgrades and advances, software integration. |
| Inland Revenue Department (IRD) | Legislation and tax information, KiwiSaver, PAYE |
| Professional/Industry Associations | Processes, industry updates, software assistance, professional education. |
| Debt collection agencies | Adherence to legislation regarding ethical debt collecting, credit checks for clients/employees. |
| Suppliers | Continuous quality improvement and price reductions, building customer relationships. |
| Clients and potential clients | Product feedback, referrals, constructive criticism which lead to continuous improvement. |
Research contact details, industry associations, existing network groups, scheduled events. You should also start to look at social media platforms, some of which we will briefly discuss. Some methods to consider as part of this research:
- Industry associations: these will depend on the specific industry sector.
- LinkedIn: The world’s largest professional network with almost 740 million members in more than 200 countries. Used to connect with individuals in their professional setting, apply for jobs, ready people’s professional articles, seek expert advice, be notified of industry events, participate in online courses.
- BNI New Zealand: NZ branch of global organisation which helps members to grow their business and network.
- Business Chicks: Membership to weekly virtual member meet-ups and access to networking events
- EventBrite: An events hub where you can search for online and in-person networking events across New Zealand. Used to reach new customers, drive demand and build relationships with built-in marketing and communication tools.
- Twitter (X): Follow prominent industry personnel who may provide information about events or courses.
- Search engines: Find businesses, addresses, phone numbers, maps etc.
- Facebook: Join a business or association’s official Facebook page to stay connected with their updates, news, events, personnel, photos etc.
Make the initial contact or take the first step:
- Send an email to introduce yourself and your business.
- Become a member of various industry associations. Note: This process will usually involve supplying evidence of your qualifications, identity, insurance, good standing, and/or declarations of acceptance for Codes of Conduct.
- Get involved in a non-profit organisation. Participating or volunteering in the activities of a non-profit organisation may provide opportunities to meet with staff members of the organisation or even their executive team. There is also an immense intrinsic value in volunteering and contributing to a worthwhile cause.
- Attend events regularly and join for the drinks or dinner or morning/afternoon tea that is provided.
- Become a connector. Becoming a connector is a great way to get involved in the community. Diversify and make connections beyond your niche by recognising ways to introduce or associate people with similar interests and career goals.
- Provide thought leadership. Offer relevant market information, answer questions from members of the group and share appropriate articles. Being visible on social networking sites also provides an opportunity.
Seeking specialist advice in developing contacts
Networking can be difficult, particularly if you are new to the industry or new to business in general. It can be intimidating to go out there and build contacts. Your managers and supervisors are the best people to seek advice from. They have experience in networking and can guide you through the process.
You can also seek help from external sources, such as consultants. They can find the individuals that you need to develop your business and introduce you to them. If you decide to seek advice from a consultant, ask them specific questions and give details about the type of individuals you want to contact. You can also ask for help from your existing business contacts. Each contact you have can lead you to other new contacts. Ask if they can recommend any individuals or organisations that would be helpful to know and if they can introduce you to them.
The Ace Finance Networking Policy and Procedure indicates that staff should consult with their manager for advice on developing contacts.
If you need help developing your interpersonal skills for better networking, you can attend seminars and workshops that can teach you how to communicate more effectively. Your organisation may be able to provide you with training for this, so ask if there are any upcoming opportunities you can participate in.
Creating a simple networking strategy
Strategic networking is the ability to marshal information, support, and resources from one part of a network to achieve results in another.
As you have learned, networking is an important strategy and can help your organisation to generate new sales leads, learn about your market, and build and maintain business relationships. To be most effective, networking should be strategic. Why then do so many organisations approach networking in such an ad-hoc fashion? Your networking can be much more effective with a simple strategy. Check where appropriate with your manager and if your organisation like Ace Finance has a specific networking policy and procedure, make sure you comply with any requirements.
Review the following simple model for creating a simple networking strategy. Completing these steps allows you to develop a plan for networking.
| STEP | DESCRIPTION |
|---|---|
| Step 1 | Identify why you want to network (these could be written as goals and should directly support your team or organisational goals). To create a successful networking strategy, you need to be clear about why you want to network in the first place. For example: Do you want to:
|
| Step 2 |
Identify how many contacts you need. Once you know why you are networking, you can estimate how many contacts you will need to achieve your networking Goal. For example, you identify finding new clients as your reason for networking. You may already have 10 clients, so you identify these 10 clients as contacts for referrals and introductions. |
| Step 3 | Identify the people with whom you need to network. Some of those contacts you want to network may be old contacts you have known for years. If not, you need to:
|
| Step 4 | Review your plan and implement your networking strategy. Check your plan and ask yourself if your reasons for networking remain valid, have your priorities changed? If not, then you can start to implement your strategy. |
Tips for building and maintaining networks
You may be responsible for planning, sequencing and implementing tasks to build and maintain networks. The following points will help you perform this responsibility effectively.
- Schedule time to contact your networks on a regular basis.
- Schedule time to identify new formal and informal networks.
- Ensure the networks you cultivate align to your organisation's objectives.
- Identify the resources you need to build and maintain a network (for example, costs to attend a formal networking conference)
- Use a project plan to set realistic objectives, sequence activities, and include timelines and responsibilities.
- Apply time management skills to ensure any networking event you organise runs to plan.
- Select appropriate support of others and engage all stakeholders.
- Seek feedback and update your networking activities where required.
Case Study
Scenario
Ace Finance began in 2004 in Auckland. The business model has expanded to regional Auckland and Waikato. Its current client base includes large corporations and small-to-medium-sized organisations and sole traders in local hospitality and tourism, aged care, manufacturing and childcare. According to its Corporate Marketing Plan, it is keen to expand its client base to fruit and vegetable producers which have become key employers in Kumeu, Pukekohe and rural Waikato. Using the steps we outlined above, let us see how staff at Ace Finance might respond.
- Step 1: Identify why you want to network. Find new clients in the fruit and vegetable producers (growers) sectors in regional Auckland and Waikato.
- Step 2: Identify how many contacts you need. Robert and his team split their efforts by taking one regional area each (Kumeu, Pukekohe and rural Waikato). They agree to identify five current clients with connections to regional fruit and vegetable growers. They are achievable because they each have clients who transport produce to local markets and fruit and vegetable retailers.
- Step 3: Identify the people with whom you need to network. The names and contact details are available through the Ace Finance client database. As a group you discuss which if any would be prepared to refer Ace Finance or to act as an introducer or connector.
- Step 4: Review your networking plan and implement it. You believe the reason to network is valid, and the people identified are appropriate. However, you have not identified local industry associations and the contact person for each sector. You also agree to each review one online professional.
Use your research skills to identify any other sites you may find useful for networking. There may be sites that offer physical networking opportunities in your area. You will also find virtual networking opportunities. The following short scenario illustrates how Ace Finance has used networking with external sources effectively to assist their organisation.
Case Study
Scenario
Ace Finance use their product suppliers and independent contractors as ways to identify contacts who can assist them achieve their objectives. They also view their clients as potential contacts and sources of useful information.
- Product suppliers: Product suppliers who provide basic accounting supplies such as project management software, tax software, stationary and/or paper-free document management system, computers, telephones, stationery and internet services. Ace Finance service quality is directly affected by the quality of the supplier’s products and the speed at which the products are made and delivered.
- Independent contractors: Independent contractors work on a contractual basis for the organisation. At busy times of the year, Ace Finance bring in additional accounting and administration staff. Because the contractors are responsible for paying their payroll taxes and benefits, they help reduce employment costs.
- Clients: Clients are the ones who purchase products and services from Ace Finance, therefore responsible for the revenue. They may also provide feedback that can help the organisation improve.
Ace Finance also try to stay abreast of networking opportunities through appropriate industry and professional associations. Professional associations are an excellent source of networking opportunities, which we discuss in the following subtopic.
Apart from individuals, identifying organisations that foster networking opportunities is also a profitable pursuit to undertake. Some of these were identified previously. The role played by professional and industry associations in fostering networking opportunities that not only serve you, your organisation but build the industry as a whole. They should not be overlooked. Whilst many industry associations are national and often based in capital cities, some either have a 'chapter' in regional centres (such as a Chamber of Commerce) or partner with other organisations to co-sponsor a networking event.
A good starting point for establishing a network is to become a member of professional networks catering to your field of expertise. These are accredited structured groups of organisations working together to expand their circles and increase awareness of news and trends in a specific industry. These networks cover a wide range of contacts, including:
Professional associations act as a peak body or umbrella organisation, for professionals working in the same or similar fields. These associations maintain standards within a profession, provide ongoing professional development to members, and represent the interests of their members to the government and community. These associations provide members with many services including access to network meetings, events, special interest groups, and informal social events. It is an excellent way to obtain specialist advice about a specific industry or profession, build business relationships and contacts.
Services will vary between associations, but they generally provide a forum for members to interact with and learn from each other. There are many professional associations depending on your area of study and the industry. Click on each of the following headings to identify the range of professional associations that would be of interest to an organisation such as Ace Finance.
You’ve come to the end of this topic, well done! Before moving on to the next section be sure to complete all the exercises and go back over any linked videos and articles if you need to.
Activity
Are you a member of a professional association of networking organisation? Comment in the forum and say what you see as the benefits being a member has for you or for the organisation you work for. Don’t forget to comment on what your classmates think.
You’ve come to the end of this topic, well done! Before moving on to the next section be sure to complete all the exercises and go back over any linked videos and articles if you need to.
