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Network as net worth
It was during the Global Leadership Lab Immersion week, held from January 27 to 30th, 2020, that Sanders used these words to express how socialising, building new relationships and creating new connections created the needed opportunities that led to the discovery of new things; things that bring the necessary breakthrough in life. In effect, it brings enlightenment!
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In fact, when l started a series on capital in the month of June 2020 in this column, I wrote about “trust as capital” in the July 4, 2020 edition, which placed emphasis on social capital, where networking was a dominant feature. In sum, what l said then was that your network could be your net worth if you know how to exploit the relationships that you build on your journey in life.
Before l rely on some of the key issues that l raised in that edition, which l believe are worth repeating three years on, l would like to, first, look at the whole idea of “networking” and how they improve systems and processes.
Let’s consider infrastructure network of some sort, say the railway or road network. What readily comes to mind when it is mentioned that an area had a good road or railway network? While still thinking about it, let me just answer, by expressing my ideas about what a good network is or ought to be. Simply put, it means that the system is interconnected in such a way that it makes it easier for one to move from one place to another, may be with little effort, or effortlessly. So, on paper, when you look at the map of such a network, you see interconnecting lines, which may be vertical or horizontal, marking out the clear path that could lead you to your destination. In effect, a good railway or road network helps people to either travel themselves or transport goods beyond the borders of their small regions or districts to another in no time or at a cheaper cost. A good network improves trade and the economic life of those who patronise such services. Of course, this is just one example.
The next one that l would like to talk about, before l look at the capital gains from social networking, is what we know today as the digital network, which is more related to digitalisation and the internet, two key technological revolution. In fact, the introduction of a digital network has brought a lot of changes to our day-to-day lives.
Just as illustrated in the railway and road network explained above, the digital network has enabled people to do their shopping from the comfort of their own armchair with just a few clicks on a smartphone or laptop. In effect, there is no need to take that walk to the shop to buy goods; you can shop and pay for your goods online. The digital network has also revolutionised the way businesses are run today. Today, you have a 24-hour shop window with 24-hour shopping time because the internet is always open to those who are ready to patronise your services. These two networks, as you can see, have improved life in general, and made it a lot easier for all of us to get things done or to procure goods and services from others. That is the power of a good network in all forms.
Well, I have provided the examples above to help you appreciate why it would be useful to have your own social network. I mean a strong one! The social network that l am referring to here is about how you interact with others to exchange information and develop professional or social contacts. It also involves interacting with other people’s network also; networking to find opportunities that lie hidden in other areas.
Social capital, which is the capital that you create with your social networking skills is unique in many ways because it is the kind of capital that you do not need collateral to get; if you want to start your own business, for example. What this means is that everyone can develop social capital of some sort, and use it to develop their business (start-up or an existing business). You can also secure the “hard” capital through your social network. But social capital goes beyond your “social skills” or “networking” ability as it also actually built on the foundation of relationship, network, attitude, values and integrity.
“Let me explain further. Economic literature has refined the notion of trust over the years, and added useful empirical evidence, which explains why trust is a component of social capital. The intriguing part of this whole discussion on capital is that whereas you would find discussions on the other forms of capital … featuring prominently in business, economic and finance literature, sociologists have found social capital an area of considerable interest and, therefore, that features prominently in literature on sociology”, this is how explained the link between trust and social capital in the July 4, 2020 edition of this column.
In the broader sense, social capital becomes the collective glue that keeps well-functioning societies together and improves their performance. “In fact, sociologists argue that more sophisticated financial arrangements require a higher level of social trust to be implemented. The empirical evidence available suggests that the propensity of economic agents to use formal rather than informal credit sources is largely influenced by the level of trust between the parties”, I stated in the July 4 edition. So, when you are trusted you gain more capital- whether cash or social-, and that is why Sanders has gained currency with his statement.
When you develop and maintain good relationships within your network, you realise that helping one another comes naturally. There is a shared sense of identity, understanding, and shared values, trust and reciprocity. Everyone, within this context, is willing to help to maintain the relationship. It relates to human sociability, but has the propensity of growing societies where the social network is strong.
Have the networking intelligence, just as you need emotional intelligence to succeed in life.