In 2008, Tesla was on the verge of bankruptcy. Although it already had prototypes of electric cars that worked well and had an attractive design, it had to take the leap and start mass production. But in 2008, a major economic crisis occurred that cut off almost all sources of financing. Tesla CEO Elon Musk had to appeal to the friends he had made in previous ventures to save the company: Bill Lee, Sergey Brin and Antonio Gracias , among others, contributed several million dollars and allowed Tesla to survive the crisis.
Elon Musk made use of his social networks; not the virtual ones, but the real ones: family, friends and acquaintances who provide us with information, support and on whom many of the opportunities that come our way depend. In essence, Musk was capitalizing on his previous networking , that is, the work he had done — planned or not — to meet and build trust with important investors in the entrepreneurial world.
Because of the importance of these relationships, many management experts today talk about strategic networking . This concept refers to the activity of leaders and senior executives to build relationships that ultimately help meet the main objectives of organizations and people. This network is worked on daily, but it is activated at times that one sometimes does not foresee. As happened to Musk, it may be that at a given moment knowing who to call saves the company, either because that person handles an important resource (financial, political, know-how or others) or because they can introduce us to someone who does.
Herminia Ibarra and Mark Lee Hunter have researched successful entrepreneurs and came up with a series of recommendations for strategic networking .
First, they say that it is crucial that senior executives understand the importance of building networks that are truly strategic and not just operational or personal .These networks must go beyond functional relationships and focus on connecting with people who can influence the strategic direction of the organization. As a leader, it is vital to create alliances with individuals who can offer support and resources to achieve long-term objectives. For example, an executive must be concerned with understanding and anticipating changes in the business environment, and to do so, he or she needs to surround himself or herself with people with different perspectives and skills.
Second,resistance to developing contact networks must be overcome. Many executives see networking as a manipulative activity or as an absurd cost, which can limit its development
But networking is not a luxury, but a strategic necessity. Sharing with colleagues, both inside and outside the organization, is key to maintaining a broad, strategic vision. By overcoming this resistance, a leader can use his or her network not only to solve operational problems, but also to identify new business opportunities and ensure alignment with the organization’s overall goals.
Third,network construction must be viewed as part of a routine. To maximize the value of thenetworking, executives must learn to integrate this practice into their daily work
This includes taking advantage of moments like business trips or social events to strengthen key relationships. A good example is using personal interests or shared passions to build connections that transcend the professional and provide strategic value to the company. By doing so, networking can be transformed into a powerful tool to influence the organization and achieve objectives more effectively.
Paola Cecchi-Dimeglio adds that the networking strategy must be appropriate to the stage of a person’s career. Everyone has to ask themselves to what extent their current network of contacts is helping them to achieve the goals they have set for themselves.If they are not suitable, it is worth expanding, and this can be done by first activating the contacts you have at hand.
She also points out that there are different styles of networking and that it is worth experimenting with them. Expansionists create numerous connections and act as influencers in large groups; brokers have a network of very diverse sectors and are skilled at connecting separate worlds to foster innovation and collaboration; and conveners develop deep and trusting relationships within the same community or industry.
Finally, Rutgers-Newark University recommends having a presence on social networks like LinkedIn, where you should build a solid profile and actively participate with interesting content. Interacting with other executives on the network also allows you to stay up to date with new job opportunities and receive advice on how to excel in your career.
All of these tips point in the same direction, because they understand that the contacts we develop either enhance or limit our ability to find new opportunities or solve difficult problems. Understanding the centrality of networking can give us a very important differential in our lives and careers.
