KARL SMITH: Are You Ready For The Network Economy?

by Karl Smith

Early this year I received an eBook entitled “Winning By Sharing” authored by Léon Benjamin. It was brought to my attention by Owen Cloete from Performance Strategies & Technologies, company based in Boksburg – Johannesburg (South Africa). Owen felt I might enjoy Benjamin’s views on the subject “Wining By Sharing” as the author’s views are similar to my approach in building mutually beneficial business relationship. As a life-long learner I found Benjamin’s views about the power of social networking through collaboration invaluable. However, I am also a keen business environmental scanner and I believe all of us involved in networking at all levels (government, large corporations, entrepreneurs, independent consultants, networking teachers, network forum co-odinators etc) must understand the environment in which we operate.

Benjamin points out that the arrival of the network economy is a natural progression from the Agricultural Economy characterised by Independent People, followed by the Industrial Economy (Corporations) which created Dependent People and now the Network Economy consisting of Inter-Dependent People.

Let me first capture the highlights of his works:

* Like it or not, power is shifting to the individual
* Brands preach while consumers connect
* Networks provide unsolicited benevolence which brands cannot understand
* Social software is revolutionising people’s behaviour
* Trust is emerging as the defining characteristic of that new behaviour, creating very different organisational forms

One of the better definitions of the characteristics and effects of network economy is summarised by the following table. It reflects the consensus and opinions of economics professionals and research institutes worldwide and particularly in the UK and USA. It was originally adapted from Atkinson's ‘The New Economy Index: Understanding America's Economic Transformation’, published by the Progressive Policy Institute.

ISSUES OLD ECONOMY vs. NETWORK ECONOMY

Economy wide characteristics

Markets Stable vs. Dynamic

Scope of competition National vs. Global

Organisational form Hierarchical, bureaucratic vs. Networked

Structure Manufacturing core vs. Services core


Source of value Raw materials, physical capital vs. Human and social capital

Relations with other firms Go it alone vs. Alliances and collaboration or
‘winning by sharing’

Business-government
relations Impose regulations vs Encourage growth opportunities

It is important to point out that "The Network Economy" is viewed from a number of perspectives. For instance, one commentator suggests that if we understood a network not as a type of formal organisation, but as social capital, we will have much better insight into what a network's economic function is. By this view, a network is a moral relationship of trust: A network is a group of individual agents who share informal norms or values beyond those necessary for ordinary market transactions. Indeed, the network, rather than the individual firm, has become the most relevant and effective form of organisation in the modem economy. This highlights the fact that companies now need to manage whole networks, not just individual alliances, and that the days when firms operated in isolation are over. It further means that leaders and managers must review their current and future human capital resources strategies - and where necessary equip their leaders and staff with relationship building and people skills - if they want to have a competitive edge in The Network Economy.

Karl Smith a powerful self-improvement speaker, trainer, consultant, entrepreneur and the author of Beyond The Business Handshake: Dare To Build High-Trust Business Relationships: helping people to increase personal efficiency, productivity, performance and ultimately profitability.

Visit ww.businessnetworkingsouthafrica.co.za to see Karl in action, see what Karl’s clients says, book Karl to speak or to do in-company training, attend a public event, subscribe to his newsletter or to use the free networking resources. Karl acknowledge the expert advice of other commentators in drafting this article.

For more information, please visit Karl's TNNW Bio.

Forward/Share This Article With Colleagues And Social Media:

KARL SMITH: Are You Ready For The Network Economy?

KARL SMITH: The Diversity Challenge: Good Business Relationships Are Possible

By Karl Smith

Good business relationships are all about how you relate to people. The diverse South African society requires particular people skills to build your business. People not only come with different personality types but from different socio-economic and cultural backgrounds as well. They are individuals who despite their differences have many similarities. Business owners, employers and managers who can motivate individuals to focus on common interests amidst diversity, have the edge over others who lack this vital skill. In my opinion, the ability to put oneself in the shoes of others – whether they are new contacts, employers, colleagues etc – is one of the most crucial people skills to succeed in business particular and life in general. This skill is also known as “empathy”: the ability to identify with and understand the wants, needs, and viewpoints of those around you. In fact UNICEF, UNESCO and World Health Organisation identified “empathy” as one of the ten core life skills that enable individuals to deal effectively with the demands and challenges of everyday life. You are not borne with this skill: you acquire it, your nurture it and you work on it as long as you live - it remains a project under construction. You think about it every time before you speak or act. I have recently interviewed Wayne Poggenpoel, Chief Operating Officer -.Global Synergic to solicit his views on networking. Global Synergic comprises of a network of diverse independent associates and specialists. Needless to note, entrepreneurs or professionals who operate within a network of associates – whether informal or formal – are challenged by diverse needs and independent minds.

Question:What is your understanding of networking?
Answer: Building relationships

Question: What role does it play in your life?
Answer: Building friendship and surrounding myself with like minded persons

Question: Your firm consists of independent companies. How does it make decisions as most entrepreneurs like to do their on thing?
Answer: There are governance structures in place that reflects key responsibilities and decision making powers

Question: How do you manage the different relationships and what is your biggest challenge?
Answer: We manage it in the best interests of the organization. All decisions made are firstly in the interests of the company and then the individual. The biggest challenge is trying to align the interests of the company and those of the individuals.

Question: In bringing in new networks, which qualities are you looking for in an individual?
Answer: We all like to do business with those we trust and like. Key qualities I look for include honesty, integrity and trust

Question: Your group comes from diverse backgrounds. How do you manage the diverse interests?
Answer: We manage it in the best interests of the organization. All decisions made are firstly in the interests of the company and then the individual. Why? We are all different individuals and all have different perceptions and thoughts. Now consider which scenario would be easier to achieve consensus? The company which has one interest or the individuals who have many interests?

Question: You say you believe in a mindset of abundance. What is it and Why?
Answer: This world has an abundance of resources. There is enough for all of us. It is about changing our mindset with the belief that this world has something to offer us all. The challenge is when the greed mentality sets in i.e. the belief that I cannot give others as it will be detriment to my wellbeing. It is not the belief I am concerned with but the behavior it creates. Let us think about it, can a greed-like mentality creating a greed-like behavior ever be sustainable in long term? You decide.

Question: Your top tip for networking?
Answer: Be yourself. People like you as the person you are and not the person you want to be.

Wayne’s comment “we all like to do business with those we trust and like’ resonates with my philosophy in business networking and business relationship building. I am convinced that leaders, managers, entrepreneurs and business owners who understand this approach will be winners.

You can read more about Wayne’s business by visiting www.globalsynergex.co.za. Karl Smith is the author of “Beyond The Business Handshake: Dare To Build High-Trust Business Relationship”, South Africa’s Business Networking & Referral Coach, and the owner of Business Networking South Africa.

Visit www.businessnetworkingsouthafrica.co.za to see Karl in action, see what Karl’s clients says, book Karl to speak or to do in-company training, attend a public event, subscribe to his newsletter or to use the free networking resources.


For more information, please visit Karl's TNNW Bio.
Forward/Share This Article With Colleagues And Social Media:

KARL SMITH: The Diversity Challenge: Good Business Relationships Are Possible

KARL SMITH: Greed Destroys Business Relationships

Karl Smith

As a business networking coach I interact with people from diverse backgrounds and I am often intrigued by the reasons which motivate people to contact me. Needless to note, large part of South Africa’s population is still very poor. So you will find aspiring entrepreneurs hailing from these past deprived communities and those individuals from the opposite spectrum attending my courses. They have one thing in common: to make money. That’s why they attend a course dealing with “growing your business through business networking”

If you have attended my workshops, you will know that I make my point of departure for my course, my book and my life known, upfront. Why? Because I belief people should know from which perspective you as a speaker, chief executive officer, manager, employee etc. comes from. You may ask why? Tell me, how can they belief in what you say? How credible is your message? What will the impact be if people don’t know where you come from? Imagine the miscommunication, the doubt, suspicion etc. if people don’t know where they stand with you? So what is my point of departure? I have a people centric approach towards business networking and referral training. You will not find any manipulative techniques! Through my motivational presentations and facilitation I call on my audiences to genuinely and sincerely care about themselves and people. Why themselves first? Because if you don’t care about yourself, your own well-being, your own future…will you care about that of others?

My message about “caring and giving” is in sharp contrast to the challenge of greed, in particular for people who have a lot, and who want more. So what is greed? “Greed” as per the Webster’s dictionary is defined as “an overwhelming desire to acquire or have, as wealth or power, in excess of what one requires or deserves”. Dr. Duane Scott defines “greed” as “you work all day to try and keep up with your neighbour, your neighbour is trying to keep with your boss' neighbour and that neighbour is living well beyond his means in order to impress his latest girlfriend on the side…” The problem is that we never know when this wild card variable (greed) will take root. We cannot account for it in all of our statistical analyses and because of this humanity gets burned by it time and time again. Business in its present form knows it exists but at times wants to pretend it is not there.

I believe that business networking coaches and networkers should be aware of this risk to sincere networking and mutually beneficial business relationships. Where there is money, wealth and power, greed and vice are sure to be present. Top that with no checks and balances or no consciousness, and you have the perfect recipe for dishonesty. I fully agree with the comment made on the Financial Awareness Blog: defining greed should focus on the first part of the definition “an overwhelming desire to acquire or have, as wealth or power …” Desire is usually created from feeling lack. This can apply to several situations, including, lack of self-worth, lack of self-love, lack of money etc. Many people look at money as the cause of greed.

Yet, greed is not about the money. Greed is about the reason why a person wants money. Yet, you may ask, isn’t greed about abundance (having too much)? No, greed is about feeling of lack. If a person believes in abundance then he would not feel the need to acquire excess wealth or power, rather he will share it freely. The first step in transforming lack into abundance is to identify all areas of lack (or fear of lack) in your life or an area that you fear having lack. Look at any areas where you believe if you have a little bit more, you will be happier. For some, this may be money. For others, it may be love (self-love), respect, self-worth, kindness, caring, etc. The next step is to believe that you already have an abundant supply of what you lack.

A good way to do this is to tithe and practice gratitude. Taking the opposite action (being thankful and giving it away) is what changes belief in lack. To practice gratitude, make a list of things you are grateful for around the area of lack. To practice tithing, give what you believe you lack because the action of tithing symbolises that you already have enough. By being grateful for what you have and freely giving it away (tithing) will show you that you have enough versus having a lack. If you believe you are lacking money, be grateful for the money you have and give it away freely. If you believe the world lacks kindness, then give more kindness and see the kindness that is already all around you. This is because what we focus on (with gratitude and tithing) will expand. A mindset of abundance also defeats relationship killers such as “self-interest” and nurtures the principle ingredient “giving” or “reciprocity” required for mutually establishing and building beneficial business relationships.

Karl Smith is South Africa’s Business Networking & Referral Coach and the owner Business Networking South Africa, a division of ExecuEdge Consulting - a successful consulting and business relationships training company. Visit www.businessnetworkingsouthafrica.co.za to see Karl in action, see what Karl’s clients says, book Karl to speak or to do in-company training, attend a public event, subscribe to his newsletter, to use the free networking resources or to buy his book “Beyond The Business Handshake: Dare To Build High-Trust Business Relationships”


For more information, please visit Karl's TNNW Bio.

Forward/Share This Article With Colleagues And Social Media:

KARL SMITH: Greed Destroys Business Relationships

SOUTH AFRICA: Seek First to Understand

By Karl Smith
South Africa Bureau Chief

It is generally agreed that the way we see things through the eyes of our minds has a significant impact on our own success. This picture is also referred to as our frame of reference, our paradigm…a perception of reality through which we integrate, evaluate, and interpret new persons, events and ideas… I have worked with thousands of people in my career and I was often frustrated by the many change management and teamwork interventions we embarked upon because it was a decision made by the top executives. None of these intervention experts even considered our current frame of reference relating to change, teamwork and other issues. They failed to invest time to see where we come from, our frame of reference. If everyone could live by this principle to always attempt to understand one’s frame of reference, which perspective we come from when we speak or do something, then it will be must more happier or productive place.

When we employed our first Xhosa speaking staff member at one of the many companies where I worked, some of my staff were up in arms, because in their minds he had no planning skills for the many school related projects for which he was responsible. It was only when I told them that he hails from a community where you provide for unexpected guests because of their culture to be hospitable when they showed empathy for his challenge. Through my facilitation to always understand where people come from I have build a formidable team who achieved success beyond expectations. Today, that staff member is a Chief Executive Officer and I have many other similar success stories. You foster better business relationships if you understand where people where they come from. It is a skill so needed in business today from employee to the boardroom, to connecting with people and to dealing with difficult people. The ability to show “empathy”, to put yourself in the shoes of others, to exchange places is a vital skill in building business relationships. “Seek first to understand” requires deep paradigm shift. We typically seek first to be understood. Most people do not listen with the intent to understand; they listen with the intent to answer.

I am a keen reader and I frequent coffee shops with a book in the hand. One day, I overheard the manager shouting at a waiter for accepting and paying for an order without having the delivery note signed. The poor waiter cringed and he tried to explain that the manager was not there when the delivery arrived and that he just wanted to help! In my mind the manager should have listened and understand that somewhere along his short life this young waiter was taught to be helpful in the absence of a manager. He should then have empowered the waiter by explaining the procedures and then give him a second change. What a benefit to the waiter and the manager! You see networking skills benefit people wherever they have interaction with others.

Extract from Karl’s book entitled, “Beyond The Business Handshake - Dare To Build High- Trust Business Relationships. Karl is the owner of Business Networking South Africa, a division of ExecuEdge Consulting- a successful consulting and business relationships training company.

Visit www.businessnetworkingsouthafrica.co.za to see Karl in action, see what Karl’s clients says, book Karl to speak or to do in-company training, attend a public event, subscribe to his newsletter or to use the free networking resources or him at karl@businessnetworkingsouthafrica.co.za

For more, check out Karl's TNNW Bio.

*******
Posted to THE NATIONAL NETWORKER (TNNW). All rights reserved.

To subscribe for your free TNNW Newsletter, go to http://www.thenationalnetworker.com/ For the complete National Networker (TNNW) Relationship Capital Toolkit and a free continuous RSS feed (available either by traditional RSS or by direct email), go to: http://thenationalnetworkerweblog.blogspot.com/

You are also invited to click our buttons:




-------

Forward/Share This Article With Colleagues And Social Media:

SOUTH AFRICA: Seek First to Understand