Networking For Relationships Or Transactions?

I was a Peace Corps volunteer in West Africa. As I learned first hand, you can’t get to a transaction in Africa unless and until you develop the relationship – even to buy tomatoes, oranges or even fabric or gas for your moped. Sometimes that meant a 20-30 minute chat just to buy bread or a Coke.

At a meeting of Boston Ecademy, our speaker and guest host Richard Banfield, who is from South Africa, drilled home this contrast between Americans and Africans as it applies to networking.

Whereas in Africa, it’s all about the relationship and then somewhere along the line a transaction may occur. Here in the states, we are so transaction driven we’ve stripped most interactions down to the most mundane scripts with no opportunity to build the relationship in our rush to get to the next person in line. Yet, as anyone who is seeking employment these days can attest, it’s all in the relationships – that’s where the real transactions are happening.

In general, we New Englanders (natives) have a reputation for being a bit reserved when we first meet people. Once you penetrate that veneer, New Englanders are the most loyal trusted friends you’ll ever have.

In spite of this reserve, a number of other factors put New England in the top ranks in the indices that measure invention, innovation, venture financing and entrepreneurial endeavors. In fact, we are a model environment for fostering creativity – which other places want to emulate.

What we have is a rich mix of culture, people, technology, education, networks and money. It just may be our underlying Unique Selling Proposition (USP).

New Englanders are not afraid of risk – think blizzards and icy roads and we still show up, or the old whaling ships of yore. It gave us that reserve and it gave us backbone.

Add to that the diversity of people from around the globe attracted to our colleges and universities – arguably the highest density student population on the planet with some of the premier institutions ever founded. The resulting creativity is abundant.

Networks are in fact, one of the most critical contributors to our success. Ask any CEO in the region about starting your business and they all emphasize ‘build the strongest, widest network you can”. We take networks and networking seriously. Which is why so many wide-ranging organizations are so successful providing venues and opportunities for networking.

Because we are well-networked and people move around easily, ideas and experience flow into both new and established companies. The depth of our entrepreneurial talent pool is rich. We wouldn’t have it without cultivating it from the diversity of people here, through various networking opportunities.

Innovation happens where different technologies intersect, maybe crossing the boundaries between industries. Isolated within our own industry, with our heads down, we would never see these ideas germinate and blossom.

New England is also a healthy breeding ground for venture capitalists, angel investors and their legal teams in support of these innovations. The financial base for these innovations to call on is very appealing. And of course, the money gravitates to where the people, excitement (hype?), networks and technology overlap.

New England is the oldest and most experienced region for bringing all these factors into play. The piece we have, that others are starting to see as essential, is building the relationships; the people connections where we help each other just because we can.

As leaders, we must recognize that we play a vital role in keeping the larger community strong by being generous with our networks, our knowledge, and enthusiasm, not just to close the next transaction. That’s networking at its best.