The power of networking, particularly in rural areas

Brian says: "Networks have always been an established part of doing business, it is how well you use them that makes the difference. What benefits do networks generate, what problems can they solve and why do they even work? A network is a collective of people who share a set of norms and values, where social capital is exchanged often for mutual benefit and where favours can be held over for a long time; a collective where people will help each other but do not simply act as cheerleaders on the sidelines. I have always found my Cumbrian networks to be amongst the strongest I have, which spans the service, manufacturing and hospitality sectors. A few years ago Barry Leahy from Playdale in Ulverston came to me looking for some immediate support, with the help of my network Barry was able to find resolution, and very recently I approached Ruth Power from FMB in Kendal, I was looking for suppliers, knowing Ruth was well connected in the area she helpfully used her extensive network to help me find what I needed. Perhaps because we are more sparsely populated in Cumbria than the big cities, we know how to make the most of our networks,

Understanding why network members help each other is important. There are two terms you may have heard before and wondered what they are, social capital and embeddedness. Practically, your embeddedness is strengthened with your shared values, the duration of your relationships, your centrality with the network and your collective identity. Your social capital comes from your reciprocity, your trust and reliance on each other, your history together and your willingness to provide mutual support over time. In real terms, it’s ‘I’ve got your back’.

For networks to be successful they need permeable and malleable boundaries, centrality in a network should always be temporary. If you are always the most important person in your network, you’re in the wrong network. Trust is critical, it needs to be earned and then maintained, as does complying with the values and norms of the network, if you cross into another network to help or be helped, make sure you check out their norms before you start. You know your network is strong when you call an old contact from a few years back and they answer straight away, acutely aware it could be a social call, but it is more likely you need help somehow.

Time is so often of the essence when we need support, but first you need to understand the root cause of the problem, not just the symptoms that show themselves. Having established what the problem is you then need your trusted network to be loyal and responsive. You need to know they will answer your call in the first few rings, not send you an email in a couple of weeks! Research shows that at the time of making a decision you will often only know between 40% and 60% of the facts you would like to know before making that decision. With such significant gaps in your knowledge you need to try and fill them quickly by mobilising your networks and utilising their experience.

Business problems are often categorised as the one-off cataclysmic events: the loss of major clients, running out of cash, reputational damage or the loss of key people etc. However, the majority of issues you encounter are far more run-of-the-mill, more individual and nuanced. Recent research highlights some of the issues businesspeople face all too often which include:

Help with children

Caring for parents

Inflation

Energy Costs

Loss of talent

Finding new talent

Supply chain issues

Personal Health

Laying off staff

Cash flow

Worry for others

Client expectations

A strong network facilitates your shared learning. Learning from and gaining support from your network we know brings individuals significant benefits. But how can you extract the most benefit from your network? The first way is the altruistic ‘pay it forward’ method, where A helps, B, who in turn helps C and so on. This method is excellent for building up social capital that can be cashed another day, but also presents a less tangible support network that relies more on interpersonal relationships. An alternative more disciplined approach would be to initially approach your immediate network of people seeking support, these are your primary connections. If additional support is required then you would next approach your extended network or your secondary network. Finally, if you have still failed to locate the support you need you extend your search beyond your normal network boundaries into the wider world. This model shows the need for flexible network boundaries linked to the issues being faced and allowing those with expertise to be brought to the centre of the network for the duration of the issue. Sharing your issues with elements of your network provides us with comfort and reassurance. When we share our problems we reaffirm our network’s shared values, our collective network identity and we strengthen the trust and social capital bonds with each other.

Context and situation are key to our problems, the same problem you have today will not produce the same issues next week, no one problem is ever the same twice over. Therefore, successful networks will adapt to these changes, the centrality of people within networks alters depending on the needs, so be prepared to be both central and peripheral in your networks. Investing in your network requires giving as well as receiving when it comes to knowledge, resources and time, and remember, the next time the phone rings, answer it.