Structural “Loopholes” to be leveraged in networking

Hey There,

The term "networking" has become overwhelming in the business world. During my undergraduate degree at business school, it was very common to attend networking events with seniors who had successful careers in finance, consulting, technology, or other prestigious fields. This is even more prevalent when starting a career in a firm. As an introvert myself, I often find mingling with strangers to be intimidating. Instead of focusing on improving social skills, I want to approach this as a problem statement and address it from a more engineering angle.

To start off, when you think of "networking," the immediate idea that comes to mind is probably related to one's popularity - does that person have many friends, acquaintances, and followers? In a networking analysis, we call this "Degree centrality." This is especially obvious in high school or college, where the popular kids easily become the center of attention.

However, as we enter the business world, "connections" start to matter more. Do you happen to know someone who holds a high position in the corporate ladder or has power? While having many friends can be helpful, it can be equally or even more important to have a few well-positioned friends. In networking analysis, this is called "Eigenvector Centrality."

However, many individuals might be too focused on "networking up" or connecting with individuals who hold higher positions or have greater influence. If you start as a junior and don't have a CEO father, you may not be well-connected to powerful individuals in your firm or society. However, that doesn't mean you can't find a unique position to play in this social network.

Being a “broker” (or "structural hole" in social network analysis) allows you to occupy a unique position within the network, where you can transfer information, ideas, and resources between otherwise disconnected groups. By acting as a mediator or gatekeeper, you have the ability to bring different perspectives together and foster collaboration. This role can lead to valuable insights, innovative solutions, and increased influence within the organization.

From my personal experience as a year 2 analyst, I may not have extensive connections with managing directors who hold higher positions in the corporate hierarchy. However, I have developed strong relationships with consultants and analysts from other divisions, such as technology and the interactive department. In fact, we recently celebrated our first year anniversary at a nice hotpot restaurant on Hong Kong Island!

Engaging in daily conversations with colleagues from different divisions has provided me with a deep understanding of their working styles, main concerns, and communication methods. This has proven valuable when I encounter obstacles, as I can seek support and advice from friends who have similar project experience. Sometimes, all it takes is a little spark from someone else to trigger a moment of inspiration.

The rise of the House of Medici provides another fascinating example of the power of being a "broker" in a network. The Medici family, renowned for their patronage of artists like Leonardo da Vinci and Michelangelo, gradually consolidated their influence in Florence and became the dominant family in Italy for nearly three centuries. What's interesting is that they didn't start off as the wealthiest family, but through strategic actions and intellectual pursuits, such as philosophy and supporting the arts, they set themselves apart. Cosimo Medici, in particular, played a crucial role in their success.

Unlike the opposing families, who were more interconnected and decentralized, the Medici family positioned themselves at the center of their party. In network terms, they had the highest degree of "betweenness centrality," meaning they were the key bridge connecting all the families in the network. This advantageous position allowed them to rally allies, coordinate retaliation, and even influence a change of government when needed.

Cosimo's consolidation and exercise of power can be attributed to their understanding of and fortuitous position in the Florentine social and economic networks. By occupying a central role in the network and serving as a key communicator and intermediary, they were able to rally allies, coordinate retaliation, and effect a change of government. This strategic positioning allowed them to leverage their connections and exert influence over various factions, ultimately contributing to their power and success.

Unlock the power of networking by understanding network dynamics and leveraging structural "loopholes." Become a strategic bridge, connecting diverse groups and influencing outcomes for success. Let's embrace the possibilities together!

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