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Early on in this entrepreneurial journey I discovered a somewhat unspoken truth about revenue growth: get busy and business comes – albeit from places you would least expect or predict.  I think this is something many other entrepreneurs experience and when I heard someone say it out loud, I was like – OMG – that has been my experience too!  A while back I wrote a post about how trees serve as a great metaphor for entrepreneurship – now there is an extension to the analogy: when you shake the tree, fruit falls.

As many of you know, networking has become a big part of Keyhubs’ business development strategy.  We started out networking for selfish reasons, but have learned that it is actually a fine art – a perfect opportunity to pay-it-forward.  Done correctly, we believe it can take individuals and businesses on magical and mysterious journeys of untold personal and professional growth.

That’s all fine and good, but it was not until we took a closer look at our expenses for 2011 (in preparation for tax filings) that we realized how inexplicably linked networking was to revenue growth.  Can we quantify this tree-shaking phenomenon?

Below is a graph – the green line represents our monthly revenue in 2011.  The blue line is how much we spent on face-to-face networking (business lunches, coffee chats, etc.) over the same period.  Revenue is significantly larger than networking investment; however, the graph axes have been normalized for better visualization.

At first glance, one would say sure – you spend time and money on meeting people and that will lead to business.  Make business calls and you will land new deals.  Yet, less than 25% of our revenue in 2011 can be traced directly to our 2011 investment in networking.  Yes, the more active we were, the more business we received; however, the two were not neatly tied together in cause and effect.  The simple act of networking seemed to generate business, but from unexpected and unrelated channels.  Busy-ness led to business, but not in a way that was predictable.

What are the chances the two measurements would line up so nicely?

While we need more data points to draw strong statistical conclusions, the exercise has reinforced our belief that when you connect with people unselfishly, business has a way of boomeranging back. We love to network for networking sake - we do it because we want to get to know and help people. We find that when we approach networking from that perspective, the Network rewards us with new leads, opportunities and business in ways that are both miraculous and unfathomable.

What has been your experience?

Vikas Narula (@NarulaTweets) is Creator and Co-Founder of Keyhubs (@Keyhubs) – a software and services company specializing in workplace social analytics.

Photo source.

These experiences give ammunition to comic writers and cartoonists alike. You do not need to go far or read sophisticated business journals to understand why reorgs often do more harm than good. Are they really happening with purpose or are they just a plot to cover up bad decisions?

Not only are the motivations of reorgs suspect, they seldom take into account the informal tapestry that exists in the organization.  If you are going to do a reorg, wouldn’t you want to fully understand the talent and influence dynamic first? Wouldn’t it help inform who goes where?

Fortunately, more companies are bucking the status quo.  Rather than rely on the opinions of a few executive leaders, some organizations are capitalizing on the wisdom of crowds to help make reorgs meaningful, engaging and effective.

How does your company fare when it comes to reorgs?  Do they do it with purpose and insight or is it more of a Dilbert exercise?

Vikas Narula (@NarulaTweets) is Creator and Co-Founder of Keyhubs (@Keyhubs) – a software and services company specializing in workplace social analytics.

One of my long-time mentors and inspirations told me early on that whatever happens, the experience will be priceless - it will be worth all the fear and anguish.  I didn’t believe him at the time (in my estimation failure was not an option), but in hindsight his words could not be closer to the truth.

The greatest benefit from the entrepreneurial process has not been the financial gains itself, but the life lessons that have come along the way.  One such powerful and life changing experience was the magic and mystery of networking.  Yes, there have been countless individuals who have selflessly helped us move ahead.

In recent months, however, I have come to see that there was another core group of people, which I have long failed to acknowledge or recognize, who have been just as, if not more, critical in helping me get to where I am.

My “Enemies”

These are the people who wronged me in some way.  Treated me badly or unfairly.  Got under my skin and ruffled my feathers.  You know, the stuff friends would never do.  Yet, it was their bitter “medicine” that really got me moving.  It was their harsh behavior that forced me to take a serious look in the mirror and say: Is this what I want to do for the rest of my life?  Am I living up to my potential?

I am not saying that you should jump ship whenever you encounter difficult people.  I stayed with my first employer for 11 years and my second one for 4.5 years before starting my own venture.  That said, in both transitions the forcing function was a person at work that just pushed me over the edge.  I resented and despised them at the time (and for many years after the fact), but if it were not for them I would likely still be punching the clock at the same company I started with when I graduated college.

Without my enemies, I would not have reached beyond the status quo.  They increased my desire to seek greener pastures and served as a key lever that quickened my own development.  They put me on the path to finding my element and allowed me to enjoy the kind of autonomy and flexibility that comes with being your own boss.  Heck, I would not be writing this blog if it were not for two very important “adversaries” (i.e. change agents) from my professional past.

Today I salute them with a whole heart (and have reached out in reconciliation).  The entrepreneurial process has helped me see them for who they are – vital catalysts for growth and progress.

Forget me – I am just a small time entrepreneur.  Think about what would have happened without these fateful antagonisms (to name a few):

1) Would Toy Story have happened if Steve Jobs had not been pushed out of Apple?

2) Did you know that Mickey Mouse may have never been if it were not for a devastating professional setback imposed on Walt Disney by then distributor, turned enemy – Universal Pictures? (Who’s heard of Oswald the Lucky Rabbit?)

3) Would we have 1000 Awesome Things without Neil Pasricha’s string of tragic events? (Some of our most ferocious foes come in the form of unwanted life circumstances.)

Maybe “enemies” are a necessary “evil” – how we react to them can mean the difference between crushing defeat and our best work. I hope I can put my adversaries in perspective as I move forward – rather than push them away – embrace them as a force for positive transformation.

How have your enemies changed you for the better?

Vikas Narula (@NarulaTweets) is Creator and Co-Founder of Keyhubs (@Keyhubs) – a software and services company specializing in workplace social analytics.

Peter Drucker (management science pioneer and guru) has said that “culture eats strategy for breakfast everyday”.

A great example of this is the following (brilliant) depiction of corporate “org charts” for major tech companies, by Manu Cornet.  It went viral earlier this year and perhaps you have already seen it.  Either way, it is worth another look:

I think Manu Cornet’s illustrations resonate with so many of us because they are a simple, humorous, yet honest portrayal of how the fabric of human relationships (and the differences, nuances thereof) = culture.

While companies look to their org charts as pathways for executing on strategy, our intuition and experience tells us there are informal channels and relationships that largely dictate how work really gets done. Each company’s ”networks” are different and unique. They can be quite independent of hierarchy and form the basis for culture.

Following are network maps for two organizations we have worked with.  On the top is a view of the informal knowledge network – who people rely on to get their work done. The view on the bottom is that same network overlaid on the organizations formal org chart – real world, self-reported examples of Manu’s profound insight.

What does this tell you about the corporate culture of these two organizations? Do they resemble any of the major tech companies?  Does it help inform how a leader ought to approach change, strategy and / or communication?

Understanding informal networks enables leaders to align the organization (not the org chart) with its strategic direction and move more quickly and effectively. Once you get the culture, you can execute on strategy with greater ease and efficiency.

Do you know what your network culture looks like?  If not, it might be eating strategy for breakfast…everyday.

Vikas Narula (@NarulaTweets) is Creator and Co-Founder of Keyhubs (@Keyhubs) – a software and services company specializing in workplace social analytics.

When you break it down and trace the moments that make an “event” like this happen, you begin to appreciate the finer, subtler things in life – namely, the magic of networking and the mystery of time and space.

This is how it happened.

The Long and Winding Road

The Line writer, Elizabeth Millard, read about us in the Twin Cities Business Journal and expressed interest in writing a story as well.  (The Business Journal article also led to the following write-up on my alma mater’s website).

So, how did we land in the Twin Cities Business Journal?  This is where the fun begins.  I met the writer of the article, Kathy Grayson, about a year and half ago.  After giving her my pitch, she politely asked who some of our local clients were.  At that time, we didn’t really have any.  She thanked me for my time and asked that I keep her posted on new (well known) clients that we engage with here in the Twin Cities.  That was a fair and valid request.

As months passed, I would update Kathy on our progress.  I would email her whenever we secured a new project and I included her on my blog and news emails.  Despite sending some personal follow up notes, I never heard back from Kathy….until I sent her the following video interview of Harold Hegg from Thrivent Financial.

We were introduced to Harold by Chris Stewart, who heard about us via a student intern at Thrivent that was tasked with searching for social analytic software tools.

Thrivent became a customer and I invited Harold to speak at an executive roundtable hosted by Diane Nettifee’s Magis Ventures.

I met Diane through another contact, Annette Setterlund.  Diane introduced me to Kristin Wiersma of Seraphim Communications.  They specialize in telling corporate marketing stories through video and multimedia.

When it came time for Harold’s roundtable event, I hired Seraphim to video the interview, so we could share it with the world.

Connecting the Dots

None of this would have happened if it were not for Annette Setterlund and I would not have met Annette if it were not for Keith Setterholm.  I literally met Keith in passing at a Minnesota Organizational Development Network meeting in June of 2010.  We exchanged business cards and he expressed interest in learning more about Keyhubs.  A couple of months later he introduced me to John Vollum and after a few follow up meetings, they both brought me to their good friend and long-time colleague, Annette Setterlund.

Through several degrees of separation, seemingly random connections and unpredictable relationships, the Keyhubs story found its way on to the desks and screens of hundreds, if not thousands of business people around Minneapolis, St. Paul and beyond.

The press buzz we enjoy today really had its origins in a “chance” meeting with Keith Setterholm over 18 months ago. Note: Keith does not have a website and at the time of this writing he had one follower on Twitter. While the business world flocks to capture and leverage online Klout, let’s not forget that our most potent connections may be right in front of us. You never know where your link to “success” is going to come from — the dentist’s assistant, an old acquaintance or the person next door. The key is to treat all with the same level of respect, reverence and kindness.

Is there a faster and better way to get media attention?  Probably (although, I did hire a PR firm about 6 months ago to no avail).  The press buzz came from good ‘ol fashioned, face-to-face networking and relationship building.  And you know what?  I have so thoroughly enjoyed the process of getting to know Keith, John, Annette, Diane, Kristin, Chris, Harold, Kathy and Elizabeth, that I wouldn’t trade those connections for a front page article in the Wall Street Journal.

Relationships – The Essential Glue That Binds Us All

The beauty of relationships is they are not a one-time deal.  They are not like a media frenzy that comes and goes.  They are priceless gifts that keep on giving, now and into the future. What could be more valuable?

I hope this story serves as yet another simple but powerful example of the potency of networking and the pricelessness of relationships.

Do you have a networking tale of magic and mystery that has transformed your life or business?  Share it with us in the comment section below or email me at vnarula[at]keyhubs.com.  We would love to include your stories in a future blog post.

Thank you!

Vikas Narula (@NarulaTweets) is Creator and Co-Founder of Keyhubs (@Keyhubs) – a software and services company specializing in workplace social analytics.

http://thelinemedia.com/features/keyhubsfeature110211.aspx

As sad as it is to no longer have Steve with us (in physical form), it is somewhat “fitting” that he left the world now….at the height of his success, at the top in so many ways – completing a phenomenal life / business story only the Universe could dream up.

He was a man that epitomized the virtue of quality over quantity – through design, through human-machine interaction and through corporate messaging. His time here on earth was no different.  In every way, Steve Jobs exuded the principle of less is more.

Aside from creating a string of products that we would salivate over (or camp in a parking lot for), Steve brought to the world a new and better way of delivering technology – with simplicity, elegance and grace.  The less-is-more-philosophy is much easier-said-than-done. Steve Jobs made it look effortless.

We not only enjoy his ingenious devices, many of us seek to instill his brand brilliance into our own work.  The founders of the last two companies I worked for were greatly influenced by Steve Jobs.  I have been influenced by Steve Jobs.  Anyone who has designed anything in the last 30 years has likely been influenced by Steve Jobs.  And, in a hundred years when someone comes up with the next big thing, I bet we’ll be able to trace the lineage back to a man who made 1984 feel like 2004.

Steve is gone.  Apple could go away someday. People might forget about the Mac, but I believe the story of Steve Jobs and his philosophy, which he so magnificently manifested through technology, will live forever.

Vikas Narula (@NarulaTweets) is Creator and Co-Founder of Keyhubs (@Keyhubs) – a software and services company specializing in workplace social analytics.

Photo: AP