Strategic networking

I’ve mentioned it before but it bears repeating: Successful entrepreneurs master four essential skills. First, they build and sustain effective teams at all levels of the organization. Second, they implement efficient systems that are capable of processing the data and running the equipment for the company. Third, they are strategic networkers both within and without the business. Finally, they understand the role of the CEO within a capitalistic environment.

By strategic networking, I mean that they don’t just attend random social events. Rather, they are very selective as to the events they attend and the results that they desire to achieve by attending them. For instance, a CEO has to build effective internal teams to operate the organization efficiently in regards to the needs and size of the business. A $10 million company has very different operational needs and requires individuals with very different skillsets that does a $1 million one. Team members would include individuals with skillsets in finance, operations, marketing, human resources, administration and so forth.

A CEO also has to build an external team of individuals with diverse areas of expertise. These areas would include legal and government regulations; finance and tax issues; market analysis, sales and marketing; supply chain and pipeline expertise; human resources, industrial psychology and compliance; manufacturing and distribution, to name just a few.

As you can see, the job of a CEO (or owner/president) has tentacles that reach far beyond the expertise and capability levels of any one man or woman. And the larger the organization, the more important it is that CEOs are able to network both effectively and strategically. When a particular problem or issue arises, effective CEOs have a Rolodex (to use a somewhat outdated term) full of names and resources to turn to.

How it works in the field

Recently, I joined forces with fellow entrepreneurs Kris Ashby, president of Spectrum Landscape, and Chase Coates, president of Outback Landscape, and formed Green Metrix, a consulting and event company based in Idaho. We held a site visit at Chase’s company in Idaho Falls in September of this year. Fifteen companies with 30-plus individuals attended the two-day event. The purpose of the site visit was two-fold. First, it was to introduce attendees to Outback Landscape, its team and systems. Outback Landscape is a full-service landscape company that employs approximately 75 employees at peak season. It implemented industry-specific software three years ago. Second, it provided the opportunity for attendees to network with other green industry professionals and to share and discuss “best practices.”

Our group assembled at 6:45 a.m. at Outback Landscape’s yard and watched the crews roll out starting at 7 a.m. General Manager Brandon Schiff was in charge of the rollout and by 7:11 a.m., all crews had departed the yard and were off to their assigned jobs.

After the rollout, attendees cycled through seven stations (president and marketing, general manager, finance, customer service, sales and design, maintenance and enhancement production and construction production) where Outback Landscape managers explained the processes in that particular area of the business and answered questions from participants. Since Outback Landscape uses software that links the entire company together, many of the questions centered around it, its use and the way the various departments use it. This was especially useful since almost half of the attending companies either currently use the same software or are in the process of implementing it.

The site visit wasn’t all work, though the two evenings when we gathered after hours weren’t just haphazard social culinary events. Rather, they were designed for attendees to interact, exchange ideas, get to know one another and connect with fellow green industry professionals. Similar to previous such events, it’s expected that many of the attendees at the Outback Landscape site visit will remain in contact throughout the remainder of their careers.

Conclusion

You may not particularly like networking, socializing and the crowds that accompany such activities. I understand that. It’s not necessarily my cup of tea, either. However, I’ve come to realize that strategic networking is an essential part of a successful CEO’s repertoire. Today’s business environment is just too complicated and technical for one person to know and understand it all. I’d encourage you to step out and get connected. Choose a local venue such as an association, distributor or educational event; and plan to attend with some specific learning goals in mind. If possible, take some company personnel with you and conduct a “post-mortem” afterwards where you discuss the pros and cons of participating. Remember, focus on strategic issues and connecting with key people who could be of help to you and your team in the future. If you do, I think that you’ll agree that it’s time and energy well spent.

Travels with Jim follows Jim Huston around the country as he visits with landscapers and helps them understand their numbers to make smarter decisions. He can be reached at: jhuston@jrhuston.biz.