MGT 340 Chapter 8: Developing Networks and Building Teams Study Guide (2023-2024) PDF

Chapter 8: Developing Networks and Building Teams Dr. Kipp A. Krukowski MGT 340 – Fundamentals of Entrepreneurship The Value of Networks • • Social Capital - personal social networks – Private information - Gather unique information from network contacts – Diverse skillsets - Allows you to tr...

Chapter 8: Developing Networks and Building Teams Dr. Kipp A. Krukowski MGT 340 – Fundamentals of Entrepreneurship The Value of Networks • • Social Capital - personal social networks – Private information - Gather unique information from network contacts – Diverse skillsets - Allows you to trade information and skills with others – Power - Can provide expert advice and introductions Important to maintain your network – Research shows we can: • Mange up to 25 relationships • Maintain up to 150 relationships Building Networks • • • Check online for public calendars of local events – Guest speakers at universities, chambers of commerce – Online events Participate in organizations for Entrepreneurs – Entrepreneurs’ Organization (EO) – National Association for the Self Employed – National Federation of Independent Business – United States Association for Small Business and Entrepreneurship – Others Incubators and Accelerators Networking Prep • • • Impression management - attention to how people perceive you and taking steps to be perceived in the way you want – Examples: Dress, body language, polite and courteous, confident and open – Self-confidence Before you attend a networking event, do your research – Who might be there? – Whom would you like to meet? – What are you going to say? Prepare Your Elevator Pitch – Well rehearsed answer to the question “Who are you and what do you do?” Networking Tips • Put away your cell phone! • Make a habit of “reading” the room when you arrive – Resist “hanging” with people you already know – Look for an individual or group of 3 to join – Two individuals might be having a private, important discussion • Look at nonverbal cues (Body language, eye contact) • Commit fully to the discussion and look people in the eye when talking with them • Be careful not to dominate the conversation Networking Tips • When asking questions and actually listen to the answers! – • • • Use this information to potentially adjust your “pitch” Focus on building a relationship, not “selling” – Use their first name in the conversation – Try to have a meaningful dialogue, not just small talk – Look for commonalities Be a Connector – Look for ways to help – Introduce them to your network Find appropriate time to excuse yourself from conversation – Try to limit time with each per person if goal is to meet multiple potential contacts Other Tips • Keep right hand free – eat before you arrive • Professional Business Cards – • • Easy Access, Safe Storage Take notes (back of business card works great) – Where you met – Something specific about the conversation so they will remember it – Interests, commonalities, etc. Follow-ups – Short note or email within 24 hours – Consider connecting on LinkedIn or other professional networking sites Mentors • • Mentors can be an invaluable resource – Advice based on years of experience – Warn you of known pitfalls – Open doors with connections Self-selected stakeholders - people who “self-select” to connect entrepreneurs with resources – Help steer the venture in the right direction – Voluntarily want to help you build your business – Without a hidden agenda or motives, a huge opportunity to build a better business The Founding Team • Founding team - group of people with complementary skills and a shared sense of commitment coming together in founding an enterprise to build and grow the company • Studies show ventures started by teams usually perform better than those of individuals • Characteristics of a great Founding Team – Possess the right skills – Take a hands-on approach – Use positive problem solving – Leave ego at the door – Share similar attitudes toward values, goals and risk – Care deeply Value of Team Diversity • Two kinds of teams in terms of demographic diversity: – Homogenous team: Same or similar characteristics such as age, gender, ethnicity, experience, etc. – Heterogeneous team: Mix of knowledge, skills, and experience • Team commitment and cognitive comprehensiveness matters most • Cognitive comprehensiveness - Process which team examines critical issues with a wide lens and formulate strategies by considering diverse approaches, decision criteria, and courses of action. • Groupthink - Phenomenon where people share too similar a mindset (want healthy conflict) What we may not see 3 Key Points • Entrepreneurs must embrace networking even if it is uncomfortable. Be committed to it and be strategic. • Founding team selection is important. Know yourself and get to know others before committing. • Understand the dimensions of diversity and consider how you can use this to better your organization. Questions? Dr. Kipp A. Krukowski MGT 340 – Fundamentals of Entrepreneurship