Thoughts On The Tech Industry

Relationships As Currency

There is an old saying that relationships are the currency to do deals.  It's amazing to see the number of professionals in the technology industry who do not have well developed professional networks, nor do they spend any time maintaining them.  In fact some consultants in tech purport to be experts in building alliances and relationships, and have very poor networks themselves.

I just read a fascinating article in the December 2005  Harvard Business Review  entitled How To Build Your Network, by Brian Uzzi and Shannon Dunlap  Some great points are made about the business benefits of a strong professional network; namely, access to skills, access to private information, and power.

For any deal maker wanting to get ahead in the tech sector, seems there is a very straightforward recipe for success with regards to building a network:

• Recognize the importance of your network - You've got to recognize the opportunity before you can do anything about it, right?
• Actively, and carefully, build your network - Quality trumps quantity.  A very small, but high quality network, is infinitely more powerful than thousands of casual relationships.  Building strong professional networks is not an exercise in email harvesting like minded charlatans.
• Work a reciprocal model - 'You get when you give'.  Building, and utilizing, relationships are about exchanges of value.  You can't ask a lot of those in your network if you don't provide as well.

"We Handle that Internally"

Ever tried selling new technology to one of the technology companies that are "on fire" today? You know - the companies whose stock prices are going through the roof (still), and whose founders appear regularly on the covers of the most fashionable business publications?

These are the leading technology companies in the world today. They're into (nearly) everything - search engines providing wireless service; auction firms selling VOIP; free, valet parking and gourmet meals on campus, and more...

So you have a "warm introduction" to the company - a colleague provides the contact and a nice entre - and you're looking at a prospective customer that you know has the money (and the need) for your product, service, etc...

Of course, you get the chance to make your pitch. The people you present to appear to listen intently. They're amused. They're intrigued. They're interested.

Unfortunately, what you ultimately hear are those familiar words: "We handle that internally. Yes, we understand the technology. Yes, we have it too. And yes, we handle it internally. Thank you. We'll contact you if we become further interested."

Hey, these folks are sharp! It's understandable - they probably do handle it internally. They're doing everything else right. Right?

The next thing you know, you see a news report, hear a story, get word of a rumor -- That fabulous technology leader has a problem. Geez, they could have used your product (service, technology, etc.)!!! Time to call again? Is this your chance? Is this the opportunity you were waiting for?

Nah - They handle that internally.