As more and more people find themselves looking for a new opportunity, networking rises to the top of nearly every discussion.  While networking is certainly an important activity for anyone seeking to expand their relationships, the term has become synonymous with email blasts and busy work that I think misses the point. 

Think about how we communicate and get information; many times sitting in front of a computer by ourselves.  How many of us send emails and look things up on the internet rather than talk with someone; or better yet, meet someone?  More often than not, executives who find themselves out of work are trying to network and going about it the wrong way.  With the proliferation of on-line tools like linkedin and facebook, people certainly have better access to more impactful networks, but many have set the wrong goals for themselves.  Believing that the quantity of emails sent and received or how many contacts someone has on linkedin is "the networking fallacy".

At it's best, networking is an ongoing, long-term activity aimed at building and serving high impact relationships.  While developing new relationships and building a substantial number of relationships is important, networking is best measured by the quality, focus and follow through of your activities.  And the very best way to build and serve relationships is to spend time with people who care about your success, and in turn with those whom you genuinely care about. 

As an executive recruiter and adviser, you'd expect that I'd have a perspective and know how to network, but all of us need a little reminder from time to time.  Just the other day, a friend and client asked me, "How bad do you think the year will be for you?"  He was asking as a friend and knowing that this recession is taking it's toll on everyone, but the comments that followed were so true that I thought I'd pass them along.  He said, "You know, Rob people want you to succeed and they want to see you.  Now is the time when people are listening, and they want to know your perspective."

After the call, I was reminded of that TV commercial where the President hands out airline tickets to his sales team to go out and meet with their clients.  It's a good reminder for all us.  Take it from someone whose business and livelihood depends on it, networking isn't the goal it's just an activity.  Don't let "the networkig fallacy" take your eye off the real goal - building and serving high impact relationships.

After experiencing another challenging week with seemingly no end in sight, I asked myself, "What can we learn from all this?"  As an executive recruiter and adviser to leaders, I'm expected to have a perspective gained from exposure to so many people asking themselves this very same question.  Aside from the big picture related to the financial system and the political environment, everyone is being impacted by this recession in meaningful ways and there is much to be learned from how leaders are reacting to this crisis.

First of all, I'm struck by how consistent the issues are from one company and one leader to another.  In previous recessions and downturns, the impact was felt much more significantly in one industry versus another and some seemed untouched and strangely detached from the challenges others were facing.  Not this time - to a person everyone is directly impacted by this reset.  Secondly, the reaction is the same - tighten the belt and spend money on only those things that are absolutely necessary.  Regardless of how strong one company may appear on a relative basis, leaders feel a responsibility to reign in unnecessary spending.  As you would expect, this means that almost everything is "on hold" waiting for some time in the future.

So, what can we learn?  Interestingly, it is during times like these when we learn the most.  In these inflection points where change is occuring very rapidly we see businesses as they are.  As unnecessary spending is eliminated, we see what is absolutely necessary.  We see those products and services that each business can't live without.  As going concerns, these are the basic elements that will never go away, and the related business opportunities bring clarity to the key value that each of us bring to the party.  In my business for example, the three things that never go away are: 1) executive coaching; 2) C-level searches for leaders who absolutely must be replaced; and 3) due diligence on behalf of a company attempting to hire a leader on their own. 

Think about your own experience and the demands on your business.  While you are likely involved in a multitude of activities, the key indicators of how you can best add value as a leader or a business are best seen in times like these.  What is your value proposition and how can you improve your career or business by focusing on the necessary things that will never go away?

During a recent meeting with a CFO the other day, we gravitated to the topic of the financial system and what needs to be done to fix it.  Seeing that I was listening to a highly quantitative and analytically oriented CFO, I expected a "Greenspan-esque" discussion of capital ratios and esoteric analysis of mark-to market accounting, but instead we talked about the stock market and the psychology of the markets.

He went on the say that he really didn't see a clear solution of how to fix the financial system or how best to deal with the toxic assets, but he did say that the flow of credit was the key.  I asked him if he had any difficulty funding his business and whether he was satisfied with his banking relationships, and he said, "We've actually reduced our outstanding debt and my lead bank has made it clear they'll give us the credit line we may need in the future."  Of course, he wasn't asking his bank for credit today, but he was primarily expressing the need for others to get credit more easily.  We then discussed the fact that most CFOs and individuals are de-leveraging if they can, and that it's really the marginal credits who can't get the loans.

Isn't that what's supposed to happen?  Wasn't it the easy availability to credit that got us into this mess?  In any event, he thought that the most important factor to consider in getting credit flowing again is consumer confidence.  And guess what he thought was the most important factor impacting consumer confidence - that’s right - the stock market.  "By the way, how is the market doing today?"  I think we can all relate to that.  Don't we feel more confident when the market goes up 300 points one day and another 250 points a couple of days later like it did this week?  Don’t we all feel like we shouldn't be so worried; that everything will be alright; especially when the market does well?  And then during those weeks when the market went down 10% in a single week, haven't we wondered just how low can it go and could we be completely wiped out?

The CFO went on to say, "I really don't care what Geithner does as long as he does something and the markets like it.  When the markets come back, consumer confidence will come back; and so will spending and the flow of credit.  All we really need is a few good days and weeks in the market and then everything will begin to turnaround." 

Wow!  Thank goodness it's all just based on how the Dow does today.  The market went up almost 10% this week…everything must be OK now.

Are we too focused on the market?  Is it really just about our portfolios and consumer confidence?  Let us know what you think.