Posts Tagged ‘referrals’

Uncommon Leverage

Friday, March 17th, 2017

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On a small number of occasions, I am in a position to, and I have the volition to introduce one of my clients (corporate executive or a HNW private investor) to another member of my global professional communities. My litmus test is a belief that there is a high potential of a mutually-rewarding relationship, formal or informal. My motivation is reciprocal value. The two-way goodwill and value generated between the client and member of my global processional community and both parties with me.

Sometimes there is an immediate reward (a referral, an offer of help or a polite thank you) and on other occasions, a longer-term reward (consideration paid for the value created, more referrals and other non-financial benefits).  I’d say less than 5% of my global communities (circa 2,500 people) ask for my help, unprompted. Of those perhaps only 30% reciprocate with a non-financial reward (referral, reciprocal help, thank you). Less than 20% provide unsolicited feedback on the accuracy of my suggestion and the results that unfolded after the introduction. Only 10% ask for further help unprompted (introductions to others). Yet here is some examples of the reciprocal value created amongst members of my communities with my help in the past 12 months:

  • CEO of a mid-sized European hospitality company introduced to seller of hotel chain, valued at £162M
  • US restaurant franchising business introduced to 6 potential strategic franchising partners in the EMEA region
  • Assertive US buyer of  high growth insurance businesses, introduced to 4 potential sellers, 2 advanced negotiations
  • Asian Family Office introduced to 14 target businesses and 4 direct/co-investors in US and Europe
  • Global insurance executive introduced to 3 new career roles and 4 potential NED roles
  • Publisher of leading financial publication introduced to 3 sponsors and 7 contributors
  • Leading European private equity event host introduced to 3 speakers, and event promoted to 350 potential attendees
  • Real estate advisory firm introduced to 6 sellers of off-market assets totalling $1.9bn
  • Family Office direct investor introduced to 11 potential co-investors
  • 14 high growth entrepreneurs introduced to 33 investors, 4 providers of serviced office space, 22 bankers, 11 lawyers, 14 accountants, 4 graphic designers, 2 web designers and 22 other advisers.

My point here is there are “high potential” people in all our contact databases, who can, and in the right circumstances, have the volition to provide you tremendous reciprocal value. What is there to fear? We know them personally or professionally, we may have spoken this week or perhaps 3 years ago. They have helped others, and you have helped others. They have risen to where they are because they had the volition to ask for help, why should you be any any different? They are not providing reciprocal value to you because

  • In 90% of occasions, you haven’t asked them or in the right way.
  • You lack the discipline and organisation to create leverage.
  • You lack the skills (what language to use) to create leverage
  • You have an attitude problem (“I am too busy”)
  • You seek comfort in pseudo “connectivity” (burgeoning connections or followers on LinkedIn, Facebook or Instagram) and forego nurturing real relationships (reciprocal value).
  • You don’t hold yourself accountable or accept accountability from others.

All of us have a need to grow our career, our job, our client work, our investor base, our learning and development, our lives, our personal interests and so on. For a great many that is “stop-start”. The problem is nurturing a sufficiently large group of high potential people and gaining their agreement to help (“powerful leverage”) is rarely something that can be accomplished by a shake of the reins. It needs constant nurturing daily, weekly, monthly and quarterly.

Ask yourself a simple question, “Who are the 6 people in my contact database, who can have the greatest impact on me getting to where I want to be in 12 months time?” Then, “How do I best elicit their support? (give to get). “What do I need to do more of, stop doing, do in a different way or start afresh, today?” Schedule that in you diary this week. Take action.

© James Berkeley 2017. All Rights Reserved.

Judging People

Thursday, March 2nd, 2017

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An Asian investor says to me last week, in response to a rare suggestion that he might want to meet a particular individual, “I have so many people asking to meet me when they are in town, I have to decline most offers. Can you send me a few details.” This just after he has taken 15 minutes to frame, who ideally he would like to meet. We have reached a point where we don’t trust our own judgement and those we invest time soliciting advice from. We are constantly second-guessing ourselves in the belief that a better alternative or use of our time will arise. By all means, be judicious with unsolicited requests to meet but stop procrastinating, start having more faith in your own judgement and those around you. You’ll surprise yourself how much faster you will move towards your goals.

© James Berkeley 2017. All Rights Reserved.