Sandra Navidi - SuperHubs - How the Financial Elite and Their Networks Rule our World

Digital Bits versus Human Touch

In an interview with the Financial Times, Klaus Schwab predicted that “in twenty, thirty years’ time, people will not go to conferences any more,” because “the digital dimension will change how people interact and how conferences are done.”4 How do new communication technologies impact the networks of leaders in finance? Do they make personal interaction less relevant or even redundant? Much has been made of the possibility to connect with people through the Internet. Revolutionary developments in telecommunications have reduced the dimensions of time and space, allowing connection with anyone anywhere at any time. Wireless technology added vastly increased capacity and connectivity at unprecedented speed. Nowadays, the Internet is the nerve center of communication.

While technology serves as a connector, it also establishes a barrier. Both the connecting as well as the separating aspects have value: Electronic networks can grow exponentially faster than personal ones, enable a dialogue with an audience unlimited in number, and assist the organization of social or political movements. At the same time, these networks can lead people to retreat from direct interaction. The harshest critics argue that technology degrades our being as an individual and deemphasizes personhood.5 In their view, we embrace the illusion of having close relationships without making the requisite investments and sacrifices; we “give human qualities to objects and . . . treat each other as things.”6 Indeed, sanitized electronic communications make it more difficult to ascertain people’s authenticity. They can misrepresent their identity, distort facts, and hide intentions without broadcasting any conventional warning signs, therefore manipulating human relationships. Subtle communication nuances such as tone and inflection often get lost in email. Video conferences are the next best thing to face-to-face meetings, but they cannot replace them as participants cannot engage in direct eye contact, exchange handshakes and other personal gestures, or interpret nonverbal cues. Thus, digitized interaction is superficial at best and fragile at worst. Internet-based social networks such as Friendster and Myspace are often fleeting. With no barrier to entry, users have little loyalty and move on when the next best thing comes along. If technology fails, or is blocked by governments, connecting becomes impossible.

According to the Pew study Social Isolation and New Technology, people still prefer face-to-face communication as the primary means to stay in touch.7 A deep and trusting relationship is a privilege that must be earned with an investment of time and effort, tested through adversity, and fostered through mutual experiences. Also, the scarcer human interactions become, the more valuable they will be. That’s why over scheduled financiers, time-pressed CEOs, and over stimulated billionaires invest time and effort to attend international gatherings around the globe. Thus, while algorithms can help support the maintenance of personal relationships, human interactions are so complex that digital bits will never truly rival or replace them.

Beyond Networking: How to Win Friends and Influence People

Networking is aimed at building, maintaining, and using informal relationships to facilitate work-related activities and gain access to resources.8 The best networkers practice a holistic approach of “positive linking,” because they are genuinely interested in other people, always want to learn through the mutual exchange of thoughts, and enjoy communicating and connecting. Malcolm Gladwell recognized that a small number of people, the connectors, have a truly extraordinary knack for making friends and acquaintances.9 They are the threads that tie society together and are an extremely important component of our social networks.10 Superhubs all have this network mind-set; they are the “chief network officers” of Me, Inc. Throughout their lives, they tirelessly and effortlessly cultivate a circle of influence. Everything they do promotes networking in a feedback loop of cause and effect. Networking feels natural to them, and they have a knack for placing others at ease. They value quality over quantity, connecting over collecting, and farming over hunting. Often, long-term relationships start out without any specific motivation or business purpose and mature over time, withstanding trials and tribulations before culminating in mutually beneficial relationships.

Having a networking mind-set entails being open-minded. Successful CEOs are curious, seek challenges, push boundaries, and are unafraid of risks or failures. In their lifelong quest to learn and expand beyond the status quo, they embrace the opportunity to meet new people. They usually have a positive view of humanity, seek out new acquaintances, and build relationships for the long term. Generally, when we meet new people, we quickly prejudge them in line with our biases to save time and stay within our comfort zone. Great networkers keep an open mind; with their high emotional intelligence, they create true connections and make others feel comfortable in their presence. That’s important, because “people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”11

Top networkers are memorable. It is not simply who you know but, even more important, who knows you. It helps to stand out in a positive way, be it by way of charisma, intelligent contributions, quick wit, or acts of kindness. Pleasant, energetic people with appealing personalities and excellent social skills will always have an easier time obtaining support, information, and feedback. Josef Ackermann, longtime CEO of Deutsche Bank, coined the phrase “The right personality can learn anything, but you can’t learn to have the right personality.”12 Deep and resilient relationships cannot be built on schmoozing alone; they must be based on content. Superhubs like to spend time with interesting people who bring conversational currency to the table. Klaus Schwab, the founder of the WEF, has emphasized that great networkers are not only seekers of knowledge but also catalysts in the exchange of ideas.

Powerful CEOs utilize the power of association with other powerful people. Networks are only as valuable as the caliber of people comprising them and as strong as the relationships within them. Since a specific network configuration can increase its effectiveness,13 CEOs increase their connectivity if their contacts are well connected in turn. Exclusive networks by definition exclude the majority of people, often by instituting high barriers to entry. Superhub platforms are like invitation-only clubs where the demand for memberships exceeds the supply, and superhubs know how to overcome high barriers by way of status, reputation, and connections. The higher the rank, the more homogeneous the people who interact, and the lower the barrier is for peers. Homogeneity within a group facilitates familiarity—or at least the illusion thereof—and peers typically respect one another’s achievements, even if they compete. Yet, on this level, their relationships are still subject to rivalries, resentments, favoritism, and peer pressure.

These pillars of finance may perhaps be blessed with more professional strengths than the average person, yet they are certainly not immune from human weaknesses and vulnerabilities. Networks can lend them psychological support during setbacks and times of stress. Who can better understand you than someone who has faced similar challenges and experiences? Personal alliances provide the support and caring that emboldens superhubs to overcome difficult situations. The various overlapping spheres of personal life, such as friendships, social circles, and charities coupled with the professional realm—are woven together into a tightly knit fabric.