Several years ago, a university friend of mine was in urgent need of a management role in finance. She asked me to introduce her to Mr. E, a seasoned executive at a local bank with whom I had a close relationship. I was happy to make the introduction, assuming she was genuinely interested in the job due to her strong qualifications.
After Mr. E personally interviewed her and offered her a promising role, she surprisingly resigned just two days later. It was evident that she was waiting for another offer and left without considering the impact on me or the bank.
I deeply apologize to Mr. E for wasting his time and failing to anticipate my friend’s casual approach to the introduction. He graciously accepted my apology and emphasized the significance of reputation in business circles.
The essence of his advice was, “Relationships and networks are the lifeblood of commerce in Asia. Use them wisely.” This lesson has stuck with me, and I have refrained from seeking further introductions from Mr. E out of fear of similar outcomes.
The importance of reputation and relationships in Asia
The concept of “guan xi,” or relationships, is widely recognized in Asia as vital to business success. Relationships hold even more significance in business transactions and dealings in many Asian cultures.
When seeking a significant business favor, individuals carefully assess the risks, the strength of the relationship, and potential benefits before making the request.
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For instance, a startup founder was denied banking services because of perceived risks. When he inquired about the reasons behind the decision, he was told that his lack of familiarity posed a risk. The CEO offered to approve the facilities if recommended by someone with a good reputation, thereby attaching the recommender’s reputation to the endorsement.
Building connections
Entrepreneurs must establish connections and collaborate with stakeholders across the value chain to succeed. Leveraging networks to access strategic resources and collaborating across industries can lead to more robust solutions for clients.
However, building these connections can be challenging for new entrepreneurs without an established network. Utilizing existing contacts to facilitate introductions and validate credibility can enhance the success of initial interactions.
Developing professional relationships through referrals from within one’s network is often the most effective way to expand opportunities and resources over time.
A cost to reputational capital
Introductions require reputational capital from the introducer, as they vouch for the individuals being introduced. It is essential to establish trust and reciprocity before requesting introductions to maintain the integrity of relationships.
I am selective about making introductions, ensuring that there is trust in the person and a willingness to reciprocate favors if needed.
Respecting introductions
It is crucial to consider the impact of introductions on both parties involved. Expressing gratitude, being specific about objectives, and respecting the introducer’s relationship can lead to successful interactions.
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Do:
- Thank the contact promptly and respond respectfully within 24 hours of the introduction.
- Clearly outline your objectives for the discussion while remaining open to the contact’s perspectives.
- Arrive early for in-person meetings to show professionalism and respect.
- Acknowledge the relationship with the introducer to provide context for the interaction.
- Maintain courtesy, respect, and integrity throughout the discussion, considering ways to benefit both parties.
Expressing gratitude with sincerity
Establishing and nurturing professional relationships with sincerity and gratitude is essential for long-term success. Trust and reputation play a significant role in business dealings, especially when requesting and providing introductions.
Introductions should be handled with care and reciprocity, with gratitude expressed sincerely to build strong and lasting connections.
By cultivating meaningful relationships and expressing genuine thanks, founders can expand their networks and develop a reputation as trustworthy partners in Asia.
In conclusion, relationships based on trust and respect are vital in Asian business culture. Expressing sincere gratitude and building strong connections are crucial for fostering successful professional relationships.
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This article first appeared on TRIVE’s internal knowledge sharing.
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