Behind The Chinese Networking (GuanXi) Buzz
By Michael Connolly
Shanghai is abuzz with the murmur of networking. Every week in Shanghai, countless events are held for ambitious fortune seekers relentlessly practicing the art of handshaking, exchanging mingpian, and of course, building guanxi or “relationships.” Many residents in Shanghai will testify that attending networking mixers is a great way to expand contacts, establish face-to-face exposure, and in general, meet some interesting people.
Social networking gatherings are still primarily a Western concept. In China one builds guanxi through introductions by family and friends, or by doing favors. The idea of holding public meetings for the purpose of making new connections and expanding relationships is still relatively new in China, but in today’s dynamic business climate it has become essential to have a multitude of connections, while still managing them effectively.
Networking is nothing new, of course. Every salesperson knows that they need to develop a base of contacts, and every businessman in China understands that he needs guanxi. In China, everything of consequence gets done through a person’s guanxi. The difference between Western-style social networking and Chinese-style guanxi has to do with the specific rules governing interaction in the social network. At some point, for a Western businessperson trying to reach a local Chinese business prospect, a cultural threshold must be crossed. Western business rules that dictate how to do things must eventually yield to the mysterious rule of Chinese guanxi. Still, the “Six Degrees” concept applies. The person seeking contact probably knows someone, who knows someone, who knows someone (and so on), who knows the prospect. This is a core concept in both Chinese guanxi-building, as well as in the Six Degees of Separation (or Small World) Theory.
Science is proving what we already know
In his seminal work, American sociologist Stanley Milgram advanced and empirically tested the theory of “six degrees of separation,” which states that any randomly selected pair of perfect strangers could be associated through no more than six common acquaintances. In one of his tests, Milgram successfully built associations between test participants in two different cities and two other participants living in Boston. The procedure was done by asking the first participants to mail a brochure to the Bostonians, using no more information than a common set of acquaintances. Columbia University began to test the six degrees of separation theory in 2002 on the Internet. Initial findings suggest that the “will” to communication outweighs the “means” of communication.
The Steps to Developing Good Guanxi
So what does one do with the pile of business cards collected at these networking events? First, it is important to realize that each connection can have hidden value, so it is prudent to look at more than the immediate needs and instead to treat each contact as potentially valuable in your personal six degrees network. While the person may not look, at first impression, like a particularly appropriate business contact, the act of just following up might make enough of an impression to open the door to further opportunities. Collecting business cards and shaking hands is only the first step. At some point, each connection has to develop some level of substance.
The next step is to simply follow up. If a person is serious about strengthening connections from the first handshake and business card introduction, then they have to be organized in a systematic way. Making the new contact a part of one’s social network is next. The savviest network builders may automate the tracking and maintenance of his/her addresses through an online tool, but such thoroughness requires the discipline to get the information from the collected business card into the software.
Is Guanxi about Quantity or Quality?
A management consultant and author, Patricia Durovy, has stated that success in business is directly related to the QUANTITY of communication that is sent out. Once a connection is made, each person needs to manage communications with the people in his or her network so that connections become stronger and continue to develop. It may require a bit more work, but with the technology tools available, having a good six degrees network is not difficult and will pay for the effort by making it easier to get things done.