Network Brokers: Bridging the Gap for Business Success

Consider a scenario where a team of five individuals is tasked with identifying a shared symbol from a unique set held by each member. The challenge lies in the limited communication channels, necessitating a strategic approach for information sharing.

The “CLIQUE Network,” characterized by its connected mesh, is often assumed to be superior to the “WHEEL Network,” which resembles a star topology in enterprise communication. The common belief is that CLIQUE’s open communication channels will promote efficiency and accuracy by eliminating the need for redundant information exchanges.

To test which network operates most efficiently, Ronald S. Burt of the University of Chicago, Bocconi University, and Ray E. Reagans from MIT conducted a study. Their research aims to determine which network structure truly facilitates the most efficiently, providing valuable insights for organizations and individuals looking to optimize their network. The results of this study could have significant implications for how businesses, or individuals, structure their networks to maximize performance.

The Emergence of Collective Jargon

Burt and Reagan introduced 77 five-person teams to the communication challenge. Over the course of each team conducting their 15 trials, the teams sent a staggering 444,994 words in 74,861 messages to their teammates.¹ This high volume of communication was collected and dissected utilizing the Linguistic Inquiry and Word Count (LIWC) software, a text analysis program. The LIWC allowed the researchers to categorize and compare messaging data as it evolved over the course of the experiment.

As the trials progressed, a notable increase in efficiency was observed. The teams completed the trials faster, using fewer words and messages. This improvement was attributed to the development of a collective ‘Jargon’. By assigning an agreed-upon name to each unique symbol, the teams were able to do the aforementioned. See the below symbols and their most agreed-upon Jargon words.

Utilizing Precise Jargon

Jargon often gets a bad rap. It’s seen as a barrier to clear communication, a way of accidently excluding those not ‘in the know’. Yet, for those who understand, jargon serves as a linguistic shorthand, conveying a complex mass of information swiftly and efficiently. Take, for instance:

Put a surgical instrument in the hands of an experienced surgeon and she knows immediately the social situation for its use: the people in the room, the step preceding the instrument’s use, who will do what during the use of the instrument, the step that follows use of the instrument. No need to state these bits of information. For the cognoscente [knowing], the information bits are implicit in the jargon. The same amount of information would require a fulsome text to communicate with an outsider.

However, the key lies in knowing when and with whom to use this specialized language. It’s a tool that, when wielded with precision, can be incredibly powerful in the right hands.

As shown in the image below, utilizing jargon—or its psychology equivalent, association—increases efficiency by removing ‘function’ words, which are often referred to as the glue that holds a sentence together.

Notice the change in messages and minutes per trial, along with the inverse relationship between function words and jargon. These associations, or jargon, can be formed and shared amongst couples, teams of five, professions, or whole cultures and countries.

Idioms are a great example of shared jargon among a large population. Consider the childhood taunt, “liar, liar, pants of fire,” an English-based colloquialism for deceit. The Russian counterpart, На воре и шапка горит, follows the lines of “the thief has a burning hat,” similarly showcasing dishonesty that is self-evident. However, if not from either of these cultures, the idioms would be nonsensical, but somehow each represents the same deeper meaning.

By harnessing the precision of jargon, similar to a surgeon and their tools, and its adaptability, as illustrated through idioms, we can grasp the profound impact of specialized language. This concept is not only vital in technical fields but also in the realm of business, where clear and effective communication is paramount.

Navigating Complex Networks

To proceed, it’s essential to make sense of the earlier research. Scalability comes into play when jargon is understood to be more than simple language; it can be cultural customs, objects, or any other form of agreed-upon association.

Expanding the purview creates a network of networks.

An individual may navigate a mesh of colleagues, a tree of in-laws, and a direct connection with a significant other. Companies have separate departments, partnerships with vendors, and obligations to shareholders. On a global scale, nations engage in different trade agreements, tariffs, and alliances. The complexity of networks intensifies when the scope is broadened. Further adaptability is necessary with the creation or dissolving of networks.

The multifaceted network environment paves the way for the emergence of Network Brokers, savvy intermediaries that act as a bridge between two parties and facilitate conversations. In today’s interconnected world, Network Brokers are the linchpins that produce collaboration. They strive to create win-win situations for the entities they connect, contributing to innovation, growth, and problem-solving in various fields. In everyday life, Network Brokers are ubiquitous. A real estate agent connecting buyers to dream houses, event planners, recruitment agencies, even friends referring a past mechanic, hairstylist, or carpenter.

Mastering Network Brokering: Breadth, Timing, and Arbitrage

In today’s dynamic business environment, the role of a Network Brokers is indispensable. These skilled individuals operate at the intersection of relationships, strategy, and opportunity. Becoming a Network Broker is a discipline that needs to be continuously practiced. Whether it’s winning contracts, orchestrating mergers and acquisitions, or even job hunting, the strength of one’s network significantly influences the outcome. The ability to generate value as a Network Broker rests on three key pillars: breadth, timing, and arbitrage.

Dr. Burt’s 3 Strategies:

1. Breadth: Network brokers maintain extensive contacts across various industries and specializations. Connecting skillsets, facilitating cross-pollination of ideas, and accessing a wide range of opportunities.
2. Timing: The ability to act at the right moment. Identifying windows of opportunity, coordinating relationships, and being relevant with the newest set of networks.
3. Arbitrage: Understanding the value discrepancies of the networks. Exploiting market inefficiencies, negotiating better terms, and creating competitive advantages.

Something keenly mentioned by Dr. Burt is that Network Brokers have to perform arbitrage. Similar to a translator, they must interpret and convey the needs and offerings. Tying this into his research, the most proficient Network Brokers are able to ‘speak the language’ of both parties. The jargon. Competently and quickly, they can understand, utilize, and communicate between the two entities to create value. 

In Closing: Nurturing Connections

Remember, becoming an effective Network Broker is an ongoing journey. Whether a seasoned professional or just starting a career, connections play a pivotal role in shaping the future.

1. Your Network: Be intentional with your connections. Foster relationships beyond business transactions.
2. Pay It Forward: Share insights, introduce colleagues, and be generous.

So, go ahead—reach out to that old colleague, attend that virtual conference, and curate your own network.