Legendary investor Ray Dalio’s new book Principles is a great read and recommend it anyone seeking to understand how to build more process in life. In it, Dalio says that he believes the single most powerful process in the universe is evolution. This follows a major theme in his book — that we learn the most about ourselves through our failures, not our successes. It is the same with evolution, which is shaped more by lessons of failure than status quo success.
When you look at nature you’ll see that our world is actually a patchwork collection of ecosystems, linked together for a surprising mix of versatility and durability. My oldest child is studying biomes in science class which perfectly illustrates this “networking of nature.” This topic is studied extensively in Mark Buchanan’s book Nexus – Small Worlds and the Groundbreaking Science of Networks. Buchanan does a fantastic job illustrating how small network theory is demonstrated throughout our world.
So as humans, who have made it through our own evolutionary gauntlet, we now find ourselves working in today’s private equity ecosystem. As a business development professional, my thriving or failing largely results from the strength of the relationships within my network. Small network theory has some interesting implications for all of us. In fact, it can provide a template for effective networking, strengthen your existing network, and help you identify the most efficient prospects to target. [Read more…]