Are Relationships Vital To Business Growth?

Relationships are the cornerstone of a new era of people-to-people businesses

 

All business relationships, both internal and external, are interconnected.

In terms of the whole company, you could no more separate the parts than you could separate a stem from a flower–the whole plant clearly needs both parts. The quality of relationships is a very real asset of the business. The learning, generation of knowledge, improvements and innovations that result from good relationships all contribute to the bottom line.

Internal relations take place between people at all levels within an organization. When there is rapport, trust and agreement between employers and employees, it improves the quality of internal relationships and increases the flow of communication.

External relations with clients, suppliers, public and governmental bodies, shareholders, influencers and the media help with creating and sharing knowledge, detecting new opportunities, innovating, improving products and reputation and building customer loyalty.

Relations can be at the institutional and group level but they often operate at the individual person-to-person level as well. Relationship capital considerably increases the value of the company.

A Question of Trust

Why is trust such an interesting concept?

Perhaps the answer lies with the fact that it spans both the logical and emotional aspects of human thinking and behavior. Trust flows from experience and knowledge, as well as from consistency. Nevertheless, trust is also a sense of confidence, a feeling about someone or something’s ability to deliver on a promise.

Any way you look at it, while we may use information and data, trust requires judgment and a leap of faith.
For success in business and other relationships, trust is imperative. With this in mind, how do we generate trust? If there is one overriding rule, it is this: trust has to be earned.

Andrew Sobel studies how to manage trusted client relationships. In his book, “Clients for Life,” written with Jagdish Sheth, he offers a model built upon seven attributes.

Next- 7 principles are applicable to all professionals who serve clients in all fields and industries