Chances are your relationships with your customers, influencers, employees, partners, suppliers and any one else you depend upon are your most important asset; they represent your Relationship Capital.
The problem with relationships is that you know they’re valuable, but do you know how valuable exactly? As they’re intangible you can’t measure them like you do other assets; cash and equipment for example.
And if you can’t measure it, how can you manage it?
Measuring Relationship Capital fixes that; it provides a way to look at relationships as an asset so that you can measure and manage them.
Why is Relationship Capital even more critical now?
Relationships have always been critical in business, but two trends are making them increasingly so.
Globalization and commoditization are diminishing product differentiation as a competitive edge. Instead, the ‘experience’ you provide; the extent to which people enjoy the experience of dealing with you is fast becoming the only truly sustainable competitive edge.
Technology is reducing the opportunity and need for people to interact personally, so when it does happen, it is critical that it be effective and contribute to the ‘experience’.
Relationship Capital is the measure of relationship health and a lead indicator to future performance. Measuring it, which you can read more about in Relationship Capital: Measuring Business Relationships, is almost as good as counting cash and depositing it in the bank.