Value of Relationships

Intangible Value

The value of relationships for business is intangible and difficult to measure, although the majority of executives believe that relationships are a key to business success. *

Relational Capital

The Relational Capital Group has provided an assessment   to measure relational capital called RQ or Relational Quotient. They conducted a national survey of top executives of companies with annual revenues of more than $100,000,000. They found that “90% of the CEO/COO/Presidents surveyed attributed their business results each year to the strength of their relationships.” The relationships they referred to are both personal and professional and internal and external to their companies.

The highly successful executives agreed that strong, healthy, effective relationships with employees, customers, colleagues, and suppliers are essential to business performance. The value of relationships is one of the intangible assets that, along with good-will, knowledge and skills, make up more than half of the value of a company.

* Image credit to Socius

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5 thoughts on “Value of Relationships

  1. Fascinating – my background is in sales so of course I’m in total agreement with the value of relationships, though I’ve never applied a dollar amount to them. Interestingly enough where I live (island) relationships as well as your reputation are of far greater value because here the ‘good jobs’ never make it to newspapers or job sites – it’s all about who you know. I’ve lived here almost my whole life and my entire career has grown based on my reputation and support from industry insiders.
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  2. Hi Buddy,

    This is an interesting share. I was surprised by this statistic,“90% of the CEO/COO/Presidents surveyed attributed their business results each year to the strength of their relationships.”

    When you really think about it it, (and I think that is the purpose of this post), I can understand this as fact. Relationships are intangible and so this is quite a deep concept, however good quality relationships matter in business and all aspects of our lives.

    Raena Lynn
    Raena Lynn recently posted..David Gilks “The Solo Ad King”My Profile

  3. I think the internet is a great metaphor for the building of relationships. Not the only way for sure, but developing new and more relationships can be done in ways that didn’t even exist a few years ago.

    Very interesting that the survey concluded that such a high percentage of the respondents valued relationships so highly.

    Thank you for giving us this excellent reminder today.
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  4. Buddy, I was happy to find out that 90% of CEO/COO/Presidents attributed their successful business results on the strength of their relationships. I know that developing strong relationships has always helped me in my sales jobs and in my new business and its great to know that top company heads feel the same way. Thanks for sharing this good reminder on the importance of building long lasting relationships.
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