Why No One Pays Extra For Rudeness - Building Relationship Capital

Everyone is always focusing on capital when they areA month goes by and the numbers for this new
discussing business. They need venture capital to getproduct are lousy. The investors are concerned so
started. They need additional capital to keep going.they do some investigating. What they find is that
What they are generally discussing, what theySusan cannot keep employees because she is robotic
commonly are referring to is the financial aspect ofat best- and impossible to deal with when she is
business, the cash. What they often forget tofrustrated. Because Susan's employees have such a
mention, or they forget to factor in is relationshiphigh turnover rate in nearly every department, there
capital.are poorly trained and working positions that are not
Regardless of what product you are selling, whatright for them. Desperate for help, Susan has taken
service you are marketing, you are going to be sellingto just hiring whoever shows up without an
to relationships. You may never see a singleinterview. No one who is worth having will stay in this
customer's face and you may never even hear theirhorribly mismanaged company.
voices. You may only do your business online overCustomers are frustrated because the untrained
the computer. Who exactly do you think is placingstaff lose calls, or worse do not answer them.
the order at the other end? You don't think that theOrders are being canceled, products are being
computer has developed independent thinking andreturned. The company that Susan is running is losing
needs, do you?money hand over fist. The investors call an
Building relationship capital should be the easiestemergency meeting and discuss their options. Susan
aspect of your business venture. It should be faris brought in and given the facts. Reluctantly, she
easier to treat everyone with dignity and respectagrees to step down and give the day to day
than it would be to get venture capital from reluctantoperations over to her second in command, Lisa. Lisa
investors, but still somehow this is the sticking point.does not have a high degree from a fancy college
Imagine for a moment, a business person; Susan.like Susan does. What she does have is relationship
Susan has given a really stellar presentation on whatcapital. She is likable and funny, but hardworking and
she predicts will be a million dollar seller in its first year.dedicated. Within a month, most of the open
The investors are impressed by the presentation andpositions are filled with qualified, competent workers.
give her the venture capital to go forth with the idea.In two months, the flow of orders and sales is at
It is a good product after all, the need is there andthe level of its estimated potential. The workers are
the market is wide open for exploring. But, each ofwell trained and happy. They are more than willing to
the investors has a reservation, not about thegive good customer service. Lisa keeps things running
product, but about Susan herself. She seems cold,with good business sense and the intangible business
unemotional and disconnected somehow. After theassets that they do not teach in any MBA program in
presentation was over, the others all agreed to gothe world. Sometimes in business, just as in life, either
out for a meal to celebrate. Susan simply packed heryou've got it, or you don't. Nurture and cultivate your
charts and graphs and left.relationships and your business will flourish.