Importance of Relationship Capital Management

The total relationship capital of an organization is dynamic and subject to unpredictable changes.  Internal professionals come and go, key external contacts change roles, and new relationships among external contacts change every hour of every day.  With each change an organization's relationship capital  and its ability to execute is either enhanced or diminished.  Keeping track of relationship capital along with managing to specific relationship goals is critical to long term franchise development.  Recruitment, professional retention and target relationship development are just a few ways Relationship Capital Management is used to build a stable and deal-focused relationship based business.

RCM Makes a Difference

"McKinsey research shows that a payday could be arriving faster [for business networking] than expected.  A new class of company is emerging; one that uses collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend the organization's reach to customers, partners, and suppliers.  We call this new kind of company the networked enterprise.  Results from our analysis of proprietary survey data show that the Web 2.0 use of these companies is significantly improving their reported performance.  In fact, our data shows that fully networked enterprises are not only more likely to be market leaders or to be gaining market share but also use management practices that lead to margins higher than those of companies using the Web in more limited ways."