Mar 11

Harnessing Relational Equity, Part One

I have been thinking about the importance of harnessing relational equity in leadership positions.  Whether it’s business, the Church, or politics, relational equity is simply part of leadership.  Ever try to pitch an idea and have someone say “what does Mike think about this idea?” Or, “How are parents going to react?”  When you have relational equity, you have leverage and the ability to move your people and your vision forward.  Without it you will have a very difficult time getting anything done. 

  • Everything you do will either increase or decrease your relational equity with people.
  • Increasing your relational equity is like a deposit into a bank account.  It takes time and will gain interest.  You gain interest by creating wins over a long period of time.
  • A decrease in equity is like watching the stock market drop.  You can  lose relational equity much faster than you can gain it. 
  • Occasionally you have to cash in all your relational equity in order to move your vision forward.  Choose wisely.
  • You are not increasing relational equity by being a people pleaser, you increase your relational equity by investing in people.

What have you learned about relational equity in your organization?

I will post part two tomorrow.

  • http://www.omnichange.com Andrew

    Great Post! Relationships by the very nature of their existence connect with people in their respective emotional states. Ideas of change often lend themselves to start with the cognitive developments(in the mind) and are focused around quantitative analysis or validation of a well-presented argument.

    But if the discussion for change ends in the cognitive state, then the ideas are fleeting and treated as “flavor of the month”. Unfortunately resulting in those ideas being forgotten or lost in complacency. Relational equity allows you the credibility to change the hearts of the people you work with which is probably more important then having them understand the statistics of a certain idea. Our hearts are connected to emotions of passion, drive and charisma. When able to unlock these through the equity you have built, great work can be done together no matter the context.