Proximity to Power: Why are relationships so important?

Strong personal relationships are often crucial to success in business, Managing Director Thomas Averre explains why, and how to build them.

It is said that ‘people do business with people’ – a statement that is equally obvious and insightful.

Relationships are critical to business success, which is why at Tarleton, we put as much emphasis on relationship building as we do reputation management.

We often explain the importance of relationship building through the political prism, because it is so obvious and universally accessible as an anecdote.

The recent Presidential inauguration has shown us the political and economic power individuals can wield if they have strong personal relationships with key decision makers. Musk and Trump personify this in extremis. Those with strong personal relationships with Trump have been put into key positions or given preferential treatment in some regard. He values loyalty and so those who have been backing him for a while are benefiting, while recent converts are still out in the cold.

For those who enjoy the West Wing, it is obvious that Leo McGarry, as the President’s Chief of Staff, is one of the most influential players in the Bartlet White House because he controls access, and acts as a personal counsellor, to the President. We have seen this in reality, from Vice President Cheney to Ivanka Trump: when relationships are strong, disproportionate influence can be wielded.

The US political example is an interesting one for analysis because the United States, in both political and business culture, emphasises relationship building above all else.

So, why are relationships so important?

Decision making

Firstly, because although brands and corporate reputations obviously influence decision making, so do relationships. This is because many brands have similar or undistinctive reputations – you may simultaneously trust Pfizer and GSK and think both companies do high quality R&D. So, when decisions are being made, the key people ask themselves ‘Do I trust Susannah to deliver on this project? Is she being straight with me? Will the fact she values our relationship mean she will influence other internal stakeholders to ensure this is a success?’

If you don’t know the person you’re dealing with, or don’t have a relationship with them, you default to the brand – which just puts you in the same category with everyone else and prevents you from standing out.

Business Intelligence

Strong relationships are built on trust, and trust fosters honesty. Any business leader knows that having a complete picture (what is happening with procurement, which strategic direction the organisation is going in, what funding opportunities exist etc) is extremely valuable business intelligence.

People who trust each other are more likely to be open, honest and direct. Mutual respect encourages people to ditch corporate waffle and tell you how it is – which can save time, resource and help guide you towards a more successful outcome.

How do you build relationships?

It is worth pointing out the obvious – building relationships takes time. Think about how to build relationships with those who in the medium to long term will be in the positions you need to influence. The best recruiters do this well and invest in getting to know the future leaders who are currently in junior roles but will one day be their c-suite placements. Obviously time investing in building relationships with more junior people needs balancing against the needs of the present, but it should be part of your strategy.

When it comes to political relationship building, this requires effort and time and so is most effectively done by professionals. Our team have significant experience doing this, from Select Committee to Ministerial engagement, helping to raise client profiles with policy makers and contribute to important public policy debates.

Building relationships with businesses and those within your corporate sphere is more complicated because of the multitude of ways this can be done. Relationships are usually best built through the key individuals within a business and the target directly, however your public relations agency should be representing you at key events, conferences and meetings that you are unable to attend. This serves two purposes – maintaining awareness and brand salience (they’re here again!) and reaching audiences that you don’t have the time or energy to focus on, but who are nevertheless still important.

Twin strategy

Building a strong brand and reputation is obviously beneficial, but the effect is augmented if you are doing both at the same time. You should be strategic and have a plan for relationship building, just as you would have a traditional brand strategy. This means seeking to meet with investors, clinicians, policy makers, suppliers, customers and other stakeholders regularly. Formally and informally. With an agenda and without one.

Time invested is usually repaid many times over.

Get in touch to find out more about how we can help you to build strong relationships and manage your reputation.