Organizational Culture Is Now The #1 Source Of Long-Term Advantage

In a digital age, long-term competitive advantage is determined and driven by organizational culture. Technology or strategy is important but it does not buy a CEO much time. “Extensive research over the last thirty years has proven that managing talent well creates value for organizations; yet talent management is ineffective in many organizations as it is grounded in 20th-century paradigms that are not aligned with today’s business imperatives, and does not reflect a deep understanding of the complexity, diversity, and motivators of today’s workforce.” (Source: Booze & Company)

Because of these outdated 20th Century management practices noted in the above Booz & Company quote, an effective business leadership mindset is more important than ever. Transforming organizational cultures from top-down autocratic power structures to flatter more peer-to-peer collaboration circles of high relationship capital trust and credibility is good for the emerging social business.

The Emergence of Social Business

A Social Business as defined by IBM is one that is:

  • Engaged
  • Transparent (Allow people and culture to reflect your brand and your values)
  • Nimble (Speed, gain real-time insight and make quicker and better decisions)

The benefits to building a social business are higher sales and profitability due to trusted relationships and brand advocacy. There is not a large organization today that is not challenged by the lack of engagement from a great number of their employees.

With the ever-powerful communication tools available to individuals, we have the opportunity to influence and support our selected social networks to attract opportunity and develop our reputation. We must find, create and nurture relationships to help them uncover the best opportunities, jobs, and entrepreneurial ventures. The explosion of business and social networks places closed companies and individuals at risk of being left behind. Earning and accounting for your Relationship Capital (RC) is becoming a prerequisite for individuals, products/services, and organizations to prosper in the global relationship economy.

Relationship Capital Accounts For Emotional Connection

Relationship Capital (RC) is an industry standard for capturing and measuring credibility or trustworthiness online between people.

RC is Earned in the following

  • Declared Commitment Feedback
  • Appreciation Recognition
  • Performance Level Trophies Achieved

Individuals and teams earn RC by keeping Commitments and obtaining positive Perceptions. They receive Relationship Capital Points (RCPs) for each fulfilled declared commitment, or a received appreciation badge , obtained. RCPs are deposited in the users account.

Peer SaaS Leaderboard

The business case for implementing social business practices and relationship capital metrics comes to down to maintaining your competitiveness when your rivals, clients, and partners are adopting new methods for directing business. There has been a transformation that has occurred in the ways people communicate. The technologies that enable it, the organizational functions and structure that can manage how social business is done.

This relationship capital high trust is signified by shared purpose and values that drive higher performance. The social business model and the process was shared for growing and sustaining influence across your ecosystem of customers, followers and brand ambassadors. It is now an imperative for sustainability and not just a nice to have.

Creating and sustaining your competitiveness in this digital world requires your team to see the opportunities as well as the threats coming at them and proactively respond. Customers will not wait for you to develop the perfect business strategy, operating model, and/or launch the perfect technology platform when they want to make a decision. Your organizational culture must be smart, fast, and proactively act with good intent in the best interests of the customer/client and all your stakeholders. Your products/services must be at the right place at the right time in the customer’s decision-making journey.

Nurture your organizational culture of high purpose

The following are three examples of ways to nurture a culture of high purpose:

  • Attract start performing customers & clients that will attract the attention and respect from other customers.
  • Earn the respect of credible thought leaders and brand ambassadors who will share your story and recommend you.
  • Attract the star performing employees who share their high purpose and mastery with your organizational purpose to create amazing experiences not only with the customer & client, but also throughout your entire ecosystem of partners, and suppliers.

As you can see, today’s competitive battles are less about business entity versus business entity, and more about business ecosystem versus business ecosystem. This is a more peer-to-peer relationship that requires your business and your team to behave as a standard of trust based on shared purpose and values. Your stakeholders are watching.


Those business leaders that can build an emotional connection and high relationship capital with employees, customers, and all key stakeholders; will nurture an organizational culture that is more competitive and sustainable in our hyper-connected world. As cultures transform for the digital age, building high trust and relationship capital increasingly play a critical role.