Intellectual Capital > Relationship Capital

Relationship Capital

In many articles on this subject, this is referred to as 'Customer Capital'. We think that we need to include all relationships in our definition, as the knowledge contained in these relationships is not limited to customers. It also includes relationships with suppliers, other partners or joint ventures, governments and the community at large.

Relationship Knowledge Drivers

Responsiveness is a critical driver of relationship knowledge. The knowledge of how to be world-class in responding to customers and suppliers is a highly regarded market differentiator. Some of this knowledge may reside in our process capital, but its application resides in our interface with the outside world.

Customer Retention is now seen to be a key element in the future success of the knowledge enterprise. Retained customers do not require us to learn everything about them over again, we can just continue to add to our knowledge. However, retaining customers who do not assist us to increase our knowledge is not a good strategy. In the knowledge economy, customers who drive us hard, who will not accept anything but the very best, and who most stretch our imagination are the ones we most need to retain.

Customer Value is not a new idea. We all try to give customers good value, but seldom find ways to measure and manage it. Giving customers value today often means building-in knowledge to the products and services that we offer.

Customer Relationships or customer relationship management (CRM) has become a topical subject in recent months.

Supplier Relationships are a new focus for knowledge generation. In the past, many suppliers were seen as adversaries and constant battles about price and availability tended to spoil the relationships. Today, that mindset is giving way to how suppliers can assist us by bringing to us new knowledge of their developments in service, or materials technology or other breakthroughs. Suppliers with whom we have the best relationships are more likely to share with us, or treat us as partners.