Market Power & Relationships...

What drives relationships? A number of factors influence relationships between people. This could be love, money, connections, affection, protection, power, position et al. I will use one collective word for all these together. ‘Market Power”. I have chosen these two words to collectively represent the drivers of relationships, as these two words reveal key components of relationships.

The word “market” reminds us that in most relationships there is an exchange i.e.; there is a give(r) and a take(r). “Power” reminds us that in relationships there is high possibility for one to have a larger influence (power) on the other.

Let us take a look at the various dimensions of this ‘Market Power’

In the absence of either of these constituents no relationships can survive. This is applicable for any relationship, be it business or personal.

As you can observe, some sources of market power are what you are; a loving father/ son/ husband, a caring friend, a sensible mentor. We can term it as “the Person Factor”. Some sources are what you possess; money, power, connection. We can term this as “the Possession Factor”

Market power is derived out of both. If the market power in a relationship is derived out of a combination in which “the Person Factor” forms a larger component the relationship may sustain for a longer period. If the driver is the Possession Factor” the relationship may not last so much or may last only till time “the Possession” lasts or only till that time ‘the Possession” is relevant to the other person.

Sometimes the relationship starts out of ‘the Possession Factor’ and grows to encompass ‘the Person Factor’.

In relationships that are driven by ‘the Possession Factor’, the more valuable the possession it is, the higher the market power. So in short term they can have a larger influence. But it is important to remember, that such relationships often lack depth.

One of the traps of the relationships out of ‘the Possession Factor’ is that it becomes demanding. If such demands become excessive then this relationship may degenerate or become exploitative. The other party may tolerate the demands if there is no choice and/or only if there is something to gain.

In relationships, if your demands are perceived to be unreasonable then the other party may cease to be open and frank. You will be told only what you want to hear. But no active effort nurture relationship or even try to add value to what is brought to the table.

This is the trap very often people in power fall to. Senior officers often get used to giving dictates and doling out favours and lose the skill to welcome suggestions or criticism. In such cases the relationships becomes very unbalanced and they cease to learn new things; which in the long run is counterproductive.

It makes enormous sense to develop a skill to judge the drivers in any relationships. How to manage this skill is a personal decision. Some may use it to pursue a strategy of having balanced relationships. Some may not.

But there is no doubt that this skill is a key ingredient in executive survival kit! On the other hand it can also help you to be realistic in your expectations...