Relationship currency in leadership: Building the people’s bank (2)

“Framing feedback in a way that is actionable and supportive helps to foster a growth mindset and shows that you are invested in your team’s development.”

In the intricate dance of leadership, relationships are the silent yet powerful steps that dictate the rhythm of success. Just as a seasoned dancer knows the value of every move, a wise leader understands that relationship currency is not just a concept but a vital asset that needs continuous investment.

So, imagine leadership not as a position of power but as a bank where the currency is trust, respect, and mutual understanding. The most successful leaders are those who have mastered the art of accumulating and investing this currency, creating an environment where people feel valued, heard, and motivated. In this second part of our series on relationship currency in leadership, we will explore practical strategies to build and maintain a rich “Relationship Currency Bank” that can be drawn upon in times of need and challenge.

Let’s begin by asking: How do you strategically build a relationship currency?

Listening beyond words

Active listening is more than just hearing words; it is about fully engaging with and understanding the speaker. Effective leaders practise techniques such as maintaining eye contact, nodding to show understanding, and reflecting on what they have heard. For instance, saying, “What I am hearing is that you are concerned about the project deadline,” ensures that the team member feels understood. This approach not only helps to clarify communication but also demonstrates respect and empathy, which are foundational to strong relationships.

Nurturing growth and trust

Providing feedback is one of the most powerful tools a leader has, yet it must be handled with care to build trust rather than erode it. Constructive feedback should always be specific and balanced, focusing on behaviours rather than personal traits. For example, instead of saying, “You need to be more organised,” try, “I noticed that the project plan was submitted late. Let’s discuss how we can improve your time management for future deadlines.” Framing feedback in a way that is actionable and supportive helps to foster a growth mindset and shows that you are invested in your team’s development.

Fueling motivation

Never underestimate the power of a sincere “thank you.” Recognition and appreciation are critical to building a positive team environment. Publicly acknowledging achievements, whether big or small, not only boosts the morale of the individual but also sets a standard for the team. For instance, a simple shout-out in a meeting or a written note can make a significant impact. Genuine appreciation reinforces desired behaviours and fosters a culture of mutual respect and motivation.

Open communication

Creating an environment where open communication is encouraged and valued is essential for building relationship currency. This means being approachable and responsive, actively soliciting input from your team, and being transparent about decisions and changes. Open communication helps to eliminate misunderstandings and builds a sense of community and collaboration. Leaders who communicate openly and honestly, even about difficult issues, earn the trust and loyalty of their team members.

Leading by example

One of the most effective ways to build relationship currency is by leading by example. This means demonstrating the behaviour and values you expect from your team. Show accountability by owning up to your mistakes and taking responsibility for your actions. When leaders model integrity and consistency, they set a powerful precedent for their team. This approach not only builds respect but also creates a culture of trust where everyone feels accountable to each other.

Transparency

Transparency is a cornerstone of trust, especially during challenging times. When leaders are transparent about the organisation’s goals, challenges, and decisions, they build credibility and trust. This means sharing both the good and the bad news, explaining the rationale behind decisions, and being open about future plans. Transparency ensures that team members feel informed and included, which fosters a sense of security and trust. Even when the news is not favourable, honesty and openness can prevent the spread of rumours and build a resilient and cohesive team.

Addressing conflict constructively

Conflict is an inevitable part of any dynamic workplace. However, how it is handled can significantly affect team dynamics and relationships. Constructive conflict resolution involves acknowledging the issue, listening to all parties involved, and seeking a resolution that respects everyone’s perspectives. Address conflicts as soon as they arise. Letting issues fester can lead to resentment and bigger problems down the line. Encourage open dialogue and use conflict as an opportunity for growth and improvement.

Approach conflicts with an open mind and strive to understand all perspectives. Avoid taking sides prematurely. Focus on issues, not personalities. It is important to keep the discussion centred on the specific issues at hand rather than personal attributes or past grievances. Encourage the parties involved to come up with potential solutions. This collaborative approach can lead to more sustainable resolutions and a sense of ownership. By addressing conflicts directly and respectfully, leaders can prevent small issues from escalating and maintain a healthy and productive team environment.

Conclusion

Building a rich relationship with currency Banking is an ongoing process that requires consistent effort and genuine engagement. By practising active listening, providing effective feedback, showing appreciation and recognition, fostering open communication, and leading by example, leaders can build strong, trust-based relationships with their teams. Additionally, maintaining transparency and addressing conflict constructively further solidifies these bonds.

It is pertinent to note that relationship currency is not a finite resource but a renewable one. Every interaction is an opportunity to deposit into or withdraw from your relationship’s currency bank. By prioritising these practices, leaders can create a supportive, motivated, and high-performing team. As we continue to explore this series, keep these strategies in mind and watch your relationships—and your leadership—flourish.

About the author

Dr Toye Sobande is a strategic leadership expert, lawyer, public speaker, and trainer. He is the CEO of Stephens Leadership Consultancy LLC, a strategy and management consulting firm offering creative insight and solutions to businesses and leaders. Email: [email protected]