What’s Your Exchange Rate?

What’s Your Exchange Rate?

Posted by in Leadership, The Leadership Coach™

I believe every relationship has a different exchange rate.

When I travel I sometimes need to exchange my dollars for another currency. When I have a strong exchange rate the purchasing power of my money can be much greater than it would be at home, but when my exchange rate is weak I can wind up paying a small fortune just for a cup of coffee.

Your relationship with each of your team members (and customers for that matter) has an exchange rate too. When your exchange rate is strong the felt benefit of things you do is made even greater… like a compliment, some quality time, or a performance bonus. It amplifies the impact of your efforts. But when you have a weak exchange rate, the value of the same efforts is far less.

We see this in every day life. Like the absent parent who buys expensive gifts for their kids and wonders why the kids aren’t grateful. Personally, I love genuine encouragement, but I don’t love it the same from everyone! There are some people whose words could motivate me for years, and others could say the very same thing and have little impact at all.

So what makes the difference? I believe it’s the combination of trust and credibility that determines our exchange rate with others.

Without a foundation of trust and credibility, you’ll always see your investments in others being less fruitful. But with earned trust and real credibility, even small deposits in people’s lives can pay huge dividends.

It’s only fair to acknowledge that these take time to establish. So if you’re a new leader or have a new team don’t expect this to happen overnight. But it also doesn’t just happen. Unless we’re purposeful we can actually find our trust and credibility decreases over time.

John Maxwell said, “Success is when those who know me the best, respect me the most“.

So what’s your exchange rate like with each of those you lead?

I’d love to hear your comments and feel free to use the links below to share this article with others

Paul Andrew is Founder of The Leadership Coach
He is a Keynote Speaker and Management Consultant based in New York
[email protected]LinkedIn | Website | Blog | Twitter

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5 Responses to “What’s Your Exchange Rate?”

  1. Colin

    21. Jan, 2013

    Liked your thoughts Paul… so important to build trust and credibility today with people we meet and who come into our lives for a reason, not just a coincidence… keep up the great insights Paul.

  2. Nat Holland

    21. Jan, 2013

    Love it! Building relational credibility is key. The relationship we build with others will allow us the right to speak into their life. Thanks Paul!

  3. Tanya Riches

    21. Jan, 2013

    I really liked your post, and where it goes is strong in terms of the practical implications – building trust and credibility is particularly important as Christians trying to explain who Jesus is and what He stood for; i.e. relationality. 🙂

  4. Mat Rosa

    23. Jan, 2013

    Great post, Paul! Trust and credibility evolve into respect which ultimately are foundations of leadership as much as relationship … that goes in business and in faith.

  5. Paul Andrew

    23. Jan, 2013

    Thanks for the comments everyone…