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Monday, March 03, 2008

High Ideals and Integrity


By Cindy Dunston Quirk, The National Networker Great Lakes Bureau Chief
It seems unnatural to me that someone would want to be less than honest in any business dealing in today’s world. Actually, I’ll expand that into any situation. I always think the best outcome of situations; consider the positive and give people I meet the benefit of the doubt. Honesty and integrity have been part of my persona, well, forever. But not everyone in the world conducts business with such integrity. Someone I met recently restored my faith in the world...
Meet Alexander Rai

It did my heart good to speak to Alexander Rai. He is one of the most passionate, enthusiastic and dedicated people I have ever met. When I initiated our conversation, he left little doubt which side of the fence he is on. There is little room in his world for deception and insincerity.

Of course, the purpose of the conversation was to discuss networking and how he and his business partner, David Hall are progressing with their global network initiative. Rai began by defining networking. He says we are always networking. “Stepping out of your home and talking with the mailman is networking,” states Rai. He continues, “We live in a world that is smaller due to technology and in a world where everything is connected. Because of this connection, we need to have respect and care for all individuals—to value actions and speech, to be open about what we do.”

This is not a new idea that Alex has brought to the table. It is as old as the Bible. In fact, it sounds quite a lot like the Golden Rule--do unto others as you would have them do unto you. “We all need to practice compassion, understanding and meaning. We are all in the same boat,” Rai states.
Make Sincere Connections

With that thought in mind, when we network, we need to attempt to make sincere connections; don’t waste each other’s time. According to Rai, “Passion and integrity are the vehicles for meaningful conversation. Networking is a way of communicating who you are. What you do becomes an extension of who you are …and it can be wonderful! When you embrace networking as an identity, to value and respect others, you have a clear intention of your purpose of working with others and to create great wealth.”

Think about that for a moment. Just by being honest, sincere and working with high integrity, you can create wealth not just for yourself, but for your contacts as well. That is an extremely powerful thought. Simply put, you have the ability to raise the stakes. Rai advised that you don’t need a coach. You don’t need to spend tons of money to see results. You just need to operate with the highest ideals and respect for those with whom you are networking.
Guru Connector

Zivlyn, one of Rai’s eighteen companies, operates as an open company with very clear lines of responsibility and opportunity. Rai believes that people are learning to be people again instead of corporate robots spouting corporate rhetoric that they don’t necessarily agree with. Everyone has their areas of expertise and responsibility and the company is ripe with opportunity for those who rise to the occasion.

As an expansion of the open company concept, Rai mentions that you have to be willing to stick your neck out with new ideas. Don’t be afraid to put the idea out there and see if it is viable and if you have associates who are also formulating the same idea.

Working with David Hall on Hall’s company Guru Connector, Rai states, “David is not afraid to try. He is always making things better to help people. David is a great networker and his greatest strength is his integrity—it organically part of him. That is why I am David’s partner.”

Hall has been involved with Fortune 500 companies, is well travelled and is passionate and compassionate for people. “David has his hands in many things that have value and integrity; in things that he enjoys, loves and creates. He is not afraid to be who he is,” states Rai.

You could say that Rai and Hall are a perfect match with respect to clarity, a system of values and integrity. Together, they create hope and alternatives. And they have fast-track access to many like–minded people. Between them, they boast a network in excess of 1.3 million people. That is a lot of contacts.

Considering that your network may be a tad smaller than the combined network of Hall and Rai, Rai says that there is a chance that you may not always be able to find something that you need within your network of associates. In that situation, he says you need to create it yourself. Don’t be afraid to try; make things work for you.
One World

“People need to be people—be themselves before they are their products,” says Rai. “We are not the sum of what we are creating. We are so much more. We profit from each other through integrity, trust and honesty.” He continues, “This is one world and the same rules apply to a toad and to the CEO. You have to be compassionate, fair, and honorable. If you don’t have that, you are nothing.”

It is time to do the right thing.

With regard to final thoughts, Rai says that “…mankind is running out of time. It is time now to free ourselves and to question who you want to be. We all need to ask questions that mean something to each of us.”

“At the end of the day, you stand by yourself and have the honor and courage of who you are. Go back to the basics of integrity and high ethics before you look to the skies again.”

Well said.

If you know of someone who is making a difference paying it forward, let me know so I can write about it here and let the world know, too.
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Emporio Nomoney

By Victor Cattermole, Asia Pacific Bureau Chief
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Last month I wrote about Elizabeth Liu the billion dollar real estate tycoon in Hong Kong. This month I have dashed across the boarder into China and met with a Chinese business woman who is probably at the other end of the scale.

A thirty minute train ride from Hong Kong, through customs and across the border into China. It’s a simple process unless you are American. Basically if you are traveling on a US passport it takes 2 days to get a visa.

Less than one minutes walk from the border crossing and I enter the Lo Wu shopping center which is in the city of Shenzhen. This shopping mall has over 400 shops per floor and a total of five floors. It is one of many in the area, because of its location this one is a popular spot for tourists.

I head up to the third floor and along to one of the far corners of the building. The trip is exhausting in itself with a continued barrage of “Mr do you want a copy watch” and “Mr cheap Viagra”. What an insult, how old do I look? This whole shopping center appears to mostly sell copy goods, bags, watches, clothing and electrical goods. I learned the tough lesson early on the electrical goods, basically the fakes look great but don’t work.

What's amazing about walking through this place is the relentless attempts to sell goods by these people even when they have observed you turn down ten or more vendors all pitching the same goods. Their never give up attitude is a credit to them and I personally learn a lot from their commitment to the process.

Vicky is in her usual position next to her 1.2 meter square watch stall. From this small $9,000 a month stall the whole family bases their business selling predominantly copy goods. Vicky is the eldest of five children which is unusual in China of course. All 5 children work from the stall and the mother keeps a close eye on whats happening. Vicky’s English is quite good although she never misses an opportunity to learn a few new words.

On the face of it there is nothing that sets this stall apart from the other hundreds of stalls in this centre selling similar goods. What's clear to me is there is no business plan and no banker funding any of these businesses. Looking at it from a western perspective quite seriously how could you. If someone arrived with a business plan to sell illegal goods in amongst other shops all selling the same goods no one in their right mind would provide funding. Despite that these businesses set up and survive.

I am fortunate enough to have known Vicky for about three years and so over that time I have found out a lot about how this business runs.

First of all the rent for the is RMB9,000 per month which is around US$1,250. Maybe not a lot to many of us but to a family in China it’s a fairly big commitment. The average income of a general worker in somewhere like Shenzhen is around RMB2,000 per month.

Whilst talking with Vicky she doesn’t hesitate still to offer her goods to passers by. Any interest means my discussion is dropped and within seconds she has her brothers, sisters and even mother racing around obtaining samples, books and complimentary bottles of water for any potential buyer.

Anyone clearly not local is fair game here as they will generally pay a lot more than a local. A typical sales negotiation on say a copy watch may start at US$300 and end up anywhere as low as US$20. The classic con with watches is that there are three different qualities and mechanisms, the sample is usually the best quality of course, the one the customer walks with is usually the cheapest.

I finally get to ask Vicky some tough questions on what it’s like to do business in China. She and her family work seven days a week, the day starts at 10am and finishes between 10pm and 11pm. She is 25 years old, doesn’t have a boyfriend, no time she says. Her take home pay is nothing, basically all the profit goes to her mother and father and they provide anything she needs.

So all of that is pretty interesting but not that amazing. What is amazing about Vicky is that her clients come from all over the world. She has photos with customers from just about every country you can name and she maintains regular contact with them through email. People in the know who make the trip to Shenzhen walk past vendor after vendor to shop at Vicky’s one square meter store and you have to ask yourself the question why?

It comes down to relationship with her customers, maintaining contact and being honorable in her promises.

Vicky is the only vendor in the whole mall that offers a 12 month warranty and means it. She may not be rich but she is effective, we can all learn a lesson from her.


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Relationship Capital can never be destroyed

The Laws of Relationship Capital - Part 5
The Fifth Law

By Adam J. Kovitz, CEO, Editor-in-Chief
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So far in our series on the Laws of Relationship Capital we have learned who and what may possess Relationship Capital, even long after they’re gone (historical figures, fossil fuels). We have learned how both quantity and quality play into the calculation of Relationship Capital. We have learned that Relationship Capital Value can be both positive, neutral or negative and fluctuate with time, depending upon our actions. Furthermore, we have learned that the implications of the first four laws will allow us someday soon to develop a more complete picture of the world around us; past, present and future. And while all this is fine and good, there are many questions left still unanswered, such as “What is the final resting place of all Relationship Capital?” and “What’s the worst thing that can happen in the world of Relationship Capital?” This is where the Fifth Law comes in…

The Fifth Law

Based upon the the first four Laws, the Fifth Law states that:

Relationship Capital can never be destroyed.

Let’s examine the implications...

Old Soldiers

We have stated before that relationships last forever; whether they are recognized or not, they still exist. We have also stated that Relationship Capital Value can have a neutral state (zero) representing a relationship that is unknown, unrecognized, undiscovered, brand new, irrelevant, inert, forgotten and having no recognizable effect whatsoever upon any other Relationship Capital Entity (people, products, assets, business units, authoritative position). Who would have thought that when General Douglas MacArthur said, “Old soldiers never die; they just fade away,” he was making a prophetic statement about the nature of Relationship Capital!

The Effects of Fame/Notoriety

Of course the mere mention of MacArthur’s quote in this publication shows that this soldier never really did “fade away” and of course his legacy lives on in his own personal Relationship Capital Value. This example, however, gives us insight into the nature of both fame (or notoriety) and Relationship Capital; if we map out Relationship Capital Value (measured in Relationship Capital Points, or “RCPs”) over time there is some boundary (possibly Malcolm Gladwell’s “Tipping Point”?) or “fame/notoriety threshold” by which the nature of Relationship Capital is less likely to be altered with respect to time. Once the fame/notoriety is crossed, the adage “it’s not about who you know, it’s about who knows you” becomes quite relevant because the amount of relationships and interactions drawn to the famous entity is effortless…for better or worse.

The above graph indicates three subjects: Subject A, who achieved fame over their lifetime, Subject B, although with considerably positive Relationship Capital never quite “made it” and Subject C, who rose quickly to fame only to quickly fall and achieve notoriety. The good news is that we have complete control over our Relationship Capital Value, provided that we have not breached either of the two thresholds and, as stated in Part 4 of this series, can modify it by applying Reputational Force through our own actions. The bad news is that we only have control over our own Relationship Capital as long as we are alive and even if we are alive, we have less control when we are either famous or notorious.

The End of the Road?

So if fame is Relationship Capital’s best friend, obscurity is its worst nightmare; zero RCPs. Time, of course, also plays its part. While MacArthur’s statement, in context, was about himself (click here for the full quote) and may have backfired for him (at least at this point in time), it is quite valid for the vast majority of soldiers who did, indeed, fade away.

But just because we might fade into obscurity and have no Relationship Capital to speak of, does not necessarily mean that it’s the end. The above graph shows a possible Relationship Capital graph for a creature that might have lived millions of years ago; say the dinosaur mummy recently publicized in the news and TV. Over the period of its life, it interacted with other fauna and flora of the day earning and losing Relationship Capital due to its own actions. Upon its death, it quickly went into a dormant obscurity, where it remained so for 65 million years until it was discovered by a North Dakota teen in 1990. Upon discovery, it was excavated and examined by scientists who had discovered that some of their previous theories were dramatically incorrect. Their discoveries have since been publicized and broadcasted thereby bringing a certain amount of fame to this long-gone reptile.

The Effects of Relationship Capital Decay

But while our own actions can affect our Relationship Capital, there are other effects that would work to reduce our RCPs to zero. We see this happening in business settings all the time…the “what have you done for me lately?” and “out of sight; out of mind” syndrome. Just like radioactive isotopes have their own half lives, so does Relationship Capital…to a degree.

The above graph shows the effects of decay upon Relationship Capital by looking at three subjects. Subject A has achieved a fairly high amount of Relationship Capital in their lifetime, close to achieving fame but eventually faded into obscurity (possibly after their death?). The fairly mild decay in RCPs might indicate that the person was well liked within their own personal network. Subject B, much like (yet conversely) to Subject A had a similar run of achieving near notoriety, but never quite made it either. In contrast, to the rates of decay of Subjects A and B, subject C, due achieving fame, has had a relatively slower decay, which would be indicative of one of our great historical and influential figures.

Discussion Points

And while organizations like RNIA work to turn the theory of Relationship Capital into a practicality, there is current discussion of dealing with Relationship Capital Decay by possibly assigning expiration dates to some or all RCPs. What effects this will have as we transition towards the Relationship Economy is too early to tell.

Another issue is that if Relationship Capital can never be destroyed, it begs one major question; “Is Relationship Capital created or is it always there, but just undiscovered? Does it act like energy or mass in that it can neither be created, nor destroyed?

While for the purposes of practicality it might not matter in due course of business, the implications of one versus the other would be a complete revolution in understanding. If Relationship Capital can only be created and not destroyed, then it behaves similarly to entropy, or disorder, which would also lend itself to our current scientific understanding of our increasingly-expanding universe. Relationship Capital would stand as a value that is created at inception as an immediate interaction is developed between the individual and both parents.

If, on the other hand, Relationship Capital can neither be created nor destroyed, then it begins to raise certain esoteric and controversial issues, but would also conveniently align with a “Law of Conservation of Relationship Capital”. Provided this were true, we would be forced to develop a framework of understanding that Relationship Capital may also be owned by entities that have yet to be discovered or created. If this were true, then RCPs of all entities would exist in obscurity at zero RCPs until created.

From this discussion, we can see that there is much more to Relationship Capital that just “working a room”. I am of the opinion that there is a link between Relationship Capital and Einstein’s Unified Field Theory. We can begin to see it touch upon all aspects of our lives, and while more questions are answered, more arise. Again, the purpose of these articles is to spark both discussion and thought.

Stay tuned next month, for Part 6, when we will focus upon the cumulative and aggregative effects of Relationship Capital as it applies to systems.


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The Emergence of The Relationship Economy

The Emergence of The Relationship Economy
The Emergence of the Relationship Economy features TNNWC Founder, Adam J. Kovitz as a contributing author and contains some of his early work on The Laws of Relationship Capital. The book is available in hardcopy and e-book formats. With a forward written by Doc Searls (of Cluetrain Manifesto fame), it is considered a "must read" for anyone responsible for the strategic direction of their business. If you would like to purchase your own copy, please click the image above.

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