Relationship Capital Flywheel
Build trusted relationships early, maintain them, and activate them in crises
- Difficulty
- Advanced
- Time to result
- ~ongoing to results
- Steps
- 6
- Confidence
- 98%
The Relationship Capital Flywheel begins with peers rather than powerful targets. Develop genuine working relationships with capable people in your institution, adjacent sectors, and other countries. Exchange perspectives so both parties understand developments outside their own organizational bubbles. Continue the relationship through periodic conversations even when neither side needs a favor. Repeated useful contact creates confidence in the other person's judgment and intentions. As careers advance, yesterday's peers become experienced experts and decision-makers, making the accumulated trust especially valuable during uncertainty or crisis. Each successful exchange then reinforces the relationship and introduces further contacts. The result is not merely career access; it is a distributed intelligence network that improves understanding, coordination, and decision quality.
Origin
Robert Hormats described maintaining relationships formed in government, finance, and international diplomacy, including contacts he could call years later during crises or major policy developments.
Core principles
- 01Relationships appreciate through repeated sincere contact
- 02Trust is built before it is urgently needed
- 03Peers can become future decision-makers
- 04Cross-sector relationships improve situational awareness
- 05Reciprocal exchange is stronger than transactional networking
How to run it
- 1
Build peer connections early
Form relationships with capable colleagues while everyone is still developing. Focus on shared work, curiosity, and mutual respect rather than rank.
Pro tip Include people in adjacent sectors and other countries who see different parts of the same system.
Watch out Do not treat seniority or immediate usefulness as the sole measure of a person's value.
- 2
Exchange perspectives
Share what you understand about your sector and ask contacts how events appear from theirs. Make each conversation informative in both directions.
Pro tip Bring a specific observation or thoughtful question instead of sending a generic networking message.
Watch out Avoid sharing confidential information or presenting speculation as fact.
- 3
Maintain continuity
Stay in touch through occasional calls, meetings, or messages when there is no urgent request. Congratulate achievements and check in when events affect the other person.
Pro tip Use a lightweight reminder system so valuable relationships do not disappear under daily workload.
Watch out Contact that occurs only when you need help will feel transactional.
- 4
Map trusted expertise
Learn which contacts understand particular regions, institutions, markets, and decision processes. Also identify who is likely to exercise authority during a crisis.
Pro tip Record expertise and context rather than reducing people to job titles.
Watch out A prominent title does not guarantee relevant knowledge or sound judgment.
- 5
Activate trust when needed
During a crisis or major decision, call the person whose knowledge and role fit the problem. Existing confidence makes rapid, candid communication possible.
Pro tip Ask focused questions and explain why the answer matters.
Watch out Do not overuse a relationship or pressure a contact to cross ethical boundaries.
- 6
Reinforce reciprocity
Return useful information, introductions, or support after receiving help. Continue the relationship after the immediate problem has passed.
Pro tip Follow up with the outcome so the other person sees how their perspective contributed.
Watch out Failing to reciprocate eventually stops the flywheel.
In the wild
After joining Goldman Sachs, Hormats regularly visited former colleagues in Washington. He shared observations from financial markets while they explained how government viewed economics and finance. The reciprocal exchange preserved old relationships and improved understanding on both sides.
→ Cross-sector relationships became a continuing source of information, confidence, and professional effectiveness.
A corporate leader maintains relationships with peers in government, logistics, and overseas suppliers. When a geopolitical disruption threatens production, the leader quickly reaches trusted contacts who can explain policy, local conditions, and likely decisions.
→ Established trust produces faster, more reliable situational awareness than cold outreach during the emergency.
Common mistakes
Networking only upward
Ignoring peers overlooks the people who will accumulate expertise, authority, and shared history alongside you.
Calling only when you need something
A relationship maintained solely through requests lacks the reciprocity required for durable trust.
Living inside one institutional bubble
Contacts who all share the same incentives and information sources cannot provide a sufficiently broad picture of the world.
Is it for you?
Best for
It is best for professionals operating across organizations, governments, markets, countries, or other environments where no single institution has complete information.
Not ideal for
It is not ideal for people seeking immediate favors from superficial contacts without investing in trust or reciprocity.
From the transcript
“So it was those those personal relationships I think are very important and often underestimated.”
“And particularly when you're in a crisis, you want to know who to call, who to talk to, who's going to be making decisions at…”
“So these personal relationships are extremely important, and it's important, prickly for younger people who are now moving up or are just starting out to…”
From the episode
Robert Hormats on the Art of Business and Diplomacy (Podcast)
Robert Hormats