WEBSTER dictionary defines goodwill as a kind feeling of approval and support and a benevolent interest or concern. It also defines it as the favor or advantage a business has acquired, especially through its brands and good reputation.
Undoubtedly, the Philippines is a nation heavy in relationships, and we see it ingrained in our culture. Having good relationships also forms part of the decision-making in business — that relationships require a level of trust and that trust is instrumental enough to merit long-term business relationships is tantamount to knowing how relationships work in this country. This is also why companies invest in salespeople and train them to develop skills akin to relationship-building to serve the same purpose.
In practice, goodwill refers to the unspoken social behavior between and among parties, entities or individuals arising out of any kind of transaction or relationship. It is a judgment call by the party or the individual and is typically unexpected and infrequent and not meant to be abused; otherwise, this becomes a business-as-usual scenario. This means that extending goodwill need not be an everyday thing but rather could be perceived as an exception to the rule. Anything given for free is considered goodwill and has its corresponding value. It may be of less value to the giver — immaterial in this case — but to the receiver, it could be otherwise. Goodwill can be the foundation or the starting point to build long-lasting and sustainable relationships with our customers, clients and partners.
Along the way, goodwill becomes an inherent part of maintaining business relationships. Practicing this requires, in a sense, some degree of emotional intelligence and the long-term vision of wanting to maintain this relationship. You practice goodwill for that organization or individual because you want to invest in that relationship for the long term.
We see this applied in many cases. Examples include inserting a free gift or a freebie when ordering from an online shop, heeding the request for an extension in delivering certain project milestones, accommodating last-minute meeting requests when your principal is in town unexpectedly, and many other things.
When one gets to practice goodwill, one gives the impression to the other party or individual that one values the relationship being built, and one merits more business in the long term. Practicing goodwill doesn’t happen overnight, though, so here are a few tips on how to ensure we can start uncovering the benefits of this skill:
1. Understand the dynamics of your transaction and potential roadmap. For freelancers and subcontracted individuals, see to it that the relationship does not remain transactional, and exercising goodwill will allow you to show the other party that you are here for the long haul, where the long haul means you can support similar projects down the road. Delivering stellar results in the process will also be seen positively.
2. Goodwill does not necessarily equate to monetary benefit. It can be time, resource or labor, as examples. Non-monetary values are equally considered as goodwill and can foster a sustainable business relationship in the long term.
3. Goodwill, at its core, cannot be automated. It is an organic act by the giver to the other party, equivalent to an intangible asset that can make all the difference in the world of business.
Practicing goodwill is a discipline that requires a good emotional quotient. Dealing with people every day will help in understanding and unlocking the dynamics that would lead to a longer-lasting business relationship in the process.
Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm. Her advocacies include food innovation, nation-building, and sustainability. The author may be reached at [email protected]
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