Transactional vs. Relational Services

As service professionals, we are awesome at what we do. We create value based on our values and all the ways in which we provide our knowledge, experience, and skills to our clients. The good news? They even pay us for this!

We may be less skilled in understanding how to get and work with those clients, however. This article will examine two interrelated models – the “nuts and bolts” of service contracts and agreements, and ways in which we connect with the people we work with on an interpersonal but professional basis.

When we look at a transactional model of doing business, it can be reduced to having something to sell that someone else buys. Fifty years ago this almost always required some sort of interaction with a real live human – in a store, on the phone – unless you were simply mailing in an order with a check.

What percentage of the things do you buy for your business, family, or self that are done without ever knowing the people involved in the transaction? Unless it’s a local business I’m assuming it’s low to none. The explosion of Artificial Intelligence will only accelerate this trend.?

In looking at new business opportunities in our field of providing professional services, at one end of the continuum is the “Request for Proposal” – or RFP.? With only a slight exaggeration you get a complex set of parameters, with no opportunity to clarify any assumptions or confusing terms, and then you spend hours knocking yourself out to produce a stellar proposal – only to find yourself in one of three “zombie zones.” They didn’t get back to you (because “we will only notify successful applicants”), or you got the gig and found out it was significantly different than you believed, or you realized that the people in charge of the procurement are not the ones you’ll be working with. To be honest, I can’t agree to work with people I haven’t met and connected with.

There is certainly a need for transactional tasks – compensation analyses, employee handbooks, comprehensive job description alignment gigs and the like. It’s a product produced by your service. If this is your specialty, and you have the good fortune to have reasonable, friendly, and drama-free clients, then go for it. There may be a business relationship that deepens over time, is enjoyable, and even profitable, but there’s also the chance of “one and done.”

On the other end of the spectrum is the relational way of choosing a coach or therapist. Yes, there needs to be a transactional discussion about logistics, payment, policies, etc. however those are secondary. What is more important is the feeling sense – our “whole person” intuition about this provider’s integrity, curiosity, and empathy; and a vision at the start that they are going to help us know ourselves better and can provide the “guide service” to a higher level of success and ease.

My experience and biases are that enhanced relational skills in the service of our business will get us better and longer work with more meaning and fulfillment than just relying solely on the transactional. People hire us more for their experience of who we are, rather than what we do.

So what are some of the skills involved? This list is by no means mutually exclusive, but hopefully will serve as a means to clarify your thinking:

Transactional

• Emphasis on the written materials
• Ability to understand complex constructs
• Defined scope of work
• Clear end of the project
• Lends itself to project management
• Designed to solve particular a need
• Relational aspects can be quite positive

Relational

• Emphasis on the quality of the interaction
• Ability to balance structure and spontaneity
• Open set of possibilities
• Negotiated end to the conversations
• Goals and processes may evolve
• Designed to enhance learning and growth
• Transactional elements can be precise

Confusing, “power-over,” and demanding relationships can negatively impact our transactional gigs. Conversely – loose boundaries, lack of specifics in the agreements, and/or money issues can constrain our professional relationships.

Here are just a few of some relational competencies that can be useful in any business situation:

• Active listening (being able to reflect back what you’ve heard and asking for the same)
• Balancing advocacy (making a point) and inquiry (asking helpful questions)
• Awareness of what we’re feeling and what we sense is happening for the client (otherwise known as Emotional Intelligence)
• Being secure enough in your professional and personal self to be able to set boundaries and/or walk away from a bad situation
• Using humor appropriately; the ability to be light-hearted
• Being curious, rather than judgmental when you're feeling some tension
• Looking for opportunities to turn obstacles into opportunities by reframing the situation
• Celebrating mutual wins

How do you balance these two important sets of competencies? Who are your mentors and coaches who can share their pearls of wisdom with you? And how can you commit to your ongoing professional development and skill-building without negative self-judgment?

To summarize, all transactional business requires some type of relationship, and every business relationship has its transactional elements. The key is to know where, when, and how to focus your awareness and energies for the best outcomes and financial success. Otherwise, you would start up a widget factory, right?