Relationships (transactional and sustainable)

Introduction

“…Genuine relationships……aren’t built in moments of convenience; they are tested and strengthened by the moments of change, challenge and transition……great relationships require effort and dedication. The most influential leaders don’t just meet people; they invest in them. They understand that authentic, enduring relationships are built through consistent energy, curiosity and care…”

Michelle Gibbings, 2025g

Transactional and sustainable relationships are 2 contrasting ways people, teams and organisations engage with one another.

Transactional Relationships

A transactional relationship is based on an exchange: each party gives something and expects something in return; it is primarily short-term, goal-oriented and task-focused.

“…A transactional relationship is rooted in immediate gain: what can I get from this transaction? The focus is short-term, often self-centred and contingent on utility, and these relationships often these are once fizzle once the benefit is achieved…”

Michelle Gibbings, 2025g

Characteristics:

• Exchange-based: “I give you X, you give me Y.”
• Focus: Immediate results, efficiency and meeting short-term goals.
• Emotional investment: It is minimal: the relationship ends when the transaction does.
• Power dynamic: Often hierarchical or based on authority (eg, manager and employee, supplier and client).
• Motivation: External rewards, eg pay, promotion or recognition.
• Trust: Conditional, ie “I trust you to deliver what we agreed.”

Examples:

• An employee works overtime for extra pay.
• A supplier provides goods only if payment is guaranteed.
• A manager praises a team solely when KPIs are met.

In change management:
Transactional relationships can deliver quick wins (eg, compliance, performance under pressure, etc) but they rarely create commitment or adaptability. People might do what’s required — not because they believe in the change, but because they must adhere or conform.

Sustainable Relationships

A sustainable relationship goes beyond exchange. It’s built on mutual trust, shared purpose and long-term commitment. These relationships can withstand challenges because they are grounded in respect, collaboration and continuous value creation.

Characteristics:

• Mutual growth: Both sides benefit and evolve.
• Focus: Long-term outcomes, learning, and resilience.
• Emotional investment: High as people care about the relationship, not just the outcome.
• Power dynamic: More balanced and collaborative.
• Motivation: Intrinsic, ie shared purpose, belonging and contribution.
• Trust: Unconditional or values-based (“I trust you because we share goals and values.”)

Another way of describing sustainable relationships: “…

• focus on the long-term
• show genuine curiosity about the other person's perspective
• recognise that a positive relationship require both give and take
• offer the benefit of the doubt and assume positive intent
• stay consistent and transparent, even when it's difficult

These elements are foundational for trust, which is the cornerstone of any meaningful professional relationship…”

Michelle Gibbings, 2025g

“… When the trust account is high, communication is easy, instant and effective…”

Stephen Covey as quoted by Michelle Gibbings, 2025g

Examples:

• A leader invests in developing their team’s skills for future success.
• A company builds partnerships with suppliers based on innovation, not just price.
• Team members support each other through change because they trust the process and purpose.

In change management:
Sustainable relationships are crucial for lasting transformation. They foster psychological safety, open dialogue and ownership. People remain engaged even when the change is difficult because they believe in the vision and the relationships supporting it.

Summary Table

In Practice

Leaders often start with transactional interactions (“Here’s what needs to be done”) but must evolve toward sustainable relationships (“Let’s build something that lasts”).
In organisational change, that shift determines whether people merely comply or truly commit.

(main source: Michelle Gibbings, 2025g)