Every positive thing that has ever happened to me in my professional career has come out of a personal relationship. I have never gotten a job, received a promotion, or switched organizations without the help of someone I knew and trusted, and who knew and trusted me. The dysfunctional and poor performing teams that I have been a part of (unfortunately, there have been a few) have failed precisely because human relationships broke down, or were never properly established in the first place. I repeatedly tell my two teenage daughters, who will soon enter the workforce, to remember this essential truth: in business, as in life, trust and relationships matter.

Linda Easley, president and chief executive of the Columbus, Ohio-based retailer The Limited, emphasizes the importance of this principle from the very first days that a person starts a job on her team. When asked recently what she tells new managers who come to work for her she responded, "I tell them: 'Take the first 90 days. The relationships you build in your first few months here are critical to you success. Try not to talk in meetings. I know you're going to want to demonstrate that you're really capable and you deserve to be here by showing your smarts. But if you listen and let the void fill with what's around you, you'll learn a ton.'"

Stephen Sadove, chairman and chief executive of Saks Inc., also spoke recently of the importance of relationships in crafting his successful career. When asked about his most important leadership lessons he says, "I've used opportunities to get involved and develop relationships with a diverse set of people as opposed to the narrow group of people I was dealing with day-to-day, and that made a huge difference. It shaped my philosophy in terms of the importance of relationship-building, and how to run a business." He goes on to say, "I obviously work with business issues, but I try to go out of my way in mentoring, coaching and developing young people. I tend to care a lot about the people and the relationships that they have, how the team is operating, the culture." Sadove concludes, "I've been amazed over the years how relationships that come out of one thing go toward something else. If you give positive vibes, if you show an interest, by and large a lot of people will react."

Indeed, the importance of the tone and example set by top leadership cannot be overstated. But relationships at every level within an organization matter as well. In a well-known Harvard Business Review article entitled "Eight Ways to Build Collaborative Teams," business scholars Lynda Gratton and Tamara Erickson provide practical suggestions for leaders who need to enable complex teams (those that are large, virtual, diverse, and specialized) execute major initiatives within their organizations. Among other recommendations, the authors' research shows that in order to maximize performance:

• Top executives must work to build and maintain social relationships throughout their companies. For example, the Royal Bank of Scotland built a headquarters that features an indoor atrium which purposefully puts employees into close contact with one another on a daily basis, encouraging social interaction and collaboration.

• Top leadership also needs to personally model strong relationships and a cooperative, people-focused culture. Teams are very in tune to the example set from above.

• Team leaders should, if possible, ensure that some members of a new team already know each other. At Nokia, when skills must move from one business unit to another, entire small teams are transferred, rather than shuffling individuals. This ensures cohesion and more open knowledge-sharing.

• Those who lead complex teams should focus first on articulating the task at hand, but as the project goes forward emphasize the importance of relationship-building. If a team knows and trusts one another, when inevitable conflict arises, problems can be much more easily resolved.

Sometimes, relationship-building is incredibly difficult. But those who persevere in developing trust and establishing connections even under challenging circumstances will prevail over time.  In 1998, Gary Loveman moved from a position in academe to take over as chief operating officer of the casino company Harrah's. Insiders resented Loveman and felt that several internal candidates were more deserving of the job. Loveman knew he would have a particularly difficult time with the chief financial officer, whose support and expertise he desperately needed. Loveman worked especially hard to win the favor of this individual, conferring with him frequently, sharing information, and including him in meetings and decision making. At least in part out of his focus on the importance of this key relationship and others, Loveman was named CEO of Harrah's in 2003.

Does your organization promote a culture that values the social side of life, and that emphasizes the quality of daily human interactions? Are relationships important at your company? Do you have at least one good friend in your workplace? Do you as a leader understand the criticality of knowing and trusting your team members? Do you work to build relationships even when it is hard to do? Some might argue that the answers to these questions pertain more to the "soft" side of business and, therefore, are not important. But those leaders and organizations who understand the fundamental truth that trust and relationships matter know better.