Is this the “New Business Economy” or the “Back to Basics Economy”?
Customers are a primary relationship in for-profit businesses. In non-profit business, relationships are typically a bit more multi-dimensional since they include members (often of disparate categories) with whom relationships are very akin to the for-profit customers, as well as sponsors and donors who may also be members. Admittedly some of these boundary definitions blur, but in most non-profits and many for-profits as well, exhibitors and advertisers get added to the list of relationships for success. Many for-profits add investors to their list. Whether the organization is for- or non-profit, relationships almost always include employees and contractors. And, it’s rare that a business does not have relationships with suppliers. Yes, we’re discussing your business’ stakeholder groups and success of your business can be linked to your application of the three simple steps listed in the following business relationship success primer.
As our economy has changed we have seen many businesses come and go. It’s not uncommon to see a new “up-start” organization burst on the scene with pricing that is so unrealistically inexpensive that experienced buyers wonder how they can stay in business. Often the new organization, can’t sustain the pricing or the promised levels of service that accompany it. Sadly, to compete in this economy, many mature companies have made pricing and service adjustments and met the same fate.
Take a look at the business landscape now. Today’s thriving companies have placed relationships at the core of their success model. Your business relationship primer below will serve as a good reminder of how successful businesses operated in the “good old days”. Post the four simple steps in a visible location in case you are enticed to ignore what has always been true – business relationships can be your best guarantee to sustained success.
Your Business Relationship Primer
1. Meet their needs.
2. Establish a culture of trust.
3. Get their participation.
4. Keep the connection relevant.
Some of you will recognize these four simple primer statements as steps to success in the personal relationships you share with friends and spouses. That’s not surprising since this is an article about relationships. Although the focus here is on business relationships it turns out that there are vast similarities in both personal and business relationships.
1. Meet their needs.
Whether we’re considering relationships with customers, members, sponsors, donors, exhibitors, advertisers, employees, investors, contractors, or suppliers, meeting each group’s needs is paramount to sustain success. Each group must also meet the needs of our organization. For example, if we don’t supply a customer with what they need, we won’t get the relationship off the ground. Likewise, if the customer doesn’t supply our organization with what it needs, the relationship can’t begin. Since needs generally focus on product, service and/or exchange of resources such as money, the combination of these factors must work for both parties.
2. Establish a culture of trust.
Trust is foundational to all relationships. Admittedly, trust sometimes is a written agreement, but once documented, both parties can take comfort in the solidity of the relationship. How is that any different that a prenuptial agreement in which both parties care deeply for each other (we hope) and want to share their future?
3. Get their participation.
A level of participation between both parties must exist to maintain a successful relationship. Compare this concept to the personal and business relationships in your life. Do you really think you’ll continue to be a part of that civic organization if they don’t make you feel welcome and get you involved? You want to feel as though you “belong”. Will your customers stay loyal to your organization if you don’t appreciate them, get their feedback, give them great service and when possible, engage them in the relationship?
There are a myriad of ways to engage stakeholders. The popularity of corporate service projects is a prime example of stakeholder engagement. Your organization’s willingness to serve society and our community by participating in a service project such as building homes for the homeless, stocking a food shelf, or any of the countless choices available today, spotlights your organization’s values and commitment to citizenship in our society. Customers (or employees, contractors, exhibitors, suppliers, investors, etc.) gain a new appreciation of your organization and as a result of their engagement in the project, are more invested in the relationship.
4. Keep the connection relevant.
Participation in any relationship fosters allegiance. It opens doors to communication. The sharing of ideas and alternative solutions enhances the resourcefulness and inventiveness of your organization. And often that communication is the key to our third statement – relevancy.
Long-term relationships can only be sustained with relevancy at their core. Both parties must be relevant to even begin the relationship and work to retain relevancy. As an example, the customer must need your organization’s product or service. They must trust the product or service, and your organization. Your organization must need to sell your product or service to that customer. This age-old supply and demand theory still drives business and connects all manner of stakeholder groups to us in a cycle of success that continues to be significant today.
Business relationships can be your best guarantee to sustained success.
Perhaps the “new business economy” isn’t much different after all. Maybe it should be termed the “back to basics economy”. Celebrate and invest in relationships to sustain your business, your career, your investments and your future.
Contact Rosealee Lee, CAE, CM at Rosealee.Lee@dctc.edu or by telephone at 651-423-8604.
