How Small Companies and Small Vendors Can Become Real Partners

There is a great interview with Ken Piddington, CIO of Global Partners LP, on the Network World website about how he implemented an innovate vendor partnership program within his company.

I highly recommend that everyone from big companies, and those who are vendors to large corporations, read this article.  It is full of great suggestions, concepts and tips for improving ways that business can maximize their relationships with suppliers (and create win / win results).

[Note: I have met both Ken Piddington and the writer, John Dix].

But you do not need to be a giant multi-national company to expect meaningful partnership relationships with your vendors.  The same concepts that Ken has put into place are also possible for small companies and solo-entrepreneurs.  The expectations of a strategy for efficiency should be present in all working relationships.  Both the vendors and the clients must create a mutual understanding and a policy of respect.

Here are my thoughts for how small vendors and small customers can better create win / win relationships:

1.  Be realistic.  As a customer I have high expectations of what I expect from those who provide me with products and services.  At the same time I also know that I am a small fish in the ponds where I purchase.  Many small businesses complain that those from whom they make the least money complain the most.  I have talked with several consultants and other businesses who routinely (and happily) fire clients who act as if they are the only priority. As a customer I try to not set unrealistic demands and expectations on those with whom I work.  When there is a difference of opinion in how a situation is handled I attempt to not have an overblown and knee jerk reaction toward my vendors.  Threatening to take my tiny spend elsewhere will not put the fear of God into them, and I do not like to have an adversary relationship with anyone whom I do business.

2.  Ask questions.  When I assume I know what is going on  behind the scenes I almost always screw up the relationship.  The more questions I ask of my vendors and my clients, the better chance I have of getting it right.

3.  Seek solutions through understanding.  When conflict does arrive I try to seek an understanding of their situation.  I had one vendor point out that while they like doing business with me, they do not make any profit from my contract.  They keep me as a client because they believe in me and the growth of my company, but once I realized the realities of my real value to them, my expectations changed.  We continue to work together, and I refer them other clients whenever I can to make up for what I am not paying them in dollars.

4.  Think Win / Win.  Regardless of being the vendor or the client you both should approach all interactions from a pursuit of "win / win" (beyond the exchange of money for services). When this is done well then there is more opportunity for victory.  Too often I used to think my writing a check (as a client) or receiving a check (as a vendor) as the most important part of that relationship.  That changed after having a vendor relationship with a PR firm who I later realized only saw our relationship as their cashing my checks. There was no long term win / win from them.  The experience was a disaster.  Over time I could have provided them with a good amount of referral business beyond the engagement, but they were only concerned with the transactional elements.  They did not care about me, thus I now send my referrals elsewhere.  From the start that relationship was never about the bigger picture for either of us, and that it was doomed to fail.

The PR disaster taught me to interview vendors and seek partners who want to see an ongoing friendship beyond just the transaction.

5.  Say "Thank You".  Even when you are paying someone to do a job, thanking them goes a long way.  When you need to complain, be sure to wrap it in the context of all the good things the vendor has provided you along the way.  If you just focus on the problem, then the value of all the positives that have come before are washed away in a flood of emotion.  If you are the vendor, the "thank you" to the client is a reminder that you appreciate their business.  It is easy to get busy or to turn gratitude into an automated task.  When both partners remember to show appreciation, the relationship lasts longer and pays more dividends.

Regardless of if you are a big company or solo-entrepreneur (or any size in-between) you want meaningful partnerships with your vendors. As a vendor you long for clients who want to see you be successful, not just those who want the best price.  Put plans in place to create better relationships and everyone wins.

In the Network World article Ken Piddington said:

"I said I no longer wanted event driven relationships. I want it to be better planned out, not just you selling me and not just me calling you because of a problem."

Real power comes from the cultivation of long-term and mutually beneficial relationships where everyone is has more success because of those relationships than they would without them.

Have A Great Day.

thom singer

The Hierarchy of People

In school we learned about Maslow's Hierarchy of Needs, a theory in psychology, proposed by Abraham Maslow in his 1943 paper "A Theory of Human Motivation":


Maslow is regularly cited in business, government and sociological studies and his theory simplifies what is important to people. Before you can go to higher levels, you must satisfy the lower needs.

During the recent years of recession and economic uncertainty many people are living on the second level ("safety / security"). They have seen jobs become unstable or evaporate, and they are worried about the future. When living at this level we are very self-focused.

While humans always strive for the top of any pyramid, and certainly desire "self-actualization", too many are congregating at the bottom levels without a plan to go higher.

Interesting to me is how many people try to skip the middle. In good times and bad there are large numbers that are stuck in "safety needs" who could be raising themselves up. They are not moving toward "self-actualization" because they fail to see the importance of other people. They attempt to jump for the top layers and never create a stable foundation.

Years ago when I began writing and speaking on the topic of "The Power of Business Relationship and Networking" I was told the subject was fluffy. Today smart companies are demanding the skills of building meaningful connections be part of the training provided to their employees. After years of recession business leaders are realizing that much of their success has come through their networks. Thus they are questioning why they (and their employees) do not have more long-term and established relationships.

I am getting inquires to speak from companies, law firms, and associations of all sizes who are struggling to get their team up the pyramid. They think the "social" step should be easy, but are constantly discovering their people are not embracing the importance of business relationships in a way that allows the company to win more business. All opportunities come from people, and to sustain success you need to focus on cultivating your network!

If you want to reach the top you cannot skip the "social" level in the middle.

People matter. While it seems intangible, (and hard to manage, count, and reward) it is the only path to achieving real success.

Have A Great Day.

thom

Don't Burn Your Bridges By Having To Be The Smartest Person In The Room

When seeking answers to help you navigate the path toward success, sometimes a double dose of humility goes a long way.

Very often inexperienced entrepreneurs long for the advice, guidance and direction from successful business professionals, but fail to receive the boost they desire. We live in a relationship economy, and for the ecosystem to work, there must be give and take. Too often those who seek to take, forget they also must give in return. Their focus on what they desire clouds their judgment. Sometimes their gift is no more than allowing the more seasoned executive to share. They must be conscious of how the relationship is established or they could end up with nothing.

When they get their audience with the person of achievement, some spend too much time trying to prove how smart they are and kill their potential for a mentor, adviser, board member, investor, or a transfer of knowledge.

We all have egos and long for the respect of those we admire, but when exposed to greatness it is best not to try to demand the position of an instant peer. You earn respect, you do not demand respect from those at the top. To be a true leader, you must recognize the situation and acknowledge that sometimes it is best to follow others.

I have found that those who are the most successful (financially, emotionally and spiritually) no longer have anything to prove, and thus are beyond the need to be the smartest person in the room. They either know they are the brilliant one... or they know they are not (to be successful is not bound to being the smartest)... and their own victories speak for themselves. However, they expect those who seek their assistance to understand the realities of the situation, and to act accordingly.

I have struggled with this, and so have many others. Opportunities are lost when we must be right. It happens in business, politics, religion, and relationships, (anywhere human beings interact) that deals die before they are ever born.

Most successful people like to give a hand up to others who are making the effort to better themselves. They take pride in being a catalyst that launches others to the top. But they will not help others who lead with pride and ego. They have no reason to want to support a know-it-all.

When you get the chance to intact with the person who has achieved the success you desire, ask questions, listen, and learn. Help build the bridge of a relationship that can bring you both to a mutually beneficial exchange. If you disagree, resist the urge to "school" them on your point of view. While you might be right, you also might be missing some key pieces of information that will alienate them from serving as your guide. The best leaders seek to see the situation from other points of view.

Killing the golden goose hurts both you and the goose. You lose your easy gold, and they miss out on the joy of providing you with the riches they possess.

Have A Great Day.

thom

Who Is In Your Community?

I just got off the phone with NYP Speakers community. Since New Year Publishing launched NYP Speakers earlier this year, we have hosted a monthly conference call with the authors and speakers who are part of our group. The idea of the call is that the business of writing and speaking professionally can be a lonely way to earn a living, and having a group of friends to share "best practices" and inspiring success stories makes everyone better.

The calls are short (less than an hour), but often powerful in the ideas discussed. While I lead the call, I still learn something new about promoting books, social media, list building, digital media, newsletter tips, the speaking business, etc....

The idea of community is important. I wrote earlier this week about the power of belonging to your industry trade associations and actively participating. Being connected to others who are working in the same trenches as you is a bonus that pays off in countless ways. I find that knowing others in your line of work makes the path to success more visible.

I shared with a friend by email that I am rarely wary about competitors, as every deal I do as a keynote speaker (Emcee, facilitator, discussion leader, Conference Networking Catalyst, breakout speaker, etc... ) involves competition. I win some, I lose some.... but most meeting planners and other potential clients talk with more than one professional speaker before making a hiring decision (this is true for most vendor selections - regardless of industry). Never twice have I competed with the same person for a speaking gig. The country (world) is too big and there are too many conventions, meetings and seminars in need of professional speakers. Thus I have found I get more from sharing business practices with other speakers than I would if I saw them as the competition.

I spend a lot of time consulting with clients about the power of a community. Belonging to (and participating in) organizations in your industry and local geographic area is key. While it is easy to get busy and rationalize a million reasons not to participate, most people seem to desire to be more connected. Being part of a community is a basic human ritual that has existed as long as we have walked the earth. Do not avoid the pull of belonging. Find a community.

If you cannot find the right community, create one!

Who is your community? You should have social communities, business communities, spiritual communities, family communities, neighborhood communities, special interest communities (hobbies), etc....

Have A Great Day.

thom

Hamsters Live Alone And Run On A Wheel. Are You A Hamster? (Gosh, I Hope Not)

We are all being pulled in many different directions. Very important parts of our lives have conflicting goals and it makes it difficult to succeed in any one area, much less capture victory in each space. This crazy-busy world means we often wear blinders, and that can limit our true effectiveness.

To win you must know what it means to win. A hamster on a wheel never gets to a destination. It runs and runs, but stays in the same cage. Take a moment to know what success looks like so that you will recognize it when it appears. Get out of your cage and make things happen.

Embrace the power of networking. You do not live on an island (I mean this metaphorically for those literalists in Honolulu or New York City!). In every industry the people you are connected to are the pathway to opportunity. Limit your participation in a "Relationship Economy" and you find yourself coming up short.

In any economy capital and currency must move in multiple directions. The same is true in our "Relationship Economy". You must give and take. Many want to give, but then get too caught up in their need to take, and they never get around to it. You must do more than want,... you must take action. It is easy to get distracted by the squirrels (Did you see the movie "Up!"?).

Think, talk and act in terms of mutual understanding. Discover and respect the points of view and needs of others. We instinctively play to our own strengths, but those who will achieve the most will also prop up others in their quest. Have their goals on your mind along side your own aspirations, and you will find yourself becoming more important in your business community (conversely, worry about only yourself and you will become expendable).

The hamster on the wheel lives alone and spins on that wheel. You are not a hamster, so get out and communicate with other people and build up your "Relationship Capital".

Have A Great Day.

thom

Helping Others Succeed Keeps You Employed

Could the people who hire you switch to a competitor and not miss you? Could your boss replace you and have no hiccups in their business?

Are you important to the success of others? Are you relevant to their business plan? Do they know that you help them succeed?

If your product or service is a commodity (or the clients can mistakenly think you are a commodity) then you have to do more than "your job" if you want to keep your job.

Seek ways to provide value beyond what you are charging. Have an interest in people, and let them see that you care about them as a person. Go deep in your empathy.

I worked with a vendor who clearly only saw our relationship as one where I paid them for services. I tried to establish a more meaningful friendship, as there was the opportunity for long term work (and referrals), but they were all business. They were also replaceable. That company no longer gets my money.

Concentrate on creating and cultivating meaningful and mutually beneficial relationships and you will get both the work and the joy of being an important part of the lives of others.

Be "all business" and you will have a lot of "transactions". You will also have to work much harder on finding new clients, as your current ones will eventually move on to your competition.

Have A Great Day.

thom

Do Not Spend Your Time Picking Up Pennies While Stepping Over $100 Bills

Tough economy aside (yes, we need to stop talking about the economic problems of the last two years!), you have to see the big picture if you want long term success. I have learned this lesson the hard way in my life, but I come to appreciate that those who surround themselves with iron clad policies and procedures in how they do business can circumvent the long tail and cut off future profits and referrals.

When we do business we are interacting with human beings. People come with all sorts of background, baggage, opinions, emotions and feelings. Not a good combination for someone who wants everything to be corner stapled and signed on the dotted line.

The cliche "under promise and over-deliver" comes to mind. I work with too many people who deliver exactly what they promised and then want a trophy. Well woopty-do, you delivered what you promised. Shocking, yes, but doing your "job" is just the starting point. The thought of giving a little more does not always have to come with a new contract and a bill for additional services. Humans are impressed when you give them a little more than was expected. To make customers say "wow" you have to bend your own rules and find a way to make people feel they are special.

The most successful people I know (those who are successful financially, emotionally and spiritually) do not nickle and dime those around them. At a restaurant they split the tab down the middle, even when the other person had an extra glass of wine. In business they host their best clients for special events without tagging on additional money to their invoice (aka, provide extra value). With friends they celebrate victories no matter how small (what is important to the other person is important to them).

People who spending their time picking up pennies while stepping over $100 bills never even know they are doing it. They view every interaction as a potential for a win/lose... and they want to ensure they win. But win/win is not just a catchy theory that motivational speakers sing from the stage. It is real. Just because you give a little more to a customer without charging them, you do not lose.... you actually win -- as that person will invest more money with you over the long run and recommend your products and services to others.

If your customers feel they only exist in your world only to pay invoices, then they will eventually move on to your competition. You may have thought you won, because you got the money up front, you missed a whole pile of cash that could have been delivered to your doorstep in the future.

Look around at your business policies. Is everything you do directly tied to billing the client? Do you even know what you clients value from you company? (Those pesky humans again, each client will hold different things that will impress them).

How about you... what have you done lately for a client that gave them value and did not require them to pay for it (I do not mean emailing your newsletter!).

Have A Great Day.

thom

Winning In The Relationship Economy

We are living in a "relationship economy" where you need to have more than just skills to find success. There are many people with talent, as that is the currency you are expected to pay with to have a seat at the table. Talent and education are important, but they are not enough.

Hard work is good, but again, in the current global financial climate, everyone is working hard. There are still only 24 hours in the day. Time is the great equalizer in the current situation. No matter how hard you want to pretend you are working, others can match your effort.

Decision makers are facing hard choices in all areas and they cannot afford to make mistakes. Those selecting vendors or making hiring decisions are frightened as their own futures might be hanging in the balance. They are confused, as they have multiple options. They will use their heads to gather information, but will make the final choice with their heart.

It comes down to your reputation and how they "feel" about you. This can be your individual or corporate brand in the community, but in this "relationship economy" it is all about perception.

This angers some. One person I know with an MBA was dumbfounded when a promotion he coveted went to a co-worker who had never finished college, but had come up through the ranks in the company where they both worked. It never dawned on him that her relationships could trump his sheepskin in the world of the corner office.

A sales professional friend recently lost a deal to his competitor because an executive at the prospective client "liked" the owner of the other company. He did not even know how to compete in this arena, since he worked for a larger out-of-town corporation, thus he had no local boss.

The mistake that many people make is they put too much faith in the "USP" (Unique Selling Proposition) of their product or service, without regards to what the marketplace values. If you are selling a commodity (or if your clients can remotely see your product or service as a commodity.... remember, perception IS reality!), then you are wasting time in how you are pursuing business.

Relationships matter.

Do not rationalize your way around this.

Look at your competition. Do people know them better? Do referral sources like them better? Are they winning business? Are they opening new accounts that you are not aware were seeking your services until after the fact?

If you answered "yes" to the above four questions, or discovered yourself focused on the subjective nature of the words "know", "like", "winning" and "opening"...then you are in trouble in the new "relationship economy". I am not kidding. This is a problem.

With business environments changing, too many executives are hoping that the changes are not real. But the "relationship economy" is not a fad. People do business with those they know, like and trust. This has always been true, but now they know more people. The internet, social media and other technologies make introductions, communications and information more pervasive. "Like and trust" are now head and shoulders above "know". It is easy to be known, but harder to reach the deeper levels that are needed these days.

You cannot rely on prospective customers hearing what you are saying, as there is too much noise out there. You must enlist the community at large to help cultivate your reputation by making you part of the ongoing discussion. Both live and online, if nobody is talking about you, then nobody else is thinking about you. Out of sight is out of mind, and that equals death.

So what can you do? Make this a major priority NOW. There is no time to waste if you think your competition is currently engaged in creating strong personal connections with those who have the ear of your business community. Either you control the conversation or you allow others to dictate what is said about you and your industry.

For real impact you might need to have paradigm shifts. Who in your organization is leading the charge for your outreach? (in person and online). It does not need to be the CEO, but a person must be publicly acknowledged as the "face of the firm". This individual has to have the visible support of the company management internally and externally. They must be seen as the credible spokesperson and have the respect of their co-workers.

The effort to expand your reach has to be an agenda item at all meetings going forward. When a company makes their image and visibility a priority they will see results. If they are just giving lip service to the topic or think there is a short term fix, they are destined to fail.

Finally, you must make a financial and time investment in your plan. You cannot reach the highest levels of reputation prevalence without an entertainment and education budget. Hosting informational and social events for clients, prospects and referral sources are key to extending your reach. A combination of live events and online webinars along with newsletters, blogs, PR and participation in social media will all work together. A pre-planned schedule with mixed activities will allow you to touch everyone you desire in a variety of ways.

In the end, success in the "relationship economy" depends on your taking ownership of your relationships.

Have A Great Day.

thom