Its so secret that in the past year, McDonalds has beefed up their menu. Certified Angus Beer burgers have invaded the iconic McDonalds menu, and customers seem to love them. The third-pound lineup includes: the deluxe, mushroom & swiss, and the savory bacon and cheese. The burgers are made with USDA-inspected Angus beef and are intended to be more "gourmet" than the average McDonald’s offering. For instance they come on "bakery-style" rolls in order to appeal to those who would normally opt for a different burger chain over the golden arches.
With $3.99 a pop, McDonald’s is able to sustain a more competitive advantage against restaurants with a higher quality alternative to fast food. Not only does this relationship work for McDonald’s, the Angus Beef brand is further instating themselves as the affinity in beef. Boasting that less than 8% of all beef makes the cut, Angus Beef is continuing to find their product in American’s hands, or for that matter American’s stomachs with this business-to business relationship with McDonald’s.
http://www1.mcdonalds.com/angus/
Ralph Roberts is the President of Worthington Industries Integrated Building Systems.
He took a moment to talk with Kathy Hoyt and discuss the role of business relationships in his success and the success of Worthington Industries.
Kathy: How has your approach evolved throughout your career?
Ralph: I’ve seen the full spectrum from concentrating on personal relations to company centered Value Propositions.
In the economic down turn in the 80’s the personal relationships were being limited due to less money being spent on entertainment. The shift went to B2B relationships and became more professional.
Relationships are being replaced by associations and event shows instead of a high concentration on “entertainment”.
Today it’s about how your business value systems are similar to your customer’s business relationships value system so you can work together.
Kathy: Who helped you develop these skills?
Ralph: When I first started Worthington Industries 37 yrs. ago the company was small so I had access to the Executives. These Executives had a strong customer focus and I saw them dealing with customers on a daily basis.
The WI Philosophy was already in play and was being demonstrated in the contacts with customers. The philosophical needle was very important in all areas of the company and an esprit de core was developed and lived.
Kathy: How have the skilled contributed to your success?
Ralph: The skills applied to all aspects of the business. The philosophy was driven throughout the organization.
You got put into situations and had to deal with it. There were no training programs so you had to figure things out for yourself. Some survived and some didn’t.
The common values were the deciding factor. When faced with a tough decision, I did the following steps:
The Philosophy card “taught” you the skills you needed.
(Note: When Tom Peters interviewed John H. McConnell there were no written policies in place – only the Philosophy card!)
Kathy: Can you think of a time when the relationship saved the customer?
Ralph: The Tenneco Company had had a relationship with Worthington that wasn’t so good. When we called on the purchasing manager he said he would never to do business with us again.
After repeated calls over a period of two years, we were finally able to rebuild the relationship by showing them we could add value to their company. It turned out to be one of our largest contracts.
Allen Bradley was a targeted account for us and when first contacted, the said “no.” The account manager was instructed to call on them every 6 weeks, develop the relationship, show how WI could add value.
Our reasoning was eventually they will get in trouble and when they do, we will be there to help. It worked.
Kathy: How is business relationships managed as a core competency?
Ralph: Today the Philosophy is formally introduced in the orientation program and is reinforced through all facets of training and interactions.
Look at the card to make a decision. We also use the TIPS process we learned through S4 to improve our listening skills and really understand our customer’s needs.
In 2008, we started a “Transformation” that brought teams together to become more efficient. Customers are seeing improved quality, service and cost effective solutions.
When customers tour the plant, an operator is able to talk to the customer and tell them exactly what they are making for that customer. Customers feel good that WI is doing all it can to improve quality, service and cost.
Kathy: When did the relationship cause you to lose a sale?
Ralph: I had a great relationship with a customer and thought he would never take away his business but he told me that we weren’t competitive with our pricing. Just because you have a great relationship you have to remain competitive.
He gave all his business to a competitor! A good business relationship is good to have but not enough to keep the business.
Kathy: What advice would you give about building relationships?
Ralph:
Kathy: If you could give one piece of advice, what would it be?
Ralph: How well do you know your top 10 accounts? Not the statistics and number but what is their growth plan, fears, and can you help them meet their business goals.
Can they articulate how Worthington Industries is helping them? There should never be any surprises in working with one of your top 10 customers.
Kathy: How has the economy effective business relationship?
Ralph: There is now a new normal. Employees are being cut from the work force and organizations have to go deeper than they would like just to stay in business.
Trust gets hurt and will take a long time to recapture it. Some companies have had to cut the number of suppliers they are using just for economy of scale – even if it was a good relationship.
In some cases, some of the preferred suppliers have gone out of business forcing them to buy from a company they might not like.
Companies are worried about the financial stability of the suppliers even if the relationship is good.
These are very trying times but it will come back. As the market comes back WI will be well positioned because we have quality products, a quality company and financial stability.
Ralph Roberts has been with Worthington Industries for 37 years. He currently serves as President of Worthington Industries Integrated Building Systems.
He serves on the Boards for Worthington Armstrong Venture (WAVE), ThyssenKrupp Steel and Worthington Industries (TWB) and Spartan Steel Coating for Worthington Industries.
Anthony Iannarino is President and Chief Sales Officer for SOLUTIONS Staffing. He is a consultant with B2B Sales Coach and Consultancy, and teaches at Capital University.
Joe Sperry sat down with Anthony Iannarino last week to discuss how his handling of business relationships contributes to his success.
Joe: How has your approach to relationships in business contributed to your personal or your company's success?
Anthony: My personal approach to relationships in business is based upon the idea that creating value together requires a relationship based on trust.
Mutual trust allows us to share ideas and information that might not otherwise be shared to explore potential ideas that allow us to exploit opportunities together, to solve problems, and to share business metrics that help both our companies do better work together than we would otherwise.
For example, 30 days after we start a large staffing project for a call center, we will share our turnover data. Initially some of our clients don't want to share their internal hiring data, but eventually they see it's the best way to discover how we improve our results together. Sometimes we have lower turnover numbers, and we share our on-boarding process with the client to help them improve their own results.
It's not always easy to build this trust, and sometimes there are individuals within some companies who cling to the idea that vendors are disposable. But once they have a successful business relationship, they understand the great value that a trusted business partner can help create.
Joe: How has proactive relationship management impacted both your organization's top-line and bottom-line performance?
Anthony: We schedule quarterly business review meetings with our clients. In addition to being a differentiator, this proactive approach has allowed us to improve our top and bottom line by defining the relationship as something more than a "vendor" could offer. In many cases, this approach by itself has helped a number of clients to move to us exclusively. This, in my opinion, is the response to "act like a vendor, I'll treat you like a vendor." Because we take a serious interest in our performance and how it impacts our client's performance, we are treated as something more than a vendor.
Joe: Do you have any advice for beginning relationship or account managers?
Anthony: Create value before claiming it. Understand that trust takes time to build, and you have to walk the walk before that trust will be developed as much as it can be. Have a presence. Have a presence. Have a presence. Never hide from problems or challenges, even if it makes you uncomfortable.
Thanks, Anthony! Business Relationships Members, do you have any questions for Anthony? Leave a comment if you do!
Anthony Iannarino is the President and Chief Sales Officer for SOLUTIONS Staffing, a professional sales coach, and a consultant for a firm he started, B2B Sales Coach and Consultancy.
Mr. Iannarino is also Adjunct Faculty at Capital University, where he teaches Persuasive Marketing, Social Media Marketing, and Personal Selling in the School of Business.
Anthony Iannarino is President and Chief Sales Officer for SOLUTIONS Staffing. He is a consultant with B2B Sales Coach and Consultancy, and teaches at Capital University.
Joe Sperry sat down with Anthony Iannarino last week to discuss how his handling of business relationships contributes to his success.
Joe: How has your approach to relationships in business contributed to your personal or your company's success?
Anthony: My personal approach to relationships in business is based upon the idea that creating value together requires a relationship based on trust.
Mutual trust allows us to share ideas and information that might not otherwise be shared to explore potential ideas that allow us to exploit opportunities together, to solve problems, and to share business metrics that help both our companies do better work together than we would otherwise.
For example, 30 days after we start a large staffing project for a call center, we will share our turnover data. Initially some of our clients don't want to share their internal hiring data, but eventually they see it's the best way to discover how we improve our results together. Sometimes we have lower turnover numbers, and we share our on-boarding process with the client to help them improve their own results.
It's not always easy to build this trust, and sometimes there are individuals within some companies who cling to the idea that vendors are disposable. But once they have a successful business relationship, they understand the great value that a trusted business partner can help create.
Joe: How has proactive relationship management impacted both your organization's top-line and bottom-line performance?
Anthony: We schedule quarterly business review meetings with our clients. In addition to being a differentiator, this proactive approach has allowed us to improve our top and bottom line by defining the relationship as something more than a "vendor" could offer. In many cases, this approach by itself has helped a number of clients to move to us exclusively. This, in my opinion, is the response to "act like a vendor, I'll treat you like a vendor." Because we take a serious interest in our performance and how it impacts our client's performance, we are treated as something more than a vendor.
Joe: Do you have any advice for beginning relationship or account managers?
Anthony: Create value before claiming it. Understand that trust takes time to build, and you have to walk the walk before that trust will be developed as much as it can be. Have a presence. Have a presence. Have a presence. Never hide from problems or challenges, even if it makes you uncomfortable.
Thanks, Anthony! Business Relationships Members, do you have any questions for Anthony? Leave a comment if you do!
Anthony Iannarino is the President and Chief Sales Officer for SOLUTIONS Staffing, a professional sales coach, and a consultant for a firm he started, B2B Sales Coach and Consultancy.
Mr. Iannarino is also Adjunct Faculty at Capital University, where he teaches Persuasive Marketing, Social Media Marketing, and Personal Selling in the School of Business.
Celebrations at about the time of the winter solstice have been a staple of many cultures across the millenia. North Americans' and Europeans' versions have powwerful religious roots, however much they may have morphed into secular adventures in retailing. The movement of goods stresses supply chains and relationships, and, as we ride the crest of this year's tsunami, business publications are making much of the struggles (including DC Velocity's perspective on toy sales, Toys: A Supply Chain Christmas Story, available at www.dcvelocity.com).
While we think of this annual surge of merchandise as a retail phenomenon, affecting B2C supply chains, there are many upstream B2B relationships that feel the pain of capacity, resources, and capability shortfalls. Suppliers take the hit a little earlier in the season, but their pain is real. Other supply chain partners caught in the riptide include carriers (in all modes), and those third parties providing warehousing, distribution, and fulfillment services to meet consumer demand.
Failure would not seem to be an option, but failures do occur. In toys, in apparel, in electronics, in confections - the list goes on.
Next comes the peak in returns, which inexorably follows the outbound peak, and which may involve even more third-party logistics service providers (LSPs).
This would not seem to be the time to be randomly selecting supply chain partners, and certainly not from the shallow end of the gene pool. It would seem to be the time when carefully built and nurtured business relationships with capable and committed partners pays off with exceptional execution, flawless recovery from challenges, the vision and stamina to get through the toughest times, and the reserves to really rev up performance after the storm has passed.
Have you been burned trying to get by with arm's-length performance in arm's-length relationships? Has the heat been turned up during seasonal peaks? Is this the time to re-think how you prepare to collaborate for a better peak next season?
A few weeks ago, I read a disturbing article in a respected business publication. It boldly stated that tough economic times demand pulling out all stops in Customer Service, even at the expense of personal and family commitments. The implication was that extra effort applied to all customers and prospects would create competitive differentiation. Hey, I've got news. I know a guy who sells insurance of all types, as well as investment instruments. I guarantee he spends more time, effort, and creativity on customers like Alex (A-Rod) Rodriguez and Dwayne (The Rock) Johnson that he does on some weasel out shopping to save ten dollars on his auto policy premium. This translates, I think, into lessons for B2B business relationships. And may raise some questions. For example, why isn't exemplary customer service (albeit stratified and customized to the situation) a minimum requirement in any economic environment? Or, how much will a client or customer respect and value someone who can't keep work and life priorities straight? And, do you really want a relationship with a customer who doesn't respect and value your total person? Beyond that, at the individual level, going beyond the "extra mile" (to what, a mile and a half?) for every customer is a shortcut to burn-out and breakdown. It is at the organizational level, too, and the breakdowns can be costly, even catastrophic. What do you think? Is working harder, not smarter, the answer? (My bias may be showing.) Is redefining customer categories and custom-crafting appropriate relationships a better way, at both individual and organizational levels? Is more effort on the low-priority prospects robbing you of time and energy for valuable collaboration with high-potential customers?
I am amazed by the number of people who act as if they believe this….the fake smiles….the insincere comments….the lack of integrity. Yet, some seem to believe that this is the way to build relationships. Obviously, there are several problems with this approach.
First, they confuse personal relationships with business relationships. While having good personal relationships can be a very important part of a quality b2b relationship, it is only one part.
Second, they seem to think that people can’t see through them. In my experience, most people cannot be fooled for very long.
Good relationships are built on trust and reciprocity. If either party is insincere, it won’t be long before that insincerity will interfere with, if not destroy, the relationship.
My advice is to be yourself, be direct and be honest. If what you say doesn’t match what you do, you will lose their trust and undermine the entire relationship.