CSCMP's game-changing CEO Rick Blasgen really nailed it in his latest Direct Connection segment in the Q2 issue of Supply Chain Quarterly (www.supplychainquarterly.com). The general point emphasized the value of face-to-face human-level communications in an age of instantaneous electronic communication via numerous media.
Even the Millennial Generation, btw, recognizes this value, despite its fondness for electronic access to all manner of information (and entertainment). My deep suspicion is that way too many people of all ages like to hide behind the impersonal facade of email, texting, tweeting, twittering, flittering - anything that buffers them from interactive personal contact. But, that reflects a personality disorder rather than a generational "preference."
Rick went on to promote the idea that communications leads to collaboration, which can be transported from individual application to organizational relationships. I take heart - when our profession's leaders get the picture this clearly, there's hope that the profession itself will follow.
Things get tricky at this point. Organizational collaboration can't really be - as in the George Gershwin song from Porgy and Bess - "a sometime thing," done when it's convenient for one supply chain partner or another. It needs to be part of day-to-day, and everyday, transaction execution within business relationships.
Now, the hard part. Collaboration doesn't just happen; relationships don't blossom just because they're planted and watered occasionally. All this is part of conscious investment of time and resources in creating the right kind of relationships with the right kind of partners, and all with a business purpose.
The investment, consuming as it may be, is where the big payoff in supply chain management is, though. It transcends momentary gains and losses when designed to deliver sustainable end-to-end marketplace advantage. And, the wunderkind at the end of the table who's texting while you're talking is part of that set of organized relationships.
Each week, I make an effort to read the Sunday New York Times' Corner Office interview. Last Sunday the interview was with Dan Rosensweig, CEO of Chegg. The title was compelling: "Always Thank Your Your Star Players." That's great advice. Everyone likes recognition for their efforts.
The most interesting piece of the interview, in my opinion, is the way Rosensweig begins executive staff meetings. He notes that everyone is very wired these days - technology is portable so it's particularly hard to tear ourselves away from email, text messages and other distractions.
In an effort to be "be present," he asks each executive at the meeting to share two things on their minds, one personal and one professional. That eases the transition into the meeting, and helps with focus.
Most importantly, in my opinion, is that it puts the relationship before the task - which is a key component to a strong relationships in business.
Business relationships are built and based on many skills we all use daily in our personal lives and our professional lives: communication, trust, respect, strategy. The list goes on.
How many of you extend the same principles that make you successful at work in your home life? Real Simple Magazine guest author Patrick Lencioni employed a few of the strategies that contributed to his success in the office at home and here are the top ten strategies he recommends.
All of these sound good to remember both in one's personal life and at work. I like the application to life outside the office, and it is a reminder that strong relationships--business and personal-- make for successful people who are successful at work.
Source: Real Simple Magazine "10 Business Strategies to Organize Your Family Life," by Patrick Lencioni, accessed May 27, 2010
The idea of having access to a shared master schedule that all employees to view and edit seems like a great idea.
With a shared master schedule it is easy to identify when someone is on a business trip or took an afternoon off, and it can help tremendously with communication in general. Many offices have some form of master schedule in place already. In many cases this schedule has gone digital.
This is one of those wonderful ideas in theory-- and in practice, so long as it is not abused. I heard about a large company that uses a scheduling program that allows high-level employees to book meetings with their employees as long as the time slot is available. This seems fair, and like a smart system.
Some executives are trying to enforce a software change that would allow them to reschedule or cancel their employees' meetings so they can schedule meetings in the once-occupied time slots. It is my personal opinion that canceling someone else's meeting is crossing the line into abuse of the system, but I understand others-- like busy executives-- might think otherwise.
What do you think?
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.
Cue the music and wait for Frankie Lymon. Why do birds sing so gay? And lovers await the break of day? And bloggers carry on that way? What does motivate bloggers, anyway? Fade music.
It's painfully obvious in wandering about the web that blogging is cathartic for some, venting and getting even with the forces of evil, or high school nemeses, or arbiters of fashion - whatever. For others, blogging is a never-ending ego trip, a ride on the fantasy railroad of self-absorbtion. Some do, in fact, strive to objectively inform, about an incredible range of subjects.
Still others, though, blog with the intention of provoking people to think, or to think in different ways, about events and conditions that bear on their daily lives - either personal or professional. If our occasional poking at the anthill with a sharp stick generates a little dialogue, whether in dispute or in agreement, so much the better.
For me, blogging has been a way of sharing how the things I've serendipitously stumbled across relate to the promise and power of business relationships, especially those in the world of supply chain management.
The good news is that there's more going on than I can possibly keep up with and comment on. The bad news is that I'm going to keep trying.
Ron Maciejowski is the Vice President of Sales for Worthington Industries. He sits on the board of all Worthington Industrial Joint Ventures and Recreation Unlimited.
Kathy Hoyt, a senior consultant with S4 Consulting, sat down with Ron recently. The interview is transcribed below.
_______________________________________________________
Kathy Hoyt: How has your approach to handling business relationships evolved throughout your professional career?
Ron Maciejowski: In the early days (1970's) there was more of the attitude that there was enough in a sale for everyone to be profitable. The pie was always growing and all parties could profit (our company, our supplier, our customer).
Today , many people think the pie is a set size which means you have to take the profitability out of someone else's pocket. To some extent that is true if we don't get back to growing our economy in the right way and making the pie bigger. This has put much stress on the customer/supplier relationship.
Kathy: Who helped you develop business relationship skills and how?
Ron: Mentors, the guys who brought me into the business. They showed me here's how we do it. You have to build the relationship to get close to the customer. You do that by:
Kathy: How has your attitude and/or skills contributed to personal or company's success?
Ron: I learned by example. If I made a mistake, I wasn't called on it openly in public. I learned to do the same things with my people. People are much more productive if not publicly reprimanded.
I also learned to listen to "the other side" of what was being said - try to understand both sides before jumping in.
Kathy: Can you recall a time when someone handled a relationship in such a way that it saved the sale?
Ron: Yes, there's been times when we walked out better than when we walked in. When there was a problem with a customer and it was our fault we would go in, accept responsibility, offer no excuses and get the problem fixed as soon as possible.
Other opportunities can evolve if you just admit it and fix it because if you can't fix it in a timely manner it will kill the relationship. As part of supply chain, we don't have total control over a situation but the main thing is don't make excuses - just fix it.
Kathy: Can you recall a time when the absence of a relationship has lost a sale or a customer?
Ron: We had a customer recently who didn't feel we thought he was important. A quote got to this customer which was completely inaccurate - way too high.
He assumed we didn't care about his business and we were just sending a quote to get it off our desk. We had been doing about 40% to 100% of his business and he pulled it all because we didn't appear to care enough about him. It certainly was not the case (many internal discussions about what went wrong) because it in fact was very important business to us.
We are working very hard to recapture our customers trust and confidence.
Kathy: What does Worthington Industries do make relationship management a core competency?
Ron: Everyone does it differently but our philosophy of treat the customer they way you want to be treated has always applied.
The philosophy is presented during orientation and reinforced. If someone doesn't buy into the philosophy, they usually don't last very long around here.
Kathy: How do you measure to see if business relationship management is working?
Ron: Amount of business from that customer, they tell us about opportunities for new business and if they come to us for solutions to help their business we know our relationship is solid.
Kathy: What advice do you have to give to people who want to develop skills in business relationship?
Ron: Listen to what the customer is saying. Everyone wants something from you. You just have to learn what the gap is (the difference between what they have and what they want) and then figure out what I can do to fill the gap.
Kathy: What one piece of advice would you give the people who are managing customer relationships?
Ron: Put yourself in the customer's shoes and treat him the way you would want to be treated.
Give the customer timely information, correct information and do what you say you are going to do.
Kathy: How do you think the economy has affected business relationships?
Ron: Everyone is fearful right now about their companies staying in business and their keeping a job.
People are more stressed and just want more time at home. The relationships today are on a more professional level than in the past. However, it is a mistake to assume that people don't buy on personal relationships.
That gets back to building trust, gaining confidence by doing what you say you will do and making the customer look good by providing excellent service and providing a high level of perceived value.
_______________________________________________________
Thanks, Ron!
Business Relationships Members, do you have any other questions for Ron or Kathy?
Ron Maciejowski began his career with Worthington Steel in 1972 and held various sales posiions until going into management in 1981. He has served as Vice President of Sales at Worthington Industries since 2008.
This image turns the metaphor on its head, and the people involved probably aren't really rats, but in tough economic times there is a tendency to avoid risk and stay with less-than-satisfying jobs. When the inevitable rebound arrives, the exodus of talent can blow the doors off companies that have been complacent about retaining "A" performers.
The February issue of CFO magazine (www.cfo.com) nails the issue in its All The Right Moves article, recommending proactive measures during what are usually hunker-down times to help make sure that the arriving recovery does not "inspire a raft of departures."
The challenge and consequences go, I think, deeper than simply hanging on to desirable human assets.
Consider the impacts of sudden and unexpected key employee departures on business-as-usual business relationships. They can range from unsettling to devastating. Who do you turn to when your major customer's go-to person has gone-to somewhere else? Who makes good on supplier problems when your "inside" contact is now on the outside? More than your timbers are likely to be shiverin', matey, when you wake up to that kind of news.
The argument for building business relationships that transcend personal contacts (and schmoozing as a substitute for communication and collaboration) gets to be compelling when the downside of people moving on is fully explored.
What's your take on this, as we see, like crocuses in the spring, early signs of economic recovery?
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.
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?
Visionary author John Naisbitt introduced us to the high tech/high touch concept in his 1982 best-seller, Megatrends. He revisited the concept in 1999's High Tech/High Touch: Technology and Our Search For Meaning (also issued in paperback in 2001). There, he identified our two greatest concers as: 1) the application of technology in our daily lives, and 2) how to escape the ravages of technology in our daily lives (going so far as to characterize technology as a "tin god").
So, experts have been telling us for nearly thirty years about the importance of maintaining high touch in communications and relationships as high tech applications grow in routine application in our business and personal lives. Have we forgotten - are we deliberately ignoring - that vital piece of advice?
Get real for a moment. How silly is it to talk about “friends” on Facebook when they might be people we’ve never met in the flesh, and our only interactions are electronic? How inane is it to follow Twitter tweets from professional golfers, college football players, or D-list celebrities?
I’m more than a little concerned that we are seeing a generation – OK, a few generations – that see no need for human interaction, when they think that all one needs to know is available on the internet at the click of a mouse. The implications are staggering. The commoditization of both business and personal transactions; the confusion of acquiring facts with learning; and the dilution of the quality of personal and organizational relationships. Consider for a moment the differences - both implied and actual - between electronic reverse auctions in the Purchasing world and collaborative, face-to-face, product development with key supply sources in the universe of intimate business relationships.
We live in lively electronic times. G3 technology giving way to G4. Web 2.0 enabling startling levels of communications and interaction. High tech is fabulous. It enables communications, problem-solving, analysis, business interactions, and more, all undreamed of a generation or two ago. But, by itself, it’s only a set of tools, powerful in the right hands and in the right setting, and dangerous if misapplied or in the wrong hands. I’ll go a step farther and posit: High Tech + High Touch = High Hopes; High Tech + Low Touch = Low Hopes; Low Tech + Low Touch = No Hopes. This concept is particularly relevant and critical in organized and managed business relationships, in which ultimate success or failure rests on the quality of interaction, and not the speed of the technology involved.
What do you think? Am I merely getting crotchety in my dotage? Or, do we need to refocus on the role of high touch in our business lives? Let me know where you stand – and why – on this question.
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.
A great way to establish rapport between two people is to share a laugh. But it’s an approach that has its perils.
Among those perils are irony and sarcasm. Those two forms of humor should usually be avoided—particularly in emails or texts, where, without the benefit of hearing your tone or seeing your body language, such statements can be taken literally. When that happens you can end up belittling someone else and yourself in your listener’s eyes.
These days, I tend not to tell jokes, which the person may already have heard, and which I might mess up in the telling. Instead I look for humor—a personal anecdote or an insightful statement made by someone else. I’m all for self-deprecation, where I’m the only person who looks foolish.
You’d like an example or two? My wife and I have custody of our thirteen-year-old grandson. His fourth-grade teacher sent home a worksheet he had to fill out. Among the questions was, “What is your goal for fourth grade?” Alex wrote back, “To endure the year.”
Or here is an insightful statement gathered by Loyal Jones in his Appalachian humor books. It’s a particularly rare piece of political humor than can be enjoyed by anyone on either side of the political spectrum:
“If God wanted to us to have elections, he would have given us candidates.”
People who are not humorous should definitely not try to fake it while establishing a relationship—it’s a quick way to lose credibility. But if you pay attention to the world around you, the world is a very humorous place. Share that real humor and you can cement relationships. JSperry