Partnering for Profits - ABMA · Responsible for his/her own success. Is an active listener. Understands and cares about what drives partner’s business. Responds well and acts on

Copyright 2011 Copyright 2011 Rigsbee Research Rigsbee Research www.Rigsbee.comwww.Rigsbee.com

Partnering for ProfitsPartnering for Profits

By Ed Rigsbee, CSPBy Ed Rigsbee, CSP1746 1746 CalleCalle Yucca, Suite 200Yucca, Suite 200Thousand Oaks, CA 91360Thousand Oaks, CA 91360

[email protected]@Rigsbee.com


Principle of Allied Effort“That which one man can accomplish single handed, during an entire life-time, is but meagre at best, no matter how well organized that man may be, but that which one man may accomplish through the principle of alliance with other men is practically without limitation.”–Napoleon Hill, The Law of Success Vol. ll, 1937


Partnering DefinedPartnering Defined

““Partnering is the Process of Two or Partnering is the Process of Two or More Entities Coming Together for the More Entities Coming Together for the

Purpose of Developing Synergistic Purpose of Developing Synergistic Solutions to Their Challenges.Solutions to Their Challenges.””

““Partnering is about PeoplePartnering is about People””

Copyright 2004 Ed Rigsbee


While the usage of partnering While the usage of partnering alliance relationships is growing alliance relationships is growing dramatically, the use of formal dramatically, the use of formal alliance tools, practices, and alliance tools, practices, and management is not. management is not. Unfortunately, much value is Unfortunately, much value is being left on the table.being left on the table.


Collaborative NetworkCollaborative Network


What Partnering IsnWhat Partnering Isn’’tt

•• Quick FixQuick Fix•• Instant GratificationInstant Gratification•• FlavorFlavor--ofof--thethe--Month Month

Management StrategyManagement Strategy


Alliance Alchemy (formula); Alliance Alchemy (formula); Turning Relationships Into GoldTurning Relationships Into Gold

1.1. Seven Seven stepssteps for developing for developing successful collaborations.successful collaborations.

2.2. Three behavioral Three behavioral keyskeys for for collaboration successcollaboration success


Seven Steps for Smart Alliance Seven Steps for Smart Alliance Development & ImplementationDevelopment & Implementation

1.1. Monitor Monitor 2.2. EducateEducate3.3. Select Alliance TypeSelect Alliance Type4.4. OrganizeOrganize5.5. AgreementAgreement6.6. ImplementationImplementation7.7. MaintenanceMaintenance

Research & Research & AcquisitionAcquisition

““Find ItFind It””

Corp. Biz DevelopmentCorp. Biz Development

““Get ItGet It””

Alliance ManagementAlliance Management

““Create ValueCreate Value””


BlueBlue OceansOceans Vs. Vs. Red OceansRed Oceans

Cirque du Soleil: Founded in 1984 by a group of Cirque du Soleil: Founded in 1984 by a group of street performers. Cirque has staged dozens of street performers. Cirque has staged dozens of productions seen by some 40 million people in 90 productions seen by some 40 million people in 90 cities around the world. In 20 years, Cirque has cities around the world. In 20 years, Cirque has achieved revenues that Ringling Bros. and Barnum & achieved revenues that Ringling Bros. and Barnum & BaileyBailey——the worldthe world’’s leading circuss leading circus–– took more than a took more than a century to attain.century to attain.

Blue Ocean Strategy: How to Blue Ocean Strategy: How to Create Uncontested Market Create Uncontested Market Space and Make the Competition Space and Make the Competition IrrelevantIrrelevant

Harvard Business School PressHarvard Business School Press


Step #1 Step #1 Monitor; Determine Reasons Monitor; Determine Reasons and Need and Need for Partnering Alliancefor Partnering Alliance

•• Share RiskShare Risk•• CoCo--BrandingBranding•• Cross PromotionCross Promotion•• Affinity ProgramsAffinity Programs•• Fending off CompetitionFending off Competition•• DistributionDistribution•• Buying ParityBuying Parity•• Research & TechnologyResearch & Technology•• Serving National CustomerServing National Customer•• Increase Service CapabilitiesIncrease Service Capabilities

More at: www.Rigsbee.com/dsa1.htmMore at: www.Rigsbee.com/dsa1.htm


Partnering with CompetitorsPartnering with Competitors•• Northrop Grumman & Lockheed MartinNorthrop Grumman & Lockheed Martin

–– Joint Strike FighterJoint Strike Fighter----US Pentagon plans to US Pentagon plans to buy 2,500 over the next 20 years ($276 buy 2,500 over the next 20 years ($276 Billion)Billion)

•• FF--35A for Air Force, replaces F35A for Air Force, replaces F--16 & A16 & A--1010•• FF--35B for Marine Corp, replaces F/A 18 & AV8B35B for Marine Corp, replaces F/A 18 & AV8B•• FF--35C for Navy, replaces F/A35C for Navy, replaces F/A--1818

–– Fuselages built in California by Northrop Fuselages built in California by Northrop GrummanGrumman

–– Final assembly by Lockheed Martin in TexasFinal assembly by Lockheed Martin in Texas–– Costlier materials but $5 Billion savings per Costlier materials but $5 Billion savings per

unitunit


Competitor AllianceCompetitor Alliance Benefit Risk Benefit Risk

•• Strengthening the Strengthening the business & market business & market shareshare

•• Cost savingsCost savings•• Sharing technologySharing technology•• Capital availabilityCapital availability•• Good products & Good products &

services to customerservices to customer•• Becoming more Becoming more

efficient & productiveefficient & productive

•• Exposing your Exposing your technical know howtechnical know how

•• Losing potential Losing potential market sharemarket share

•• Power strugglePower struggle•• Potential loss of Potential loss of

human resourcehuman resource•• Difficulty in managing Difficulty in managing

balancebalance•• Branding conflictsBranding conflicts


Step #2 Educate; Cultural, Operational Step #2 Educate; Cultural, Operational and Strategic Differencesand Strategic Differences

•• Cultural:Cultural: How compatible are the How compatible are the management teams and cultures?management teams and cultures?

•• Strategic:Strategic: How well aligned are the How well aligned are the partnerspartners’’ objectives?objectives?

•• Operational:Operational: How complementary are the How complementary are the business models?business models?

•• Why collaboration is Why collaboration is in the best interestin the best interest of the organization and the persons of the organization and the persons working for the organizationworking for the organization……


Beginning Relationship DevelopmentBeginning Relationship Development•• Gaining internal approvalsGaining internal approvals•• Evaluating the candidate Evaluating the candidate •• Positioning your company Positioning your company •• Developing trust with the corporate cultureDeveloping trust with the corporate culture•• Understanding the partner's corporate Understanding the partner's corporate

cultureculture•• Corporate, individual, and project Corporate, individual, and project

personality diagnosticspersonality diagnostics•• Gathering details on market/salesGathering details on market/sales•• Gathering information on R&D Gathering information on R&D


•• Basic AllianceBasic Alliance (Casually Access Various Arising Opportunities)(Casually Access Various Arising Opportunities)–– New Programs Affecting Several StakeholdersNew Programs Affecting Several Stakeholders

•• Formal Strategic Alliance Formal Strategic Alliance (Partners Retain Identities)(Partners Retain Identities)–– CoCo--Branding Relationship Branding Relationship (Duo Logos & Names)(Duo Logos & Names)– Service Exchange

•• Strategic Sourcing RelationshipStrategic Sourcing Relationship–– Vendors/SuppliersVendors/Suppliers– Service Agreements– Consolidation of Jurisdictions

•• Joint Venture Joint Venture (New Organization & Identity)(New Organization & Identity)– Joint Service Agreement– Public-Private Partnerships

•• Strategic Reseller RelationshipStrategic Reseller Relationship–– Educational Programs, Dealers, Distributors or VARsEducational Programs, Dealers, Distributors or VARs

•• Licensing AgreementsLicensing Agreements–– CertificationCertification

Step #3Step #3 Select Alliance Type/StructureSelect Alliance Type/Structure


Understand Alliance Understand Alliance Buying/Acceptance MotivesBuying/Acceptance Motives

1.1. Profits or GainProfits or Gain2.2. Fear of LossFear of Loss3.3. Comforts and PleasureComforts and Pleasure4.4. Avoidance of PainAvoidance of Pain5.5. Loving and Affection Loving and Affection 6.6. Pride and PrestigePride and Prestige


Step #4 Organize Your Collaboration:Step #4 Organize Your Collaboration: Partner Due DiligencePartner Due Diligence

Alliance, JV, Strategic Sourcing

Agreement

Offering Partner

Accepting Partner

Research: Suppliers,

Stakeholders, Departmental Silos, Internet,

Through SWOT

Alliance Offer

Counter Offer

Research: Suppliers,

Stakeholders, Departmental Silos, Internet,

Through SWOT


Relationship Due DiligenceRelationship Due Diligence•• In the past relationships with this partner, what has been In the past relationships with this partner, what has been

the quality of the working relationship?the quality of the working relationship?–– PositivePositive–– NegativeNegative

•• What is the companyWhat is the company’’s conflict resolution style?s conflict resolution style?–– AvoidAvoid–– Engage ineffectivelyEngage ineffectively–– Engage effectivelyEngage effectively

•• What is the companyWhat is the company’’s decisions decision--making style?making style?–– HierarchicalHierarchical–– ConsensusConsensus--drivendriven

•• What is the companyWhat is the company’’s information sharing style?s information sharing style?–– OpenOpen–– ClosedClosed

•• What is the companyWhat is the company’’s operating style?s operating style?–– ProcessProcess--drivendriven–– Ad hocAd hoc

•• Etc.Etc.


““What Kind of a Partner am I?What Kind of a Partner am I?””Assign each a 1 to 10 rating and total:Assign each a 1 to 10 rating and total:

Wants to win.Wants to win. Responsible for his/her own success.Responsible for his/her own success. Is an active listener.Is an active listener. Understands and cares about what drives partnerUnderstands and cares about what drives partner’’s s

business.business. Responds well and acts on feedback.Responds well and acts on feedback. Flexible, especially when the unexpected occurs.Flexible, especially when the unexpected occurs. Trustworthy and has integrity.Trustworthy and has integrity. Seeks winSeeks win--win situations and solutions.win situations and solutions. Understands that Partnering is a relationship of Understands that Partnering is a relationship of

interdependence.interdependence. Great Chemistry!Great Chemistry! Your TotalYour Total (1 to 100)(1 to 100) www.rigsbee.com/quiz.htmwww.rigsbee.com/quiz.htm


Partnering RoadblocksPartnering Roadblocks•• Partners having Partners having conflicted core valuesconflicted core values. Issues like trust . Issues like trust

and integrity. Corporate culture clashes, employee turf and integrity. Corporate culture clashes, employee turf protection, and resistance of some employees to new protection, and resistance of some employees to new ideas can reek havoc on your alliance efforts. ideas can reek havoc on your alliance efforts.

•• Relinquishing some controlRelinquishing some control with the expectation of with the expectation of greater shared returns can be a difficult waiting game.greater shared returns can be a difficult waiting game.

•• One partner One partner not completely embracing the principles of not completely embracing the principles of partneringpartnering at the top level or even in departments, at the top level or even in departments, divisions or regions while the other does.divisions or regions while the other does.

•• Underestimating how much timeUnderestimating how much time, energy and resources , energy and resources will be necessary to commit to your new alliance.will be necessary to commit to your new alliance.

•• ComplacencyComplacency, is an insidious relationship, is an insidious relationship--killer.killer.•• Difficulty in Difficulty in communicatingcommunicating..•• When When unequal dependenceunequal dependence in a relationship occurs, the in a relationship occurs, the

partner with the least dependence could be less likely to partner with the least dependence could be less likely to compromise and put energy into the relationship.compromise and put energy into the relationship.


Step #5: Reaching the AgreementStep #5: Reaching the Agreement

•• Final decision and evaluation of Final decision and evaluation of strategic partnership objectives:strategic partnership objectives:–– Determining if the partnership meets the Determining if the partnership meets the

objectivesobjectives–– Balancing the human dimension with Balancing the human dimension with

the business issuesthe business issues–– Creating a negotiation and agreement Creating a negotiation and agreement

strategystrategy–– The lawyer's perspective; see ChecklistThe lawyer's perspective; see Checklist


Step #5 Agreement/MOUStep #5 Agreement/MOU

•• Legal issuesLegal issues•• Tax issuesTax issues•• Pricing issuesPricing issues•• Payment structure Payment structure

variationsvariations•• Audit rightsAudit rights•• Information rightsInformation rights•• Confidentiality issuesConfidentiality issues•• Exclusivity variationsExclusivity variations•• Performance Performance

assurancesassurances

•• Right to cure variationsRight to cure variations•• Term of agreementTerm of agreement•• Termination issuesTermination issues•• Condition of default issuesCondition of default issues•• PostPost--termination issuestermination issues•• Assignment issuesAssignment issues•• Warranty & liability issuesWarranty & liability issues•• Ways to hedge Ways to hedge

commitmentscommitments•• Indemnification options & Indemnification options &

issuesissues•• RemediesRemedies


Step #6Step #6 ImplementationImplementation•• Systems (alliance nuts & bolts)Systems (alliance nuts & bolts)

–– Systematic Alliance Relationship LaunchSystematic Alliance Relationship Launch–– Shared & Different ProtocolsShared & Different Protocols–– Joint Governance MeetingsJoint Governance Meetings–– DayDay--toto--Day Decision Culture Consensual or Day Decision Culture Consensual or

Hierarchical?Hierarchical?•• MeasurementsMeasurements

–– Alliance GoalsAlliance Goals–– Alliance Progress: Performance in Information Alliance Progress: Performance in Information

Sharing, New Idea Development, & Speed of Sharing, New Idea Development, & Speed of Decision Making.Decision Making.


Alliance Tool Usage Europe vs. USAAlliance Tool Usage Europe vs. USA

Source: Source: ASAPASAP’’ss Second State of Alliance Management Study 2007Second State of Alliance Management Study 2007

Tools Europe USABest alliance practices 80% 68%

Alliance database 55% 60%Alliance handbook 33% 40%

Alliance management is part of the management development program 29% 36%Alliance metrics 61% 74%

Competency framework for alliance manager exists 41% 41%Cross-alliance evaluation 53% 48%

Culture program 33% 26%External alliance training 32% 47%In-house alliance training 51% 48%

Individual evaluation 82% 81%Intranet 71% 73%

Joint business planning 80% 84%Joint evaluation 75% 74%

Partner portal 60% 68%Partner programs 69% 77%

Standard partner selection approach 67% 67%


Ten Key Corporate CapabilitiesTen Key Corporate Capabilities•• Building & maintaining internal alignmentBuilding & maintaining internal alignment•• Evaluating & considering relationship fit with Evaluating & considering relationship fit with

potential partnerspotential partners•• Building strong working relationships while Building strong working relationships while

negotiating optimal dealsnegotiating optimal deals•• Establishing common ground rules for working Establishing common ground rules for working

togethertogether•• Having dedicated alliance managersHaving dedicated alliance managers•• Having collaboration skills in alliance employeesHaving collaboration skills in alliance employees•• Having a collaborative corporate mindsetHaving a collaborative corporate mindset•• Managing multiple relationships with the same Managing multiple relationships with the same

partnerpartner•• Auditing alliance relationshipsAuditing alliance relationships•• Managing changes that affect alliancesManaging changes that affect alliances

Source: Vantage Partners 2001 & 2006 survey; Managing Alliance Relationships: Ten Key Capabilities


Lilly Lilly (Pharmaceutical)(Pharmaceutical) ThreeThree--Person Alliance Person Alliance Management/Implementation TeamManagement/Implementation Team

•• Alliance Champion Alliance Champion –– Usually a Usually a senior level executivesenior level executive charged with, among other charged with, among other

activities, to facilitate and ensure communication between activities, to facilitate and ensure communication between Lilly and its alliance partnersLilly and its alliance partners

•• Alliance LeaderAlliance Leader–– Technical leader, project manager or senior person with Technical leader, project manager or senior person with

intimate knowledge of alliance area of activity; intimate knowledge of alliance area of activity; responsible responsible for dayfor day--toto--day leadership of the allianceday leadership of the alliance

•• Alliance ManagerAlliance Manager–– Represents the OAM, the executiveRepresents the OAM, the executive’’s primary duty is to s primary duty is to

support the alliance leader and support the alliance leader and act as an advocate for the act as an advocate for the alliancealliance (one person is Alliance Manager for several (one person is Alliance Manager for several alliances) alliances)


Measuring and Evaluating ResultsMeasuring and Evaluating Results•• Selecting options and assigning responsibility Selecting options and assigning responsibility

(alliance group, corporate or business unit, supplier (alliance group, corporate or business unit, supplier team)team)

•• Analyzing opportunity and team formationAnalyzing opportunity and team formation•• Organizational competency centers and team Organizational competency centers and team

formationformation•• Tactical planning and executionTactical planning and execution•• Operating and governing the allianceOperating and governing the alliance•• Stabilization and reviewStabilization and review----issue and conflict issue and conflict

resolution resolution •• Termination IssuesTermination Issues•• Benchmarking survey resultsBenchmarking survey results


•• Unspoken Clash Over Strategic DirectionUnspoken Clash Over Strategic Direction

•• Jointly Define & Promote Behaviors Considered Jointly Define & Promote Behaviors Considered Consistent with a Successful Relationship.Consistent with a Successful Relationship.

•• Do Not Allow the Unique Competencies of Each Partner Do Not Allow the Unique Competencies of Each Partner to Become Sources of Resentment Rather than to Become Sources of Resentment Rather than Success Enablers.Success Enablers.

•• Embrace Different Complementary Strengths, Embrace Different Complementary Strengths, Especially in Areas of: Technical Expertise, Culture, Especially in Areas of: Technical Expertise, Culture, Business Model, & Knowledge of Market Segments.Business Model, & Knowledge of Market Segments.

•• Do Not Allow Formal Governance Structures to Do Not Allow Formal Governance Structures to Discourage Collaborative Behavior.Discourage Collaborative Behavior.

Step #7 MaintenanceStep #7 Maintenance (Early Measurement of Progress and Cooperation)(Early Measurement of Progress and Cooperation)


Relationship Value UpdatesRelationship Value Updates

•• The value IThe value I’’m getting from the m getting from the relationship.relationship.

•• The Value I think you are The Value I think you are receiving.receiving.

•• Improvement StrategiesImprovement Strategies

More at: www.Rigsbee.com/dsa3.htmMore at: www.Rigsbee.com/dsa3.htm


Survey Question Areas: LillySurvey Question Areas: Lilly’’s Voice of the Alliances Voice of the Alliance

Operational Fit: Operational Fit: 1.1. CommunicationCommunication2.2. Decision MakingDecision Making3.3. LeadershipLeadership4.4. Performance Performance

ManagementManagement5.5. RolesRoles6.6. Skills/CompetenceSkills/Competence7.7. Team CoordinationTeam Coordination8.8. Conflict ManagementConflict Management

Cultural Fit:Cultural Fit:9.9. FlexibilityFlexibility10.10. Knowledge Knowledge

ManagementManagement11.11. Organizational Organizational

ValuesValues

Strategic Fit:Strategic Fit:12.12. CommitmentCommitment13.13. StrategyStrategy14.14. Trust/FairnessTrust/Fairness


How HP Perceived Itself How Microsoft Perceived HP

Collaborative partnering mindCollaborative partnering mind--setset——looks for the looks for the greater goodgreater good

A nonA non--player in servicesplayer in services

ReinventingReinventing——trying to get more focused under trying to get more focused under new CEOnew CEO’’s leaderships leadership

Falling behind its competitorsFalling behind its competitors

DisciplinedDisciplined——takes longtakes long--term, mature approach term, mature approach to evaluating market opportunitiesto evaluating market opportunities

Slow, bureaucraticSlow, bureaucratic——a laggarda laggard

WinWin--win partneringwin partnering——actively seeks the other actively seeks the other companycompany’’s winss wins

Unable to execute consistently and predictablyUnable to execute consistently and predictably

FlexibleFlexible——looks for creative dealslooks for creative deals Conflicted sales strategy in the fieldConflicted sales strategy in the field

How Microsoft Perceived Itself How HP Perceived Microsoft

Competitive, fast moving, and entrepreneurialCompetitive, fast moving, and entrepreneurial Excessively competitive and confrontationalExcessively competitive and confrontational

““Our products are changing the world in Our products are changing the world in profoundly positive waysprofoundly positive ways””

Controlling, paranoid, and greedyControlling, paranoid, and greedy

Center of new economyCenter of new economy ““WinWin——dondon’’t caret care”” partnering mindpartnering mind--setset

Focuses on objectives and assumes others do Focuses on objectives and assumes others do the samethe same

Focused only on the dealFocused only on the deal

Misunderstood: The world doesnMisunderstood: The world doesn’’t realize what t realize what positive things the company does for everyonepositive things the company does for everyone

PackagedPackaged--software mentalitysoftware mentality——commoditizescommoditizes everything, even partneringeverything, even partnering

Brings partners into deals, expecting they will Brings partners into deals, expecting they will be grateful and go get the business without be grateful and go get the business without continued handcontinued hand--holdingholding

DoesnDoesn’’t get itt get it——doesndoesn’’t know what it takes to sell t know what it takes to sell professional services to an enterprise customerprofessional services to an enterprise customer

Source: Harvard Business Review, November 2007

Copyright 2011 Copyright 2011 Rigsbee Research Rigsbee Research www.Rigsbee.comwww.Rigsbee.comSource: Harvard Business Review, November 2007

Today, more than 14 million Microsoft Today, more than 14 million Microsoft Exchange Server 2000/2003 user seats are Exchange Server 2000/2003 user seats are

under contract through HP Servicesunder contract through HP Services

Instead of Eliminating Differences, Instead of Eliminating Differences, Leverage to Create Value; HewlettLeverage to Create Value; Hewlett--Packard Packard

& Microsoft Collaborative Effort:& Microsoft Collaborative Effort:

Turning point came when alliance executives began systematically documenting differences between the companies and then held working sessions with team members to discuss

how those differences might benefit the alliance.


Maintaining AllianceMaintaining Alliance•• Educating employees to buy/own the ideaEducating employees to buy/own the idea•• LongLong--term relationshipterm relationship•• Additional alliancesAdditional alliances

–– Regular meetingsRegular meetings–– Multiple alliance trackingMultiple alliance tracking

•• Developing an integration/management plan Developing an integration/management plan •• Using human resources effectively Using human resources effectively •• Establishing lines of communicationEstablishing lines of communication•• Reevaluation of alliance legitimacy and viability Reevaluation of alliance legitimacy and viability •• Realigning expectationsRealigning expectations•• Managing change in the allianceManaging change in the alliance•• Alliance scenario buildingAlliance scenario building•• Alliance structure and governanceAlliance structure and governance


1.1. Getting Things Done vs. Being RightGetting Things Done vs. Being Right2.2. Relationship Bank DepositsRelationship Bank Deposits3.3. Purposeful CommunicationsPurposeful Communications

Three Behavioral Keys for Three Behavioral Keys for Turning Relationships Into GoldTurning Relationships Into Gold


Behavior #1Behavior #13 Keys for3 Keys for

Turning Relationships Into GoldTurning Relationships Into Gold

Getting Things Done vs. Being RightGetting Things Done vs. Being Right



““ItIt’’s more important to be a s more important to be a good partner and get things good partner and get things

done, than to obsess on BEING done, than to obsess on BEING RIGHT!RIGHT!””

––Ed RigsbeeEd Rigsbee

II’’m Rightm Right


BehaviorBehavior #2#2Relationship Bank DepositsRelationship Bank Deposits


3 Keys for3 Keys for



•• EmotionalEmotional•• PhysicalPhysical

––UnrestrictedUnrestricted––ControlledControlled––Strings AttachedStrings Attached

Relationship Bank DepositsRelationship Bank Deposits


Over 100 of EdOver 100 of Ed’’s helpful s helpful articles are available for articles are available for download & Reprint at:download & Reprint at:www.rigsbee.comwww.rigsbee.com/morearticles.htm/morearticles.htm


Perception

““My only reality is My only reality is the conversation I the conversation I have with myself have with myself about you.about you.”” --Ed RigsbeeEd Rigsbee


Suppliers Say About Buyers Suppliers Say About Buyers (BSCAI)(BSCAI)

•• Fear of commitmentFear of commitment•• ““They are not willing to single source but still want our total They are not willing to single source but still want our total

bundle of valuebundle of value--added resources at no additional cost.added resources at no additional cost.””•• Operations level supportOperations level support

•• ““We get commitment from top management but the program We get commitment from top management but the program gets derailed at the operations level.gets derailed at the operations level.””

•• ““Top management is reluctant to mandate changes to Top management is reluctant to mandate changes to operationsoperations……they try to build consensus but it doesnthey try to build consensus but it doesn’’t t happen.happen.””

•• Communication breakdownCommunication breakdown•• ““Everyone is so busy we only communicate when there is a Everyone is so busy we only communicate when there is a

need for fire fightingneed for fire fighting……hence the relationship takes on a hence the relationship takes on a negative tone over time.negative tone over time.””

•• ““We never discuss mutual opportunitiesWe never discuss mutual opportunities……itit’’s always, How do s always, How do we fix what isnwe fix what isn’’t working?t working?””

More at: www.Rigsbee.com/ps1.htm


ABCs of Buy/Sell RelationshipsABCs of Buy/Sell Relationships•• AdversarialAdversarial (Traditional Win(Traditional Win——Lose)Lose)

–– Playing HardballPlaying Hardball–– Commodity Selling/BuyingCommodity Selling/Buying–– Single TransactionsSingle Transactions

•• Barometric (Always Measuring Atmosphere)Barometric (Always Measuring Atmosphere)–– Some Partnering Success, Still Working on TrustSome Partnering Success, Still Working on Trust

•• ComplementaryComplementary (Partnership)(Partnership)–– Circles of Interest OverlapCircles of Interest Overlap–– Work in HarmonyWork in Harmony–– Vendor Managed InventoryVendor Managed Inventory–– Single SourceSingle Source

www.rigsbee.com/ps4.htm


AdversarialAdversarial

(Transactional(Transactional-- Few Deposits)Few Deposits)

ComplementaryComplementary

(Transformational(Transformational-- Many Deposits)Many Deposits)

The Relationship ContinuumThe Relationship Continuum


BehaviorBehavior #3#3Purposeful Communications Purposeful Communications

for Overcoming Conflictfor Overcoming Conflict1.1. Getting Things Done vs. Being RightGetting Things Done vs. Being Right2.2. Relationship Bank DepositsRelationship Bank Deposits3.3. Purposeful CommunicationPurposeful Communication

3 Keys for3 Keys for



Recent Rigsbee Research Survey

• 28% Communication • 20% Follow up/Follow through• 17% Changing the behavior of others• 9% Truth, honesty & responsibility• 8% Training issues• 5% Time compression• 5% Customer issues• 4% Conflict in dealing with personalities• 4% Conflicting goals


Communicating to Deal with Communicating to Deal with the Relationship Challengesthe Relationship Challenges

•• Hidden AgendasHidden Agendas•• TrustTrust•• Unrealistic ExpectationsUnrealistic Expectations•• Poor CommunicationPoor Communication•• Culture ClashesCulture Clashes


People do not change People do not change after marriage! What after marriage! What

you see is what you get.you see is what you get.


Thank YouThank You•• Access all EdAccess all Ed’’s partnering s partnering

articles at: articles at: www.rigsbee.com/morearticles.htmwww.rigsbee.com/morearticles.htm

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Partnering for Profits - ABMA · Responsible for his/her own success. Is an active listener. Understands and cares about what drives partner’s business. Responds well and acts on