For instance one of my frustrations on my previous job was the fact that we were a small fish playing in a very big pond, where the bigger fish had large teeth and weren't afraid to use them. It always felt that we were being used and discarded. We were often pressured to do things that were not in our best interests but were to the distinct advantage of the larger companies that we dealt with. As a small company, hungry for business we were always more then happy to take the short end of the stick, even though we know darn well that it was going to come back to haunt us. We were always told that we had to do this for the sake of the "partnership".
Here is the definition of partnership:
A partnership is an arrangement where entities and/or individuals agree to cooperate to advance their interests. In the most frequent instance, a partnership is formed between one or more businesses in which partners (owners) co-labor to achieve and share profits or losses.
The problem with the "partnerships" in my former life, is that they were largely one sided or at best very lopsided. For instance a giant wireless carrier and a little content provider were considered a "partnership". However, the mechanics of this partnership were almost always in favor of the large carriers. In other words, these "partnerships" were unidirectional.
Here is the definition of partnership:
A partnership is an arrangement where entities and/or individuals agree to cooperate to advance their interests. In the most frequent instance, a partnership is formed between one or more businesses in which partners (owners) co-labor to achieve and share profits or losses.
-Wikipedia
The problem with the "partnerships" in my former life, is that they were largely one sided or at best very lopsided. For instance a giant wireless carrier and a little content provider were considered a "partnership". However, the mechanics of this partnership were almost always in favor of the large carriers. In other words, these "partnerships" were unidirectional.
As I have begun working with various distribution "partners" and printing "partners" I have been struck by the two-way nature of these business dealings. There is a mutual respect and understanding of what each organization brings to the table and a strong desire between both parties to bolster the business of the other. This is how "partnerships" should work. There is a strong advantage to fostering these types of relationships. As my past boss was fond of saying, "A rising tide lifts all ships". If these relationships are maintained then all companies in the supply chain stand to benefit or if necessary support each other, during a crisis.
I think that we in business spend too much time fostering unequal "partnerships" but not enough time creating meaningful, equitable, business "relationships". If more relationships are created between companies, then maybe just maybe the abject greed that some large companies have displayed in recent years, would disappear. I for one am going to make it a point with this new venture to not form partnerships but build relationships!
See this all the time Curtis, very true. Everyone will say during internal meetings that this customer is too "demanding" and because of all of their one-off requirements we're hardly profitable on the deal, but nobody will every walk away from it. It's the "white whale" mentality...have to get the big kill no matter what the cost (most often human capital!).
ReplyDeleteMark you are absolutely correct. There is almost always a human cost to these lopsided deals. I would argue that only in very rare circumstances should a company (big or small) settle for a deal that doesn't make sound fiscal sense for both entities. The ramifications can haunt an organization for years, a la Ahab.
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