Nine Steps to Better Partnerships

Partnerships promote "win-win" business relationships. Here are nine steps that help achieve that:

1. Define common objectives. As in all team activities, each participant should understand common, clearly defined objectives. Partners should know their responsibilities and the other partner's expectations.
   
   
2. Form an ongoing relationship. A solid relationship is refined over time. Partners should strive to improve the quality of the partnership, not rest on past successes. Over time, closeness develops that allows the manufacturer and distributor to maximize operating efficiencies. Both parties should continually review and follow up with an eye toward long-term growth and profits.
   
   
3. Commit to resources. Both parties must make commitments of employees' time, skills and finances. These commitments can't be lopsided. The "gives and gets" must benefit both parties equally.
   
   
4. Define requirements. Both parties should define and agree upon what's required from each partner. They should consider what exactly will be required in return for each benefit. Agreements to these requirements do little good without a clearly spelled-out performance review process. The agreements also should detail communication channels and procedures.
   
   
5. Commit to sharing complete information. Misinformation, incomplete information, exaggerated claims and false promises are all breaches of faith. In a true partnership, each partner is committed to providing the other with complete information on plans, progress and problems. Critical to the partnering concept is the teamwork needed to develop new product concepts, marketing campaigns and employee training programs.
   
   
6. Prepare for shared risks. Both the manufacturer and distributor must have a clear understanding that risk-taking is present, and each must be willing to support the other for mutual benefits. At the beginning, parties should agree on procedures for handling exceptions and problems. They should discuss financial risks and how to share those risks.
   
   
7. Share profits. If the partners share the relationship's risks, they also should share the profits. Partnerships are established for mutual profits. Problems arise when the process for obtaining growth and profits hasn't been defined, and measurement tools haven't been installed to monitor each party's performance. Partners should share all cost savings and cost avoidance that accrue from implementing the agreement.
   
   
8. Keep abreast of technology. One of the greatest benefits a distributor can bring to the manufacturer is information. The manufacturer must be able to rely on the distributor for feedback on end users' changing needs. The distributor must also be prepared to keep abreast of technological changes that affect the office environment, and work with the manufacturer on modifying existing products or creating new products. Also, the distributor must be part of the manufacturer's creative team. A joint effort ensures that the product meets the end user's needs and its quality meets or exceeds expectations. The exchange of technological information also can enhance the training process for the distributor and manufacturer. A printer who has installed new equipment can offer the distributor's employees tips on improving products by using the new technology. Many product ideas can flow from this type of exchange.
   
   
9. Don't compete. Partners can't form a solid relationship if they work too closely with each other's competitors or if they compete directly. A distributor needs several partners because one trade manufacturer can't produce all of the products the distributor requires. Similarly, the manufacturer may partner with many distributors. Partners should not compete with each other, and if a conflict does surface, they should speak up before either side gets hurt. Manufacturers also should examine carefully how many products can be sold by specific distributors and from specific geographic areas. Manufacturers may have many distributor partners to sufficiently cover national markets for products, but it's not possible to have partners who are competitors for the same customers in the same geographic area. The commitment to not compete is one of the most critical reasons for utilizing performance measurements. If a distributor isn't providing the volume that was agreed upon or if the product mix differs from the original intent of the agreement, then the partners must deal with the problems and repair them for the relationship to continue.