Trust me – I'm a Partner Manager

There is an interesting book I would recommend that you read: "Why do people hate America?" You may think you know the answer, but of course the issue is complex, and the authors examine the question from many different angles. However, in their summary they conclude that a major cause of the undercurrent of ill-feeling towards the US is that people no longer trust the country's administration.

Trust is a precious commodity in all walks of life. It is something that takes years to establish and days or hours to lose. Between businesses, particularly those that are working in some sort of partnership, it can mean the difference between a successful relationship and one that fails to meet its objectives.

So where does this trust arise from?

Over a period of time it can grow through the achievement of mutually advantageous goals. If these are clearly established at the start of the relationship, measurements agreed for the monitoring of progress, and senior management in both organisations kept regularly informed of successes, then trust will develop. Any initially cynical or dissident voices will be quelled. In both organisations, the 'partner' will be seen as a good company to do business with – one that can be relied on, that won't let you down, that will promote your cause in good times and help you out when difficulties arise.

But there is another, perhaps more important source of trust – that which develops between individuals.

In March 2003 I wrote about: What makes a good Partner Manager? Amongst a long list of attributes, the person acting in the role of main contact point between an organisation and its business partner should exhibit:

"A high level of professionalism, to earn the trust of senior individuals within one's own and the partner's organisation, which in turn will enable major issues to be attended to and resolved."

Now, this is hard enough, but it is actually a necessary but not sufficient requirement that companies put people in these key interface roles who have a high level of integrity and a sense of duty to both organisations. What is also required is that the companies themselves exhibit these characteristics.

To achieve this over a period of time is very difficult, particularly when senior personnel change roles or leave the company, or when fresh talent is brought in from outside. The history of business alliances and partnerships is well-stocked with examples of seemingly successful and long-lasting relationships brought crashing down by the 'gung ho', short-term actions of a new chief executive, or an ill-advised new strategy to get closer to the customer and 'disintermediate' the sales channels. Suddenly the company finds that others are no longer queueing up to partner with it. There is no longer a steady stream of hopeful enterprises knocking on the door and showing their wares. What has happened is similar to what the White House is now experiencing: people no longer trust the company's administration.

So no matter what the Partner Manager now says, no matter how admired he or she may be as a professional individual, his or her words will no longer be believed. The Partner Manager's ability to deliver has been seriously, perhaps irrevocably, compromised.

So what can be done to avoid this happening?

Well, traditionally companies have relied on the 'contract' to ensure that both sides keep to their side of their bargain. It is a legally enforceable document that attempts to capture, unambiguously, the nature of the relationship:

• larger companies like it because they know, if they need to, they can take their partners to court
• smaller companies like it because they believe it gives them some security that their larger, more powerful partner won't simply renege on the agreement on a whim
• partner managers like it because they believe that their senior management will think twice before doing something which breaks a legal agreement
• commercial and legal managers like it because – well, because it is what they do and the way they define any business relationship with a third party

Another useful insight comes from a study by Narakesari Narayandas of Harvard Business School. Besides being the only empirical study that has demonstrated that long-term relationships bring business success, the study also found that:

"In any relationship, the dependence that each side has defines the initial balance of power in the relationship .... The interesting thing ... is that trust and commitment form at two different levels. Trust forms between people, between individuals. But commitment forms between firms."

Narayandas says that supplier–customer arrangements that develop over time from being purely transactional to relationship-oriented are beneficial to both supplier and customer, and this comes about through a growing level of commitment to the relationship between the two firms.

So this is great news. Not only has what Partner Managers strive to do been proved to be beneficial, but also the worrying 'trust' factor is convertible into one of 'commitment', which may be less prone to being undermined by the whimsy of senior management.

So now the question shifts to; OK, I am a trusted Partner Manager. How do I move my organisation and my partner's organisation to a level of mutual understanding and 'trust', so that both companies become committed to the relationship?

Well, let's look again at the three important things you can do to help generate trust between companies:

• establish clear, mutually agreed goals at the start of the relationship
• put in place measuring mechanisms to monitor progress towards the achievement of goals
• regularly inform senior management in both companies about successes, such as the winning of new business or the achievement of key milestones

These are, of course, all powerful ways to help build commitment. If the partnership is successful and can be shown to be successful, then commitment from the partners will follow.

Partnering Points on building commitment

• With so many people liking the 'contract' as a mechanism for establishing and maintaining commitment, it would be easy to rely on it alone. This is a mistake. The contract should capture and record what has already been agreed, not be the driving force that shapes a relationship.
• As a Partner Manager it is not only your job to deliver your company's commitment to the partnership, but also to work with your opposite number in the partner's organisation to help him/her deliver their company's commitment.
• You may have the personal credibility and links to senior members in your organisation to be able to deliver your company's commitment today. But you need to think about the future. What procedures, operational mechanisms and links to established systems can you put in place that will help to ensure continued commitment in years to come?
• Be prepared for some things to go wrong. Have agreed procedures in place to escalate issues and achieve resolution quickly, before there is chance for doubt or worry to set in.

• Don't do anything that loses the trust of either your partner or your own organisation. Once lost, it will take years to build up again.

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