Forming and Maintaining Winning Business Relationships

A major study of Australian business leaders revealed that the most successful companies – big and small – believe that an integral part of their success is their relationships with other businesses.

The research highlighted seven main characteristics for successful business relationships and each is integral to a long-term, mutually beneficial and sustainable relationship.

Alignment of the values and ethics of a business is essential both with the internal behaviour of its employees and externally with its business partners. It is critical that a business enters and maintains relationships with other businesses that demonstrate a commitment to a similar set of values to its own.

Commitment is necessary to build a long-term business relationship as it provides a solid basis for trust between the parties. Successful relationships are built and flourish by an investment in effort.

Communication must be clear, transparent and frequent to ensure that everyone fully understands the other’s position, obligations are met and any issues or problems are raised early. Poor communication was one of the most regularly cited reasons for a breakdown in relationships. It is critical that businesses communicate with each other in a way that is relevant, comprehensive and timely.

Mutual Interests means that business relationships work towards a common goal of achieving a profi table and sustainable outcome. Successful business relationships recognise and support the mutual interests of the parties involved.

Accountability and Responsibility are essential factors in the success of a business relationship. All parties need to agree on their obligations and responsibilities and be accountable to them at all times.

Professional Conduct is vital in all interactions between businesses and should be a prerequisite for any business to business relationship. Many of the behaviours associated with professional conduct are commonsense but can be the difference between a successful relationship and another not getting off the ground.

Pre-Agreed Dispute Resolution procedures ensure that there is rapid and satisfactory resolution of any issues. All business relationships are likely to have a dispute at one time or another. It is essential that all parties agree on resolution procedures at the start of the relationship so that any disputes can be dealt with quickly and cost effectively and enable the relationship to continue with minimum disruption.

Information supplied by the Office of the Victorian Small Business Commissioner, www.sbc.vic.gov.au

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