DCI's Publication Date: June 20, 1997

Seven Questions To Successfully Partner With Your Customers

By Ron Karr
President, Karr Associates Inc.

All of us have heard the new buzzword in sales management these days: partnering. But what does partnering really mean? As I travel around the world, I have heard comments including:

• Partnering is a term used by buyers to get the best possible deal with no intentions of really becoming a partner in the process.
• Partnering is when the seller acts proactively for as long as it takes to get some business.
• Partnering is a negotiating ploy with no teeth to it.

As you can see, these comments are not too supportive of the partnering process. The good news is that I have heard about and seen partnering agreements that have benefited both the seller and the buyer. In these cases, the partnering process consisted of three critical elements:

• Both parties must win and perceive the process as being fair. This includes the process of developing a strong level of trust between the parties involved.
• Both parties have the right and responsibility of holding each other accountable.
• Both parties share the vision, agree with the agenda and are willing to provide the necessary resources.

Obviously, partnering is a time-consuming and costly adventure. If partnering is to be taken seriously, it really should be applied with accounts that show the promise of providing you with a sizable amount of business and/or are considered to be strategically important to your success.

How Do I Know If the Situation Is Right for Partnering?

As with any plan, a series of questions needs to be asked and answered. These answers will provide you with the information you will need to determine if you are dealing with a viable partnering situation.

Seven Partnership Questions

1. What are the objectives of the parties involved? You need to clearly define what each side is looking to get out of the relationship. If the vision is not clear, then the efforts will be derailed and eventually the partnership will dissolve.
   
   
2. What’s the starting point? Benchmarking where the customer and you currently are is extremely important, for it is the difference between the destination and the starting point that will dictate the amount of value a partnering relationship offers both parties. Obviously, the bigger the distance, the greater the value.
   
   
3. What’s viable? Obviously, it is sometimes impossible for parties to satisfy each other’s needs completely. A clear understanding must be developed regarding what results are possible and what results are improbable. If the actions of both parties are geared toward achieving improbable results, the chances for failure are greater.
   
   
4. What’s the action plan? Both parties need to clearly define the actions each one will take and put in the appropriate time lines. Each party again has the right and responsibility to hold each other accountable for their actions or lack of actions.
   
   
5. Who’s involved? Key personnel on both sides must be identified as well as what their roles will be, when they will complete their tasks and how they are expected to do so.
   
   
6. What’s our process of measurement? By answering the first five questions, you will have enough information to measure your results and realize when the objectives have been met. To successfully measure your progress, it is critical to break down the periods of measurement into the smallest time frame possible. The sooner you realize that certain actions need to be changed, the more time you will have to make the corrections and achieve your goals. If you wait too long, it may be too late to make the changes necessary to keep the partnership alive.
   
   
7. Once the agreement is reached, what else is needed? Throughout the life of the partnership, questions 1-6 should be consistently asked and answered. You will see that as time goes by, the answers will change. By keeping on top of the changes, you will be able to tweak your actions and ensure that both parties are consistently receiving value from the relationship. The moment the process stops, you have invited your competition to come in and seize your business.

Copyright 1996, Karr Associates Inc. Reprinted with permission.

A speaker and consultant, Ron Karr is a featured presenter at DCI’s Sales Management Conference. Please see our online brochure for complete program and registration information. Mr. Karr can be reached at (800) 423-5277.