Article 60–Business relationships - SCCI...........Page 4 of 4

So how does one determine which G & H Partnership Type fits your strategic alliance? Although each one is defined by an extensive set of metrics, it is possible to get an approximate answer by considering a particular partnership in the light of the following three factors:

• Reference-ability. Our partner would provide us with a positive and flattering reference to a key customer or buyer.

• Effectiveness. In the last six months we have increased the level of satisfaction of our customers as a direct consequence of this partnership.

• Value. We have seen a real cost advantage/margin gain as a result of working with this partner OR we represent a significant share of this partner’s business.

Next plot your answer using a subjective High, Medium, Medium/Low or Low assessment into the following matrix:

Having ‘typed’ your relationship, what next? Of course this will depend on which one you have identified. However, in general terms it is vital to share your findings with your partner – even better if you have carried out the exploration exercise together. You must then review your strategic objectives and ensure that you have a common understanding of how the alliance fits in. This may require some realignments both jointly and individually. Next follows a tactical review. Carefully identify the sources of friction that undermine the effectiveness of the partnership - negative spiral behaviours. Often fixing minor operational issues will go a long way to restoring confidence. Put in-place projects to address more fundamental problems; the overall aim is to improve effectiveness by cutting costs and inefficiencies. The alliance is doubtless missing opportunities to capitalise on its strengths – resulting from the positive spiral behaviours. Key to achieving these benefits is establishing good relationship management practices such as joint regular performance monitoring, problem-solving and planning activities. Providing a focus for the joint enterprise will ensure that continuous improvement replaces fire-fighting and stagnation.

In their book, “Strategic Alliances and Marketing Partnerships: Gaining Competitive Advantage through Collaboration and Partnering” (Kogan Page, London), Gibbs & Humphries take the reader step by step through the process of evaluating their important business relationships and locating them within the G & H Partnership Types. This takes place by completing simple worksheets at the end of each chapter so that by the time you get to the end you will not only know what Partnership Types you have to deal with but you will also have been given the detailed perspective needed to manage more successfully and achieve your competitive objectives.

Isobel Briggs Myers said: ‘Whatever the circumstances of your life, the understanding of type can make your perceptions clearer, your judgements sounder and your life closer to your heart’s desire’.

Gibbs and Humphries paraphrase this: ‘Whatever the circumstances of your business partnership, the understanding of type can make your assessments clearer, your management sounder and your actions better aligned to your objectives’.

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