A checklist for business
relationships
In the course of doing business you may create strategic
relationships with people that can help you. These relationships vary from
associates, to partners to outside counsel and so on.
It is not what we know about these people that counts most, it
is rather what we are willing to learn about them on an on going basis.
When it comes to the people you deal with, you must keep
your observational skills sharp and your mind alert to see any inconsistencies
or incongruent signs between what they think, say, feel and do.
When you are aware of the possible shortcomings in a
business relationship, you can plan ahead and strategize wisely. If they are
good people, but weak in some areas, you could probably find ways to complement
or compensate for each other. But if they are bad at the core, you want to be
ahead of the game so you don’t end up entangled in a bad business relationship
with an incompetent, disloyal or unethical person.
It is always best to set the right expectations and
clarifications of duties and responsibilities in writing from the beginning so
all parties can quickly pass the argument stage and reach agreement so good performance
and results could quickly become the norm:
I created a checklist of items be aware of especially in the
early stages of a business relationship. They are basic human weaknesses that
we must be aware of:
1)
The ego
factor: People want to see themselves as successful, respected, influential
individuals. They want to see others recognize them for their intelligence,
contribution and importance. But some people’s ego is so big, it clouds their
decision making. Others are so afraid to appear like fools that they stay quite
and distant even in crucial situations that require for them to express
themselves.
2)
The jealousy
factor: Are they trying to be like you (stealing your ideas, by passing
you, taking credit, planning to compete?) or are they cooperating with you? Do
they see their role as adding value or want to take from you and succeed alone.
3)
Conflict
of interest: In most business relationships, there could be a conflict
of interest as you deal with others in the same field and line of business.
4)
Their state
of mind: Are they clear at this time and focused with you on what needs
to get done, when and how? Or are they too busy and overwhelmed with their other
projects? You can know that by asking them a few simple questions when you see
them like: “what’s new?” and stop talking. Or: “What are you working on these
days?” and listen carefully not only to what they say but how they feel about
it. If they are excited and happy
you will feel the energy, if they are frustrated and upset you will sense the
emotional charge.
5)
Their financial
condition: You must assess where they are financially as it will affect
the way they will charge you, the way they will deal with you, the way they
will assess their services and it will even affect their moods towards the
results that will ensue. I always say you only truly know someone when your
dealings involve money. Especially losses or default or negative cash flow.
Some people become unreasonable and unrealistic as well as unfair. Others
become enraged. Some people shut down completely and become apathetic. You need
to be prepared to deal with them if these issues come up.
6)
Their history/reputation:
You need to know if they had similar business relationships with others and how
they performed? How long did it last? Did their relationship grow better or has
it gone sour? Did they retaliate or work things out or ignore the matter?
7)
Your
history with them: If you had any history dealing with them, do not
expect them to change much. We often work with people we do not like or do not
trust completely but need them due to their special skills or connections etc.
so we must set some clear rules in writing, supervise them and stay in control,
otherwise the cost will be too much to bear.
8)
The
fudge factor: The gap between what people “say” and what people actually
“do” could be huge. The exaggeration of some people’s claims about what they have
done in the past and can do especially in the beginning of a relationship
versus what they truly deliver on could be far apart. I call that the fudge
factor.
9)
The
flake factor: You must watch out for early signs of incompetence,
ignorance and/or unreliability. I call that the flake factor.
10) Their background: Any legal issues?
Any bankruptcies? Any lawsuits? Complaints? Health issues? Unusual
beliefs? Obsessions? Unfinished work,
pending matters of vital important to them? Something important that
preoccupies the majority of their time? Education? Experience? Past jobs? Family
issues etc. Anything that could help you assess how they came to be who they
are, their emotional reactions to people, money and projects will help you
predict the future outcome of the relationship.
In summary which way
do they handle your relationship?
1)
Magnify your success and enhance it?
2)
Nullify you and invalidate your thoughts,
emotions and actions?
3)
Try to attack, control and dominate you?
You must pay attention to every signal, sign and clue to
predict and protect your business relationships.
Wishing you the best,
Cherif Medawar
Great post. Thank you for sharing this to us, very useful information you've shared. Having a business is more important to know the organization and on how to manage it perfectly for a business success.
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