Building Your Business Means Building Relationships

Building relationships is hard. They are fluid and can at times be volatile.

But when you attain a good relationship – with a client, a supplier, or employee -- it’s a good idea to hang on to it like a life preserver.

Like any relationship, a business relationship starts with trust. If your customers see you as a trusted partner, rather than simply another in a long list of suppliers, you already are on your way to having a long-term, profitable partnership.

Many practices deal with relationships in the business world. The most common are customer relationship management (CRM), supplier relationship management (SRM), partner relationship management (PRM), and business relationship management (BRM). They have at this point become almost cross-pollinated; that is, they are blended together until it’s difficult to tell where one ends and the others begin.

They are important, though, and each has its own goal.

CRM typically deals with external customers, as its name implies, while SRM deals solely with suppliers. PRM and BRM are bigger picture in nature, taking into consideration all parties in a relationship. They also are the most misunderstood.

Generally speaking, the days of three-hour business lunches are over, replaced by emails, calls made from the car, and even Skype. This can make it difficult to form a relationship initially and keep it going long term.

The role of the business relationship manager, whether it’s formal or informal, is therefore paramount.

This type of manager needs to understand and resolve the needs of the customer (lowest cost/highest quality) while simultaneously taking care of the needs of the business (most profit/least time) and its workers (safety and happiness). In addition, this work must be done while adhering to corporate policies and maintaining the business’s brand.

Is this task difficult? Yes, but it’s not herculean.

Working with all of the players in the complex manufacturing industry can be daunting. Material suppliers and testing labs, equipment and tooling suppliers, end customers, regulators, unions, and industry associations all create a virtual spider web of stakeholders in your operation. And this list doesn’t include the inside and outside staff you collaborate with every day inside your operation.

Building strong, mutually beneficial relationships with all of these players will only strengthen a business, especially during lean times and stressful negotiations, allowing you to get back to that three-hour lunch.