Take A Closer Look At The Role Of Trust In Business Partnerships.
Trust is the cornerstone of successful partnerships. Trust between partners can help you build stronger collaborative relationships and allow you to stay aligned with the big-picture goals of all parties so they can achieve your desired outcomes.
Partners can achieve tremendous success by building trusting relationships in business. This will help them overcome the often adversarial mindset that pervades the industry. It is worth exploring the role of trust, especially if you want to improve your confidence with your partners.
Evaluation of the Components in a Trusting Business Partnership
My research with Gerald Ledlow and Karl Manrodt helped me identify five critical components of a trust-based business partnership. These are the focus, the ability to develop a shared sense of purpose and direction, efficient communication, team orientation, innovation, and performance trust (or meeting promises).
These attributes were considered, and we developed a performance assessment tool for suppliers and buyers to help them assess how they see themselves and their partners. It is easy to identify issues and problems that undermine trust or cause misalignment in the relationship if there are gaps between the partners’ perceptions.
Regardless of your situation, understanding trust gaps can be key to better business relationships. It is not a good idea to try to keep a partnership that is not sustainable in terms of the trust. It will serve everyone’s best interests to reach a mutually agreed upon end of the partnership and to find more aligned partners.
Cultural fit is a more significant factor than you might expect
One thing that stood out in our research was a cultural fit. This can be seen as both businesses and organizations sharing similar views on communication and decision-making in business partnerships.
Cultural fit can be used in the same way as when you hire new employees. It is about finding partners who share your core values. Born Primitive is a veteran-owned clothing brand focusing on first responders and veterans.
Bear Handlon is co-founder and CEO at Born Primitive.
We knew right from the beginning that we wanted our company to support those who serve our country. This principle has influenced everything we do, from how we market our brand to how we support charitable causes. We donated $100,000 of our profits from Veterans Day weekend to support veteran-related charities. Being honest about who we are has helped us connect with like-minded customers and partners. We don’t want people to share our values because it will only work in the short term. We are more determined to maximize our results when working with people who share our values.”
This cultural alignment is crucial for maintaining strong relationships with business partners and ensuring full buy-in from each party. Partners with the same vision, values, and goals are more likely to work together to overcome structural or organizational obstacles to trusting partnerships.
Vested in Partners’ Success
One of the essential trust factors influencing successful business partnerships is when both partners are focused on achieving a win/win outcome. Partners should use a “vested” partnership model where they are both invested in the success of their partner, not their own.
These win-win situations are about creating mutual benefits that add value to both of you. Instead of trying to win the advantage over your partner, you should create a win-win situation where everyone has something to gain. Instead of trying to win concessions from your partner, focus on solving the problem together.
This mindset can lead to truly transformative results. Microsoft makes 95% of its revenue from partner ecosystems. 94% of tech executives tell Harvard Business Review that innovation partnership is crucial for their company’s strategy.
These outcomes can only be achieved when both partners are fully invested in their partner’s ability to achieve their goals. Trust will be built by focusing on building a mutually beneficial partnership.
Trust: The decision to increase trust
Trust can be restored in business relationships that are strained. Strong relationships can also be strengthened by increasing trust. It is not an accident that your business will build trust with its partners.
My research shows that trust is not a fuzzy concept. It can be quantified and improved. You and your partners can prioritize trust among partners as part of your strategic development. This will help you identify key actions that will improve trust and outcomes.