With more corporate transparency,
careers based on horizontal movement and the tendency of people to use e-mail, cell phones, conference calls,
instant messaging and videoconferencing
to communicate, relationships are getting
lost. Not only does that make it more challenging for vendors to earn business based
on quality solutions rather than price point,
but it may also negatively affect the ultimate product or service delivered to the
buyer. A vendor who knows a buyer’s
needs as the result of a strong working
relationship is in a much better position to
deliver a superior solution.
“The greatest successes of my career can
be attributed to relationships, as a vendor
but also as a client,” says Fred Liesveld,
executive vice president and managing
director of Grubb & Ellis Company’s
Detroit office.
Smart Business talked to Liesveld about
the risks in today’s business climate and
how solid interpersonal relationships can
benefit not just vendors but also buyers.
Why is it crucial for buyers — not just vendors — to seek quality relationships?
My experience suggests that quality, price
and problem-solving ability are based on
depth of knowledge. The better vendors
know their customers, the better they can
be of service.
It’s easy to do business without taking the
opportunities afforded by a good relationship, but having such a relationship puts
both parties in preeminent positions to
provide mutual services, satisfy each
other’s needs and help solve problems.
Having a good working relationship also
changes your mentality. A vendor in a good
working relationship is contributing to
something bigger than itself — and that is
satisfying.
The other side of that coin is when things
get tough. Both professionally and personally, when I was in need of help in the past,
it was always a relationship that came to
the rescue. We have seen many companies
over the years encounter difficult times,
and the ones with good supplier relationships could rely on those suppliers for help,
while those companies that made decisions purely on price point lacked suppliers with
the knowledge and desire to make a difference in the companies’ recovery.
What are some common obstacles to rekindling ‘the lost art’?
Especially over the last 10 years, people
have increasingly used impersonal technology to communicate, and relationship-building between sellers and buyers is
becoming more of a challenge. In a global
economy, the distance between buyer and
supplier might be sizable — 4,000 miles —
and technological advances make it
extremely easy to communicate exclusively through e-mail or telephone. We see sterile RFPs and online bid competitions all
seeking the lowest cost. As a result, a close
relationship between buyers and sellers
has become incredibly challenged.
Some companies work to promote a better purchasing arena by enforcing purchasing strategies that inhibit relationship-building. The intentions are good: to make
purchasing decisions based on pricing
rather than ‘relationships’ and eliminate
any appearance of impropriety.
However, that mentality does not allow
service providers a chance to learn the
inner mechanics of a company and figure
out how an innovation might provide a
shortcut or a cheaper way to get something
done. Nonconference room events are
where a vendor gains information that is
not normally communicated in a request
for proposal. By withholding the opportunity to build a relationship, buyers often
prevent conscientious suppliers from gaining the knowledge it takes to offer bona
fide solutions.
Do situations arise where customers don’t
really want a deeper relationship?
Both parties must be cognizant of the fact
that relationships are built on trust, and
that is a rare commodity in the business
world. You just cannot expect someone to
give you a commodity like that overnight. It
takes time to earn it, and only the person
who doles out that trust can decide when it
gets doled out.
If a buyer employs a purchasing strategy
that causes him or her to avoid deeper relationships, I would call upon the buyer to
examine that policy and decide whether or
not it is getting the best results.
How does re-establishing ‘the lost art’ relate
to the ‘lifetime value’ of customers?
Gone are the days when a person makes
a career decision to join a company in his
or her 20s and retires from that same company at the age of 62.
Now that we experience so many job
changes in a career, getting to know a vendor on a personal level will not only facilitate the supplier providing good service,
but it will also provide potential when you
move on to another company. You already
have someone who understands your
wants and needs and who can hit the
ground running with you at your new company, providing the best results possible
from day one.
FRED LIESVELD is executive vice president and managing director of Grubb & Ellis Company’s Detroit office. Reach him at (248) 357-6590 or [email protected].
