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Friday
27Mar2009

people do business with people

Ultimately people do business with other people - not with abstract entities. The people that represent Corporate entities determine how those brands are received. While much of the mechanics of the engagement process can and should be automated, the decision to do business will always include a large element of judgement about how well the relationship will work. For strategic services, how reliable the other party will be, or how difficult they will be are critical. Even where contracts aim to pass risk to the other side, the success of the business relationship will ultimately come down to the individuals who execute it - their capability, their passion and their commitment to the outcome.  This is one reason, perhaps counter-intuitively, that larger vendors are suffering in the current economic climate.

Peter Bregman of Harvard Business Review puts it down to trust:

Small companies with low overhead, reliable owners, a small number of committed employees, personal client relationships, and sustainable business models that drive a reasonable profit are the great opportunity of our time.

Small is the new big. Sustainable is the new growth. Trust is the new competitive advantage

 

Reader Comments (4)

I couldn't agree more. Im seeing increased evidence of this as as we move further into the recession.

April 3, 2009 | Unregistered CommenterGemma Went

Thanks Gemma - the recession is introducing some new dynamics: pressures and priorities that weren't apparent before. Maybe it just filters for the most serious operators.

April 6, 2009 | Registered CommenterTony

Preaching to the converted Tony. For 20 years we have quietly smiled to ourselves and said the same thing!

April 23, 2009 | Unregistered CommenterRick Shera

Thanks Rick - I am sure you have often seen people forget this in your line. Maybe the outcome matched the lack of trust or maybe it was just unnecessary negative energy. Like many things its a balance that works best.

April 23, 2009 | Registered CommenterTony
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