Getting Together: The Importance of Business RelationshipsWritten by Tania Lye
To succeed in today's collaborative, client-driven, networked economy, companies must take advantage of strength of their business relationships to succeed. The business world of past, in which each company could be managed in isolation, has rapidly changed into one in which decisions made by one business directly impacts others. A new economy is emerging, one built on a complex network of information, interaction and change. This evolving business landscape, shaken by technological innovation, globalization and downsizing, has led us back to most fundamental aspect of business: relationships.Whether they're partners, investors, employees or community as a whole, enhancing daily business relations can unlock many great opportunities for a company, especially in terms of accelerating growth, building value, entering new markets and pooling expertise. It's as simple as saying "Two heads are better than one", and as clichéd as this sounds, it's a strategy applied to business every day- and it works. The strategic alliance is a trend that's here to stay. Many businesses have benefited from successful alliances. They can give companies a major competitive edge, allowing them to provide more for clients and customers than they would have been able to do by themselves. Trying to create what your company lacks is costly, time consuming and usually doomed to failure. Buying through mergers and acquisitions is expensive and complicated. Alliances are cheap and secure way to go: no dilution, no risky leveraging of balance sheet. If partnership doesn't work, disband it. Partnering is becoming popular among some of biggest and most profitable companies in world. A study showed more than 20 percent of revenue generated from top 2,000 U.S. and European companies comes from alliances: HP/Cannon, Intel/Microsoft, Yahoo!/SBC, PepsiCo/Starbucks, Sony/Ericsson and Cisco/IBM are some well-known successful alliances. The most enormously successful partnerships are those built from trust, respect, and mutual understanding. Billionaire investor, Warren Buffett is renowned for his stock market prowess, as well as his strategy of betting on long-term growth of successful companies like American Express and Berkshire Hathaway. Buffett's ingenious ability to understand stock markets made him a cult figure, but it was also his patience that played a big part in his rise to top. His unwavering faith in his companies allowed him to see beyond short-term failures and to triumph in long-term. He is famous for relationships he developed during course of his life. His companionship and investment with Katharine Graham of Washington Post is one of most famous business alliances of all time. He met Graham in 1970s as an investor in The Washington Post Company, her family's newspaper company, where she became first female Fortune 500 CEO. The relationship became one of deep personal reverence. Graham considered him her closest friend and relied on him for personal as well as business advice. Buffett made a fortune from his investment in Post. Today, newspaper publishing, television broadcasting, cable television systems, and magazine publishing have been added to Washington Post Company's numerous holdings. Buffet's investment company's initial $10 million investment in media empire is now worth $205 million. Buffett still sits on Board of Directors at Washington Post and is also advisor to Graham's successor, her son, Donald E. Graham. Alliances can be just as valuable to small and mid-sized businesses as it can be to larger scale corporations. An important part of Mount Real's revenues depend on success of its strategic alliances. Their business model is ambitious, but one that has proven itself to be both innovative and rewarding for both partners. The concept is strong: directly link your success with success of your clients. Instead of traditional payment, Mount Real receives billing bonds on a percentage of their clients' revenue, therefore insuring a vigorous effort by both parties. Side by side, both companies work for results. The company was first created in 1993 when CEO Lino P. Matteo saw a pressing need for entrepreneurs and smaller companies to outsource their financial management. He devised revenue-based model of financial management and method of maximizing synergies between clients that is still employed today. The relationships they've built over years are lifeblood of company and continue to fuel company's sustained success.
| | The Best Things in Life Are Rarely ThingsWritten by Greg S. Reid
You have permission to publish this article electronically or in print, free of charge, as long as bylines are included. A courtesy copy of your publication would be appreciated - send to: GregReid@AlwaysGood.comThe Best Things in Life Are Rarely Things Have you ever noticed this to be true? The best things in life for me are those things are not things at all. People and experiences make biggest mark: a wonderful relationship, time with family, or a fantastic vacation that stays in my mind for years. It seems funny to me that we spend so much time on this planet chasing “things” that we lose focus on what matters most. I mean, what’s point of having that fantastic new home if you sleep in it all alone? Or drive nicest of cars but are too ill to take it out for a spin? Last week I was fortunate enough to meet an incredible guy named David. He’s one of wealthiest people I’ve ever met, and one of richest guys I’ve come across. What’s difference you ask? Well, I’ve known many wealthy people (the type with all material resources you could imagine), and then I’ve met truly rich people who have one thing in common: they have balance. David has all monetary success you could ever imagine, yet what made him special in my eye is that he wasn’t driven by money; it was more about his relationships. His wife and children mean most to him inside. He works out every day, watches his diet, and here’s real kicker, he doesn’t care what other people think of him. Even though he has all money anyone could want, need, or desire, he drives a modest car and lives in a modest home, for that’s all he says he really needs.
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