Strategic partnerships can enhance business

We recently decided to remodel our kitchen and include granite tile on the counter tops. After selecting the product at a local store specializing in tile and stone, the salesperson suggested three qualified installers. The tile has subsequently been installed and the work was not satisfactory. Two "fix-it" visits from the installer have not resolved the problems.

The owner of the installation company has visited our home and promised that his best employee will be sent to our home to fix the work. I am frustrated and have begun to associate our problems with the supplier of the tile. I know that the granite tile is OK, but if it is not installed correctly then I begin to associate the problem with all involved.

This is just a glimpse into the perilous possibilities of strategic business partnerships. For many businesses, partners are critical to survival. Software companies need hardware suppliers to install the platform, manufacturers need distributors and retailers to move the products, retailers and wholesalers are dependent upon contractors, and a myriad of companies are dependent upon others for training and consulting services.

Finding partners may be only half of the task. Maintaining strategic relationships over time with partners can be a major challenge. Here is how some companies have successfully retained good partners while parting ways with those who cause problems.

-- Customer surveys. As part of their customer follow-up, many companies are including questions in their surveys regarding the partners to which they have referred their clients. Clients are asked questions regarding the quality and timeliness of work, and would they repurchase from the company based upon their satisfaction with the entire process.

Lexus and other car manufacturers are famous for this type of information gathering. Surveys are sent to purchasers to determine not only the quality of the product, but also to determine the customers' satisfaction with the buying process, service work and treatment by the dealership's employees. These automotive companies have learned that their reputation is in part dependent upon the quality of their distribution partners.

Occasionally, a company will hire a consultant to conduct a focus group of past buyers to determine levels of satisfaction with the product or service and how they feel about those who are partnering with the company in delivering the product to market.

-- Better Business Bureau. A good source of information on companies is the local Better Business Bureau. This organization maintains records on complaints and problems associated with businesses. I would suggest that you make it a regular habit to access this information from the bureau (www.utah.bbb.org) to determine the status of your business partners.

-- "Buyer Beware" list. The state of Utah publishes a list of companies under a "Buyer Beware" disclosure. This list includes company names, the basis for inclusion, fines and status. Open www.commerce.state.ut.us, then select "Consumer Protection" and look for the Buyer Beware category.

-- Industry associations. Some industries maintain lists of qualified companies. Companies must meet certain requirements including certifications, training and acceptable past performance.

As a business owner it is your responsibility to maintain relationships with those partners who will enhance your business by providing quality services and products to your customers. In the end, the customer will attribute some of the satisfaction or dissatisfaction to all involved, no matter how good your product may be.

Which reminds me -- my next phone call is going to be to the local tile supplier.

Gary Williams is affiliated with the BYU Center for Entrepreneurship. He can be reached via e-mail at [email protected].

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