External Relationships: Engaging People Beyond the Organization’s Walls
We talk a lot about employee engagement and its connection to organizational results. And substantial research shows that employees are more engaged when they feel valued by their supervisor, senior leaders and company culture.
But does it matter if our vendors are engaged? Will it affect their productivity and commitment if they feel valued?
Peder Gustafson thinks so. As the Chief Procurement Officer for Ameriprise Financial, a Fortune 250 financial services business based in Minneapolis, it’s an issue he often encounters. After all, he leads a large procurement operation who collectively negotiate and manage thousands of third-party supplier relationships.
Peder shared some insights with me about what’s most important to consider in managing external relationships. They are relevant whether you are purchasing simple goods or complex enterprise services:
1. Label with intention. Peder began by admitting he doesn’t like words such as “vendor” or even “partner” because they don’t always properly characterize the right relationship dynamic. As I’ve mentioned, names associate feelings. While a common term is fine to refer to the general population of suppliers, alternative naming conventions can instead be used for specific or key sets of suppliers that more accurately define the relationship or connote respect and connection, such as “application service provider” or “resource strategy firm.”
2. Find out what they want. If your goal is greater engagement, you need to know what your counterpart expects. Ask them what type of relationship they desire, how strategic the relationship should be and how much personal connection they feel is necessary to drive success. Relationships amongst buyers and sellers are a two-way street so setting clear expectations early in the relationship reveals how aligned the parties are, if opportunity exists to deepen the relationship, or if it is best to remain transactional.
3. Be interested and engaged yourself. Are you genuinely curious about the other person’s business, or just interested in selling more or maximizing payment terms? An engaged relationship requires engagement on both sides. And the more you understand and care about their business, the better ideas you can bring to the table.
4. Be specific about requests for time. External relationships require scheduled meetings to nurture and advance the connection. Too often, though, these meetings are one-sided requests and unproductive “check-ins” or “relationship reviews” that are dull and meaningless. Peder suggests that both parties be specific about the purpose and agenda of meeting requests. This helps convey respect for the other person’s time and increase engagement during meetings. For critical relationships, a steady cadence is important to ensure routine engagement during both good times and bad.
I’m fortunate that I can immediately think of my own clients who exemplify these tips and do a great job of engaging me. Just last week, in fact, a client who’s the CEO of his company made a point to seat me at the head of their boardroom table during a meeting. It was a small gesture that made me feel valued…an important part of their team and purpose. You can probably think of similar examples from your own relationships.
In today’s collaborative and networked world, we have an unprecedented opportunity to make our businesses stronger by engaging and sharing knowledge beyond the confines of our organizational walls.
What are you doing to increase external engagement, productivity and commitment?
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