Understanding Business, 10th Edition

Published by McGraw-Hill Education
ISBN 10: 007352459X
ISBN 13: 978-0-07352-459-7

Chapter 1 - Taking Risks and Making Profits within the Dynamic Business Environment - Critical Thinking - Page 25: 3

Answer

Successful relationships with suppliers depend on trust. This takes time and successful transactions. Are you a fair and honest partner and collaborator who provides accurate feedback and expectations? Or do you impose unrealistic demands for price, quality and service, and otherwise take every opportunity to take advantage of the vendor? The best suppliers actually “fire” customers who prove they are untrustworthy or too high maintenance. Similarly, good relationships with employees are based on trust. Do you do what you say you’ll do? Are you a boss who is fair, or are you flighty? Do you communicate your expectations clearly, and then provide feedback about performance? If you don’t strive to establish a good relationship, your best employees will leave to work for someone who will appreciate them.

Work Step by Step

You are not just in the restaurant business; you are also in the relationship business. A useful way to establish trustworthy, productive relationships is to look at them through the lens of (a) requests and (b) promises. Are we both clearly communicating what we want from each other (the requests)? And are we both making commitments we are willing and able to follow through on (the promises)? Looking at relationships this way keeps communication clear, expectations explicit and performance gaps obvious enough to remedy.
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