by Adam L Stanley | Sep 13, 2011 | Relationships, Technology, Vendors and Partners
Vendor Relationships Critical Partnership Element #5: Demonstration of Trust and Integrity
I recently ran an informal poll on LinkedIn that asked a relatively simple question:
Today’s IT leaders depend on a plethora of new players to drive change. What should CXOs most look for in a partner?
Here are the results¦.
Webster’s dictionary defines trust as the “assured reliance on the character, ability, strength, or truth of someone or something.†A favorite quote sums up the importance of this small word.
Trust is like an eraser, it gets smaller and smaller after every mistake.
Thus, it was no surprise to me that so many people in my poll rated this element as the most important trait to look for in a partner.
I’ve blogged on some of the elements that garnered the least votes but the most comments as being table stakes. To cover this important Trust element, which tied for first place, I’ve invited John Vincent, a founder of Broadgate Consultants Ltd based in London, to guest blog. In his post below, John speaks of an equation used in assessing trust and highlights a critical point that Trust is not easy to come by. Trust, he says, must be both earned and sustained. If you are a vendor or IT partner, I’m hoping his perspective will help you keep YOUR trust eraser nice and strong. If you are a CXO, I hope it helps you know what to look for in assessing and building relationships with your partners.
In Relationship,
Adam
“TRUST must be EARNED and SUSTAINED
By John Vincent, Broadgate Consultants Ltd.
Recently Adam L. Stanley (@ALSWharton) ran a very interesting poll on LinkedIn around the theme of technology change with the question, What should CXOs most look for in a partner? (See above for results). Of the 5 categories, ranked equal first alongside Implementation and Execution was Demonstration of Trust and Integrity, with 43%. It is this theme that I’d like to explore.
To be truly considered a trusted advisor to clients and colleagues the status has be both earned and sustained. At the optimal level, it is a symbiotic relationship between CXO and partner i.e. A relationship of mutual benefit or dependence. So many times we see this relationship distorted or the balance skewed, such as contracts where the partner either “buys the deal†or has commercials tied down to a level to which they cannot deliver. Familiar? Or global partner agreements that are driven from a success in one business domain which is then shoe-horned into a non-fit for purpose world. Seen that?
The Trust Equation
The Trust equation talks about it being the sum of Credibility, Reliability and Intimacy divided (or diluted) by Self Orientation. It is a good general measure. Without going into the mechanics and metrics, let’ss look at the constituent parts.
Credibility
This area is most commonly achieved in a relatively moderate amount of time. The quantitative aspects, or believability, can be established through demonstrating technical capability and advice, or checked through references etc… The softer side, such as honesty, is more related to comfort and rapport. In the survey it is also strongly related to Integrity. In the CXO Partner relationship this can be eroded through traits such as over exaggeration, anticipating needs rather than listening to the problems and promising, or over stating, capability which doesn’t exist. I saw a colleague a few months ago who had moved from the client to the supply side and she was very unhappy at the practice of claiming non-existent service capability and subsequently resigned.
Reliability
It is taken as given that partners should be reliable, demonstrate consistent behaviours and be dependable. Right? However, the CXO vocabulary is littered with anecdotes of partnership agreements gone bad. We hear a lot of talk of the A Team at the outset being swapped for the Team during execution. Or surprise that the bread-and-butter services of some of the big partner firms turn out to be far from expectations or developed on the job. And remember it’s not uni-directional. Reliability also applies to the client side in the relationship. For an effective and efficient model there are obligations on both sides. Reliability applies all round in areas such as communications, timeliness, clarity and consistency.
Intimacy
Managing change in today’s climate has never been more difficult. CXOs should seek trusted partners that they can engage with on a different level to drive often challenging agendas. In a true partnership, both sides should be open to explore solutions without keeping important information in the back pocket. This includes being clear in the blockers and issues on both sides – whether that is internal client constraints, desires, commercial goals etc – as well as limitations or short falls in delivery on the partner side. Difficult, yes? But if the personal things relating to the engagement get shared it can bring an emotional closeness to benefit all. Of course, this takes more time in terms of the trust equation.
Self Orientation
This is the main source of dilution in demonstrating trust. Partners who have a tendency to jump straight to a solution without listening, claim the higher intellectual ground, fail to grasp a CXOs motivations, or are openly more interested in themselves or the deal will quickly destroy any of the good parts of the equation. We’ve all sat in front of partners where it is clear that they are winging an answer on the basis that time back at the office will allow for a veneer of credibility to be placed over the proposal. Also, an over willingness to drop in a catalogue of high profile names or organisations where they have had market leading proposition or success can be another example of excessive self-orientation. Really…Let’s take a look at some of those in more detail…can we see the Case Studies ?…talk to the CIO ?
The demonstration of Trust and Integrity in the CXO Partner relationship is very important. The old safety net practice doesn’t stand up to scrutiny anymore. I am not surprised by the results of the survey and hope that we at Broadgate can continue to keep at the forefront.
JV
John Vincent
Broadgate Consultants Ltd
21 New Street
London EC2M 4HR
www.broadgateconsultants.com
twitter.com/broadgateview
Linkedin/broadly speaking
Which is Most Important?
So, which would YOU put FIRST? Subscribe to this blog or come back for discussions on all five of the vendor relationship characteristics. Meanwhile, send me a tweet or post your comments below.
Vendor Relationship Series –
“Trust – Guest blog by John Vincent of Broadgate Consultantsâ€Â | “Have you MET the CFO? | “Experts or Frauds?”
by Adam L Stanley | Aug 8, 2011 | Relationships, Technology, Vendors and Partners
Vendor Relationships Critical Partnership Element #4: Ability to invest / Low Cost Providor
I recently ran an informal poll on LinkedIn that asked a relatively simple question:
Today’s IT leaders depend on a plethora of new players to drive change. What should CXOs most look for in a partner?
Here are the results ….
My next several blog posts will focus on each of the possible answers and share my thoughts, along with those of my respondents (public and otherwise), on why each of them are in fact critical.
I start with the one that not surprisingly received NO VOTES from my vendor-heavy polling group, “Ability to invest / low cost provider†and I will call this blog post “Have you MET the CFO?â€
Why Cost Matters
- The IT department has become a crucial partner with the business units to achieve greater ROI (return on investment). With IT costs being a significant chunk of shared services costs for the typical corporation, there is tremendous visibility on effectively managing these costs.
- According to a 2010 survey from Gartner and the Financial Executives’ Research Foundation (FERF), The CFO is increasingly becoming the top technology investment decision maker in many organizations. The study concluded that “CIOs must understand the impact their CFOs have on technology decisions in their organizations and ensure that they are providing the CFO with the appropriate understanding of technology, as well as communicating the business value that can be achieved.â€
- Every CTO or CIO has had at least one conversation in the last 24 months where he or she was asked to “discuss our objective to reduce overall IT costs by X% while maintaining or improving service quality and supporting our business growth.â€
- While there are MANY CFOs out there that have significant experience in technology, all too often CFOs view IT as a cost-center only, a shared service that is ripe for chronic annual reductions with or without regard for quality of service or innovation.
- According to a 2011 Gartner/FEI study, only about a quarter of the CFOs surveyed had confidence that their own IT organization “has the organizational and technical flexibility to respond to changing business priorities,” or “is able to deliver against the enterprise/business unit strategy.”
- The survey showed that CFOs “are inclined to invest in technologies where competitive advantage can be demonstrated, analysis and decision-making is assisted, or efficiencies and cost reduction are achieved.†See more
The fact is, no matter how much you want to pick vendors that have the coolest tools and the most trustworthy teams, each technology investment MUST generate positive return for our company. And, while there are SEVERAL factors in ROI, cost remains one of the most visible, even if not the most impactful. To get the attention of your CFO and thus your top management overall, you must be prepared with a cost effective value driving solution. So, a vendor that wants to bring something new to the table will often be asked to invest in the relationship by significantly reducing cost of entry for the client.
Vendor Relationships Tips for CIO/CTO
Yes, cost is critical, and yes vendors must realize this and be prepared to make an investment in a new relationship. That said, here are my thoughts on how the CIO/CTO should work with vendors to create win-win relationships.
1. Think about the marathon. Is this vendor someone that you want to work with in the future? Remember that a buyer’s market will ALWAYS become a seller’s market.  Payback is a …. Bummer. The recession may give you the upper hand now but when markets rebound, memories are long and you may be on the other end of the negotiating table. Think about the relationship as long-term and act accordingly. Negotiate in good faith, with integrity, and with fairness.
2. Remember tradeoffs. As you’ve often told your CEO/CFO, cost and quality are inversely relational. Do you really want to negotiate so hard your vendor has no ability to make any profit, thus forcing them to cut corners, bring junior resources, or otherwise fail? We signed a deal recently that we estimated would save us “an insane amount†in a particular area of our infrastructure. We squeezed the vendor so hard that the project was, frankly, a nightmare. The disruption to the business, the rework and errors, and the added costs to bring in additional resources took away much of the savings. Neither our team nor the vendors were happy in the end.
Mark Church, who was my Account Manager at Cisco when we awarded them “Vendor of the Year 2010â€, said it best in his response to the poll:
“I think one must evaluate both sides of the equation: Is it better to be the lowest initial cost, or the solution with highest return? Whenever possible, partners must strive for both but should be rewarded for driving transformation through innovation.â€
Amen!
3. Be authentic and honest. If you have trust in this vendor (and given this was in the top two responses in my survey I’m guessing you agree this is important), you should openly discuss cost challenges and ways the vendor may help your business. For years, I have had a practice of writing my annual cost reduction target in large numbers at the top of my office white board. Every vendor partner that meets with me can see the target. Vendors that are part of my strategic partner circle actively and regularly come prepared with ideas for helping me achieve the target.
I am proud of the relationships I have built with my vendors over the years and very much appreciative of the investments they have made to help me drive value for our clients. Most importantly, I hope they would all work with me again in the future based on the relationship we have built. While no one voted for “Ability to invest / low cost providerâ€, I would argue that perhaps that is because this more than the others could be considered “table stakesâ€. If you are so expensive I could not even begin to bring your technology to our executives – especially the CFOs of the world – trust, execution skills, and business knowledge just will not matter.
Which is Most Important?
Founder and CEO of New Relic Lew Cirne (twitter @sweetlew), said he was torn in making a selection. “Great list of options, nearly all are critically important,†he wrote in his comments after voting. I agree completely! All five of the characteristics are important. Frankly, the perfect vendor should have all, but in the era where there is a new technology, a new tool, some new social media outlet popping up every day, which would YOU put FIRST?
I would love to hear from you!
Be well. Lead on.
Adam
Vendor Relationship Series
“Trust – Guest blog by John Vincent of Broadgate Consultantsâ€Â | “Have you MET the CFO? | “Experts or Frauds?”
Resources:
- How To Squeeze Top Value From Your Technology Vendors – Investors.com – http://bit.ly/rjXNDM
- Vendor Negotiation: Squeeze Now, Pay Later CIO.com – http://t.co/KpMfCen (horrible, short-term strategy that was popular in early 2000s after the first tech bust)
- Forrester: How to squeeze your vendors | ITworld – http://bit.ly/nZRuBn (more balanced approach in worst days of recession – late 2008)
- CFOs Lack Faith in CIOs and IT Teams, Survey Shows CIO.com – http://bit.ly/ovklhQ
- The role of the CFO in cost reduction – http://bit.ly/oPrZsl
Adam Stanley
Adam L. Stanley Connections Blog
Technology. Leadership. Food. Life.
AdamLStanley.com
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by Adam L Stanley | Jul 28, 2011 | Leadership, Relationships, Teamwork
People aren’t picking up new skills fast enough? It might be your fault. Six questions to ask yourself
Today, I wanted to repress a blog from Blanchard LeaderChat. This is one of my favorite leadership blogs and the folks at Blanchard know their stuff. It resonates with me. I encourage you to follow them on Twitter at @LeaderChat or visit leaderchat.org to connect to their blog, newsletter or RSS feed.
Read this Blog - People aren’t picking up new skills fast enough? It might be your fault. Six questions to ask yourself. by David Witt, July 25, 2011 via Blanchard LeaderChat
Extract of blog – See if you you’ve covered these six basics to maximize learning and application.
- Energize learners. Set the context for learning before anyone steps into the classroom. What can people do to get up-to-speed on this subject? What can they read, or who can they talk with, to become as excited about this topic as you are?
- Navigating the content. Is the presentation learner friendly? Have you put together a good structure that includes breaking the content down into bite-sized chunks that people can easily digest? Or have you designed this as a lecture type presentation where you will be doing all the talking and it will be a challenge just getting through the content—let alone actually retaining anything?
- Generate meaning. Have you connected the dots so people see why learning this new content is important? People need to see why they should take the time to invest in learning new skills. Your job as a leader is to provide that meaning.
- Apply the learning. What does this new skill look like in the real world? Have you included some opportunities to practice the real life application of this new skill—or is that something you are leaving up to individual learners to figure out for themselves?
- Gauge and celebrate. How will you measure if people are really doing something different with the content? Don’t be vague on this point. What is the business metric you are looking to impact? ROI is something you need address at the beginning of a new initiative—not after the fact.
- Extend the learning. How will you keep the initiative alive beyond the initial rollout? New habits take time to develop and a lot of support in the early days. What is your follow-up plan? How will you ensure that skills learned in the classroom are applied back on the job?
So often, leaders get frustrated with their teams if they do not immediately pick up on new skills. Maybe it’s YOUR fault. What do you think?
In relationship,
Adam
by Adam L Stanley | Jul 12, 2011 | Leadership
In a recent Town Hall meeting I held with leaders of my team, I discussed skills that were critical for all leaders within the extended team. Too often, leadership training and coaching is provided for the boss and maybe his direct reports. My message has always been that leaders are at all levels. Everyone can be a leader, whether they have direct management authority or are simply influencers.
I summarized eight key expectations of leaders at all levels and wanted to share them with you.
1. Relationships. We must have the ability to demonstrate caring, collaboration, respect, trust and attentiveness to all of our stakeholders. Be Authentic.
“Some of the biggest challenges in relationships come from the fact that most people enter a relationship in order to get something: they’re trying to find someone who’s going to make them feel good. In reality, the only way a relationship will last is if you see your relationship as a place that you go to give, and not a place that you go to take.” — Anthony Robbins
(see more on relationships in my prior blog post)
2. Communication. We must communicate effectively across multiple media and cultures. Listening and two-way feedback must be the norm. Be a Listener.
“A good listener tries to understand what the other person is saying. In the end he may disagree sharply, but because he disagrees, he wants to know exactly what it is he is disagreeing with.†– Kenneth A. Wells
3. Collaboration. We must build the team and enable our teams to collaborate more effectively with each other. Be a Team Builder.
“The secret is to gang up on the problem, rather than each other.” — Thomas Stallkamp
4. Nurturing. We must help people grow and develop their skills and capabilities. Talent management needs to be more than annual reviews. Be Present.
“Good leaders make people feel that they’re at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens people feel centered and that gives their work meaning.” –Warren G. Bennis
5. Financial Acumen. We must manage our organization like the large business it is, understanding the financials, setting goals, and measuring ourselves objectively. Be Diligent.
“Our treasure lies in the beehive of our knowledge. We are perpetually on the way thither, being by nature winged insects and honey gatherers of the mind.†— Friedrich Nietzsche
“Try running ANY project, team, or major initiative without understanding the numbers behind it …. You. Will. #FAIL.â€â€”Adam L. Stanley
6. Morale Building. We must create an environment in which people experience positive morale despite the level of change. Recognition and motivation are critical. Be Grateful.
“All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.†–John Kenneth Galbraith
7. Pace Setting. We must lead by example, taking on challenges, rolling up our sleeves, and making tough decisions when called for. Be Decisive.
“Leadership is a matter of having people look at you and gain confidence, seeing how you react. If you’re in control, they’re in control.†–Tom Landry
8. Inspirational. We must build a strategy and believe in that strategy, convincing our teams to join us in driving toward the strategy. Believe.
“Leadership is a transfer of belief — and great leaders inspire their teams to believe they can succeed. As a leader and manager, you are not just leading and managing people, but you are also leading and managing their beliefs. You must utilize every opportunity available to transfer your optimism†— Jon Gordon
What expectations do you have for leaders at all levels? As importantly, how good are you at demonstrating these skills yourself?
Be Well. Lead On.
Adam
Related Posts:
Who Am I?
Khalil Gibran on Leadership
Lessons from Henry V
Adam Stanley
Adam L. Stanley Connections Blog
Technology. Leadership. Food. Life.
AdamLStanley.com
Follow me on Twitter | Connect with me on Linked In | “Like†me on Facebook
by Adam L Stanley | Jul 8, 2011 | Leadership, Relationships
Thoughts on Leadership from Kahlil Gibran
Anyone that knows me knows that I like to read “guru” books on leadership and teamwork but am also often highly critical of such books. It is not that I do not believe that there are people that have through their experiences become experts in these areas. It is more because I still feel the best way to learn to be a better leader is to be a leader. Successes, failures, and time are the best teachers of leadership and the best tools for enhancing and strengthening relationships as a leader.
I have also found that some of the best tips I have read have come not from “guru” books but from fictional accounts of young sorcerers coming of age (“A Wizard of Earthsea” by Ursula K. Le Guin), creatively imagined conversations with God (“The Shack” by William P. Young), and philosophical poets like Lucretius, Dante, Goethe and (more contemporary) Kahlil Gibran. There are a few books that I keep handy and have read multiple times and two of them are from Gibran: “Sand and Foam” and “The Prophet”.
I have tweeted many quotes from Gibran and encourage you to follow me on twitter @adamstanleyatx to read some of the quotes. In this blog, I want to share brief thoughts on leadership from various Kahlil Gibran books.
1. A little knowledge that acts is worth infinitely more than much knowledge that is idle.
I have been quite lucky in some instances, and strategically successfully in many, at hiring and retaining really smart people. I always brag on my teams as being so much smarter than me. These technologists, business analysts, financial wiz kids, and others have truly shown they know their stuff; the “A” list in terms of knowledge. But, the ones that have truly stood out are those that were actually able to take that knowledge and act on it.
A successful business leader has to be really good at both developing ideas and actually implementing them, and this is one of the things that set smart people apart from effective people. Having a good operations mind that augments strategic thinking is critical as it’s about developing a strategy and making that strategy a reality. I advise my young leaders to learn how to contemplate problems, really analyzing what the root of the issue is and defining the boundaries of your required work. Then, roll up your sleeves, develop a strategic plan, and deliver on the necessary change required to enhance value.
2. Most people who ask for advice from others have already resolved to act as it pleases them.
How many times have your employees been made to feel that regardless of what they say, you or other leaders will still act exactly as you initially planned? I had a colleague who was absolutely notorious for this. This particular person would hold meetings with dozens of individuals gathering feedback on a certain initiative. Hours of time would be spent in one-on-one interviews, small group sessions, and through surveys and data gathering. Yet, if you were to do an analysis of the delta between original and final plans of this individual, the result would be close to zero. The fact of the matter is that this person did not really care what others thought, but simply felt there was a need for the appearance of validation. Over time, guess what happened? People began to spend less and less time providing feedback, declined meeting invitations and only supported the initiatives grudgingly after an executive mandate.
How much more powerful could this person have been as a leader if feedback and input from diverse constituents had truly been used as an enabler versus a symbolic validation? I have found that my greatest successes have come from situations where I have allowed people to openly challenge my assumptions and provide candid feedback on my ideas. As a leader, you have the opportunity to leverage the strength of your team to magnify exponentially your power. But only if you truly resolve to listen and react to their feedback.
3. “I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet, strange, I am ungrateful to those teachers.”
I’m sure you have a few of these teachers in your life as well. Learning from bad leaders and employees is just as effective as learning from the good ones. And I’ve had both. Truly, there is nothing that makes you more cognizant of your listening skills than being in a room with a blowhard that just won’t shut up! A good friend once told me I should use a formula for calculating the optimal participation of each person in a meeting. He basically said to take the total number of time devoted to discussion (i.e., not including the base presentation of content) and divide it by the number of people in the room that are there in a contributory role. If you are one of 6 people in a 30 minute meeting and have talked for more than 5 minutes, take a breath and contemplate the conversation. Yes, you’re smart, and perhaps you do know more about the topic than anyone else in recorded history. But, wouldn’t it be interesting to hear what the other lesser mortals think?
Today, I commit to be a better listener, a more tolerant manager, and a kinder colleague and partner to all those in my professional environment. And via this blog, I give a hearty and most gracious THANK YOU to those of you who taught me so much through your (bad or good) example. You know who you are (I hope)!
Be Well. Lead On.
Adam
Adam Stanley
Adam L. Stanley Connections Blog
Technology. Leadership. Food. Life.
AdamLStanley.com
by Adam L Stanley | Jul 3, 2011 | Leadership, Relationships, Teamwork
Today I shared a series of tweets on relationships, the primary unit underlying ALL leadership and teamwork constructs. I used quotes from one of my favorite books, The Shack by William Young.
In my various leadership roles throughout the years, I have developed relationships with hundreds of leaders. Some worked with me, many worked for me, and of course there were those in positions of authority over me. I have discussed leadership so many times over the years and have typically thought of this as one of my key strengths. Recent conversations and events have truly forced me to rethink my focus and ideas on leadership. Is being a good leader truly enough?
In The Shack, Young uses a fictional account of a meeting with God, Jesus, and the Holy Spirit to emphasize the role of relationship as the single building block of life. And the more I read, the more I realized how true this really is. I have been blessed to have amazing relationships with most people who have ever worked for me and do consider myself a strong leader. However, what really makes my life fulfilling (or not) is the energy I draw from unique and valuable relationships with my teams, peers and superiors, with my family and friends, people at church, business relationships, and even random people on the street or in stores! Life is full of relationship and the more you embrace people for both who they are and what they uniquely bring to you (and you to them), the richer you will be.
Here are the relationship quotes I tweeted from The Shack today.
1 “You cannot produce trust just like you cannot ‘do’ humility. It either is or is not.”
2 “Lies are a little fortress; inside them you can feel safe & powerful.”
3 “You don’t play a game or color a picture with a child to show your superiority.”
4 “Each relationship between two persons is absolutely unique. That is why you cannot love two people the same.”
5 “Submission is not about authority and it is not obedience; it is all about relationships of love and respect.”
6 “Forgiveness in no way requires that you trust the one you forgive.”
7 “Life takes a bit of time and a lot of relationship.”
I am especially fond of YOU and our relationship.
Best, Adam
In Relationship,
