Business Journal: "Build Sound Technology Relationships"

No small business today can rely entirely on its own resources to survive and remain profitable. Those that continue to be successful have a secret: Develop relationships with people and organizations that can help you succeed. Simple isn't it? But you would be surprised to learn that even huge corporations can ignore this gem of wisdom or - like some proverbial seeker after truth - die within sight of the goal without knowing it.

In this increasingly competitive and shifting business climate, adaptability and innovation are key components to profits. Information technology developments are among the most rapid and fleeting of all.

A company that manages to attract an information technologist of world-class caliber will find that catch to be like a caged bird, that in the wild could reign supreme, but in captivity, withers away. Unless you constantly provide new challenges and allow your information technologists access to a steady supply of fresh ideas, in time they, too, may become like the fabled caged bird. Large organizations that support innovation sometimes can develop and retain a strong pool of talent, but the odds are against them. You can steal talent away from others, but at increasing expense and usually diminishing returns.

Where, then, can the executive turn for help in building and maintaining competitive-edge systems? Computer vendors and consultants represent a great resource that may be readily harnessed with a modest investment in time and money. The problem then becomes how to get the most out of your vendors or consultants.

There are two practices: those who seek a long-term mutual benefit; or look for only immediate gain at others' expense.

Those who follow the latter practice would argue that you should treat vendors like a pack of hungry dogs and make them fight it out for every morsel. You know - they're the ones who approach buying information services and equipment like so many light bulbs or rolls of toilet tissue. This student of 12th century treachery will get one salesperson or consultant to educate them at their time and expense.

The truly dastardly would lead the salesperson to believe that they will get your business after giving up all the information you ask for. The crushing blow administered by the finest graduates of this Ayatollah Khomeini school of management would be to secretly put the entire matter up for bid to get a better price and tell the poor rep that you're sorry that they didn't give you a good enough deal.

If you are proud of that vendor relationship as a CEO or small-business owner, any competitive edge you hold won't be for long. Word gets around, even among competing sales and technical people, to watch out for these types.

The long term effects of these "win-lose" negotiating techniques can be disastrous. Specialized expertise can often be essential to a successful installation. Even if the idea is brilliant, mediocre execution can kill it. Let's not forget that there is always the human impact of technology. A good vendor or consultant will address and help manage the impact of technology on an organization's morale and culture, thus preventing what we call the expensive doorstop effect.

Surprisingly, there is an alternative in the form of true win-win partnerships. The most practical and concrete form of this was learned by this author from Russell Pike, a manager with Digital Equipment Corporation. Russ is an honest man of integrity. A role model to his children, leader in the community and a deacon in his church, Russ had a simple but effective formula: move mountains for customers and get their agreement up front as to the long-term nature of the relationship. Russ would explain to customers looking at price alone what having a solid relationship had meant to clients over the years. Digital became true partners with its customers - it understood their goals, they understood Digital's. When faced with a win-lose approach, Russ would often decline the opportunity (Digital usually got the account back later). Here's how to develop strategic relationships. Assess your information-technology strategy. If you haven't got one, you can't evaluate outside experts - so that's the first step. If you don't know where you're going, get someone to help you crystallize your vision for you.

Once you have a concrete statement of your technology direction and have begun to develop a relationship, solidify it by having like levels of managers meet between organizations. This will help because only top management can unveil a firm's strategic vision. Realize that technology creates problems, and even the best solutions break down. Sometimes, the relationship pulls crucial extra effort from your partner when you need it most. Remember the human factor, too; if you know the regional manager of IBM, you can turn that relationship into resources directed to help you in times of crisis.

Understand the selling cycle - if your vendor could use the order by the end of the year or quarter, commit to giving the order by that date if the vendor can deliver the specifics you need. Remember, your word is as reliable as you make it - build trust by following through on your commitments. If the vendor gives you everything you asked for, give that firm the order even if someone else comes in with a lower bid at the 11th hour. The vendor will appreciate your integrity and will usually reciprocate when you need it most.

Don't forget services - they will cost you dearly later if you buy boxes cheap and fail in the implementation. Often, vendors can provide services either gratis or at nominal charge because they are under their control, rather than cut prices, which aren't. Remember that the best vendors want you to be a successful, satisfied customer, so they might not want to just "flip boxes"(sell hardware as a commodity).

The next time you go looking for new technology to stay ahead of the competition, don't get tangled in the toilet paper. Develop and maintain strong strategic relationships with your key suppliers. It's not just open and honest, it's also in your own long-term best interest. Networking with a win-win strategy is the key to success in information technology.

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