Offering Business Sustainability
Commercial RELATIONSHIPS in the RONO™ Model
Business is about RELATIONSHIPS
Commercial relationships are an integral part of any business process. All businesses know that having effective relationships with your customers is rewarding yet mandatory for business sustainability.
Setting out to develop an effective RELATIONSHIP with your target customer(s) or party(s) at the front-end of your future high value business transaction is generally the most time consuming – and risky – component of your commercialisation process. The RELATIONSHIP PHASE is also where the negotiation starts, though not necessarily recognised at this early stage.
Effective relationship provides both parties with a mechanism to limit costly and damaging impact of potential disputes, conflicts, operational problems, as well as problems arising from any commercial contract (e.g. changing economic circumstances) – problems which materially impact on business performance, profitability and sustainability.
The ‘bottom drawer’ concept (a RONO™ concept) tests the health of a relationship – that is, the business is conducted by all parties in a manner without having to refer to the contract, placed in your (virtual) ‘bottom drawer’.
RONO™ advocates that you should not expect to achieve optimal value in the OUTCOME, unless you have established effective RELATIONSHIPS with your customer before entering into any formal negotiation process.
RONO™ advocates that greater commercial value is achieved when you understand your customers’ (or the other party’s) culture and drivers, and that trust and a positive image are developed at the ‘front-end’ of the commercialisation process.
Expected Outcomes of the Relationship Phase
The ultimate objective of the RELATIONSHIP PHASE, before commencement of OPTIONS PHASE is to:
• secure a commitment from customer(s) to meet for further discussion
• establish relationships with alternative customers – thus creating OPTIONS
• understand customers’ drivers (putting yourself in your customer’s shoes)
• generate customers’ interest in your product – demonstrate how your product can add value to business of all parties
• establish control over the business process
• establish groundwork for a sustainable alliance.