Mastering the Art of Effective Commercial Relationships: 19 Key Rules for Success

One way to improve your results in business is to develop effective connections with others, including your peers, your suppliers, and your clients. What follows here are a set of principles important for creating and maintaining commercial relationships. By practicing these principles, you can enhance your interactions with others.

1. Clarity and transparency rule (The Clarity Connection): Your communication must be clear, transparent, and frequent, like a well-lit path through a dense forest. This requires transparency from all parties, and it must also ensure that everyone understands the expectations. Frequent communication is essential for building and maintaining a relationship.
2. Trust and reliability rule (The Trust Builders): Trust is the currency of great relationships and the second foundational principle of commercial relationships. All parties in the relationship must be trustworthy. Trust is established when you are reliable, delivering on your promises and deadlines. In a commercial relationship, the other party must do the same.
3. Mutual benefit and parity rule (The Win-Win Wonders): All parties in the relationship must benefit. If one party benefits while the other doesn't, the relationship is likely to end quickly. This principle emphasizes the importance of achieving parity in benefits.
4. Transparency and honesty rule (The Open-Book Approach): Transparency is a critical principle in all valuable relationships. Creating and maintaining a relationship is easier when transparency is present. It's also more beneficial to communicate a learning curve rather than hiding the fact that it will take time to produce a certain result.
5. Effective conflict resolution Rule (The Peacemakers' Pact): Over time, parties in a relationship will inevitably experience conflict. Successful relationships require both parties to work through conflicts effectively and reach fair resolutions, ensuring the preservation of mutual benefits.
6. Shared responsibility for results rule (The Partnership Power): It might be tempting to think that the supplier alone is responsible for delivering results, but that's incorrect. Both parties must fulfill their respective roles and understand the importance of clients doing their part to achieve the desired results.
7. Timely responsiveness rule (The Swift Support): Lack of responsiveness can convey a lack of care. When facing a problem or challenge, it's crucial to respond promptly, as sooner is better than later. Even if you need to do some work before addressing a need, being proactive is essential. Email isn’t adequate for commercial relationships.
8. Long-term relationship focus rule (The Relationship Redwoods): Neglecting a long-term view of the relationship can be detrimental. Parties seeking short-term gains may overlook the substantial benefits of a long-term focus on the relationship. Embracing a long-term perspective can enhance results for both parties involved.
9. Adaptation to change rule (The Shapeshifters): Throughout your relationship, external factors will induce change. All parties in a relationship should be prepared to adapt to these changes. Collaborative efforts to adjust strategies and methods, even if it involves changes in how each party operates, are essential for achieving desired results.
10. Integrity and ethical behavior rule (The Honesty Highway): Integrity and ethics are essential. Unethical behavior can harm one party and lead to the dissolution of the relationship. Relationships should not persist when one party acts unethically, as this indicates a fundamental breakdown of trust.
11. Continuous feedback rule (The Insight Exchange): Sometimes, one party may think they are performing well while the other party is dissatisfied with the results. Successful commercial relationships demand regular feedback. The absence of feedback does not indicate success; rather, it implies a lack of information. Frequent feedback is essential to assess performance and identify necessary adjustments.
12. Continuous improvement rule (The Innovation Oasis): Consistently striving for improvement in your actions and methods enhances your relationship. Both parties should collaborate on enhancing their outcomes. Conducting quarterly business reviews offers a chance to enhance results and strengthen relationships.
13. Personal relationships rule (The Bond Beyond Business): Consider moving this rule higher on the list. It's unusual for businesspeople to downplay the significance of relationships. Over time, your commercial relationships may evolve into personal ones as well.
14. Risk management rule (The Fortune Tellers): In a commercial relationship, both parties can collaborate to identify and mitigate risks and anticipate future market changes. Proactive risk management is crucial during periods of significant change to identify potential threats and opportunities.
15. Legal compliance rule (The Fair-Play Agreement): Commercial relationships often involve contracts, and legal compliance can sometimes lead to complex contracts that shift risk to one party. One approach to enhance your commercial relationship is to establish an agreement in which both parties share responsibility for any harm caused, indemnifying each other.
16. Gratitude rule (The Appreciation Avalanche): A powerful commercial relationship is forged when both parties express gratitude for each other, their efforts, and the results achieved. Mutual appreciation strengthens the partnership.
17. Consistency rule (The Reliability Rockstars): Consistency from both parties enhances relationships. Inconsistency from one party can negatively affect the other, and in today's context, certainty is highly regarded.
18. Proactivity rule (The Initiators' Insight): It is beneficial when both parties are proactive in managing the relationship. A reactive approach from one party can lead to issues in the relationship.
19. Strategic focus rule (The Investment Indicator): The more strategic a relationship is, the better the results, and the more likely the parties will make continuous improvements. This investment should be a shared responsibility among all parties. This indicates the effectiveness of the relationship.

The Risk of Transactional Relationships

In transactional commercial relationships, both parties may neglect these rules, however, this poses a risk of ongoing problems and short-lived relationships. When a sales organization disregards these rules, their competitors may eagerly take their place. When a client disregards these rules, they may not be able to keep a supplier that can help them achieve the results they need.

Rules for Commercial Relationships

Long-term relationships provide the stability and consistency most businesses need to thrive. This list of rules can assist you in identifying areas that may require attention when creating and nurturing your commercial relationships. Collaborate with your team to enhance areas lacking or require greater emphasis.