Investing in Business Relations

Happy Valentines Day! As we in the United States think of friends and loved ones during this holiday, consider whether you are investing in your business relationships in addition to your personal ones. Do you have a strategy, a plan for targeting those relationships that are most important to your organization? Are you engaged in corporate diplomacy?

Per Michael Watkins, author of What Every Business Leader Should Know About Government, corporate diplomacy is the work of senior executives in advancing the corporate interest by negotiating and creating alliances with key external players, including governments, analysts, the media, and non-governmental organizations (NGOs). I would argue that it is the work of every member of your organization, and your targets should also include clients, vendors, employees, bilateral chambers of commerce, board members, consular and trade officials and anyone who can influence your success. We all need to nurture and appreciate key relationships in our professional lives, and should be constantly seeking ways to create new alliances and nurture existing ones.

In the global arena, careful attention to relationships in the working world is even more important. One key reason is that in many cultures, people strongly prefer to do business with people they know, to the extent that other factors we in the U.S. might find critical, like cost and schedules, may not always be the deciding ones when it comes to choosing who to do business with. The Chinese even have a term that highlights the great importance of personal ties: guanxi, meaning “networks,” or “connections,” understood to be a network of relationships that provide support and cooperation among the parties involved in doing business.

It’s not hard to work on your relationships. One thing you can do, is stay in touch. I recently received an invoice from one of my vendors. With it was a short note from the owner who happens to be from Israel, that said he’d like to connect. I didn’t give it much thought, but when I submitted payment, the owner sent another email, “Would also love to connect, see what is happening in your life and business and share some insights. Let me know your availability.” I had been thinking about a few projects and knew he had experience in these areas so we scheduled a call. He gave me some valuable insights and as a result I asked him to submit a proposal. That’s how it’s done. With just a little effort, time, and thought you can invest wisely in your business relationships and see them grow. My vendor turned a simple note into a solid piece of business.

How’s your guanxi? What are you doing to build new relationships and nurture those you have?

Soon I hope to unveil a cleaner and simpler design for this newsletter. It was also time for a change in name to better reflect my audience. I firmly believe that the work of protocol applies to all, regardless of title, rank or the industry in which you work. In protocol as in business, there are rules, procedures and guidelines, but often we encounter issues that cannot be found in a manual or book. Points that are neither black, white nor gray but can fall anywhere on the color spectrum. Trying to identify and address these can be a matter of perspective and can present even greater challenges in the global environment.

I began this transition last year with The Protocol Perspective and received a favorable response so I will continue to try to share different perspectives on protocol, diplomacy and cross-cultural issues.

I look forward to engaging with you so we can learn from each other and promote global understanding for global success.