4 A Culture of Partnerships

A culture of partnerships
ONE SECRET INGREDIENT OF HIGH PERFORMERS IS THEIR ABILITY TO TURN
TRANSACTIONAL RELTIONSHIPS INTO PARTNERSHIPS, WRITES DAVE HANNA
Of all the talent management initiatives
you pursue, how many are focused on
harnessing the talents of those outside
your organisation? One secret ingredient
of high performers is their ability
to turn transactional relationships into
partnerships where both parties act as
if “your business is my business.”
Honda’s Organised Partners
An example of this is how the Honda
Motor Company has institutionalized
partnership relationships. Honda goes
beyond contractual agreements with
its suppliers through its best practices”
program, in which Honda employees
who are exclusively dedicated to
helping suppliers with problems in
quality, engineering, or operations. For
instance, when one supplier was overwhelmed
by a dramatic growth in its
business, Honda sent a small team to
work with the supplier full time for
nine months to help them master their
situation.
Procter & Gamble and Walmart: Unlikely
Partners
Some years ago Walmart chairman
Sam Walton and Procter & Gamble
CEO John Smale agreed to break the
tradition of rivalry between their two
companies for mutual gain. To initiate
this effort, a team of P&G managers
from key functions moved to Walmart’s
home in Arkansas. They formed a task
“Everyone you work
with is a partner. You can
achieve so much more if
you treat them like one.”
force with their Walmart counterparts
to study how they each did business
and to develop one totally aligned system.
The team made many changes that,
though not ideal for either company’s
existing systems, did a better job of
fulfilling the consumers’ needs. In the
end, the business system they shaped
delivered a box of Pampers or a tube
of Crest toothpaste from the produc-
tion plant to the store shelf with the
highest quality and lowest cost in the
fastest time ever. Not surprisingly, the
sales volumes and profits of both partners
improved dramatically.
Saturn Corporation’s Partners
Saturn Corporation President Skip Le-
Fauve told anyone who would listen
to him, “Everyone you work with is a
partner. You can achieve so much more
if you treat them like one.” As an example
of this, LeFauve organized regular
meetings with the retailer network
to find ways to help each other. In
one network meeting Saturn retailers
wanted to know how soon the plant
would be going to a third production
shift. “We never have enough cars,” the
retailers lamented.
LeFauve replied that General Motors
would not start a third shift until Saturn
was in the black financially: “We are
right on track with our commitment
to GM, but it will take us another year
to get there.” A retailer asked, “How
much money do you need to get into
the black?” LeFauve replied, “About

Cultural pillars of partnerships
Cultures are shaped by beliefs, behaviours,
and organisational systems.
Here some pillars upon which to build
a culture of partnerships:
$13 million.”
After doing some quick calculating of
annual sales, the retailer stated, “That’s
about $140 per car. If we rebate back
to you that amount, can we get our
third shift?” LeFauve readily agreed and
GM agreed as well. The third shift was
organised, sales volume accelerated,
and the retailer rebate moved Saturn
into the black one year ahead of projections.
And… the following year Saturn dealers
delivered the third-largest selling
car model in the USA.
Dave Hanna is a principal at The RBL
Group, a global professional services firm
committed to creating value through leadership
and talent, strategic HR, and aligned
organisation and capability.
(From “A culture of partnerships,” Inside HR, Issue 4 2014)
1. Being a partner: you are genuine in
your commitment to each other’s
well being. Example: upon learning
that all P&G managers were
spending their first day on the job
fighting the local bank’s red tape to
get their mortgages approved, Sam
Walton called the bank and asked
if it could expedite things for his
business partners. The loans were
approved immediately.
2. Making each other’s business your
business: A common business
purpose united former rivals at
Procter & Gamble and Walmart.
3. Aligning daily priorities: Specific
groups and individuals (like members
of Honda’s best practice unit)
must be charged to accomplish
the important tasks in the partnership.
4. Making partnership commitments:
Specific commitments are agreed
and documented about desired results,
expectations, resources, and
monitoring processes so all partners
are on the same page.
5. Mobilizing to help each other in
tough times: Like the retailers who
found an unconventional way to
support the manufacturer in order
to accelerate the entire Saturn
team’s financial growth.