Journey of a Serial Entrepreneur

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Common Value Systems

 

Common Value Systems

Value systems are a key metric which should be carefully evaluated when selecting a strategic partner. These systems are not always clearly displayed or disclosed by either party. When talking about the core value systems of a company I do not mean the superficial coating. They are those values which are key drivers involved in decision making, product development, quality and customer service.

When evaluating a potential partner you first have to assess whether or not they have a win-win attitude. This is a critical requirement, without it the partnership is destined to be short lived or will not reach its potential. In my experience this is a mindset which is not present in a lot of organizations. They still use the traditional methodology of thinking which is to maximize their gain in any potential deal. The next time you are evaluating a potential strategic partner think win-win and see how a mutually beneficial solution can be found.

Secondly a partners view of product quality and cost is an important aspect to take into account. If you are a high quality producer and you are thinking about partnering with a low cost distributor who has national presence you will probably not be able to provide a win-win situation to your distributor, as the price of your products will be too high. The reverse scenario is where a high cost distributor will not want to distribute low cost products. Other key aspects such as aesthetics, customer service and human capital development should be some of the other indicators to be looked into before making a decision.

Common value systems are integral in creating long term partnerships. They provide a common thread which both sides can relate to and work towards. Finding out about a partners value system requires you to research diligently and needs you to dedicate time and resources towards it , however the effort is worth every cent.

 

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One Response

  1. […] 4. Common Value Systems: These are integral in creating long term partnerships. They provide a common thread which both sides can relate to and work towards. Finding out about a partners value system requires you to dedicate time and resources towards researching it diligently , this effort is worth every cent. To learn more about value systems please click here. […]

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