What is a partner?

As you may recall, one of the observations from the NAED Eastern was discussions about “partners” and “partnerships”. During the meeting the term ‘partner’ was used frequently by manufacturers, a little less by distributors.  Glenn Goedecke’s general session referenced partnerships / relationships but he also mentioned the need for accountability.

Inevitably the interactions, and the topic, was brought up by senior level management from manufacturers.

When asked about what partnership meant the definition was “commitment” and “they work together with selected distributors” or they don’t sell “retail or specific distributors”. During the discussion it was asked “how does this ‘partnership’ get manifested, or communicated, within your organization and to your sales organization?” As you could expect, most stumbled here. When the discussion went further of would they forgive a salesperson from achieving their goal if they were supporting a ‘partner’ at the expense of capturing an order … you know the answer. Further, it was asked “do you expect a distributor salesperson to not quote one of your competitors if their customer is buying on price and you don’t give them the ‘right’ number?”  Again, you know the answer.  For 99.9% of the manufacturers in the industry, they sell to multiple distributors in the same marketplace. The only manufacturer who clearly has a ‘partnership’ with its distributors is Rockwell due to their exclusive distribution relationship. While at times they take orders direct, it is our understanding that the distributor frequently gets compensated.

Glenn’s usage of “accountability” is an interesting word as it infers that both sides commit to a desired outcome (or at least best efforts to achieve that outcome as macro-economic issues can unexpectedly impact performance).  To have accountability infers that there are measurable outcomes, specific action steps, and that there are benefits and consequences for performances.

In the words of one rep, manufacturers talking about ‘partnership’ is the “understatement of 2015.”  From his perspective, manufacturers and distributors will do everything they can do to secure an order.

Perhaps instead of emphasizing wanting a partnership, perhaps the channel needs to focus on relationships?

Consider the definition of “partnership”

• Webster defines partnership as “a relationship resembling a legal partnership and usually involving close cooperation between parties having specified and joint rights and responsibilities”.  If we exclude the legal aspect, the issue of rights and responsibilities becomes important. You can see how Rockwell has a partnership due to the legal element.
• They define relationship as “the way in which two or more people, groups, countries, etc., talk to, behave toward, and deal with each other”

The difference may be commitment, dual  accountability and an understanding that “you are in it together”.  Perhaps it is the difference between a marriage and dating. Marriage is conceived to be long-term, for “better or worse”, involves mutual commitment and compromise and both parties have give and take.  Ending a marriage has significant consequences.  Dating is much more casual and can be ended with limited consequences (if any).

So, as you’re doing your joint planning for 2016, consider if you have a partnership or a relationship. How accountable are you to each other? What metrics are you setting to define commitment? And if you’re really committed, what are the benefits and consequences of the partnership?  Perhaps it is better to acknowledge that you have a relationship and you’d like to date long-term.

What are your thoughts on partnerships, relationships and their differences?