RELATIONSHIP DEVELOPMENT & CULTURE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
180
STRATEGIC AND CULTURAL ALIGNMENT
Figure 6.8. Companies using a 360° relationship assessment approach – all respondents
0% 10% 20% 30% 40% 50% 60% 70% 80%
○ 2014 ○ 2013
Are your key suppliers strategically aligned with you?
Are you seeking to achieve the same things?
Are your key suppliers culturally aligned to you?
YES
NO
DON'T KNOW
Do you hold similar values, and want to work and behave in the same way?
© 2014 State of Flux
Difficult questions to answer. Even more so if we are not asking the questions and gathering information to first identify any misalignment, and secondly act to address it. In 2013, we found that only 18% of respondents were using any kind of 360° relationship assessment tool to gather information on how strategically and culturally aligned they were with their key suppliers. This year a significantly higher proportion is reporting the use of a tool. However, at just 33% this still reflects a lack of curiosity in to the real nature of key relationships ( figure 6.8 ). It is evident in the feedback from leaders, fast followers and followers that the use of this tool is far more prevalent and represents a basis on which to develop more aligned relationships ( figure 6.9 ).
Figure 6.9. Companies using a 360° relationship assessment approach – leaders / fast followers / followers
○ YES ○ NO ○ DON’T KNOW
0% 10% 20% 30% 40% 50% 60% 70% 80%
LEADER
FAST FOLLOWER
FOLLOWER
© 2014 State of Flux
TRUST
Trust is very hard to measure. It is something that is either won or lost as a result of actions. Trust is reflected in a number of the key components of SRM. For example 93% of our respondents indicated that establishing trust was an important part of SRM. Two other components of effective SRM are openness and transparency and collaboration. Neither of these can exist without trust. For example we can’t benefit from sharing information more freely if we don’t trust the information, and we can’t collaborate effectively if we don’t trust our collaborators or feel they are unreliable.
Trust is acknowledged as the key component in successful relationships. Through our ongoing dialogue with both buy and sell side companies, it is evident how important trust is. Both parties want to be able to trust the other. Therefore this can only come about if both parties are not only trusting (of the other) but also trustworthy (reliable). Trust needs to be built at both the personal and corporate level. The ability to build and maintain trust was identified as an important skill for SRM by 74% of respondents. However, only 10% have undertaken any training and development to build the capability.
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