134
Figure 6.6. The most important factors in the success of an SRM approach, top five aligned – buy side / sell side TRUST
Strategically and culturally aligned
COMMUNICATION
TRANSPARENCY AND HONESTY
CULTURAL ALIGNMENT
The process to achieve more strategic and cultural alignment starts with gaining a better understanding of the goals, values and culture of both organisations. Our analysis opposite shows a shared view of the most important factors that are likely to make SRM a success. Both sides were asked to rank the rela- tive importance of factors most likely to influence the success of SRM. Opposite we see the top five factors where buy and sell side opinion was most closely aligned and five where opinion differed the most. In the areas where opinion differed the sell side believed that personal relationships, reciprocity and rela- tionship continuity were more important. The buy side considered effective governance and executive sponsorship to be more significant. Over 80% of all respondents on both buy and sell side, considered all the factors to be either important or very important. Another facet of strategic and cultural alignment is to understand what both parties value in the relationship. Historically it has been the tendency to define what the customer is looking for from the relationship with less emphasis on what the supplier values. This question looks at both what the buy side believe is valued by their suppliers and compares this to what the sell side tell us they actually value. What we see is good alignment across nearly all the attributes. It’s interesting to note that the attribute showing the largest perception gap is ‘payment in line with agreed terms’ where the sell side do not appear to value it quite as much as the buy side think they do .
INFORMATION SHARING
Figure 6.7. The most important factors in the success of an SRM approach, five least aligned – buy side / sell side
PERSONAL RELATIONSHIPS
RECIPROCITY
RELATIONSHIP CONTINUITY
EFFECTIVE GOVERNANCE
EXECUTIVE SPONSORSHIP
Figure 6.8. What suppliers value from relationships – buy side / sell side
■ BUY SIDE ■ SELL SIDE
OPENNESS SHARING INFORMATION
TRUST TRUSTWORTHINESS
COMMUNICATION CLEAR,CONCISE AND TWO WAY
1
PAYMENT IN LINE WITH AGREED PAYMENT TERMS
CONTINUITY LONG TERM STABILITY
EXECUTIVE ENGAGEMENT
FAIRNESS EQUITABLE SHARE OF RISK AND REWARD COLLABORATION RANGE OF COLLABORATIVE ACTIVITIES, INCLUDING PROBLEM SOLVING, PLANNING AND DEVELOPMENT, ETC. DECISION MAKING CLARITY AND SPEED
INNOVATION WILLING TO SERIOUSLY CONSIDER SUPPLIER INNOVATIVE IDEAS
ALIGNMENT SHARED VISION AND OBJECTIVES
BRAND ASSOCIATION WITH A PRESTIGIOUS BRAND
GOVERNANCE CLEAR GOVERNANCE, ROLES AND RESPONSIBILITIES
0% 5% 10% 15% 20% 25% 30%
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