establish and maintain a business relationship

ESTABLISH AND MAINTAIN A BUSINESS

RELATIONSHIP

D1.HCS.CL6.02D1.HSM.CL5.05 D2.TCS.CL5.15

Slide 1

Establish and maintain a business relationship

This unit comprises four Elements:

Establish and conduct business relationships

Conduct negotiations

Make formal business agreements

Foster and maintain business relationships.

Slide 2

Assessment

Assessment for this unit may include:

Oral questions

Written questions

Work projects

Workplace observation of practical skills

Practical exercises

Formal report from employer or supervisor.

Slide 3

Establish and conduct business relationships

Performance Criteria for this Element are :

Establish business relationships in a manner that promotes goodwill and trust between the enterprise, its customers and suppliers

Build trust and respect in business relationships

Identify and take up opportunities to maintain regular contact with customers and suppliers.

Slide 4

Establish business relationships

Establishing and maintaining good business relationships is vital – relationships may need to be created with:

Customers (also known as patrons, clients or pax):

• Corporate

• Government

• Private

• Sectors.

(Continued)

Slide 5

Establish business relationships Customers can be classified by demographic

characteristics:

• Gender

• Age

• Religion

• Income

• Marital status

• Domestic or international.

(Continued)

Slide 6


Customers may also be identified & classified as:

Regular customers

New customers

Potential customers

Prospects.

Slide 7


A business relationship may also be developed with suppliers including:

Wholesalers

Retailers

Combined wholesale-retailers.

Slide 8

Establish business relationshipsBusiness relationships will also exist with ‘strategic partners’ – these are deliberate partnerships with other businesses to:

Capitalise on a logical link between the partners

Gain some operational advantage

Engage in mutually beneficial promotions, advertising, campaigns

Save money and/or increase sales or profit.

Slide 9


Relationships may also occur with finance companies:

Banks

Financial institutions.

Slide 10


Relationships are also important with other businesses with whom you have:

Service contracts

Commission-based arrangements

Association-based links.

Slide 11


There will always be a relationship between the business and its employees – addressing issues such as:

Remuneration

Working conditions

IR issues

Insurance

OHS.

Slide 12


Business relationships with ‘industry bodies’ are also common:

Government agencies and authorities

Unions

Peak industry bodies.

Slide 13

Establish business relationshipsThere is need to develop a business relationship with:

Local council

Local offices of government agencies and authorities.

Slide 14

http://www.sxc.hu/browse.phtml?f=download&id=1365122


Business relationships can be initiated:

By you making contact with the ‘other party’

By the ‘other party’ making contact with you.

Slide 15


‘Goodwill’, ‘trust’ and ‘respect’ are vital to business relationships.

Goodwill = positive feelings towards the business as a result of:

Positive community involvement

Its ethical behaviour

Gifts given

Public statements and commitments

Its observable behavior (‘track record’).

Slide 16


Build trust and respect‘Trust’ in a business relationship:

Refers to the ability of parties to believe you

Is a result of actions – not promises

Is a result of doing everything that was promised.

Slide 17

Build trust and respectBasic pre-requisites for developing trust in a business relationship:

Be careful about what you promise

Under-promise and over-deliver

Read things before you sign them.

Slide 18

Build trust and respectActions to foster trust in you include:

Follow-up on all promises made

Honour promises made

Tell others about the ‘bad’ bits too – never just promote the positive aspects of a product, service, deal or package

(Continued)

Slide 19

Build trust and respect

Give customers what they are entitled to

Advise them about issues relevant to their needs, wants, preferences, constraints and/or circumstances

(Continued)

Slide 20

Build trust and respect Maintain confidentialities

Charge the prices quoted

Be honest with suppliers.

Slide 21


‘Respect’ = the regard for others – it can be demonstrated by displaying:

Consideration for them

Politeness and civility

Getting to know them and their needs, wants and preferences

(Continued)

Slide 22

Build trust and respect Providing deferential treatment

Showing appreciation for their time

Valuing their custom and the opportunities they represent

Never taking them for granted

(Continued)

Slide 23

Build trust and respect Identifying and showing regard for individual differences

Demonstrating ‘nothing is too much trouble’

Understanding every person is a unique individual

Proving you want to be of service

(Continued)

Slide 24


There is a need to demonstrate respect and trust on an on-going basis:

Using the person’s name

Being punctual

Maintaining a professional distance

Paying attention non-verbal cues

Avoiding judgement.

Slide 25

Maintain regular contact

Opportunities for regular contact must be actively sought out and then used – they may include:

Informal social occasions:

• Meetings

• ‘Get togethers’

• Parties

• Business events.

(Continued)

Slide 26



All ‘social occasions’ provide an opportunity to:

Make new contacts

Reinforce existing contacts

Learn new information.

Be prepare to:

‘Network’

Slide 27



Take business cards Wear a name tag Determine who you want

to make contact with Take pen and paper.

Slide 28

‘Industry functions’ (product launches and exhibitions) are opportunities to make contact – plan your attendance:


Introduce self, wear name tag and hand out business cards

Offer to participate in activities

Volunteer for office bearer.

Slide 29

Membership of industry associations is a useful way of making and maintaining contact:

Maintain regular contactCooperative promotions provide contact opportunities and can be based on activities such as:

Slide 30

Sharing market research

Sharing promotional costs

Offering packages and deals

Taking bookings and payment for others.


Cooperative promotions relationships demand:

Honesty

Total disclosure

Hard work

Regular contact

Mutual support.

Slide 31


The telephone is vital in business relationships - it:

Is inexpensive to use

Allows regular contact

Requires a schedule of calls to be truly effective.

If people indicate they do not want to be phoned - do not phone them!

An attempt to call is not the same as talking to them on the phone.

Slide 32


Topics for discussion when making contact:

General comments about yourself, work and family

Advice about new information, products, offers, packages and deals

General enquiries about them, their business and family

Undertakings and promises made

Answers to questions asked.

Slide 33


Never raise or talk about:

Sex

Religion

Politics

Jokes

Other people or businesses.

Slide 34

Summary – Element 1

When establishing and conducting business relationships:

Ensure all potential and required businesses, bodies and individuals are identified

Know why the relationship is necessary

Meet or make contact with a person as distinct from an organisation or enterprise

Generate and maintain goodwill

(Continued)

Slide 35

Summary – Element 1 Build trust and respect in the relationship and sustain

these on an on-going basis

Search for and take advantage of opportunities to maintain regular contact

Establish and adhere to a regular contact schedule

Share information.

Slide 36

Conduct negotiations

Performance Criteria for this Element are:

Conduct negotiations in a business-like and professional manner within the relevant cultural context

Conduct negotiations in the context of the current enterprise marketing focus and within legal and ethical considerations

(Continued)

Slide 37

Conduct negotiations Maximise benefits for all parties in the negotiation

through use of established negotiation techniques

Incorporate feedback and input from colleagues into the negotiation where appropriate

Communicate the results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes.

Slide 38

Conduct negotiations in a business-like and professional manner‘Negotiations’ are part of most business relationships - they:

Must be conducted in a correct manner

Must accommodate cultural contexts

Are the best way to resolve differences

Should achieve a win-win outcome

Require compromise.

Slide 39

Conduct negotiations in a business-like and professional mannerNegotiations may relate to:

Corporate accounts (B2B relationships)

Service contracts

Agency agreements

(Continued)

Slide 40


Conduct negotiations in a business-like and professional manner Venue contracts

• For services provided.

Rate negotiations – which must reflect:

• Reliability

• Quality

• Availability

• Overall considerations.

(Continued)

Slide 41


Conduct negotiations in a business-like and professional manner

Marketing agreements

Preferred product or provider agreements.

Slide 42


Conduct negotiations in a business-like and professional mannerNegotiation is:

'A process in which two or more parties confront a problem and arrive at a solution which best meets the needs of all of them‘.

Slide 43

Conduct negotiations in a business-like and professional mannerTo be effective in negotiation you need:

Good preparation:

• Get the facts

• Know the other party.

Knowledge of your goals and limits

(Continued)

Slide 44

Conduct negotiations in a business-like and professional manner A calm mind and a calm approach

Good listening and communication skills

Knowledge of the relevant cultural context

Knowledge of how to close a deal.

Slide 45


Conduct negotiations in a business-like and professional mannerBefore negotiating you must be able to answer all the following:

What are venue or department needs?

What is required (‘bottom line’) as a result of the negotiation?

When will you walk away?

What are the needs of the other party?

Slide 46

Conduct negotiations in a business-like and professional mannerNegotiating ‘rules’:

Sit-in on other negotiations:

• Listen

• Watch

Be business-like

Try to get initial about the agenda

Try to get agreement about required outcomes

(Continued)

Slide 47

Conduct negotiations in a business-like and professional manner Deal with easily agreed small issues first

• Shows willingness to negotiate or compromise.

Take notes during the negotiation:

• Refer to them during the negotiation

• They are useful after the negotiation.

(Continued)

Slide 48

Conduct negotiations in a business-like and professional manner Apply listening skills Use appropriate questioning techniques Monitor body language Be assertive Monitor and give feedback(Continued)

Slide 49

Conduct negotiations in a business-like and professional manner Use appropriate timing for statements, questions &

responses

Present in a logical sequence

Be persuasive, not forceful

Note perceptions of power within the negotiation.

Slide 50

Conduct negotiations legally, ethically and in contextAll negotiations must:

Reflect needs for the business as stated in:

• Business plans

• Marketing plans.

Align with legal requirements

Reflect ethical considerations.

Slide 51

Conduct negotiations legally, ethically and in contextTo optimise likelihood of attaining organisational objectives you need to have answers to the following:

What are the business aims and objectives and goals?

Is a new market being targetted?

Is a new sector being targetted?

What are your personal operational parameters?

Slide 52

Conduct negotiations legally, ethically and in context What discounts or incentives can be offered?

What specials or deals can be made?

What alterations to existing offers can be made?

What target markets are being targetted at this time?

(Continued)

Slide 53

Conduct negotiations legally, ethically and in context What image or market position is being sought?

What are the department objectives? (as distinct to venue goals)

What are others in your business offering to their customers and prospects?

Slide 54

Conduct negotiations legally, ethically and in context

Be alert to the fact ‘Change is Constant’:

Products, services and facilities available can and will change throughout a year or over time

Customers change over time

Seasons change

‘Special events’ occur regularly.

Slide 55


You must ensure negotiations comply with all legal requirements – as imposed by:

Legislation

Regulations.

Slide 56

Conduct negotiations legally, ethically and in contextTo identify your legal obligations:

Speak to supervisor or manager

Talk to more experienced staff

Contact relevant authorities

Visit authority websites

Ask questions of industry and employee or employer associations.

Slide 57

Conduct negotiations legally, ethically and in contextFailure to comply with legislated obligations can result in penalties to the venue and individual staff:

Warning

Fine

Imprisonment

‘Order’ – to act, or refrain from action

Business closure.

Slide 58

Conduct negotiations legally, ethically & in context

Businesses must also meet ethical constraints/requirements – which can result from:

Public ‘organisational statements’ made by the business

Company policies & procedures

Directives from head office

(Continued)

Slide 59

Conduct negotiations legally, ethically and in context Codes of Practice and or Codes of Conduct –

addressing:

• Business practices

• Staff performance and actions

• Guarantees

• Commitments.

(Continued)

Slide 60

Conduct negotiations legally, ethically and in context Social and moral imperatives – for example:

• Protection of children

• The environment

• Cultural sensitivity

• Remuneration

• Purchasing of products.

Slide 61


Breaches of ethical constraints may result in:

No legal action

Warning from relevant body

Termination of agreements

Expulsion form an association

Negative media publicity.

Slide 62

Maximise opportunities using established techniquesNegotiations must:

Maximise the outcomes for both parties

Accept a failure this time may result in success next time.

Slide 63

Maximise opportunities using established techniquesNegotiation tactics:

The other party walks out – you might:

• Ask them to return

• Re-frame statements

• Make new offers

• Try to find a compromise.

(Continued)

Slide 64

Maximise opportunities using established techniques The other party delays/stalls – you might:

• Use this time positively

• Seek a compromise

• Seek clarification.

(Continued)

Slide 65

Maximise opportunities using established techniques If other party sets limits – you might:

• State and explain why these are unacceptable

• Give your limits

• Have a frank discussion on the issues

(Continued)

Slide 66

Maximise opportunities using established techniques If there is a deadlock – you might:

• Claim you do not have the authority to do or offer more

• Say you will need to refer the deadlock to a superior

• Use the ‘bought’ time to re-think the situation and or generate a different proposal or counter-offer.

(Continued)

Slide 67

Maximise opportunities using established techniques If the other party keeps silent – you might:

• Ask questions

• Ignore the silence

• Respond with silence.

(Continued)

Slide 68

Maximise opportunities using established techniques If a personal attack is made – you might:

• Ignore it

• Walk out.

(Continued)

Slide 69

Maximise opportunities using established techniques If other party overloads the discussion with information

– you might:

• Accept it, summarise it and return to the main topic

• Ignore if (politely) and revert back to the main topic.

(Continued)

Slide 70

Maximise opportunities using established techniques If other party switches from general to specific and then

from specific to general – you might:

• Stick to the point.

(Continued)

Slide 71

Maximise opportunities using established techniques If the other party acts ignorant – you might:

• Ask questions to determine level of knowledge

• Provide base information.

(Continued)

Slide 72

Maximise opportunities using established techniquesFurther negotiation techniques:

Identify goals and limits

Clarify needs

Identify points of agreement and difference

(Continued)

Slide 73

Maximise opportunities using established techniques Demonstrate research undertaken – of the facts

Use appropriate language

Use appropriate non-communication

(Continued)

Slide 74

Maximise opportunities using established techniques Bargain with the other party – ‘this for that’

Develop options

Be cultural appropriate and respectful

Confirm agreements.

Slide 75

Maximise opportunities using established techniquesTo maintain business relationships:

Stay in touch with clients you have lost

Follow-up after customers have used the service – show interest and get feedback: address any problems.

Slide 76


Incorporate feedback/input into negotiationsA team effort is often required in negotiations – the ‘team’ may include:

The other party

Specialist staff member or co-workers

Management.

Slide 77

Incorporate feedback into negotiationsAll information used in negotiations must be comprehensive, accurate and current:

Comprehensive

Accurate

Current.

Slide 78


Incorporate feedback into negotiations

Information must be comprehensive, accurate and current because:

It is the basis of ‘the deal’

Providing insufficient, poor, dated or wrong information is highly unprofessional

The other party will use it to make a decision

There are potential legal implications for providing misleading or false information.

Slide 79

Incorporate feedback into negotiationsInformation provided by colleagues to assist with negotiations may include:

History about previous dealings with the client

Factual information, details and data

(Continued)

Slide 80


Historical information

Practical help by trialling the proposed negotiation to see what works, and what does not.

Slide 81

Incorporate feedback into negotiationsFeedback from the other party:

Must be continually sought

May be positive

May be negative.

All feedback is good – even ‘negative’ feedback.

‘Feedback is the breakfast of Champions’

Slide 82


Feedback may be verbal or non-verbal – pay attention to:

What is said

How it is said

Body language

Facial expressions

Whether or not the body language matched or were different to the spoken words.

Slide 83

Incorporate feedback into negotiationsIt is vital to use feedback from the other party in negotiations – keys are:

Thanking the person for their feedback

Clarify (if needed) understanding of the feedback

Reflect on it

Act on the feedback.

(Continued)

Slide 84

Incorporate feedback into negotiations Always stay within your scope of authority

Work through unreasonable and inaccurate feedback with the other party – stand your ground explaining your reasons for believing the feedback is unfair or wrong

Learn from the experience.

Slide 85

Incorporate feedback into negotiationsWhen providing feedback as part of the negotiation process:

Be positive and constructive

Ensure feedback is fact-based – as opposed to opinion-based, or a result of personal judgements

(Continued)

Slide 86

Incorporate feedback into negotiations Respect feelings of other person or party

Give feedback promptly

Offer feedback only on items and issues that can be changed.

Slide 87

Communicate results of negotiationsWhen negotiations have concluded, ‘others’ may need to be advised:

‘Within designated timeframes’

As soon as possible

Within seconds of the deal being signed.

Slide 88

Communicate results of negotiationsCommunication options:

In person, face-to-face

By telephone

Via email.

Slide 89

Communicate results of negotiationsYou may need to communicate with:

Anyone who had involvement in the process

Owners and or management-level personnel

Support departments and staff

Head office

Operational staff who will be impacted or involved.

Slide 90

Communicate results of negotiationsWritten reports on negotiations should address:

Names of those involved

Basic issues involved

Attempts to satisfy and resolve issues

Reasons attempts to satisfy and resolve failed (were rejected)

(Continued)

Slide 91

Communicate results of negotiations Figures and statistics

Statement about venue or department desired or preferred outcome

Details of final offer made

Result or outcome of final agreement

Notifications

Lessons learned

Recommendations for future action.

Slide 92


When conducting negotiations:

Act in a business-like & professional manner Realise the outcome of a successful negotiation is a

win-win result Do the necessary research & preparation prior to the

negotiation process Involve others in the planning & preparation(Continued)

Slide 93

Summary – Element 2 Know your limitations for negotiating and never exceed

them Prepare a plan, know the plan and stick to the plan to the

greatest extent possible Use appropriate communication skills Align the negotiation with workplace demands and focus(Continued)

Slide 94

Summary – Element 2 Ensure all negotiations occur within legal and ethical

constraints Use established negotiation techniques but seek a

positive outcome for all parties Be flexible and be prepared to amend offers to reflect

emerging need, changed circumstances and varying requirements

(Continued)

Slide 95

Summary – Element 2 Use feedback from others to plan and guide the

process Communicate the outcome or results of negotiation

promptly and comprehensively to designated persons according to internal requirements.

Slide 96

Make formal business agreementsPerformance Criteria for this Element are:

Confirm agreements in writing using formal contracts where appropriate and in accordance with enterprise requirements

Check and gain appropriate approvals for all aspects of formal agreements in accordance with enterprise procedures

Identify the need for, and seek, specialist advice in the development of contracts where appropriate.

Slide 97

Confirm agreements in writingAfter negotiations, most agreements are ‘reduced to writing’:

Not all agreements are put in writing – many are legally enforceable ‘verbal’ agreements or contracts

Written agreements/contracts remove confusion about terms and conditions and give clarity to all

The services of a solicitor may be used

You, or a colleague from your venue can write the agreement or contract.

Slide 98

Confirm agreements in writingContracts:

Are agreements enforceable at law

Parties agree to do (or not do) something

Most are ‘simple’ contracts.

Slide 99

Confirm agreements in writing

Six elements of a valid contract:

Intention to create legal relations

Agreement

Consideration

(Continued)

Slide 100


Capacity

Certainty of terms

Legality of objects.

Slide 101

Confirm agreements in writingIf one or more elements of a valid contract is missing, the contract may be:

Void

Voidable

Unenforceable

Illegal.

Slide 102

Confirm agreements in writingIn relation to contracts:

Parties need to be certain about the contents of the contract

Parties must consent to the contents, terms and conditions

The contract or negotiation must not involve:

• Mistake

• Misrepresentation

• Duress

• Undue influence.

Slide 103

Confirm agreements in writingThere are four kinds of ‘mistake’:

Common mistake

Mutual mistake

Unilateral mistake

‘Non est factum’ (‘it is not my deed or option’).

Slide 104

Confirm agreements in writingMisrepresentation can be:

Fraudulent misrepresentation – see following slides

Innocent misrepresentation:

• No intention to deceive exists

• ‘Damages’ will not be awarded as a consequence.

Slide 105

Confirm agreements in writingFraudulent misrepresentation:

A false representation of fact made with the knowledge it is false, or is a statement or representation made carelessly or indifferently without any real regard to what may be the true facts

Can result in the need to pay ‘damages’.

Slide 106


All following seven factors must be present or occur for fraudulent misrepresentation to be proven:

1. A false2. Fraudulent3. Representation4. Of fact5. Made by one person to another 6. With the object of inducing the other to alter his

position to his prejudice7. Which actually induces the other to alter his position to

his prejudice.

Slide 107


‘Silence’:

Does not mean agreement

Can amount, in certain cases, to misrepresentation.

Slide 108


‘Duress’:

Actual or threatened violence

Means the contract is voidable.

Slide 109


‘Undue influence’:

Is the improper use of power or influence

Can relate to offering bribes and or threats to disclose information protected by special relationships.

Slide 110

Confirm agreements in writingTopics discussed during negotiations can be distinguished as being either a ‘term of the contract’ or ‘mere representation’ related to the discussions:

A ‘term’ is central to the contract and gives rise to ‘breach of contract’ action

‘Mere representation’ is not part of the contract and does not give rise to breach of contract action (unless deliberately fraudulent).

Slide 111

Confirm agreements in writingCourts will identify if things are ‘terms’ or ‘representations’ based on:

The stage at which the crucial statement was made during the course of the transaction

The importance attached to the statement by the parties

The form of the statement Knowledge of the person making the statement.

Slide 112

Confirm agreements in writingIs the ‘term’ a ‘condition’ or ‘warranty’?

Courts make the distinction trying to identify the intention of parties when they contracted

‘Conditions’ go to the heart of the contract – remedy for breach of these terms includes suing for damages and treating contract as repudiated

‘Warranties’ are lesser terms – remedy for breach only allows damages to be claimed.

Slide 113


‘Exclusion clauses’:

Also known as ‘exclusion terms’

Seek to limit liability of one party in respect of the contract

Found in many standard form contracts

Courts commonly finding for the party to whom the exclusion clause is applied

You will be bound by exclusion clauses if they are contained in a contract you sign regardless of whether or not you have read the contract.

Slide 114


‘Privity’:

Provides rules relating to govern legal relationships (responsibilities and rights) under contracts

In general terms ‘Parties to a contract cannot confer rights, or impose liabilities, upon anyone but themselves’.

Slide 115


‘Discharging’ a contract can occur one of six ways:

Performance

Tender or Attempted performance

Agreement

(Continued)

Slide 116

Confirm agreements in writing Frustration

Breach

Operation of law.

Slide 117


Operations of law:

Merger

Material alteration to written document

Death

Insolvency

Losing of the contract.

Slide 118


Remedies for breach of contract:

Sue for damages

‘Equitable remedy’”

• ‘Specific performance’

• ‘Injunction’.

Slide 119

Check and gain appropriate approvals for formal agreementsBefore signing formal agreements they must be checked & approved by one (or more) of the following:

Owner or manager

Finance and accounting department

Department heads – as appropriate to the agreement

Sales and marketing department

Legal representative.

Slide 120

Check and gain appropriate approvals for formal agreementsIf approval is not given for a formal agreement, options include:

Re-negotiation

Withdrawal from negotiations and the proposed agreement.

Slide 121

Identify need for, and seek, specialist adviceFrom time-to-time specialist advice regarding contracts can be necessary in relation to:

Legal matters

Financial matters

Industrial relations matters.

Slide 122

Identify need for, and seek, specialist adviceSpecialist legal advice may be needed when:

Entering into a relationship with a new party Entering into an agreement that is a new area for your

organisation Legislation relevant to the agreement has changed The agreement involves a large sum of money(Continued)

Slide 123

Identify need for, and seek, specialist advice There is a degree of urgency associated with the

agreement The agreement involves a very high level of risk Where you are entering into a contract about something

where you previously experienced legal problems The project is a long or large one The nature of the agreement is such it is contentious,

risky or liable to be actioned.

Slide 124

Identify need for, and seek, specialist adviceSpecialist financial advice may be needed to:

Source funds

Determine alternatives for obtaining equipment

Identify financial planning imperatives.

Slide 125

Identify need for, and seek, specialist adviceSpecialist IR advice may be needed in relation to:

Preparation of employment instruments and work contracts

Determination of working conditions and pay rates

Establishment of dispute resolution protocols

(Continued)

Slide 126

Identify need for, and seek, specialist advice Resolution of IR issues and disputes

Staff recruitment and selection

Disciplinary matters

Clarification of roles and responsibilities

Legal compliance issues.

Slide 127

Summary – Element 3When making formal business agreements:

Realise many industry contracts are not put in writing – a handshake or verbal agreement is often the only agreement

Putting it ‘in writing’ is the preferred option as it reduces confusion and gives certainty about intentions

Ensure the contract is valid from a legal perspective

(Continued)

Slide 128

Summary – Element 3 Never make false statements or misrepresentations

when negotiation a contract or agreement

Avoid applying duress or undue influence when contracting

Strive to clarify ambiguities

Be certain about all terms and conditions, warranties and guarantees

(Continued)

Slide 129

Summary – Element 3 Realise signing a document commits you to whatever

is in the document or contract you have signed

Understand the penalties for failing to discharge your obligations under the agreement

Obtain approval and authorisation before entering into any agreement

Seek legal, financial and industrial advice when necessary.

Slide 130

Foster and maintain business relationshipsPerformance Criteria for this Element are:

Pro-actively seek, review and act upon information needed to maintain sound business relationships

Honour agreements within the scope of individual responsibility

(Continued)

Slide 131

Foster and maintain business relationships Make adjustments to agreements in consultation with

the customer or supplier and share information with appropriate colleagues

Nurture relationships through regular contact.

Slide 132

Maintain sound business relationshipsOpportunities to maintain relationships = those available to create them in the first place:

What are they?

You MUST be proactive.

Slide 133

Maintain sound business relationshipsResearch is also needed to maintain relationships:

Talk to your network of industry contacts

Keep an eye on the news in the media

Be observant about media advertising

Obtain relevant annual reports

Visit relevant web sites and opposition properties.

Slide 134

Maintain sound business relationshipsBenefits of fostering business relationships:

Personal friendships

Peer support

Chances to learn

Increased trade

More current information

Better access to better information.

Slide 135

Maintain sound business relationshipsIt is vital to use all information obtained about those with whom a business relationship exists to, for example:

Contact and congratulate them

Contact them and say you saw them in an article, on TV

Contact them and say you were talking to someone who knew and mentioned them

Contact them and make a revised offer or suggestion

(Continued)

Slide 136

Maintain sound business relationships Contact them and provide new materials

Make contact with a new person

Update internal files

Share information.

Slide 137

Honour agreements

Honour all agreements within personal scope of authority, which will be:

Be explained to you when you join a business

Be relatively small to begin with

Grow as your experience grows.

Slide 138

Honour agreements

In relation to individual scope of authority:

Fully understand limits and parameters

Never act outside your scope of authority

Failure to adhere to existing scope of authority guidelines can result in all scope of authority permissions being revoked (or dismissal).

Slide 139

Honour agreements

Failing to honour agreements may result in:

Reduced customer satisfaction

Harm done to trust and rapport

Feeling the business is self-focussed

Legal action

Negative publicity

No ongoing relationship.

Slide 140

Honour agreements

Honouring agreements also involves:

Meeting ethical business standards and expectations

Achieving KPIs as specified in the agreement.

Slide 141

Make adjustments and share information

Where there is a need to adjust an existing arrangement or agreement:

Apply appropriate interpersonal skills

Be clear about the changes required

A verbal agreement may be all that is necessary

Never make unilateral changes.

Slide 142

Make adjustments and share informationKeys when making changes to agreements or arrangements:

Clarify revised arrangements Determine if extra charges (or refunds) need to be

made Advise others (as necessary) about the revised

arrangements.

Slide 143

Nurture relationships through regular contactRelationships must be nurtured, fostered and cared for – keys are:

Regular contact

Effective communication.

Slide 144

Nurture relations through regular contactTips to ensure you nurture business relationships:

Prepare a contact schedule Set aside time each day or week to make contact with

important customers Diarise promises made Stay polite and respectful(Continued)

Slide 145

Nurture relations through regular contact Ask for permission

Use a variety of contact options

Respect contact preferences identified or requested by the other party

Be prepared to call back and try again

Talk about (some) non-work related topics

(Continued)

Slide 146

Nurture relations through regular contact Thank them

Meet with people in ‘out of work’ situations

Follow-up

Focus on the important things

Keep all promises made

Share the load

Review personal performance and adjust as required on the basis of feedback and or reflection.

Slide 147


When fostering and maintaining business relationships:

Understand the need to be proactive – never wait for the other party to make contact or nurture the relationship

Undertake research into identified important relationships to discover new or revised information

Use information discovered as the basis for making contact with other parties and communicating with them

(Continued)

Slide 148

Summary – Element 4 Contact others outside a strictly work context

Keep all contacts professional, polite and respectful

Honour agreements made

Adhere to individual scope of authority when dealing with others – or involve others where needed to make decisions/ and take necessary action as required

(Continued)

Slide 149

Summary – Element 4 Know the contents of all contracts and agreements so

you know what customers expect and are entitled to

Seek to meet (or exceed) customer expectations

Apply standard business ethics in all dealings

Be prepared to make adjustments based on issues arising and changes to customer circumstances

(Continued)

Slide 150

Summary – Element 4 Make regular contact

Use clear and effective communication

Review personal performance and adjust action accordingly.

Slide 151

establish and maintain a business relationship

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