A partner makes a “ deposit ” in the “ trust account ” when they do something unselfish , when they give up profit or status or a seat at the table to help their partner .
A business partnership , like marriage , requires openness , compromise and listening , and if one partner doesn ’ t tell the other partner when things upset them , things can quickly escalate and go in the wrong direction . For this reason , we would highly recommend that partners meet regularly to share their feelings and talk honestly about how they are communicating and how they can better understand each other ’ s needs . ish and evolve so they can manage great businesses and even better relationships .
Manage is a key word here . Many partners assume ( or at least act like ) their relationship will take care of itself as they focus on other things . But we suggest that every group , no matter how large or small , needs to spend some time managing it .
The Necessary And Sufficient Conditions
Most people assume that a partnership will work very much like a good friendship . We know from experience this isn ’ t the case . There were times when our friendship was strained and when we didn ’ t agree about business decisions . But even in those times , we never doubted each other as partners . In fact , we propose that you don ’ t need to be close friends . But you absolutely need three necessary and sufficient conditions : trust , respect and honest communication .
• Trust means you don ’ t doubt the motivation of your partner . That you never have to “ watch your back ” worrying a partner will take advantage of you . It means that even when we disagreed with each other , we knew the other person was trying to achieve the same goal , which was to make our business better . This always allowed us to “ fight ” over the issue at hand rather than fight each other . We also believe that the opposite is true . Without trust , there simply cannot be a good relationship .
Trust isn ’ t something you turn on or off . It is more like an account that either has a high positive balance ( the ideal ) or a low balance that can easily go into overdraft . A partner makes a “ deposit ” in the “ trust account ” when they After you have established trust ,
Partnership ‘ Skills ’
do something unselfish , when they give communication and respect , there are up profit or status or a seat at the table a few “ skills ” you can bring to a good to help their partner . A deposit is made partnership . when a partner takes on responsibilities • A spirit of camaraderie . This means they did not need to , when they rush you can cheer for each other and enjoy to help someone who is struggling or each other ’ s company both in the office when they “ take a hit for the team .” and out . We encourage the partners we
A “ withdrawal ,” meanwhile , is a selfish act or behavior . An act of disregard . some experiences that bring them clos-
coach to get out of the office and share
It is a failure to control your own emotions or words that causes your partners two of us , it meant doing everything
er and aren ’ t about the business . For the to be uncomfortable or hurt . from skiing to mountain biking to lots
The “ trust account ” needs to be managed actively . Every partner needs to re- while enjoying ice cold beers and buffalo
of late nights brainstorming at a bar
member to make deposits , because some wings . It ’ s been proved that doing something fun , or something that makes you withdrawals simply cannot be helped . Such is life and such is business . a bit more vulnerable , can also help you
• Respect means you rely on the expertise of your partners and see their moments and fun times , you create an
build trust . By sharing those “ high five ”
decisions through with the underlying incredible bond . assumption they know what they ’ re doing . So if Philip observes Stuart doing way .” This is a quote from Gen . George
• “ Lead me , follow me or get out of the or saying something he doesn ’ t understand , Philip perceives it first with the commander , and we fully embrace the
S . Patton , the famous World War II
notion : “ He must have a reason to do principle . Too many partnerships end this ,” instead of thinking , “ He is wrong . up in conflict because there aren ’ t clearly defined parameters for which partner
I need to stop him .” Respect requires confidence in the does what , and who the ultimate decision-makers should be in different areas . competence of your partners — and not just professional competence . You must Businesses are built on decisions and actions , and even though the answers ar- also believe your partner will use their moral judgment well . They won ’ t just en ’ t always 100 % clear , decisions have to make good business decisions . They ’ ll be made , trusted and acted on . So it ’ s a also do the right thing . vital partnership skill to know whether to make a decision yourself or to get
• Communication is critical in any relationship . If you don ’ t voice concerns out of the way and let your partner do or if you aren ’ t transparent about the it . Sometimes you lead , sometimes you things that bother you , it can lead to future conflict , distrust and pent-up anger . Continued on page
follow . But no partner should ever be
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