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Trust Me! Customer-Supplier Relationships Café Stephen Hacker ‘B Team’ 2006 Customer-Supplier Symposium February 2, 2006 1 Supply Chain Management Trends Electronic Commerce Explosion! Competition and Globalization Better, Faster, Cheaper! Relationship Management Requires great deal of interaction and trust between companies Technology gains are inconsequential without cooperation Most difficult and subject to breakdown 2 Supply Chain Relationships 3 Value of Trust? 4 Knowledge-based Trust Past experience Exposure over time Relationship development Frequent interaction Consistency, Commitment, Capability 5 Time Reducing the Time Factor-• Four lessons from social psychology research*. –Trust building. –Non-authoritarian. –Outcome based. –Easy to learn. * Robert B. Cialdini (Arizona State University) 6 Liking- Making friends to influence people. • People easily like those who like them. • Uncover real similarities and offer genuine praise. – Similarities – Areas for genuine compliments – Opportunities for cooperation 7 Social ProofPeople Proof, People Power. • People follow the lead of others that are similar. • Use peer power whenever it’s available. • Unleash people power by showing: – Responses of many others – Others’ past successes – Testimonials of similar others 8 Reciprocation- You, then me, then you, then me…. • People repay in kind. • Give what you want to receive. • Be the first to give: – Service – Information – Concession 9 Scarcity- People value most what is difficult to get. • Give FIRST what is difficult to get– give what is valued: –Time –Help –Information –Service –Product –Expertise 10 Ethical Implications 11 The “Trust” Café Menu 1. 2. 3. What constitutes a “breach of trust” from a customer? From a supplier? If trust has been lost, what actions can be taken to build back the relationship? Is it always possible to build back a relationship? Are there ethical issues with using the lessons of social psychology in enhancing our Customer-Supplier relationships? If so, what would constitute an ethical breach? What do transformational relationships look like and how can we produce these deep levels of trust-based relationships within a short period of time and often with barriers of both cultural and distance? Many would say that it is not possible to develop trusting customer-supplier relationships in today’s “faster, better, cheaper” environment? Does today’s globally competitive environment negate the ability to build trusting relationships or has Wal-Mart forever changed the nature of customer-supplier relationships? The lessons from social psychology have not been applied to customer-supplier relationships– can you provide an good example of how these lessons might apply? From your personal experiences, is there a new social psychology lesson that can be used to build trust quickly in customer-supplier relationships. 12 4. 5. Round 1 • Discuss the various questions posed on the Café Menu. • By the end of the Round pick one question you think would benefit most from additional exploration. • Write the question on the table with a “BOX” around it and on the blue paper to post in your table’s “question holder” for everyone to see. 13 Round 2 • Using the question/issue posed by the table… • Examine and discuss the aspects and implications of that question/issue. • Make a list of as many aspects of the question/issue as you can identify. Other questions might be identified as you discuss your topic. • Select the key aspects or further questions that you have identified on your table with circles around them. • Post them on your “question holder” for all to see. 14 Café Process Rounds 3 & 4: Each table identifies a “table host.” Everyone except table host moves to another table for each round. Responsibilities of the table host: Remain at the table and act as the steward for the table’s topic/question for further discussion. Greet visitors and help them to understand your table’s topic/question. Treat each visitor as a contributor to your topic/question. Remember that everyone (not just the host) is a scribe and records ideas and conversation highlights on the table paper, flipchart, and/or your personal post-it pad. 15 Round 3 • For each of the key questions/topics circled on your table, explore creative, powerful, and perhaps quick ways to: – – – – Solve the problem Create a benefit/opportunity Eliminate a risk Improve value/profitability 16 Round 4 – A Personal Round • You’ve now spent nearly two hours in the discussing various aspects of trust. You’ve explored, and heard what your colleagues think about this topic as well. You’ve challenged each other to think about how that to answer a key question related to achieving trust in customer-supplier relationships. 17 Round 4 All said, all considered… What are the three most significant personal take-aways from this time exploring the Trust questions/issues? Please write those key take-aways on the flipchart page at your table and place them in the Gallery. 18 Summary and Gallery Walk • Review the key take-aways of your colleagues. Make connections if you observe them. Look for themes to surface. Patterns maybe. • If you have any additional key personal insights not represented in the gallery, write these on Post-It notes and post to the gallery. • Walk through the whole gallery taking in the contributions of others, as well as a sense of the whole. 19 Full Group Dialogue • Pareto’s Top 20 (aka - The Harvest) • What “aha’s” did you get from the exploration of questions related to achieving Trust in customersupplier relationships? 20
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