Collaborate to Win

No one can do it all and all of us are smarter than one of us. No matter how large your company may be, it’s practically impossible to possess all the required competencies for success within one organization. While this notion may be a reality it is certainly not limiting to your growth. With more and more expertise being outsourced, many companies possess characteristics of a ‘virtual’ organization. How do you organize and operate to realize the full and profitable benefits given this condition?

Cooperation cannot be restricted to a small group of loyalists; it must include peers, managers, customers, suppliers and citizens- all those who have a stake in the vision and mission. The concept of citizens can encompass the local population in terms of the available labor force, or environmental issues, for example.

It can also envelope a wider scope, such as governments that deal with trade issues.

The apparel industry companies in Central American countries who participate in DR-CAFTA (Dominican Republic, Central America Free Trade Agreement) have been able to successfully coordinate economic activities among companies and with their governments. They have worked harmoniously to attract the significant investment of needed textile mills in the region. Local trade associations aligned the efforts of apparel factories, governments and financial institutions to promote and deliver economic value in their countries.

Greco Apparel sources a significant portion of its manufacturing in the Dominican Republic. As a counter example, the Dominican Republic has not, until recently, had a coordinated effort focused on increasing business. I am not sure why but suspect that internal politics has played a huge role. Probably for political and economic motivations outside the apparel industry, the forces of the apparel companies and government have not been coordinated or directed. I am glad to report that this has changed in recent months. Representatives of some major factories have spent much time in meeting with President Leonel Fernandez with some positive results. A Brazilian company is reportedly prepared to establish a denim mill in the northern part of the country.

In order to take advantage of the opportunities from collaboration, the first thing many of us need to change is our mind set. The classic ‘command and control’ style that evolved from the organizations of the industrial revolution just doesn’t get the expected results in the modern world. People are more educated and sophisticated today. Leaders must work to enable their people by making them feel strong, capable and committed. .It may seem paradoxical, but you enable others not by hoarding power but by giving it away.

Your work as a leader is to strengthen and support the worker’s capacity to perform as promised and agreed by recognizing the following: When people are trusted and have more decision-making ability delegated to them and are given timely and necessary information, they are more likely to use their energies to deliver exemplary results. The old mushroom philosophy of management (keep them in the dark and feed them dirt) just doesn’t work that well any more. You have to let go of your fears if you haven’t yet. Trust is one of the keys.

Collaboration improves performance. Successful leaders must focus on creating value for their customers. That’s one thing that has not changed in business. Without satisfied clients or customers no business exists for very long. Adopt this core strategy to focus your efforts as opposed to worrying about your competition. People often ask me who my competition is. I stumble trying to answer this because it’s not my focus. I am trying to improve the performance of Greco Apparel so our clients are delighted (part of our mission statement.) Opportunities abound for organic growth within our current client base. We can bring value by producing additional product lines or manufacturing globally as required to support our client’s needs. Sure the prices need to be competitive and often I see my client as our biggest competition if. If our clients are not satisfied they will be forced to seek alternative sources of supply.

Remember that successful collaboration extends to all stakeholders in the supply chain, including your vendors and customers. Good client partners will discuss openly and clearly their requirements for delivery, quality and services. It always helps to have a very clear target to hit. Part of your task as a vendor is to be sure to fully understand the demands for performance. Spend time asking questions about your prior performance and what other vendors did not do well. Try asking this leading but revealing question. “What circumstances would need to be true in order for us to do business together?” You may be surprised at the answers but your client has now been given the license to reveal his or her wish list.

To foster collaboration, leaders need to focus on three areas, as we learn from Kouzes and Posner in The Leadership Challenge. Leaders should skillfully create a climate of trust, facilitate positive interdependence and support face to face interactions. People are freer to contribute and innovate when controls are removed. Trust will be enhanced as people demonstrate they can perform as expected. This will take some guidance as they may not be competent at all tasks assigned. Be careful to analyze results on the basis of demonstrated performance on a per task basis. A manager should give increased guidance or training where required until competency and performance can be at a reliable level. This increased trust will lead to both better performance and less time required on the part of the manager. The benefit is increased productivity at the manager’s level and should translate to improved company performance when all managers allow the same positive effect to occur.

To benefit from positive interdependence, develop cooperative goals and roles. Support and encourage team work where all are pulling in the same direction for achieving common objectives. Communicate openly about your purpose and allow discussion so that buy-in is natural and not manipulated. Be sure to structure tasks so the each person’s job makes a meaningful contribution toward the desired results. This will take regular follow up so don’t expect to get it perfectly right on the first go round. Adjustments are acceptable. Failure is not. Think about and discuss your norms for reciprocity, mutual respect and fairness, among the stakeholders. This will strengthen relationships by promoting stability and predictability. Take time to discuss the process and identify the opportunity for improvements in team performance.

With virtual organizations people are typically in disparate locations. Arrange to have regular face to fact meetings. Although much can be accomplished through email and telephone, nothing replaces direct personal interactions. Much can be learned through observing body language and facial expressions which are characteristics only observable in person. Unless you are fortunate enough to have teleconferencing, which should surely help but is expensive, I suggest you plan to meet in person. The opportunity then exists to learn much from added social interactions that can certainly enhance better understanding.

The essence of collaboration within your organization and with the supply chain, up and down – clients to vendors, is the achievement of the multiple ‘win’ benefit. By enabling an environment that will work openly and honestly with your associates and vendor partners increased profitability will be realized. Think about what it costs to do things incorrectly due to lack of coordination. There are businesses that make much money not just from increased sales but by avoiding unnecessary expenses or paying consultants to identify areas for change. We can all think of examples from our own experiences.

Joseph Greco is president of Greco Apparel. Visit them on the web at www.grecoapparel.com