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Companies of all sizes around the world looking to re-engineer their relationships with suppliers, customers, alliance groups, competitors and other third-party stakeholders should consider the following action points:

l. Look beyond cost control. For critical business relationships, companies must think of ways to enhance revenue and foster innovation with their partners while simultaneously controlling costs. By sharing the rewards and the risks of collaboration, business relationships are likely to last longer and be more valuable to both sides.

2. Find ways to build trust. As the adage goes, trust takes a lifetime to build and just one moment to destroy. True partnership entails a high degree of visibility and transparency between companies. To build confidence more quickly, partners should create a plan to reveal small amounts of key information, progressively offering more and more insights to the point where each side fully understands the others’ strengths and weaknesses.

3. Build a skills network. Select partners that can provide expertise in areas that are lacking at your company, or significantly enhance existing capabilities. At the same time, look for partners that need your know-how, and encourage employees to assist partners in achieving mutually shared business goals. Doing this will reinforce mutual dependency, as well as enable corporate partners to act smarter than if they were on their own.

4. Share technology. Use technology to connect people and systems to share information quickly and securely in a more collaborative business environment. The more that technology facilitates communication between partners, strengthening personal relationships and trust, the more valuable it will become for business networks in delivering superior products and services to customers.

5. Invest and invite. A collaborative network is a long-term process, built on investing in personal relationships, trust and technology. The best networks are the ones that continually grow by attracting additional business partners that have access to more markets.

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