Dealing With Differences: The Power of Goodwill To Drive Business Alliances

Is the business handshake making a comeback? The answer is a resounding Yes! Amid a global partnering boom the adversarial approach has been relegated to the passenger position. Alliance seeking executives are doing the deals. The value of business goodwill is back in the driver’s seat.

Partnership-based economic goodwill is a worldwide phenomenon. It has even entered the realm of political dialogue. In the past few days, we heard this:

-- “I believe this is a unique time in our history, and I am convinced that great opportunity exists for a global alliance between Japan and the United States, an alliance that will extend beyond our security needs and provide for the prosperity of our citizens...Japan and the United States must do more to integrate our economies. Some will say that there is great risk in doing that; I say there is greater risk in facing a globalized world separately than together.” — U.S. Ambassador to Japan, J. Thomas Schieffer in a speech at the Research Institute of Japan.

-- During his four-day US visit last week, Chinese President Hu Jintao said to Microsoft’s Bill Gates: "You’re the friend of China and I’m the friend of Microsoft." The leaders announced a 1.2 billion dollar Microsoft software purchase by China-owned Lenovo. This week Microsoft announced a 900 million dollar investment in China’s infrastructure.

In a business climate focused on collaboration and reciprocation, competitors can no longer afford to view one another with distant suspicion and enmity. To survive in today’s worldwide growth and innovation game companies must seek alliances based on compatible differences. The first rule of this game is: “we work together, because working together is nearly always mutually advantageous.” Today, it’s not unusual to find one division of a company signing on to an alliance with a direct competitor of another of its divisions.

But within the framework of almost any proposed business alliance, forces will arise whose aim is to undermine the agreement. Invariably, partnership saboteurs are those individuals or groups who foresee the outcome as a losing proposition, personally and/or professionally. Whether their fears are real or imagined, the paradigm of business goodwill and its relationship to brand equity value dictates that their issues be addressed.

A goodwill-based business partnership program stands in sharp contrast to the breakdown in personal, political and social communications we observe all around us. The news media routinely portrays political and social issues with emphasis on incompatible differences. Accusations and acrimony, fears of power or powerlessness, jumping to conclusions and misrepresentation of motives run daily across the global news media. Social, cultural and lifestyle issues are under siege characterized by a focus on separation, frustration and inflexibility. Our ability to freely engage in personal dialogue is under assault by increasingly habitual inattentiveness, rage, envy and rudeness. Unfortunately, defensive views are often a rationale for offensive behavior.

An effective business alliance program must attract people into the proposed alliance’s goodwill framework or it is likely that they will fall back on less productive behaviors. Therefore, to achieve a successful transition in a merger, joint venture or other alliance types, company leaders should identify and address stakeholder resistance using goodwill much as they do in forging an alliance in the first place:

-- Before deciding who stays and who goes provide all involved with the resources they need to get on the “same page.” It is imperative to create an equal playing field before making hard decisions. Stakeholders who know that they were treated fairly will behave in accordance with the goodwill expressed.

-- Flush out potential saboteurs by initiating a dialogue that respects their views and openly recognizing that they may have something to lose. Creating an environment that is sensitive to all possibilities may blunt the need to strike back.

-- Convert potential saboteurs into supporters by acknowledging that their views are welcomed and may be critically important in preventing problems. Oftentimes, what you'll learn will prevent an alliance failure downstream.

How do you deal with people who espouse views that are incompatible with company goals?

Is it possible to enter into a respectful exchange of views with potentially hostile adversaries?

Why should you treat those who may seek to sabotage your intended efforts with the same respect we’d bestow on friends?

What is the best way to deal with differences at any time?

The choice is clear: build and apply goodwill on a daily basis. It is one of your most powerful strategies in preparing for, processing and succeeding in the formation of alliances. Fostering partnership within your company culture should be the foundation for doing so among your business allies.

How do you do it? Here are three practical methods to put goodwill to use in overcoming resistance:

First, acknowledge that it is OK for some of your stakeholders to hold non-negotiable views.

Expressing your goodwill is the most common and effective expression for initiating an exchange of views. It is the same as saying: “I respect you.” Decide whether it is worthwhile to you to reach out across the divide. Reach out to those who hold differing views with an expression of respect and goodwill. Goodwill is your best asset in articulating your needs and goals. Show you mean it by using it to process an exchange of views. Keep in mind that your business goodwill itself may be at stake. Avoiding this step may come to bite you later. Use it to protect it.

Second, expressing your business goodwill is a sign of strength.

Let me be clear. Approaching others with respect is not a sign of compromise or weakness. No matter how it may be characterized in a political framework, an initiative based on a willingness to extend the hand of friendship can never be leveraged to your detriment, nor can it be used to silence your views. It is simply a bridge used to create an interpersonal zone where the exchange of common interests can be presented for the benefit of all concerned. Finding common ground on the basis of mutual respect allows partnerships to begin to take shape — in business, as well as political, social and personal contexts.

Third, leverage your goodwill to shape partnership synergy.

On the other side of the goodwill bridge is mutual understanding, common ground, synergy, productivity and constructive relationships.

How do you get there?

A proactive commitment to goodwill is based on bringing together people with differing views for the sake of the common good – benefiting all stakeholders. The result is synergy — an outcome whose effect is greater than the sum of the separate parts used to achieve it.

Aretha Franklin sang R-E-S-P-E-C-T in 1967 — an anthem for respect and recognition between men and women. At the time her call was a plea. Today, it’s a requirement. Individually and collectively the path of mutual respect promotes goodwill. The result is constructive dialogue aimed at building on compatible differences and reducing incompatible ones.