Covey’s Seven habits
Covey’s habit number four, win-win, is that which seeks to place fair terms on the table for the parties that seek to ally. Alliance formation is one of the strategies that help to build a strong platform for conducting business operations. The parties to an alliance exhibit different strengths and weaknesses. For instance, organization A would want to ally with B because B has a stronger customer base or because it enjoys economies of scale due to its size.
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The two factors are strengths that organization B has. On the other hand, organization B would agree to collaborate with A because A has highly qualified and skilled employees. Having a team of skilled employees would be a strength in organization A. From this short illustration, it is clear that both organizations have strengths and weaknesses. If this collaboration were to happen, both the organizations would benefit. The mutual benefit that has resulted from the collaboration is referred to as a win-win situation (Covey 33-51).
However, not all collaborations would be mutually beneficial to organizations due to unforeseen internal and external factors. Organizations in the same industry are rivals and would do anything necessary to attain a competitive advantage.
In a competitive market, the principle of survival for the fittest applies. For an organization to survive, it should deliver quality, sustainably utilize its resources, and implement a confidentiality policy to prevent information leakage to its rivals. Most companies implement a confidentiality policy due to a lack of trust in their competitors. To achieve a win-win situation, information sharing between organizations is imperative. However, lack of trust between the collaborators would hamper total information sharing and thus create a win-lose or a lose-lose situation (Covey 33-51)
Relationship proposal between a primary contractor and a strategic subcontractor
A primary contractor is a person or an organization that applies for tenders, and as soon as his offer is accepted, he/she delegates duties to another person or organization. The organization or individual to whom the delegation is made, is the subcontractor. The primary contractor comes into direct contact with the client. Therefore, payments move from the primary contractor to the subcontractor.
These two different levels of contractors are managed differently due to their different sizes. It would be difficult for this kind of collaboration to create a win-win situation because each party would prefer to implement a different business strategy. Therefore, the following would facilitate the creation of a mutual benefit atmosphere between the contractors. First, they should implement the business strategy of their choice but make sure that the chosen strategies create a road to quality delivery. Secondly, there should be a fair reward strategy between the contractors (Culpan 56-97).
The subcontractor’s wage should be equivalent to her/his effort. It would be better if bonuses were included in the remuneration strategy to reward outstanding performance. This strategy is based on a proven fact that a well-paid individual feels appreciated. If the assertions were lent to this situation, it would mean that if the subcontractor is well rewarded, he would feel appreciated and that appreciation is the foundation for building the atmosphere of trust. Thirdly, the primary contractor should ensure that he/she consistently delegates tasks to a similar group of subcontractors. This strategy constitutes a silent way of showing preference.
A preferred subcontractor would trust the primary contractor thus the development of trust. Lastly, information sharing between the two parties should be consistent to strengthen the relationship and help build trust. The mentioned strategies would circumvent the challenge of creating trust between enterprises thus create a win-win situation (Culpan 56-97).
Covey, Stephen R. The 7 Habits of Highly Effective People: Restoring the Character Ethic, New York: Free Press, 2004. Print.
Culpan, Refik. Global Business Alliances: Theory and Practice, Westport, Conn: Quorum Books, 2002. Print.