Changing Culture: Part II

In last month’s New Case on IC Management, we talked about an organization that had made huge strides after performing its first IC Rating™. Most of the gains were internal, leading to better communication, increased alignment and improved results. But a second rating showed much less progress in the management of its external network.

The organization depends on distributors to reach its ultimate clients. But the rating found that communication with this critical network was poor, and there was a general feeling that the organization did not care about these important partners. In response, the organization inaugurated a regular meeting with partners from specific market segments. The agenda includes value-added content for the distributors but also leaves plenty of time for conversations to build relationships and share knowledge. The organization feels that its understanding of both its distributors and its ultimate customers has grown significantly.

In today’s economy, more and more companies outsource key parts of their business to external partners. Distributors are not a new phenomenon but the tool to measure the strength of this relationship is new. Intangibles evaluation tools can give managers a new perspective on the strength of this kind of crucial network relationship. In this case, identifying weaknesses in the network led to concrete action and improved revenue…and an improved bottom line never goes out of style.

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