Let us examine how perception affects business relationships, however before we proceed, let us remind ourselves of this maxim, ‘understanding the how and why people think the way they think, is key to having the right or broad perception’.
If you don’t have the right perception, you will always make wrong decisions because you would have failed to consider certain important positions. This is most evident in business and business relationships.
First, in business relationships, if you don’t understand the key stakeholders, you may not succeed. Some of these stakeholders are :
1. Investors or Shareholders
6. Regulatory or Government agencies
7. General Public
Investors or Shareholders: Most investors are interested in returns on their investment, so the key performance indicator for them is ROI (Return on Investment). For them, everything you do must result to profit, hence you must identify activities or divisions or products that drive up your profit and pay more attention to them.
Sometimes investors want to discontinue a line of operation because they feel it is not profitable or has become a cost center, while you may have some biases for that line. It will do you well to let go of personal biases and be objective in decision making, unless their is a perspective you see that they haven’t seen.
At other times, investors are so pleased with an existing line or product that they fail to pay attention to emerging threats in the market. At such times, you are in a vantage position because you relate with all the stakeholders and you can point out why you should start thinking of innovation either by new product development or diversification. Remember how Xerox became history when they failed to pay attention to the emergence of Personal Computer, they even ignored their own personal computer called PARC, which came before IBM or Apple! Learn from this example. (To be continued).
Have a great week ahead and look out for shifts in your long held belief.