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In enterprises large and small, the anticipation of obstacles comes naturally.
As a culture, we are trained from an early age to be problem solvers, to the point that as adults we can become real sticks in the mud, always predicting the next bump in the road long before we arrive. Armed with a briefcase full of onerous options, we proceed into business ventures with the same grim outlook.
But more often than we care to believe, it isn’t failure or negative outcomes that kill a business. What kills most businesses is unbridled success.
I’m not referring to situations in which companies are overwhelmed with orders. That, too, can damage a company’s reputation in serious ways, though it’s seldom a company-killer.
What I’m talking about happens at a more basic level, in the bond of trust that holds companies and alliances together.
I’ve seen this in all industries and in all types of business relationships. In forming an alliance or partnership, even over a handshake, the same principles apply: Be sure your discussions include details on how to handle unexpected successes.
Not being a litigious person, one of my informal business goals is never to end up in court. (Find me some wood to knock on, and be quick about it.) However, most of the court action that I’m aware of comes from what is perceived to be big piles of money hitting the table.
Imagine two guys who come up with a great idea over coffee. They are surprised when their idea takes off and a million dollars lands on the table in front of them with a THUMP. Now they are eyeing that pile of money with no previous agreements to help them tolerate the success they have achieved. Their discussions go downhill.
The same is true of companies. When seven people worked for the company, they all understood where those millions went. But when 200 people work there, they feel cut off from information and power, and they don’t see that most of those millions pay for salaries or are plowed back into the company. They begin to feel cheated and look for ways to set things right. See you in court.
On a smaller scale, I once partnered with a consultant to provide services to a client. While working out the details by e-mail, I asked him if a reasonable sum of money per day would be acceptable for his service. He readily agreed.
Later in the e-mail discussion, I informed him that I would be charging the client three times his pay. He balked and asked why he wasn’t receiving half. I explained my reasoning and then reminded him that he had been happy with his pay just a few minutes before. I suggested he might be falling prey to a syndrome that I call “see more, want more.” I admit it wasn’t the most comfortable moment in our discussions.
Finally, I added that our friendship was important to me, and if he didn’t feel good about the financial arrangements, we should back away before we damaged our relationship. We recovered from that moment well and went on to have a successful working relationship.
Tolerating success doesn’t just mean giggling and talking about the cool cars and trips to Europe you’ll buy with your newfound dollars. To tolerate success together, you will have to pass through some difficult negotiations.
Whenever you form an alliance, talk about all the possible outcomes, and be sure you’re ready to tolerate success.
Aesoph is president of The Aesoph Group
www.aesoph.com,
(877) 523-7674
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