7 reasons the right relationships lead to better tech outcomes

When done right, relationships built on a foundation of trust and collaboration, in addition to tech, can deliver groundbreaking results that are easier to quantify. Here are seven reasons why getting the formula right matters.

1. Accelerate decision-making

The ability to make decisions quickly can become a company’s greatest strength, particularly in today’s fast-paced and rapidly changing business environment. Unfortunately, many companies fall short. A 2023 Oracle study of over 14,000 business leaders and employees found that 86% felt the volume of data involved in decisions was making their lives more complex. And 70% even admitted giving up on making a decision because of feeling overwhelmed by data.

One way to close the gap is to leverage tech relationships that offer tools and resources to help your team actually utilize that data to make the right decisions. A good example is the collaboration between Google and HubSpot, which drove a 232% increase in feature adoption in a five-month period thanks to a collaborative approach in launching a GTM integration.

2. Establish clearly defined and fully aligned KPIs

The best relationships have fully aligned and clearly outlined KPIs from the outset, ensuring you’ll be able to quantify your success — or lack thereof. Well thought out KPIs and tracking dashboards ultimately ensure that tech partners have something to work toward, and that they’ll be able to recognize when progress is or isn’t being made.

“Successful IT partnerships depend on delivering the right technology at the right time, but that only happens when both sides have a clear understanding of what the KPIs for the relationship should actually look like,” says Jordan Solender, founder of IT Select. “These KPIs serve as the guide for how partners will work together, and even which tech solutions will be used. The best partners understand how to adapt what they do based on the needs of a specific relationship.”

3. Communicate to improve results and prevent misunderstandings

Reliable communication is another essential element of strong relationships in tech. Quality partners establish expectations for communication upfront, including the frequency of communication and how it’ll take place. There could be different expectations for different levels of the partnership. For example, executives might only get involved for monthly or quarterly meetings, while those more directly involved in day-to-day operations might need to check in every day.

A solid communication system keeps partners on track. Misunderstandings are caught and addressed in a timely manner, but they’re also less likely to happen in the first place. This improves productivity and the overall nature of the relationship.

4. Familiarity reduces defects

Many companies fall into the trap of switching suppliers frequently to chase the lowest price. But research suggests this may not be the best approach since consistency in team members can increase efficiency and effectiveness. The Harvard Business Review profiled an example of how an orthopedic surgeon, renowned for completing knee replacement surgeries in just 20 minutes, largely credited his efficiency to the familiarity he had with his team members, some of whom had worked with him for 18 years. That cohesiveness also reduced the risk of things going wrong, especially as the doctor and his team members learned to innovate alongside each other.

When applied to tech partnerships, familiarity can breed similar results. As teams grow to understand each other better, it can reduce the risk of costly defects, and keeps collaborations on track. This is one reason companies are beginning to rethink their approach to their most strategic suppliers by shifting from arms-length transactional approaches to a more strategic and longer-term, outcome-based sourcing business model.

5. Trust and respect ensure candid feedback

Quality business relationships are built on an inherent sense of trust and respect. Both sides understand that each brings expertise and resources that complement their own skill sets. However, this same environment also encourages both sides to be willing to provide constructive and candid feedback when needed.

This feedback could focus on project deliverables, communication, or any other aspect of the collaborative effort. Respectful partnerships ensure that feedback is given in an open and constructive manner, backed by a sense of mutual support. Rather than making one side feel defensive about their efforts, both sides approach this with the goal of working together to find a workable solution. On the other hand, a low-quality tech partner might not offer feedback or be willing to accept any input from your team.

6. Cultural fit improves collaboration

Cultural fit is a term often tossed around when hiring, and it’s also important in collaborative relationships, though not in the way that most people think. In partnerships, true cultural fit describes partners who have the same values and perspectives on how organizations should work, be led, and communicate. This has a direct impact on organizational priorities and processes. For example, consider the case study of two partner organizations, one of which prioritized innovation and flexibility, while the other’s structure was process-oriented and hierarchical. These different models and cultures resulted in a poor cultural fit, which led to the end of the partnership.

When business cultures are aligned, collaboration becomes much easier, making the partnership far more likely to deliver desired results.

7. Strong conflict resolution protocols keep collaborations on track

Even when a strong cultural fit exists, lasting business relationships benefit from clearly defined conflict resolution protocols that will keep their work on track. Even the best relationship will experience conflict sooner or later. The best partners have a clear plan in place to keep these conflicts from derailing the relationship.

Conflict resolution protocols that provide guidelines for addressing and escalating matters in a timely manner allow issues to be managed quickly, which can minimize operational disruptions and ultimately help prevent disputes down the road. They should also include guidance for what to do when a resolution can’t be reached. This helps keep the focus on the KPIs and encourages a collaborative resolution.

Relationships matter

The importance of the right relationships in tech can’t be understated. Quality partners who are fully aligned with your own organizational values and goals will take you farther, and enable your business to accomplish far more than you could on your own — or with a bad partner. By putting in the necessary work to find the right partners for your needs, the strong, quantifiable tech outcomes you desire will become a concrete reality.