Business Relationships - Stages

Predictable stages: Forming, Storming, Norming, Performing

People are linking up to work together in all sorts of creative ways.  Business relationships span a broad spectrum, from informal collaborations to formal, legal relationships (such as joint ownership of a company).  With the Internet and widespread use of email, 'virtual teams' are an increasingly popular way to staff and manage projects.

Business relationships usually start out in a glow of euphoria and progress through a series of predictable stages.  Many business relationships stumble or fail (see my previous eNews entitled 'Business Divorce').  Understanding the stages can help you achieve lasting and effective business relationships.

Bruce Tuckman published his famous 'Forming, Storming, Norming, and Performing' model in 1965.  While business relationships and organizational structures are vastly different today, this model is still relevant and useful.

Forming
This is sort of like the 'dating phase.'  When a business relationship is forming, people feel excitement, anticipation and optimism.

At this stage, people are focused on the mission, vision and goals of the relationship.  It's good practice to be clear about the mutual expectations.  Having a written agreement about roles, responsibilities and financial issues is recommended.

Storming
In this stage, people are adjusting to working together.  Storming is like 'living together' and learning to accept each other's personal habits.

As working styles are merged, people experience arguing, conflict and dissent.  There can be significant disagreement and confrontation.  Confrontations can be about how work is accomplished, files are maintained or clients are billed.  Differences of opinion over how things will be done should be addressed in a constructive way to find the 'best practices.'  Failure to constructively resolve conflict usually results in the end of the business relationship.

Norming
Business relationships that make it through storming emerge into a new stage in which people begin to integrate their way of working in a cohesive manner.

Norming can be like marriage and 'settling into a long term relationship.'  In the norming stage, people feel a sense of belonging and are comfortable sharing ideas and feelings and giving and receiving feedback.  Norming involves moving beyond the work into enjoying each other, socializing and having fun.

Performing
At this stage, group members achieve interdependence.  This means that they work well together, achieving more together than they would as individuals.  The analogy for performing is “successful parenting” in which you work as a team to handle the challenges.

In conclusion, business relationships are an important way to expand the range of products and services that you provide.  Learning how to manage through the predictable stages of business relationships is another important tool for your business toolkit.

- In the forming stage, for example, it’s always a good idea to be clear about your expectations for the business relationship (e.g., time and dollar commitments).

- If you know you’re in the storming phase, instead of reacting angrily when a business partner wants you to change how you do some aspect of work, you can focus on developing “best practices.”

- In the norming stage, you develop consistent methods and systems for how work is accomplished as well as develop interpersonal relationships.

- Once you’ve reached the performing stage, you know you’ve developed a successful business relationship.  When the chips are down, your business partner(s) hang in there and deliver on commitments.

While Tuckman’s model is useful for assessing your business relationships, I always recommend having a written agreement with key business partners.

Jean D. Sifleet Attorney & CPA
120 South Meadow Road
Clinton, MA 01510 USA
978-368-6104
www.smartfast.com

P.S. For more background on Tuckman's theory: check out: http://www.nwlink.com/~donclark/leader/leadtem2.html, and http://www.sa.ucsb.edu/osl/leadershipopportunities/pdf/StagesOfGroupDevelopment.pdf

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Information provided on this website is intended for a general overview and
should not be construed as legal advice for a particular situation.