Increased productivity of your loan
A new dynamic occurs when organizations make the paradigm shift from “me” to “we.” This is when they move from independence to interdependence.When an organization has increased its PQ enough to understand that its success depends on the partnership’s success, it integrates the partnership into the culture. It is now “the way things are done around here.”
The more skilled the partnership is in using the Six Partnering Attributes, the better the relationship between members becomes. As we saw in Part Two, these attributes are portable—that is, you can use them in many different settings. When employees learn to improve their PQ on the job, they’ll use these skills not only between themselves, but also when working with customers and even in their personal lives. Employees show higher morale and cultivate better relationships when they communicate effectively. These elements lead to increased productivity. Since business relies on relationships, customers will continue to support organizations with which they’ve built a good relationship. The organization wins in many ways.
Overall, the analysis suggests that credit spreads are highly correlated with the business cycle and that there is a leverage cycle that is closely related to macroeconomic activity variables. While carry-driven strategies may work most of the time, a thorough understanding of the leverage cycle helps to anticipate a harsh credit environment, even before it is reflected in GDP growth and equity performance. As the years 1997–2000 have shown, information from the equity markets is clearly not sufficient as an indicator of business and financial risks in the corporate sector. Most companies go through a regular cycle of leveraging and deleveraging, which is related to the profit and Capex cycle. Especially trends in mergers and acquisitions have a significant impact on the performance of credit markets.