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Full partnership is not the end of the road. As we develop more trust with our partners, as we achieve predetermined worthwhile goals, as our desire to benefit personally from the arrangement is sustained, our commitment deepens. Partnerships can revert to earlier stages— back to reassessing needs and redefining what we want from our partners.

Just as we reestablish a Norm stage following a return to the Storm stage, we can recommit to a partnership that we have chosen to redirect. In both cases, the establishment of trust sustains the partners through setbacks and potential turmoil.

Our commitment to a full partnership, therefore, is not a final destination, but an ongoing process. The relationships are performing, the synergies are generating mutual benefits, and the partnership becomes increasingly well-established. Sustaining its growth is the challenge. At this point we may want to do some strategic planning. This planning can be done within the boundaries of the partnership to create a mutual future, or it can be done in a larger arena. Many companies present organizationwide “future search” conferences where they invite their partners to try to envision what their partnerships will look like five or ten or twenty years down the road. The more mutual the planning, the deeper the relationship. Trust is a catalyst propelling people into the creative zone.

Operating leverage is the idea that companies can make more money from each additional sale if they do not have to increase fixed costs to produce more. In general, operating leverage refers to the fact that a lower ratio of variable cost per unit to price per unit causes profit to vary more with a change in the level of output than it would if this ratio was higher. So operating leverage is a function of fixed unit costs and output. The benefits of operating leverage unfold when business picks up. Then the existing workforce, plant and equipment can produce more without additional costs. Profit margins expand, and profits boom. Obviously, the profit of a business with a high degree of operating leverage varies more, everything else remaining the same, than do those profits of businesses with less operating leverage.

Greater variability of profits, of course, means that the credit risk is higher. Conversely, with a lower level of operating leverage, the business shows poor growth in profits as sales rise, but faces a lower risk of loss as sales decline.