June 2026 - Business Formalities

Strong relationships are one of the most valuable assets in business. Whether between two companies or between a company and a customer, trust and familiarity can improve collaboration and overall success.

However, close relationships can sometimes create unintended risks. As comfort levels increase, important business practices may become less formal. Meeting notes go unwritten, agreements remain verbal, nondisclosure agreements are delayed, and decisions are not documented. While everyone is well intended, good intentions cannot replace basic business practices.

Business is still business.

Regardless of how strong relationships are, organizations must continue to follow established processes and procedures. Meeting minutes, written acknowledgements, NDAs, contractual agreements, legal reviews when appropriate, and adherence to company SOP are important. Following process and procedure provides clarity, establishes accountability, and ensures all parties share the same understanding.

Following process and procedure is important because relationships can change, leadership teams can turn over, and regulatory or compliance requirements can evolve. Individuals who were present during verbal discussions may no longer be involved, leaving organizations to rely on documentation versus memory.

Maintaining business formality is a sign of professionalism. Strong relationships and strong documentation should work together, keeping partnerships productive, protected, and sustainable.