How can you decide when it's time to end a strategic partnership?

Usually, a partnership is considered a ‘balance sheet’ - profits and losses but ending a partnership shouldn’t be solely depended on the above. When we lose we are challenged and try to collaborate more effectively to balance the loss. When we keep gaining, sometimes it leads to overconfidence, limits to a comfortable seat and never like to expand facing new challenges. Therefore, real-time assessment is vital and a mutually agreeable end to a partnership is more appealing. I’ve been in this many a times, but decision making has to be strong and should never do any-turn once a decision is made.

Prior to entering a partnership, it's prudent to establish clear exit strategies within the agreement, as a comprehensive understanding of termination options can facilitate a smoother process. Concurrently, assessing the partnership's alignment with stated objectives and its contribution to overall business success is crucial. Regular reviews of key performance indicators (KPIs) are essential to gauge the partnership's impact on both organizations. Additionally, evaluating the level of communication and collaboration between partners is imperative; persistent issues or a lack of cooperation may signify a breakdown in the partnership.

Ending a strategic partnership is never easy. But the partnership needs to work for both sides otherwise it can become toxic. Communication is key here. Make sure that you are effectively communicating on a regular basis with strategic partners and measuring the results of the partnership against your shared goals. That way is either party is not happy it should not come as a huge surprise.

In my 35+ years career I can remember burning just 3 bridges, I've closed the door behind significantly more than that. Working in Sales you can never truly be sure that ending a hard earned strategic relationship is the most prudent decision to make - there will always be the possibility that one may need to travel that road again. But, as with life, the facts dictate that at some point the sheer weight of carrying excess baggage will lead to some reorganisation, but in so-doing its important to ensure that your refugees don't feel abandoned by you. Only you can determine how each individual will respond to their part in your re-shuffle!

This aspect is harder than the internal discussions about value assessment for a strategic partnership. Of course it is imperative to craft your message so that it doesn’t come off as incendiary, but it is also crucial to share the message with the appropriate members of the other party. Too often, messages are relayed to the incorrect level of team members which then don’t directly address the problem or leave open opportunities for misunderstandings. Explain your position in a concise and unemotional manner to people who can affect the necessary change.

Relationship breakdowns, whether in personal or business contexts, often stem from insufficient data, communication gaps, and trust issues. In business, leveraging available data allows for objective discussions, aiding individuals responsible for outcomes to openly address challenges. However, the advantage of having a consultant lies in their ability to offer an unbiased perspective. Consultants bring fresh eyes and experience, ensuring the data isn't biased and providing a clearer, more objective evaluation. This outside viewpoint helps in navigating complexities and facilitating discussions without emotional biases, allowing for informed decisions about repairing, restoring, or potentially ending the partnership.

Partnerships require a strong foundation. If there is no formal agreement, create one to outline dissolution terms, ensuring adherence to guidelines and obligations.

In advising CEOs navigating a partnership separation, it's prudent to engage legal counsel to orchestrate negotiations. Legal experts ensure the comprehensive consideration of all business legalities in the separation process, relieving CEOs of the intricate legal details. This allows CEOs to redirect focus to their operational responsibilities. Simultaneously, involving a CPA guarantees meticulous handling of financial aspects, safeguarding both parties' fiscal interests. This strategic approach, leveraging legal and financial expertise, fosters a smoother and more strategic partnership dissolution.

Be sure that the roles and responsibilities are clear between partnerships. Sales, lead gen, marketing, admin. Who does what? Are they pulling their weight?

At the core of the relationship is your ability to deliver the services agreed upon at the same level of quality and customer satisfaction with the partner as without it. That said -- it's very important that the Go-to-Market strategy has a defined primary contact on both sides to organize collaboration. Also, be very clear about what will need attention.

Firstly, I'd initiate an internal reflection process within our organisation. I'd convene discussions with key stakeholders, assessing the strengths and weaknesses evident in our operations due to this partnership. Next, I'd focus on the broader implications. This evaluation would extend beyond our immediate sphere to understand the larger impact on our reputation, credibility, and network within the public and nonprofit sectors. Once we've gathered these insights, the next step involves synthesising the findings. We'd distil the lessons learned and insights gained into actionable points to inform our decision-making processes by leveraging this experience to refine our approach towards future partnerships.

True partnerships serve both sides of the partnership. Regular check ins, clear communication, and set milestones are key to success. Challenges and set backs require open communication and the ability to consult on problems together. If a partnership fails to be beneficial to both sides it has become out of balance and it is best to either reset expectations or withdraw from that partnership. Key questions: -Has this partnership fulfilled its goal? -Is it possible to redirect onto the desired path with a minimum of effort? -Are there opportunities costs for leaving? Communication is key, it is better to catch early and stay on track than redirect. Second best is saving resources and exiting a partnership that has become one sided.

Knowing when to end a strategic partnership is a move that requires a shrewd assessment of its value and potential. First off, weigh the partnership's performance against initial objectives. If it's become a dead weight, it might be time to cut loose. However, even in the departure, aim for a graceful exit rather than a scorched-earth strategy. Similarly, evaluate if the partnership aligns with current goals and anticipate future prospects. If the landscape has shifted or objectives no longer sync, consider renegotiation or strategic pivoting rather than a severance. Leaving on amicable terms preserves goodwill and the potential for future collaborations. Knowing when to end a partnership is as crucial as knowing when to embark on one.

Keep a positive relationship with your former partner post-partnership by staying in touch and collaborating on other projects. This helps preserve your reputation and network and may be helpful in future assistance or expertise.

This is one of the biggest pieces to consider. Do you want to maintain the relationship or not? Even if you are not looking at maintaining the relationship if you can leave with a mutual respect that is best.

Ending a partnership doesn't mean ghosting your former ally! Think of it like a friendly breakup where you still 'like' each other's posts and grab coffee occasionally. Keep the chat lines open, share a meme or two, or even a helpful article. You never know when a 'Hey, remember us?' could turn into a 'Let's team up again!' Plus, a good word for them might circle back as a great opportunity for you. Keep it cool, positive, and open. Who says you can't be business buddies?

Partnerships (in business and in life) are a two-way street. Communicate regularly, address where each party stands at certain milestones, consult on problems together, and if at any time the partnership is only benefiting one side, or no side, then it is up to you to protect your organization, your strategy, and your own career. Thoughts to consider: -Has this partnership fulfilled what was necessary for our strategy? -Can this lead to additional partnerships with the same company in the future? -If the expectations of the partnership are not coming to fruition do not double-down and try to force results. Your time, energy, and opportunity cost are best spent elsewhere.

Case study about 12X value from the Partnership maintenance. A young woman, a client who was happy with my company's work and excellent customer service, recommended us to a colleague who was expanding her clinic's digital infrastructure. This referral resulted in a new contract that was bigger in 12 Times! And it became the biggest contract in company history!

Keep in mind that partnerships can be a very slow and intricate process. I don't think people consider the amount of time and effort that goes into forging a partnership that may ultimately fail. At the onset, working with a partner may make sense; however, company goals and direction may change swiftly.

Partnerships are defined by events and when things go wrong. It’s how you collectively move forward from adversity and into a better place.