What are the best practices for managing joint venture or partnership governance and performance?

Effective joint venture governance hinges on clear objectives and alignment from the get-go. For instance, when we collaborated with a leading tech firm, setting explicit goals and aligning our strategic directions from the outset paved the way for seamless operations. Ensuring all parties are on the same page and periodically revisiting these goals keeps the venture steering straight, maximizing performance and minimizing discord.

Collaborations are initial stages of long term relationships. Contracts are important. But relationships should continue to evolve based on the scale of the venture, and team size. What is the goal? Is it financial or also brand ? Is it variable only or more structured with fixed obligations ? Keep a matrix and evolve.

Clear objectives, alignment, and contracts are really important to build a foundation for success in a business collaboration. However, too many times have I seen collaborations fall short when companies place the wrong person from each side to "operate" the collaboration. This is especially critical when a startup is working with a large company. The startup sees the collaboration as super important, while for the large company, this may be just another thing they are doing. This creates gaps in execution, and it is important for the startup to have the right person to build the right support with the large company, and consistently stay on top of things to keep the collaboration moving and scaling.

Over the years, I've seen "effective" communication derail more JVs than bad strategies. It's not just meetings – it's about candor, even when it's tough. Sharing early warning signs of delays or market shifts builds trust. Set communication norms upfront: weekly updates, even if just "all good". And remember, over 70% of meaning is nonverbal. Invest in face-to-face time initially – video calls are better than nothing, but in-person builds the rapport that gets you through the rough patches that every JV faces.

Exactly! Open and transparent communication is the lifeblood of any successful joint venture or partnership. Regular updates across various channels—whether formal or informal—help keep all parties aligned, foster trust, and allow for the timely resolution of issues. Establishing a common language and culture is critical, especially when partners come from different organizational backgrounds, as it ensures mutual understanding. Respecting each other's differences and leveraging diversity can drive innovation and creativity, making the partnership stronger. Informal interactions and feedback loops, in particular, create an environment of continuous collaboration and improvement, which can lead to long-term success.

My experience shows that it's not just the metrics themselves, but how we track them that matters in a JV. Dashboards are fine, but early in the partnership, I like to set up shared systems for logging issues as they happen. This forces both sides to surface challenges while they're minor, not when they've festered into major problems. Plus, recent industry shifts mean that 18-month goals can be outdated by month three – we need a system that gives us a real-time pulse to pivot quickly.

Absolutely! Regularly monitoring and evaluating the performance of a joint venture or partnership is essential to ensure it stays on track. By using both quantitative metrics (such as financial performance, market share, or operational efficiency) and qualitative indicators (like partner satisfaction or stakeholder feedback), you get a well-rounded view of progress. Gathering data from multiple sources helps avoid bias and provides a clearer picture of overall success. It’s equally important to remain flexible. As market conditions and competitive landscapes evolve, revisiting and revising goals, strategies, and resource allocation ensures that the partnership remains agile and responsive.

After decades in this business, I've learned risk isn't just about contingency plans. It's baked into your choice of partner – due diligence matters, but so does their track record in handling the unexpected. We all face disruption: supply chain trouble, tech glitches, even regulatory shifts. What matters is how a partner reacts – do they panic, point fingers, or roll up their sleeves? That's why I value scenario planning early in a JV, forcing both sides to think through "what if" situations before real money's at stake.

You're absolutely right! Joint ventures and partnerships carry both risks and opportunities, and managing both effectively is crucial for long-term success. Identifying potential risks early on—whether they stem from legal, financial, operational, or reputational factors—allows you to develop mitigation strategies and avoid major disruptions. On the flip side, partnerships often present unique opportunities, such as synergies between the organizations, innovations sparked by collaboration, or expansion into new markets. Leveraging these opportunities can significantly enhance the value of the venture.

Collaboration's easy to talk about, tough to execute in a JV. I've found the key is setting up the right incentives from day one. Yes, there's the big picture goal, but structuring compensation to reward teams that work well together, across company lines, is how you break down silos. Plus, in my experience, the best innovation sparks fly between people from different backgrounds. Rotation programs, even short-term ones, build those personal ties that become the bedrock of a high-functioning partnership.

Exactly! Joint ventures and partnerships thrive not just on the basis of transactions but through strong relationships built on mutual benefit and continuous learning. Creating a collaborative, learning-oriented culture allows both partners to share knowledge, leverage each other’s strengths, and apply best practices across the venture. This cross-fertilization of ideas can spark innovation and lead to better solutions. Recognizing and celebrating contributions, achievements, and milestones helps strengthen the relationship and maintain motivation.

This an excellent profile on why forming and maintaining strategic partnerships are critical for growth and valuation momentum. Our NMMI biotech product development and evolution are based on key relationships that will provide global commercialization and distribution coverage from day one.