The 10 Components to Strong & Effective Business Partnerships

Working in partnership has always been a route through which an organisation can grow or evolve. However, they are not short cuts, as they require planning, focus and cultivation.

Here is what I have learnt from observing successful partnerships and in building some of them.

1) Alignment

Not only does there need to be alignment on partnership objectives, but the partnership also needs to align with the core objectives of both the parent and partner organisation. A partnership has to be meaningful to both parties. Also key sponsors, at both the parent and partner, need to be vested in making the partnership succeed.

2) Empathy

Beyond formal alignment, a successful partnership is built on both organisations having the drive and desire for the other organisation to succeed. It is not enough for one party to benefit. Each party needs to mindful of the other so that both parties can grow together.

3) Recognition

This is built on understanding each other’s capabilities, cultures, and motivations. Where does one party add value or deliver an efficiency to the other? Is there an opportunity for the parent or partner to live and breathe the day-to-day environment of the other, thereby further unlocking synergies?

4) Clarity

Contractual terms are a necessity. Requirements on both parties need to be clearly detailed. Also, do not be afraid to add multiple appendices that outline implementation steps, financial structures, payment terms, and operational processes etc. Provisions should also be made to detail termination steps (under different scenarios), reward over-performance and ensure reputational integrity.

5) Governance

Clearly defined governance needs to relate to both the partnership agreement and the operation of the partnership. This needs to include roles, responsibilities, processes, and Key Performance Indicators (KPIs) for both the parent and the partner. Detailed escalation paths, in the event of technical, operational, and financial issues also need to be included along with defined Service Level Agreements (SLAs) and Service Credits, where appropriate.

6) Visibility

Depending on the type of partnership, a robust technology integration and/or regular reporting schedule will need to be adopted. This is so that all parties have up-to-date visibility of the partnership, can review performance, and make any course corrections/ improvements as quickly as possible.

7) People 

At the heart of every partnership are the people involved in running it and utilising it. Internal feedback on the partnership, from differing perspectives, is important. Equally, there needs to be multiple personnel relationships between the parent and the partner. This will ensure continuity and better understanding. In addition, the overall objectives of the partnership should also be included, where appropriate, within individual personal objectives, at both the parent and partner.

8) Communication

When a new partnership is set-up, it is the parent's responsibility to continually ensure the partner is fully trained, armed with the best collateral, and fully communicated with. Equally, it is the partner's responsibility to reinforce to the parent the value it is delivering (both tangibly and intangibly). Where appropriate, a clear external joint marketing schedule also needs to be in place - it is not enough to do a press release at launch and then go quiet.

9) Checking-in

Stepping out of a partnership needs to regularly occur so that each party can objectively review progress and make material changes if needed. Scheduled, structured and open two-way quarterly business reviews are a good vehicle for this. By having a structure around KPI performance, significant developments, market feedback etc., will ensure both parties are true to the spirit and requirements of the partnership. Equally, there needs to be a defined and prepared for time for both parties to exchange new ideas, concerns and opportunities.

10) Flexibility

Strong partnerships evolve. Markets change. New offerings become available. Capabilities grow. Therefore, there needs to be flexibility for restructuring and evolving a partnership, especially when both parties believe there is a greater opportunity that they can both pursue together. In general, partnerships markedly improve across all measures, following a restructure, when it is directed towards a greater goal or market opportunity.

and Finally...

A short note on partnership professionals, as they have an interesting skill-set. They are intra- and inter-preneurial. They seek to build something that is greater than the sum of its parts. In some cases they unlock unrealised value at both the parent and the partner. They are value, market and people driven. Analytical in forecasting, meticulous in bedding-in alignment and astute in managing stakeholders. A good one also has the attention, respect and ear of all parties.

Please feel free to add anything you think is missing, as all comments are very much welcome.