How To Grade Partnerships

Partnerships are a very tricky business. As a word, they are highly aspirational and often fuzzy. They paint the picture of a perfect union of two or more entities across a defined scope and duration. The reality, however, is that partnerships are often testy, with results frequently falling short of expectations.

In the past 9 years, I have worked (in various capacities) across 9 product launches, 3 multi-million dollar events, 2 reality shows, and over 30 mid-scale events. As someone who has navigated his fair share of partnership arrangements, I have come to appreciate the innate beauty of 'partnerships', and here's how I would bucket partnerships in general and what I look out for when navigating these wild waters.

Firstly, let’s be clear about what partnerships are. I see partnerships as an opportunity that gets created when two or more parties collaborate to achieve a set of agreed-upon outcomes. When combined, this collaboration creates value greater than the sum of their individual contributions. It's about harnessing collective strengths to deliver results that surpass what each party could achieve alone. In summary, partnerships are not just about the 'relationship' but more about the 'end outcome'

With that understanding, I would classify partnerships across 3 simple grades:

·?????? Destructive: When partnerships fail (1 + 1 < 2)

·?????? Underleveraged: When partnerships fall short (1 + 1 = 2)

·?????? Optimal: When partnerships succeed (1 + 1 > 2)

Destructive Partnerships where 1 + 1 < 2

Destructive partnerships, as the name suggests create negative value. It’s when the sum of parts is less than the whole. ?What should have been a force multiplier instead becomes a liability and value-destroying.

While I’d assume only 10% to 15% of all partnerships will fall in this area, the impact of these partnerships is often far-reaching, often damaging brand value and goodwill built over time.

Here are 3 common traits of Destructive Partnerships:

• Poorly Defined Scope A poorly defined scope often leads to misunderstandings and disagreements regarding roles and responsibilities, creating a chaotic environment. Without a clear definition of the desired outcomes and success criteria, teams are set up for failure from the outset. A well-crafted, tightly communicated, and mutually understood scope is crucial to the success of any partnership. When the brief is in flux, the objectives are not clear and responsibilities are not defined, it undermines the foundation of the partnership, leading to confusion, scope creep, and ultimately, project failure.
• Poor Buy-In Across Teams Great leaders inspire and bring everyone on the journey with them, fostering a collective belief in the vision and the partnership’s potential. When the team doesn’t believe in the partnership, the chances of failure increase exponentially. A lack of buy-in can create a negative atmosphere that not only hampers the partnership’s progress but also affects broader stakeholder relationships, turning what could have been a productive collaboration into a source of friction and disappointment.
• Poor Execution While plans may look promising on paper, the real value lies in giving visions form and bringing them to reality. A visionary, value-creating partnership requires flawless execution from start to finish—from the initial brainstorming sessions and extending through to final communications and implementation. Poor execution can unravel even the most well-conceived partnerships, as gaps in planning, communication, and follow-through lead to missed deadlines, budget overruns, and unmet expectations. In a partnership that relies on synergy and mutual effort, the inability to execute effectively can not only diminish the partnership’s value but also damage the reputations of all involved parties.

Underleveraged Partnerships where 1 + 1 = 2

In some cases, partnerships may deliver value, but they don’t fully utilize or tap into their potential. This often happens when the collaboration is limited to transactional interactions rather than strategic integration. The parties involved might achieve their immediate objectives, but they miss out on the bigger opportunities that could have arisen from a deeper, more synergistic relationship. The result is a situation where the sum of the parts is equal to but not greater than, the whole.

Here are 3 common traits of Underleveraged Partnerships:

• Poor Adaptability Underleveraged partnerships often falter due to poor adaptability, where the involved parties are unable or unwilling to adjust to evolving circumstances. In a rapidly changing business environment, flexibility is key to unlocking the full potential of a partnership. With changing scopes and new challenges, teams need to keep an "opportunistic" mindset as opposed to a narrow, short-term view. They need to be open to new solutions and reality pivot and capitalize on new avenues for growth. Limited ability to recognize opportunities and inflexibility, limits the partnership's scope and also stifles innovation, leading to outcomes that are satisfactory at best, but far from exceptional.
• Limited Understanding Shallow understanding of the brief, and the stakeholders involved is another common reason why partnerships fail to achieve outsized returns. When stakeholders don't take the time to fully appreciate the nuances and key relationships in play, they fail to gain a deeper understanding of the broader, long-term possibilities. Instead, they effectively place a ceiling on what the collaboration can accomplish. This shallow perspective prevents the partnership from evolving into a more strategic, value-generating alliance.
• Fear of ‘New' Fear of failure and resistance to change can severely undermine a partnership's potential. This is especially evident in long-term partnerships where the teams are used to the flow. When teams or organizations are hesitant to challenge themselves and embrace new ideas, technologies, or ways of working, they limit the partnership's ability to innovate and grow. This conservative approach prevents the partnership from exploring new horizons and reaping the benefits of innovation, ultimately resulting in a relationship that is underleveraged and underwhelming.

Optimal Partnerships where 1 + 1 > 2

The most successful partnerships are those where both parties bring complementary strengths to the table, creating a synergy that produces results greater than the sum of their individual contributions. These partnerships often lead to innovation, market leadership, and outsized returns. When done right, the partnership doesn’t just add value—it multiplies it. These are the partnerships that drive transformation, disrupt industries, and create lasting impact.

Here are 3 common traits of successful partnerships:

• Defined Scope A well-defined scope is the foundation of any successful partnership. When both parties clearly outline the objectives, roles, and responsibilities from the outset, it sets the stage for effective collaboration. A clearly articulated scope minimizes misunderstandings and ensures that all stakeholders are aligned in their expectations. This shared understanding allows the partnership to focus on achieving strategic goals rather than getting bogged down in operational details. With a defined scope, the partnership is better equipped to navigate challenges and leverage opportunities, leading to outcomes that far exceed initial expectations.
• Dedicated Headspace and Understanding Successful partnerships require dedicated headspace and a deep understanding of each partner's strengths, weaknesses, and strategic priorities. This involves more than just a surface-level commitment; it requires both parties to invest time and resources into truly understanding each other’s business models, goals, and challenges. When both sides are fully engaged and committed, they can anticipate each other's needs and work seamlessly together. This deep level of understanding fosters trust and collaboration, enabling the partnership to innovate and adapt in ways that would be impossible without such a strong foundation.
• Team Buy-In Team buy-in is crucial for translating a partnership’s strategic vision into reality. When the teams involved believe in the partnership and are committed to its success, they bring energy, creativity, and resilience to the collaboration. This collective enthusiasm not only drives the partnership forward but also helps overcome obstacles that may arise along the way. When team members feel a sense of ownership and alignment with the partnership's goals, they are more likely to go above and beyond, turning the partnership from a good idea into a transformative force that delivers outsized returns.

?Conclusion

Partnerships challenge us to step outside our comfort zones. They invite us to collaborate with new people, navigate surprises creatively, and generate outsized returns. Partnerships are powerful tools for growth, scale, and impact. For instance, the ability to prudently manage financial resources while achieving growth/scale through strategic partnerships is a key differentiator between successful startups and those that struggle.

The above is just a snapshot of my observations and experiences. I am sure there are different ways to approach partnerships - and that's what makes it exciting! Having seen a diverse range of partnerships I’ve come to believe that partnership-building is an art. You can get better at it with experience and skills over time. That said, experience will only get you halfway there. To complete the other half, we must continuously embrace new technologies, ideas, and innovations.

So how will partnerships look in the age of AI? While this deserves another reflection on its own, the short answer is that - As we move into the age of AI, partnerships will undoubtedly be supercharged, but I remain confident that human ingenuity will continue to play a vital role in creating the magic that drives successful collaborations.

Partnerships are inherently a human endeavor. Don’t lose sight of that essential element. It can guide you toward crafting successful partnerships.

*ChatGPT aided in idea & grammatical structuring

*Image credits go to the creators linked