Joint-Ventures that last. What’s the secret?

In a globalized economy, where technology disruption happens everywhere, joint-ventures are increasingly common.

We find them in all industries, from energy to consumer goods or pharma, from banking to media. Large corporations, as well as start-ups and social businesses are concerned.

Extremely common in China and India, their scope extends often much beyond a single country.

A lot of joint-ventures are created but never take off, or disappear after a few years. However, a few of them last for long periods of time, and outperform their competitors.

So, what makes them long-lasting?

Through my 30+ years of experience as CFO in industrial companies and Board Director of International Joint-Ventures I had the opportunity to reflect on this puzzling question which has multiple perspectives.

1. What strategic reasons make a joint-venture the ideal form of organization?
2. What are the most common pitfalls?
3. What happens when allies turn into rivals?
4. How to set up a robust legal and financial structure while keeping flexibility?
5. What essential skills and qualities are needed in the leadership of a joint-venture?

I would love to hear your insights.