79% of strategic business partnerships fail.
Sorry, I just made that up since no two online stats matched. How can you improve your company’s chances of success?
The definition of “partnership” also varies, so I’m writing about two independent companies sharing tangible or intangible assets – like client lists, business networks, technology, and brand reputation – to improve individual results.
I wish I had the magic formula for success, but here are some elements of the more successful partnerships I’ve developed over the years.
- Well-defined goals– includes your rationale for exploring partnerships, plus mutual partner expectations.
- Compatibility – alignment of values, culture, and standards. Reputations are at stake, so there also needs to be mutual trust.
- Transparency – open and honest communication, and willingness to quickly resolve issues.
- Mutual value– although both companies may derive different value. I prefer it when no money changes hands, but that’s not always realistic.
- Written agreement– outlining roles, responsibilities, and requirements, at a minimum, to avoid future conflict.
- Assigned ownership– someone at each company is responsible for the relationship’s success.
- Activation plan– signing an agreement is just the start. Generating (and maintaining) desired results takes a lot of ongoing effort.
- Joint marketing – both companies participate in marketing activities. I like to lead where possible.
- Ongoing maintenance – regular results reviews and adjustments to enhance performance over time.
Strategic partnerships don’t always work out. It’s also important for the partners to recognize when the relationship is not meeting expectations. You can still be friends…
I hope this helps you build stronger and longer-lasting business partnerships. What success elements am I missing? Let me know.
