Well chosen and well documented strategic partnerships can be the making of a business and save a small fortune on cost of sale in the process through the focused sharing of resources, services, market shares and experience.
So it is worth taking time to explore how best they can be approached and implemented.
Some key points are as follows:-
● research the best strategic partner for the business in advance over time. One that compliments its offering and possesses expertise perhaps lacking internally. We explain the type of compatibility exercise required in our previous post entitled "Break Time Quickie - The Importance of a Stressbusting™ “WTP” Analysis" and the value of thorough research is addressed in our post entitled "Never assume your 1st search engine result will give you the information you are looking for!" Membership of and circulation within trade bodies and networking groups may assist this process, which is definitely not one to be rushed
● ultimately, as is the case with any close relationship, you will rarely get out of a business strategic partnership more than you put in. So identify and work hard to maintain focus not only on what your partner brings to the table for you, but also, by listening, establish what you can bring to them - see our post entitled ""The Universe gave us 2 ears and only 1 mouth for a reason"" for further insights in this respect. If the partner is a much bigger organisation, do you for example bring a niche expertise or a more personal approach that they lack? If your partner is smaller than you, can you leverage your greater buying power to assist them? Performing this proactive exercise will invariably mean you derive more in return over the longer term
● determine and clearly narrow down the specific joint and common overriding objectives for both sides for the partnership. It might even be worth defining these in your contract as a point of mutual reference that can be referred back to in the whole
● do not make the contract long winded. A genuinely synergistic partnership with truly common aims should be capable of being documented in no more than 2-3 pages
● don't forget to secure confidentiality in respect of any aspects of your operations requiring that protection, such as proprietary know how and processes
● equally, ensure you are entitled to share any data you propose to share under relevant regulations - see, for example, our post entitled "Register & safeguard Data to maximise its value"
● only agree exclusivity in regard to elements of the partnership if you are extremely confident it will service the entirety of your needs in so far as it's contents are concerned
● elect key human points of contact and accountability on all sides of the partnership. And, critically, ensure these are senior enough at all times to further the joint common objectives on a timely, opportune basis without undue delay or red tape. In this regard be mindful of the benefits of experience as elucidated in our previous post entited "Leverage the Stressbusting™ Wisdom of Age"
● recognise from the outset that, regardless of potential and commitment, all relationships have their ups and downs (business relationships are no different to personal ones in this respect - see, for example, our post entitled "Never Separate or Divorce In Haste to Stressbust™"). So agree and document a dispute resolution procedure which does not simply fall back on litigation. The reasoning for this is contained from our post entitled "The Dangers of Litigation to Corporate StressBusting™"
● make the duration of agreement and its termination provisions are realistic to the joint overriding common objectives and account for the inevitable ups and downs described above. A strategic partnership agreement terminable for no reason by either party on a week or even a month's notice, for example, can hardly be described as "strategic" at all!
● agree and maintain regular partnership contact and reviews of progress so mutual feedback can ensure the agreed joint overriding common objectives are being targeted efficiently or achieved. See our post entited "Break Time Quickie - Stressbusting™ Allies to Keep Close" for further context.
And finally, bear in mind that a strategic partner could end up being a potential business sale, purchase or merger opportunity.
So try to approach the exercise throughout with this mindset, as there may become a point where such a course makes more commercial, legal and overall business sense to both or all partners, potentially at a point when the partnership appears to be flagging most. Look out for the issues of business sale, purchase and merger being covered by us in greater detail in their own dedicated post over the weeks ahead.
It has been said that the only ship destined to sink eventually (after, of course, it has run its useful course and purpose!) is a "partnership". But the above steps can help create a roadmap and modus operandi that enables the strategic relationship to be given the attention it merits, thus providing a visible measurement gauge for all parties, space for continued improvement and adaption, and the opportunity for the partnership to be reframed or reinvented as and when the parties or market needs dictate.
If you can relate to the contents of this post and would like us to assist further or make an introduction to a specialist who might be able to as appropriate, feel free to reach out to us in confidence via our "Contact" page.
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