What are
Business Partnerships? We think the answer to these, and other, questions lies in the fact business partnerships are often ill conceived, poorly structured, without measures, and not mutual in nature. To answer the questions we raise, lets first take a look at what a strategic
business partnership is. Underlying this definition there are a number of components for successful partnerships. Everybody contributes. This means that every person or organization in the partnership makes a contribution they are able to make and sustain, and that the other parties to the partnership find acceptable. This does not mean everybody has to make the same contribution; it does mean everybody has to feel good about the contribution they make and everybody feels good about the contribution all other parties make. Everybody shares risks. This component of a successful partnership is often overlooked until it is too late. It is often said that the level of your reward is measured by the level of your risk. If this is true (and we think it is) then risk must be clearly understood and agreed to by all parties involved in the partnership – up-front. Each partner needs to understand every other partner’s “skin in the game”. And while risk does not have to be the same, it does have to be valid in the context of the rewards each partner expects to reap. A sure way to destroy a partnership is to have risk too great for the rewards realized. Everybody wins. Winning is usually a very personal thing. In partnerships, winning CANNOT be at the expense of any other partner. If it is, the partnership will fall apart. In fact, this often happens, where one partner feels they are contributing something of value but getting nothing in return. Winning, then, is whatever thing of value each partner gets (and feels good about) that all the other partners feel is valid. Winning is reciprocal – but, like contribution, it is not the same for all partners. The key is that the ‘win’ has value, for each of the partners on their own terms and on terms okay with all the other partners. The idea of winning in a partnership needs to be clearly understood at the outset of the partnership agreement. And, equally important, how wins are measured must be enthusiastically endorsed by all parties to the partnership. Donald Treinen, Co-Founder |