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What
are Business Partnerships?
This is a seemingly obvious question with an equally obvious answer.
So, why do so many businesses have such a difficult time developing
strategic business partnerships, and then sustaining them?
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.
A definition we particularly like: People working together for common
purpose with an outcome whereby "everybody wins” and
everybody involved benefits in a way that makes sense to them.
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, Partner
Dynamic Destiny Partnerships, llc
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