10 questions to help make your strategic partnership successful
I often hear a lot about strategic partnering through LinkedIn group forum discussions. So I decided about a week ago to write a quick blog on what the key ingredients for success are and then turned them into the following 10 questions....
How does the partnership fit into the bigger strategic picture? The partnership is important in itself but should be seen in the context of other partnerships and other strategic activities. Are there under-exploited synergies or conflicting objectives?
Have you won the hearts and minds of your partner(s)?
Cultural fit is often as important as financial fit and is often over looked. Be sensitive to cultural differences – whether between organisations, industries or countries. The “softer issues” are often the most difficult to tackle, but the most lucrative when you get them right.
Are you operating in your comfort zone? Identify the most difficult relationship or aspect of the partnership structure and prioritise effort in that direction. Don’t just stay in the comfort zone.
How well do you really know your partner? Anticipate and evaluate your partner’s value proposition - get inside their head. It will help avoid surprises and enable a solution that works for both parties.
How well have you defined and monitored KPIs for the partnership? All businesses react to performance metrics, and so it’s important that both parties agree on both “what” to measure but also “how” to measure it.
How much analysis and evaluation are you doing? Analysis and evaluation makes you more confident, agile and sensitive to differences in culture and approach, avoiding misunderstandings. Remember, however, not to enter into an analysis/paralysis mode, as momentum is critical.
How constructive are you being in your negotiations? Framing the proposition in a positive, constructive manner makes a huge difference – ‘take-it-or-leave-it’ deals may appeal, but risk alienation and relationship breakdowns.
How many unanswered questions do you have? Always raise questions or issues that have come from the analysis and preparation you have conducted – the path untrodden may have been paved with gold, or at least been an easier journey for all parties.
Are you prepared for disagreements? Establish review and dispute steps in the negotiation and implementation process early on – it avoids the potential for litigation and opens up new possibilities for challenge and improvement.
How much sponsorship do you have from all stakeholders? Communicating benefits along the way helps to keep up momentum and increase sponsorship within the parent companies – it also keeps spirits up when times get tough (which they will, at some point!).
Dee Singh Kothari is a senior partner in Kothari Partners
Ideas expressed and/ or methodologies in this article are solely of the authors. The author nor Kothari Partner’s accept any liability for the incorrect application of these ideas either used by companies, employees or other individuals alike.
At Kothari Partners, we have worked with various UK and overseas listed and PE/ VC backed clients across various industries to consider how their business and finance services can bring them both cost reductions and performance improvement. Our approach is to help our clients understand their current situation, identify the value and decide on the scope, vision and set of strategies for what they could achieve for their business. We help plan their implementation and support them and deliver the solution/ change needed, so it is properly and permanently embedded in their organisation. We aim to help past and future clients by delivering high-quality work to their organisation, generate real efficiencies and free up time to support better business decisions.
For a confidential discussion please free to contact us, via our corporate website: https://dipakagkothari.wixsite.com/website