People create alliances, companies don’t. So, at the end of the day, it’s the human element that makes or breaks any forms of partnership, collaboration or alliance. A successful partnership isn’t just about the contract and the processes …it’s about people, relationships and trust.
After working with companies for over two decades on multiple forms of strategic collaboration and growth, I have uncovered 11 critical success factors that could make or break any partnership.
1. The Likeability Factor – Having great chemistry – People do business with people they know, like and trust. Decades of research proves that people choose who they like; they vote for them, buy from them, partner with them, marry them and spend precious time with them. You need to genuinely like and respect your partner.
2. The Compatibility Factor – Do you have similar values, culture, market footprint, marketing style…compatibility is extremely important as it brings a level of understanding and acceptance.
3. The Complementary Factor – A company cannot be skilled at everything; each one has its special excellence. In a partnership you need to complement each other in terms of strengths, capabilities and competencies (one of the most powerful reasons for teaming up is working with a company who is strong where you’re weak and vice versa – (here’s an interesting fact to keep in mind – our strengths are stronger and our weaknesses weaker than we realize).
4. The Commonality Factor – Vision/Goals/Expectations
A shared vision /goal is the foundation for all partnerships – when a partnership fails the root cause is often because people were pursuing different agendas or had different expectations. You have to be clear about what you want to accomplish, what you want to get out of the partnership, and all parties must agree before moving forward.
5. The Growth Factor – A Partnership, by its very nature, should create opportunities for positioning your company in a leadership or growth position. There has to be an excellent reward to risk ratio.
6. The Credibility/Reputation Factor – Your company can gain or loose credibility by the company it keeps – so don’t partner with an organization that would make your market and customers scratch their head about what the heck you’re doing being involved with such a questionable relationship or confuse your target audience as to what your value proposition is.
7. The Trust Factor – Trust between two collaborators is like the rope between mountaineers on a snowy ledge! Trust is the linchpin in any partnership, no trust no partnership. When there is trust both companies can concentrate on their separate responsibilities, confident that the other one will come through – never, ever partner with people you cannot trust.
8. The Fairness Factor – If you are getting grapes, you have a responsibility to make sure your counterpart is getting something better than cucumbers! No one likes to be taken advantage of, or get the short end of the deal. But fair doesn’t mean equal. All parties must feel that they are treated fairly and that they get out of the partnership what they need – in relation to what they have put into it.
9. The Communication Factor – If you just communicate you can get by. But if you skillfully communicate, you can work miracles! In the early stages of a partnership, communicating helps to prevent misunderstandings and to assure each side of the other’s trustworthiness. Later in the relationship, a continuous flow of information makes the work more efficient by keeping the two companies synchronized.
10. The Commitment Factor – Make sure that the other company is as committed as you are to the partnership and that the partnership is important to them as well. You can determine the level of commitment based on what each party is willing to invest in the partnership (time, resources, expertise, money…). You have to be certain that you have the support, the commitment and the resources necessary to getting the job done.
11. The Value Factor – Your partnership has to offer value to you, to your partner, and most importantly, to the end user customers or market you intend to serve with your joint offering (s) (product, program or service). The previous 10 critical success factors won’t matter unless you’re bringing to the marketplace something that has value and that your market wants and IS WILLING TO PAY FOR.
Use these 11 critical success factors as a checklist and run all your potential partnership through it. And be brutally honest as you do so. Ignoring those factors or cutting corners can only bring you hardship and lead to frustration or worst lost of revenue.
Have I missed anything? We would like to hear your thoughts and comments. Please share them with the rest of us.
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