Creating Strategic partnerships can be a great idea; you might need a partnership to e g increase revenue, reduce cost or gain speed/faster time to market. The Strategic partnerships are often of vital importance to your company’s success since the purpose is to share risks, increase speed, access know how, build market presence/acceptance, and/or sharing resources/costs.
But then there are times when they simply don’t work out. Maybe it’s because the partnership hasn’t met certain expectations or goals. This could result in consequences like disappointment, hurt relations and loss of market shares. Reasons to have reached a point like that can vary, but there are some great things both parts can do in advance to make sure to avoid a scenario of failure. If you are curious to find out things to keep in mind before stepping into a partnership, we highly recommend you check out our Block “Creating Partnership”.
There are several reasons why the partnership doesn’t turn out as expected. Look out for these red flags:
- Lack of vision; why do you need a partner? know-how? geographical coverage? market access?
- Different ideas, purpose, and goals regarding the partnership; do you see it as a strategic partnership but your partner doesn’t?
- Conflicting business cultures/values amongst the parties, which ultimately can hurt your brand
- Badly negotiated contract where there is no win/win; in a strategic partnership, both parties need to be winners
- No true ongoing commitment amongst the parties. No matter how good the intention is before signing, the true commitment starts to show when the ink is on the paper and the real job begins.
- Not enough dedicated resources to nurture and drive the partnership.
Creating partnerships can be tricky, which is why there are many more hints, tips and advice on the Rebbel Mountain ‘Creating Partnerships’ Block. We look forward to seeing you inside!