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Importance of Strategic Partnerships

Regardless of the industry in which your business operates, having an ally on your side in the form of a strategic partner will benefit your company. A strategic partnership or an alliance will give you a competitive advantage and an opportunity to access a broader range of resources and expertise. This means that the partnership can offer clients distinctive skill sets and product lines that are different from the competition.

Successful partnerships and alliances rely on the principle that the work involved in maintaining a partnership, and the benefits from the alliance are equally spread, rather than one partner carrying the load whilst the other reaps the benefits.

The best results from a strategic partnership generally occur when each partner delivers excellence in service areas that are different but related to the other partner(s) and where the partners are not adversarial in the market place. That way, by partnering up, each partner can focus on its strengths, whilst having reliable people in other organisations to cover the areas outside its expertise.

When entering into a strategic partnership or alliance, there is a lot to consider, however keeping the following tips in mind will help you on your journey:

  • Focus on Outcomes. It is important to know what you can, and are prepared to deliver, and what you would like in return from your potential partner. Approaching a partner without clear suggestions can cause them to lose interest before real negotiations have begun
  • Commitment. The level of commitment required from each party needs to be considered. The nature of your business, and that of the partnership or alliance will determine how much each party needs to give in order to keep the partnership or alliance healthy
  • Collaboration. The extent to which you will be happy to share resources with partners will need to be considered. Generally, the more collaborative the partnership or alliance, the more successful the endeavor is. However, it is also important to keep in mind that you are not merging with the partner organisation, rather you are forming an alliance and so total sharing of resources is not necessary
  • Communication. An emphasis on effective communication between partners is essential. Open and effective channels of communication between members of the partnership or alliance will ensure that there are no misaligned expectations between the parties.

Remember, that not every detail of operations can be planned for, and the success of the endeavor will depend on the amount of trust and communication between the parties. Contact Value Network to see how we can assist in establishing your strategic partnership or alliance. 

 
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