Mastering the Art of Partnerships
In his book “Good to Great,” Jim Collins shares the idea that having the right people on the bus is a key element to the sustained success of a business. Collins shares that success hinges on having the right people on the bus, a philosophy that extends seamlessly to the realm of partnerships. As businesses increasingly entrust critical functions to external allies, the ability to assess, select, and manage these partnerships emerges as a crucial skill, capable of shaping the future of an enterprise.
Having immersed myself in this world for the past 15 years, the truth is stark: not all companies or partnerships are created equal. Navigating the partnership landscape mirrors the intricacies of dating, demanding a blend of trial and error, mutual understanding, and a shared journey toward a harmonious destination.
In a bid to spare you the awkward first date jitters or the inevitable “it’s not you, it’s me” conversations, I’ve crafted a cheat sheet. Consider these four essential factors before embarking on your quest to find the ideal partner or when evaluating the consolidation of your existing partnerships.
Articulating Your Key Goals
It’s imperative to understand what you are trying to accomplish before embarking on your evaluation. Too often, companies let their partners dictate their strategy through the capabilities they have, rather than their own goals dictating the right type of partner.
Understanding the key reasons you are outsourcing at all is key; are you looking to fill a niche skills gap, increase operational scale, or improve service for your new remote office; all of these require a different DNA of service provider and should lead you to ask different questions.
2. Evaluate Organizational Culture
Every company has a different culture and culture is not static. Through my experience I have seen different cultures respond very differently to the exact same set of services. Preferred means or style of communication, how teams are encouraged to deal with problems, or the distributed (or centralized) nature of the teams all impact what services will be impactful across the broader teams.
Just like evaluating a new hire for fit in the culture, it’s key to apply the same rigour to service providers and their teams delivering the services before making any big decisions.
3. Understand ‘Where You are Going’
Companies, just like people, change and grow and it’s possible to outgrow some of the partnerships in place when you started your journey together (or your partner has outgrown you). It’s critical to understand the trajectory of both yourself and key partners to make sure that you are in sync, and evaluating objectively when it becomes clear that there are different objectives.
4. Quantifying (and Delivering) Short-Term Wins
Finally, any transition will have its challenges. As a leadership team, it’s key to understand some short-term wins that will help build momentum, trust and excitement along the way. This is more specific than a tactical delivery plan and has the opportunity to build genuine excitement and connection.
Taking the opportunity to listen to teams in advance and get a strong sense of what they require is imperative to maintaining momentum. Understanding things they have and want to retain, need to do their jobs and new things they want will make a difference that can create specific wins that are tied back to your team!
Closing the feedback loop by accomplishing these specific personal wins, in line with the overall strategy, will create raving supporters along the way.
The consistent evaluation of the team that is in place is a key element to delivering long-term success. Ensuring you have the ‘right partners on the bus, in the right seats on the bus,’ is not a static decision, but an ongoing practice. The above are questions that need to be asked as both companies and partners evolve. Having incredible partners can accelerate what you are doing, give you exposure to some of the innovations of the broader industry and bring niche skills, and if the right ones are present, then the possibilities are endless.
Collins, J. (2001). Good to great: Why some companies make the leap and others don’t. HarperBusiness.