Why do some partnerships work and others do not?
Commitment to continual care and feeding of the respective relationship along with a jointly packaged solution that can resonate with your respective clients.
Eleven years ago, my team formed the first three legged partnership with the largest firms in the valley at that time. Management targeted $5M revenue in the first quarter and we actually achieved $50M. The following year we formed the first global independent carrier partnership that lead a friendly merger (five years later) and the third company was able to increase Venture Capital funding by 28% in the following round. Overall the partnership wildly exceeded all forecasts by delivering a first year revenue equal to that of our 3rd year plan. Obviously, not all partnerships work out so well though.
In setting up partnerships too often the focus for both companies is getting the partnership done, not on the ROI return that is required for each other company in the relationship. Each partner must have a win-win relationship. Each partner must see a path to immediate value and the sales teams a reason to do business together that will ensure a successful sale/client. At the end of the day, C level agreements do not make the partnership work; it is the individual sales team members of both companies seeing and delivering unique value for themselves and their clients. It is literally the feet on the street who control the ultimate success….and carry the vision from the C suite.
Created effectively partnerships can offer incredible immediate benefits to all concerned. They can elevate your brand and deepen client relationships where they may not already exist. They can also foster stronger organizational ties, allowing for cross pollination of executives and team members, build the relationship to a joint venture level or in some cases even enable an outright purchase of one company. When managed with executive support from both companies assigning vice presidents/directors on behalf of their respective organizations, partnerships should thrive. Step One- Set goals and targets, Step Two- Set your strategy. Step Three – Focus on execution with weekly meetings. In other words---Formalize your partner initiatives.
Commitment to continual care and feeding of the respective relationship along with a jointly packaged solution that can resonate with your respective clients.
Eleven years ago, my team formed the first three legged partnership with the largest firms in the valley at that time. Management targeted $5M revenue in the first quarter and we actually achieved $50M. The following year we formed the first global independent carrier partnership that lead a friendly merger (five years later) and the third company was able to increase Venture Capital funding by 28% in the following round. Overall the partnership wildly exceeded all forecasts by delivering a first year revenue equal to that of our 3rd year plan. Obviously, not all partnerships work out so well though.
In setting up partnerships too often the focus for both companies is getting the partnership done, not on the ROI return that is required for each other company in the relationship. Each partner must have a win-win relationship. Each partner must see a path to immediate value and the sales teams a reason to do business together that will ensure a successful sale/client. At the end of the day, C level agreements do not make the partnership work; it is the individual sales team members of both companies seeing and delivering unique value for themselves and their clients. It is literally the feet on the street who control the ultimate success….and carry the vision from the C suite.
Created effectively partnerships can offer incredible immediate benefits to all concerned. They can elevate your brand and deepen client relationships where they may not already exist. They can also foster stronger organizational ties, allowing for cross pollination of executives and team members, build the relationship to a joint venture level or in some cases even enable an outright purchase of one company. When managed with executive support from both companies assigning vice presidents/directors on behalf of their respective organizations, partnerships should thrive. Step One- Set goals and targets, Step Two- Set your strategy. Step Three – Focus on execution with weekly meetings. In other words---Formalize your partner initiatives.
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