Glenn Williams

by Glenn Williams


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Forward thinking partnerships

"The trouble with our times is that the future is not what it used to be.”[i]

Much could be said about our changing world—economic volatility, political and civil unrest, epic levels of national debt, corrupt governments and the impact of new technologies on the labor market. 

While not exclusively, there is no doubt that the online world has also pushed many organizations into markets they never intended to be in, but now find themselves under pressure to respond to. Donald DePalma calls this, ‘The Eighth Continent.’[ii]

Many leaders, however, have been caught unprepared and untrained for such severe business scenarios, which often leads them to search for strategic partners who carry expertise in areas where they are weaker.

They are looking for synergistic or complementary relationships where the value chain can be strengthened. However, when expanding across geographical boundaries, leaders must think very carefully about their strategy and the implications of extending their operational ability into emerging markets they are not familiar with. Strategic alliances rise and fall, often on seemingly harmless differences.

Some organizations claim to be global merely because they operate across geographic boundaries, but as Manfred Kets De Vries points out, their decision-making hierarchy, authority and power continue to be centralized locally.

While organizations must have ‘culturally competent leaders’, De Vries highlights the importance of organizational qualities to increase chances of success in a global marketplace. He recommends organizations rate themselves on the following statements:

  • To create an overall corporate ‘glue’, our organization devotes a large share of its resources to global executive development;
  • Global experience is considered essential to a successful career in our organization;
  • The power of our subsidiaries is considerable; and
  • Non-home-country executives are well-represented on the board[iii]

What’s the bottom-line?

It is a good idea for leaders and organizations to develop some criteria to help them assess the value and nature of the partnerships they are looking for as they seek relevance and sustainability. In addition to the questions above, it’s healthy to clarify the following –

  • Define the purpose of the partnership. Consider a joint mission statement that aligns with your mission. Is it compliant with your brand and the message you want to communicate with your supporters, customers, and stakeholders?
  • Define the relationship. What are you seeking and what are you hoping to contribute? Don’t be naïve about the weaknesses and strengths that exist on both sides.
  • Define the scope of the project. What are the desired outcomes? Is there agreement on how they will be measured? Are there finite bookends to mark the duration of the partnership? Clarify expectations of each other.
  • Conduct a financial and legal review of the partnership and understand up front what risks may exist.
  • Have an exit strategy if things don’t work out.

The world has changed. The value of partnerships has not.

 

[i] French Poet, Paul Valery (1871-1945).

[ii] DePalma, Donald A. Business Without Borders: A Strategic Guide to Global Marketing. Massachusetts: Globa Vista Press, 2004. xi.

[iii] De Vries, Manfred, Kets. The Leadership Mystique: Leading Behavior in the Human Enterprise. Harlow, England: Prentice Hall, 2006, 186.

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