Power PartnershipsPower Partnerships

Delivered by Walt Wright @ theDelivered by Walt Wright @ theTiETiE--Boston Business SummitBoston Business Summit

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When times are toughWhen times are tough……

People seek powerPeople seek power

And misery loves companyAnd misery loves company

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Define the term partnershipDefine the term partnership

Explore the conditions that support partnershipsExplore the conditions that support partnerships

Explain the partnership processExplain the partnership process

Explain the skills and knowledge needed for effective partnershiExplain the skills and knowledge needed for effective partnershipsps

Identify the most common problems that partnerships faceIdentify the most common problems that partnerships face

Explain how experience tells us these problems may be overcomeExplain how experience tells us these problems may be overcome

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What is a Partnership?What is a Partnership?

Why Lawyers donWhy Lawyers don’’t like the word?t like the word?

Where does the Power come from?Where does the Power come from?

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the nonthe non--partner Partner languagepartner Partner language ……..

Legalese to the extremeLegalese to the extreme……..““The use of the wordThe use of the word ““PartnerPartner”” in this Agreement means ain this Agreement means aparty to this Agreement and does not create a partnershipparty to this Agreement and does not create a partnershipbetween the parties. Furthermore, each Partner shall havebetween the parties. Furthermore, each Partner shall haveno partnership or fiduciary obligations to the other Partnerno partnership or fiduciary obligations to the other Partneror any other obligations, duties, rights or privilegesor any other obligations, duties, rights or privilegesimposed under the Uniform Partnership Act or any otherimposed under the Uniform Partnership Act or any otherapplicable law, except as expressly provided under thisapplicable law, except as expressly provided under thisAgreement.Agreement.””

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Strategic AlliancesStrategic Alliances

““We showedWe showed MonopolySoftMonopolySoft our Proprietaryour ProprietaryBusiness Model and they really liked it.Business Model and they really liked it.””

““We are partners.We are partners.””

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A PWC study showed that 43% of the companies that launchedA PWC study showed that 43% of the companies that launchedbreakthrough services and products did so with outsidebreakthrough services and products did so with outsidecollaboration.collaboration.

““It's a very lopsided picture in favor of companies with one orIt's a very lopsided picture in favor of companies with one ormore strategic partners,'' says Pete Collins of PWC.more strategic partners,'' says Pete Collins of PWC.

““A good rule of thumb is that a good strategic partner canA good rule of thumb is that a good strategic partner candouble the value of your company,'' says James Atwell of PWC.double the value of your company,'' says James Atwell of PWC.

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What are the objectives?What are the objectives?

RevenuesRevenues

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Long termLong term

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Access to technologyAccess to technology

SalesSales

Cross selling, up sellingCross selling, up selling

Use of sales forceUse of sales force

Free mentoringFree mentoring

Image credibilityImage credibility

VCs think it is a goodVCs think it is a goodideaidea……..many times it is..many times it is……....

Practice working on a bigPractice working on a bigdealdeal

Feedback in productFeedback in productdevelopment, IP value, evendevelopment, IP value, evenstrength of teamstrength of team

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When you team up with another business, one plus one can equal tWhen you team up with another business, one plus one can equal three.hree.

Companies of all sizes are forming strategic alliances.Companies of all sizes are forming strategic alliances.

You can look and act bigger than you are.You can look and act bigger than you are.

Accomplish what you can't aloneAccomplish what you can't alone----often more quickly and profitably.often more quickly and profitably.

Can be an effective way to pool resources and cut costs.Can be an effective way to pool resources and cut costs.

Can help your product get to market more quickly.Can help your product get to market more quickly.

By filling the blanks, a group of companies can offer up new proBy filling the blanks, a group of companies can offer up new products.ducts.

You don't have to hire more people than you need or develop costYou don't have to hire more people than you need or develop costly inly in--househouseexpertise.expertise.

Partnerships let you stay nimble and flexible, bringing in the rPartnerships let you stay nimble and flexible, bringing in the right players foright players forthe job at hand.the job at hand.

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Analyze where a partner might help.Analyze where a partner might help. Are you shut out of certain markets or contracts?Are you shut out of certain markets or contracts? Do you need a specific function, talent, resource?Do you need a specific function, talent, resource?

Explore the relationship carefully.Explore the relationship carefully. Make sure capabilities and strengths are complementary.Make sure capabilities and strengths are complementary. Document clearly and use a lawyer.Document clearly and use a lawyer. How will you divide authority, duties, and costs?How will you divide authority, duties, and costs? Express your goals and expectationsExpress your goals and expectations----and create plans andand create plans and

benchmarks.benchmarks. Protect yourself. Your intellectual property and proprietaryProtect yourself. Your intellectual property and proprietary

information and operation autonomy need protection.information and operation autonomy need protection.

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Alliance AgreementsAlliance Agreements

Joint VenturesJoint Ventures

Creeping AcquisitionsCreeping Acquisitions

Licensing AgreementsLicensing Agreements

CoCo--Marketing AgreementsMarketing Agreements

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Middle management/senior managementMiddle management/senior management

Different objectivesDifferent objectives……personalpersonal……divisionaldivisional……..

Tie up the tech while they look for better orTie up the tech while they look for better ordevelop their owndevelop their own

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keep the goals in linekeep the goals in line

acknowledge the riskacknowledge the risk

focus on the opportunityfocus on the opportunity

realistic and pragmaticrealistic and pragmatic accessmentaccessment

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Stockholm SyndromeStockholm Syndrome

Pay attention to groupthink & your teamPay attention to groupthink & your team’’sspsychpsych……Not a marriageNot a marriage……and thatand that’’s a goods a goodthingthing

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Till Death Do Us PartTill Death Do Us Part……does somebody have to die?does somebody have to die?

Make sure theMake sure the ““Divorce LawDivorce Law”” is properly drafted withis properly drafted withforesight, detachment, and fairnessforesight, detachment, and fairness……

WrightWright’’s Objective:s Objective: ““Opportunity to be generous andOpportunity to be generous andthe right to be ruthlessthe right to be ruthless””

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