Better Together: The Art of Building Valuable Partnerships

Kris J. Lichter (MBA ‘97)

Co-Founder & Principal

DuMonde Ventures

Image: Copyright Paramount Pictures

A rose by any other name –

what is a partnership?

Two or more organizations, teams or

individuals coming together to

achieve a common goal

External or internal in nature

Singular in scope or multi-faceted

Of any duration

Often formalized by a contract or

guiding documents

Why do two parties partner?

Combine their respective offerings to better address a

market or audience need

Development of a new product, service or solution

Joint marketing and communications

Enter or expand in a geography, industry or segment

New market development

What are the potential benefits?

New customers and revenue streams

Increased sales

Expanded market share

Competitive differentiation

Brand equity boost

Improved stakeholder satisfaction

Reduced resource requirements for a given offering or market

More partnership opportunities, mergers, acquisitions

If it’s so great, why doesn’t

everyone partner?

Organizational culture,

mode of operation

National cultural norms

Fear of commitment

Liability concerns

Cost

Complexity of

cooperation

Overinflated sense of

relevance

Lack of vision

Getting started – communicate

Spend quality time establishing a clear common purpose or set of goals

Make sure you listen to the other party’s point of view –you’ll either understand where they’re coming from now or you’ll learn it later (perhaps too late)

Determine the potential value and requirements of a potential partnership – this establishes scope

Start small, grow big vs. multifaceted or even multiparty

Be honest, be open and be realistic!

Note: the above should not be confused with constructing a contract or negotiating terms and conditions

Considerations & components

Point of contact (single or by area of responsibility)

Operating responsibilities

Process and procedure flow

Budgets, resources

Milestones

Timeline

Ownership

A word on contracts and negotiating

Contracts are not guiding documents –

they are instruments of last resort

Gather all stakeholder and sponsor inputs

and requirements early (pre-negotiation)

Communicate internally throughout the

negotiation to avoid surprises

Mind games and other ‘negotiating tricks’

are simply a waste of everyone’s time –

don’t do them

• Seek the ‘rock bottom’ moment. Don’t avoid it.

• It’s the true beginning of the negotiation’s end (and the beginning of the actual partnership).

Day-to-day teaming tips

Having exceptional people as the leads will make great relationships sing and shaky ones more solid

Practice constant, fluid communication - an ounce of prevention is worth a pound of cure

Devote substantial energy to getting to know your partners and make it a regular investment

A great team isn’t restricted by organizational lines

In rough times, don’t default to the contract – a ‘clean sheet of paper’ conversation better enables the parties to find a way forward

Finding operational balance

Each organization will bring its own operational bias

The best partnerships enable and capitalize on the

leveraging of each organization’s natural strengths in

these areas

Geography

Product

Technology

Branding

Clients

Executive

Assessing the ongoing partnership

Are we achieving our shared goals?

Secondarily, are we achieving our individual goals?

Do we remain philosophically-aligned?

Where is the combination weakest?

Is our respective leadership committed?

How is the partnership being received and perceived by our stakeholders?

Are there new areas of potential emerging?

It’s a marriage – treat it like one

Throughout the life of the partnership, jointly seek

continuous improvement - it will pay dividends

Don’t take the other side for granted, and work to

understand their ever-changing point of view

Routinely assess achievement against the original goals,

and current realities, and adjust milestones and/or

expectations

Again, constant, open communication is critical to success

This includes to all sponsors and stakeholders

Consider using external feedback on the partnership to hone

strategies, goals, timing or tactics

Thanks!

Kris@dumondeventures.comkjl3@georgetown.edu

858-243-1608

..And don’t forget to co-brand!