Partnerships
It sometimes fascinates me how buzz words become part of everyday vernacular. In the past twelve months the concept of partnerships has been interwoven into so many conversations, that one cannot simply walk down the street without entering into three or four partnerships. Searching for 'partnerships' online doesn't clarify the issue much further with more fifty two million entries through Google and in excess of two thousand jobs advertised on Seek. Sarcasm aside, for the most part the expression refers to a relationship between parties. However, a true partnership is far more extensive and powerful upon further inspection.
Partnerships by their very definition imply that there are rights and responsibilities for all parties involved. However, unlike strict legal contracts whereby a breach of a clause can result in long-winded legal battles whereby almost all parties tire through attrition, partnerships are more conducive to mutually beneficial working outcomes.
For many of the world's largest and most successful businesses, this is not a new concept. For many years businesses, particularly in manufacturing, have worked with vertically integrated suppliers to improve lead times, reduce waste and improve the quality management process. This has been further supported through integrated inventory and work-flow computerised systems.
But why has a new era of transparency arisen amongst many stakeholders? Are competitive advantages lost? The fact remains, business, in fact every aspect of society is interdependent. The weakest link has the potential unravel agreements. The automotive industry has demonstrated this on numerous occasions whereby a dispute or reduced production in one supplier can result in the cessation of operations for a plethora of businesses: locally, nationally and internationally. More specifically, when all parties perform effectively, the ensuing results add value for all; not just a few.
The very notion of partnering implies that there is some gain for all parties. There are vested interests and expectations that need to be acknowledged and managed upfront when partnering. Communication strategies need to be agreed upon. Financial commitments should be clearly stipulated. Key Performance Milestones and grievance procedures should be addressed. Additionally, the need to document partnerships is imperative to ensure true commitment by all parties and most importantly succession planning.
Partnerships can give businesses strategic and competitive advantages. In fact, the concept of partnerships or strategic partners has arisen in numerous contracts and marketing paraphernalia emphasising the interest by the community at large. Nonetheless, for many partnership consultants, managers or brokers, the process largely becomes an in internal role and thus bias in the whole process is inevitable. External brokers can alleviate and mediate such situations with increased objectivity to achieve mutually beneficial outcomes.
John Watters, Executive Officer - ParraSIPGWP Magazine Issue #30, May-June 2010
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