Art of Partnerships (2): Tips to convert your Business Relationship into a Partnership

The best marriages are partnerships, not just relationships. In business, it’s the same.

Most business relationships just exist — people don’t think about how they could be improved. But your business could benefit from turning your key three to five relationships into true Partnerships. It’s about turning a zero-sum game, where each party looks out for its short-term interests, to a win-win situation, where parties seek mutual long-term success. Impossible? Read on!

In the first post, we discussed different types of business relationships and the value of transforming them into Partnerships. This post will discuss how to convert a business relationship into a Partnership. It’s kind of like trying to get your best friend to become your boy/girlfriend.

The Goal of a Partnership

A relationship becomes a Partnership when both parties begin to seek solutions that serve the long-term interests of each other; not just their own.

The following elements are necessary for a Partnership:

These elements are necessary to create a Partnership — all anchored by a sense of Share Destiny between the partners.

1. Understand Each Other, Deeply: It’s more difficult than it sounds. Real partners need to get beyond their own perspective and understand how their partner sees the world. If AOL is working with a start-up on a Proof-of-Concept, AOL needs to realize that the quick execution of the POC means the world to the start-up. Conversely, the Start-up needs to realize that it must take unreasonable steps to stop gambling advertisements from appearing on AOL’s websites. Sensitivity to your partner’s needs is key. You spend your working day inside your company which makes it harder to see things from anyone else’s perspective.
2. Contribution: Each partner must contribute something attractive enough for the other party to want the Partnership. Then your partner will realize that they can achieve more by working with you than they can alone.
3. Shared Destiny: Each partner must be willing to work as if both companies have a shared destiny and recognize that their partner’s success serves their interests. Then partners will work for the success of the other.
4. Show Vulnerability: Partners put themselves in vulnerable positions. They may share sensitive information that, would cause damage if leaked or they publicly associate their brand with yours which means that fouls they make (say, cheating on car emission tests) rub off — a little — on you.
5. Make Sacrifices: Partners must be willing to make short-term sacrifices or bend the rules to help out their partners. This focuses on the long-term which means a willingness to experience short-term pain.

How to transform my Relationship into a Partnership

You’re sold on the need to transform your key 3 to 5 relationships into Partnerships. But how can you effect this transformation? Follow these steps:

1. Deliver: Understand what you uniquely, bring to the Partnership. You may be surprised that it isn’t the widget you supply but your payment terms or service. Focus on providing this contribution exceptionally well…and then capitalize on it into new, related areas that the partner never thought of. Don’t get distracted by other elements of the relationship.
2. Synchronize: Understand your partner’s broader strategy and goals — is it mobile, IoT, wider distribution — and show how your business can help them get there. If you can help your partner achieve their long-term goals, it will keep the Partnership relevant, for longer.
3. Be the First to Sacrifice: Show a willingness to be the first one to make short-term sacrifices. I once offered the help of my developers and sales network to support my partner’s product road map. It transformed the relationship. Someone had to be the first to jump. It’s a risk. But when you do, your partner realizes that you’re committed to the Partnership and they’re more likely to reciprocate.
4. ASK!: Nothing brings commitment from people as much as asking for it. After you offer to make a sacrifice, make it clear that your partner realizes that you’re making the sacrifice because you want to build a true Partnership. Then ask them “Is that the kind of Partnership you guys are looking for?”

YOUR CHALLENGE

This week, identify the 3 to 5 relationships you want to transform into Partnerships and ask yourself:

• Am I willing to invest the time, money and resources necessary to transform this relationship into a Partnership?
• Do I understand the other business well enough to identify the contribution I make to their long-term strategy?
• What long-term value will I derive from getting closer to this partner?
• What am I willing to sacrifice to prove that I’m committed to this Partnership over the long-term?

Click here to read the third post: Art of Partnerships (3): Techniques to grow your POWER