In a partnership, business objectives and goals can be achieved through mutual understanding and cooperation. Not only are managers and owners supposed to be skilled at negotiating, but they should also be equipped to set up mutually satisfying and positive goals with their partners. This would enable them to build their own, as well as their partners capacity, skills and capabilities.
Top Five Factors that enhance successful business partnerships are:
1. Understanding the purpose behind the partnership – In the world of business, successful partnerships can be developed and maintained by focusing on mutually beneficial goals and objectives. However, compatibility between the partners is of utmost importance. Compatibility can be predetermined by creating a common value base. This value base must be thoroughly explored in an open and honest manner and it must be understood and documented by the all the parties. Partnerships can be successful if the partners share a common value base and vision.
2. Creating commitments for the partnership – Commitments and agreements form the basis for any successful alliance or partnership. Agreements should be created by employing a shared or joint effort and to target mutually profitable schemes. Once an understanding has been reached at the initial stage, plans must then be developed to allocate roles, accountability, responsibility and primary objectives. A time frame should be set, for the completion of all the tasks.
3. Having Realistic expectations – Communication is extremely important in any kind of partnership. Partners, by talking openly and honestly with each other, can manage the relationship in most profitable way. Expectations should be spelt out so that issues could be ironed out in advance, before they disrupt the business operations. By openly sharing skills and knowledge, partners can benefit the interests of each other.
4. Managing risks – Risk management and business development are two extremely important issues to be considered, when indulging in a partnership venture. There should be an effective dispute resolution process, by which partners can master the art of resolving conflicts and managing risks that are bound to result from the partnership. By recognizing these risks and their probable causes, business partners can prevent them from recurring.
5. Establishing the partnerships shelf life – It is very important for successful business partners and good leaders to evaluate and review the progress of the partnership. By setting dates for meeting targets and achieving results, the partnership can prove to be very profitable. However, it is very important for partners to know when to withdraw from the partnership and part ways, for mutual benefit. Defining a shelf life for the partnership is crucial. There is no point in being part of a partnership that is no longer beneficial.
Nevertheless, the principle objective needs to focus on managing and sustaining the partnership. A communication and conflict resolution system must be established, along with an efficient decision making mechanism. Successful partnerships are always founded on trust. A trusting relationship is one of the biggest trademarks of a successful partnership management and governance. Developing successful partnerships requires a trained mindset, by both parties.