Last updated 30 March 2023 ·
For any kind of partnership, whether a reseller agreement, affiliate or strategic alliance, there are several key components to consider for both parties to thrive. These key components directly influence the success of the partnership.
The famous four
- First and foremost, a winning partnership strategy must look beyond the deal’s closure and consider the relationship that will follow. This involves addressing how to resolve conflicts, manage issues, and exit the partnership if it becomes impractical. Setting a solid strategy requires partners to align around three questions:
- What should the partnership achieve?
- What gaps need to be filled?
- What opportunity should be capitalised on?
- Partners must define the financial incentives for achieving the strategy, as well as establish metrics for monitoring performance. Success also requires having the right governance structure in place. The partners must consider how much control they want to exert versus how much flexibility they want to offer the partnership agreement.
- Effective communication is also essential to success. Communication among partners requires trust building, frequent contact, and the development of a relationship that helps navigate tensions during challenging times.
- Partnerships can sometimes involve complex cultural issues. Typically, a strategic alliance brings together two established companies with their own communication styles, cultures, and ways of doing things. The partnership must combine these identities into a purpose-built entity with a new strategy, scope, and structure.
Recommendations
Given these complexities, some partnerships may fail to meet expectations. To increase the odds of success, we recommend conducting a partnership health check once or twice a year to ensure that the partnership agreement proceeds as planned.
Maintaining the flexibility to course-correct as market conditions change or new uncertainties arise is essential.
Launching the relationship with the right strategy, structure, and spirit goes far toward harnessing its full power. If you are interested in becoming a Reclaro partner and would like to find out more, please get in touch by emailing partners@reclaro.com.