Industry secrets to building successful partnerships

Ever since Ben and Jerry teamed up back in 1978, it’s easy to recognise the potential power of partnerships. Put simply, we’re often better off and more successful when we do things together; mutually beneficial arrangements between organisations work because they put businesses in stronger positions than if they were to go it alone.

Now, heading into a global recession, we’ve witnessed the value of worthwhile partnerships. Most recently we’ve seen TeamGB and TikTok come together for #IsolationGames, Mercedes and UCL join forces to develop new breathing devices, and Apple and Google partner on COVID-19 contact tracing.

We got together with 12 inspiring senior leaders and ‘partnership pioneers’, to talk about the potential value and pitfalls of organisations teaming up. Here are my top five takeaways from the conversation.

1. It’s not a ‘rent-a-logo’ situation. The word ‘partnership’ is not only over used, it’s also mis-used. A transactional relationship is not a partnership; especially if you have to pay for the rights to whack a logo on your website, that’s a PR spin. Equally suppliers aren’t ‘partners’. (This isn’t to say there’s not future opportunities to develop a more symbiotic relationship.)

Neos, an insurance company in the home tech space relies on brilliant partnerships to deliver excellent products for their customers. CEO Matt Poll, is passionate about the value a true partnership can bring; “There’s a difference between a true partnership, where both organisations come together to achieve a common goal, as opposed to a transactional business relationship.”

2. The way you set it up the relationship will define its success. The ‘partnership’ label is attributed to a lot of relationships, but the successful ones have clear goals and expectations set out from the beginning. Time spent in the early stages investigating the opportunity areas to develop a viable business case, means both parties are embedded in the relationship and invested in its success.

Fluxx partnered with Bain & Company in 2019 to bring together our innovation expertise with one of the most respected and well-connected consultancies. Paul Dawson, Managing Partner and event host explains; “Bain quickly had projects in mind where they’d recognised the value that our joint approach would bring.”

3. Know when to kill it. Some strategic partnerships don’t work due to the way the relationships are nurtured, or changes in circumstances. As well as being open to new opportunity areas, it’s also important to note when the effort being put into the relationship doesn’t weigh up with the outcomes. Put relationships at the centre of any written agreements so you’re building structures that intervene to protect the parties involved long before that ever happens.

“It starts off with the desire to experience and learn from smaller, lean startups but eventually, we would literally destroy them” said an attendee, on the way large companies he’s worked with would operate with affiliate startups. “I find the most successful partnerships are ones where organisations are of a similar size.”

4. There’s value in difference. Small companies tend to have more flexibility than the larger ones, who’ll typically have bigger audiences, larger customer base and more financial security. This is why so often we see the birth of startup labs or accelerators (read about News UK’s here). Larger businesses might be looking for their partner startups to shake up arduous processes, bring fresh thinking and the hottest tech, but the reality is, often there isn’t the space built into the relationship for that to actually happen, so relationships fail.

5. Culture is at the heart. People are the most important part of any relationship, and getting the ‘cultural fit’ right can impact the success of it. This doesn’t mean everyone should look and think the same way. In fact the best partnerships offer fruitful opportunities to develop diversity within an organisation, and offer new ways of working.

Ultimately, the power of a successful partnership lies in the hands of the people who are nurturing them. Common goals, mutual respect, and shared- accountability are all ingredients for a prosperous future. The businesses that recognise and celebrate their differences, whilst providing the space and flexibility for one another to develop and explore new opportunities, will be the ones that ultimately flourish.

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Jassi Porteous works at Fluxx, to find out more about the work we do and what kind of company we are check out any of these links.