Strategic Partnerships Framework

Strategic partnerships can be powerful levers to achieve phenomenal growth. Take, for example, the partnership between Uber and Spotify. Uber users can sync their Spotify account and control the music they listen to while driving. This partnership has not only created a great customer experience, but has also opened up access to the partners` respective target groups and used a unique value proposition to drive new customer acquisition. Success through strategic partnerships is achieved when organizations achieve the appropriate business goal with partners who have aligned values and complementary skills and assets. For this reason, the work required to create the right frames and models can offer huge benefits. This additional investment will benefit the Centre. The magnitude of the challenges facing the sector will require more data scientists and data to analyze humanitarian crises and help those in need. This cannot be solved by the efforts of a single actor and underlines the importance of strong and dynamic coordination and the need for partnerships with a wide range of organizations. The changes the centre is trying to make are monumental in nature.

It will take years to achieve this through the coordinated efforts of several organizations. When seeking partnerships within the private sector, the Centre should be well prepared to assess and develop potential partnerships and should adopt a structured approach. Both in the selection phase (which partners need to be addressed) and in the engagement phase (discussion of details and implementation of the partnership), a tactical approach for optimal results is recommended. But in the rush to reach the agreement, discussions about common goals are often overlooked. This is especially true for strategic alliances within an industry, where everyone assumes that because they are in the same industry, they are already on the same page. By skipping this step, companies increase the stress and excitement that is applied to the partnership and reduce the chances of success. For example, day-to-day operators end up receiving confusing advice or conflicting priorities from partner organizations. Partnerships never go out of style.

Companies regularly look for partners with complementary capabilities to access new markets and channels, share intellectual property or infrastructure, or reduce risk. The more complex the business environment becomes, . B as new technologies emerge or innovation cycles accelerate, the more meaningful these relationships are. And the better companies manage individual relationships, the more likely they are to become “partners of choice” and be able to build entire portfolios of practical, value-added partnerships. Over the past decade, Level5 has helped a number of clients establish strategic partnerships to achieve key objectives and add skills or abilities identified as growth needs. How companies structure these teams depends on concrete factors – for example, the number and complexity of partnerships – as well as intangible assets such as executive support for alliances and joint ventures and the experience and skills of the people who would make up Allianz`s management team. Sometimes partnerships need structural transformation – and not just as a last resort. 3. Negotiate to assess relevance, not just to structure the relationship In our experience, the main reason for partnership failure is a lack of alignment. While the partnership is being negotiated, the focus must be on common objectives. Most importantly, companies need to assess whether their values and cultures support a dynamic relationship during implementation.

Of course, the constant problems related to the management of business partnerships do not disappear either, especially as companies increasingly enter into relationships with partners from different sectors and regions. The last time we asked executives about their perceived risks to strategic partnerships, 1st observation collected in the 2015 McKinsey survey of more than 1,250 executives. Sixty-eight percent said they expect their organizations to increase the number of joint ventures or large partnerships they participate in over the next five years. A separate follow-up survey conducted in 2018 found that 73% of respondents expect their business to increase the number of large partnerships they enter into. The most important were: disagreements between partners over the central objectives of the relationship, poor communication practices between partners, processes of poor governance and, if the market or other circumstances change, the inability of partners to recognize and quickly make the changes necessary for the success of the relationship (exposure). Sometimes partnerships need structural upheaval – and not just as a last resort. .