Nowadays, we see more brands collaborating; the partnerships have been widely made across every sector: SCG partners with the tech company, Microsoft, to develop data collection for tenants, and so on. The increasing number of examples shows the significance of collaboration. This does not, however, guarantee that every partnership will be successful. Therefore, understanding the benefit, the reasons for failure, and the process that enhances impactful and beneficial partnerships is crucial for successful partnerships.
COLLABORATIVENESS AS THE NEW COMPETITIVENESS
Engaging in partnerships can make firms more competitive. Companies agree that it is one of the keys to achieving revenue goals as it can help promote brand awareness, customer retention, customer advocacy, and customer lifetime value. As a result, partnerships affect growth in market valuation and increase the number of new customers, enhancing the positive impact of the business as a whole. This is the opportunity for those who can find the right partner to drive their business growth and create a relationship with customers that could truly benefit the company in the future.
COMBATTING POTENTIAL FAILURE
However, 60-70% of partnerships fail for various reasons that it may be best to simply part ways, such as a lack of immediate results, cultural differences, or unsuitable partners. Recognizing that the key to partnerships is to highlight each other's strengths and fill each other's weaknesses. Businesses can consider learning from ISO’s Collaborative Business Relationship Management. To help input, which not only highlights the reasons for doing partnership but also offers an overview of HOW, the execution process. The framework allows businesses to revisit themselves internally before even thinking about who to partner with by encouraging them to ask questions about what they stand for, where they want to go, and their readiness as an organization for partnership. Then, once they find the right partner, it's also crucial to agree on governance management and constantly evaluate progress and performance. Finally, should the partnership conclude, the exit should be clearly planned out to make a seamless transition. The execution helps prevent the mistake of matching the incompatible partner and ensures a smooth work process.
While the partnership has the potential to bring a multitude of advantages, it requires a more holistic approach to execute effectively. Thus, we should emphasize the importance of what is done upon and during the partnership by all parties as it is the determinant of collaboration success that will impact the companies' success later on.
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