Frameworks for Successful Partnerships
Frameworks are helpful tools to use while you build your growth strategy, enabling you to assess a partner’s current and future potential, think clearer and shape the requirements of your strategic alliances.
I created the frameworks below from a mix of academic and professional resources during my job at Meta where I was in charge of a $500Million/year growth program with over 70 B2B partners. I hope you find them useful. Please kindly credit the article if you share them.
First, a quick foreward on the benefits of partnering:
Why Partner?
Partnerships are indispensable assets for companies striving to stay competitive and foster growth in today's fast-paced and interconnected business landscape. From startups to multinational corporations, forging strategic alliances and embracing collaboration with other organizations can unlock a multitude of benefits, drive substantial value and serve as catalysts for success and innovation. The benefits include access to new markets and customer segments, diversify revenue and expand customer base as a result, leverage complementary resources and expertise, mitigate risk, optimize costs, drive innovation and enhance brand influence.
1. Start with a Business Proposition
A clear and compelling value proposition is one of the core pillars of any marketing strategy. We couldn’t think of an operational activation plan without one. Yet when it comes to partnerships, we don’t always take the time to outline a clear business proposition to partners.
A business proposition is intrinsically different than a value proposition.
A business proposition answers:
“Why should we bet our resources and reputation on you?”
Ensure your business proposition covers the elements below.
2. Clarify Your Partnership Type
Your company can derive different types of value from partnerships.
Not each partner is a strategic partner. To ensure you allocate the right amount of time and resources, it’s important to get clear on what type of partner they will be.
Depending on the partner’s potential to bring you commercial success and to improve your core competencies, they can be a strategic partner, earning partner or learning partner. For example, a learning partner can be a think tank, an NGO or research institute.
Use the framework below to situate your partner’s potential.
Challenges and role of the partner can depend on what type of partner they are.
3. Partnering Requirements Change As Your Company/Product Grows
Your partnership goals and reasons can evolve as your company/product grows.
4. Decide When to Buy, Build or Partner
Whether it’s a technology or a distribution channel you’re looking to add, there are several key considerations. When’s your deadline time-to-market? Is it core to business? Do you have the resources to maintain it? Do you prefer collaborating together or outsourcing?
Below you can see the different advantages of each.
