Three Things to Consider When Partnering
Here are a number of principles to adhere to when looking to leverage partnerships to build business and improve the probability of meaningful successful dialogues:
1. Partnerships are meant to accelerate growth and improve the prospects of your business.
Spend time understanding where the best partnerships might lie from the perspective of the customer first. Focusing on serving the customer is the best way to find partners and align interests, raising the probability of success.
2. Avoid exclusive partner relationships that make you overly dependent on any one party.
Some partners can come to have a disproportionate influence on sales and operations.
Although large, exclusive partnerships are a means to further accelerate growth in your business, those larger entities may come to be more demanding of the partnership both from an operational and financial perspective, making it more challenging to grow the business outside of them and potentially diminishing future value potential.
Multiple partner relationships across the same or different dimensions can in the end have a greater impact to the business over the long term and create more of a market for the company.
3. Structure and operate partnerships to truly demonstrate capabilities.
To succeed commercially and engender strategic interest, a partnership needs to be meaningful and go beyond a simple press release.
Meaningful partnerships are those that have an alignment of objectives, periodic measurements and a commitment for continuous improvement of results.
While many large companies have very specific and rigid guidelines for participation in partnership programs, there's nothing that precludes any one company to stand out simply by being more proactive with communication, feedback and with the overall management of ones side of the relationship.
These are the companies that can come to stand out amongst others.
About the author
Elias Mendoza, Managing Director of Investment Development and Strategy
Mr. Mendoza joined Siris Capital in 2013. Mr. Mendoza's responsibilities at Siris include identifying and evaluating trends within existing and potential industry verticals for investment opportunities, and assisting our Executive Partners in evaluating underlying business strategies of targeted companies and existing portfolio companies. Prior to joining Siris, Mr. Mendoza was a Partner at Union Square Advisors, where he served as its Chief Operating Officer and a senior banker across the firm's verticals. Through July 2011, Mr. Mendoza held various senior positions at IBM, including Vice President and Global Head of Corporate Development. In such capacity, he was responsible for identifying , executing and integrating all acquisitions, investments and divestitures for the company on a worldwide basis. Mr. Mendoza's previous experience includes over twelve years spent at Morgan Stanley & Co., most recently as an Executive Director in the Investment Banking Division. Mr. Mendoza received a Landegger Program Certificate in International Business Diplomacy and an MBA from Georgetown University. He received his AB from Princeton University.