Why do most alliances and partnership arrangements fail to meet their objectives?

Business literature has documented, in great detail, that the vast majority of alliances, partnerships, mergers and other forms of collaboration between two or more partners fail to meet their objectives.  Why?

To put it simply, there are more ways to fail than succeed. A partnership is only as strong as its weakest link.  Add multiple partners and the odds of success dwindle even further as it usually takes only one partner to fail the project but requires all partners' efforts to succeed. 




So does this mean that partnering is not a good strategic option?  No.

It does mean you have to be very diligent about a few key points:

1. Choose your partner(s) carefully.
2. Understand what the partnership honestly means to all parties involved. If your interests are not very closely aligned or mutually beneficial, one of the partners will not perform as expected.
3. What is the nature of the partnership? Is it for the mutual defense of common interests? To create the ability to gain a benefit the individuals cannot obtain on their own? Is it to compensate for the weaknesses of one or more of the partners?  These questions are vital to understand the dynamic of the partnership arrangement.
4. As conditions in the environment change, the motivations of one or more of the partners will shift. Watch for these shifts as early warning signs for the partnership arrangement.
5. Set a clear governance framework for the partnership. How will the partnership and relationship be managed? What are the rules of engagement and decision making? Who will represent the partners for which areas of responsibility?
6. Agree in advance under which circumstances and how the partnership can be unwound. Getting into agreements is infinitely easier than getting out of them. Plan ahead.
   

When negotiating a partnership arrangement, it helps to have a professional facilitator to work with the parties much as you would use an attorney to advise your organization on a legal contract. It is important that all relevant issues are fully transparent and the key issues identified above are reflected in the partnership agreement.

Partnerships can be great strategic moves. They can allow your organization to accelerate your activities, share resources more effectively, provide access to new markets and raise your profile.