Global Partnerships Programme – Partnering information

Technology partnering has become an important business tool. The sharing of ideas, resources, expertise and goals not only enables innovation, it can also enhance it.

The different commercial, cultural and technological perspectives to be found within each partner organisation can add significant value to the product development process.

Partnering for success

The UK has long believed in the power of partnerships. This partnering heritage means we have thousands of companies experienced in the partnering process and thousands more actively seeking partners for their R&D and technology projects.

It also means we have developed successful ways of bringing partners together – such as the Global Partnerships Programme – and a wealth of partnering expertise.

This expertise can make all the difference, for partnering poses new management challenges and can be a risky business.

Knowing how to manage this unique type of business enterprise and minimise the risks involved can maximise your chances of success.

To help you realise the full potential of your partnership we have outlined here sources of partnering support and key success factors.

Getting ready for partnering

Preparing for a partnership is about much more than identifying the capabilities and technologies you are interested in and searching for the right partner.

First, consider whether your organisation has the right strategy, systems and skills to create an effective collaborative environment.

Consider whether your organisation has:

• clear goals for the partnership that are aligned with your overall business objectives,

• realistic expectations of the possibilities and problems partnering can introduce,

• the resources and capacity to commit to a project of the scope and scale you have in mind,

• the flexibility to cope with changes in the way the business operates which may be required to fulfill your partnering commitments,

• leaders with the energy and vision to get everyone to sign up to the partnership’s goals and to maintain momentum as it progresses,

• managers with the relationship management skills to deal diplomatically and effectively with different personalities and problems,

• a knowledge management system capable of capturing and managing the information to be generated and shared by the partners,

• an informed view on key, complex technology and intellectual property rights issues which are likely to be the main topics of early conversation with potential partners.

Preparing for change

Those people closely involved with company strategy and the partner search may be ready for the impact a partnership will have on the business, but is everyone else?

Given that the proposed partnership will make additional demands on particular departments and rely on the goodwill and flexibility of particular people, it is vital that they understand its objectives and appreciate the opportunities it will open up for them.

Analysing competencies

You may find it helpful to consider these points within the framework of a formal analysis of your organisation’s strengths and weaknesses.

This exercise could prove very valuable during the partner selection process too. With a clear idea of your own skills, expertise and attitudes, it will be much easier to identify those companies whose strengths and weaknesses complement yours.

Finding the right partner

A partner might look perfect on paper, but it’s only through a robust and thorough assessment that you’ll know if they’re right for you in reality. If you fully evaluate potential partners early on, you’ll put yourself in the best position to focus your efforts where there is real potential for success.

For each potential partner consider whether:

• their business objectives are consistent with yours,

• initial discussions on the fundamental purpose and plans for the project indicate similar expectations and ambitions,

• they would bring complementary skills, facilities and know-how to the partnership – and if these are significant enough to accelerate your progress,

• an evaluation of their technology should be undertaken to confirm its status and potential,

• they are able and willing to dedicate the manpower and financial resources required,

• you fully understand their operational, financial and personal constraints and how these might affect the project,

• they could cope with the additional pressures the project would inevitably introduce,

• there is fundamental agreement on issues such as how Intellectual Property Rights might be apportioned,

• the collaboration could capitalise on differences in culture and competencies to develop added value from the relationship,

• there is a commitment and capability to deal with any problems that may arise during the project, such as resource allocation or differences in working pace.

Success factors

The most successful collaborations are those with:

• • equal benefits for both partners

• • a good personality fit

• • a shared vision and

• • a long-term view of the resources required.

The right chemistry

Assessing the technological and commercial synergy of a potential partner is vital, but deciding if the company is a ‘good fit’ in terms of values and personalities is equally important.

It is not just that the way the other organisation behaves, and its reputation, could affect you. It’s also that when secrets are being shared, difficult decisions made and conflicts resolved, there needs to be a common approach and a high level of trust.

Making the relationship work

Like any relationship, a technology partnership needs honesty and flexibility to succeed. When these qualities inform the partnership’s plans, partners have the benefit of both clear, fixed guidelines and the chance to respond positively to changes in market conditions or technological possibilities.

At the outset, partners should draw up a contractual framework outlining the project’s objectives, organisational structures, operational processes, resource commitments, duration and outcomes. Where this is realistic and similarly advantageous for both partners, the chances of success are high.

Where the plans designed to deliver this success are well-conceived, well resourced and well-communicated, partnerships put themselves in a position to achieve outstanding results.

Planning to succeed involves:

• appointing a project leader within each organisation who will act as a focus for both internal management and the partner relationship. This is an important role and selection of a candidate with the necessary blend of capabilities is essential,

• establishing teams that can work well together and efficiently manage the project workload,

• setting common standards of behaviour,

• establishing clear reporting lines,

• arranging regular contact and interaction between the partners,

• setting a realistic schedule and budget and quantifying milestones,

• designing a communication plan to ensure employees and stakeholders are kept informed about the project’s progress,

• raising awareness of the issues that may jeopardise the project, such as disputes, delays or disruptive technologies, and agreeing procedures to deal with any of these eventualities,

• monitoring and measuring performance against objectives – and this includes the performance of the relationship itself

Creating value

The innovative thinking generated by partnerships and the constant evolution of markets mean that collaborative projects are often capable of delivering more than their original objectives.

Establishing a simple value-creation process to capitalise on opportunities for adding value once the project is underway can strengthen both the partnership and the technology it produces.

Rights ownership

The way product ownership issues are handled in the early days of a partnership are important to its future.

The disclosure of trade secrets and technological know-how that the discussions will involve can give a good indication of the level of trust within the relationship.

Where the arrangements made for the apportioning of intellectual property rights are equally agreeable to both partners, they can act as a motivating force that helps to maintain momentum and solve problems as the project progresses.

Establishing an exit strategy

All good partnerships must come to an end – when and how should be decided at the start. By establishing a joint exit strategy, partners can make sure the relationship doesn’t drift into disengagement. By making it dynamic to reflect progress and changes, it can also be used to give clear direction.

In developing and drawing up their exit strategy, partners should:

• assess and maintain a focus on intellectual property rights and liabilities and agree how these will be apportioned beyond the relationship’s lifespan,

• assess and agree the issues that could result in early termination of the relationship and the actions to be taken by each partner if this happened,

• consider how confidential information shared during the partnership will continue to be protected after its termination,

• take legal advice where necessary,

• regularly review and refresh this strategy to take account of any changes to the project’s original plans that may influence actions,

• communicate the strategy – and any changes – to everyone involved in the project to keep goals in sight and spirits high.

Moving forward

It is often the case that as one project closes a door opens on another opportunity.

As a growing number of organisations are discovering, serial partnering can play a vital role in creating and embedding a culture of continuous innovation.

And it is through continuous innovation that organisations can maintain their competitive advantage.