Rapid globalization through the Internet of Things and the integration of economies across the globe underscores the need for strategic international alliances in today’s business climate. Strategic partnerships are the force for business expansion and penetration in the global value chain.
In this light, the conversation around international partnerships gain increasing prominence in every facet of business planning and strategy. Practically, international partnership benefits all industries, including construction, energy, real estate, communications, agricultural, retail, manufacturing, finance and insurance.
International partnerships evolved from being a Memorandum of Understanding (MOU) “paper gesture” to a now carefully planned and deliberately executed set of actions that bring quantifiable value to participating organizations. Carefully identifying, developing and nurturing global partnerships are prudent building blocks to ensuring an organization’s long-term success and sustainability.
The many benefits of international partnerships include:
- Building relationships, networks, business contacts and friendships;
- Providing an international perspective to assess challenges or business opportunities;
- Encouraging openness, tolerance and mutual understanding across cultures;
- Opening doors to generate potential new business outside the company’s geographical limitations;
- Facilitating specific industry and business sector growth;
- Promoting diversity and breaking down intercultural barriers;
- Providing an increased international perspective and understanding or global issues; and
- Helping executives to re-examine their ideals on organizational leadership and growth.
The single most important step in this process is finding a partner with credibility in the marketplace who also embodies the organization’s values. This means properly doing the homework and use all resources at the company’s disposal to find the right fit. Some local resources include international program liaisons at your local department of commerce offices or Small Business Administration office.
Additionally, trade shows and industry events create an avenue to find unlikely partnerships that become very successful. Finally, in interacting with people during daily business dealings, the business executive must develop an awareness for relationships that can potentially become international business partners or can connect to organizations that have that capacity.
Opportunities for global partner sourcing and engagement permeate the lives of every business executive. Consciously creating avenues to harness and develop partnerships should become second nature to a business leader with practice.
Once this first step to find a business partner is achieved, it’s equally important to establish agreed-upon “live” goals with the potential future partner and set joint expectations. “Live” goals are dynamic goals that are adjustable as opportunities evolve or shift. The initial time frame for fully implementing these agreements varies from country to country and relationship to relationship depending on a variety of factors, including industry infrastructure and local regulations.
These carefully thought-through goals serve as a compass for the business executive as he explores this journey jointly with the potential partner. Fluidity and flexibility are skill sets that the individual needs to acquire in quest to develop global partnerships. This allows for comfortably negotiating evolving interests as opportunities and challenges are encountered down the road.
The success of such international partnerships requires much time and persistence. On occasion, these partnerships present a return on the company’s investment in the short run, but those are usually the exception to the rule. Most of the time, such arrangements are usually long-term plays that require time and other resource investments from both partners. In some cases, intellectual and financials investments may also have to be deployed.
When nurtured the right way, the payoff for global partnerships is huge and a game changer for both organizations. With local, regional and international business lines almost blurred in today’s competitive marketplace, it’s become more than critical for business leaders to cultivate these partnerships. In fact, the difference between thriving and surviving may just be in your next global partner.
