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In navigating strategic partnerships, executives frequently face the challenge of bringing on new collaborators or negotiating contracts that are crucial for achieving key business objectives. Whether it involves onboarding a vital technology supplier, a manufacturing ally, or a strategic consulting firm, managing the often conflicting priorities of various internal stakeholders is essential.
Three departments that are pivotal yet often misaligned in this process are Legal, Procurement, and IT. Legal is tasked with minimizing risk and ensuring robust contractual terms. Procurement is focused on driving cost efficiencies. Meanwhile, IT prioritizes the swift deployment of new technologies and capabilities to support business operations. This emphasis on speed can create tension with Legal and Procurement, who take a more careful approach to review terms and mitigate risks.
In the midst of these competing mandates, the business needs and strategic value that prompted the partnership can be overlooked. I’ve witnessed this scenario repeatedly, where promising partnerships become mired in prolonged contract negotiations, or deals that initially appeared advantageous fail because assumptions and requirements were not clearly defined. Such situations result in wasted time, financial resources, and missed opportunities.
Fortunately, executives can adopt strategies to align these stakeholders more effectively and ensure that strategic partnerships yield the desired business outcomes. Here are four essential principles to consider:
1. Create a Unified Understanding of Business Value
Legal and procurement teams often evaluate partnership opportunities primarily through the lens of risk management and cost-saving, without a clear grasp of the strategic intent and expected business value. This narrow focus can lead them to prioritize minimizing liability and securing the lowest price, sometimes at the cost of the partnership’s broader objectives. As a technology leader, it is crucial that you help establish a common understanding of the business value and strategic aims of the partnership. What specific results are you aiming for? How will this collaboration enhance customer service, facilitate entry into new markets, improve operational efficiency, or foster innovation?
- Define Specific Outcome Metrics
Avoid vague discussions about the partnership; collaborate with business leaders to pinpoint measurable goals, such as a specific percentage increase in customer satisfaction, a targeted reduction in operational costs, or an improvement in the speed of product launches. Ensure that Legal and Procurement are aligned on these metrics from the outset. - Map the Customer Journey
Illustrate how this partnership will enhance the customer experience—be it through new capabilities, improved service levels, or access to new markets. Help Legal and Procurement understand how the contractual terms and pricing relate directly to customer value. - Model Financial Impact
Develop a comprehensive business case that outlines the expected financial implications of the partnership, including both revenue growth and cost savings. Secure buy-in from finance on the assumptions and projections, which can then be used to align Legal and Procurement around the value proposition. - Clarify Strategic Fit
Demonstrate how this partnership aligns with the organization’s strategic goals, such as digital transformation, global expansion, or innovation. Connect the specific benefits back to these higher-level initiatives, creating a rallying point for Legal and Procurement to support.
By anchoring the entire process in these overarching business priorities, you can help ensure that Legal, Procurement, and IT are focused on the right objectives rather than just their departmental checklists. You must take the helm in driving this cross-functional collaboration; without your involvement, the partnership is unlikely to reach its full potential.
2. Cultivate Collaboration and Transparency
Even with a shared understanding of the business value driving the partnership, Legal and Procurement may still hesitate to align their priorities with broader strategic objectives. This is understandable; given their roles in mitigating risk and managing costs, these departments often feel compelled to minimize exposure and maximize efficiency. While their mandates are not inherently conflicting with business goals, standard processes can introduce friction.
Executives should foster a culture of collaboration and communication between these teams and the business unit leaders involved in the partnership. Engage Legal and Procurement proactively; they should not be seen as gatekeepers to navigate around at the end of the process. Organize joint working sessions to discuss the purpose of the partnership, its requirements, and any potential challenges. Encourage open dialogue about concerns and constraints while discovering innovative solutions that balance risk with strategic impact. Providing insights into the commercial and operational dynamics influencing the deal enables Legal and Procurement to gain a deeper understanding of the business context.
The goal is to work alongside these teams as strategic partners, not merely administrative hurdles. When they feel valued and empowered to share their expertise, they are far more likely to approach negotiations with the broader business interests in mind. This collaborative approach also fosters trust and shared ownership within the organization. Although Legal and Procurement might maintain a more conservative view of risk, involving them early on can leverage their knowledge and insights.
3. Dedicate Time to the Process
One of the most significant missteps I observe among technology leaders is underestimating the time and effort needed to onboard a new strategic partner or negotiate a contract. Securing favorable terms, aligning stakeholders, and navigating complex procurement processes often require more time and energy than anticipated.
This is especially true for your organization’s most critical partnerships. When the potential business impact is transformative, you must invest your time and attention rather than delegating responsibilities to your team. Your involvement emphasizes what matters, ensuring the necessary cross-functional alignment and creative problem-solving to finalize the deal correctly.
Fast-paced business environments can pressure executives to expedite the partnership process and finalize contracts as quickly as possible. However, this approach can lead to disaster. Rushing or attempting to override Legal and Procurement will breed resentment and undermine the collaboration needed for long-term success.
I recommend adopting the role of “partnership czar” to oversee and guide the process. By committing your time and authority, you ensure that someone is available to make timely decisions, resolve conflicts, and maintain momentum. Without this leadership, deals may become stalled in endless rounds of debate and revision, squandering valuable time and resources.
Proactively allocate time, bring your technical and strategic knowledge to discussions, and collaborate closely with your cross-functional partners. While this investment may slow progress temporarily, it will pay off by ensuring the partnership achieves the intended business impact. Your active role as the partnership czar signals to the organization that this initiative is a top priority worthy of your focus.
4. Emphasize Inclusivity and Diversity
Fostering a culture of inclusivity is essential for the success of any partnership. Engaging with diverse perspectives can lead to more innovative solutions and better decision-making. As noted by resources like SHRM, inclusivity not only benefits the organization but also enhances the overall partnership experience.
By investing in diversity and inclusion, you can create a welcoming environment that encourages different viewpoints and ideas, ultimately strengthening the partnership. This aligns with the practice of using tools like bullet journaling to track progress and foster creativity.
In conclusion, taking a strategic approach to onboarding and managing partnerships can make a significant difference in achieving business success. By understanding the dynamics at play and fostering collaboration, transparency, and inclusivity, executives can maximize their partnerships’ potential. For those seeking firsthand insights, Glassdoor offers excellent resources on onboarding experiences that can guide your strategy.