Partner for Success - IIT Bombay

Partner for Success

Presented by Lynda Smith, Fenwick and West Consulting Professor, Stanford Technology Ventures Program

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Typical Partnership Results

? 200 high-tech companies surveyed

? 94% stated alliances were important to their overall corporate strategy

? 70% had only achieved initial goals or failed outright

? Why Do Partnerships Fail?

? No formal governance infrastructure ? Lack of agreed-upon performance metrics ? No regular assessment ? No senior management involvement ? Insufficient resources

Sour ce : Robe r t Fr e r ichs, Ande r se n Consult ing

Stanford Center for Professional Development ?

Agenda

? Frameworks for thinking about partner relationships

? Tools for structuring success ? Putting it in action

Stanford Center for Professional Development ?

"Partnership" is Used Across a Broad Range of Institutional Relationships

Expected Length of the Relationship

Depth of Commitment &

Exclusivity

Shallow/ Usually Polygamous

Deeper/Often Polygamous

Short

Single Transaction

(not a partnership) Cooperative Advertising

Unknown

Long

Renewable VAR

Agreement

5-Year Sourcing Contract

R&D

Joint Venture

Partnership

Deepest/Usuall y Monogamous

1 year exclusive

license

Renewable Exclusive

Terms

Merger/ Acquisition

(not a partnership)

Stanford Center for Professional Development ?

Some Partnerships Focus on More

Revenue & Profit Potential from the Partner

Than Profits

High

Earning Partner

Strategic Partner

Limited

Learning

Low

Partner

Partner

Source: Kosnik and Montgomery (1994), "Managing Cross

Cultural Alliances:

Can Trust be Achieved in a Polygamous World?"

Low

High

Partner's Potential to Help You Develop Your Core Competencies

Stanford Center for Professional Development ?

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