Many strong interpersonal relationships help resolve small conflicts before they escalate.
So much so that, and here is the second paradox, it is in fact easier for unequal organisations to achieve collaboration than for organisations that are matched for power and influence. For example, a member of the team developing a new financial product to be launched with a foreign partner complained repeatedly to his boss about the risks inherent in the product and the difficulties in introducing it, even recommending termination of the venture. Indeed, the best organizational relationships, like the best marriages, are true partnerships that tend to meet certain criteria: Individual Excellence. When Matra allied with Northern Telecom, it preserved continuity in its product lines, even at the price of duplication with Northern products, to show customers that it would continue to upgrade and service installed machines. Intercompany relationships are a key business asset, and knowing how to nurture them is an essential managerial skill. And the feelings between them that clinch or negate a relationship transcend business to include personal and social interests. Staff involved in alliance activities often need more knowledge and skills. Here are two tools that can assist, my own version of a SWOT analysis, geared to foster collaboration, and the Contractor model. At one extreme, in mutual service consortia, similar companies in similar industries pool their resources to gain a benefit too expensive to acquire alone—access to an advanced technology, for example. In the global economy today, companies are known by the company they keep. When the U. Relationships get off to a good start when partners know themselves and their industry, when they have assessed changing industry conditions and decided to seek an alliance. Further Reading…. They then initiated worldwide conferences for executives and country managers. Only relationships with full commitment on all sides endure long enough to create value for the partners.
What is the compelling mutual benefit and why does this make obvious sense to both parties? I can give you a cast iron guarantee that the amount of time absorbed in setting up effective collaboration is more then you would expect at the planning stage. Selective perceptions reinforce the dreams, not the dangers.
Let me know how you get on.
Hbr strategic partnerships
FCB was a public company with a large number of senior managers trying to operate by consensus and generating a lot of paperwork: reports, financial statements, and lengthy meeting minutes. Also, a good personal rapport between executives creates a well of goodwill to draw on later if tensions develop. Because of their differences, outsiders are the most suspect—a fact that only increases mistrust. It is an excellent starting place and I can attest that collaboration without coherence is very hard to achieve. Interpersonal integration, which builds a necessary foundation for creating future value. In practice, what you need is to understand where your alignment overlaps and where it diverges. Also, when the partners extend their areas of collaboration, the relationship becomes more difficult to govern and to evaluate on a purely financial basis. Members of all four groups convened in a general assembly every three months to report progress and problems to management.
Moreover, we observed that North American companies, more than others in the world, take a narrow, opportunistic view of relationships, evaluating them strictly in financial terms or seeing them as barely tolerable alternatives to outright acquisition.
Lippo Group, which has many partners involved in its network of banks and property development ventures, uses senior management conferences to sell the concept of synergy, identify cross-unit business opportunities, and build personal ties among managers.
Employees at other levels in the organization may be less visionary and cosmopolitan than top managers and less experienced in working with people from different cultures. It is a painful place and quickly erodes trust.
Companies with strong communications across functions and widely shared information tend to have more productive external relationships. Managers or other venture participants may be needed for more urgent tasks. COMCO, a Swiss diversified services company, seeing a big demand for environmental cleanup in Eastern Europe, touted enthusiastically the benefits of its joint venture with the U.
based on 2 review