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The power of partnering and business collaborations

Collaboration and partnering are expected to be a key business trend in 2022. Our February Business Club discussed the ingredients that can bring success for both parties, and also the pitfalls to avoid.

At the end of 2021 Forbes Magazine predicted what they termed as co-opetition and integration (collaboration) would be a key business trend in 2022.  They said,

“In the future, it will become increasingly difficult to succeed without really close partnerships with other organizations. In practice, this means greater supply chain integration, more data integration and sharing of data between organizations, and even cooperation between competitors.”

Bernard Marr, Forbes Magazine

Catherine Metcalfe and Daryl Roberts from Shipleys facilitated the Club’s discussion to explore why business collaborations and partnering is set to be such a trend this year.

Key influences

In the current environment there are many influences which motivate businesses to join forces.  For example:

Different types of collaborations

While collaborations are not new, there’s obviously renewed focus on them recently. As Business Advisors, Shipleys has seen and supported many different collaborations over the years and we certainly help with due-diligence, valuations and advisory for the more formal arrangements. 

This diagram shows examples of common collaborations between businesses.  They come with varying degrees of involvement and risk – from simple networking (on the left of the diagram) through to mergers (on the right).

Business collaboration examples

Appetite for collaborations and partnering

Club members also participated in a poll to reveal their collaboration and partnering experience.  93% of members had collaborated with another business in the past three years and 85% were also looking to collaborate further in the next three years.

Examples of collaboration shared included:

Collaboration essentials

In their groups, Club members discussed the ingredients for a successful collaboration and what pitfalls businesses should avoid.

Ingredients for success

Ssuggestions to ensure a successful collaboration or partnership included:

Pitfalls to avoid

The following pitfalls were flagged as ones which can be detrimental to a collaboration or partnering of two businesses:

Summary

The session discussion stressed the importance of finding the right partner for a collaboration.  Fortunately professional advisers and an organisation’s network provide helpful pointers.

As a final thought, one Club member concluded a good collaboration is no different to good quality team building. Between both parties, it is important to have:

If all these bases are in place at the beginning and managed carefully throughout, then the collaboration has a good chance of success.

And if you would like to join our future Business Club events, please contact the Shipleys’ Godalming team for more information.

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