Exploring Partnership

Remember that a partnership is a form of "trade."

In the middle are relationships characterized by formal agreements, in which the roles are more precisely defined. In the eyes of your customers, you may be seen as one or two organizations. Such contractual relationships take a number of forms, including subcontracting, where one party delivers a defined service to another, or outsourcing arrangements, where one party takes over a specific role for the partner business (providing administrative, personnel, or IT services, for example).

At the other end of the scale is a joint venture or consortium, in which the two (or more) organizations come together to create something with its own identity. A joint venture might involve companies A and B creating a new business: Company C. Both A and B put money, staff, and other resources in company C, which, importantly, has its own management.

ACTION POINT: Remember that a partnership is a form of "trade." You will usually have to give up some of your power and control, so be very sure that the trade is worthwhile before entering into any agreements.