Over the last few difficult months one of the most used phrases which is now becoming a cliché is “adjusting to the new normal”.
This suggests that people have changed, or have we, or will we revert to type and go back to our old bad habits?
One such bad habit is the number of businesses that fail to understand the power of working together with others. They ignore the potential of the strategic alliances they have developed over the years.
I would like to ask you a question:
“Do the business alliances you have in place enhance your business and provide you with the profitable clients you need for the future?”
If the answer is no, then you need to take this opportunity to review how you establish and manage your strategic business relationships.
For many people, the reason for a strategic alliance is all about client referrals, but this is too narrow a focus. In the future, the most successful and profitable business partnerships will be those that agree to achieve common business goals by sharing their strengths and resources.
This means likeminded businesses can provide their services to each other’s clients while remaining independent in their business operations.
This is important to remember as often people confuse a strategic alliance with a joint venture.
The major difference between a strategic alliance and a joint venture is that in a joint venture all the companies involved set up a separate legal entity with a new identity. Whereas in a strategic alliance, those involved in the agreement work as a separate individual business. This means that even though the arrangement is an informal agreement between the companies involved, the responsibilities and work are clearly defined for everyone.
A solid strategic alliance which has relationships with the type of clients that fits your service or marketing proposition, will over time yield many benefits.
The duration of the relationship is decided, based on the goals of the alliance and the gains and needs of the strategic partners. This allows companies to grow their business at a much faster pace than they would have done working alone.
The secret to success is to ensure you forge true alliances and not just a fleeting initially profitable but ultimately unsuccessful long-term partnership.
If you bear these in mind, establishing long lasting and profitable strategic alliances with other business leaders becomes a lot easier. I will leave you with a quote from Henry Ford:
So, who will you work with in the new normal?
John Joe McGinley Glassagh Consulting September 2020