Understanding Strategic Collaboration

Many businesses start small and stay small for a while. Then, they grow organically, using their internal
resources. As they grow further, businesses can choose to outsource some functions, such as asking another
company to do their payroll or part of their manufacturing or logistics. In today’s highly competitive
environment, organic growth may not be sufficient for further growth after a certain stage. This is when the
businesses start looking for external opportunities and building collaborations to bring growth and deliver on
what their customers need. This is a critical stage for businesses.
Strategic collaboration is the process whereby individuals or organizations deliberately work together to
achieve a shared goal or support a common purpose. Building strategic collaborations allows a business to
rapidly reinforce its competitive position, to access new markets, new distribution channels, new clients, and
new technology or to gain competences or experience they do not possess. It is ultimately about solving
problems more effectively for your clients. The spirit of collaboration relies on openness, knowledge sharing,
and consensus building. Strategic collaborations can benefit everyone, but they require thoughtful
consideration, solid strategic formulation and good implementation.
Types of Strategic Collaborations
There are many different types of strategic collaboration. Some are formal (for example, mergers or
partnerships), some are informal (for example, the majority of the networking efforts or technology-based
collaborations). Some require a certain maturity in the business, and some can be done at any stage. It is
important to understand these differences and see which one is the most suitable for your growth aspirations.
Partnerships may be groups of individuals, companies, and corporations. There are different types of
partnerships from a legal point of view (such as limited liability partnerships or general partnerships), and it is
important to decide what type of partnership you want before you start. It is also possible to join an existing
partnership, by bringing capital into the business. (Ex: P&G is a partnership between William Procter and
James Gamble)
A joint venture (JV) can be a new project or any other business activity. It is a separate entity and is not linked
to the parties’ other businesses. It has specific goals and objectives, and each party is responsible for profits
and losses. A JV can take on any legal structure - a corporation, an LLC etc. A JV can be liquidated or sold
once it has reached its goal. There is clarity of roles between the parties, and each party can benefit from a
pool of resources and expertise, coming from the JV partners, while maintaining their business autonomy. (Ex:
Caradigm is a JV of Microsoft and GE)
A merger is an agreement that unites two existing companies into one new company, and can reduce the
operating costs, increase the market penetration, product or service diversification, increase skills and
knowledge, or it can be an opportunity to sell the business to another business.( Ex: Novartis is a merger of
Ciba Geigy and Sandoz)
A strategic alliance is a carefully selected partnership between two businesses with shared values.
Companies pool resources together to reach new markets, strengthen their brands, increase their market
share, and accomplish mutual goals that they might not be able to reach on their own. Meanwhile, they stay
independent. A strategic alliance gives quick access to technology, expertise, production, distribution, and
other capabilities, without a costly investment. (Ex: Star Alliance in the aviation industry, for commercial flights)
Networking is also a form of strategic collaboration. Every business leader needs to build an efficient network
to build relationships, gain industry knowledge, or access business growth through new clients. The more you
give, the more you get from your network in return. Build your network effectively with these quick tips:
Know your purpose: Be sure you know the purpose behind your attendance. New clients? Hiring? Vendors?
Prepare your elevator speech: Be prepared to answer effectively to «What do you do?» questions.
Arrive early: Join the event when everyone in the room is looking for someone to speak with.
Be genuine: Listen well and be thoughtful. Respect everyone’s time and value.
Bring a friend if you do not feel comfortable: To support and help you when networking at an event.
Quality not quantity: Rather than working the room and collecting business cards, set yourself a meaningful goal,
such as meeting a limited number of people and have quality conversations with them.
Follow up after the event: Ideally, make a first contact within a week, then two more within a month, by email or a
professional social network, such as Linkedin.
Technology is also an effective way to build strategic collaborations. There are many tools, such as Slack,
Google Drive, and iCloud to share information and knowledge, as well as to collaborate. Social networks, such
as MeetUp, Linkedin, or Twitter can also help you build strategic collaborations. Online group discussion

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boards, such as Tribe, Hivebrite, or GoogleGroups can be great places to build knowledge, share experience,
or make business encounters. Crowdsourcing networks, such as Innocentive or Brightidea can provide you
with support and funding by people who are interested in your product or services.
Developing A Strategic Collaboration Model
The purpose of a strategic collaboration is to help get your business in front of more potential customers and
ensure the growth of your business. This is a strategic move for your business. Therefore, formulating a
collaboration strategy and developing a strategic collaboration model is one of the most important steps when
you think of entering into a strategic collaboration.
Key questions to ask before looking into a strategic collaboration opportunity are as follows:

1. Which brands, businesses, or products could complement my product/service when I think what my customers need?

2. How can I expand my network to reach out to new potential partners for collaboration?

3. Who, outside my industry or my vertical, can be a collaboration partner?

4. Can my brand create synergies with another brand?

5. Which potential partners share the same values?

6. What type of collaboration is the most suitable for my business?

7. Do I see any potential opportunities for formal or informal strategic collaboration?

Key stages of a strategic collaboration model

Assess your What is the best What is the profile Use several Once you have An essential stage Measuring the
capabilities and type of partner of the ideal partner channels to look candidates, ask: that requires the success and
needs for growth. and best way to to fill my business’ for potential support of an evaluation of the
What are your collaborate in growth needs? partners: Are our objectives expert and a really results.
strengths and order to reach your really clear
weaknesses? objectives? An SME, a bigger Networks, complementary? Are we where we
understanding of
Think about your company? have planned to
chambers of all conditions by
vision and your Where? commerce, Is this a win-win for both parties. be?
strategic informal networks, both parties?
objectives. Will a Which industry? associations. A contract and a What is the
collaboration help Craft a detailed Prepare well for governance plan progress?
you reach these? profile of an ideal the selection are must.
Which gap will it partner. process. What is the added
fill? Any external value for my
factors? business?

Thank you for attending this training session. To further develop your learning experience, please take a few
minutes to reflect and build your action plan using the template below.

My Key Take-Aways from The Session

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 My Strategic Collaboration Planning Sheet

MAIN REFLECTION: Assess your capabilities and needs for growth

1. Which brands, businesses, or products could complement my product/service when I think what my customers need?

2. How can I expand my network to reach out to new potential partners for collaboration?

3. Can my brand create synergies with another brand? How?

4. What are the values I need to have in common with a potential partner?

5. What type of collaboration is the most suitable for my business?

6. Do I see any potential opportunities for formal or informal strategic collaboration?

7. Who, outside my industry or my vertical, can be a collaboration partner?

STRATEGIC BUSINESS ANALYSIS

My SWOT

My vision: Strengths Weaknesses

(Internal, positive) (Internal, negative)

My business objectives:

Opportunities Threats
(External, positive) (External, negative)

Which gap will a collaboration fill?

TYPE OF STRATEGIC COLLABORATION THE PROFILE OF A POTENTIAL PARTNER

What is the ideal type of strategic collaboration Craft a detailed profile of this ideal partner.
to bring growth to my business? What is the
Size of the company:
best way to collaborate with this partner?

Partnership
Industry:
Joint Venture

Merger/Acquisiton
Geographic location:
Strategic Alliance

Strategic Networking
Key know-how:
Technological Partnership

Why?
Other criteria:

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