The 4-step guide to successful partner selection: A pragmatic approach to strategic alliance partner selection

The 4-step guide to successful partner selection is for entrepreneurs, business managers and alliance/partner managers who want to enter into a partnership and realize that this partnership is crucial for their business. This guide will lead you step by step in your partner selections in a structured, yet pragmatic, way: one that will create the foundation for a successful partnership.



Management guru Peter Drucker said in 1993: “Businesses once grew by one of two ways: grass roots up, or by acquisition. In both cases, the manager had control. Today businesses grow through alliances, all kinds of dangerous liaisons and joint ventures, which, by the way, very few people understand”. Even though Peter Drucker made this statement a while ago, this is now more applicable than ever before. Many people do not understand partnering in alliances or partnerships and run into a partnership without a solid preparation. Unfortunately lack of the required knowledge leads to high failure rates in alliances and partnerships.



Research shows that the companies that follow a structured alliance management process consistently report a better success rate with their alliances than the average - up to 80% success. The companies that approach alliances in an ad hoc fashion report only a success rate of 20%. This is the 80% rule: 80% of ad hoc unstructured business partnerships and strategic alliances fail, while on the other hand 80% of the companies that follow a structured approach create successful business partnerships and strategic alliances.



In this book we will dive into one of the most essential elements to establish strategic alliances and partnerships: the partner selection. Before we do, I will highlight some of the background of alliances, to have a common understanding of what alliances and partnerships are and why companies enter into strategic alliances. When you have read my eBook “Successful Partnerships & Strategic Alliances”, you will already know the background.



After setting the common background in the introduction, we will move into the 4 essential steps of successful partner selection:



Step 1: The strategic rationale

Step 2: Needs and contributions

Step 3: The ideal partner profile

Step 4: Approach the partner



The pragmatic approach of this guide is based on best practices from highly successful partnerships and applicable for every organization, regardless of size.