Global Engagement reaches new markets and provides seamless brand experience for customers across the world

EFFECTIVE GLOBAL ENGAGEMENT

Companies regularly seek partners with complementary capabilities to gain access to new markets and channels, share intellectual property or infrastructure, or reduce risk. The more complex the business environment becomes the more such relationships make sense.

The perennial problems associated with managing tactical and strategic global engagements do not go away — particularly as companies increasingly strike relationships with partners in different sectors and geographies. Some of the most common problems include: disagreements on the central objectives for the relationship, poor communication practices, poor governance processes, and, when market or other circumstances change, their inability to identify and quickly make the changes needed for the relationship to succeed.

SUCCESSFUL PARTNERSHIPS DO NOT JUST HAPPEN

In our work helping executive teams set up and navigate complex global partnerships, we have witnessed firsthand how problems in the relationship crop up overtime. We have also observed the various ways companies have chosen to re-engage and mitigate some of the more detrimental misunderstandings to the partnership.

It seems obvious that partner companies would strive to find common ground from the start — particularly in the case of large joint ventures in which each side has a big financial stake, or in partnerships in which there are extreme differences in cultures, communications, and expectations. Yet, in a rush to complete the deal, discussions about common goals often get overlooked.

This is especially true in strategic alliances within an industry, where everyone assumes that because they are operating in the same sector they are already on the same page. By skipping this step, companies increase the stress and tension placed on the partnership and reduce the odds of its success. Our cross-cultural teams advise our clients to:

• Engage –Even business relationships that start off solidly can erode, given individual biases and common communication and collaboration issues,
• Understand Dynamics –Given time and geographic constraints, it can be hard to collaborate and communicate effectively, but building friendships and trust is essential,
• Build Resilience –Partners come together to take advantage of complementary geographies, corresponding sales and marketing strengths, or compatibilities in other functional areas. It is important to understand each partner’s motivation behind the deal and which partner is best at what,
• Create a Playbook –Bringing different business cultures together can be challenging, given partners’ varying communication styles and expectations. Develop a set of actions to be taken under different scenarios, and make sure leadership is aligned on which moves to make in certain circumstances,
• Build and Strengthen –Managing relationships outside of developed markets, for instance, can present additional challenges involving local cultures, integration norms, and regulatory complexities.

An emphasis on engagement, proactive management, accountability, and agility can not only extend the life span of a partnership or joint venture but also help companies build the capability to establish more of them—and, in the process, create outsize value and productivity in their organizations.