Business Partnering

Last Verified: 2006-04-11

Partnering is a long-term commitment between two or more organizations for the purpose of achieving specific business objectives by maximizing the effectiveness of each participant's resources. Partners may call themselves partners whether they have a traditional 50/50 equity arrangement, or a 90/10 split of responsibilities and profit. Working in a joint venture, partnering alliance or partnership is fast becoming the norm, rather than the exception, for many small business owners. Besides enhancing profitability, it can also be fun.

The relationship is based upon trust, dedication to common goals, and an understanding of each other's individual expectations and values.

Expected benefits include improved efficiency and cost effectiveness, increased opportunity for innovation and the continuous improvement of quality products and services.

Partnerships are driven by elements such as common goals, values trust, commitment and open communication.

1. Key Elements of Partnering

Long Term

The relationship should be long term, and the relationship should not be in a state of constant reassessment.

Commitment

This must be a real commitment to each other and each other's business objectives. Success is mutual.

Continuous Improvement

There must be continuous, routine feedback in all directions and a clear focus on continuous quality improvement.

Trust

The relationship is based on trust, sharing information and respecting other parties' need for confidentiality of information.

Investment

All parties invest in partnering; each invests the strengths uniquely possessed that can contribute to success.

Alignment

There must be a mutual exchange and agreement to expectations.

Synergism

A strategic environment will promote the open exchange and consideration of ideas. Avoid the "not invented here" syndrome. The relationship will combine the resources and knowledge of the partners.

Risks

All parties take appropriate risks commensurate with their rewards and the concepts unique to their partnering relationships.

Rewards

There must be advantages and opportunities. All parties should expect more than is available in other relationships and commensurate with their investment and risks.

Equity

All parties must behave as partners. The relationship is based on equity. Success is mutual.

Systemic

The partnering relationship will be systemic in nature. It can not depend solely on individuals.

Competitive Edge

All parties seek new ways to lower costs and differentiate themselves to gain competitive advantage.

2. An Example of Partnership In The Yukon

Partnership to Design and Engineer District Heating System in the Town of Watson

The Yukon Government, Yukon Electrical Company Ltd. and the Town of Watson Lake signed a memorandum of understanding to explore the feasibility of a district heating system for Watson Lake. The system would provide an alternate energy source to heat public and private buildings from the waste heat generated by the diesel generators at Yukon Electrical Watson Lake facility. This project is finished although there is room for expansion. The waste heat generated by the diesel generators are heating the Town of Watson Lake Recreation Centre, Watson Lake High School and two private houses owned and rented out by Yukon Electrical.

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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Last Modified: 2006-04-11

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