The development of partnerships with industry

Introduction

Back to Basics

What is Partnership?

•“Purposive strategic relationships between independent firms who share compatible goals, strive for mutual benefit, and acknowledge a high level of mutual interdependence”

Mohr and Spekman (1994)

•Strategic alliance – “a co-operative partnership between two or more organisations formed to create competitive

opportunities for their mutual advantage” Hefner (1994)

Strategic Fit

• A shared vision• Compatibility of strategies• Importance of the strategic alliance to each

partner• Mutual dependency• Added value to the partners

Duoma et al (2000)

But……up to 60% of alliances fail Spekman et al (1996)

“the seeds of alliance tension and instabilities have been sown from the start when the alliance partners fail to recognise a mismatch in their strategic intents”.

Koza and Lewin (2000)

“strong interpersonal relationships can sometimes make partnerships vulnerable to failure” Adobor (2006)

“informal understanding, based on trust, often proves to be a more powerful factor in determining how the collaboration works out”

Child (2001)

The Importance of Trust

“Trust is one of the most important success factors in inter-organisational alliances” Seppanen et al (2007)

Trust may result from– membership of the same social group– past experience– institutions– contracts, qualifications & guarantees

Often based on assessments of the other partner’s ability, competence and motivation Child (2001)

Resolving Conflict

• “The manner in which partners resolve conflict has implications for partnership success”

Mohr and Spekman (1994)

• Lessons• Managing vs Resolving conflict• Disagreements will be magnified at subsequent layers• Joint problem solving can lead to a mutually satisfactory solution• Communication problems accounted for over 50% of the

relationship problems

• “The art of partnership is to gain cooperation in a situation of shared control”

Mohr and Spekman (1994)

Successful Partnerships

• Trust• Clarity of vision• Willingness to coordinate activities• Ability to convey a sense of commitment to the

relationship• Quality of communication

Trust

Definitions

• Expectation that an organisation or individual will:– Fulfil obligations– Behave predictably– Behave fairly when they could be opportunistic

• Or is it a belief?

Zaheer et al, 1998

Definitions

• Knowing I need not worry– Being able to rely on people– To have their support– To work together towards a shared aim– To know what they say is what they mean

• Linked to faith and belief

Couchman 2007

How does it work

• Integrity, being open and honest• Good communications• Reliable and predicable• Respect• Fulfil promises• Own up to mistakes• Reinforced by behaviour• Identify a common purpose/aim

The perils of trust breaking down

• Feelings of betrayal (even grief) have negative power

• Unpleasant for individuals involved• Retaliation/sabotage• Resorting to legal redress• Negative word of mouth• The good things not planned are not achieved

Thanks to

• Robert LaprickDeputy Chief Executive, Mary Rose TrustStudent with Learning at Work (Partnership Program)

• Sue Couchman Consultant with West Sussex County Council Student with Portsmouth Business School

Trust in Academic Standards• Professional• Impartial• Judgement

• Qualifications• Publications• Knowledge• Skills

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry

Need

WantGreed

The development of partnerships with industry