What criteria should you use to identify the right partners to work with?

I agree on the importance of aligning on objectives but I always start with GTM compatibility to ensure both companies are going after the same (or similar) markets. A strong alignment on this component makes the whole evaluation and conversation more fluid and relevant for both parties. Those are the components I evaluate (in this order): - Target Market (are we going after similar market segment(s)?) - Capabilities (do our products/services/expertise combine?) - Strategy and Goals (do our visions and goals align?) - Partnerships (is there a place for this partnership to grow and thrive?) - Operational Model (do we agree on how to operationalize the partnerships?) - Willingness (are we committed to invest what is needed?)

It's important to assess potential partners for alignment with your company's values and long-term strategic goals, ensuring that both companies share a common vision for the partnership. Evaluate your potential partner's market reputation and reliability, as a partner's standing can significantly impact your brand for better or worse. Analyze their complementary strengths and resources, looking for partners who can fill gaps in your capabilities or enhance your offerings. Consider the potential for mutual growth, evaluating whether the partnership can drive value for all. Finally, assess the partner's willingness to invest in and prioritize the relationship as a successful partnership requires commitment and collaboration from both sides.

This is perhaps the most important step in entering into a partnership. If you get this wrong, you'll get a lot of things wrong. Your direction, mission, vision and even values must align. Getting this step right increases efficiency and reduces potential frictions and disagreements.

To identify suitable business partners, consider the following criteria: Alignment of goals and values Complementarity of skills and resources Quality of communication and collaboration Flexibility and adaptability Performance and reliability Cultural compatibility and style Trust and integrity Financial stability and transparency Shared vision and passion Long-term perspective and commitment Assess these criteria by asking questions, analyzing past experiences, checking references, and observing communication styles and collaboration methods

When it comes to finding the right partners to work with, it is crucial to establish clear criteria. Firstly, consider their expertise and experience in the relevant field. Look for partners who possess the necessary skills and knowledge that align with your goals and objectives. Additionally, evaluate their reputation and track record, ensuring they have a history of delivering high-quality work and maintaining strong professional relationships. Furthermore, assess their communication and problem-solving abilities, as effective and efficient communication is vital for successful partnerships. Finally, take into account their financial stability and legal compliance to minimize any potential risks.

The main compatibility should be that we (our Company and the Partner) both serve the same ICP (Ideal Customer Profile). If this box doesn’t tick, discard and move on. If it does, then all the other indicators mentioned come into play

Choosing to forcefully work with a partner who is not compatible and whose values do not align with yours will lead to disaster. It would be a waste of valuable time and resources. Check for compatibility indicators before jumping into a partnership.

This is crucial and often overlooked. It is not uncommon to hypothesize potential partners that we as partner professionals see value in for our customers, however, it's not always what customers need or care about. Before committing to a specific type of partner or integration, you will save yourself (and your organization) a lot of time if you can validate that these partners are of interest and add value to your customer base. Interview various internal teams who frequently interact with customers from CS to Sales and find ways to ask customers directly. Record their thoughts, requests, and other needs to inform your partnering decisions and make sure that you are solving problems for all parties before investing time and resources.

Here's what every partnerships manager should do when deciding on the right partners to work with: Talk to your customers. Your customers have apps they like to use. See about co-marketing and even an integration. Your customers have podcasts they listen to. Go partner with them. Your customers go to events. Sponsor them.

In my opinion, creating a partnership is primarily a joint effort to create value and secondarily a sharing of values. To be effective, it is better to be accompanied by a joint event or project and not just be a paper agreement.

I particularly appreciate the emphasis on aligning objectives as the first and most crucial step. Finding partners with shared goals and values sets a strong foundation for a successful and mutually beneficial collaboration.

Term negotiations are usually the longest part of the partnership setup, commercial is one key aspect and once legal professionals get involved things get very granular. Negotiation is a good stage to check how prospective partners work through their differences. A bit like prenup in marriage, you dial up pressure and see how everyone reacts. In my experience across 11 large partnerships, negotiations are tricky and solvable.

I wholeheartedly agree with the importance of reviewing performance as the final step in identifying the right partners. This ongoing process ensures that your partnership remains productive, relevant, and delivers value to all parties involved.

Evaluate and refine periodically. This helps you to identify your strengths and lapses, helps you to monitor progress and identify opportunities and things that could pose as a threat to performance or the partnership. In this stage, you are able to figure out if the partnership is worth your time and effort.

Not all partners are the same, you might want to consider different types of partners and partnership goals. Yes some can and should drive sales. But others could help you grow your email database, installs or downloads. Make sure you know what your partner can and will do for you and that that aligns with what your objectives are.

What often gets overlooked is the business aspect of the partner. By that I mean - where are they on their business lifecycle? Are they a start up? Are they at the maturity stage? Are they on the decline? What is their exit strategy (retire, give to their kids, sell, go public, etc.)? Additional Questions you want to ask: Do they have the cash and financial stability required to execute on the partnership? Are they any good at running their business? Do they have an appetite for growth or are they happy where they are at? How is their business structured? Do they have people "in the seats" required for success (Marketing, Sales Leadership, Technical Leadership, etc.).

Culture is a big one for partnerships, if you get a good cultural “fit” between partners, the many obstacles that come up on the way are totally surmountable, however if it’s a cultural mismatch, you will end up in frustrating situations which have a likely chance to either torpedo the partnership or to dilute its value.

Organizations like Partner Optimizer and Sherpa are great tools for utilizing AI to truly find out who the best partners are!

Shared vision and compatibility are the most important things that has to be considered. Even though you agree to most of the things still having a slight disagreements in the vision, the partnership will not last long, so it is that much important that the selected person has a shared vision. Also the person should be compatible, if not arguments will arise in no time.