Building strategic partnerships through trust, communication, and shared purpose.
Strategic partnerships are becoming pivotal in the growth and sustainability strategies of many organisations across the globe. Such alliances enable business leaders not only to leverage each other’s strengths and resources but also to gain access to new markets and innovate more rapidly.
Along with new business, existing business, and referrals, Stardust Global looks at strategic partnership as a core part of marketing strategy development. When leveraged, one can substantially reduce marketing spend in other areas as well as reap the rewards of using the brand equity of two organisations to increase reach.
This case study explores how strategic partnerships are quickly becoming a must-have growth strategy for SMMEs, their importance and benefits, and lessons learned through the experiences of Deon de Swardt, Managing Partner of Africa People Advisory Group.
Deon de Swardt is a joint founding member of the Human Resources consulting firm, Africa People Advisory Group (APAG). He is a leading influencer in organisational development, HR, and executive leadership across Southern Africa.
The Need
Entrepreneurs and business leaders in the realm of SMMEs constantly need to find innovative ways to grow and thrive in the ever-evolving business world. With the emergence of the green transition, there is ever-increasing competition based on climate, environment, and social parameters. In a globalised and competitive business world, forward-thinking leaders need a solid growth strategy if they are to attain a substantial increase in their business’ growth potential.
The Impact
By prioritising strategic partnerships, APAG has been able to ensure client success and drive business growth. “A large part of our revenue until now has been generated out of strategic partnerships,” de Swardt explains. He notes that his experiences in developing strategic partnerships have not always been successful and there have been times when he had to cut ties, at times when local economic conditions were prohibitive, or when partners demonstrated poor practices. “Collaborating with partners, with open and productive communication throughout the entire process has been instrumental in shaping our business strategy and client engagement. The benefits typically exceed our expectations with significant business growth.”
The Approach
De Swardt considers strategic partnerships as one of the most effective ways to increase APAG’s business growth potential. Here are four pillars he highlights to ensure APAG’s alliances are set up for success:
- Take a collective approach. “Partnerships enable us to focus on our core services while ensuring we have resources to meet the varied needs of our client base,” says de Swardt and he emphasises that his competitors are not the enemy. “Working together strengthens the industry as a whole and can help both organisations grow and benefit from each other’s strengths. However, he recommends creating a clearly defined approach and outlining expectations from the outset to avoid crossing boundaries.
- Build on trust and communication: “We do not create lengthy legal documents or NDAs, but we do place high importance on building a trust relationship and communicating the rules of engagement. We are clear on strategic objectives and what our clients need from a partner. Work together to co-create your partnership’s value proposition, ensure one person is dedicated to managing the relationship, and integrate the partner in fully the collective offering to the client.
- Incentivise appropriately. “There must be appealing incentives on both sides for a partnership to develop successfully over the long term. Thus, we look at creating healthy incentives over multiple years.” He adds that it is essential to be selective and prioritise quality over quantity when researching potential partnerships. Look for a good sense of chemistry and avoid partners who demand more than they contribute.
- Equip partners with the right tools. When creating new partnerships, de Swardt says putting in time and effort from the outset is essential. Doing research, preparing both teams and educating each other is vital. He does not treat APAG’s partners as competition or as vendors, and says he strategises for future cooperation.
The Benefits
- Enabling a focus on core competencies: strategic partnerships have allowed APAG to focus on their core service or product offering while ensuring that they have the right solutions at hand to meet the needs of their clients.
- Regulatory and compliance advantages: combining knowledge and expertise across markets and industries enables both sides of the partnership to navigate regulatory and compliance issues more effectively.
- Sharing resources: working collectively enables both organisations to achieve any goals that may have been unattainable independently. By pooling resources, such as technology, expertise, and capital, partnerships can reduce costs and enhance the capabilities of both parties.
- Accessing new markets quickly: partnering with an organisation in a desired market can provide immediate access to new customer bases without the need for extensive investments in your market entry strategies.
