My first real experience with a business partnership was during my first job as a software programmer with Norsk Data (ND) in Oslo, Norway. My company had partnered with the University of Oslo (UiO), where ND would deliver computer systems, and UiO would pay in the form of providing scientific staff to work on projects for ND.
I was at the time leading a software development project and got assigned two resources from UiO. I was a newly educated software developer in my first job and felt a bit overwhelmed by the size and importance of the project I had the opportunity to lead. I highly appreciated the chance to work with scientists from UiO.
I quickly needed to figure out how to structure this new partnership I had become responsible for. Even if it was "only" two people, they were both world-class in their fields, and I realized that the key to success was ensuring they felt like they contributed precious expertise, and at the same time, they gained valuable experiences by partnering with a thriving private company. To achieve this, I needed to create an environment of mutual respect and trust. Equal partners on an important project that would help improve global digital communication that was in its infancy at the time. It turned into not only a highly valuable partnership for ND, but I learned a lot from them. It was an inspiring working atmosphere that created a feeling of great appreciation and well-being every day.
This experience taught me a lot about how to create successful partnerships. This came in handy when I, a few years later, in the early 1990s, became the first Partner Manager for Cisco in Northern Europe. Right from the start, I focused on creating partnerships based on mutual respect and trust. Even in those early days, Cisco was gaining an excellent reputation and becoming a global phenomenon. Hence, it was essential to ensure balanced and equal partnerships, not Cisco flexing its muscles and strong-arming our much smaller partners. Many of the partners were smaller companies scattered around a large geographical area. Cisco had a 100% partner-based go-to-market strategy at the time, and without successful partners, Cisco would not reach its full potential. I found it essential to ensure our partners had healthy margins on all Cisco products and services sold, enabling them to invest in training, develop top Cisco expertise, create loyalty, and have a solid bottom-line profit at the end of the month and quarter. We both needed to feel successful.
Fun Example
A fun example of a simple gesture from the early days that can create well-being, valuable informal conversations, and build close bonds. Cisco's largest partner in Northern Europe was based in Stockholm. They had become integral to our success in the region. However, after a lot of business success, I felt that we, on a personal level, were starting to "drift apart," and the camaraderie between our companies had faded. I knew instinctive how important human relations are and that the business would suffer if we did not recover the cheerful and friendly ties we had built over several years.
I decided to do something extremely "human" every Friday afternoon around 3 pm when most were in the office and slowing down for the weekend — bring a load of pastry from the local baker. It filled the common gathering area with a great treat and smell! I made a point of going to the baker myself and bringing it to our partner — and not asking anyone else to do it. This small personal touch proved highly effective, and after a while, it was the big happening at our partner, and all employees made sure to come to the office on Friday afternoon. The result was much improved personal relationships, and the business success grew even more robust. We had better and more constructive conversations between Cisco and our partner while enjoying pastry and coffee than in any formal meeting. The lesson learned, bring pastry!
A partnership strategy based on an elementary foundation of balance, equality, and trust created unprecedented business success throughout Northern Europe and the rest of Europe for our partners and Cisco. Later I moved to Silicon Valley and worked on global partnerships, first between Cisco and telecom service providers worldwide. In that case, the tables were turned. Now Cisco was seen as the underdog. Large service providers such as ATT, Telia, Japan Telecom, and many others were the "movers and shakers" in the global voice and digital communication markets.
At Cisco, we had decided that we needed to build deep and long-term partnerships with these prominent global communications players to reach our full potential and become the preferred and strategic partner for communications equipment and services. We took a long-term focus rather than trying to "maximize profit this quarter." We were again able to create trusting and deep relationships, which led Cisco to unprecedented global success and influence on the development of the Internet. This was done by focusing on the basics, mutual benefits, respect, integrity, trust, and strong personal relationships.
Summary
Enduring, trusting, and profitable partnerships are built on a basic understanding of human behaviors and needs. The foundation must always be equality, respect, trust, and humility. It does not matter if one party is 1,000 times the size of the other. It has nothing to do with forging great partnerships. At Cisco, we built some of the most enduring and profitable partnerships ever seen in business. The most important cultural aspect I'm most proud of amidst all our business success was the focus on integrity and "fair play" with all our partners. This culture penetrated the company throughout the world.
Action
As an Executive Coach, I have helped local and global leaders develop and improve their company's partnership strategies, day-to-day behaviors, and execution. Please let me know if I can assist you with setting up highly successful and enduring partnerships.
Critical criteria for successful partnerships:
Create a balanced collaboration based on mutual benefits, equality (regardless of size), integrity, and trust.
A partner must feel like they are fairly treated.
Set clear expectations and do frequent check-ins — be generous with information sharing.
Ensure healthy profit margins (if not, it will not be a long-term relationship).
Build and maintain strong personal relationships. "Go out of your way" and ensure top priority is on personal relationships — never let them fade. If they do, the partnership is doomed.
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