25th February 2016

Is it time for a Strategic exit?

Don’t worry this is not an article on the upcoming referendum but some thoughts on the value of developing profitable and ongoing strategic alliances with other professionals, such as solicitors and accountants. 

However, don’t limit yourself to these professions, a strategic alliance should be with any business regardless of sector that can add real value to your existing clients and give your proposition access to individuals that suit your business model and which can be delivered profitably.

Most businesses understand the value both monetary and culturally that a series of strong strategic relationships can provide. Many attempt to establish a number of what they perceive as being suitable relationships, but do we do it successfully? 

Many fail because they don’t have a plan!

The starting point for any strategic relationship has to be a business to business marketing plan where you can identify what your clients want in terms of additional services. These can enhance profitability, aid client retention and loyalty to your brand and business.

A good framework for a plan would be to answer these questions:

If you don't have the relationships in place to offer a broader service proposition for your clients, and it's something they desire, then it would be wise for you to develop these.

The problem is that when many of us attempt to do this, for some reason we neglect the skills that have made us successful. 

While our profession is excellent at fact-finding and analysis with clients, this seems to be abandoned when developing strategic alliances. We try and sell when the key is to consult and listen.

In any conversation after listening to what potential alliances have to say, sometime the hardest word to utter is No. 

But I would argue that every professional relationship you have now and in the future needs to pass what I would call the ‘No thanks Test’.

Entrepreneurial enthusiasm is a great part of a business owners DNA but the truly successful temper this enthusiasm with realism. 

Not every business opportunity can be right for you and not every business relationship and strategic partnership is a perfect fit for your business and clients.

I have found that answering these questions before you begin any strategic relationship can save a lot of time and trauma in the future.

• Why are you and they doing it – is it part of your plans?
• What benefit does each business get from this relationship?
• What benefit do your clients get from this relationship?
• Does this relationship make your business or you more attractive to potential customers?
• Is it a historical relationship that has outlived its usefulness?
• Does the relationship allow you to attract the type of clients you want to work with in the

future?

• Is the relationship profitable?
• Does the relationship cost you time and money?

Any strategic relationship has to of course be about what’s in it for you and what’s in it for a potential partner, but the fundamental reason for any alliance must be what’s in it for your clients? 

If you can answer these questions and demonstrate the value everyone receives for each strategic relationship, then there will be no need for an exit but if you can’t, then perhaps it’s a partnership that has run its course and it’s time for change.

John Joe McGinley Glassagh Consulting Feb 2016

Follow me on Twitter @glassaghconsult 

Business Development