Managing a Successful Joint venture: Some Tips
If you are planning a joint venture, you should realize that there are many pitfalls that can cause the failure of not just one, but all parties of the venture. Managing a successful joint venture is all about examining these pitfalls and avoiding them. Here are some tips that you can use:
1) Separate expertise – a common reason for forming joint ventures is the fact that one party may be more skilled at one thing than the other. In order to make a project truly work, the expertise of both parties is needed. One cannot avoid friction between the two members of the joint venture.
However, there is a way you can minimize it. Managing a successful joint venture requires that you try to delegate the tasks according to the expertise and let each party govern its own body. Most people try to combine members of a joint venture into a single team. This would only lead to confusion.
What you need to do is to coordinate the two teams. You would, in a sense, act as the brain which would bring the two teams together. Thus, there would be no confusion regarding whose authority should be followed. Make it clear to the people that each team should work independently. The problem with this, however, is that you would take full responsibility if the teams are not coordinated properly.
2) Transparency – managing a successful joint venture requires that you be transparent in your dealings. Remember that two companies working together in a joint venture are working in a very volatile situation. You need to show that you can work in the same project without competing against each other. The main objective of joint ventures is cooperation. Because of this, you need to show that you can work together, not against each other.
3) Share advantages – one of the main reasons for forming a joint venture is the fact that each member of the venture has something to contribute. People need each other. You should not hesitate to make use of what each person brings to the table in order to further your goals. Even in joint ventures, some people hesitate to ask for help for reasons of pride or fear of rejection. In a joint venture, you should act like a teammate and share anything you have that might lead you closer to your goal. Managing a successful joint venture requires that you be open with your needs and your resources.
4) Focus on the relationship, not just the goal – joint ventures often indicate the beginning of a better relationship. Joint ventures could open doors for better opportunities. Because of this, you need to foster the relationship, no matter how temporary it may be. In doing so, you will be making sure that your partners will like working with you and will be open to the idea of working with you again in the future. Managing successful joint ventures requires you to instill a sense of camaraderie among your partners.
Managing a successful joint venture may seem quite hard at first. You might be wondering where to draw the line between independence and cooperation. This isn’t actually hard to figure out. Just sit down with your venture partners and talk to them. After all, they are not the only ones who need to cooperate with your ideas.