Everyone has either experienced or heard of an overseas business partnership that fell apart. I find that most people I talk to tend to blame the foreign partner for the demise of the relationship. The typical story goes something like this:
We started the partnership to take advantage of opportunities in the local market. But they had issues that they never resolved. Eventually we lost trust in them. Finally we just ended it.
Partnerships Need to be Mutually Beneficial
In the best partnerships, each partner has taken the time to understand the other's business and finds ways to help the partner be successful. That means open communications when the partnership is being formed about needs, expectations, priorities, etc. And the more important the partnership is to the overall success of the company, the more that partner will invest in the success of the partnership.
Sign the Contract, Then be Ready to Re-Negotiate Many Times
Anyone who has managed a project of any size can tell you that one of the most important roles of the project manager is issue tracking and resolution. Too many times especially Western companies expect that a detailed contract specifies the roles of each partner. The reality is that once the contract is signed, the negotiations don't stop. Roles need to change based on changing business conditions in country. That doesn't mean that the foreign partner should dictate new terms, but that both partners need to work together to address issues as they arise to ensure a successful ongoing partnership.
There May not be a Messenger
In the US, we say "don't shoot the messenger" - meaning you shouldn't hold bad news against the person delivering the message. In many places, they just won't give you the message that there's a serious issue. Instead they'll try to fix it themselves. By the time the partner hears about it, the issue could jeopardize the project! This is where individual relationships are important. During periodic trips to the partner, talk to your counterpart in private (never in a group) about any issues you can help with. These informal chats could save the partnership.
I wish you all great success with all your partnerships!
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Thanks for the very practical tips and advice on how to deal with foreign business partnership.
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This is so true, I couldn’t agree with you more. Have a great and prosperous business.
ReplyDeleteThese are outstanding nuggets of truth. Partnerships built on mutual need are the foundation for a long term relationship. If one partner doesn't need the other then an unsustainable power dynamic emerges.
ReplyDeleteAnd though I wish it wasn't my daily reality, constantly renegotiating contracts is so important in relational cultures where contracts are seen as more open ended. Scope and price never seem set stone and neither ever seem to creep in my favor.
Great Post, looking forward to more
Thanks for your wonderful comments!
ReplyDeleteA great perspective to take is, instead of saying, "What's in this for me?" say, "What's in this for us?" It changes the perspective on the agreement and focuses on mutual success. That in turn creates longevity in the relationship.
ReplyDeleteSo true, Robert! Win/win negotiations is the only foundation on which to build a lasting and successful overseas business relationship.
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