In the constantly shifting landscape of business, the formation of alliances represents a critical strategy for growth and innovation. However, a staggering 40-70% of these alliances fall short of their objectives, succumbing to a variety of pitfalls categorized broadly into (1) environmental (market change, politics etc), (2) strategic, (3) structural (related to governance etc), and (4) behavioral reasons, as highlighted by research from Northwestern Kellogg.
This alarming failure rate prompts a crucial examination of the underlying factors that lead to the breakdown of these collaborations. Understanding the nuanced challenges that each category presents is the first step towards devising more robust, resilient, and successful business ecosystems. This blog post is highlting the importance of soft skill to build “networks”; or in other words: business ecosystems and partnerships.
I am a big believer that culture fit and soft factors are underrated and not prioritized when deciding to work with business partners. Evidence of this is found in Arthur A. Boni’s paper in the Journal of Commercial Biotechnology, which underscores the significance of these non-technical aspects in forging successful collaborations. Boni argues that transactions often fail not because of technological or market-related reasons, but due to a lack of attention to ‘softer’ human-related factors. This accentuates the essential role of shared culture and vision, which are pivotal for a partnership’s longevity and productivity. These aspects are frequently overlooked across various industries, not just in biopharma, in the pursuit of transformative transactions.
The concept collaboration is indeed shaping the future of business, and the shift from a ‘Taker’ to a ‘Giver’ mindset is pivotal for success in this arena. However, a prevalent issue is the outdated mindset many still harbor. Drawing from my extensive research and experiences across four countries, including my time in the Bay Area—a nexus of innovation—I have distilled seven mindset principles in my book, “Today’s Superpower – Building Networks.” These principles, backed by my firsthand observations of successful ecosystems, are not mere theories; they are practical strategies honed to transform our approach to business collaborations. As the author, I offer these insights to guide you toward fostering a more inclusive, cooperative, and forward-thinking business environment, setting the stage for a more interconnected and synergistic future in the business world.
In the context of the seven mindset principles for building networks, the three types of networks that can be activated are:
- Network N*1: Knowledge and Ideas – This network is all about the exchange and enhancement of intellectual capital. It’s where thoughts, concepts, and innovation circulate. By tapping into this network, individuals and organizations can gain access to new insights, learn from the expertise of others, and cultivate an environment ripe for innovation.
- Network N*2: Resources – This encompasses the tangible and intangible assets that can be leveraged to support business ventures. It includes financial resources, infrastructure, and technological tools. Activating this network means securing the necessary assets to turn ideas into reality.
- Network N*3: People – Perhaps the most crucial, this network is the social fabric of connections and relationships. It’s about the human capital: the partners, colleagues, and teams that collaborate to achieve common goals. Building this network is about cultivating relationships that lead to mutual growth and success.
By adopting specific mindset principles, one can effectively activate and engage these networks to foster a thriving business ecosystem that is rich in knowledge, well-resourced, and strongly supported by a community of motivated individuals.
- Do-It-Yourself, Take Ownership: Take initiatives, be entrepreneurial, and tell good stories to invite others to join your mission.
- Blow Up Borders: Move outside your silos, go toward the unknown, learn from it, and come back. Embrace diversity and welcome new perspectives.
- Be of Value, Give Before You Get: Remove your ego and stop your desire to always receive something in return. When you help others, it always comes back to you stronger.
- Start Small, Grow Big, with Purpose: Identifying a shared purpose will attract people to you. Be transparent and share ideas.
- Do What You Can’t: It’s about pursuing a project despite everybody telling you it can’t be done. By doing so, the people being inspired will support and join your mission.
- Go Viral: Use the incredibly powerful tool of our time: social media. Build trust and bond with people without spending too much time with them.
- Be Bold and Have Skin in the Game: Take the majority of the risks; be courageous and bold. As a direct consequence, you create credibility, reliability, and accountability.
I hope you are now somewhat more convinced that the importance of soft skills and a shared vision cannot be overstated. Agree or disagree, I invite you to share your experiences and stories – how have you leveraged these elements in your own business journeys?
Sources:
The Pitfalls of Strategic Alliances, Edward J. Zajac Ph.D., James F. Beré Professor of Management and Organizations, Kellogg School of Management, Northwestern University
https://www.researchgate.net/publication/347612409_The_Art_of_Collaborations_Understanding_the_Anatomy_of_Transformative_Transactions_in_Biopharma
https://www.amazon.com/Todays-Superpower-Building-Principles-Fast-Changing/dp/B0BJYD52YF/
