Unlocking Business Growth: The Power of Strategic Partnerships in the Digital Age

WHY PARTNERSHIPS ARE THE KEYS TO BUSINESS GROWTH AND FUTURE-PROOFING YOUR ENTERPRISE

Partnerships offer a rapid and scalable avenue to expertise, propelling growth in an era of accelerating digital transformation.

The current landscape demands that companies expand beyond their core offerings, innovate new business, and tap into fresh customer bases - all due to the relentless pace of digital disruption. Moreover, as firms reach organic growth limits within their primary sectors, spreading opportunities and risks across diverse domns becomes essential for both stability and profitability.

Strategic partnerships prove a powerful tool in driving this change. A recent Oliver Wyman survey of banking executives across Africa found that nearly every respondent rated partnership's importance at least an 8 out of 10, with the average score being a robust 9.3.

One executive remarked: Growth through partnership is the top priority for our consumer and wholesale business. Another declared, Our partners are the lifeline to platform success.

Neglecting partnerships carries significant risks in today's digital age, especially when companies aspire to diversify their offerings beyond traditional financial services - be it in areas like wealth management, insurance, retl goods or content. Partnering with an entity equipped with expertise, assets, market access and a broad reach can offer a more efficient, cost-effective route than building everything from scratch.

But successful partnerships require careful cultivation:

1. Evolve from Vors to True Partners: Shift the dynamic beyond mere vor-client exchanges where the partner's interest in your success is largely tied to their ongoing business with you. A genuine partnership involves co-creation of solutions that benefit both parties equally.

2. Deliberately Define and Pursue Alignment: Clearly articulate why partnerships are necessary, identify what types of partners align with those needs, understand what they bring to the table, and be proactive in seeking partners who meet your criteria rather than falling into opportunistic traps.

3. Structure Engagement: Establish a framework for managing relationships, involving your partners in these discussions. Ensure you have the right capabilities like people, budgets, technology, and expertise in place.

4. Establish Clear Two-Way Value Propositions: Beyond understanding what partners bring to the table, make it crystal clear what benefits they will receive from the partnership as well.

5. Leverage Partnerships as a Strategic Enabler: Don't view partnerships as merely reactive solutions for specific challenges; integrate them into your strategic growth plans. Ensure that they contribute to shareholder value creation and have metrics in place to track success.

6. Adopt Partner-Ready Organizational Structures: Successful partnership management requires active engagement, necessitating dedicated teams within your organization equipped with the necessary capabilities.

7. Embrace Continuous Learning: Regularly solicit honest feedback from partners on how you can improve your offerings and relationship dynamics. This process mirrors what you do for customers but should be exted to include all partnerships.

8. Digitize Processes for Efficiency: Recognize that partnership management involves many manual tasks. Automate processes wherever possible, starting with scouting through onboarding, contracting, output tracking, and beyond.

In , if you look ten years into the future, the most competitive businesswill be those built upon thriving partnerships. Adopting a wt-and-see approach risks being left behind. It's imperative to get partnerships right now - and develop the capabilities to manage them effectively - so that your enterprise is ahead of the curve tomorrow.

For further reading on how banks can leverage their capital in today's digital world, consider our latest series Banking On s.

As leaders in risk management, strategy, and people optimization, Marsh McLennan firms empower clients to navigate a rapidly changing environment through four global businesses.
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