Why joint ventures don’t have to fail
As I was reading Seth Godin’s blog post on “Why Joint Ventures Fail” I was thinking in the background why they don’t have to fail.
Seth makes some very great points. If you haven’t read his post yet, you can find it by clicking here
Joint Ventures are in some ways like arranged marriages. You are delving into the unknown without any background knowledge or understanding of the other party and the only way to get to know them is actually live the experience.
As it moves along there will inevitably be difference of thought and opinion on how each perceive the perspectives that appear. Reactions will be different and responses will be based on thsoe reactions.
The change though has been initiated with the actual intention to participate in exploring the joint venture opportunities.
The problem though that arises comes in the actual mindset based on the joint venture. The word joint ventures exemplifies exactly what is happening. You are venturing into a common interest to go forward.
In that movement forward you will come to points that will differ in thought. But the interest in itself has been established and that is to create a synergy and complimentary commitment to making it work.
But there is also something else that makes it imperative and that is who are the actual participants in the joint venture project. Prior to any initiating joint venture a methodical approach must be developed on how to organize the participants.
Just like any quality mastermind group, joint ventures must have their own group of minds that compliment each other to make the project work, complimenting minds and structures will defeat any fear that come with such “risky” business affairs.
How to approach a joint venture.
First create a joint venture group of minds. Sure it’s understood that some of the parties involved have to be involved, but that doesn’t necessarily mean that you cannot bring in human resources that will make the joint venture that much more successful. by first understanding the human element involved.
Currently I am participating in the development of a joint venture and my initial thoughts to the parties involved were that some of you just cannot be involved in certain discussions of the project. The observations I made that the vibe between certain people are not complimentary to the aspects of certain parts of the joint venture.
Joint Ventures are very lucrative and beneficial but the element of synergy, understanding what each other needs/wants, the philosophy of Win/Win or No deal are crucial thoughts that must be brought into the project that will build the foundation of any joint venture.
Second, outlining the vision of the finished result. I’m sure you’ve heard many times that seeing the end result and working your way backwards is crucial in any endeavor, and it applies to joint ventures as well.
but the ultimate outcome of any successful joint venture is the synergy among the people involved and how well the formulation of minds and groups of people involved will result in the success of any joint venture.
Finally, fixed mindsets and psychological memes are always factored into the mix. There is this notion that there are certain ways to handle joint ventures, but that doesn’t mean that the psychology of the human has to defeat what may turn out to be successful endevor between two companies.