Email boxes are flooded with unsolicited opportunities, business cards are pressed into hands at trade shows with a bit too much urgency, phone calls are made from long lost colleagues, or even those one has never met before; and the messages take on a very similar tone - "let's collaborate. Of course, there is much in favor of aligning with others to enhance products or services and improving the capability and odds of meeting a prospect or customer need. However, to join with another firm or company in an attempt to meet a perceived need in the marketplace is not something that should be entered into without sufficient thought and analysis.

Caught In The Spokes

On a conceptual level it would seem like easy math that when one company's resources are added to another company's resources; the result is at least the sum of their collective resources and likely through some synergies; an additional gain would occur, Unfortunately, that rarely occurs. While much time and energy is devoted to the theory and idea of the collaboration; little positive happens in the way of tangible business results. The acquisition of new business, improvement of ability to serve existing business, and the customer satisfaction level as a result of the collaborative effort rarely happens.

Instead, what likely happens is that two companies, each flawed in their own ability to market and sell themselves reach out to others in the hope that they can sell for them. Unfortunately,

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when neither company can sufficiently generate sales to support its own initiatives; the chances of it being able to sell on behalf of the other company or sell a more complex product or service than it ordinarily is incapable of selling leads to noise, but little else.

If the collaborative effort is borne solely or primarily out of a need to hitch onto someone else's sales pipeline, without returning something of equal value back to the other company - and there are few things that a company can offer that would equal the value of a list of contacts, prospects, and customers - then it is a thinly veiled attempt at reaching into the wallet of the other party to pickpocket them. Few business owners would willingly allow that for long, and as soon as it is identified, the collaborative effort dies.

One company that serves a dissimilar market and customer base as I do approached me with the idea of collaborating recently. They had a kernel of an idea for a product, but no knowledge of the industry, customer concerns, or key account personnel. Their idea was that I would introduce them to my clients and IF anything sold, I would receive a percentage of the sale. However, this other company was adamant that they alone would be responsible for the content of all presentations, were to conduct the sales calls alone, and would be the primary contact for any project work. It did not take me long at all to remind them that to collaborate means to co-labor. As in jointly, together, working in tandem, etc. and not merely having them ride on my coattails. The risk was far too great and the reward non-existent for me to consider their less than generous offer and I wished them well, but opted not to collaborate with them at this time. For a collaboration to work, the outcome has to far exceed one plus one equaling two, or the additional work required to administer and oversee the relationship will reduce the profitability of having worked independently.

Doing It Correctly

To be fair, there are opportunities for two companies to come together in pursuit of a genuine opportunity that is bolstered by the inclusion of both parties working collaboratively. Alone, neither would be able to meet the need, or perhaps meet it as elegantly or comprehensively. Together, the collaborating companies can provide a better solution.

For instance, on a recent project bid I participated in; the prospect was seeking someone who could train Marketing and Sales people for manufacturers on the issues confronting shoppers in the stores in an effort to improve how products were marketed, retailers educated on the benefits of merchandising products a particular way, and shoppers provided with appropriate incentives to change their purchase habits to include the manufacturer's brand. The training of Marketing and Sales people is very familiar terrain for me, but the exact nuance of retail conditions is something that I am conversant in, but not expert. Another firm I am familiar with has greater expertise in that area, but is more of a research and strategy firm, and not especially strong in training. In that instance, when both parties can align to allow each of their strengths to be maximally used and applied to the situation, it is a beneficial collaboration.

The roles of each party were clearly stated and the understanding of how each was to contribute to the final outcome was reviewed and discussed prior to ever submitting a bid for the project. Uppermost in both of our minds was how our joining together on the project served the prospect's best interests, and not how this was a forum or opportunity for the two firms to try to force a fit of disparate approaches, technologies, experiences, etc. into a project.

Be Clear

Should you choose to collaborate with other firms, be certain that the following is defined and discussed:

-Which company will have primary responsibility for customer contact?
-Is it a joint proposal and solution or is one of the collaborators sub-contracting to the other?
-How will the compensation for each party be determined?
-Does one company have the right to overrule the other? Can they each act in what they perceive to be the best interests of the project and obligate the other to actions or decisions?
-Is there an understanding of how resources and expenses will be allocated for the project? Are they to be shared? Each company responsible for their own?
-How committed is each party to the success of the collaboration? Is the level of investment - financial and otherwise - similar?

Creating collaborations with other firms is similar to seeking to marry them in a sense, at least as it relates to the project. In much the same way that lovers are encouraged to date to learn about each other and ensure compatibility before reaching the alter, so too should companies do due diligence before agreeing to any collaboration efforts with another party. What may look good on the surface in the excitement of the potential; often turns rather unpleasant when seen in the light of the workday when the product, service, or project must be completed.

David Zahn is a serial entrepreneur and consultant to Fortune 100 businesses (www.zahnconsulting.com) as well as entrepreneurial startups (www.startupbuilder.com). His books, "How To Succeed As An Independent Consultant, 4th Ed.," and "The Quintessential Guide To Using Consultants" are frequently cited by other authors and have been used as textbooks in college and MBA classes.

The opinions expressed are the author's and not necessarily those of connpost.com. Please direct comments to cdauber@ctpost.com.