Mark Ingram

Business for Development is an independent not-for-profit organisation formed in 2007. Since we began, we have been prototyping how the private sector can work with communities, governments, multilateral organisations and NGOs to solve extreme poverty through inclusive business models in the developing world. So far, we have consulted to over 20 leading multinational companies and have advocated the uptake of inclusive business models to over 4,000 business leaders.

Impactful Partnerships. Reflecting on what makes a successful partnership that will drive change, impact and opportunity for all

Inclusive business models and strategy
Partnerships
11. May 2016

Let’s just start with the principle that you don’t always need to have a partnership to create an inclusive business. However, effective inclusive business initiatives which involve partners recognise the power of strategic partnership to move the gage on outcomes in order to achieve lasting impact. In doing so, partners can thoughtfully identify and leverage the capacities and assets of multiple parties for mutual benefit.

At its core, inclusive business partnerships create opportunities for traditionally non-aligned parties to come together to achieve mutually agreed outcomes. Though motivations, drivers and even values may differ, partners can work together to leverage their unique skills and capabilities to implement inclusive business ventures.

Whether those partnerships are with a corporate, NGO, or governmental agency they are, to be honest, sometimes difficult to develop and maintain due to different languages between sectors; different time frames, differing expectations and, fundamentally costs to develop the partnership. With that in mind, if it is recognised that collaboration is important, what are the building blocks for successful partnerships?

Honest assessment

It is important at the beginning of the relationship with a partner to have an honest conversation on what the core integral outcomes are required in order for the partnership to survive. For a company within an agriculture inclusive business partnership the integral outcome may be to procure a specified tonnage of a commodity from 1,000 smallholder farmers. For an NGO within the same partnership the integral outcome may be to improve the incomes of the 1,000 smallholder farmers. Meanwhile for a government partner the goal may be to increase the agricultural capabilities of a specified region. By understanding mission critical aspects of each respective partner, the partnership will be positioned to succeed for the long term.

Selling the story to inside stakeholders

In developing the partnership, it is important to sell it to key stakeholders on the inside of the organisation. Without firm internal groundwork, social impact programs are often the first casualties when budgets get tightened. If each respective partner has deep buy-in, it’s easier to negotiate, delegate and maintain the partnership.

Partnership brokers are integral

Brokers are skilled professionals who are able to take partners through a robust partnering process to ensure alignment of interests and ensure they are effective. As a broker, Business for Development has often likened the role as being a tightrope walker. As you teeter along this rope of negotiations between parties there are competing forces. Everyone has their own agenda, even NGOs, which means you need a neutral party to balance the partnership and ensure there is give-and-take on both sides. To compound this, there can be an air of mistrust between parties. A broker understands, unpacks and develops partnerships that respects and solves competing needs.

Monitoring & Evaluation

Just as important as developing the initial business case, tracking the progress of the program and making adjustments along the way is critical to ensure that a partnership succeeds. What is also important, is to link back the monitoring to reflect both partners core strategic reason to have the partnership in the first place. This will help to provide the data that is needed to promote the program internally, even as it grows and adapts to market condition.

Henry Ford once said that “Coming together is a beginning; keeping together is progress; working together is success.” Partnering, as noted above, is not easy. But it can be easier if a phased approach like this is taken – meeting, working and staying together. With each phase consider respective roles, social impact outcomes that can be achieved and naturally, business requirements.

Business for Development, the UNDP Business Call to Action and EY are working together on the 2016 Inclusive Business Forum in Melbourne, 24 May 2016. Don't miss it.