Many people believe an alliance is only a success if it delivers results. But sometimes, the real success lies in walking away before you waste time, money, and credibility.
One of my clients recently faced this exact situation.
They were approached by another company with a proposal to jointly develop a solution. On the surface, it seemed like a perfect fit: aligned with their strategy and delivering strong value for customers.
But instead of rushing in, I advised them to pause and conduct proper due diligence and a partner fit assessment. That process revealed three important red flags:
1. Strategic misalignment
The product line required was already scheduled to sunset that year. Continuing it solely for this alliance conflicted with their broader strategic direction.
2. Cultural mismatch
Despite being a large player, the prospective partner was still run informally by its 80-year-old founder, very different from my client’s corporate, consensus-driven style.
3. Lack of transparency
Even with a signed NDA in place, the partner refused to share key information needed to build the value proposition, signalling mistrust.
When combined with other insights from the assessment, it became clear the partnership was not viable. My client decided to walk away, saving themselves from a poor fit, wasted investment, and a likely failure in the market.
Was this a failure? Absolutely not. By applying a disciplined partner assessment early, they avoided a costly mistake and kept resources free for better opportunities.
Not every difference between partners is a dealbreaker. But understanding and managing those differences proactively is what sets successful alliances apart.
If you’re frustrated with alliances that drag you down instead of lifting you up, join my Partnerships for Profit programme and learn how to build partnerships that truly deliver.
Enjoy your partnerships, and remember: sometimes saying no is the smartest thing you can do.