The Skinny on Partnerships

Partnerships can be an effective way of gaining access to customers,brands and markets that you didn't have before. For e-commerceendeavors, they can provide a cash infusion without taking the venturecapital path. But they are not a panacea.

"Partnerships can help you survive and grow and acquire new skills,"says Benjamin Gomes-Casseres, associate professor of internationalbusiness at Brandeis University in Waltham, Mass., and author of TheAlliance Revolution: The New Shape of Business Rivalry. "But they arenot a cure-all. You cannot assume that you'll get results just becauseyou have partners."

These relationships fail often and for a variety of reasons. One partymay try to dominate the relationship, goals and priorities may changeover time, and arguments can arise over finances. In September, CoxCommunications said it would end its partnership with Excite@home, abroadband access provider, because of Excite's financial difficulties.Ending the partnership was a "protective measure that allowed us takeback control of our network and ensure quality and customer service,"says Laura Oberhelman, a Cox spokeswoman.

To launch a partnership, a CIO must first have a clear understandingof his own organization's strengths and weaknesses, says StephenSpalding, a San Francisco-based principal in the management solutionsgroup at consultancy Deloitte & Touche. "You have to look at your corecapabilities and focus your efforts on those," Spalding says."Partnerships must start with both partners knowing the other willcommit resources, blood and muscle to make it work. That way, ifsomeone messes up, they will work together to make it better."