[May 17, 2014] Senior Executive Leaders cultivate close professional partnerships and often succeed or fail based on their quality and power. Business leaders and other senior leaders in large organizations are more apt to formalize these relationships either contractually or in some agreement in principle. Regardless of formalization, senior leaders who create partnerships are more successful.
Partnerships1 serve a variety of functions. Leaders without them are prone to falling behind in their field or overtaken by surprise when unexpected events occur. Some of the functions of partnerships are:
- Provides a network of like-minded leaders who share ideas and techniques
- Spreads risk of failure and enhances organizational flexibility and adaptability
- Creates an atmosphere of strength in numbers and diversity
- Allows for better accountability when properly used to review processes
- Provides a enhanced communication association for all employees
- Ensures leaders are more effective, competent, and professional
- Offers opportunity to be more successful in critical transitions
Effectively, the creation and sustainment of partnerships have little downside while providing significant advantage to the leader’s organization. The leaders who do not develop potential partnerships are subjecting their organizations to greater risk.
Large organizations and their senior most leaders are those that are the most aggressive in creating and preserving partnerships of all associations. Often there is no monetary cost. Yet, there are expenses in terms of time consumed and expertise provided. This should never deter partnerships since the gains far outweigh possible risks.
One critical factor not to be overlooked is the maintenance of the partnerships. This takes extraordinary support and nurturing by the organization’s most senior leaders. Without this senior leader involvement, more junior leaders and workers cannot be assured of the benefits from the relationships.
Senior leaders are different from other leaders in the level of importance and development of professional partnerships. The advantages of creating and properly maintaining partnerships is evident in the numbers we see in business and government sectors across the world.
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[1] http://www.investorwords.com/3609/partnership.html
Partnership Definitions (for business):
a. A type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts; other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments. Unlike a Limited Liability Company or a corporation, in a partnership each partner shares equal responsibility for the company’s profits and losses, and its debts and liabilities. The partnership itself does not pay income taxes, but each partner has to report their share of business profits or losses on their individual tax return. Estimated tax payments are also necessary for each of the partners for the year in progress. Partnerships must file a return on Form 1065 showing income and deductions. Estimated tax payments are also required if they expect their income to be greater than $1,000.
b. More generally, a relationship of two or more entities conducting business for mutual benefit.