How-to: Evaluate your Partnerships
Evaluating your business partnerships (other companies your organization does business with) is critical to understanding whether these companies are adding value to the business or its clients / customers.
Businesses need to evaluate whether the partnerships they’re investing in are delivering value to the business AND its clients. In other words, are the time and financial investments returning to the company in terms of revenue, profit and client value? Are you referring too much out?
Steps:
- Evaluate each partner and vendor for which the company does business.
- Determine which of the company’s product or service the partner supports
- Evaluate the strength of the relationship
- Determine which way the revenue or referrals flow
- Document the strategic value the partnership offers
- Document the client value the partnership provides
Finally, step back and evaluate the partnership strength. How much is positive? How much of the revenue or referrals are leaving your business? How much is inbound or is the relationship bidirectional or balanced?
The results of this step will help drive your strategy, business goals and any risk or opportunities you identify.
Step back and evaluate the company’s partnerships:
