Partnerships can be challenging. If you’re part of one, you know what I mean! But they can also be rewarding and a powerful way to leverage talent and raise your business to new levels.
Otherwise perfectly strong partnerships can be undone by a lack of clarity around partner roles within the organization. To avoid this, each partner must understand they have two distinct roles in the company:
It’s important to note that these two roles are completely independent. One is about investment in the business, while the other relates to working in the business.
Did you know it’s possible to own a significant piece of the business and not sit on the leadership team? This can be tricky because it requires checking one’s ego at the door – not an easy endeavor!
Successful partnerships embrace the power of getting the “right people” in the “right seats” (RPRS) to propel their organizations forward. This applies to the entire organization, including the leadership team. Once RPRS is achieved, great things happen.
For example, one of our clients has 40 employees with three partners. Two of the partners are on the leadership team, while one is in the creative design area, reporting to the operations lead (one of the other partners).
This structure could have ended badly if egos got in the way. Instead, the opposite is true. They work as a highly effective and healthy team because their operational accountability is aligned with their unique abilities. They enjoy their work and each contributes to the overall operational excellence of the business. As a result, they continue to grow revenue and profit at a fast pace.
Don’t let egos of partners get in the way of aligning the talents of your people with operational excellence. After all, with the right alignment, the value of business goes up, and as an equity partner this is great news!
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