Identify value: Strategically leverage the value that each party brings to the table. A successful partnership provides several benefits like access to new technologies, skills, innovation capabilities as well as many other complementary attributes of partners. It is vital to know them beforehand to manage and grow the business sustainably.
Sustainable relationship: A JV needs to be treated like a marriage. The relationship has to be nurtured with trust, cooperation, transparency, shared decision-making and commitment between two companies so that both parties can work collaboratively towards a common goal.
Unique processes: Establish unique processes to drive collaboration and teamwork; manage risks and rewards; build an effective governance system as well as a learning process; coordinate relationships with key partners while strengthening the partnership. This can ultimately create a cohesive culture throughout the life of the venture.
Distinct identity: The JV needs to be treated like a distinct entity in its own right with its own set of goals, targets and business objectives. The management should be given a significant decision-making role and as much autonomy and flexibility as possible to meet the inevitable challenges and changing conditions.
Performance management: Conducting a daily SQCDP (Safety, Quality, Cost, Delivery and People) audit or a quarterly meeting not only leads to a high level of performance management but also ensures review of the underlying goal and objective behind the involvement of both partners. This will enable greater collaboration and alignment while managing critical issues.