Many companies in the landscape industry start off as a partnership, or become that way after a merger.

Partnerships come in five flavors (3 personal, 2 business)

1. Siblings
2. Parent-offspring
3. Life partners
4. Business partners.
5. Owner partnering with non owner(s)

Each situation needs a different management approach, but there are common issues with all partnerships.

Partnerships can create massive synergy: where the partners have each other’s back and are able to work very fast with the trust and security of their special relationship.

This can create compounding financial gain, where the company grows faster and stronger than it normally would.

I call this synergy “1+1 = 3” …. or “1 + 1 = 11”, if you are super ambitious.

Partnerships can also create “dissonance” or a lack of harmony. In this case the relationship feels more like a distraction, where “1 + 1 = 1.5”.

All partnerships start off with the heady feeling of “us against the world”.

Overtime one or more “partner challenges” can creep into the relationship and cause frustration and stagnation.

This lack of synergy ultimately hits the wallets of the partners and can’t be ignored long-term.

PARTNER CHALLENGES, four common ones:

1. Different Vision.

This is the biggest challenge, where overtime one of the partners develops more ambitious (or different) goals, and this creates tension in how the company invests and grows.

Misalignment in the owners’ vision can lead to interpersonal conflict and hinders decision making.

It’s important to start with a shared vision, and then renew your shared vision every quarter and every year.

2. Imbalanced Workload.

Early on, the partners seem to carry an equal load.

Overtime more of the work (or more of the results) are due to the efforts on just one of the partners.

This uneven workload will cause friction unless roles and responsibilities are clarified and continually updated.

3. Resistance to Change.

All great leaders continually grow and change, as their company and their market place develops.

It’s all about having a growth mindset.

Two partners, however, may have differing appetites for risk or varying levels of openness to new ideas, technologies, or even market strategies.

It’s important that each partner works on maintaining their growth mindset and not get stuck in a rut.

Change is inevitable! But learning and adapting is voluntary.

4. Succession Planning.

When partners are of a different age, or different place in their life, they may have different views on what succession (or exit) planning looks like.

It’s even more of an issue when one partner suddenly wants out, or hits a life situation where an exit is needed.

A lack of a clear succession strategy can create chaos and impact the business’s continuity.

This is one reason to have a “shotgun clause” that enables one partner to quickly buy out the other if the need arises.

Your Challenge – Developing synergy with your partners, regardless of who is legally in charge.

Here are six simple strategies to create synergy and ensure partner success

1. Develop a meeting rhythm to discuss larger goals and challenges, on the business and personal side.
2. Set up transparent financial reporting so everyone is seeing and understanding the same data.
3. Have contingency plans in place, especially if one owner owns more shares.
4. Update partnership agreements every year or two, and ensure that some kind of “prenup” is in place in case dissolution is needed.
5. Clearly outline decision-making authority and establish tie-breaking mechanisms.
6. Use a business coach to prevent and solve conflicts, and to ensure a growth mindset and open culture is maintained.

Just like a marriage, the best ones are based on aligned values and goals, with an openness to change and getting help when help is needed.

Regards Jeffrey Scott!

P.S. We work with all five types of partnerships and all these situations. Reach out if you want to explore how to create more synergy at your company.