WEBVTT

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- So for me, really, it's two things.

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It's the collaboration; the working

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with partners to unlock value.

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You know, fundamentally a joint venture is

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about creating more value
than the sum of the parts.

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The second piece is variety.

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You know, there have been
seven-and-a-half thousand

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different joint ventures
started up in the last decade

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and every single one of them is different.

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You know, it's interesting, BCG research has shown that

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about 90% of joint ventures do not deliver as

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much value as was anticipated.

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And about 80% of companies report

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that actually they feel like
they get less value back

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than they put into joint ventures.

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So clearly there are a lot of challenges

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but when done right, there's a
lot of value they can unlock.

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You know, a couple of the common
pitfalls we see are a lack

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of alignment around strategic goals.

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It's about poor working cultural chemistry

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between two different partners.

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It's about poorly defined business plans,

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and its inflexibility to change

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to a changing external environment.

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The first is where you see that both partners

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taking a really investment mindset.

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You know, they both think
about it as they're buying

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into a joint venture, they're
contributing something

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but they're also getting something back.

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And that's really important,

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because it provides the joint
venture with the investment

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and support that is
required for it to flourish.

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The second is around a functioning

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and effective partner governance.

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You know, that means that
you avoid micromanagement

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but you also avoid a lack of interest

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and disengagement from the
joint venture to really again,

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make sure you're providing
the support that is required

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for the joint venture to be effective.

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And finally, the early
successes are critical.

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You know,

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over-investing upfront to
get the early successes there

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to build the foundations, whether that's

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around the first board
meeting or the first sales

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or the first product launch.

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You know, get those early successes

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on the board and that will
allow the foundations to be set.