Strategic partnerships are increasingly central to how organizations drive growth, enter new markets, or expand capabilities. But for all their potential, most partnerships fall short.
The common culprit?
A failure to rigorously assess fit, not just between companies, but between solution and problem in the first place.
This article outlines a more deliberate approach. One that starts not with the partner, but with the problem. Because before you evaluate fit, you need to ask: Is pursuing a partnership even the right answer?
Start with the Problem, Not the Partner
Partnerships should not be the default. They should emerge from a clear-eyed view of the business problem you are trying to solve. That means being precise:
- Are you lacking distribution?
- Missing a critical capability?
- Looking to accelerate innovation?
- Trying to deepen customer engagement?
Each of these problems may warrant a different response, and not all roads lead to partnership. Before jumping into discussions with a prospective partner, teams need to answer a fundamental question: Should we build, buy, or partner?
This framing is critical. Without it, teams often chase partnerships based on surface appeal, such as a big brand name, a warm introduction, or a splashy startup, rather than strategic relevance.
Consider a case where an asset manager wants to expand its digital reach. A co-branded platform with a large retail bank might seem like a natural fit given the scale, distribution, and credibility it offers. But if the bank controls the customer interface or prioritizes its own product suite, the asset manager could find itself sidelined. What began as a promising collaboration might ultimately fall flat due to misaligned incentives and unclear ownership.
Before any of this unfolds, internal alignment is essential. Product, sales, legal, and leadership teams must be on the same page about what success looks like. Without this clarity, even the best-fit partner cannot deliver on its potential.
Define Fit in Strategic Terms
Once partnership is deemed the right path, evaluating fit becomes the priority. But fit is not a checklist of tactical attributes. It is a strategic evaluation rooted in intent, alignment, and potential for joint value creation.
A strong fit profile answers four essential questions:
- Where do they operate? This includes both markets and ecosystems. What channels do they use? Where do they engage customers and stakeholders? A partner’s distribution model and ecosystem participation influence how effectively the partnership can be activated.
- What influences them? Look beyond the product and examine their worldview. What content do they engage with? What trends are they tracking? What principles guide their decision-making? Understanding their lens helps assess how aligned they are with your strategic priorities.
- Who do they already partner with? Existing partnerships reveal both opportunity and risk. Are their current alliances complementary to yours or do they suggest potential conflicts? What role do they typically play in collaborations: lead, contributor, or aggregator?
- Why do they want to partner? This is the most revealing question. Are they solving the same problem as you? Do they see the same opportunity? Or are they approaching it with a fundamentally different agenda? Misalignment here can derail even the most well-resourced initiatives.
These four dimensions help move the conversation from transactional alignment to shared purpose. They allow you to distinguish between a partner that fits on paper and one that can create real strategic lift.
Recognize That Fit Evolves
Partnerships, like organizations, are not static. What makes sense in year one may look very different in year three, particularly as business models mature, customer needs evolve, or competitive dynamics shift.
Early on, teams may index more heavily on speed, brand alignment, or access to a particular capability. But as the relationship progresses, expectations grow. Strategic partners often need to co-invest, co-develop, and integrate at deeper levels to sustain momentum.
This is where your Ideal Partner Profile (IPP) becomes essential. An IPP is a structured framework that outlines the attributes, behaviors, and conditions that define an ideal partner for your strategy. It provides a common lens across the organization to evaluate and prioritize opportunities, and it should evolve with every cycle of feedback and execution.
Some of the most important attributes to consider when building an IPP include:
- Company size and industry: Do they have the scale, maturity, and operational model to complement your goals? Are they a nimble startup or an established player in a sector that expands your reach?
- Customer base: Who do they serve, and is there meaningful overlap or adjacency with your own? A partner with access to the right segments can unlock new growth or deepen penetration in existing ones.
- Shared values and principles: Cultural alignment matters. Trust, transparency, and a shared approach to long-term value creation are often what sustain partnerships through complexity and change.
- Complementary capabilities: A strong partner brings something you don’t. That might be distribution, product expertise, or technical capacity. The key is whether they are equipped and willing to fill your strategic gaps.
These criteria are not static. As your strategy advances, your IPP should sharpen, reflecting what you’ve learned, what’s shifted, and what’s needed next.
Fit also varies by partnership type. Referral programs may prioritize audience overlap and brand affinity. Technical integrations demand product alignment and engineering support. Strategic alliances often require deeper planning, co-investment, and governance infrastructure. The goal isn’t a one-size-fits-all checklist, it’s being deliberate about what matters and when.
Fit Unlocks Potential, but Discipline Sustains It
Even the best-matched partners do not succeed by default. Fit creates conditions for success, but it is discipline that delivers outcomes. The most effective partnerships are grounded in clarity, accountability, and continuous improvement.
They start with a well-defined purpose that is understood and owned on both sides. They maintain mutual accountability through shared goals, clear operating models, and regular performance reviews. And they create space for feedback, not just when things go wrong, but as a core part of how the partnership grows.
Part of that discipline is knowing when to ask hard questions.
- Is the partnership still solving the problem it was designed for?
- Are both sides committing the right resources?
- Are we measuring the right outcomes?
- Are we still aligned in ambition and execution?
It also means knowing when to walk away.
Too often, partnerships continue out of inertia. As such, it is important for strategic partnership leaders to recognize when fit has faded and to have the conviction to act, whether that means resetting, restructuring, or exiting altogether.
Closing Thoughts
Partnership fit is not a static decision. It is a strategic lens that requires you to look inward before looking outward, define the problem before choosing the partner, and treat fit not as a milestone, but as an ongoing condition for success.
Done well, this approach can transform partnerships from opportunistic plays into deliberate, enduring sources of growth.
Jason Oh leads strategy and partnerships at Vanguard Canada, focused on building and scaling the firm’s direct-to-client presence. He brings deep experience in strategy consulting and corporate strategy, advising financial institutions on growth and delivery of strategic priorities.
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