Forging Partnerships with Purpose

Bridget Gonzales Young Chief, Office of Legislative, Education &

Intergovernmental Affairs

Jetheda Hernandez Strategic Alliance Outreach Specialist

Carlos Gutierrez Strategic Alliance Outreach Specialist

Josephine Arnold Chief Counsel

Session Objectives

1. To put forward a definition of strategic alliances to ensure a shared understanding; and provide examples of MBDA partnerships that are aligned with the definition.

2. To present an overview of current Memorandums of Understanding (MOUs) and expected outcomes.

3. To learn how partnerships at the national level could better support the network of business centers at the local level.

4. To examine real-life partnerships and common risks to avoid and

5. To discuss best practices for managing strategic alliances and partnerships.

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Strategic Alliances: Definitions

A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon

objectives needed while remaining independent organizations.

(Wikipedia)

An arrangement between two companies that have decided to share resources to undertake a specific,

mutually beneficial project. (Investopedia)

A cooperative arrangement among two or more entities that combine their respective strengths to

achieve compatible objectives while they retain their individual identities and share in the risks and

rewards. (Strategic Alliances for Nonprofit Associations, Charles E.

Bartling, CAE)

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OPEN DIALOGUE

What other characteristics describe strategic alliances and partnerships?

What are the shared goals, objectives or projects that bring MBDA and other

organizations together to form an alliance?

What assets, resources, benefits does MBDA and its network of business centers bring to

its partners?

How do you measure success? 4

Strategic Alliances: MBDA’s View

MBDA will engage in a strategic alliance when potential partners possess one or more benefit(s) that will:

1. Promote and support the Agency, the U.S. Department of Commerce and the priorities of the Administration

2. Augment the capacity of MBDA and its nationwide network of business centers

3. Increase U.S. minority business growth domestically and/or internationally through access to capital, contracts and market opportunities

Through partnerships, MBDA will strive to create value in such a way that a wide array of opportunities becomes available across the Agency and network.

Alliances may or may not be formalized by an MOU. 

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Partnerships with Purpose

Access to Contracts

The OSDBU Council

National Minority Supplier Development Council

U.S. Department of Energy

Healthcare Supplier Diversity Alliance

U.S. Department of Defense

Access to Capital

New America Alliance

National Association of Investment Companies

Association for Corporate Growth

U.S. Department of Treasury

Opportunity Finance Network (CDFI)

National Bankers Association

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Partnerships with Purpose

Access to Markets

International Trade Administration

Haitian Renewal Alliance

Export-Import Bank

Access to Clients

U.S. Small Business Administration

National Minority

Chambers of Commerce and Trade Associations

USHCC ACE

USBC NACA

NABHOOD

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Partnerships with Purpose

Expertise & Capacity Building

Census BureauU.S. Patent & Trade Office

International Trade AdministrationU.S. Small Business Administration

Kauffman FoundationFederal Laboratory Consortium for Technology

Transfer

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Memorandums of Understanding

CEO ConnectionInitiative for a Competitive Inner City (ICIC)

National Association of Minority & Women Owned Law firms (NAMWOLF)

The White House Initiative on Asian Americans & Pacific Islanders

U.S. International Trade AdministrationU.S. Export-Import BankDepartment of Energy

California High-Speed Rail

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Sample Engagements & Outcomes

“So, how do these partnerships, strategic

alliances and formal MOUs benefit you?”

Let’s look a little closer at: ICIC and Philadelphia Business Center National Urban League and Miami Business

Center OPIC and the Mobile MBDA Business Center Ex-Im Bank and the Miami, Los Angeles, Detroit,

and Phoenix Business Centers Association for Corporate Growth and the

Chicago Business Center

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Open Dialogue

When you look at your portfolio of strategic partners, what purpose do they fulfill?

Are there gaps?

What are the most common benefits you provide to your partners?

At what stage in a business relationship does an entity go from an acquaintance to a

strategic partner; and entered into the performance management system?

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Managing Risk

Case Study #1: Commercial pitches and steering

Case Study #2: Client lists

Case Study #3: Use of MBDA logo and/or implied endorsement

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Open Dialogue

What are the some other “red flags” associated with a partnership that MBDA

and business centers need to look out for?

How do you go about vetting a prospective partner?

What are some additional best practices in the management of partnerships?

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Closing Thoughts

Each and every one of us is a relationship manager.

There is risk involved in every partnership.

Mutual respect, trust and accountability trump formal

agreements.

Meaningful partnerships are the foundation for success.

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Closing Thoughts

"There are three vital steps to partnering success: 

     1.     Determine what it is you need but don't have: customers, capital, special expertise, products, production capacity, or

distribution channels,      2.     Determine who has what you

need,     3.     Ask them for it, but, first make

sure you have something they want or need. (this last point is the most

important)" 

Curtis E. Sahakian, Managing Director of the Corporate Partnering Institute

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Final Question

How can we support your goals better through strategic alliances?

Impact Expansion

National Scope Functional areas

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Forging partnerships WITH purpose

Josephine ArnoldMBDA Chief Counsel

July 21, 2015

A strategic partnership is a formal or informal relationship with a for profit or nonprofit business, an association, or a state or local

government, designed to create activities, events, or processes to be conducted for the benefit of both parties and to help both

organizations achieve success.

Definition

—When choosing a partner and entering into an agreement consider: Authentication/Vetting: Can your partner deliver? Balance/Equity: Are there benefits for both organizations

and my clients? Independence: Can I work with other organizations?

Primary considerations

Case No. 1: The Hollywood CA MBDA Business Center has begun discussions with an international company that would like to invest in U.S. businesses. During the discussions, the international company expressed the need to have all of the information about each MBE in your database including financials in exchange for posting the business center logo on its website and for co-hosting an “event” sometime in the future in its home country.

— International Law implications (consult an attorney)— Balance (partner lists in exchange for logo posting)

Case studies – Should you partner?

Case No. 2: The Alexandria MBDA Business Center has sent out a flyer for an event to market a new financial product available for financing commercial buildings and land offered through its long-time strategic partner, ValueTech. The Alexandria Center has no valid transactions on the books that Value Tech provided for the Center’s clients. You are interested in new sources of financing for your clients, so you reach out to a representative of the company. The representative of the company provides you with a prospectus that shows ValueTech is listed on the NYSE and has high earnings for 2015 in liquidation and sales of business equipment, but not commercial land or buildings.

— Authentication (is this partner authentic and can they deliver as promised)

Case studies – should you partner?

Case No. 3: The Monteith Consulting Group (MCG) is seeking an exclusive partnership with your business center. You are interested in the partnership because the President of MCG is a former MBDA Business Center Director. The partnership agreement draft states that the MBDA Business Center would promote clients submitted by Monteith Consulting Group exclusively for a period of six months.

• Avoid exclusivity

•Agreement form; consulting agreement

Case studies – Should you partner?

— Verify/authenticate businesses and products offered— Weigh benefits to your clients— Determine true nature of the relationship— No exclusive contracts

Best Practices