In the summary, we share key points from the discussion. The recording of the event is available via the link.

The Key Points About Partnership:

Yevhen Artyukhov: Partnership is not about contracts or legal formalization. Partnership is about relationships, the boundary of psychological aspects, interpersonal interactions, and business settings. Family-owned partnerships create up to 73% of the world’s gross domestic product (GDP) according to Harvard Business Review. However, in Ukraine, estimates suggest that the vast majority of partnership projects do not last beyond a year. Often, partnerships are used to heal insecurities and fears, but these very factors become the reasons for the short-lived nature of relationships.

Serhii Nozdriachov: My experience working in China taught me that it is important not only to have a contract but also to understand the logic behind it. One Chinese partner told me that a contract is not just a piece of paper but an important stage in making agreements that creates a foundation for future relationships. However, there is a difference between Western and Eastern approaches: in the West, contracts are often seen as guarantees of performance, while in the East, they are viewed as tools for setting agreements. This is the first important lesson about partnerships that I learned.

The second lesson is that it is impossible to reach an agreement "on the shore." “On the shore,” it is only possible to agree on how we will renegotiate “on the road,” that is, based on what principles we will renegotiate during our collaboration. This makes cooperation more flexible and adaptable to change.

The third important discovery concerns the nature of relationships in partnership and love. I once thought these areas were completely different. In fact, their nature, tools, and practices for working with them are identical.

Understanding how to build relationships is the basis for the ability to build partnerships.

The Culture of Conscious Partnership:

Yevhen Artyukhov: Our company’s mission is to spread the culture of conscious partnership, where the best emerges. If we were to draw a pyramid of conscious partnership, at its base would be knowledge of oneself. Who am I? What do I want in this business? What are my goals? What are my strengths and weaknesses? What do I need to complement from my partner's side? Where are my growth areas?

The next level is knowledge about the partner. Who is my partner? What does he aspire to? What are his value orientations? Where do we align? Where do we not align? Where is this critical? Where is it not critical?

The third level is business settings. Only after that comes the contract, if it is necessary. The procedure for developing the contract and going through all these discussions is an experience we gain when we begin to understand how our partner perceives their reality and how it aligns with our reality.

What is the Foundation of Partnership?

Serhii Nozdriachov: The described agreements are a mandatory element of any partnership.

A contract, agreements, and relationships are like wings: if anything is missing, you cannot take off.

Yevhen Artyukhov:

The foundation of partnership is knowing a clear answer to why you need a partnership.
Partnership is an exceptional form of conducting business. Therefore, when you see the prospect of a strong alliance, you must answer several questions: Why do I need this partner? Can I do without him? Can the value I gain from him be obtained in any other way, such as through mentoring or business clubs? How aligned are we in seeing the goals of our project? Do I need the partner's resources at this stage of the company?

If the answer to all these questions is "no," then we can potentially consider a partnership.

Serhii Nozdriachov: Shareholder partnerships are the last thing worth considering. You should enter into them only in extreme cases.

Ideally, you should enter into a partnership the same way you would enter a relationship. According to research, happy marriages are created by people who felt happy before them. When two unhappy people meet in hopes of becoming happy through these new relationships, it does not work. The same applies to partnerships. Partnership implies interdependence — this is essential. However, it is valuable when each partner can do something independently, but together you can achieve much more. This is the first good type of partnership from which it is unwise to exit. The second type of partnership is when you cannot do without each other, and your collaboration is the only path to success.

Yevhen Artyukhov: Often, partnerships are perceived as a way to ease the start in business. Therefore, managers tend to pull people from related contexts into partnerships: relatives, friends, former employees. In fact, partnership is absolutely not about “easier.”

Partnership is about the ability to create a larger system together than each of us can do alone.

Sometimes partnership is a way to go slower but further.

Serhii Nozdriachov: Partnership is an opportunity for multiplying capabilities.

What to do if one partner has a broader mindset than the other?

Yevhen Artyukhov: Such partnerships are possible on the condition that:

• We know something about each other.
• What is our organic role?
• What are our real ambitions?

We must be able to communicate with one another.

A space of trust must be created where we can openly talk about the roles each person performs in the partnership.

Richard Gittner, Deputy Chairman of Saatchi & Saatchi, in his book "Consiglieri: Leading from the Shadows," explores that there are two “numbers” in a partnership – the first and the second. Both must understand the scale of their ambitions. If one partner thinks on a smaller scale, the other partner agrees that they will need to support them as long as it is comfortable and acceptable.

When we try to force ourselves into inorganic roles, reality begins to distort. We lose openness and sincerity.

We live in a world where the cult of achievement and giant scales prevails. If we are in business, there is constant pressure to do something grandiose. However, it is important to remember that successful partnerships are based on honesty, openness, and mutual understanding, not on forced roles or artificial scaling.

Serhii Nozdriachov:

There must be a shared vision of the mission, as well as understanding and respect for the authentic roles and strengths of each partner.

If one has a larger scale, then we must take that into account in the vision. It is important to value one another and sometimes adjust.

Can partnerships with different values be effective?

Serhii Nozdriachov: No. Values are a phenomenon that should unite.

According to a Gallup study on the most successful partnerships, the most important factor in partnerships is complementary strengths, meaning mutual complementarity and strengths.

Partners should be different personalities, but with shared values and a common mission.