It is no revelation that large organizations can benefit from the solutions put forward by global start-ups utilizing emerging technologies. While there are some solutions that can be built using internal capabilities, it can be cheaper and quicker to integrate with an existing platform or service provider.

There are many forces at play in a partnership between start-ups and large organization. While there is no real secret sauce for streamlined collaboration between the two, there are several barriers that need to be addressed prior to doing so. This post covers both, the barriers that teams and organizations face, as well as the steps that can be taken to remedy any collaborative shortfalls.

Below are a few of the common barriers that emerge across organizations. There are always barriers and circumstances specific to companies and teams, but there are more often than not, hinged on a variation of the barriers below.

Culture

Culture and organizational differences have a significant role to play in the success of any partnership. When combined with relatively old technology systems, it counteracts the fast-moving nature of startups, impacting the results of any collaboration.

Processes

Large organizations are known for the hierarchical structure while start-ups are most flat in nature. Silo-ed environment and bureaucratic approaches to projects often hinder the speed at which collaborative processes are completed.

Communication

A significant lack of communication around business problems, product and scalability result in partnerships floundering for life. It is crucial to first identify the problem that needs to be solved, understanding the business and customer requirements, and then adopting transparent process to select a partner that ensures project success.

Funding & Scalability

As with all start-ups, most early stage companies require funding to scale. Large organizations need platforms that can scale but are not willing to spend too much. COVID has exacerbated this issue, with funding being limited, albeit temporarily. This can result in both partners being at opposite ends of the readiness spectrum when it comes to execution of a partnership.

Commitment

Any partnership between a large organization and start-up needs to have to commitment from senior leadership. Minimal involvement and commitment projects an unwillingness to acknowledge technology partners and a lack of interest. In any engagement, start-ups need be treated as partners, rather than vendors.

These barriers can be even more severe when one partner is an agile business looking to transform how the corporate partner operates. While the blame game often shifts between partners, one cannot argue the existence of issues when there are two fundamentally opposite components attempting to play with one another. However, there are several steps that can be taken by start-ups and their corporate partners to ensure the success of any collaborative endeavor.

Metrics

The establishing of mutually defined and acceptable KPIs provide the guidelines needed to determine the success or failure of a partnership. These metrics need to be continuously monitored to drive accountability and identify issues prior to them posing a significant risk to the entire process.

Agility

When two or more organizations with differing cultures work together, there must be an understanding on the differences in functioning. New age businesses must appreciate the more orthodox style of functioning of larger organizations. However, with large organizations looking to revitalize their approach to technology through partnerships, the onus of instilling a sense of agility through their teams lies on them.

Leadership

It is imperative for leaders from both organizations to be involved in the execution of a partnership. This is even more true for banks, as change may have to be driven from a top-down approach. The mission and vision need to empower teams to share a combined goal of a successful collaboration. The involvement of senior leadership empowers the start-up as a partner and promotes their role as an enabler through the organization.

Proactive Innovation

The successful identification of emerging trends and opportunities can only be achieved through an active internal innovation and intra-preneurial team. Driving digital understanding and capabilities prior to the introduction of a technology partner saves an immense amount of money and time, especially when it comes to the up-skilling of teams.

Processes

Internal innovation teams, though drivers of partnerships, may not have the decision-making authority around the scope of an engagement. This results in additional loopholes and bureaucratic processes that work against a collaboration. Organizations must recognize the need for early stage businesses to bring in quick revenue and their inability to spend time on non-revenue generating activities.