Design partnerships are often formed out of friendships or from having shared a design project. The challenge is that, like any relationship, a business partnership involves more than just shared interests or taste. It’s important to also clarify how to divide the operation, how to make sure the workload is equal, and most importantly, that you do not have conflicting goals. Structuring partnerships ot support two principals can present challenges, but it can also rocket your business to great heights!
The Double-Edged Sword of Creative Partnerships
Just as you lay out a plan to create a successful design project, and hopefully gain a lifetime ideal client, be sure you are setting up a successful partnership for the long term. It will probably seem like a win/win when you have a partner with whom to share the workload, financial investment, and areas of expertise – until you realize you haven’t addressed conflicting visions that begin to create friction.
The definite advantages are only true if you have entered the partnership strategically and are combining specific high-level skill sets. Pearl Collective co-founders Gail Doby and Erin Weir have built a very successful, multi-decade partnership by doing just that. Their strong partnership pairs finance, banking, and a strategic vision (Gail) along with marketing, operational structure, and leadership (Erin). A two-principal firm that is truly resilient is not created from partners with identical skill sets or a “go along to get along” mentality. A successful long-term partnership requires clear areas of authority, agreement on organizational configuration, and a shared structure for steering through business changes and challenges.
The Visionary and Integrator Dynamic
How to best define the complementary partnership? As with the Pearl Collective, you ideally have a Visionary and an Integrator. Finding someone who is just like you will not lead to the best type of partnership. You don’t want someone who has your same strengths and weaknesses. You want partners who will balance each other’s strengths and weaknesses. That’s what creates the “Rocket Fuel” to take your business to the next level and continue to grow. The Visionary is the big-picture strategist whose strengths include brand-building and the creative culture of the firm. The Integrator is the partner who balances the strengths of the Visionary by excelling in overseeing the operations, process structure, and execution of the firm.
The Visionary
As the name implies, the visionary has the vision – the idea or solution to a problem – whereas the integrator takes the ideas of the visionary and makes them happen.
An entrepreneur who is a visionary has the key elements that will launch the business – they have the passion, drive, and creativity to light the fire and grow the company. The challenge is that they become overwhelmed with the day-to-day operations and lose their passion and enthusiasm. This slows the momentum and may make a Visionary resent their business. Visionaries are the dreamers, and they provide the fuel, but if they become overloaded with the daily operations, they can lose the passion needed to keep that vision flowing.
The Integrator
In contrast, the Integrator provides the necessary structure to keep the rhythm going. They implement the business plan, are accountable for the results of the P&L, and hold the leadership team accountable. If the Visionary charters the ship and tells it where to sail, the Integrator is the captain who steers the ship and makes sure the crew does what they need to keep the ship afloat. They encourage team unity and follow-through, and they also act as the filter for the Visionary’s many ideas. As the filter of ideas and the one guiding the firm’s direction, they provide the spark that ignites the Visionary’s fuel. The Integrator will make the decision of when to apply the Visionary’s great ideas and will also be sure to do so only if the ship is headed in the right direction.
Making Rocket Fuel
The Pearl Collective model is an excellent example of a balanced, sustainable firm, aligning a strategy-focused principal – a Visionary – with an operations- and marketing-driven leader – an Integrator.
Great partnerships don’t just happen – even if you have a Visionary paired with an Integrator. Core rules need to be implemented in order to keep the partnership healthy.
Dividing Authority
As in family dynamics, avoid end-runs. Do not allow employees to cause disunity by pitting one principal against the other. The partners also need to be sure they are similarly focused – that they are on the same page. It is important to hold regular executive meetings so that you are completely aligned before presenting any changes to the team. A key element is to have mutual respect for your roles and recognize that both roles are essential for successful growth of the company. Neither trumps the other.
Eliminate the challenge of “two bosses”. Be sure you are unified, and your team does not receive conflicting direction. It will interrupt the flow of the project and cause unnecessary friction. A successful partnership clearly defines the daily operations and divides them into clear domains. The creative direction and client strategy are one domain, separate from the studio operations, procurement, and financial management. Neither role should have total authority over the other, as they are strongest when they work together.
Having a decision-making hierarchy or protocol in place, along with dispute-resolution rules, will help to avoid compromising the trust between partners.
Navigating Transitions and Evolution
Growing a business is rewarding but also challenging. And as the business grows and changes from $1M to $2.5M and beyond, the roles of the partners also need to evolve. As Pearl Collective found, that evolution will also include the roles of the team members themselves. The partners may need to take an honest look at their roles and focus on how they may need to change. You will need to put your efforts into fewer areas of responsibility in order to focus on helping the firm as it enters a new phase. You have a new set of priorities.
This change also means that your employees will need to become more specialists rather than generalists. They will need to take on some of the roles and responsibilities that the partners are relinquishing. In order to make this transition successful, you will need to focus on your individual team member’s strengths and talents to find their ideal place in the firm. During these transitional times, the partners will need to think ahead and have a clear plan before initiating the planned changes. Make sure to allow time to work with your team so they truly feel included in the transition and will be ready to move forward as a team.
Three Keys to Managing Friction
- Maintain a long-term perspective: Successful firms recognize the importance of focusing on the ultimate vision rather than being held back by short-term operational friction.
- Clarify core values and priorities: Performing a regular audit of personal and business goals will help to ensure that both partners remain aligned. Don’t assume.
- Break the blame cycle: When going through stressful cycles, focus on how processes can be improved, and systems can be refined rather than personal accusations. Don’t lose the positive culture you have built within your firm.
Consider a Long-Term Exit Strategy
When we talk about envisioning the future of the firm, that includes providing a plan for a long-term exit strategy – something many entrepreneurs forget. That exit strategy can be because of retirement, but it can also be through an unplanned exit of one partner. Separating partner compensation into two specific “buckets” is an important consideration. One is for market-rate salaries for active operational labor, versus the second “bucket” for equity profit distributions for ownership of the business. It is important to draft clear contractual clauses to set up proactive buy-sell frameworks when forming the partnership. Draft valuation formulas and buy-out mechanisms as part of setting up your partnership. Relationship trust is high, and it may remain that way, but don’t assume. For example, one partner may pass away suddenly, and their heirs may not look at the partnership the same way.
You and your partner may be in business together for years, but think ahead to the future. Do you really just want to walk out and close the door? Begin building a sellable firm from the minute you begin your partnership. Structure your firm so that client relationships and operational systems belong to the brand entity, not just something living in the heads of the individual partners.
Forming a partnership requires a change in how you view your business. You are moving from being a single practitioner toward partnering to lead a unified, scalable business with shared purpose.
So, what is the next step? Conduct an internal partnership audit. Take the time to review your division of responsibilities. Then evaluate your Visionary/Integrator dynamic. Imagine the possibilities available in growing your firm. If you need a helping hand smoothing out your partnership, apply for a Pearl Collective program today!