Konosuke Matsushita the legendary founder of Panasonic, put it,
"Business is people.
Business success is achieved by getting each and every
person in the organization to be more successful in the job they do.
The Tree of Business Succes
suggests to take the following human resources (HR) action steps to
prepare for a successful joint venture.
screening of prospective
joint development of a detailed
business plan and shortlisting a set of prospective partners based on
their contribution to developing a business plan
due diligence – checking the credentials of the other party ("trust and
verify" – trust the information you receive from from the prospective
partner, but it's good business practice to verify the facts through
interviews with third parties)
development of an exit
strategy and terms of dissolution of the joint venture
structure (e.g. most joint ventures involving fast growing companies are
strategic corporate partnerships)
appreciated or depreciated property being contributed to the joint
venture; by misunderstanding the significance of appreciated property,
companies can fundamentally weaken the economics of the deal for
themselves and their
special allocations of
gain, loss or deduction to be made among the partners
compensation to the
members that provide services.
Steps to Prepare for a Successful
Source: Joint Ventures: Minimizing Risk and Maximizing Success,
Business Strategy. Begin with a sound,
Before moving forward, determine and explain why you wish to enter into a
joint venture, why you have chosen your partner(s), and what you hope to
achieve. Define involvement (managerial, capital, etc) of the parent
companies and how long the JV will last. Put in place strategies to define
decision-making process, and conflict- and
issue-resolution procedures. Ensure buy-in and participation at the highest
level. Consider outcomes: what could cause you to terminate the joint
venture, and what is the preferred exit strategy.
Human Resources (HR) Strategy.
Develop HR strategies that align and support the goals of the JV: develop a
distinct identity and
culture for the new organization; communicate
aggressively to employees; and establish distinct career paths, management,
and a means of return for employees transferred to the JV. Create
incentive, and retention programs tied to the success of the JV.
communication between the HR departments of the parents and
Leadership. Define a process for
leadership selection that's seen as fair and credible, and name top-tier
leadership as soon as possible. Look for key indicators of
potentials such as behavior, past experience, and measurable outputs.
12 Major Causes
of Failure in Leadership
Communication. To engage and motivate
communication should be frequent and used to create a common
vision, establish a connection with leadership, explain the new rules,
support the individual transition process, aid in retention, and ultimately,
define the new organization in terms of "We" instead of an "It" or "They".
Share as much information as you can, and never sugar-coat or make false
Talent. Make the identification,
motivation of the key talent a top priority. As times of uncertainty can
lead to defections, take strong counter-measures to prevent them. Paying
close attention to the specific skills, knowledge, and behavior that will be
required to achieve the new organization's business objectives, identify the
key players in both the parent companies who will be needed during the
transition to a joint venture organization and beyond. Be aware of which
employees are most at risk for recruitment by other organizations and
collect data on the causes and costs or turnover that might influence which
employees to target and which retention practices to implement. Conduct
employee research to help the new organization determine what matters to
employees and can serve as the foundation for all programs and