‘It’s smaller than I thought’ -- a common phrase overheard in the presence of Da Vinci’s Mona Lisa hanging in the Louvre museum in Paris. A wildly undeserving observation, however, when thinking about the impact of the painting and its meticulous execution. Likewise with successful joint ventures.
Joint ventures can be an efficient way to add scale, avoid the risk of an outright acquisition, enter new markets and create new business relationships. But they also bring huge risks and uncertainties when undertaken in the dark. If would-be partners don’t think through strategy and execution carefully in advance, they are more likely to destroy value rather than create it. Small partnerships can create disproportionately large and painful problems, whilst large ones frequently fail to create much value at all. Happily, art provides a compelling framework for bringing light and clarity to the creation of joint ventures, as we explore below. Read on...