Discuss collaboration, and describe the elements of successful collaboration.

Collaboration occurs when companies work together for mutual benefit and goes well beyond vague expressions of partnership and aligned interests. It means that companies leverage each other on an operational basis so that together they perform better than they did separately. It creates a synergistic business environment in which the sum of the parts is greater than the whole. Below are some elements that are central to successful collaboration:

Well-Understood Goals and Objectives Members of the collaboration need to understand their individual organizational objectives and then be willing to share these openly with each other.

Trust and Commitment Widely recognized as a fundamental relationship building block, trust may be thought of as reliance on and trust in one's partner.

Corporate Compatibility Of greatest importance here is that the relationship include a sharing of vision, goals, objectives, and cultures.

Communication Regular communication and sharing/use of information are central to an effective collaborative relationship.

Shared Decision Making and Ability to Reach Consensus on Matters of Importance Matters that are related to the success of the relationship should be treated jointly by all involved organizations.

Equitable Sharing of Gains, Losses, and Investments Although many organizations demonstrate a dedication to their individual objectives, successful collaborations require the development of mechanisms to share gains, losses, and investments.

Overall Benefits to Involved Parties Greater Than Could Be Obtained Alone To be sustainable over the longer term, successful collaborations need to create benefits for the involved parties that exceed what those organizations could accomplish individually.

Effective Measurements and Measurement Strategies A dedication by all involved participants in collaboration measurements and the development of measurement strategies will be a key to the success of the relationship. Essentially, key performance indicators (KPIs) that require ownership and commitment to the objectives by all involved parties are needed.

Strategic Plan for Collaborative Relationship Successful collaborations are not without their challenges and difficulties. Thus, the development of a strategic plan for the relationship itself should be of great value.