The Partnership Charter
When partners begin to experience difficulties in their business relationship, they essentially have two options: 1) Negotiate sooner in a more friendly environment. 2) Negotiate later in a tense and sometimes hostile environment.
We employ a unique and structured process for partners who want to increase their knowledge of partnerships and avoid damaging and sometimes destructive conflicts. It's called The Partnership Charter and it was developed by Dr. David Gage and BMC Associates.
The Partnership Charter is a conflict prevention tool designed to help partners avoid the pitfalls and plan for their success. It is used to discuss challenging, seldom asked, and highly sensitive issues and create guidelines and structures before the issues have an opportunity to result in conflict.
A Charter can be created when launching and selecting partners or after the partnership has been in place for years. Either time can be the right time. Some elements included in Partnership Charters can be found in partnership, shareholder, or operating agreements, however, the Charter covers these areas in much greater depth.
- Will all partners be compensated in the same way?
- How will partners get value out of the business eventually?
- Who has what title and what do the titles actually mean?
- What is our policy regarding partner sabbaticals?
- What will be our policy pertaining to other family members working in the business?
The benefits of considering a Partnership Charter include:
- Serves as a guide for the partners | principals.
- Helps in building a foundation of trust and cohesiveness.
- Minimizes ambiguity, confusion, and opportunities for dispute and conflict.
- Increases the potential for long-term relational peace and enterprise success.
- Serves in creating the appropriate legal documents in a way that truly represents the desires and values of the partners | principals.