August 18, 2008
Plan for Failure
Posted by Kevin | Print This Article
An important point raised during this morning’s workshop on “The Power of Partnerships” (yes, my second workshop on partnerships — can you sense a theme?) was about planning for failure. Jeff Tenenbaum, an attorney with the Venable law firm (and an excellent attorney he is — he is our organization’s outside counsel) talked about ensuring that the legal documents drawn up in any partnership include a well-thought-out exit procedure (be they some sort of cooperation agreement or the creation of a jointly-owned legal entity).
“Planning for failure” is something that those of us with an entrepreneurial bent have a hard time getting used to. It’s a gung-ho nature and optimism that fuels many outrageously successful things. But part of maturation as an association executive is recognizing that the world’s roadside is strewn with many great ideas and grand visions that fell down along the way. And it’s one thing to try something new and fail all by yourself; when other parties are involved, it can get messy.
As Jeff asked — what happens when the partnership ends? Who owns the intellectual property? How are assets split? Who can end it, why and how? It’s important to address these issues at the beginning, while being very careful and clear-eyed, before the stars in your eyes dim.
Excellent theme for ASAE, as we all hustle for these partnerships and then do not adequately plan for the sometimes inevitable. We are working through several of these in our association this month.