Compete or Collaborate for Business Success?
Compete or Collaborate for Business Success?
From the water holes in Africa to boardrooms worldwide, what we do together pays off.
There’s long been a tendency to “crush the competition.”
Across the world, economic downturns and financial stress dominate discussions everywhere - from the news and boardrooms to virtual meetings and everyday conversations. This focus impacts businesses, governments, and personal lives. It is challenging to concentrate on creating and capturing new commercial or impact-led outcomes. Collaboration feels like a nice-to-have strategy however one that is not essential.
Yet, in the natural world, collaboration is more than just a strategy; it is a fundamental aspect of survival and success. This principle of cooperation, crucial during times of uncertainty and complexity, is illustrated in several phenomena and offers lessons for global leadership.
Natural World Collaborations
A striking example of collaboration in nature is the symbiotic relationship known as mycorrhizae, where fungi and plants form a mutualistic association. Here, fungi colonise the root systems of plants to enhance the plant’s absorption of water and nutrients, especially phosphorus. In return, the plant supplies the fungi with carbohydrates produced through photosynthesis. This collaboration boosts the growth and survival of each organism and also strengthens the entire ecosystem’s resilience and productivity.
Similarly, African elephants demonstrate the power of cooperative effort when they use their tusks to dig into dry riverbeds to create water holes during the dry seasons. These water holes are vital for the elephants and also for a host of other species that rely on this water for survival. This action showcases how collaborative efforts can significantly enhance resource availability in an ecosystem while benefiting a broad array of organisms.
Coopetition Among Competitors
These examples of collaboration in nature can be mirrored in the business world, where even competitors find value in strategic alliances. Here are instances where companies and countries, traditionally seen as rivals, have collaborated to enhance their market offerings or advance scientific discovery while achieving greater win-win, positive-sum outcomes:
India: Reliance Jio and Bharti Airtel
Telecom giants, Reliance Jio and Bharti Airtel, joined forces to lay submarine optical fibre cables to build India’s internet infrastructure1. Despite being fierce competitors in the telecom market, their collaboration aimed to provide better connectivity and internet speeds across the country. They demonstrate a win-win outcome for both companies and their customer bases. This strategic alliance allowed them to share resources and reduce costs while improving service quality and expanding their market reach.
Africa: Telekom, Safaricom and Airtel
In Kenya, mobile network operators Telekom, Safaricom and Airtel collaborated to allow interoperability of their mobile money services, T-Kash, M-Pesa and Airtel Money. This move was aimed at enhancing the customer experience by making transactions more seamless across different networks, which is particularly important in a region where mobile money plays a critical role in financial inclusion2.
China: Alibaba and Tencent
In a rare move, Chinese tech giants Alibaba and Tencent participated in a government-driven initiative to develop a standard technology for digital invoicing. This collaboration was part of China’s broader efforts to digitise government and business operations. They aimed to create more efficient processes and reduce fraud while leveraging technology to drive market expansion3.
Middle East: SESAME (Synchrotron-light for Experimental Science and Applications in the Middle East)
SESAME is a major scientific research facility in Jordan that operates much like the European Organization for Nuclear Research (CERN)4. It brings together members from countries that are often in political conflict, including Iran, Israel, Egypt, Turkey, Pakistan, and the Palestinian Authority. The facility is used for advanced research in physics, biology, chemistry, and archaeology. It has a history of promoting scientific cooperation and peace in the region. The project is supported by UNESCO and other international agencies and demonstrates a commitment to collaborative, non-profit scientific advancement.
USA: Apple and Google
During the COVID-19 pandemic, these tech giants collaborated on a contact tracing technology to help health authorities track virus exposure without compromising privacy5. This partnership was significant because it brought together two competitors to address a critical global health crisis.
Global: Uber and Lyft
In various cities, these ride-sharing competitors have collaborated on regulatory and policy fronts to shape the future of urban mobility in ways that benefit both companies and their customer bases6.
Unlocking Greater Value
Dan Sullivan from Strategic Coach discusses the concept of “10x” individuals - those who aim to grow their capabilities and results by tenfold rather than by incremental percentages. Sullivan advocates for these highly ambitious individuals to join forces with others who share a similar mindset. He believes that when 10x thinkers collaborate, the pooling of resources, ideas, and energy accelerates growth and innovation and also creates a multiplier effect that can far exceed what any of them could achieve alone.
Sullivan’s perspective highlights the value of strategic alliances, especially among leaders driven to amplify the impact of their ambitious goals.
With the world being unbalanced, economically, socially, environmentally, and politically, what insight does this hold for leadership?
In times of external complexity and contraction, it can be natural for leaders to focus on what is local and within their control. Is there an alternative?
Will the joining of forces to drive strategic outcomes become a standard leadership capability of tomorrow?
Shifting from Globally Aware to Globally Active
When the most significant trends, technologies, and threats originate far from where we live and work, the ability to think and act globally, while leading locally, becomes a strategic advantage.
As illustrated below, moving from being Globally Aware to Globally Active represents a crucial transition. It is a key enabler of collaboration.
Globally Aware leaders are well-informed about the changes and challenges in the global landscape. They understand international trends, the activities of global peers, and the broader impacts of interconnectivity on business and society. However, their actions may still be rooted in local or traditional networks or approaches.
In contrast, Globally Active leaders not only comprehend these global dynamics but actively engage with them. They implement strategies that leverage global networks, understand and integrate innovations beyond local markets, and seek to inform, influence, or create change on a global scale. These leaders are participants in the global economy while being proactive architects of their organisations’ contributions to key industry and regulatory global shifts.
This transition involves turning awareness into strategic actions that drive commercial success and benefit society. It’s crucial for leaders aiming to achieve sustainable, win-win outcomes.
“The challenges of the world are so large that they cannot be solved by any one person or one institution. We need collaboration.” - Paul Polman, former CEO of Unilever
Strategic Collaboration
The digital interconnectivity of today’s business world suggests that collaboration is not just beneficial; it is essential for tackling complex challenges and seizing new opportunities. Business leaders can draw inspiration from natural phenomena and successful global collaborations to foster partnerships that are strategic, innovative, and responsible. These alliances drive commercial success and also contribute to a more sustainable and equitable world. They reflect the interconnected and interdependent nature of our global community.
There’s more to the world than what we see.
When we shift our strategic focus from competing to collaborating, we unlock a world of possibility and elevate our global leadership capabilities.
It becomes possible to lead locally, anywhere, while thinking and acting globally.
What is your favourite collaboration that successfully crossed international borders and broke down barriers?
If you could collaborate with any leader or organisation globally, to create a new solution, product, service, or business, who would it be?
Further Reading:
‘How Collaboration Can Work For Business Growth’ by Dan Sullivan (link here)
‘Global Shift | Active Global Leadership’ by Sophie Krantz (link below)
https://economictimes.indiatimes.com/industry/telecom/reliance-jio-bharti-airtel-join-hands-for-sharing-infrastructure/articleshow/27188091.cms?from=mdr
https://www.safaricom.co.ke/media-center-landing/press-releases/telkom-safaricom-and-airtel-integrate-mobile-money-services
https://equalocean.com/news/201903251637
https://home.cern/news/news/knowledge-sharing/sesame-growing-focal-point-regional-scientific-collaboration
https://www.apple.com/au/newsroom/2020/04/apple-and-google-partner-on-covid-19-contact-tracing-technology/#:~:text=In%20this%20spirit%20of%20collaboration,security%20central%20to%20the%20design.
https://eprints.qut.edu.au/84979/2/84979.pdf