Leader Analysis

In today’s dynamic business landscape, partnerships have evolved beyond joint ventures and formal alliances. They now include a wide range of relationships—between companies and investors, franchisees, analysts, labor unions, individuals, and even regulators or infrastructure providers. For leaders, the challenge is to form the right partnership: those that enhance customer value, align with long-term strategy, and support organizational growth.

The true test of leadership lies in discerning which partnerships truly serve the customer and which are distractions disguised as progress. This article explores a range of real-world examples to unpack what makes a partnership productive and what makes it perilous.

“The true test of leadership is knowing whether a partnership creates long-term value for customers—or just improves the numbers temporarily.”

The Leadership Dilemma: Value vs. Vanity Metrics

One of the biggest challenges a leader of an organization faces is staying focused on creating value for customers rather than simply making moves to improve financial numbers. For example, if an organization’s financial ratios are trending downward, it could indicate a deeper issue with value creation. Often, the best approach is to focus on the customer.

Take the U.S. railway operator CSX. Recently, activist investors from Ancora Holdings—a major fund—have pressured the company to either pursue a merger with other rail operators or for the CEO to resign. One of the main complaints from Ancora is that CSX’s operating ratio—a key measure of efficiency—has been rising, signaling a decline in operational effectiveness under the current CEO, Joseph Hinrichs. A key question in such a situation is: Will these moves create value for customers, or are they just attempts to improve the numbers without solving core issues?

Strategic Partnerships That Drive Customer Value

Some partnerships clearly aim to create future customer value through synergy and foresight. A strong example is the potential partnership between Intel and SoftBank. SoftBank is investing $2 billion into Intel, driven by its ambition to become a global leader in AI and superintelligence. Its CEO has been on an acquisition spree in the U.S.—buying a electric truck factory in Ohio to repurpose for data center equipment, investing in Arm Holdings (a chip designer), and joining the Stargate venture with OpenAI and Oracle. This investment allows SoftBank to reduce dependence on Asian chipmakers and secure a reliable chip supply chain, aligning with its long-term AI goals.

Similarly, Lowe’s acquisition of Foundation Building Materials from private equity firms reflects a strategic push into the professional contractor segment. Most of Lowe’s current customers are DIY home improvers, but Home Depot, its rival, already serves both DIY and professional markets. To stay competitive, Lowe’s plans to finance the acquisition through a mix of short- and long-term debt while maintaining its credit rating. This shows how financial discipline can enable strategic partnerships that grow market reach and enhance customer value.

Strategic partnerships can also help companies enter new markets faster. Amazon, for example, has long sought to enter the car sales market but faced state-level regulatory hurdles. Recently, Amazon partnered with Hyundai to sell new cars (with final purchases still going through Hyundai dealers). Separately, Amazon teamed up with Hertz to sell used cars on its site. This benefits Hertz by adding $1,000–$1,500 per vehicle sold, and allows Amazon to expand into a new retail category. Both sides gain—demonstrating the power of well-aligned partnerships.

Building Strong Internal Relationships: Franchisees, Analysts, and Individuals

A company’s own internal partnerships—such as with franchisees and financial analysts—are equally important. Consider McDonald’s. The company has had tensions with franchisees, especially over pricing strategies. Recently, in a bid to boost foot traffic, McDonald’s launched a value campaign offering discounted combo meals. Making this possible required intense negotiation and financial support for franchisees who risked revenue loss. This move underscores the importance of seeing franchisees as true business partners, not just distribution arms.

Another important internal relationship is with financial analysts. For example, TJX Companies (parent of TJ Maxx) recently raised its earnings guidance for 2026 to between $4.52 and $4.57 per share—to come close in line with what analysts expected. While expectations from financial analysts can create pressure, they also serve as a benchmark to ensure leaders are setting ambitious, yet realistic, goals. When managed well, this relationship can encourage growth without undermining long-term value.

Even individual investors can serve as powerful allies. Take Peter Thiel, the billionaire founder of PayPal. He backed Ethereum co-founder Vitalik Buterin, providing funding and strategic mentorship. Today, Thiel is actively investing in Ethereum, helping shape its ecosystem and legitimacy. For startups, having such individuals on your side can bring funding, credibility, and long-term strategic direction.

When Partnerships Turn Risky or Misaligned

Not all partnerships are productive—especially when the vision between parties is misaligned. A good example is real estate developer Michael Shvo After previous partners abandoned him due to tax issues, he brought on investors from Turkey and Germany. However, his strategy of charging above-market rents led to sluggish sales, forcing investors to consider asset sales. This highlights how critical it is to align on vision and strategy during due diligence.

Similarly, one of the most delicate types of partnerships is with labor unions. These relationships are unavoidable—and potentially disruptive if poorly managed. For example, in Canada, a strike by CUPE (which represents airline attendants) affected nearly 500,000 customers, leading to government-imposed arbitration. In Europe, 3,000 Airbus employees voted to strike in 2025 over pay concerns. Leaders must manage union partnerships with foresight, diplomacy, and a willingness to negotiate proactively to avoid costly shutdowns.

The Rise of Controversial and Unintended Partnerships

Some partnerships aren’t formed intentionally but evolve from operational realities. For instance, big tech firms and AI data centers are increasingly tied to energy providers. A typical U.S. data center uses as much electricity as 100,000 homes and vast amounts of water. As demand grows, cities and energy producers are starting to ask AI firms to co-invest in infrastructure or pay higher utility fees. Though not originally formal partnerships, these relationships are now shaping regulatory and operational strategy.

Another controversial trend is the “reverse acqui-hire”—where big tech companies invest in AI startups mainly to acquire their talent. Meta, for example, invested $14 billion in one such startup, securing its CEO to lead AI efforts at Meta. While this may benefit the acquiring firm, it can leave the rest of the startup team behind, undercutting morale and the spirit of innovation. It’s less of a partnership and more of a takeover—raising questions about ethics, equity, and long-term innovation.

Customer Experience: The Forgotten Stakeholder

Some partnerships appear to ignore customer interests entirely. A great example is the current state of sports streaming. Broadcasting rights for major leagues are now split across multiple platforms—Peacock, Paramount+, ESPN, FOX, Prime Video, and others. To follow a single team like the Baltimore Ravens through a season, fans may need to subscribe to six different services. Many opt to watch games at bars or public venues instead. While lucrative for content providers and leagues, this model fragments the viewing experience and alienates loyal customers. Leaders must remember: no matter the business deal, the end-user experience matters.

“Not every alliance is worth the cost. The mindset of your partner matters just as much as their capital.”

Every partnership—whether with investors, customers, employees, or regulators—reflects a strategic choice. Leaders must constantly ask: Does this relationship advance our mission? Does it improve our capacity to serve our customers? Does it align with our values?

Some partnerships—like those between Lowe’s and building suppliers, or Amazon and Hertz—demonstrate how well-aligned interests can unlock new markets and build customer loyalty. Others, like fragmented sports streaming deals or talent-acquisition takeovers, reveal what happens when business logic ignores customer experience or team cohesion.

Ultimately, successful partnerships demand more than just contracts—they require clarity, integrity, and long-term thinking. Leaders who center value creation, rather than vanity metrics, will be better positioned to navigate complexity and build ecosystems that deliver lasting impact.