As Tobey has pointed out in his previous blog, Strategic Alliances offer opportunities for win-win outcomes for the participants. A key factor for success is in choosing the right partners. Trust and communication among the partners is paramount to identifying and solving the many strategic and operational issues which arise on a daily basis. Honesty in setting objectives and balancing risks and rewards can keep an Alliance vital, since it can sometimes appear that one party is gaining more from the relationship than the other. Basing the Alliance on principals of openness and candor allows the relationship to evolve and grow as new opportunities are identified and executed. The culture for successful Alliances demands top-down commitment to the process of cooperation and a willingness to understand and embrace the relative strengths and weaknesses of the partners on individual initiatives.
The decision to share information between the partners carries the risk of competitive disadvantage, since the partners are usually operating in the same business areas. Starting the Alliance relationship with small, achievable projects allows the partners to get a feel for each other’s style and trustworthiness, and builds the foundation for expanding activities based on common goals. Since some Strategic Alliances end up being mergers or acquisitions, establishing the proper groundwork and culture can lead to exciting new business opportunities over and above the immediate objectives of the Alliance.
John Musser, Director
