The following guidelines will be of help in successfully managing alliances.
following guidelines will be of help in successfully managing alliances.
- Have a clear strategic purpose. Integrate the
alliance with each partner’s strategy. Ensure that mutual value is created for
- Find a fitting partner with compatible goals and
- Identify likely partnering risks and deal with them
when the alliance is formed.
- Allocate tasks and responsibilities so that each
partner can specialize in what it does best.
- Create incentives for cooperation to minimize
differences in corporate culture or organization fit.
- Minimize conflicts among the partners by clarifying
objectives and avoiding direct competition in the market place.
- If an international alliance, ensure that those
managing it should have comprehensive cross-cultural knowledge.
- Exchange human resources to maintain communication
and trust. Don’t allow individual egos to dominate
- Operate with long-term time horizons. The
expectations of future gains can minimize short-term conflicts.
- Develop multiple joint projects so that any
failures are counterbalanced by successes
- Agree upon a monitoring process. Share information
to build trust and keep projects on target. Monitor customer responses and
- Be flexible in terms of willingness to renegotiate
the relationship in terms of environmental changes and new opportunities.
- Agree upon an exist strategy for when the partners’
objectives are achieved or the alliance is judged a failure
Tags : Strategic Management - Strategy Formulation
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