Partner or Perish: Forging effective alliances - MaRS Best Practices
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Transcript of Partner or Perish: Forging effective alliances - MaRS Best Practices
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Buckingham Alliance Partners1
Partner or Perish:
Forging Effective Alliances
MaRS Best Practices Series:Alliance Management
John BuckinghamSeptember 9, 2011
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Buckingham Alliance Partners2
Growing your business: Build or partner?
Partner or Perish: Forging Effective AlliancesSession Objectives
Address key questions:
How does one build and maintain an effective alliance?
What defines a competent partnering organization?
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Buckingham Alliance Partners3
Partner or Perish: Forging Effective Alliances
Continuing Learning:
The leading global professional association dedicated to the formation and practice of strategic alliances
www.strategic-alliances.org
ASAP - Toronto Chapter
www.asaptoronto.com
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Buckingham Alliance Partners4
Partner or Perish: Forging Effective Alliances
Professional Certification:
Available through ASAP - Toronto Chapter
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Buckingham Alliance Partners5
What is an Alliance?
• An alliance is a collaboration
• Between independent organizations that retain strategic autonomy
• While committing resources to joint activity
• And run within an incomplete contract
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Buckingham Alliance Partners6
Major Alliance Types:
Operational alliances
• One or more key functions of a company is performed solely or primarily by an alliance partner
Project alliances
• Alliance partners collaborate on a specific project, typically with defined progress milestones and a defined termination point
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Buckingham Alliance Partners7
Alliance Business Model
Supplementary
Alliances for Supplementation/Load
Balancing
Complementary
Alliances for Complementary
Capabilities, Offerings and Skills
Core
Core Capabilities and Competencies
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Buckingham Alliance Partners8
Partner or Perish: Forging Effective Alliances
Why would we want to do this?
Alliances (collaborations) increasingly used to attain company goals:• Access to expertise• Flexible resources• Increased speed (of development, to market, etc.)• Reduced financial risk
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Buckingham Alliance Partners9
Partner or Perish: Forging Effective Alliances
Why would we want to do this?
Alliances (collaborations) increasingly used to attain company goals:• Access to expertise• Flexible resources• Increased speed (of development, to market, etc.)• Reduced financial risk
Less than 40% of alliances meet their stated objectives• Misalignment of partner goals• Miscommunications• Poor execution• Changed financial prospects• Technical failure
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Buckingham Alliance Partners10
Partner or Perish: Forging Effective Alliances
Why establish an alliance competency?
Increase the proportion of alliances that meet or exceed their goals (and management expectations)
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Buckingham Alliance Partners11
Partner or Perish: Forging Effective Alliances
Why establish an alliance competency?
Increase the proportion of alliances that meet or exceed their goals (and management expectations)
Accelerate `institutional learning’ of effective (and destructive) behaviors affecting collaborations: enhanced organizational awareness
Build consistency in effective alliance design, integration and maintenance processes
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Buckingham Alliance Partners12
Partner or Perish: Forging Effective Alliances
Why establish an alliance competency?
Increase the proportion of alliances that meet or exceed their goals (and management expectations)
Accelerate `institutional learning’ of effective (and destructive) behaviors affecting collaborations: enhanced organizational awareness
Build consistency in effective alliance design, integration and maintenance processes
Enhance company reputation as a skilled, successful partnering organization (to secure more, and more capable, partners)
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Buckingham Alliance Partners13
Partner or Perish: Forging Effective Alliances
Key Alliance Management Competencies:
4.Communicating Effectively5.Leading by Influencing6.Gaining Value from Diversity7.Building and Maintaining Trust
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Buckingham Alliance Partners14
Alliance Management Principles*
•Clear Responsibilities and Expectations
•Robust Communication
•Senior Management Commitment
•Understanding one’s Partner
•Disciplined Improvement Approach
•Effective, Efficient Processes
•Broad-based Alliance Capability
* Adopted by ASAP from `Endo Alliance Management Principles’
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Buckingham Alliance Partners15
Internal Organization for Alliance Management
Key Elements:
Senior Management Sponsor
Alliance must serve sponsor’s organizational goals
Dedicated Alliance Leader
`Mindshare’ or formal designation
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Buckingham Alliance Partners16
Effective Senior ManagementSponsorship of Alliances
Why is Effective Sponsorship critical?
Alliance failure rate – key factors:
Internal support for resourcing and decision-making
Ensuring alignment on key issues across partner organizations
Effective dispute resolution
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Buckingham Alliance Partners17
Alliance Leadership Alternatives
Integrated LeadershipShared Leadership
Internal/external
Product Objectives/ Relationship Objectives
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Buckingham Alliance Partners18
Alliance Integration
Alliance Maintenance
Alliance Transformation
AllianceNegotiation
ContractNegotiation
CollaborationIntegration
AgreementSigning
Alliance Life Cycle
Monitoring
AllianceChange or Termination
Prevention Diagnosis Treatment
ProblemResolution
R&D Commercialization
AllianceManagement
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Buckingham Alliance Partners19
ManageRe-evaluate:
Revise or Terminate
Sign Launch/ Integrate
Negotiate
Evaluate
Identify/ Recruit Opportunities
BD
AM
Establishing an Alliance Management Competency
Alliance Management: Business Development Interface
Deal-Making and Deal-Managing:An Integrated, Transparent Process
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Buckingham Alliance Partners20
Alliance Management Perspective: Adding Value During Deal Negotiations
Three Main Considerations:
• Due diligence: partner candidate assessment • Effective relationship development
• Designing the appropriate collaboration structure
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Buckingham Alliance Partners21
Integrating a New Alliance
Key Considerations:• Appointing a qualified alliance leader and a senior management `sponsor’• Timely recruiting of alliance-facing staff
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Buckingham Alliance Partners22
Integrating a New Alliance
Key Considerations:• Appointing a qualified alliance leader and a senior management `sponsor’• Timely recruiting of alliance-facing staff• Joint communication of management expectations and contractual requirements to the alliance team and leader• Joint alliance team formation and relationship-building• Establish alliance team charter
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Buckingham Alliance Partners23
Alliance Team Charter TemplateGuidance Resource for Alliance Management
Purpose: Provides focus, alignment and operational guidance to each alliance relationship. Serves as an operational reference and guide through the alliance lifecycle as a companion to contractual agreements and project plans.
Allied Companies: Your and XYZ Company
Alliance History and Background
Alliance Focus (Mission, Spirit of Alliance, High-Level Objectives/Milestones)
Alliance Working Guidelines(Addressing the Alliance Essentials)
Performance Measurement (Measuring and Monitoring Performance)
Roles and Responsibilities (Company Roles and Key Individual Roles)
Key Sections:• Alliance mission, objectives
and spirit• Roles and responsibilities• Working guidelines• Metrics and performance
measurement
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Buckingham Alliance Partners24
Alliance Integration
Alliance Maintenance
Alliance Transformation
AllianceNegotiation
ContractNegotiation
CollaborationIntegration
AgreementSigning
Alliance Life Cycle
Monitoring
AllianceChange or Termination
Prevention Diagnosis Treatment
ProblemResolution
R&D Commercialization
AllianceManagement
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Buckingham Alliance Partners25
Alliance `Health Check’ SurveysAssessment Resources for Alliance Management
Alliance Health Check
Purpose: Primary measurement mechanism for Relationship Performance factors
Strongly Disagree
Disagree
Neutral
Agree
StronglyAgree
1. Alliance Focus (Goals and Objectives) a. Sensor Question b. Sensor Question c. Sensor Question
2. Roles and Responsibilities a. Sensor Question b. Sensor Question c. Sensor Question
3. Decision Making
a. Sensor Question
b. Sensor Question
Key Features: Provides regular checkpoint
on essential Alliance competencies
2-3 “sensor” questions per Relationship factor
Results discussed with partner, to identify and understand areas for improvement and reasons for successful outcomes
Action plans developed and implemented through Alliance Team
3. Relationship Trust
a. Sensor Question
b. Sensor Question
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Buckingham Alliance Partners26
Effective Senior ManagementSponsorship of Alliances
Typical Alliance Governance Framework
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Buckingham Alliance Partners27
Strategic Importance to Alliance Partner
Str
ateg
ic Im
port
ance
to
You
r C
ompa
ny
Low High
Low
High Imbalance Balance
Balance Imbalance
Establishing an Alliance Management Capability
Alliance Structure and Management Considerations
Vulnerable Enthusiast
Potential Bully
Dynamic Duo
Simple Pairing
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Buckingham Alliance Partners28
Growing your business: Build or partner?
Partner or Perish: Forging Effective AlliancesSession Objectives
Address key questions:
How does one build and maintain an effective alliance?
What defines a competent partnering organization?
![Page 29: Partner or Perish: Forging effective alliances - MaRS Best Practices](https://reader033.fdocuments.us/reader033/viewer/2022060110/555a5a36d8b42a47748b4fa7/html5/thumbnails/29.jpg)
Buckingham Alliance Partners29
Partner or Perish: Forging Effective Alliances
Questions?