Strategic alliance development and implementation is a proven and effective method for growing your business, especially when you have limited resources. In realizing value from a strategic alliance, the implementation element is always the challenge.
Successful alliance development and implementation calls for both art and science. Excellent communication requires both. Communication challenges, in my opinion, is at the core of most failed alliances. The tips below will help you to vastly improve your alliance communication and hugely increase your chances for success.
Ten Tips for Alliance Success
1. Behave toward your alliance partner the way you want them to behave toward you. The basic idea in the Biblical Golden Rule. It works!
2. It’s more important to be a good alliance partner and get things done, then to obsess on being right. Focus on the getting things done aspect of your relationships and conflict will be reduced.
3. Make relationship bank deposits before you try to make a withdrawal. Put a little skin in the game before try to get anything.
4. Regularly share relationship value updates with your alliance partner. This is like being the proverbial fly on the wall when others are talking about you. The more you know the truth, the better you can move into effective action.
5. Know what your partner needs. How in the world can you create value for your alliance partner if you do not understand that drives their business. You can only make valued relationship bank deposits when you do the actions for your partner that they truly need.
6. Be clear about what you want from your alliance relationship and what you are willing to give to it. You will only get what you need when you know what you need and are capable of asking for what you need.
7. Be committed, always show your confidence and passion toward your alliance. Your employees, suppliers, and customers are watching. Showing fear of alliance success is like raw meat to the sharks. Don’t do it.
8. Do more for your alliance partner than you promised, exceed their expectations. This is the “Lagniappe” effect–giving a little extra or a little something that was not expected. Be generous (I didn’t say stupid) and it will have a positive effect on your partner.
9. Resolve conflict immediately. No way do you want issues festering and growing out of proportion. Deal with the unpleasant things right away and thereby, keeping them under control.
10. You can’t partner with an organization or individual that doesn’t want to be a good partner. Try, and you’ll get, at best, the short end of the stick–at worst your business could be mortally wounded. Pick your partners well and you will be rewarded.
Outrageously Successful Partnering Relationships Alliance Market Penetration
As the idea of strategic alliances matures, the reasons for developing these alliances have shifted greatly over the last 20 years. In the late 1980s, manufacturing and R&D alliances were in the forefront. Today, co-marketing alliances appear to be taking center stage.
The Association of Strategic Alliance Professionals recently released their The Second State of Alliance Management Study, 2007. Their survey was done internationally and participants came from several sectors, including: information technology, pharmaceuticals, biotech, chemicals, manufacturing, software, financial services, public, and various other sectors.
In fact, 48% of the companies surveyed stated that they employed co-marketing alliances while only 14% used research alliances. For distribution alliances, 13% used them and co-production alliances merely rated 10% participation.
Available to you are a number of additional tools; Alliance Quiz, Sample Partnering Agreements, the first chapter of my book, Developing Strategic Alliances and many other valuable tools. There is no excuse for alliance failure if you put your mind to it. To access this helpful at no charge, please visit www.rigsbee.com/downloadaccess.htm.