Simple Rules for Making Alliances Work by Jonathan Hughes and Jeff Weiss, Harvard Business Review
Studies show that the number of corporate alliances increases by some 25% a year and that those alliances account for nearly a third of many companies’ revenue and value—yet the failure rate for alliances ho on how to make alliances win the past decade.
Alliances, however, are not just any business arrangement. They demand a high degree of interdependence between companies that may continue to compete against each other in the marketplace. They require the ability to navigate—and often to actively leverage—significant differences between partners’ strengths and operating styles. These characteristics make the common wisdom about alliance management both incomplete and misleading, causing companies to ignore or underemphasize other, potentially more important drivers of success.
To begin achieving reliably higher success rates with their alliances, companies need to shift their focus to five principles that complement the conventional advice. This means: