As critical drivers of growth, strategic alliances should be up there with M&A as a top priority for CEOs. But success is dependent upon rigorous planning, execution and nurturing.
Numerous businesses across multiple sectors have demonstrated the power of strategic alliances, to bring together complementary capabilities to mutual commercial benefit. Despite a growing body of evidence that strategic alliances can help to transform business and operating models and deliver attractive financial outcomes, they continue to suffer from fundamental misperceptions that reduce their effectiveness. These include:
Our own experience from forming strategic alliances, and our conversations with clients, have taught us that they should be led by a dedicated team that can manage the interdependencies between the three core elements for success:
In this article we look at the evolving strategic alliance landscape, consider why some strategic alliances succeed and some fail, and highlight the key steps to an effective partnership that meets both parties’ interests.