Building the JV into a successful high performing alliance needs capable managers
Often best managers at the parent company are reluctant to work at the JV or want to return to parent firm after sometime
JV often gets part time managers
Under-investing in a JV is a sure fire formula for failure
Eg: Corning and Mesa in Mexico
Get the Best team in Place for the JV!!
Clearing the Hurdles Create a compelling value proposition for JV employees Get key staff from parent firm to work for the JV Specify the nature, timing, quantity of resources to be provided Establish a common risk and performance management policies for JV Have a clear cut rules for joint governance Apply loose-tight management style Align goals of JV with that of the parent Agree on short term goals for the JV first Keys to Success Managing cultural differences Career path conflicts for members of JV Parent firms to provide resources, size, timing issues have to be decided JV performance is hidden/isolated from parent firm Sharing of JV control complicates governance Parent firms have different reporting systems & metrics Different Strategic Interests & goals Challenges Organization Economics Governance Strategy