• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Successful partnerships and strategic alliances
 

Successful partnerships and strategic alliances

on

  • 1,702 views

This ebook provides an introduction into partnerships and strategic alliances and how to create them successfully. The 80% rule is explained and you will understand why the 80% rule is important to ...

This ebook provides an introduction into partnerships and strategic alliances and how to create them successfully. The 80% rule is explained and you will understand why the 80% rule is important to your partnerships too.

Statistics

Views

Total Views
1,702
Views on SlideShare
1,693
Embed Views
9

Actions

Likes
1
Downloads
83
Comments
0

1 Embed 9

http://www.linkedin.com 9

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Successful partnerships and strategic alliances Successful partnerships and strategic alliances Document Transcript

    • ! Successful Partnerships & 
 Strategic Alliances ! A"journey"into"the"how"and"why"of"partnerships"&"strategic" alliances"including"a"roadmap"to"navigate"them"to"success" ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! " Peter%J.%Simoons,%CSAP

    • Successful(partnerships(&(strategic(alliances( ! ! ! Successful%Partnerships%&%
 Strategic%Alliances%%% ! A"journey"into"the"how"and"why"of"partnerships"&"strategic" alliances"including"a"roadmap"to"navigate"them"to"success" ! ! Peter"J."Simoons,"CSAP" peter@simoons.com
 www.simoons.com" ! ! ! ! Version"1.2"C"©2014"All"Rights"Reserved" Simoons"&"Company"–"Voormeulenweg"73"–"1402"TH""Bussum"–""The"Netherlands" +31"20"894"6214"C"peter@simoons.com"C"www.simoons.com" KvK"32146771""–"BTW"NL1213.86.454.B01"
 2
    • Successful(partnerships(&(strategic(alliances( Contents% IntroducXon" 4".................................................................................................................... Strategic"Alliances"" 5".......................................................................................................... Why"would"you"partner"in"strategic"alliances?" 8"............................................................... A"small"business"example" 10"............................................................................................. The"alliance"spectrum" 11".................................................................................................. Why"many"alliances"fail"C"the"80%"rule" 14"......................................................................... The"alliance"lifecycle"to"enhance"alliance"success" 16"........................................................ Conclusion" 20".................................................................................................................... Appendix"1:"The"contribuXons"matrix" 21".......................................................................... Appendix"2:"FuncXonal"relaXonship"mapping" 22".............................................................. About"Peter" 25.................................................................................................................. 3
    • Successful(partnerships(&(strategic(alliances( Introduc<on% Business"partnerships"and"alliances"are"an"increasing"important"strategic"way"to"help" organizaXons"grow."In"1998"Yves"Doz"and"Gary"Hamel"already"wrote"“No(Company(can(go(it( alone”"as"the"opening"statement"of"their"book"“Alliance"Advantage”."Today"this"is"more" applicable"than"ever."The"challenge"is"to"do"alliances"in"a"successful"way."They"bring"a" different"dynamic"than"organic"growth,"with"less"control"and"more"need"for"trust." This"book"takes"you"on"an"introducXon"journey"into"the"topic"of"strategic"alliances."It" explains"why"a"structured"approach"enhances"the"chances"for"success"and"it"gives"an" introducXon"on"how"best"to"approach"these"partnerships"and"alliances."When"talking" strategic"alliances"I"equally"mean"partnerships,"collaboraXons"and"joint"ventures"between" organizaXons."As"we"will"see"later"on,"the"term"is"widely"used"for"various"forms"of" partnering"between"two"or"more"organizaXons."It"can"also"depend"on"the"industry"you"are" working"in"and"the"size"of"your"company."I"have"noXced"that"solo"entrepreneurs"more" ohen"talk"about"establishing"joint"ventures"whereas"large"organizaXons"talk"about"strategic" alliances."When"these"large"organizaXons"use"the"words"joint"venture,"they"ohen"mean"a" separate"organizaXon"where"they"and"their"partner"jointly"hold"the"shares."" We"will"address"these"differences"when"discussing"the"reasons"for"partnering"and"have"a" look"at"the"alliance"spectrum."" This"book"is"merely"an"introducXon"on"the"topic,"it’s"purpose"is"to"inspire"you"and"show" you"how"a"process"can"help"increase"the"chances"for"success"in"your"strategic"alliances"&" partnerships." ! 
 4
    • Successful(partnerships(&(strategic(alliances( Strategic%Alliances%% Since"Doz"and"Hamel"wrote"“Alliance"Advantage”,"much"has"happened"in"the"world." CommunicaXon"technologies"over"the"Internet"have"increased"reachability"and"the"world" has"become"flaker"than"even"Thomas"Friedman"anXcipated."China"is"virtually"nextCdoor" nowadays."These"changes"combined"bring"new"compeXXon"and"new"opportuniXes"that" you"would"probably"not"have"even"expected"five"years"ago."Amazon"is"a"good"example"of" an"organizaXon"that"knows"how"to"leverage"these"new"opportuniXes"and"has"become"an" unexpected"threat"for"local"companies."For"a"long"Xme"local"booksellers"around"the"world" did"not"see"onCline"bookseller"Amazon"as"a"serious"compeXtor."Times"have"changed."Today" Amazon"is"no"longer"just"a"bookseller;"it"is"a"global"onCline"retailer"with"a"broad"pornolio," and"a"compeXtor"to"many.""" Driven"by"the"economy,"companies"are"careful"with"investments"and"reluctant"with" acquisiXons."When"asking"the"quesXon"“make,"buy,"or"ally?”"regarding"a"growth"strategy," the"ally"opXon"might"be"more"viable"than"ever."Are"alliances"an"opXon"for"every"growth" quesXon?"Before"we"can"answer"that"quesXon"we"need"to"look"at"the"definiXon"of" alliances."I"already"noXced"that"there"are"several"terms"used"for"alliances,"where"people" might"have"the"same"intenXon."So"for"the"sake"of"clarity"let’s"define"what"we"mean"with"a" strategic"alliance"in"this"book." The"definiXon"of"a"strategic"alliance"is:"" “A(strategic(alliance(is(a(strategic(coopera8on(between(two(or(more(organiza8ons,(with(the( aim(to(achieve(a(result(one(of(the(par8es(cannot((easily)(achieve(alone.”"" A"strategic"alliance"has"per"definiXon"a"focus"on"the"long"term."Partners"will"contribute"part" of"their"resources"to"realize"the"success"and"will"in"exchange"receive"part"of"the"control"and" benefits"from"the"alliance."" When"establishing"alliances"it"is"important"to"look"at"contribuXons"and"returns"of"an" alliance."Hence"alliances"will"only"be"an"answer"to"your"growth"quesXon"when"you"are" contribuXng"too."A"pure"sales"transacXon"does"not"fit"the"definiXon"of"an"alliance."You"will" be"contribuXng"as"the"seller"and"you"will"receive"the"benefit"of"the"revenue,"but"it"is"a" transacXonal"relaXonship"and"not"a"long"term"focus."Also"nothing"is"generated"that"you" could"not"achieve"alone."" ! 5
    • Successful(partnerships(&(strategic(alliances( The"definiXon"menXoned"is"a"basic"definiXon"that"covers"the"essence"of"a"strategic"alliance." In"the"Alliance"ConversaXon "I"conducted"a"series"of"interviews"with"people"working"in"the"1 alliance"domain"and"asked"each"of"them"the"quesXon"“What"is"for"you"a"strategic" alliance?”."" The"answers"that"I"received"contained"several"angles"to"the"definiXon"of"a"strategic"alliance" and"emphasized"that"an"alliance"can"mean"different"things"to"different"people."To"expand"a" bit"on"the"previous"definiXon"of"a"strategic"alliance"here"are"some"of"the"expert"opinions"in" their"own"words:" Tom"Halle"appeared"in"the"very"first"episode"of"The"Alliance"ConversaXon."Tom"is"a"strategic" alliance"professional"based"in"San"Diego,"CA"and"answered"to"the"quesXon:" A(strategic(partnership(is(where(you(cri8cally(need(something(that(I(have(or(something( that(I(am(capable(of(delivering(and(I(cri8cally(need(that(from(you(as(well,(sufficient(to( get(the(interests(of(our(execu8ves(on(both(sides(and(to(get(some(real(commitments(to( showing(each(other(preference(and(inves8ng(in(the(joint(business.(( Being"in"strategic"alliances"for"15"years,"Anoop"Nathwani"gave"in"our"conversaXon"the" following"definiXon"of"a"strategic"alliance:" For(me(an(alliance(in(a(business(environment(is(where(two(companies(have(a(need(to( work(together,(for(either(from(a(technology(leadership(perspec8ve,(or(from(a(product( leadership(perspec8ve.(Quite(oIen(it(is(driven(by(compe8tor(ac8vity(or(a(requirement( for(growth(as(one(of(their(strategies.((( You(can(have(a(build(strategy,(a(buy(strategy(and(the(third(op8on(is(the(partnering( strategy.(The(drivers(tend(to(be(either(accelera8ng(growth,(or(compe8tor( ac8vity.(Now,(from(a(strategic(alliance,(par8cularly(in(large(organiza8ons,(it's(where( two(very(large(organiza8ons(get(together(and(fundamentally(do(something(that(is(so( game(changing(and(it's(very(very(strategic(in(the(long(term(in(its(very(nature.(That's( what(I(would(then(class(as(a(strategic(alliance(as(opposed(to(a(normal(alliance.( Donna"Peek"is"the"Global"Alliance"Program"Manager"at"SAS"InsXtute"and"shared"the" definiXon"she"most"ohen"uses:" The(best(defini8on(that(I’ve(seen(for(what(strategic(alliance(is,(is(one(I(came(across(in(a( book(I(read(several(years(ago(by(Neil(Rackham.(The(book(is(called(“GeSng(Partnering( 6 "The"Alliance"ConversaXon"series"can"be"downloaded"from"hkp://www.simoons.com/allianceconversaXon/"and"the"current"podcast"series"with"1 guest"in"the"field"of"alliances"and"partnerships"can"be"found"at"hkp://simoons.com/cbp
    • Successful(partnerships(&(strategic(alliances( Right”.(I(do(a(lot(of(reading(about(strategic(alliances(and(in(this(book(Neil(Rackham( defines(a(strategic(alliance(as(a(partnership(between(two(companies(where(three( elements(are(present:(vision,(impact(and(in8macy.(( By(vision(he(means(a(compelling(picture(of(the(possibili8es.(What(can(the(partnership( achieve(and(how(is(it(going(to(get(there?(By(impact(he(means(the(capacity(to(deliver( real(tangible(results.(So(impact(really(is(the(‘raison(d’être’(of(a(strategic(alliance.(If( you’re(not(crea8ng(impact(in(the(market,(it’s(not(a(strategic(alliance.(And(then(lastly( in8macy,(which(is(a(level(of(trust(and(informa8on(sharing(between(the(two(companies,( that(really(makes(the(vision(and(impact(possible.(( So(to(me(when(you’re(talking(about(a(strategic(alliance,(you’re(talking(about(a( partnership(where(those(three(elements(are(present.(If(they’re(not(present,(you’re(not( talking(about(a(strategic(alliance.(((( Jan"Twombly"is"president"of"Rhythm"of"Business"and"a"board"member"of"the"AssociaXon"of" Strategic"Alliance"Professionals"(ASAP)."Jan"extended"the"definiXon"with"an"example"to" include"collaboraXve"networks:" When(we(look(at(an(alliance,(generally(what(we(see(is(a(contractual(rela8onship(in( place.(At(the(8me(that(the(contract(is(established,(the(alternate(risk(and(reward(can't( really(be(determined,(because(there(are(events(that(are(going(to(occur(in(the(alliance( that(can(impact(the(value(and(also(the(risk(that(exists(in(any(alliance.(( If(you(broaden(that(out(to(a(collabora8ve(network,(a(collabora8ve(network(is(any( collec8on(of(individuals(and(businesses(that(are(brought(together(in(order(to(achieve(a( par8cular(purpose.(And(it’s(very(dynamic;(it(can(change(over(8me(depending(upon( how(the(needs(of(the(customers(are(changing.(( In"all"cases"we"see"the"strategic"element"coming"back"as"well"as"the"resources"that"are" required"from"the"other"party."Now"we"have"created"a"clearer"view"on"the"definiXon"of" alliances,"let’s"have"a"look"at"why"companies"enter"into"strategic"alliances." ! 
 Tip:(make"sure"you"have"a"common"understanding"in"your"organizaXon"what"a" partnership"or"strategic"alliance"is."CreaXng"your"own"internal"definiXon"helps"to"align" people"and"departments"while"going"forward"with"alliances. 7
    • Successful(partnerships(&(strategic(alliances( Why%would%you%partner%in%strategic%alliances?% Reasons"companies"enter"into"strategic"alliances"can"basically"be"categorized"into"three" main"groups:" • Knowledge"transfer:"companies"enter"into"alliances,"because"there"is"knowledge"or"IP" required"to"create"something"new."An"example"here"is"the"Senseo"alliance"between" Philips"and"Sara"Lee"(Douwe"Egberts)."Each"of"the"parXes"was"lacking"the"knowledge"the" other"had."Philips"is"good"in"creaXng"household"appliances"and"Sara"Lee"knows"all"about" coffee."Together"they"were"able"to"bring"a"balanced"coffeemaker"to"the"market"with" dedicated"Senseo"coffee"supplies."" • Market"development:"here" companies"enter"into"alliances" to"be"able"to"develop"new" markets,"whether"it"be" geographic"extensions"or"new" market"segments."In"1994"Pepsi" and"Starbucks"entered"into"an" alliance"to"bring"bokled"cold" coffee"drinks"to"the"market."For" both"of"them"a"complete"new"market"was"created"that"was"difficult"for"either"of"them"to" enter"without"the"knowledge"and"capabiliXes"of"the"other."" • Efficiency:"alliances"that"focus"on"cost"reducXon"and"increasing"efficiencies."Take"for" example"the"Rolls"Royce"jet"engine"division."In"2003"they"established"an"alliance"with" several"logisXcs"partners"to"increase"the"overall"value"to"Rolls"Royce’s"customers."Coming" from"a"tradiXonal"purchase"relaXonship,"this"partnership"was"transformaXve."No"longer" was"the"focus"on"selecXng"the"supplier"with"the"lowest"price,"but"on"the"customer" experience."Partners"were"also"encouraged"to"collaborate"amongst"each"other,"thus" opXmizing"the"enXre"system"rather"than"opXmizing"in"silos"as"previously"was"done."This" partnership"led"to"an"increase"to"99%"onCXme"delivery"and"a"20%"overall"cost"reducXon" without"reducing"partner"profitability.""""""" Alliances"ohen"start"in"one"of"the"groups"and"expand"into"the"other"areas"during"existence." Knowledge"transfer"may"be"the"obvious"reason"to"start"an"alliance."But"when"you"reach"the" point"the"product"needs"to"be"brought"to"the"market,"why"not"develop"that"market" together"too?"And"if"you"are"working"closely"together,"then"fineCtuning"for"efficiency"might" make"sense"as"well."" 8
    • Successful(partnerships(&(strategic(alliances( An"example"is"the"NovarXs"Malaria"iniXaXve."In"2001"NovarXs"established"an"alliance"with" the"World"Health"OrganizaXon"(WHO)"to"provide"their"Coartem"medicine"for"Malaria" without"profit"for"use"by"public"health"systems"in"developing"countries."By"2011"over"400" million"Coartem"treatments"had"been"delivered"in"more"than"60"malariaCendemic" countries,"helping"to"save"an"esXmated"1"million"lives,"mostly"infants"and"children."On"one" hand,"this"alliance"might"be"seen"as"a"market"development"alliance"as"it"gives"NovarXs" access"to"developing"countries"and"helps"build"their"brand"there."But"on"the"other"hand,"it" can"be"seen"as"a"knowledge"transfer"alliance"as"it"gives"NovarXs"access"to"a"huge"learning" ground"allowing"improving"the"medicine"based"on"the"feedback"received."From"a"third" angle,"it"can"be"seen"as"an"efficiency"alliance,"as"providing"without"profit"is"certainly"not"a" philanthropic"effort."The"huge"amount"of"treatments"delivered,"provides"NovarXs" economies"of"scale"that"would"not"have"been"easily"reached"otherwise."These"economies" of"scale"will"amongst"others"have"their"impact"on"NovarXs"buying"power"from"their" suppliers"and"may"result"in"lower"purchase"prices"for"supplies"that"might"benefit"other" products"too."" The"examples"used"here"may"be"examples"from"large"corporaXons,"they"illustrate"many" answers"to"growth"quesXons"and"they"are"equally"applicable"to"smaller"organizaXons."As" long"as"you"keep"a"focus"on"your"core"capabiliXes"and"ensure"you"contribute"and"benefit," then"alliances"can"be"an"excellent"way"to"grow"any"organizaXon." ! 
 Tip:"know"your"iniXal"reason"for"entering"into"a"partnership"and"focus"on"that"iniXal" reason"during"the"formaXon"of"the"partnership."Once"formed"and"operaXonal"growing"a" partnership"into"other"areas"is"generally"easier"than"iniXally"creaXng"a"big"partnership." 9
    • Successful(partnerships(&(strategic(alliances( A%small%business%example% Many"of"the"examples"of"strategic"alliances"that"are"widely"available"are"the"examples"from" large"organizaXons."When"you"start"searching"for"alliances"in"Pharma"or"in"IT"you"will"be" able"to"find"many"large"examples."Small"business"examples"are"more"difficult"to"find,"ohen" probably"because"small"businesses"do"not"have"the"budgets"to"create"PR"around"their" alliances"like"the"large"companies"do."So"let’s"have"a"look"at"a"small"business"example:"" When"I"started"as"a"solo"entrepreneur"I"set"up"Simoons"&"Company"in"the"format"of"what"I" cal"a"network"organizaXon."The"company"basically"exists"of"an"assistant"and"myself." However,"some"projects"require"larger"capacity"or"different"experXse."For"that"I"work"in" partnership"with"some"trusted"partners"that"I"can"hire"as"partners"in"a"project."With"a"few" the"level"of"collaboraXon"goes"a"bit"deeper"and"we"do"our"own"sparring"on"proposals"and" joint"business"development."There"is"one"partnership"that"I"would"like"to"highlight"here" that"goes"deeper"and"can"be"seen"as"a"small"business"strategic"alliance."" Back"in"2010"when"I"was"planning"to"bring"alliance"management"workshops"to"the" European"market,"I"made"the"strategic"choice"to"iniXally"partner"rather"than"to"start" develop"the"workshops"myself."Later"in"this"book"we"will"see"that"making"this"decision"is" the"first"phase"of"the"strategic"alliance"lifecycle."I"did"my"research"on"potenXal"partners"and" established"a"partnership"with"Phoenix"ConsulXng"Group"in"California"to"be"able"to"deliver" the"alliance"management"workshops"they"already"developed"in"the"European"market."The" value"proposiXon"entailed"that"Phoenix"gained"access"to"the"European"market"without"the" need"to"build"it"by"themselves."I"gained"access"to"an"excellent"set"of"workshops"for"alliance" management"cerXficaXon."Customers"in"Europe"gained"easier"access"to"alliance" management"workshops"without"the"need"for"extensive"travel,"that"would"prepare"them" for"the"professional"cerXficaXon"in"alliance"management."" We"discussed"how"we"wanted"to"approach"our"alliance,"negoXated"a"contract"and"started" to"work."As"we"both"are"small"businesses"the"steps"were"on"the"lighter"side"than"they"will" be"with"large"corporaXons"and"large"alliances."However,"we"did"follow"the"alliance"lifecycle" and"made"sure"we"made"solid"decisions."What"started"as"a"knowledge"transfer"and"market" development"alliance"is"now"strengthened"into"a"closer"collaboraXve"relaXonship,"where" we"jointly"have"done"the"delivery"of"workshops"and"have"jointly"developed"new" educaXonal"products.""" ! 10
    • Successful(partnerships(&(strategic(alliances( The%alliance%spectrum% We"already"noXced"that"the"term"strategic"alliance"has"a"different"meaning"to"different" people."In"a"round"table"of"alliance"people"we"started"of"with"the"quesXon"“What"do" alliances"mean"for"your"company?”."The"akendees"had"different"viewpoints."Ranging"from" markeXng"alliances"to"market"alliances"to"development"alliances"and"including"for"one" akendee"an"alliance"consorXum."In"all"cases"the"alliances"were"shaped"to"be"stronger" together"than"one"of"the"companies"could"be"alone."This"did"not"necessarily"mean"that"the" parXcipaXng"companies"in"the"round"table"could"not"have"done"it"alone,"however,"teaming" up"with"others"to"fulfill"the"goal"of"the"alliance"made"the"effort"more"effecXve." The"alliance"spectrum"can"be"visualized"by"the"degree"of"collaboraXon"on"the"leh"axis"and" the"degree"of"complexity"on"the"horizontal"axis."On"the"lower"leh"hand"side"we"see" transacXonal"relaXonships"and"on"the"upper"right"hand"side"we"see"merger"&"acquisiXons." In"between"is"the"area"ohen"covered"by"the"term"‘alliance’."" Within"this"alliance"spectrum"we"see"several"forms"of"partnering,"divided"by"the"degree"of" collaboraXon"and"complexity."" Outsourcing"on"the"lehCmost"side"of"the"spectrum"can"be"seen"as"examples"of"an"efficiency" alliance;"your"partner"is"beker"equipped"to"do"the"task"for"you,"for"a"beker"price"and"with" beker"service."The"relaXonship"is"strategic,"but"it"is"not"a"pure"alliance"where"both"parXes" are"contribuXng."In"general"it"is"outsourcing"of"a"task"and"the"degree"of"collaboraXon"is" low."" In"a"channel"relaXon"the"alliance"is"created"to"bring"your"products"to"the"market"via"a" resale"partner."As"such"it"is"an"example"of"a"market"development"alliance."Depending"on" 11
    • Successful(partnerships(&(strategic(alliances( the"type"of"product,"the"degree"of"collaboraXon"and"integraXon"can"be"higher."A"classical" example"is"the"European"car"dealerships."A"dealer"will"in"general"only"represent"one"brand" and"is"as"such"quite"depended."When"ordering"a"car"for"a"customer,"that"car"is"ohen" customized"with"addCons"for"that"specific"customer"who"requires"collaboraXon"and" integraXon"with"the"car"manufacturer"in"order"to"deliver"the"right"product"to"the"customer." Also"the"Value"Added"Resellers"(VAR)"in"IT"are"good"examples"of"channel"relaXonships."" VARs"are"expected"to"bring"consulXng,"integraXon"and"implementaXon"services"around" vendors"products,"simplifying"the"customers"purchase"of"complex"technical"soluXons."" In"a"licensing"relaXonship,"your"brand"will"be"licensed"out"to"another"party."That" organizaXon"will"add"value"to"the"brand"and"bring"it"to"the"market"under"your"brand." Reckik"Benckiser"licensed"their"Air"Wick"brand"to"Winplus,"a"developer"of"automoXve" accessory"products,"to"develop"a"range"of"car"air"fresheners"for"the"North"American" market."It"is"a"market"development"alliance,"allowing"the"Air"Wick"brand"to"enter"the"new" market"of"car"air"fresheners"with"the"specific"knowledge"of"Winplus."" In"OEM"relaXonships"your"company"is"basically"the"opposite"side"of"licensing;"another" company"will"manufacture"products"that"you"will"use"as"(part"of)"your"own"product,"with" your"own"brand."The"original"brand"will"typically"not"be"menXoned"in"the"end"product," “Intel"inside”"being"the"excepXon."Given"the"importance"of"the"licensing"or"OEM"relaXon" for"your"brand,"integraXon"and"collaboraXon"will"be"on"a"higher"level"than"with"pure" transacXonal"supplier"relaXonships."" Strategic"alliances"are"based"on"a"mutual"agreement"to"collaborate."The"Senseo" coffeemaker"is"a"good"example"of"a"strategic"alliance;"both"Philips"and"Sara"Lee"have"their" own"responsibility"for"developments"of"their"elements"in"the"joint"offering."There"is"no" exchange"of"equity"between"the"two"companies,"but"the"level"of"collaboraXon"is"high"and" needs"to"be"high"in"order"to"keep"both"organizaXons"aligned"on"the"same"path"of"product" development."" In"a"virtual"joint"venture"the"organizaXons"work"even"closer"together"while"sXll"remaining" independent"companies."The"KLM"–"Air"France"–"Delta"alliance"is"an"example"of"a"virtual" joint"venture."All"three"parXes"bring"in"aircrahs,"personnel"and"support"operaXons"with"a" Xght"integraXon"in"operaXons."Ownership"of"the"assets"remains"with"the"partner" companies"and"revenues"are"split"between"the"companies."" Joint"ventures"are"two"or"more"separate"independent"companies"working"together"and" holding"the"shares."In"general"the"joining"of"forces"is"with"the"focus"on"making"the"whole" larger"than"the"sum"of"the"two"parts."In"some"cases"joint"ventures"are"also"more"from"a" 12
    • Successful(partnerships(&(strategic(alliances( defensive"nature"and"formed"to"divest"in"products"or"product"lines."Examples"of"joint" ventures"are"Emgo,"a"longCstanding"joint"venture"since"1966"between"Osram"and"Philips."It" was"originally"established"to"produce"incandescent"lamps"and"now"has"its"focus"on"the" creaXon"of"innovaXve"products"in"lighXng."Another"example"is"SonyCEricsson,"between" 2001"and"2012"a"joint"venture"of"Sony"and"Ericsson"with"the"aim"to"produce"mobile" phones.""" 
 Tip:"be"clear"with"your"prospecXve"partner"on"the"terms"you"use."If"he"talks"about"a" joint"venture"does"he"really"mean"sharing"stock,"or"are"those"the"words"he"uses"to" describe"what"you"would"call"a"partnership? 13
    • Successful(partnerships(&(strategic(alliances( Why%many%alliances%fail%E%the%80%%rule% The"research"on"alliance"failure"rates"show"a"wide"range"of"figures."Ranging"on"the"best" side"of"only"a"20%"failure"rate"to"the"worst"side"of"a"80%"failure"rate."It"is"this"high"failure" rate"of"80%"that"has"some"unbelief"to"it."Would"companies"seriously"invest"in"something" they"know"will"have"a"4"out"of"5"chance"of"failure?"In"2011"at"the"ASAP"Pharma"Council"in" Basel,"Marc"de"Garidel,"Chairman"and"CEO"of"Ipsen,"indicated"in"his"keynote"that"alliances" are"important"for"Ipsen."Over"40%"of"the"Ipsen"revenue"is"based"on"the"alliances"Ipsen"has" established."It"would"be"an"impossible"task"for"Ipsen"to"manage"that,"if"the"failure"rate"was" indeed"80%."" The"2012"ASAP"State"of"Alliance"Management"study"dives"into"the"topic"of"alliance" performance."The"study"is"the"fourth"in"line"were"earlier"studies"were"held"in"2002,"2007" and"2009."The"latest"report"shows"an"average"alliance"success"rate"of"around"50%,"which" seems"a"preky"consistent"number"over"the"four"studies."The"companies"that"follow"a" structured"alliance"management"process"consistently"report"a"beker"success"rate"with" their"alliances"than"the"average"C"up"to"80%"success."The"companies"that"approach" alliances"in"an"ad"hoc"fashion"report"only"a"success"rate"of"20%."That"is"the"80%"rule:"80%" of"ad"hoc"unstructured"business"partnerships"and"strategic"alliances"fail,"while"on"the"other" hand"80%"of"the"companies"that"follow"a"structured"approach"create"successful"business" partnerships"and"strategic"alliances.""" Earlier"research"indicates"that"alliances"fail"for"a"variety"of"reasons:" • Differences"in"culture" • IncompaXble"objecXves" • Lack"of"execuXve"commitment" • IneffecXve"governance"structure" • Poor"alliance"leadership" • OveresXmated"market"potenXal" Proper"preparaXon,"alliance"management"&"communicaXon"can"prevent"most"of"these" reasons."The"ASAP"report"hints"to"the"fact"that"ASAP"members"have"a"beker"success"rate" than"nonCmembers"do."Also"it"shows"in"the"report"that"companies"new"to"alliances,"and" hence"less"experienced,"potenXally"have"a"higher"failure"rate"than"organizaXons"with"an" established,"experienced"alliance"management"capability." However,"think"for"a"moment"about"the"quesXon"“when"is"an"alliance"a"failure?”"" 14
    • Successful(partnerships(&(strategic(alliances( In"1991"Pixar"established"an"alliance"with"Walt"Disney"CorporaXon."The"alliance’s"value" proposiXon"was"a"true"tripleCwin:"both"partners"and"the"customer"enjoyed"the"benefits"of" the"alliance."Pixar"stayed"in"business,"Walt"Disney"had"access"to"the"incredible"creaXve" talents"of"Pixar"to"deliver"a"new"animated"film"segment"to"the"market"and"the"customer" enjoyed"the"new"products"that"were"the"result"of"the"partnership."Five"animated"films" were"made"in"the"partnership,"including"Toy"Story,"Monsters"Inc,"and"Finding"Nemo."These" films"have"earned"more"than"USD"3"billion"altogether"and"accounted"for"more"than"25"per" cent"of"Disney's"profits."From"this"perspecXve"a"highly"successful"alliance."" SXll"early"2004"Steve"Jobs,"the"CEO"of"Pixar,"canceled"the"alliance."It"appears"that"Steve" Jobs"walked"away"from"negoXaXons"for"an"extension"of"the"alliance"because"he"had" enough"of"the"way"Disney’s"CEO"Michael"Eisner"did"business."It"is"interesXng"to"read"the" reasons"for"the"breakdown"in"negoXaXons."They"are"among"the"first"three"bullet"points"of" reasons"for"failing"alliances:"difference"in"cultures,"lack"of"execuXve"commitment"and" incompaXble"objecXves."The"end"of"the"DisneyCPixar"story"is"that"in"2006"Disney"acquired" Pixar"for"USD"7,4"billion"and"with"that"safeguarding"access"to"the"creaXve"talent"of"Pixar."" So"when"is"an"alliance"a"failure?" Does"breaking"off"the"negoXaXons"for"an"alliance"extension"make"the"alliance"a"failure?" Maybe"the"people"who"were"at"that"Xme"in"the"middle"of"it"felt"that"the"alliance"indeed" was"a"failure."Does"an"acquisiXon"make"an"alliance"a"success"or"did"the"revenue"generated" as"a"result"of"the"products"created"together"make"the"alliance"a"success?"An"early"optCout" can"be"successful,"but"does"that"make"the"alliance"a"failure?" Alliance"success"is"not"easily"defined;"the"DisneyCPixar"alliance"may"be"viewed"as"a"success" with"temporarily"downsides"in"the"relaXonship." 
 Tip:"ensure"to"be"on"the"success"side"of"the"80%"rule"by"good"preparaXon"and" management"of"your"partnership"following"a"structured"approach. 15
    • Successful(partnerships(&(strategic(alliances( The%alliance%lifecycle%to%enhance%alliance%success% We"have"read"what"alliances"are,"why"to"partner,"what’s"in"the"alliance"spectrum"and"we" have"read"that"alliances"can"fail."Especially"aher"the"last"chapter"the"quesXon"may"rise"on" how"to"partner"with"the"best"chances"for"success."Following"a"structured"approach"will" help"increase"alliance"success."" The"alliance"lifecycle"is"a"process,"or"structured"approach,"for"alliances."It"can"be"seen"as" the"roadmap"that"your"organizaXon"can"follow"to"create"successful"alliances."Most"alliance" life"cycles"are"similar."But"ohen"they"are"not"the"same,"since"they"are"adjusted"to"the" organizaXon"that’s"using"the"lifecycle." In"their"recently"published"“Handbook"of"Alliance"Management”"the"AssociaXon"of" Strategic"Alliance"Professionals"(ASAP)"describes"a"seven"step"alliance"lifecycle"framework." This"framework"is"the"result"of"the"combined"best"pracXces"for"alliance"success"from"the" members"of"the"associaXon."The"framework"idenXfies"the"following"seven"steps"for"alliance" success:" 1)"Set"the"alliance"specific"strategy"" 2) Partner"analysis"&"selecXon" 3) Building"trust"&"value"creaXng" negoXaXon" 4) OperaXonal"planning" 5) Alliance"structuring"&"governance" 6) Launching"&"management" 7) Transform,"Innovate"or"Exit" ! Companies"use"their"own"model"that"fits"the"company’s"way"of"working.""A"large" electronics"company"in"Europe"uses"for"instance"a"slightly"different"6Cstep"model"where" steps"4"and"5"are"combined"into"one"step."Also"Cisco’s"model,"as"described"in"Steven" Steinhilber’s"book"“Strategic"Alliances:"Three"Ways"to"Make"Them"Work”,"is"a"6Cstep" lifecycle,"but"again"slightly"different." These"large"companies"have"the"bandwidth"to"create"a"separate"alliance"management" department"and"to"assign"separate"alliance"managers"to"manage"their"alliances."They"will" also"have"the"need"for"an"extensive"framework"process"to"ensure"all"stakeholders"in"the" organizaXon"are"involved."The"size"and"structure"of"the"company"demands"a"solid"process." A"smaller"company"may"not"be"able"to"apply"a"process"in"such"an"extensive"way"and" 16
    • Successful(partnerships(&(strategic(alliances( probably"also"does"not"have"the"need"to"apply"an"extensive"process."However,"the"trap"for" smaller"companies"is"that"they"will"jump"in"too"opportunisXcally"and"create"ad"hoc" partnerships."As"we"have"read"before,"these"ad"hoc"partnerships"are"the"ones"that"are"on" the"wrong"side"of"the"80%"rule."Hence,"also"smaller"companies"beker"follow"a"framework" process"to"ensure"success."" An"alliance"lifecycle"framework"can"best"be"viewed"as"a"toolbox"where"every"step"in"the" lifecycle"will"have"its"subCsteps"supported"by"tools"based"on"best"pracXces."Smaller" companies"with"a"demand"for"a"more"lightweight"and"agile"framework"can"as"such"use"the" same"framework"as"the"large"organizaXons"do,"however"apply"a"different"selecXon"of"tools" beker"suited"to"their"situaXon."" For"instance,"in"the"first"phase,%Alliance"Specific"Strategy,"you"will"set"the"business"context," align"with"strategies,"think"about"the"value"proposiXon,"and"make"the"fundamental" decision"of"whether"you"should"do"it"yourself,"acquire"another"company,"or"establish"a" strategic"alliance"for"the"opportunity"you"have"in"mind."The"opXon"to"acquire"another" company"may"not"be"available"at"all"for"a"smaller"company."Perhaps"here"the"only"choice"is" to"partner,"or"not"pursue"the"opportunity"at"all."As"such"the"decision"tree"will"be"shorter"for" a"smaller"than"for"a"larger"company."SXll"you"need"to"look"at"the"Strategic(Ra8onale"as"the" first"phase"defines"the"why"of"an"alliance,"the"strategic"context"and"the"reason"for"being"in" a"partnership."This"is"a"fundamental"step"in"the"framework"that"may"determine"the"success" of"your"alliance."When"alliances"are"created"for"the"wrong"reason,"it"is"much"harder"to"keep" them"healthy"and"successful." The"Analysis"and"SelecXon"phase"is"about"Partner(Selec8on."For"a"larger"organizaXon"this" may"include"a"process"of"creaXng"a"longlist"that"filters"down"to"a"shortlist"of"potenXal" partners."Smaller"organizaXons"will"ohen"only"have"a"shortlist"or"maybe"even"a"single" partner"to"deal"with."It"happens"ohen"that"companies"are"being"approached"by"a"partner" with"a"business"idea."In"these"cases"it"sXll"makes"sense"to"go"back"to"phase"one"and" determine"if"the"opportunity"fits"with"your"strategy."Partner"selecXon"also"needs"to"be" applied,"maybe"not"in"the"sense"of"finding"other"partners"to"add"to"your"list,"but"certainly" in"the"sense"of"assessing"if"this"is"indeed"the"right"partner"with"the"right"fit"for"your" challenges." The"next"three"phases"in"the"alliance"lifecycle"are"all"about"organizing(an(alliance."They"will" be"disXnct"phases"for"large"companies"but"might"blend"together"in"one"phase"for"smaller" organizaXons."Building"trust"and"value"creaXng"negoXaXon"is"about"the"formaXon"of"the" alliance."You"will"work"to"build"trust"with"your"partner"and"formate"an"alliance"where"the" values"of"both"partners"are"respected"and"each"strategic"vision"is"represented."This"phase" ohen"results"in"a"“leker"of"intend”"or"a"“memorandum"of"understanding”"and"is"the"result" of"a"high"level"negoXaXon"before"the"actual"contract"is"created."In"the"OperaXonal"planning" phase"the"two"partners"will"jointly"create"an"operaXonal"plan"that"will"lead"the"day"to"day" 17
    • Successful(partnerships(&(strategic(alliances( operaXon"of"the"alliance."The"Alliance"Structuring"and"Governance"phase"has"its"focus"on" creaXng"the"governance"structure"and"the"organizaXonal"and"legal"frameworks."This"phase" will"normally"be"concluded"with"a"contract"that"is"based"upon"the"work"done"in"the" previous"phases."" Where"the"previous"phases"may"have"taken"weeks"to"months"to"complete,"the"next"phase" in"the"lifecycle"is"the"Launching"and"Managing"phase"and"may"take"several"years"for" successful"strategic"alliances."This"is"all"about"alliance(opera8on,"the"just"established" business"partnership"is"in"execuXon."The"next"phase"Transform,"Innovate"or"Exit"gracefully" is"in"the"ASAP"alliance"lifecycle"displayed"as"a"disXnct"phase."It"is"however"ohen"quite" difficult"to"express"the"moment"you"are"moving"with"your"alliance"from"an"operaXonal" phase"to"an"transiXon"phase."The"tasks"defined"in"the"final"stage"should"be"part"of"the" ongoing"alliance"management"of"an"alliance."The"measurement"of"progress"and"the"check" on"conXnued"alignment"with"the"partners"strategic"intent,"it"all"needs"to"be"done"on"an" ongoing"basis"while"the"alliance"is"in"operaXon."Only"then"an"alliance"can"be"transformed" on"Xme"into"a"healthy"new"form"or"shape"or"can"be"exited"gracefully."""""" TransiXon"of"an"alliance"is"not"necessarily"terminaXon."Alliances"can"redefine"themselves"or" transform"with"new"strategic"intent."Sooner"or"later"every"alliance"will"reach"a"transiXon" point."The"alliance"may"have"served"its"purpose."CondiXons"may"change"for"a"partner," markets"may"chance."With"any"of"these"situaXons"an"alliance"reaches"a"transiXon"point." TransiXon"in"this"case"is"ohen"more"than"just"a"terminaXon."Aher"transiXon"an"alliance"can" conXnue"in"an"adjusted"format." In"the"Senseo"alliance"Philips"and"Sara"Lee"appear"to"have"reached"a"transiXon"point"when" the"Sara"Lee"organizaXon"decided"to"split"the"organizaXon"in"two"separate"publicly"traded" companies"by"early"2012."One"of"the"companies"would"be"concentrated"on"the"foodservice" business"of"Sara"Lee"while"the"other"would"focus"on"becoming"a"coffee"and"tea"company" with"brands"such"as"Senseo,"Douwe"Egberts"and"Pickwick."With"this"change"in"the"business" for"Sara"Lee,"the"Senseo"alliance"with"Philips"became"of"a"different"importance"for"the" coffee"business"of"Sara"Lee."It"was"no"longer"one"of"many"brands,"but"within"the"narrowed" company"focus"it"became"one"of"the"few"major"brands." On"Jan"26,"2012"Philips"and"Sara"Lee"announced"to"have"renegoXated"the"Senseo"alliance" and"signed"a"new"contract"that"will"run"through"2020."In"the"new"contract"Philips"will" transfer"its"50%"ownership"in"the"Senseo"brand"to"Sara"Lee."In"the"press"coverage"around" the"announcement"Sara"Lee"ExecuXve"Chairman"Jan"Bennink"was"quoted"that"the"future"of" the"coffee"business"would"be"concentrated"on"a"strategy"focussing"on"the"Senseo"coffeeC pad"machine."This"alliance"appears"to"have"reached"a"transiXon"point."" We"may"assume"that"during"the"renegoXaXon"and"transiXon"of"the"Senseo"alliance,"the" partnership"conXnued"based"on"the"earlier"agreements."Both"the"coffee"machines"and" 18
    • Successful(partnerships(&(strategic(alliances( coffee"conXnued"to"be"available"in"store"within"the"old"context."The"customer"only"noXced" the"new"alliance"aher"the"announcement"had"been"made."The"alliance"management"phase" conXnues"while"the"transiXon"is"in"operaXon." Even"though"the"alliance"lifecycle"is"pictured"as"a"sequenXal"process,"it"will"not"always"be" operated"this"way."When"your"alliance"reaches"a"transiXon"point"where"you"feel"that"there" is"sXll"future"for"the"alliance,"but"not"under"the"current"condiXons,"you"may"move"from"an" operaXonal"phase"to"a"formaXon"phase"to"negoXate"and"set"a"new"agreement."In"general" however,"it"is"good"to"follow"the"steps"in"order."If"you"do"not,"you"will"find"that"eventually" you"will"have"to"go"back"to"the"earlier"steps"that"you"have"skipped."For"example,"it"ohen" happens"that"other"companies"with"a"partnering"proposal"approach"your"company,"or"you" meet"someone"at"a"networking"event"and"feel"that"your"two"companies"should"partner."In" fact,"you"are"already"in"partner"selecXon,"while"the"crucial"decision"points"of"the"strategic" raXonale"have"not"been"evaluated."" If"you"in"such"a"situaXon"omit"evaluaXng"the"decision"points"from"the"earlier"steps,"you" may"end"up"with"an"alliance"that"looks"promising"at"the"moment"of"signing"the"contract," but"may"fail"during"execuXon"for"reasons"that"could"have"been"prevented."" The"alliance"lifecycleCbased"process"is"an"umbrella"for"creaXng"alliances."Every"alliance"is" different,"every"partner"will"be"different,"and"every"value"proposiXon"will"be"different."It"is" imperaXve"to"look"for"yourself"at"the"steps"in"the"alliance"lifecycle"and"apply"them" pragmaXcally."If"you"are"establishing"a"new"alliance"with"a"partner"where"you"already"have" an"exisXng"partnership"in"place,"it"may"be"redundant"to"check"if"the"partner"company"fits" with"your"company."It"sXll"makes"sense"though"to"evaluate"if"the"partner"company"is"the" best"partner"for"the"new"opportunity." 
 Tip:"an"alliance"lifecycle"framework"can"be"an"overwhelming"process."Approach"it" pragmaXcally"in"a"step"by"step"fashion"using"those"tools"and"steps"you"need"and"it"will" be"a"usable"design"tool"box"for"success." 19
    • Successful(partnerships(&(strategic(alliances( Conclusion% By"now"you"will"understand"the"reason"why"it"is"criXcal"to"prepare"well"for"a"business" partnership"or"strategic"alliance."Remember"the"80%"rule:"80%"of"ad"hoc"unstructured" business"partnerships"and"strategic"alliances"fail,"while"on"the"other"hand"80%"of"the" companies"that"follow"a"structured"approach"create"successful"business"partnerships"and" strategic"alliances."Needless"to"say;"you"want"to"strive"to"be"on"the"success"side"of"the"80%" rule."The"use"of"an"alliance"lifecycle"framework"will"help"to"accomplish"that." This"book"provided"you"an"introducXon"into"alliances."Partnerships"and"alliances"are"the" way"to"grow"and"develop"your"organizaXon"into"the"future."You"have"seen"that"alliances" can"lead"to"great"results"and"have"a"greater"chance"to"succeed"when"prepared"well."The" alliance"lifecycle"framework"can"be"extensive"and"overwhelming,"but"can"also"be"applied" very"pragmaXcally."In"the"appendix"you"will"find"two"tools"that"can"be"used"as"a"starter." These"tools"will"help"you"to"be"more"clear"and"to"the"point"in"the"iniXal"phases"of"creaXng" your"partnership."" More"tools"and"updates"can"be"found"at"my"website:"hkp://simoons.com" For"a"more"inCdepth"educaXon"and"guidance"I"invite"you"to"open"the"conversaXon"with"me." I"help"people"to"create"and"maintain"successful"business"partnerships"and"strategic" alliances."My"programs"are"available"online,"in"a"workshop"format"and"for"one"on"one" coaching."Wherever"you"are"in"your"journey"of"exploring"business"partnerships"and" strategic"alliances,"it"is"likely"that"can"help"you."" When"you"sign"up"for"my"weekly"newsleker "you"will"stay"informed"about"strategic"2 alliances"and"business"partnerships"and"will"be"among"the"first"to"know"when"new"books" and"educaXon"modules"appear." Please"do"share"your"feedback"on"this"book,"I"look"forward"to"hear"from"you." Peter"J."Simoons,"CSAP" ! 20 "hkp://simoons.com/newsleker2
    • Successful(partnerships(&(strategic(alliances( Appendix%1:%The%contribu<ons%matrix% To"provide"a"likle"structure"to"your"iniXal"meeXng"with"a"prospecXve"partner,"a" contribuXons,"needs"and"benefits"matrix"can"be"a"very"helpful"tool."This"matrix"is"basically" a"3"x"3"matrix"as"the"example"below."In"the"matrix"you"simply"list"the"contribuXons"for"your" partner"and"for"you,"you"list"the"needs"for"your"partner,"yourself"and"the"customer"and"you" list"the"benefits"for"all"three"parXes." This"matrix"will"create"an"overview"of"how"the"partnership"is"balanced"and"will"help"answer" the"quesXon"everyone"will"at"first"be"looking"for:"“What’s"in"it"for"me?”"" The"best"way"to"use"the"matrix"is"to"come"prepared"to"the"meeXng"by"doing"your" homework."Fill"in"the"matrix"before"the"meeXng"with"your"view"of"the"partnership,"then" discuss"it"with"your"partner"and"adjust"where"possible."It"will"help"to"create"clarity"quickly" and"it"will"help"to"build"trust"with"your"partner."" ! ! Partner You Customer Contribu<ons Needs Benefits 21
    • Successful(partnerships(&(strategic(alliances( Appendix%2:%Func<onal%rela<onship%mapping% At"the"end"of"my"alliance"management"workshops"one"of"the"quesXons"in"the"evaluaXon" form"is"for"the"akendees"to"name"the"one"thing"that"they"have"learned"that"will"have"most" posiXve"impact"on"the"partnerships"they"manage."The"elements"that"are"named"the"most" in"all"evaluaXons"can"be"summarized"as"elements"that"bring"structure"to"relaXonships."" RelaXonships"are"ohen"taken"for"granted,"we"expect"relaXonships"to"run"by"themselves" without"really"a"need"for"management."But"successful"relaXonships"are"hard"work," regardless"of"the"type"of"relaXonships."SupplierCcustomer,"strategic"alliance"relaXonships," even"personal"relaXonships,"they"all"demand"a"lot"of"akenXon,"communicaXon"and"work" to"stay"healthy."" There"are"many"tools"to"support"you"in"managing"your"strategic"relaXonships"and"some"of" them"are"highlighted"in"the"workshop."One"of"the"first"highlighted"in"the"workshop"and"one" that"always"leads"to"a"group"discussion"is"the"funcXonal"mapping"or"peer"to"peer"mapping" tool."In"the"basics"a"very"simple"tool,"but"the"simplicity"of"the"tool"once"again"is"a"proof" point"that"“less"is"more”."" The"idea"behind"the"funcXonal"mapping"tool"is"that"you"use"it"to"map"out"the"funcXonal" relaXonships"between"your"organizaXon"and"your"partners"organizaXon."FuncXonal" mapping"is"based"on"the"fact"that"organizaXons"are"different"and"hence"your"peer"may"be" on"a"different"organizaXonal"level"than"at"first"would"be"expected."The"obvious"example"to" explain"this"is"the"example"of"a"partnership"between"a"large"mulXnaXonal"and"a"small"local" firm."The"funcXonal"peer"of"the"CEO"of"the"local"firm"may"very"well"be"the"General" Manager"of"a"business"unit"in"the"mulXnaXonal"rather"than"the"CEO"of"the"mulXnaXonal." The"funcXonal"mapping"tool"will"help"you"to"define"day"to"day"interacXons"and"also"map" escalaXon"paths"where"peers"meet"peers"to"resolve"issues"or"guide"strategy"for"the" alliance."" It"is"highly"recommended"to"do"the"mapping"in"the"preparaXon"phase,"actually"even"before" the"alliance"starts."You"don’t"want"to"find"out"who"the"right"peer"is"in"the"middle"of"an"crisis" that"requires"escalaXon!" The"model"used"can"be"quite"simple,"like"in"the"table."You"map"your"people"to"your" partners"people."Describing"funcXonal"role,"names,"Xtles"and"responsibiliXes"in"the" relaXonship."The"third"column"in"the"table"ohen"is"the"most"interesXng"one."When"using" the"status"column"in"a"simple"color"code"in"red,"yellow"and"green"you"will"be"able"to" provide"a"status"traffic"light"to"the"relaXon."Red"for"instance"can"mean"that"the"two"people" are"idenXfied"but"have"never"met."" 22
    • Successful(partnerships(&(strategic(alliances( InteresXng"element"in"the"use"of"this"mapping"and"color"coding"is"that"when"you"discuss" the"mapping"in"your"own"organizaXon"and"an"execuXve"sees"a"red"mark"behind"his"name" you"will"immediately"have"his"akenXon:"in"general"nobody"likes"a"red"mark"behind"their" name"and"will"have"the"desire"to"do"something"about"it!" Yellow"in"the"model"can"mean"that"they"are"aware"of"each"other,"perhaps"met"a"few"Xmes," but"no"working"relaXonship,"green"is"good"and"will"mean"that"there"is"a"strong"working" relaXonship"and"high"level"of"trust." It"appears"that"many"organizaXons"do"not"use"this"basic"yet"powerful"tool,"hence"the" someXmes"surprising"discussions"in"the"workshops."You"can"find"the"model"worked"out"on" the"next"page"in"a"larger"template,"ready"for"you"to"start"using"in"your"relaXonships." ! 23
    • Successful(partnerships(&(strategic(alliances( ! Func<onal%Rela<onship%Mapping Partnership:".................... Date:"".................... " Your%company%% Your%partner Status Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " Name % Titel " FuncXonal"Role " ResponsibiliXes " 24
    • Successful(partnerships(&(strategic(alliances( About%Peter% About"15"years"ago"I"learned"the"hard"way"how"partnerships"and" alliances"should"not"be"created:"the"joint"venture"I"was"building" went"sour."It"bothered"me,"as"I"was"sXll"convinced"that"creaXng"and" growing"a"business"is"much"more"effecXve"in"a"partnership"than"it" is"by"doing"it"on"your"own."From"that"moment"on"I"began"to" specialize"in"the"area"of"business"partnerships"and"strategic" alliances,"building"upon"years"of"business"development"experience."" ! Before"starXng"Simoons"&"Company,"I"built"my"pracXcal"experience"in"business" development"and"partnerships"roles."In"the"last"assignment"I"was"the"Alliance"ExecuXve," responsible"for"the"overall"alliance"between"IBM"and"Royal"Philips."I"support"the" development"of"the"alliance"management"profession"by"contribuXng"to"the"AssociaXon"of" Strategic"Alliance"Professionals"(ASAP);"I"was"president"of"the"Benelux"chapter"of"ASAP"and" I"am"an"CerXfied"Strategic"Alliance"Professional"(CSAP)." ! Nowadays"I"am"a"business"coach"specialized"in"partnerships"and"alliances"and"I"use"this" experXse"and"knowledge"to"help"professionals"and"business"people"to"create"and"maintain" successful"business"partnerships"and"strategic"alliances"and"grow"their"businesses."Seeing" my"clients"become"successful"based"on"the"work"we"have"done"together"is"one"of"the" greatest"rewards"of"my"work."" ! My"customers"are"from"organizaXons"from"all"sizes"and"background,"from"large" mulXnaXonals"to"small"startups"and"from"local"governments"to"forCpurpose"organizaXons."I" work"with"my"clients"one"on"one,"in"groups"and"through"online"programs." ! ! 25
    • Successful(partnerships(&(strategic(alliances( What"others"said"about"working"with"Peter" ! •I"akended"the"Strategic"Alliance"training"provided"by"Peter"as"a"preparaXon"for"the" AssociaXon"of"Strategic"Alliance"Professionals"CACAM"examinaXon."This"training"was"very" thorough,"highly"interacXve"and"provided"an"excellent"basis"for"my"later"success"in"the" examinaXon."I"would"highly"recommend"Peter"and"his"company"to"anyone"who"wants"to" further"their"professional"development"in"this"area.
 Managing(Director(FitchSolu8ons" ! •Peter"really"wants"to"understand"your"needs,"so"he"can"add"value"where"you"need"it."He" asks"the"right"quesXons"that"also"brought"me"forward"in"defining"of"what"I"really"need."
 Head(of(Innova8on(Alliances(Philips(Ligh8ng( ! •Peter"is"a"fantasXcally"knowledgeable"and"talented"Alliances"professional,"I"would"sXll"be" short"selling"Peter's"abiliXes."He"is"absolutely"superb"and"completely"and"ukerly"gets"the" area"of"Strategic"Alliances,"and"that"is"why"he"is"someone"you"absolutely"need"to"work" with"to"help"you"in"coaching"and"training"on"Alliances."
 Managing(Director(Consor8o(Consul8ng(Ltd" ! •Peter"has"a"lot"of"knowledge"about"Alliances"and"brought"an"experienced"outsideCin"view" and"knowledge"to"our"Alliance"team."When"defining"Alliances"he"brings"best"pracXces," knowledge"of"the"Alliance"process"and"is"very"cooperaXve"and"pleasant"to"work"with.""
 Sr.(Manager(Group(Strategy(and(Alliances(Philips(Interna8onal
 ! •Peter"helped"us"to"reCfocus"on"the"most"important"drivers"for"success"in"our"alliances." With"his"structured"approach"and"yearClong"experience"he"was"able"to"insXll"passion"and" clear"direcXon."We"had"a"fruinul"discussion"with"Peter"and"believe"his"support"will"help"us" to"become"even"more"successful.
 Director(Alliances(SAS(Ins8tute
 ! ! ! ! 26
    • Successful(partnerships(&(strategic(alliances( ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 27 Simoons & Company ! Voormeulenweg 73 ! 1402 TH Bussum ! The Netherlands! ! Phone:! NL:! +31 20 894 6214 ! US:! +1 617 418 3450! Skype:! psimoons! ! peter@simoons.com! www.simoons.com!