Basic Stages of Partnership

• Needs Identification: This stage encompasses determining the critical core competencies -- technologies, products, skills, markets and customers -- that your organization must acquire to meet its strategic goals.

• Partner Selection: Partner selection is the targeting and identification of appropriate organizations which have been determined to have the necessary capabilities to fill the requirements of the alliance.

• Partner Vetting: This is the deeper investigation or in-depth study of select target organizations. From this flows a determination of the ideal alliance structure for each target partner, and a risk/reward assessment of the potential for a mutually successful relationship.

• Operational Planning: This is a detailed blueprint of the joint business case for the alliance, including how the evolving alliance agreement will be executed to meet the stated Objectives within the expected time frame and costs.

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  Negotiation: This exchange of discussions is designed to resolve various business issues associated with the alliance. The successful culmination of negotiations is a legal agreement outlining the objectives of the alliance, the role of the partners, the "deliverables" to be produced by the alliance, ownership and/or other rights to property(s) produced by the alliance, issues of governance, conflict resolution, expansion, reorganization, termination, etc.

• Implementation: This is the execution of the Operational Planning phase.  Ongoing negotiations and adjustments by the alliance partners should be made as needed to bring forth the desired performance for the alliance. During implementation, ongoing Performance Monitoring of the original reasons and Objectives for the alliance are critical as there may be changes in the external competitive environment and internal workings of the allianced organizations.

• Relationship Evaluation: This is an ongoing broad alliance process assessment. How the alliance relationship is performing will quickly dictate the partners willingness to expand, continue status quo, or terminate the alliance. A balanced scorecard is a critical tool for evaluating alliance relationships.

• Termination: The winding down of an alliance is appropriate when all of the alliance objectives have been successfully achieved and the partners do not have the need to pursue additional collaborative opportunities.