Critical Success Factors

• Defined Objectives: Alliance objectives can be divided into organizational objectives (each partner organization individually) and the partnership goals (the desired end result of the partners collectively). Alliance managers must be encouraged to define objectives that will motivate themselves and others to make the alliance work. Special attention must be paid to understanding and supporting each other's motivations for entering into the alliance in order to construct the alliance as a win/win relationship. Establishing an Objectives Framework for the partnership creates a tangible, measurable "strategy map" for all parties to "align" themselves in a clear and focused endeavor.

• Appropriate Scope: By starting with a narrow scope, an alliance improves its chances for a smooth implementation. As the relationship develops, trust builds, and a successful track record is established, discussions can begin to consider broadening the alliance. Start narrow, then broaden building on success.

• Senior Management Support: All partners to an alliance must ensure one another that the commitment of senior management to the alliance is formally communicated among all partners, and reinforced on an ongoing basis. When top management views alliances as having strong strategic value, the alliances themselves tend to have higher success rates. Ensure that senior managers are accessible and involved throughout the development and implementation of the alliance.

• Alliance Champion: It is important to have an alliance relationship executive with direct access to senior management. If an alliance champion does not exist, it is critical to find and appoint one. Champions are essential whether the alliance is a major deal that has far reaching implications, or a smaller less marquee relationship. The champion ignites the alliance and keeps it burning.

• Strong Relationship Manager: The relationship manager -- the person ultimately responsible for achieving the alliance objectives -- is critical to the alliance process. The relationship manager must possess the skill set necessary to meet the alliance objectives. Many relationship managers must deal with complex business issues both domestic and international and cross many functional business areas of both companies. Therefore, recognize the relationship manager role as critical, requiring a skilled alliance professional.

• Cultural Compatibility: Alliance professionals view culture in terms of differences beyond national and ethnic attributes encompassing corporate and organizational dynamics or "culture". Features of a prospective partners organizational culture include: organizational structure, ownership, management and business style, rewards and governance structure, industry(s) served.

• High Level of Trust: Alliances stay alive because of the high levels of trust, which is unquestionably both the grease and the glue of successful cooperations. Only "strategic fit" is as important as "trust" in alliance formation. For alliances to be successful, companies must develop respect and build trust.

• Other Factors: A win/win attitude, a common philosophy, clarity and candor, commitment at all levels, good communications, due diligence, responsibility, good team work, focus on operating the alliance successfully, performance measurement.