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Review of recent alliance activity • Framework for alliance formulation • Alliance formulation (generic approach) • Implications for management |
Recent
alliance activity shows more than 20,000 new alliances between
1987
and 1992. This is a significant increase over earlier time frames.
However, not all alliances are "strategic;" in today's
world alliances fill
the middle ground between strategic sourcing and acquisitions.
The success
rate for strategic alliances is higher than that of acquisitions
and
venture capital. They key to alliances is that they match strength
to
strength and balance control with collaboration.
Booz*Allen
believes it is possible to "leapfrog" the alliance
learning
curve by adopting specific alliance best practices. Booz*Allen
has
developed an alliance formulation methodology which helps reshape
management systems and processes and translate strategic priorities
into
actions. This document provides sample best practice templates
and
identifies seven areas of best practice as most critical based
on
Booz*Allen's research and experience:
1. Conducting
realistic feasibility studies
2. Anticipating business risks and mitigating them
3. Linking budgets to resources and priorities
4. Conducting realistic partner assessment and selection
5. Adopting superior resource strategy planning
6. Coupling investment and rewards with performance
7. Defining roles clearly
Finally,
guiding principles and assessment approaches are outlined and
implications for management are provided.