Alliance Management

Typically, failure rates for organisational alliances are in the 70-80% range.  Given the resources that must be expended to create an alliance, this is unacceptable.

This high failure rate has two origins: design and implementation.  Typically, managers with little or no experience of alliancing are asked to plan and negotiate a complex business structure.  When they do not understand the complexities of intellectual property rights, the subtleties of exclusivity, the traps of termination provisions and the nuances of financial models, these managers craft deals that are fatally flawed.

Once the deal is signed, it is handed off to implementers with little experience in integrating the resources of distinctly different organisations.

To assist Newgenco build alliances with real long-term value, we follow a systematic Alliance Framework™, designed by Gene Slowinski and Matthew Sagal and published as ‘The strongest link’ 2002 by the American Management Association (Amacom).  Newgenco management has over 5 years of successful experience in utilising this framework.

The Alliance Framework provides a practical roadmap to successful alliances, both in design and implementation.  When used by both sides in an alliance negotiation, it significantly increases the quality of the outcome and decreases the time required to reach a mutually acceptable agreement.

The framework provides best-practice tools, metrics and magement techniques designed to :

  • Support cooperative decision making;
  • Ensure the coordination of resources across organisational boundaries;
  • Foster the integration of technical skills between companies;
  • Provide managers with effective conflict resolution strategies; and
  • Establish and maintain trust in the relationship.

The result – stronger, longer-lasting alliances with the internal strength and experience to survive when others might fail.