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While it’s clear that some programs have fared better than others, what is not as obvious is the all-important why. For example, why has the alliance management function in some pharma and biotech firms been able to expand its influence, while others have seemed to spin their wheels? Why are some alliance management groups constantly defending their existence, while others are being invited to increase their input? We believe the answers to these questions can be found in a combination of theory and experience, influenced strongly by common sense and good business practices. In essence, we believe that success in today’s challenging environment relies heavily on the ability to proactively mitigate and manage the business risk, human risk, and legal uncertainties that surface in an alliance. Our experience has shown this is most achievable when alliance management reduces the likelihood of future, escalated conflict by actively anticipating and solving tough problems, including key business issues that would otherwise fall through the cracks or those that require an objective
Now is the perfect time to determine how to influence your own role and to decide how to increase the value alliance management brings to your entire organization. party to facilitate discussion. And when alliance managers further the alliance’s vision through hard work, consistently good judgment, and positive use of influence, they create a virtuous cycle of trust, loyalty, and commitment that adds measurable value and greatly increases the partnership’s probability of success. We will take you through a brief overview of alliance management’s various forms and then focus on the strategies, approaches, and tools that have enabled Lilly’s Integrated Alliance Management group to play an increasingly important role in implementing strategic partnerships. We hope that by offering you a different perspective on the purpose and potential of our profession, you will be able to apply these concepts to your own practice—including the who, how, and what it will take for you and your group to reach the next level in alliance management.
The Alliance Management Continuum
The term alliance management means different things to different people. The practice is just now being introduced • in many firms around the world, and the profession itself is • still in its infancy. Since 1999, when Lilly was the first to es• tablish an office specifically responsible for alliance manage• • ment, we at Lilly have seen growth and evolution in our role • that not surprisingly corresponds to the increase in number, • • scope, and value of our alliances. As you seek to enhance your own alliance management capabilities—as an individual or as an organization—the first • Consultant hired to bu thing you need to do is establish a baseline. • Company lacks will to • Internal conversations While there is no scientific process or test that • No recognition of the p will definitively determine your current position, • No one outside the bu we’ve assembled three categories that in • Person responsible ha • Senior executives view our experience represent the continuum of • Employee assigned to alliance management as it has developed across the biopharmaceutical industry during the last 10 years. (See figure, right.) As you review the elements in Figure 1, you might find that your group’s efforts fall mainly into one category. And while your first tendency might be to rank these categories from low to high or from bad to good, it’s important to recognize that alliance management is a build, not an on-off switch that can be thrown to achieve immediate results. Just as a child learns to crawl, walk, and then run, so too must alliance managers learn from experience—their own and that of those who have been there before. If you’re not satisfied with your self-assessment, here’s the good news: Now is the perfect time to determine how to influence your own role and to decide how to increase the value alliance management brings to your entire organization.
Owning Risk Management With so much emphasis typically placed on people skills and operational facilitation, risk might seem an odd starting
Special Editorial Supplement to Strategic Alliance Magazine sponsored by Eli Lilly and Company
Non ASAP Member Limited Edition, Q3, 2011