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Alliance Risk Management
• Are viewed as part of the team by their company’s line management • Are active participants in the game • Are not extensions of either partner’s business development or product management negotiating team • Lessen the workload of the line management working on an alliance • Take on assignments that no one in the alliance really wants to do • Take on problems that might otherwise fall through the cracks (gray-space issues) • Line management can point to key work products that have saved their team time and effort by foreseeing issues and providing timely solutions or to the alliance managers, having led efforts to solve complex alliance problems of line management
Alliance Relationship Management
• Have a dedicated alliance management function • Focus on relationship, team building, and administering team health surveys, etc. • Are viewed as outsiders by their own company’s line management • Concept of alliance management is viewed as the flavor of the month, or something to be endured by the majority of those who perform actual alliance work • Alliance management roles often populated by those who have no upward potential in the corporate organization, but have good social skills • Alliance managers are often the spectators or referees in the core work of the alliance • Line managers see alliance management roles as meeting facilitation,meeting minute-taking, and alliance survey administration • Can generate more work for alliance line management by insisting that certain processes be used
finally formed when, after much discussion uild the web page and due diligence, o do anything more than talk about alliance commitment the organizations s almost always use the word “they” instead of “we” when referring to the partnership partner/alliance work on an individual’s performance management documents decide to come usiness development function has any idea what alliance management is together under a as a business card that does not mention alliance management legal contract that w alliance partner as a burden o the alliance management function creates minimal internal tension within his/her own company by representing a partner’s views establishes and governs the relationship for a set period of time. In a majority of cases, the written point for a discussion on effective alliance management. agreement does not clearly define how the two organizaBut in fact, as we posited earlier, the willingness and ability tions will operate, and it is in this contractual silence that to proactively manage risk is at the core of valued, valuable the voice of alliance management is so important. alliance management. The business of the alliance must be laid out, and Why do we believe that risk management is so critical? timelines, deadlines, probabilities of technical success, and The answer is a straightforward argument that proceeds other elements associated with developing the product or from the very purpose of alliances: to create something service must be determined. The principal working team of value from what would otherwise remain latent risk for meets, and people begin the intricate process of forming both partners. the relationships that will be crucial to a positive alliance As Background, Let’s Look outcome. at Two Basic Alliance Scenarios: As you can infer from the preceding description, risk is One organization has a product or service, but for businessnot eliminated when two groups come together; in fact, related reasons chooses not to independently develop it. one could argue that risk intensifies. In an alliance, you now Οne organization has cash and/or idle resources and have a combination of business, legal, and human factors needs a particular product or service, but for businessthat previously did not exist, along with the inefficiencies of related reasons chooses not to develop that product or coordinating activities between parties. service internally. In either situation, there is an element of risk assumed by both companies that must be managed. An alliance is
l Alliance Management
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