Like any other business relationship, successful strategic alliances are subject to misunderstandings, poor planning, and sheer caprice. According to Gene Slowinski, director of strategic-alliance studies at the Rutgers Graduate School of Management, before you even approach a potential strategic partner, you need to make sure you have something of genuine value to offer. "Unilateral deals fail," says Slowinski. "Probably 80% of the deals that we see include company A providing some unique product or technology and company B providing access to markets and distribution."
Slowinski also warns that although personal relationships are useful in forging partner relationships, it would be wise to look beyond social acquaintances. "Be careful not to create alliances based solely on personal relationships," he says. "Many people merely approach the company that they're comfortable approaching, not necessarily the one that will make the best partner." Also beware of the "drive-by" alliance--the kind in which two CEOs meet on a golf course, get to talking, and cut the deal before any of the actual implementers even know about it. Through his research, Slowinski has found the most common reasons strategic alliances fail:
- A STRATEGY CHANGE. With companies of all sizes reevaluating and shifting their strategic focus in much tighter time frames than ever before, it's no surprise that many alliances bite the dust when one partner abruptly takes a new strategic tack. Just as small boats tack faster, small companies are more likely to change their strategy than large firms are because they can respond more quickly to the marketplace. You need to ask, "Who is this company, and will they be the same six months from now?"
