Alliances are increasing in importance, used as a strategic tool to help organisations grow. Over 25 years ago Yves Doz and Gary Hamel wrote “No company can go it alone” as the opening statement of their book “Alliance Advantage: The Art of Creating Value Through Partnering”. Today, this is more applicable than ever. Many companies include alliances & partnerships as a critical pillar in their overall strategy to achieve their growth ambition.
Some industry sectors are further ahead in adopting alliances & partnerships than others. In the pharmaceutical and biotech industries 70% of the industry’s revenue comes from joint developments with partners. In the technology sectors, the majority of partnerships are go-to-market focussed, through channel and distribution partnerships. These are the industry sectors that are relatively mature in their approach to alliances & partnerships.
Some other industries don’t yet realise that “alliances & partnerships are the new leadership”. With the rise in the importance of alliances, it is essential to know how to execute alliances effectively. A collaborative approach requires a different mindset and behaviour than a transactional approach. A collaborative mindset and a diligent collaborative approach will lead to accelerated growth and being seen as a partner of choice. Both partners will benefit and, more importantly, the value proposition for the end user, or patient, will increase in value too. A true win-win-win situation!
The differences between success and failure in establishing alliances can be huge. Yet despite how obvious these advantages are, many organisations still believe that alliances & partnerships are nothing special! People feel that they can just do alliances. However, if your organisation wants to achieve its growth ambition, it would indeed be wise to invest in improving your alliance management skills. This could result in as much as a 60% higher alliances & partnerships success rate!
Skill development can be executed in different ways and could start as simply just reading books from my alliance reading list. For faster results, it is advisable to follow a more structured approach by attending our June Alliance Masterclass, or to schedule a call with me to explore the best alliance & partnerships skills development approach for you.
Whenever in doubt, remember that an investment in your alliance & partnerships skills is an investment in the future of your company, your team and yourself: Just imagine what a 60% higher alliances & partnerships success rate would mean for your company!
What Have I Been Reading: “The Culture Map: Breaking Through the Invisible Boundaries of Global Business” * by Erin Meyer
Why Is It Relevant? In this book, Erin Meyer discusses, and helps you to understand, the many differences in cultures around the world. For instance, one of the chapters is dedicated to the differences in the way trust is built and culture is an important influencer of how trust is being established. Building trust and cultural understanding are essential elements in establishing successful alliances & partnerships.