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How to Set Up a Strategic Alliance


   

Once you have made the decision to form an alliance, you need to establish what the factors are that you are looking for in that alliance. Sketching a basic business plan of what you want to achieve will go a long way to forming a relationship that works. If you don't have potential partners identified, the plan will help clarify exactly what you need.

Develop search criteria for the ideal alliance. Your criteria should consist of clearly defined business objectives and personal factors that are important to you. Typical business objectives can be anything from production capacity to technological expertise. This should be information that you can get hard numbers for. Personal factors are more intangible to measure, but can be what really makes or breaks the alliance. Some criteria you might want to consider are corporate culture, personal chemistry, hidden agendas, and internal commitment.

Using your criteria, canvas professional and industry organizations, professional service providers (for example, CPAs, law firms, marketing firms) and other parallel businesses to find appropriate candidates. Don't limit yourself initially unless you already are in an informal relationship with a reliable potential partner that you are seeking to solidify. Even then, alternative choices give you comparative information that may be important to consider. Gather as much information about each potential partner as is possible. From this, you can narrow the field to those that seem to be possible fits. Rank the candidates informally based on how well they meet your search criteria.

Now it is time to start actively exploring a potential alliance with your top candidate. With your criteria and business plan in hand, you have a clear basis for initiating negotiation. However, as in any partnership, compromises are going to be necessary. Make certain you are aware of what your critical factors are and which ones would be nice, but not necessary. Depending on the complexity of the relationship this may be a point at which you want to get a third party involved. No matter how informal the arrangement, however, a written contract is critical. You can hammer out the details of the alliance directly with the other company, but do have an attorney review the agreement before signing the document.

For businesses seeking more complex arrangements there are numerous firms that specialize in arranging strategic alliances. The Association of Strategic Alliance Professionals is a non-profit organization dedicated to providing management resources, sharing best practices, and supporting the professional development of those involved in strategic alliances. They provide information about strategic alliances and links to members who are professionals in arranging alliances.

 

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