Should You be Part of a Strategic Alliance?
Articles by Jo Condrill Back to ArticlesMajor corporations worldwide have formed strategic alliances to improve their competitive edge in the global economy. Companies like Pfizer, MCI Worldcom, and Motorola form alliances for specific projects or purposes to accomplish a short or long-term goal. These alliances allow a merging of talents, assets, and skills. They may lead to partnerships and mergers but usually form to complete a single project. You may not be the "partner of choice" for these giants, but you can capitalize on this business strategy for long-term growth.
Knowledge is Power
Information can help you create a competitive advantage. In the Dallas Federal Reserve Bank's 1999 Annual Report, president Bob McTeer, Ph.D. said this, "knowledge is more important to economic success than money or machinery." www.dallasfed.org
Jim Blassingame, The Small Business Advocate, agrees. In his article, "The Century of the Entrepreneur," he identifies the three components of what he calls "the new leverage model for entrepreneurs in the 21st century": networking, creating strategic alliances, and technology.
www.smallbusinessadvocate.com (Blassingame was included in Fortune Small Business magazine in "Power 30," a list of the most influential voices for small business.)
Sharing knowledge sounds good, but how can you implement such a strategy? Begin by focusing on an exchange of ideas with trusted associates. Form your own strategic alliance. Think of it as a "master mind group."
The phenomenon of this alliance is, in part, cumulative wisdom and knowledge. Those in the group draw upon their unique experiences and specialized knowledge to help each other in a spirit of perfect harmony. When each can draw upon the collective brainpower of the group, he or she is greatly strengthened.
Add to this the spiritual dimension, or the force of synergism, and you see the added value of a strategic alliance. It is this exchange of information and ideas in a trusting environment that sometimes leads to "magical," inspirational breakthroughs.
On a cross-country flight from Los Angeles to Baltimore, I became engaged in a stimulating conversation about strategic alliances with a complete stranger. He told me about a meeting he had attended in Austin, TX where the principle worked perfectly. He and a few colleagues in the medical profession had met with the group to discuss a start-up business. In the group were men and women who had specialized knowledge in finance, specifically the stock market, technical expertise in electronic commerce, and other areas of business. Each had a different specialty to bring to bear on their topic of interest. They were going to continue to meet at specified times to develop the concept. He was invigorated by their discussions and anticipated a successful venture.
Objectives
Alliances are formed for any number of reasons. If you are a trainer or consultant, you may want to get fresh ideas for sources of capital, to expand your network, to break into new markets or to reach personal goals. The goals of those in an alliance must be clear at the outset. The group may focus on individual or joint objectives, such as developing a specific product or program, gaining a specific account or contract, or developing certain individual skills. The commitment level of its members will greatly affect the success of the group.
When forming a strategic alliance carefully select the people with whom you will work. You need individuals with varying talents. For example, if you do not have a large company, a good mix might include a financial planner, a marketing expert, an information management specialist, a salesperson, as well as a trainer and/or consultant.
Participants
A couple can form a very effective strategic alliance when aiming for a common visionary outcome. For other groups, an uneven number of people, such as 3, 5, or 7, is more effective than an even number. The number of participants is not as important as is their ability to work in harmony with all the other participants. This is true even if the objective is primarily to share assets or resources, such as office space or expensive equipment.
For an alliance to survive, there must be a high level of trust among the participants. The larger the group, the harder it is to be in harmony on a continuing basis. When there is good will and harmony, everyone gains. When envy and resentment enter in, harmony fades and the group will likely be destroyed.
To be most effective, members of the group must expect results from their participation, in spite of challenges and frustrations. A positive mental attitude indicates that individuals are predisposed to think ideas are workable. Negative thinkers focus on why ideas will not work, rather than on trying to find ways to make them work. More energy is required to keep moving forward.
Benefits
The potential benefits from participating in a strategic alliance are enormous. At the very least, you will have
- A safe environment for sharing ideas
- Other minds focused for a period of time on your specific innovative ideas or challenges
- A shortened learning curve when engaged in new ventures
Results often take time and effort. The alliance is not a quick-fix solution to business problems. Remaining focused on objectives, and persisting in the face of challenges are key elements of the process.
Develop a sense of anticipation; expect to get results. Participation in a strategic alliance will lead to increased self-confidence and "know how." When a joint venture or partnership results, sound management practices, including record keeping, should be instituted immediately. Borrow from the giants like Pfiser, MCI Worldcom, and Motorola. Adapt and modify systems that serve them well.
Start where you are now; join forces with other forward-thinking individuals who can add to your knowledge base. Use the force of a strategic alliance to claim the competitive edge. Ultimately, the result may be the realization of your dream.
Printed in Dallas, TX, ASTD chapter Perspectives, November 2000.
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