Alliances: An Executive Guide to Designing Successful Strategic Partnerships

237 Pages·2014·1.18 MB·English

by  Ard-Pieter de Man

Alliances

Alliances
An Executive Guide to
Designing Successful
Strategic Partnerships
Ard-Pieter de Man
This edition first published 2013
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Library of Congress Cataloging-in-Publication Data
Man, Adrianus Pieter de
Alliances : an executive guide to designing successful strategic partnerships /
Ard-Pieter de Man.
pages cm
Includes index.
ISBN 978-1-118-48639-9 (hardback)
1. Strategic alliances (Business) I. Title.
HD69.S8.M32 2014
658'.046—dc23 2013039719
A catalogue record for this book is available from the British Library.
ISBN 978-1-118-48639-9 (hardback) ISBN 978-1-118-48632-0 (ebk)
ISBN 978-1-118-48636-8 (ebk)
Cover design/image: Dan Jubb/iStock
Set in 9.5/13 pt Melior LT Std by Toppan Best-set Premedia Limited, Hong Kong
Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK
Contents
Foreword vii
Introduction ix
Acknowledgments xiii
1 Strategic alliances: The control–trust dilemma 1
2 The Alliance Design Framework 21
3 Turning suppliers into allies 51
4 Contractual alliances: The customization of alliance design 71
5 The virtual joint venture model: Air France/KLM, Delta Airlines,
and Alitalia 101
6 Equity alliances and joint ventures 121
7 Multi-partner alliances: The more the merrier? 145
8 Managing the dynamics: Mutual adjustment and
continuous negotiation 167
9 Designing and implementing strategic alliances:
Art, science, and craft 181
10 Open alliances: Towards the third generation of collaboration 195
Appendix Financial models behind alliances 207
Index 215

Foreword
Strategic alliances are particularly important in today’s highly competitive and
increasingly complex global markets. Alliances are used to share costs, conduct
collaborative research, mitigate risk, grow product pipelines, expand geographic
boundaries and profit from the blending of industries which continue at an
accelerated pace. One of the recurrent challenges with strategic alliances is how
to design and implement the correct governance platform and supportive organ-
izational structure. Developing, implementing and maintaining a suitable alli-
ance form is a key factor for strategic alliance success. Over the years this issue
has been an important element in the meetings, summits and publications of
the leading organization dedicated to the practice of alliance management, the
Association of Strategic Alliance Professionals (ASAP).
In this book, Ard-Pieter de Man investigates a number of areas that active prac-
titioners of alliance management focus on to achieve desired results from a
strategic relationship. Overall development of the partnership agreement, the
overarching governance structure and the ongoing tactical execution and essen-
tial measurement tools are considered. These elements, and the challenges they
bring, are clearly evidenced in any type of agreement. The area of collaboration
governance by itself is a particularly sensitive issue as partnerships cross
company boundaries, cultures and hierarchies.
As a long-time practicing professional and contributor in the area of strategic
alliance management, I have been highly familiarized by the work and teachings
of Ard-Pieter de Man on this topic. As I endeavored to develop a global alliance
management team at a world-renowned drug development organization and
help build the ASAP proposition, I have come to respect his perspective on this
emergent and growing business requirement.
One particular effort Ard-Pieter de Man has put forward in concert with other
highly respected alliance experts, (a research project called “It’s in the DNA”)
viii FOREWORD
is a fine outline of how alignment of cultural norms can affect alliance success.
Without the development of a strong base in this regard, a critical success factor
is left wanting and the overall success of the alliance could be put at risk. In
this book, the important themes of culture, norms and values are integrated
with aspects of formal structures and governance. This gives a full-blown
account of how alliances should be designed while incorporating this essential,
but many times undervalued, piece of the partnership equation.
This book will introduce you to in-depth case studies, useful checklists and
strong issue resolution techniques that are supported by years of Ard-Pieter de
Man’s ongoing research and active consulting practice. These important con-
cepts outline why alliance management is seen as important by the global
business community and how it continues to evolve as new partnership appli-
cations develop.
The detailed case studies focus on some of the world’s leading alliances. They
form the backbone of an extensive overview of different alliance governance
forms, which will help managers navigate the many different choices they face.
Unique characteristics of the book also include the integration of the “hard”
and “soft” side of alliances, the first ever discussion of financial models in alli-
ances and the role of change management in alliances.
As Ard-Pieter de Man has continued his examination of this profession, I have
become increasingly appreciative of his dedication to the study of the business
contributions that the practice of strategic alliance management brings forward.
His representation around the most current thinking, ongoing development and
important financial nuances on this subject is absolutely additive to an organi-
zational bottom line. I would strongly recommend this as a read for any indi-
vidual – practitioner or decision maker – who holds strategic alliances as a
component of their business development plans.
Jack W. Pearson
Acting President & CEO
Board Vice Chair/Chairman-Elect
Association of Strategic Alliance Professionals
Cary, North Carolina
2013