Presentation on theme: "GROUP 7 REFERENCE CHAPTER 3 : HOW TO SELECT ALLIANCE PARTNERS ("DEVELOPING STRATEGIC ALLIANCES”, RIGBEE) How to Find and Select Alliance Partners."— Presentation transcript:
GROUP 7 REFERENCE CHAPTER 3 : HOW TO SELECT ALLIANCE PARTNERS ("DEVELOPING STRATEGIC ALLIANCES”, RIGBEE) How to Find and Select Alliance Partners
Finding an alliance partner 1. Your suppliers – They know your competitors and other local businesses as they have a different perspective from you. 2. Your customers – They have most likely done some business with the person or company that you are seeking. They can be a window for you to seek for your alliance partner. 3. Your professional or trade association – It is a great place to look for if you want to alliance with either competitors or suppliers. 4. Newspaper and trade magazine – They offer information about the movement in the industry.
Finding an alliance partner 5. Local successful business people – Found at the chamber of commerce activities, charitable organizations, or even local seminars. 6. Study groups and mastermind alliances – If you can’t find one, start one with people in your community. 7. Think about outside professionals – There are consultants, lawyers, and accountants as example. 8. The Internet - Look through the Internet can be your additional option.
Selecting an Alliance Partner I. Trust Without trust, the alliance fails. Trust motivate your partner to take an action. Trust is very important in sharing information or technology to other parties. When the parties cannot create the legally enforceable agreement, they might use the Memorandum of Understanding (MOU) to describe the common line of action of each party. Example: Delivering fish from Prince Edward Island, Canada to Japan
Selecting an Alliance Partner II. Tolerance Tolerance must be cherished and practiced by all alliance members. Concern about the value of the new idea rather than concerning about whose inspiration it was Put effort to understand your alliance partners and their needs. Avoid protectionism from the senior management which will repress growth and synergy between alliance members. Example: The differences in culture can reflect the tolerance issue.
Selecting an Alliance Partner III. Cooperation Success is possible through the attitude of cooperation. Growth is the objective of businesses formed by developing strategic alliance To create the growth, we need to have kindness, the will to work together rather than separately work The cooperative working environment will form success and growth Growth is the natural outcropping of cooperation. Example: Two backpackers story
Selecting an Alliance Partner IV. Commitment 3 bases essential to found and develop a commitment: Care enough about your strategic alliance and its members Create leadership function and ability to follow when another is leading Understand emotional ownership, a sense of closeness and belonging to the organization through the work experience Commitment should come from the top management insuring the success of the alliance. Example: Wal-Mart and Cifra
Selecting an Alliance Partner V. Mutuality Mutuality = All involved are getting their needs met The framework of the alliance based on mutually equitable relationship The desire to win from both sides found a successful strategic alliance The party without the desire to win is the weakest member hanging and benefiting from another’s efforts and contributing nothing, and consequently, he would be taken out with great difficulty and pain. Example : Fuji and Xerox
The 10 Critical Qualities to Look in an Alliance Partner 1. Your partner wants to win – Choose a partner who is already a winner as a weak partner will only bring you down. 2. Your partner must understand that they are ultimately responsible for their own success - Synergy is very important to make a great partner. It is important to know when your partner isn’t the best choice in the situation we are in. 3. Your partner must be an active listener – It is a critical skill to keep in touch with the heartbeat of alliances.
The 10 Critical Qualities to Look in an Alliance Partner 4. Your partner must understand and care about what drives your business – Consistently give and receive additional value in the relationship and know what creates value for your partner. You need to understand their needs and goals first. 5. Your partner must respond to, and act on, feedback – A forward and beneficial movement in any organization is possible if only the leaders are willing to accept council. No one is smart enough to know it all.
The 10 Critical Qualities to Look in an Alliance Partner 6. Your partner must be flexible, especially when events or circumstances are not what were expected – Sometimes the organization needs someone who will rescue it when you don’t have ability to change the direction. 7. Your partner must be trusting, trustworthy, and with integrity, respecting all with whom they come in contact – Partnering with people who are trusting and trustworthy relieves a major annoyance, one that you can do without. 8. Your partner seeks win/win arrangements and solutions – You must win for the sake of your organization, and your partner must do the same.
The 10 Critical Qualities to Look in an Alliance Partner 9. Your partner must understand that partnering is a relationship of interdependence – The overlapping parts of you and your partners are the area of mutual interest and value. The greater the overlap, the greater the area of interdependence. 10. You and your partner must have great chemistry – If both people and organizations meet the above qualities and also have a good chemistry, it is an unstoppable alliance.
Credentials of Your Future Alliance Partner The Characteristics of Alliance Partner Ability to do and produce as promised in a deal. Having innovative method. Good partners should bring an innovation to the alliances. Having strong financial ability to continually contribute their agreed share. Cultural Compatibility Complimentary core strengths. Each partner shares their strengths and capabilities to increase efficiency and eliminate the repetition.
Conclusion: It is very important in the process of finding and selecting the partners. Once you did the alliance with the partners, you must realize something. People do not change after making alliances. What you see is what you get and you deserve the partners you select. Therefore, you must be careful when selecting the partners.