Research from Alliance Best Practice conducted over the last 12 years has identified a set of factors which are ‘statistically significant’ in successful strategic alliances.  A result is considered statistically significant not because it is important or meaningful, but because it has been predicted as unlikely to have occurred by chance alone.

In other words those factors that lead to success in alliance relationships can be predicted and tracked.  Alliance Best Practice has tracked these Common Success factors (CSFs) and compiled the following list:

Commercial Technical Strategic Cultural Operational
  • Co1 Business Value Proposition (BVP)
  • Co2 Due Diligence
  • Co3 Optimum Legal / Business Structure
  • Co4 Alliance Audit
  • Co5 Key metrics
  • Co6 Alliance reward system
  • Co7 Commercial cost
  • Co8 Commercial benefit
  • Co9 Process for negotiation
  • Co10 Expected cost value ratio
  • T11 Valuation of assets
  • T12 Partner company market position
  • T13 Host company market position
  • T14 Market fit of proposed solution
  • T15 Product fit with partners offerings
  • T16 Identified mutual needs in the relationship
  • T17 Process for joint problem solving
  • T18 Shared Control
  • T19 Partner accountability
  • S20 Shared objectives
  • S21 Relationship Scope
  • S22 Tactical and strategic risk
  • S23 Risk sharing
  • S24 Exit strategies
  • S25 Senior executive support
  • S26 B2B Strategic alignment
  • S27 Fit with strategic business path
  • S28 Other relationships with same / other partner/s
  • S29 Common strategic ground rules
  • S30 Common vision
  •  Cu31 Business to business trust
  • Cu32 Collaborative corporate mindset
  • Cu33 Collaboration skills
  • Cu34 Dedicated alliance manager
  • Cu35 Alliance Centre of excellence
  • Cu36 Decision making process
  • Cu37 Other cultural issues
  • Cu38 Business to Business cultural alignment
  •  O39 Alliance process
  • O40 Speed of progress so far
  • O41 Distance from revenue
  • O42 Joint business plan
  • O43 Communication
  • O44 Health check / quality review
  • O45 MOUP or Alliance Charter
  • O46 Change management
  • O47 Operational metrics
  • O48 Business to business operational alignment
  • O49 Exponential breakthroughs
  • O50 Internal alignment
  • O51 Project plan
  • O52 Issue escalation

 

Observations or constructive criticism of this list are invited from alliance researchers or practitioners.

 

Mike Nevin

Managing Director

Alliance Best Practice Ltd