BASIC INGREDIENTS

FOR A SUCCESSFUL
CHANNEL ALLIANCE

Prof.Chris Abraham
Thorough assessment of
participant strengths

Build a relationship based on those identified

strengths that provide necessary elements for
successful operation of the partnership.
 Value consistency

Identify a partner with similar corporate

values to ensure that both firms are able
to co-mingle human and financial
resources without substantial debate.
 Clear understanding of
objectives

Ensure that clearly defined goals and

objectives are discussed in preliminary
negotiations for the facilitation of further
coordination of activities
Agreement of measurement
standards

Establish measurement criteria that clarify the

initial partnership vision at the activity level for
employees of both participants
 Long-term focus

Create a long-term perspective on the

relationship that does not endanger the
initial investment through expectation of
immediate results.
Multiple –level commitment

Provide continuity and depth of commitment through

approval and reinforcement of the partnership
across several management levels (including the
CEO)
Working relationship at interface
level

Foster coordination of the partners at the

interface level to ensure that daily activities are
successfully accomplished once the task forces
have clearly established the goals and
objectives.
Limited number of relationships

Limit the number of legitimate partnerships in

which either firm is actively engaged to
acknowledge the extensive time requirements at
key levels in the company
Elimination of “quid pro quo”
mentality

Maintain an attitude that allows for changes in the

original agreement which benefit the entire product
supply chain, regardless of the timing of individual
costs or returns (i.e., permit sub optimization)
Prices are negotiated, not bid
and subject to change

Remain committed to ultimate resolution of

conflict through negotiation in the interest of
continuing the relationship over the long term.