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Strategic Alliances: How To Find Your Business A BFF
Strategic Alliances: How To Find Your Business A BFF
#AllianceBBOT
Provide sales, marketing & financial strategy, to growing & under-achieving businesses. Worked with high tech to no-tech product & service businesses Built businesses that last Global Experience Started in 1981. Survived 6 downturns City of Austin Certified Green Business NCRC Certified Technical Advisors National & International Award Winners
Where nature makes natural allies of us all, we can demonstrate that beneficial relations are possible even with those with whom we most deeply disagree, and this must someday be the basis of world peace and world law.
What kind of alliance are you involved with now or would you like to create?
Career Business
Joint marketing, sales or distribution Keeping competition out Joint production Establishing standards Design collaboration Technology licensing Research and development
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Alliances
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Temporary
Once/Trial Periodic Regular
Permanent
Period of time Forever
Informal
Handshake Verbal
Formal
Signed mutual agreement of understanding Legal contract
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Vertical between a vendor & a customer, competitors, two or more businesses Horizontal between employees, supervisors, managers, departments Local or global; internal or external
Better when allies have complementary strengths & limited weaknesses.
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Simplest form of alliance Link operations (Cross training, R&D, etc.) Collaborative, strategic orientation Coordinate mgmt Each remains independent Vested interest in each others future
A legal contract that joins two or more entities together Creates a new entity Staffing by separate mgmt team All parties agree to share in the profits and losses
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Strategic Alliances
Joint Ventures
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Marketing
x Increase market penetration x Expand market development x Keep competitors out
Sales
x Enhance competitiveness in domestic &/or global markets x Develop new business opportunities through new products & services x Increase exports
Finance
x Create new businesses x Reduce costs
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Friend/Life Saver Network Addition for job/career advancement, accomplishing joint mission Cross Marketing Ally Cooperative Advertising Shared Manufacturing Expense Joint Venture
Whats yours?
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Alone we can do so little; together we can do so much. Walking with a friend in the dark is better than walking alone in the light.
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Increase profits
Need for or leverage resources Downsizing Production costs & R&D World class status goals
Meet Threats
Regulations & taxes Increased competition Hostile takeover
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Cooperative competition Learning component Skill building Cost reduction Risk reduction
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Good
Not as Good
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Sales
Locate near each other
x Food court, Marine repair (Keema, TX), Japans business streets x IBIZ Districts, Enterprise Zones,
Operations
Joint negotiations for supplies Shared staff Shared resources
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Thousands of alliances formed each year 15% annual growth 60% fail 1/3 report alliances are a struggle 9% build successful alliances
Top successful alliances added $72 Billion in shareholder value over 2 yrs.; bad alliances cost companies $43 Billion. (Harvard/Accenture study 2003)
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Big Alliances
Got Milk? Campaign
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Smaller Alliances
Security Company & Wholesaler BSC and PRE Mgmt
Corning & Samsung (glass TV tube/Korea market) Airbus (Britain, Spain, Germany, France)
Bundled contracts
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Networking First job, RISE Austin 2011 with 23 firms simultaneously, Community activist, author of Networkers Guide to Success Cooperative competition Austin Technology Incubator (contract), Attorney (speaking), Thinking Big, Staying Small (co-author) Sales Rep Virtual Marketing Director Co-op marketing for clients and with clients Acquisition Entrepreneurs Association Trading Company 2 international trade missions, Japanese colleague
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On the ground of intersecting highways, join hands with your allies. BUT We cannot enter into alliances until we are acquainted with the designs of our neighbors.
- from The Art of War
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To be successful:
Set reasonable, realistic goals Choose the right kind of alliance Know the rules Select the right allies Work the alliance Measure results Have a way out (transfer, transform, exit) & a contingency plan
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Your strategic alliance process Getting through the differences Not giving away too much Training everyone Sharing power
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Keeping it going Communication both ways Getting out of a bad/ unproductive alliance Ultimate outcome Legally speaking
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Two possibilities
Choosing allies Being chosen to be an ally
Same issues
Choose allies that match your profile Do your due diligence (whats their alliance history) Set rules of engagement Communicate often Measure results (including Early Warning System)
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Demographics Psychographics Vision Behaviors Risk Tolerance Decision-Making Style Management Style Game Food Choices
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Your strengths & weaknesses Are you willing to let your potential allies know these? Who are you?
Believer, Rebel, Competitor DIAYDo It All Yourself, Worker Bee, Investor/Inventor Big gridder, little gridder Decision style Management style Entrepreneur, Proprietor, Guild Game Food Preferences
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Set goal, ID potential ally/allies Complete due diligence to assess fitness of ally Negotiate alliance Transfer alliance to mgr Launch and train all alliance staff Manage Audit (Early Warning System & Metrics) Transform/Transfer/Exit
Business Success Center, Austin, TX 2011. All rights reserved
2. 3. 4.
5.
6. 7.
8.
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Goals who wants what Responsibilities who does what Rules how its done (including culture business & personal attitudes & exit strategy)
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Whos in charge? Who decides? How its done? Who pays & where it stays? Who owns what? Who works & how long?
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Initial Short Term Long Term Need Warning Signal System Contingency Plan
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Technology leaks, stealing Providing vital info on future plans Customers switch to competitor Delays in decision making Asset sales below market value Fake alliance Alliance float ally fails to deliver
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Priorities misplaced Me first, You last Lack of trust Missed deadlines Roles confused Team conflicts Win-lose position of ally Cost overruns Missed goals and milestones
Why you need a contingency plan.
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Blue Ocean Strategy by Kim & Mauborgne Handshake Strategy by Triplett (ebook Spring 2012) Checklist Manifesto by Gawande Long Tail by Anderson Mastering Alliance Strategy by Bamford Networkers Guide 4th Edition by Triplett (ebook Spring 2012)
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Jan Triplett
triplett@runitright.biz Jan Triplett
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