In the business world, strategic alliances are vital towards success, but only if they are well maintained. On-going maintenance is critical; otherwise you end up with an alliance that hurts you, your business ally and your customers. However, with four simple steps you create an alliance that produces optimal results.
Clarity, allows you to set up and manage a strategic and tactical plan between both parties that will make sure everyone’s needs are met. By making your objectives known and learning the objectives of your partners you are in a position where you know which direction each party wants to take with the alliance. Maybe start with what does each party consider their conditions of success in 3-5 years? Together the partnership maps the alliance goals, which increases efficiency.
Once everyone is satisfied with the plan, get legal documentation of it. Verbal contracts are only good as the paper they are written on. The best part of a legal agreement is that both parties have to start with what they want from the relationship and what they expect. By getting legal documents set up, you protect your interests and your partner’s interests in the long run. Therefore, everyone can breathe easier knowing they are protected in this deal. Hopefully, these agreements don’t need enforcement and the alliance can grow.
I’m sure you’ve heard this time and time again, but communication really is an important building block for your alliance. Communication keeps all alliance members on good terms, but to keep track of company progress. It allows you to see all areas and pick up on areas that may falter. By doing so, you can get that area back on track and help them increase productivity. Thus, benefiting the alliance.
4. Look before you leap.
Before doing anything, each party must analyze the risks and benefits of every decision involving the alliance. Then you may build a plan that meets everyone’s needs. By doing this you keep you and others from making impulsive decisions that may harm the partnership.
By completing these simple steps and applying them to your business alliances you should find that your partnerships are more efficient and are producing better results. For more information and tips, you may visit our site, but please feel free to contact us should you have more questions.