Once you’ve decided what company you’re going to work with, it’s time to establish a good alliance foundation. In a strategic alliance two companies are coming together, yes. However,
- Two groups of employees and senior level staff,
- Two business models,
- Two corporate cultures,
- Two team management styles, and
- Two brand identities
…are also coming together. Because of this, it’s important that you define the other elements of your alliance with detail and clarity; just like you had your alliance management team and lawyers lay out the legal framework. Creating the solid foundation will help create a successful alliance.
Put it in Writing
Both sides should outline their alliance objectives and goals independently first. Start with long term goals, or conditions of success. Then you should come together in a meeting, agree and turn those lists into one list of objectives and goals. That list should then become an evaluation schedule with several benchmark dates. If your alliance begins in January, what should you have accomplished by March, and so on?
Discuss money matters up front. Who is paying for what and how will you divide the profits? In addition, both sides should consider staff and resources as money as well. Will your ace web designer have to work on the joint venture marketing campaign 4 days a week for 3 months? What kind of dent will that put in your company’s productivity when it comes to other projects?
How will you promote the alliance? Have a meeting and decide what you will do on both ends. Unexpected commercials and press releases can quickly destroy your alliance partner’s brand image. AllBusiness.Com lists some of the worst marketing campaigns of 2014. It could make any business owner cringe to imagine being in a joint venture with any of these companies at the time they chose to release these campaigns.
Strategic alliances are extremely beneficial arrangements for many companies. An alliance can encompass more than just marketing and sales. Alliances affect the whole company. Let us show you what working with the right company can do to improve your business model! Contact us today!