Introduction

Alliances have long been a part of company strategy. They are prominent in most industries, generally occurring to gain access to markets, expertise and technology, and to share risks and costs. Partnering is central to the strategies of many well-known technology companies, including Cisco, IBM, and Microsoft. The global airline alliances have provided companies in that industry with opportunities to leverage each others’ resources and better serve customers. Energy companies partner to access and operate natural resource fields. Consumer goods companies ally to seek new sources of product. Within bio pharmaceuticals, alliances have become an essential strategic tool as the cost and risk of developing new medicines has increased.

Over the past two decades, studies of strategic alliances have shown an increasing:

§  Percentage of revenues from collaborative relationships and alliances
§  Percentage of new products sourced from outside the company
§  Utilization of entire business process outsourcing

In many industries, alliances account for more than half of revenues and new products. The message is clear. In industry after industry, the economic imperative is to establish and grow the alliances needed to create the business value that drives strategic and financial outcomes.

By nature, alliances are complex. As a result, despite their promise, many alliances aren’t successful. Studies conducted by McKinsey and others have shown that fewer than 50% of alliances achieve their objectives. To remedy this situation, scholars, consultants, and industry practitioners have developed a body of knowledge to guide partnering organizations in making the management of alliances a repeatable and consistent process. In doing so, the success rate has improved and the processes, practices, and tools of alliance management have come to be recognized as a unique professional management discipline