In Part Two of our Strategic Alliances Series, we will share some of the key characteristics that Strategic Alliances share in common.
This is one of the most important characterizes of a successful strategic alliance. The organizations combined strengths complement each other, giving more strength to the alliance than they would have independently. In a good strategic alliance the whole is much more valuable than the individual parts to create the 1+1=3 results.
- Win – Win
Each organization involved is looking out for the interest of the other organization and the alliance as a whole; resulting in optimal results.
- Values and Goals
The companies have mutually compatible goals, rewards, and methods of operations. Strategic alliances with specific, concrete objectives, timetables, clear lines of responsibility, and measurable results are best positioned for potential success.
- Commitment & Attitude
The organizations, their leaders, and various levels of the company are all committed and aligned in their efforts and understanding of the strategic alliance. There is also the commitment of the necessary resources in accomplish the alliance’s goals. The organizations in the alliance and the parties involved are able to communicate and cooperate well, and everyone has an equally cooperative attitude.
- Growth Opportunities
The strategic alliance creates new opportunities for providing products/services to existing and possibly new ones. Other areas of the industry that were not previously viable are now potential opportunities.
Stay tuned to next week’s post, “The Types of Strategic Alliances.” Additionally, at the end of this series, we will provide a summary and link to the Best’s Review article “Getting Together.” In this article, Victor Castellanos and Arny Henkel discuss insurance strategic alliances, their value and formation.