Building effective alliances

Strategic business alliances are increasingly seen as a means to combine the capabilities of two or more organizations and thereby improve quality and reduce costs. To achieve these results however an alliance has to be properly built and maintained. Successful strategic business alliances pass through three stages: initiation, empowering and reaffirming. During the initiation stage, the parties state their intentions and goals. Also, key individuals and the larger organizations begin to embrace the concept of forming as a alliance. During the empowering stage, a team composed of working level employees from each organization forms. This team begins to work towards mutual goals and bridging differences in corporate culture. The working level team in turn progresses through the typical team development stages of forming storming, norming, and performing. During the third stage of alliance development reaffirming, continued growth, continuous improvement, and reaffirmation of the alliance are the dominant themes. By understanding these stages, it is easier to guide the development of an alliance.