Should You be Part of a Strategic
Alliance?
Major corporations worldwide have formed strategic alliances
to improve their competitive edge in the global economy.
Companies like Pfizer, MCI Worldcom, and Motorola form alliances
for specific projects or purposes to accomplish a short or
long-term goal. These alliances allow a merging of talents,
assets, and skills. They may lead to partnerships and mergers
but usually form to complete a single project. You may not be
the "partner of choice" for these giants, but you can capitalize
on this business strategy for long-term growth.
Knowledge is Power
Information can help you create a competitive advantage. In
the Dallas Federal Reserve Bank's 1999 Annual Report, president
Bob McTeer, Ph.D. said this, "knowledge is more important to
economic success than money or machinery."
www.dallasfed.org
Jim Blassingame, The Small Business
Advocate, agrees. In his article, "The Century of the
Entrepreneur," he identifies the three components of what he
calls "the new leverage model for entrepreneurs in the 21st
century": networking, creating strategic alliances, and
technology.
www.smallbusinessadvocate.com (Blassingame was included in
Fortune Small Business magazine in "Power 30," a list of the
most influential voices for small business.)
Sharing knowledge sounds good, but how can
you implement such a strategy? Begin by focusing on an exchange
of ideas with trusted associates. Form your own strategic
alliance. Think of it as a "master mind group."
The phenomenon of this alliance is, in
part, cumulative wisdom and knowledge. Those in the group draw
upon their unique experiences and specialized knowledge to help
each other in a spirit of perfect harmony. When each can draw
upon the collective brainpower of the group, he or she is
greatly strengthened.
Add to this the spiritual dimension, or
the force of synergism, and you see the added value of a
strategic alliance. It is this exchange of information and ideas
in a trusting environment that sometimes leads to "magical,"
inspirational breakthroughs.
On a cross-country flight from Los Angeles
to Baltimore, I became engaged in a stimulating conversation
about strategic alliances with a complete stranger. He told me
about a meeting he had attended in Austin, TX where the
principle worked perfectly. He and a few colleagues in the
medical profession had met with the group to discuss a start-up
business. In the group were men and women who had specialized
knowledge in finance, specifically the stock market, technical
expertise in electronic commerce, and other areas of business.
Each had a different specialty to bring to bear on their topic
of interest. They were going to continue to meet at specified
times to develop the concept. He was invigorated by their
discussions and anticipated a successful venture.
Objectives
Alliances are formed for any number of
reasons. If you are a trainer or consultant, you may want to get
fresh ideas for sources of capital, to expand your network, to
break into new markets or to reach personal goals. The goals of
those in an alliance must be clear at the outset. The group may
focus on individual or joint objectives, such as developing a
specific product or program, gaining a specific account or
contract, or developing certain individual skills. The
commitment level of its members will greatly affect the success
of the group.
When forming a strategic alliance
carefully select the people with whom you will work. You need
individuals with varying talents. For example, if you do not
have a large company, a good mix might include a financial
planner, a marketing expert, an information management
specialist, a salesperson, as well as a trainer and/or
consultant.
Participants
A couple can form a very effective
strategic alliance when aiming for a common visionary outcome.
For other groups, an uneven number of people, such as 3, 5, or
7, is more effective than an even number. The number of
participants is not as important as is their ability to work in
harmony with all the other participants. This is true even if
the objective is primarily to share assets or resources, such as
office space or expensive equipment.
For an alliance to survive, there must be
a high level of trust among the participants. The larger the
group, the harder it is to be in harmony on a continuing basis.
When there is good will and harmony, everyone gains. When envy
and resentment enter in, harmony fades and the group will likely
be destroyed.
To be most effective, members of the group
must expect results from their participation, in spite of
challenges and frustrations. A positive mental attitude
indicates that individuals are predisposed to think ideas are
workable. Negative thinkers focus on why ideas will not work,
rather than on trying to find ways to make them work. More
energy is required to keep moving forward.
Benefits
The potential benefits from participating
in a strategic alliance are enormous. At the very least, you
will have
Results often take time and effort. The
alliance is not a quick-fix solution to business problems.
Remaining focused on objectives, and persisting in the face of
challenges are key elements of the process.
Develop a sense of anticipation; expect to get results.
Participation in a strategic alliance will lead to increased
self-confidence and "know how." When a joint venture or
partnership results, sound management practices, including
record keeping, should be instituted immediately. Borrow from
the giants like Pfiser, MCI Worldcom, and Motorola. Adapt and
modify systems that serve them well.
Start where you are now; join forces with
other forward-thinking individuals who can add to your knowledge
base. Use the force of a strategic alliance to claim the
competitive edge. Ultimately, the result may be the realization
of your dream.
http://www.mastermindmanual.com
Printed in Dallas, TX, ASTD chapter
Perspectives, November 2000.
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