Using co-operative strategies to make alliances work

Increasingly, firms are engaging in strategic alliances and joint ventures as part of an overall corporate strategy. Partnering is an effective way for firms to develop new technologies and products, procure critical resources, and tap new markets. Many alliances, however, run into problems and fail before ever achieving these benefits. Three key factors establish the foundation of a successful partnership: 1. the co-operative strategy, 2. the relationship, and 3. the partner. Some guidelines are emerging for alliance architects on how to make the right decisions about these pivotal components and on how to evaluate new alliances for the long-term. A well-designed alliance can avert costly and time-consuming repairs later. The key to success is careful planning—not patchwork.