Making strategic alliances work

One of the changes brought about by the New Economy during the past 10 years has been the proliferation of strategic business alliances. Strategic alliances are a way for companies with complementary strengths to enter a given market more effectively and efficiently than either alliance partner could manage alone. Strategic alliances allow companies to minimize risks relating to their technological, market, or competitive environments. Regardless of the legal form, alliances govern the ongoing, often open-ended relationship between the partnering companies. If not managed carefully, they may unravel to the detriment of all parties involved. There are four keys to successful strategic alliances: 1. proper strategy, 2. aligned structure, 3. clear governance rules, and 4. effective monitoring by all parties involved.