Creating and Managing Strategic Alliances

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Creating and Managing Strategic Alliances

• Gene Slowinski, Ph.D.

Director, Strategic Alliance Research Rutgers
University Alliance Management Group,
Inc. www.strategicalliance.com [phone]
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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program - implementing

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The Strategic Use of Alliances
The Traditional Model
HP/Compaq
IBM
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The Strategic Use of Alliances
The Network Model
IBM
HP/Compaq
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The Strategic Use of Alliances
A Strategic Approach to the Erythropoetin
MarketChugai Corporation
Chugai
Genetics Institute
RD
Manufacturing
Pharmacia
Name Recognition Distribution
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Unit of Analysis
Company A
Business Unit
Brand or Therapeutic Area
Technology Platform
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Competitive PositioningHow Wall Street will
value a firms portfolio of alliancesUnit of
Analysis Diabetes Care
Global Channel Partners
E-commerce
Bioinformatics
Biotech

Merck















Pfizer








Eli Lilly










GlaxoSmithKline









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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program - implementing

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Alliance Framework

• A rigorous process for planning and negotiating
  an alliance.
• Goal is to develop a high quality deal quickly
  or, to understand that a deal is not possible ...
  quickly.
• Requires internal commitment from all key
  internal stakeholders (anyone with a budgetable
  resource).
• Accelerates implementation because implementers
  are part of the Alliance Framework team.
• Works best when both firms use the process.

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Why Alliances go bad !
Company A
Company B
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Alliance Framework Elements
Typical Elements

• Business plan summary
• Objectives (ours, theirs)
• Roles (ours, theirs)
• Overall resources
• Boundaries
• Market model
• Exclusivity
• Intersections
• Detailed objectives and detailed resources
• Financial pie-split
• Intellectual property
• Working process and governance
• Term and termination

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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program implementing
• Joint negotiators presentation
• Decision making analysis
• Conflict resolution

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Business Development Presentation

• Team member Company A

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Business Development Presentation

• Team member Company B

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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program implementing
• Joint negotiators presentation
• Decision making analysis
• Conflict resolution

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Decision Making Analysis
How are decisions made in your company?
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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program implementing
• Joint negotiators presentation
• Decision making analysis
• Conflict resolution

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Anatomy of an Alliance
The Early Days
Company A
Company B
X Functional team
X Functional team
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Anatomy of an Alliance
Mature alliance
Company A
Company B
X Functional team
X Functional team
Alliances are a cascade of covenants between
people. These covenants are dynamic and complex.
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Expectation Mapping Worksheet
What tasks am I expected to perform?

A

B

C

D

E

With what priority?










Which tasks will be done

cooperatively with me?










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Expectation Mapping Worksheet
What tasks will my counterpart perform?

A

B

C

D

E

With what priority?










Which tasks will be done

cooperatively with me?










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• Thank You !