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Seven Strategies for Successful Alliances

By: Linda Tischler
Whether striking a new business partnership or building a coalition government, you can benefit from these tricks of the trade. Two veteran negotiators share their strategies for forging and maintaining successful long-term relationships.

Read the sidebar: Getting to Peace

The tribal leaders of Afghanistan's new coalition government face some difficult challenges in the weeks and months ahead. Formerly feuding factions will likely encounter distrust, miscommunication, and crossed signals as they work toward a common cause. Chances are, one partner will eventually say something to arouse the ire of another. And, as negotiations muddle along, it's a sure bet some rogue staffer will engage in an inflammatory act that threatens to derail the whole enterprise.

In short, Afghanistan's new leadership ensemble will look a lot like the corporate boardroom when Microsoft sits down with Intel, or when Firestone teams up with Ford.

Danny Ertel and Stuart Kliman have seen it all before. They are both founding partners of Vantage Partners LLC, a Boston-based consulting group that specializes in relationship management -- specifically, the care and feeding of high-stakes strategic alliances. These relationships -- the ones an enterprise has with its two or three most important partners -- are increasingly vital, they say, as companies decide to forge alliances, rather than engage in costly mergers or acquisitions.

But as crucial as they are to a company's success, strategic alliances are also fraught with peril. Industry studies indicate that between 55% and 70% of business coalitions either fail or don't meet their original goals. In a Vantage Partners study of 130 companies with multiple partners, more than 64% of alliance managers cited poor working relationships as the root cause of the collapse of partnerships.

Stuart Kliman
"People often think that as long as they share a common goal, things should all fit together," Kliman says. "But our study showed that even if you have the terms and conditions of a partnership right, it may fail if you can't manage the relationships across the network."

This is just as true if you and your partner are Amazon.com and Toys "R" Us, or the Pashtun and the Uzbeks.

Ertel and Kliman earned their stripes as members of the Harvard Negotiation Project (HNP) in the 1980s. Led by Roger Fisher, coauthor of Getting to Yes: Negotiating Agreement Without Giving In, HNP has been airlifted into more international trouble spots than Delta Force. The HNP team has played a role in negotiations in the Middle East, Central America, Ecuador, the Balkans, and the Soviet Union. Ertel, who ran the Latin American practice, spent time with the rebels in El Salvador, where "people were literally checking their weapons at the door."

Danny Ertel
Skills honed during negotiations between El Salvador's Christiani government and the rebels it fought for 12 years can be useful in helping a big pharmaceutical firm work with a small biotech company. Or in forging a successful relationship between a giant telecom and a regional phone company.

We asked Ertel and Kliman to list the skills crucial to managing strategic alliances, whether they aim to reap healthy profits or put an end to war.

1. Be prepared to commit.

A true strategic alliance is not a casual thing. "You may date other people on the side," Kliman says, "but your strategic alliance partner is the one you're going home from the dance with."

From Issue | November 2001

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