Seven Strategies for Successful Alliances

By: Linda TischlerWed Dec 19, 2007 at 8:40 AM

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.

4. Don't abandon your leader.

"The core mistake that organizations make is assuming that relationship management is an individual skill. It's not," Kliman says. "It's a business process with a beginning, a middle, and an end. It should have a set of tools underneath it, and a set of incentives underneath that."

Ertel agrees. "If the alliance is really important for you, you can't, in good conscience, simply say, 'Well, if we have a good people person on the interface, then it will get done.' Relationship management is a process that needs to be managed."

5. Stock up on capitalist tools.

Stock your alliance toolbox with supplies that will help the partnership thrive and grow. These tools may include techniques for effective negotiations, strategies for dealing with conflicts, a template for a joint planning process, or scorecards for auditing the health and quality of the relationship. Many companies create alliance-support teams that create measuring instruments and that build the alliance-management Web site, where all the tools reside.

6. Keep your friends close -- and your enemies closer.

In business -- as on the international stage -- the most challenging alliances are those in which companies, or countries, are partners in one area and competitors in another. Think of IBM and Hewlett-Packard, which may collaborate on next-generation chip technology, compete vigorously in the service arena, and share a vendor relationship in printers.

"Our relationships in the international arena right now are multifaceted," says Kliman. "We're partners in the coalition against terrorism, we're competitors in some economic arenas, and we're adversaries in others. Making that whole thing work is a huge challenge." Both sides need to understand that "a strong relationship doesn't mean you always agree with each other," Ertel says. "It does mean you have a way of reconciling differences."

7. Imagine the worst. Plan for it.

Imagine a range of nightmare scenarios: a key Northern Alliance player is killed, bombers mistakenly hit a Red Cross building, faulty tires cause fatal auto accidents. Then develop the protocols and processes that will allow you to deal well and efficiently with each of those issues. "Think about how to make this very complicated, interdependent venture work over time," Kliman says, "and set the model so that it fits all situations."

Linda Tischler (ltischler@fastcompany.com) is the Fast Company managing editor of new media. Learn more about Vantage Partners on the Web. Contact Danny Ertel (dertel@vantagepartners.com) and Stuart Kliman (skliman@vantagepartners.com) via email.