Reading 6-2: How to Manage Alliances Better Than Once at a Time

1. How can companies form strategic alliances that create value on a stand-alone basis and at the alliance portfolio level?

1.1. Findings

1.1.1. Pitfalls of Alliance Portfolio Expansion

1.1.1.1. "Sedimentary" Accumulation Process

1.1.1.1.1. Business units enters partnerships that prioritize local needs over broader corporate needs

1.1.1.1.2. Decision makers don't interact much, so there is a lack of coordination

1.1.1.1.3. Managers behave opportunistically

1.1.2. Use an Alliance Business Case Framework that takes into account the costs and benefits on both levels

1.1.2.1. Holistic Cost-Benefit Analysis

1.1.2.1.1. Costs and Benefits

1.1.3. Empower an individual or a department to oversee alliance formation decisions

1.1.3.1. Making Alliances Fit

1.1.3.1.1. Corporate-level department coordinates all alliance-related activities

1.1.3.1.2. Dedicated alliance function

1.1.4. Implement an integrated and codified decision process

1.1.4.1. Smarter Alliance formation

1.1.4.1.1. Integrated decision process that involves actors on both business and corporate level

1.1.4.1.2. Process

1.1.4.1.3. Alliance Formation