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National Directors Conference Tuesday September 14th 10:30 - 11:45 a.m. Using the logic of alliance and collaboration to grow and thrive in a changing business environment Author · Consultant · Speaker
I. Old myths vs. new realities · Getting ahead means getting bigger · The best products always do best in the marketplace · Markets always find a point of equilibrium · Successful competitors win every battle · For my business to win, yours must loose
II. The case for collaboration · Business is seldom a zero sum game played only once · In the long run, strategies that do-well-for-yourself
outperform ones aimed at beating-the- · Sometimes the best way to do well is to let others, including competitors, succeed · Your fortune may be more interdependent on your competitor's than it appears · Competition is increasingly among networks and alliances
of companies rather than only · Companies don't only compete, they also complement · A business complements yours if customers value what
you have more when they have · Companies grow markets through complementing each other (win-win competition) · Companies divide markets by competing (lose-lose competition) · Cooperative efforts create value by sharing: - risks, costs, knowledge, relationships · Collaboration with competitors provides: - benchmarks to guide your ongoing improvement - insights into how they will behave if the alliance ends - standards that can help grow the market - possibilities to create complementary ventures that can increase demand · The existing legal and regulatory framework sets
the ground rules for collaboration with · Sustainable collaboration builds markets by adding value to customers · In the short run collaboration is a fast way to acquire new products, markets and skills · In the long run collaboration provides: - opportunities to learn from your partner - a trial marriage
III. Making alliances work · Have clear short and long-run objectives · Know what you have to offer and what you need · Carefully understand the objectives of your partner · Neither party should be able to accomplish alone what both can together · Continually monitor how changes in the market change everyone's objectives · Establish and monitor specific performance requirements · Avoid the "wallflower" syndrome · Avoid one-sided relationships - providing a beachhead
for your competitor to steal your · Define off-limits and other ground-rules · Avoid "love at first sight" - conduct a phased-in courtship - walk before you run - start small with limited joint activities - make mid-course corrections - build the relationship on successes · Collaboration involves both sides playing the roles
of teacher and learner to share · Add bandwidth (multiple points of contact) to the relationship · Long-lasting partnerships manage the relationship, not just the deal · Cement the relationship with integrity, mutual respect, and willingness to give-and-take · Partners show tangible signs of long-term commitment through the resources they devote to the relationship · Understand your competitive posture and that of your partner's |
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