Major corporations worldwide have formed strategic alliances to
improve their competitive edge in the global economy. Companies like
Pfizer, MCI Worldcom, and Motorola form alliances for specific
projects or purposes to accomplish a short or long-term goal. These
alliances allow a merging of talents, assets, and skills. They may
lead to partnerships and mergers but usually form to complete a
single project. You may not be the "partner of choice" for these
giants, but you can capitalize on this business strategy for
long-term growth.
Knowledge is Power
Information can help you create a competitive advantage. In the
Dallas Federal Reserve Bank's 1999 Annual Report, president Bob McTeer,
Ph.D. said this, "knowledge is more important to economic success than
money or machinery."
www.dallasfed.org
Jim Blassingame, The Small Business Advocate, agrees. In his article,
"The Century of the Entrepreneur," he identifies the three components of
what he calls "the new leverage model for entrepreneurs in the 21st
century": networking, creating strategic alliances, and technology.
www.smallbusinessadvocate.com (Blassingame was included in Fortune
Small Business magazine in "Power 30," a list of the most influential
voices for small business.)
Sharing knowledge sounds good, but how can you implement such a
strategy? Begin by focusing on an exchange of ideas with trusted
associates. Form your own strategic alliance. Think of it as a "master
mind group."
The phenomenon of this alliance is, in part, cumulative wisdom and
knowledge. Those in the group draw upon their unique experiences and
specialized knowledge to help each other in a spirit of perfect harmony.
When each can draw upon the collective brainpower of the group, he or
she is greatly strengthened.
Add to this the spiritual dimension, or the force of synergism, and
you see the added value of a strategic alliance. It is this exchange of
information and ideas in a trusting environment that sometimes leads to
"magical," inspirational breakthroughs.
On a cross-country flight from Los Angeles to Baltimore, I became
engaged in a stimulating conversation about strategic alliances with a
complete stranger. He told me about a meeting he had attended in Austin,
TX where the principle worked perfectly. He and a few colleagues in the
medical profession had met with the group to discuss a start-up
business. In the group were men and women who had specialized knowledge
in finance, specifically the stock market, technical expertise in
electronic commerce, and other areas of business. Each had a different
specialty to bring to bear on their topic of interest. They were going
to continue to meet at specified times to develop the concept. He was
invigorated by their discussions and anticipated a successful venture.
Objectives
Alliances are formed for any number of reasons. If you are a trainer
or consultant, you may want to get fresh ideas for sources of capital,
to expand your network, to break into new markets or to reach personal
goals. The goals of those in an alliance must be clear at the outset.
The group may focus on individual or joint objectives, such as
developing a specific product or program, gaining a specific account or
contract, or developing certain individual skills. The commitment level
of its members will greatly affect the success of the group.
When forming a strategic alliance carefully select the people with
whom you will work. You need individuals with varying talents. For
example, if you do not have a large company, a good mix might include a
financial planner, a marketing expert, an information management
specialist, a salesperson, as well as a trainer and/or consultant.
Participants
A couple can form a very effective strategic alliance when aiming for
a common visionary outcome. For other groups, an uneven number of
people, such as 3, 5, or 7, is more effective than an even number. The
number of participants is not as important as is their ability to work
in harmony with all the other participants. This is true even if the
objective is primarily to share assets or resources, such as office
space or expensive equipment.
For an alliance to survive, there must be a high level of trust among
the participants. The larger the group, the harder it is to be in
harmony on a continuing basis. When there is good will and harmony,
everyone gains. When envy and resentment enter in, harmony fades and the
group will likely be destroyed.
To be most effective, members of the group must expect results from
their participation, in spite of challenges and frustrations. A positive
mental attitude indicates that individuals are predisposed to think
ideas are workable. Negative thinkers focus on why ideas will not work,
rather than on trying to find ways to make them work. More energy is
required to keep moving forward.
Benefits
The potential benefits from participating in a strategic alliance are
enormous. At the very least, you will have
-
A safe environment for sharing ideas
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Other minds focused for a period of time on your
specific innovative ideas or challenges
-
A shortened learning curve when engaged in new
ventures
Results often take time and effort. The alliance is not a quick-fix
solution to business problems. Remaining focused on objectives, and
persisting in the face of challenges are key elements of the process.
Develop a sense of anticipation; expect to get results. Participation in
a strategic alliance will lead to increased self-confidence and "know
how." When a joint venture or partnership results, sound management
practices, including record keeping, should be instituted immediately.
Borrow from the giants like Pfiser, MCI Worldcom, and Motorola. Adapt
and modify systems that serve them well.
Start where you are now; join forces with other forward-thinking
individuals who can add to your knowledge base. Use the force of a
strategic alliance to claim the competitive edge. Ultimately, the result
may be the realization of your dream.
Printed in Dallas, TX, ASTD chapter
Perspectives, November 2000.
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