Successful Strategic Alliances: How to turn around alliances when things go wrong

Bad things do happen to good alliances. So how you can minimize the risk of alliance failure and turn around alliances
when they show signs of breaking down.
Understand why alliances fail. Alliances typically fail for a combination of three reasons. The first reason is lack of
interest. If an alliance isnt connected in a meaningful way to a long-term strategic goal, and therefore has the active
support from senior management, the momentum and resources to sustain it will inevitably be re-deployed. Aeroplan is in
the enviable position of managing dozens of successful national and international alliances. The core reason, according to
the companys Vice-President of Partnerships, David Houston, is that Aeroplan works hard with alliance partners to
constantly demonstrate how we help move the needle on their priorities whether thats building revenue, generating
innovation or getting a better understanding of key markets. The second reason alliances fail is far more common: theres
a lack of agreement on ways to measure and validate alliance success. When this happens, champions from all
participating organizations will distance themselves from the partnership because they are not confident they can quantify
or justify the resources required to meet their alliance obligations. Finally, the most common reason that alliances fail is
because the complex relationships and shared commitments are mismanaged. This happens because the time and effort
required to sustain the partnership is drastically underestimated. As a result, partners dont build an adequate
infrastructure e.g. teams with well-defined responsibilities, processes and budgets to identify points of failure.
Identify failure points. There are several common signs that alliance champions and managers should always watch for
as indicators that the alliance is fraying at the edges. The first is interpersonal disengagement. For instance, people
consistently avoiding calls or emails without an apparent reason. According to Greg Ferris, VP, Business Development at
Delego Software, which is always managing over 40 partners, When alliance partners start shying away from revealing
how they feel about the business relationship, it is time to dig deeper because there is a problem. The second sign
occurs at the team level. Such decay shows itself when meetings with partners are postponed, cancelled or become
dysfunctional sessions where the focus is solely on addressing irrelevant issues and process minutia. The third is
organizational disengagement when the obligations, as outlined in the partnership agreement, are frequently ignored,
neglected or openly ridiculed by those who had supported the alliance.
Get the alliance back on track. Regardless of whether the alliance has gone dormant or has completely disintegrated,
getting it back on track is not a grass roots initiative. That is, garnering support from previous alliance leaders or
stakeholders is not enough for partner companies to renew commitment to the alliance. In fact, the team who had held
responsibility for implementing the alliance often needs to be refreshed in order to allow the alliance to be thought of as
newly credible. According to Simon Brightman of the Toronto-based Product Accelerators, Product innovation can serve
as an important focal point that allows companies to re-direct energies on a common goal with very tangible outputs.
While this wont by itself turn around an alliance, it can get key players back to the table. Finally, to achieve a renewed
alliance means that the partners need to adopt a more structured approach to governance.
Install a new governance structure. Once you have the alliance back on track, it requires an enhanced level of
administration to sustain it. That means introducing a revitalized governance structure to oversee its management.That
structure should include an Executive Steering Committee, Reporting Committees and new Alliance Managers. The
Executive Steering Committee consists of senior executives from all partner companies whose joint mandate is to
ensure the health of the strategic alliance. This committee should include key stakeholders such as the alliance
champions, alliance managers and Chairs of the Reporting Committees. In tandem, Executive Steering Committees
provides strategic direction and operational oversight to the alliance, evaluate their performance, recommend corrective
action, and act as the point of escalation for issues that cannot be resolved at the management level. At the same time,
Reporting Committees each have their own mandate such as marketing, operations or technology integration. These
committees are responsible for keeping the Executive Steering Committee informed of their progress as well as escalating
any issues when teams cannot successfully address an impasse. The final lynch pin for a renewed alliance structure is
the alliance manager. These professionals are responsible for the day-to-day management of the alliance. They are the
glue between the Executive Steering Committee and the Reporting Committees. As such they identify early warning
signals and failure points. They also develop ways to address the reasons behind why an alliance is breaking down.

Successful Strategic Alliances: How to turn around alliances when things go wrong
Bad things do happen to good alliances. So how you can minimize the risk of alliance failure and turn around alliances
when they show signs of breaking down.
Understand why alliances fail. Alliances typically fail for a combination of three reasons. The first reason is lack of
interest. If an alliance isnt connected in a meaningful way to a long-term strategic goal, and therefore has the active
support from senior management, the momentum and resources to sustain it will inevitably be re-deployed. Aeroplan is in
the enviable position of managing dozens of successful national and international alliances. The core reason, according to

the companys Vice-President of Partnerships, David Houston, is that Aeroplan works hard with alliance partners to
constantly demonstrate how we help move the needle on their priorities whether thats building revenue, generating
innovation or getting a better understanding of key markets. The second reason alliances fail is far more common: theres
a lack of agreement on ways to measure and validate alliance success. When this happens, champions from all
participating organizations will distance themselves from the partnership because they are not confident they can quantify
or justify the resources required to meet their alliance obligations. Finally, the most common reason that alliances fail is
because the complex relationships and shared commitments are mismanaged. This happens because the time and effort
required to sustain the partnership is drastically underestimated. As a result, partners dont build an adequate
infrastructure e.g. teams with well-defined responsibilities, processes and budgets to identify points of failure.
Identify failure points. There are several common signs that alliance champions and managers should always watch for
as indicators that the alliance is fraying at the edges. The first is interpersonal disengagement. For instance, people
consistently avoiding calls or emails without an apparent reason. According to Greg Ferris, VP, Business Development at
Delego Software, which is always managing over 40 partners, When alliance partners start shying away from revealing
how they feel about the business relationship, it is time to dig deeper because there is a problem. The second sign
occurs at the team level. Such decay shows itself when meetings with partners are postponed, cancelled or become
dysfunctional sessions where the focus is solely on addressing irrelevant issues and process minutia. The third is
organizational disengagement when the obligations, as outlined in the partnership agreement, are frequently ignored,
neglected or openly ridiculed by those who had supported the alliance.
Get the alliance back on track. Regardless of whether the alliance has gone dormant or has completely disintegrated,
getting it back on track is not a grass roots initiative. That is, garnering support from previous alliance leaders or
stakeholders is not enough for partner companies to renew commitment to the alliance. In fact, the team who had held
responsibility for implementing the alliance often needs to be refreshed in order to allow the alliance to be thought of as
newly credible. According to Simon Brightman of the Toronto-based Product Accelerators, Product innovation can serve
as an important focal point that allows companies to re-direct energies on a common goal with very tangible outputs.
While this wont by itself turn around an alliance, it can get key players back to the table. Finally, to achieve a renewed
alliance means that the partners need to adopt a more structured approach to governance.
Install a new governance structure. Once you have the alliance back on track, it requires an enhanced level of
administration to sustain it. That means introducing a revitalized governance structure to oversee its management.That
structure should include an Executive Steering Committee, Reporting Committees and new Alliance Managers. The
Executive Steering Committee consists of senior executives from all partner companies whose joint mandate is to
ensure the health of the strategic alliance. This committee should include key stakeholders such as the alliance
champions, alliance managers and Chairs of the Reporting Committees. In tandem, Executive Steering Committees
provides strategic direction and operational oversight to the alliance, evaluate their performance, recommend corrective
action, and act as the point of escalation for issues that cannot be resolved at the management level. At the same time,
Reporting Committees each have their own mandate such as marketing, operations or technology integration. These
committees are responsible for keeping the Executive Steering Committee informed of their progress as well as escalating
any issues when teams cannot successfully address an impasse. The final lynch pin for a renewed alliance structure is
the alliance manager. These professionals are responsible for the day-to-day management of the alliance. They are the
glue between the Executive Steering Committee and the Reporting Committees. As such they identify early warning
signals and failure points. They also develop ways to address the reasons behind why an alliance is breaking down.

Successful Strategic Alliances: How to turn around alliances when things go wrong
Bad things do happen to good alliances. So how you can minimize the risk of alliance failure and turn around alliances
when they show signs of breaking down.
Understand why alliances fail. Alliances typically fail for a combination of three reasons. The first reason is lack of
interest. If an alliance isnt connected in a meaningful way to a long-term strategic goal, and therefore has the active
support from senior management, the momentum and resources to sustain it will inevitably be re-deployed. Aeroplan is in
the enviable position of managing dozens of successful national and international alliances. The core reason, according to
the companys Vice-President of Partnerships, David Houston, is that Aeroplan works hard with alliance partners to
constantly demonstrate how we help move the needle on their priorities whether thats building revenue, generating
innovation or getting a better understanding of key markets. The second reason alliances fail is far more common: theres
a lack of agreement on ways to measure and validate alliance success. When this happens, champions from all
participating organizations will distance themselves from the partnership because they are not confident they can quantify
or justify the resources required to meet their alliance obligations. Finally, the most common reason that alliances fail is
because the complex relationships and shared commitments are mismanaged. This happens because the time and effort
required to sustain the partnership is drastically underestimated. As a result, partners dont build an adequate
infrastructure e.g. teams with well-defined responsibilities, processes and budgets to identify points of failure.

Identify failure points. There are several common signs that alliance champions and managers should always watch for
as indicators that the alliance is fraying at the edges. The first is interpersonal disengagement. For instance, people
consistently avoiding calls or emails without an apparent reason. According to Greg Ferris, VP, Business Development at
Delego Software, which is always managing over 40 partners, When alliance partners start shying away from revealing
how they feel about the business relationship, it is time to dig deeper because there is a problem. The second sign
occurs at the team level. Such decay shows itself when meetings with partners are postponed, cancelled or become
dysfunctional sessions where the focus is solely on addressing irrelevant issues and process minutia. The third is
organizational disengagement when the obligations, as outlined in the partnership agreement, are frequently ignored,
neglected or openly ridiculed by those who had supported the alliance.
Get the alliance back on track. Regardless of whether the alliance has gone dormant or has completely disintegrated,
getting it back on track is not a grass roots initiative. That is, garnering support from previous alliance leaders or
stakeholders is not enough for partner companies to renew commitment to the alliance. In fact, the team who had held
responsibility for implementing the alliance often needs to be refreshed in order to allow the alliance to be thought of as
newly credible. According to Simon Brightman of the Toronto-based Product Accelerators, Product innovation can serve
as an important focal point that allows companies to re-direct energies on a common goal with very tangible outputs.
While this wont by itself turn around an alliance, it can get key players back to the table. Finally, to achieve a renewed
alliance means that the partners need to adopt a more structured approach to governance.
Install a new governance structure. Once you have the alliance back on track, it requires an enhanced level of
administration to sustain it. That means introducing a revitalized governance structure to oversee its management.That
structure should include an Executive Steering Committee, Reporting Committees and new Alliance Managers. The
Executive Steering Committee consists of senior executives from all partner companies whose joint mandate is to
ensure the health of the strategic alliance. This committee should include key stakeholders such as the alliance
champions, alliance managers and Chairs of the Reporting Committees. In tandem, Executive Steering Committees
provides strategic direction and operational oversight to the alliance, evaluate their performance, recommend corrective
action, and act as the point of escalation for issues that cannot be resolved at the management level. At the same time,
Reporting Committees each have their own mandate such as marketing, operations or technology integration. These
committees are responsible for keeping the Executive Steering Committee informed of their progress as well as escalating
any issues when teams cannot successfully address an impasse. The final lynch pin for a renewed alliance structure is
the alliance manager. These professionals are responsible for the day-to-day management of the alliance. They are the
glue between the Executive Steering Committee and the Reporting Committees. As such they identify early warning
signals and failure points. They also develop ways to address the reasons behind why an alliance is breaking down.

Successful Strategic Alliances: How to turn around alliances when things go wrong
Bad things do happen to good alliances. So how you can minimize the risk of alliance failure and turn around alliances
when they show signs of breaking down.
Understand why alliances fail. Alliances typically fail for a combination of three reasons. The first reason is lack of
interest. If an alliance isnt connected in a meaningful way to a long-term strategic goal, and therefore has the active
support from senior management, the momentum and resources to sustain it will inevitably be re-deployed. Aeroplan is in
the enviable position of managing dozens of successful national and international alliances. The core reason, according to
the companys Vice-President of Partnerships, David Houston, is that Aeroplan works hard with alliance partners to
constantly demonstrate how we help move the needle on their priorities whether thats building revenue, generating
innovation or getting a better understanding of key markets. The second reason alliances fail is far more common: theres
a lack of agreement on ways to measure and validate alliance success. When this happens, champions from all
participating organizations will distance themselves from the partnership because they are not confident they can quantify
or justify the resources required to meet their alliance obligations. Finally, the most common reason that alliances fail is
because the complex relationships and shared commitments are mismanaged. This happens because the time and effort
required to sustain the partnership is drastically underestimated. As a result, partners dont build an adequate
infrastructure e.g. teams with well-defined responsibilities, processes and budgets to identify points of failure.
Identify failure points. There are several common signs that alliance champions and managers should always watch for
as indicators that the alliance is fraying at the edges. The first is interpersonal disengagement. For instance, people
consistently avoiding calls or emails without an apparent reason. According to Greg Ferris, VP, Business Development at
Delego Software, which is always managing over 40 partners, When alliance partners start shying away from revealing
how they feel about the business relationship, it is time to dig deeper because there is a problem. The second sign
occurs at the team level. Such decay shows itself when meetings with partners are postponed, cancelled or become
dysfunctional sessions where the focus is solely on addressing irrelevant issues and process minutia. The third is

organizational disengagement when the obligations, as outlined in the partnership agreement, are frequently ignored,
neglected or openly ridiculed by those who had supported the alliance.
Get the alliance back on track. Regardless of whether the alliance has gone dormant or has completely disintegrated,
getting it back on track is not a grass roots initiative. That is, garnering support from previous alliance leaders or
stakeholders is not enough for partner companies to renew commitment to the alliance. In fact, the team who had held
responsibility for implementing the alliance often needs to be refreshed in order to allow the alliance to be thought of as
newly credible. According to Simon Brightman of the Toronto-based Product Accelerators, Product innovation can serve
as an important focal point that allows companies to re-direct energies on a common goal with very tangible outputs.
While this wont by itself turn around an alliance, it can get key players back to the table. Finally, to achieve a renewed
alliance means that the partners need to adopt a more structured approach to governance.
Install a new governance structure. Once you have the alliance back on track, it requires an enhanced level of
administration to sustain it. That means introducing a revitalized governance structure to oversee its management.That
structure should include an Executive Steering Committee, Reporting Committees and new Alliance Managers. The
Executive Steering Committee consists of senior executives from all partner companies whose joint mandate is to
ensure the health of the strategic alliance. This committee should include key stakeholders such as the alliance
champions, alliance managers and Chairs of the Reporting Committees. In tandem, Executive Steering Committees
provides strategic direction and operational oversight to the alliance, evaluate their performance, recommend corrective
action, and act as the point of escalation for issues that cannot be resolved at the management level. At the same time,
Reporting Committees each have their own mandate such as marketing, operations or technology integration. These
committees are responsible for keeping the Executive Steering Committee informed of their progress as well as escalating
any issues when teams cannot successfully address an impasse. The final lynch pin for a renewed alliance structure is
the alliance manager. These professionals are responsible for the day-to-day management of the alliance. They are the
glue between the Executive Steering Committee and the Reporting Committees. As such they identify early warning
signals and failure points. They also develop ways to address the reasons behind why an alliance is breaking down.