Monday, April 26, 2010

Breaking Up is Hard to Do

According to the 2009 State of Alliance Management Survey of 430 companies, alliances success rates are improving, but still less than optimal at a reported 57% . Our goal as alliance managers is to increase our success rates and make sure that our alliances are successful. However, sometimes no matter what you do, an alliance may come to an end - often for reasons completely out of your control - market forces, a company strategy change, pressures from a down economy, among other factors, can all conspire to precipitate a break up.

Breaking up is indeed hard to do, but it doesn't have to be excessively painful, and it can be done in a way that preserves the relationship and keeps the door open for future joint endeavors.

How?

Well, this might seem counter-intuitive, but the best time to plan for the break up is during the "coming together" process. Why? Because that is typically the time of the greatest goodwill. Both parties want things to work, both are operating in good faith. Both parties are relatively positive and happy. That's the perfect time to have the "exit clause" discussion. You are more likely to discuss sticky separation issues sans the emotion.

Next up - what should the exit clause contain?

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