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C.
Growth and Evolution: An Awareness of the Environment |
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Over time, both companies will change, mature, and grow. The external environment is also evolving and changing, often in unexpected directions. The alliance partners need to monitor these internal and external changes, see how they affect the partnership, and adjust accordingly. There is value in stability and consistency. However, there are clear instances when consistency (i.e., not being flexible and/or adapting to environmental changes) is not the appropriate course. |
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Successful alliances will adapt to a new environment. They will look for ways to enhance the value of the partnership, if it is in their best interest. This is where keen knowledge of your own company and your partner's becomes critical in being able to evolve or become stagnant. |
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Annual or semiannual reviews of the alliance project, as an entity in itself and as it relates to other internal projects and the external environment, can and do offer opportunities to make modifications or, if necessary, abandon the alliance in favor of an alternative approach or other projects. In any review, however, there must be effective reality checks built into the process. Change in direction for the sake of change is not productive. R&D projects generally have long time frames associated with them. Frequent changes in focus or project priority often lead to frustration and abandonment of the concept and positive initiative that was part of the alliance at the beginning. |
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D.
Project Priority Shift |
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As in many marriages, passion dissipates with time. The challenge to the alliance management team is to maintain the level of enthusiasm, commitment, and motivation, present at the beginning of the project, over the long-term. Along with frequent changes in focus and/or direction of the project, the other factor that can reduce any level of commitment is a downward shift in the priority of the alliance's project. |
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In most organizations, a downward shift in priority results in less commitment, less resources, and, more than likely, a delayed time line. This priority shift also sends negative messages throughout both organizations which, if intentional, are very effective and, if not, can be equally devastating. There may be very good reasons for a change in the priority of an alliance project within either partner. However, the change and the reasons for the change need to be clearly conveyed to both parties. In either case, the effect will probably be negative. |
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