“We created an alliance, but we’re not seeing the results we expected.”
It is frustrating when an alliance that began with optimism and enthusiasm fails to deliver the hoped-for results. It is even more difficult when the managers involved struggle to identify what is going wrong. This situation is more common than many assume, and the underlying issues are often hard to pinpoint. Still, four recurring causes tend to stand out.
1. Strategy
The first question to ask is whether the alliance fits into a clear, well-considered strategy. When exploring options for growth, organisations should weigh whether ambitions are best served by organic expansion, acquisitions, supplier relationships, or partnerships. Only if there is a strategic rationale for partnering does an alliance make sense. Without that alignment, expectations and outcomes will rarely match.
2. Type of alliance
Even if the strategic reasoning is sound, the choice of alliance model can make or break the outcome. An organisation seeking innovation should pursue alliances designed for joint innovation, while one focused on operational efficiency may require a different structure altogether. A mismatch between the type of alliance and the actual ambition almost guarantees disappointment.
3. Partner selection
Once the strategic need and type of alliance are clear, the next step is partner selection. Was this done systematically and with rigour? Effective selection involves moving from a broad longlist to a carefully considered shortlist, based on reputation, capabilities, and an understanding of the organisation’s culture, strategy and operational alignment. A hasty or superficial choice often leads to underperformance later.
4. Alliance management
Finally, alliances succeed or fail on the strength of their management. Alliance management is not a side task but a dedicated discipline, comparable to project management or business development. Skilled alliance managers should be involved from the very beginning, ensuring ambitions are realistic, risks and opportunities are understood, and decision-making is structured to deliver results over time. Treating alliances as just another operational function almost always undermines their potential.
Where to begin
If an alliance is not performing, the first step is analysis: carefully diagnosing where the issue lies. With the right preparation and professional execution, alliances can become powerful vehicles to achieve strategic ambitions faster and more effectively.