In this fifth alliance fireside chat, Peter Simoons and Anoop Nathwani talk about the Alliance Lifecycle and the reasons why you need to follow an alliance lifecycle (it could be six steps, it could be seven steps, it could be eight steps) for improved alliance success.
The Alliance Lifecycle – Video transcript:
Peter: And we’re back in fireside chat number five. We are Anoop Nathwani and Peter Simoons. So welcome, everybody. Anoop, I have a question for you. We hear a lot about an alliance lifecycle. So what is it and why would I need one?
Anoop: Okay, Good question. Let’s, let’s take a little step in terms of, we hear a lot about the importance of driving alliances and partnerships, right. We hear a lot about and we’ve said it before, we hear a lot about high failure rates. So big opportunity, high failure rates. And we also know Peter, that those alliances people who follow a systemized framework and the right tools etc, are the alliances and partnering people who are going to create successful alliances moving on. Now when we talk about a systemized framework, the Alliance lifecycle is that systemized framework, and it’s a life cycle that has seven steps. Now, it could be six steps, it could be seven steps, it could be eight steps. But in general, it’s the seven steps that you will have in front of you. And it all looks like it’s a life cycle that ends at step number seven, etc. But actually what you need to think about you need to revisit this life cycle right the way through your process. So if necessary, when you’re at step four, go back to step one. If you’re at steps five, go back to step three, etc, say it’s not just a cyclical thing, and it finishes in step seven, you need to kind of relook at this very, very frequently in terms of what you’re doing. But you have to start with strategy and we always say, you have to start with strategy that’s important.
Peter: Okay, so when it first started to talk about the process and life cycle I thought, well, that feels a little bit cumbersome. Do I need to follow the whole process? Or can I see it as a toolbox where I pick the right moments at the right time? in building my Alliance?
Anoop: I think it’s both, it is a process that you should follow sequentially. So if you’re starting off with a set of new alliances, you have to start at phase one. You can’t just go into analysis selection with your strategy and don’t support it. You’re missing a trick. So you should see it as sequential. But within each one of these steps, there are toolboxes. There’s a set of tools that you can actually use to help you on your journey.
Peter: That sounds good. And if I understood you well, if I follow the Alliance lifecycle I have a bigger chance or a higher chance on successful alliances, then if I don’t follow it,
Anoop: Absolutely, and I think these are important words, Peter, you will have a higher chance of success of achieving 80 to 100% success rates than we know of companies who follow this. And they do have a much, much higher success rate with failure is very high anywhere from 50 to 75%. But with this, you have a higher chance, it’s not a guarantee. It’s not a guarantee. And the reason why we say it’s not a guarantee is because there are a lot of elements that you need to think about. And we can talk about that in future fireside chats, a lot of elements that actually you can have a fantastic framework and follow a fantastic framework, but there’s certain things that don’t allow you to to really follow this framework rigorously because of external elements. That’s a problem. If your alliance partners themselves, don’t see this and don’t follow it as well. Guess what, you’re going to struggle as well. So we say it gives you a higher probability, but it’s not a guaranteed success.
Peter: Excellent. Well, thank you for clarifying the need for an alliance lifecycle Anoop.
Anoop: Pleasure. Thank you, Peter.