Business Alliance Agreement Means

BCBSF also generates qualitative measures of the alliance`s progress through regular surveys carried out by each partner`s employees. At the beginning of an alliance, the company and its partner together define behaviors that they consider an indication of a good relationship. BCBSF has developed a survey manual that allows alliance managers of both partners to select questions relevant to their situation. A question about measuring trust and communication invites staff, on a scale of 1 to 5, to “How often are we surprised to learn of a plot taken by our partner that concerns us?” Many modern companies outsource their accounting entirely to strategic partners. Strategic financial partnerships are useful because, for example, if you use a dedicated company for accounting, you can monitor your revenue more carefully than you can do internally. Because finance is essential for any business, strategic financial partnerships are among the most important relationships you can have. Companies darken because they have important differences that they want to exploit – markets, customers, know-how, processes and cultures. Most leaders of a new alliance take about two months to forget this. But within months, each company`s unique skills had become sources of resentment rather than success factors. A year after the Alliance, the partners barely spoke to each other.

The company, considered “agile”, was now considered “sloppy and ruthless”. His partner was no longer “process-oriented and quality-oriented,” but a “bureaucratic dinosaur” who couldn`t make a decision. In two years, the alliance had been dissolved. Referral agreements are probably the most fundamental and informal type of strategic alliance, but strategic marketing partnerships can be much more complex. Similar experiences have led some companies to make the day-to-day management of internal elements a central part of their alliance management process. For example, based on its own experience of the timing effects of insufficient internal orientation, Aventis formalized a series of meetings with internal stakeholders – prior to all joint governance meetings with partners – during which internal differences were brought to the surface and then grounded without it being unpleasant in front of partners. Adopting this way of thinking frees up time and energy (otherwise used to determine who is responsible or who is responsible) to diagnose problems productively, for example. B to what extent a missed milestone in the diversion of resources by intervention priorities has resulted. The absence of fingers also helps prevent allies from depriving each other of defensive information — information such as meaningful test data that may be important to their common success — for fear that it will be used as evidence of incompetence or poor performance. This does not mean that liability issues will never arise, but only that they will be dealt with more effectively after the parties have considered together all the factors that contributed to the problem.

These surveys offer an examination of the company`s alliance relationships. They also ensure that partners regularly and explicitly discuss their mutual expectations, thus helping to avoid alliance failure. When drugmaker Aventis and biotech company Millennium Pharmaceuticals formed an alliance, the companies jointly established a list of problem-solving protocols, including “When we discuss challenges, we will present possible solutions, not just problems.” Adherence to protocols helped partners quickly achieve their goal.