Putting “Strategy” into your Strategic Alliances

“Colin” desperately wanted to expand his computer consulting business. But rushing headlong into a deal with Themis Consulting nearly wiped him out. Themis, a larger company, performed similar services to Colin. Colin had clients and prospects in Boston that Themis coveted. So the two agreed to “merge”: Colin moved to Boston (on his own dime) to develop that market, which he would share with Themis; Themis would provide the presence and the “back end” help for Colin’s clientele in New York. Six months later: the Boston venture proved unprofitable and Themis’s impersonal service alienated Colin’s clients. Faced with a soured relationship and rebuilding his business, Colin whined, “Everyone else brags about their strategic alliances. Where did mine go wrong?” Entrepreneurs are flocking to the “strategic alliance” bandwagon. But few comprehend what a strategic alliance really is, much less how to navigate their way through one successfully. A successful strategic alliance must have a sound foundation underpinning each of its four key considerations: form, function, finance, and fights. Form The different forms of business relationships —…