Strategic Alliances - Need, Fit, Reach, Maturity

To continue from the previous post, 'strategic' alliances are relative. What is needed is a model to prioritize the existing and potential value to be derived from an investment in alliances. I've used the following approach in multiple environments with success - Need, Fit, Reach, and Maturity.

One important note - these items can be assessed via a simple scoring approach, or weighted based upon agreed upon executive management priorities. Also important to note that the weighting should consider the perspective of the partner as well, not just that of the firm.

1. Need: assess the scope and scale of the needs that can be addressed by growth of the alliance. Highest scores address each of the following:
- Company Need: Addresses a clear and immediate product or technological need as expressed by existing customers, or required to pursue new opportunities
- Product Need: Fills a product or technological hole, or extends basic product or architectural capabilities to improve alignment to identified market or customer opportunity
- Partner Need: Fills an existing hole in each other’s partner portfolio that is currently unsatisfied by other partnerships

2. Fit: Extent to which partner capabilities are complementary to the firm's capabilities. Highest scores address all of the following:
- Strategic Fit: in pursuit in common goals or aligned against common enemies
- Architectural Fit: consistent architectural base/philosophy
- Feature Fit: product integration does not make joint bids uncompetitive; road maps are not on collision course
- Market Fit: both companies can compete more effectively vs. common enemies
- Solution Fit: integrated products provide logical base relevant to vertical or functional solution strategy
- Customer Fit: percentage of existing customers using partner technology, and/or strong overlapping funnel

3. Reach: Assessment of the value of assets that extend internal capabilities. Highest scores address all of the following:
- Technology Reach: access to incremental pools of technical resources or expertise
- Market Reach: market presence, brand name awareness, market coverage/footprint, company size
- Customer Reach: access to, and knowledge of, buyers and influencers beyond those generally accessible via standard sales processes

4. Maturity: Assessment of the ability and effort required to execute on joint initiatives. Highest scores address all of the following:
- Organizational maturity: have FileNet & Partner had previous success with this type of relationship?
- Alliance Maturity: Presence of multiple, well established executive level relationships
- Product Maturity: State of current product integration, and investment required in order achieve partner’s desired level of platform support
- Solution Maturity: depth/breadth of partner awareness, and level of expertise around key joint initiatives
- Customer Maturity: quantity/quality of field engagement, existence of common customers and reference accounts

Once the assessment of each existing and potential alliance has been complete, prioritization of investment can be completed using a portfolio model that will be described in subsequent posts.