STRATEGIC ALLIANCE

Here are some of the critical variables

you will want to keep in mind in selecting a partner:

Philosophy of doing business-You need to be able to work well together in terms of your relationship with your joint customer so a similar business philosophy is important.

Decision-making structure - will often have to be made quickly once a project is underway so you need to make sure you understand your partner’s decision-making process.

Complementarity of skills - One of your primary reasons for being in a partnership is to supplement the skills your firm has. You need to be clear on your own strengths and ensure that your partner has strengths in appropriate complementary, rather than identical, areas.

Respect for each other’s expertise-To avoid the common fear that you will be creating a more effective competitor by partnering with another firm, it is important to select partners who clearly respect your specialized expertise and have no intentions of trying to replicate it.

Specification of team members- You will want to be sure that you are working with partners who will honour agreements made about the assignment of particular persons, rather than feeling free to substitute any staff member they have who happens to be available.

Project management skills-Being profitable abroad requires careful management of finances and person hours because you will want to team up with partners who have already developed excellent project management systems.