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Robert Porter Lynch’s featured article in the European Bus. Review
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What is Capability Building?

  • Comprehensive System of:
    • Skills,
    • Methodologies,
    • Tools,
  • Comprising the Key Building Blocks
     (“Capability Clusters”) that provide the ability, capacity, and power to enable a company with multiple alliances to:
    • Develop powerful strategies using alliances,
    • Increase the performance of each alliance
    • Maximize allianceportfolio synergy
    • Build support infrastructure to sustain alliance capability
  • Key Areas for Capability Building:
    • Strategic & Competitive Positioning
    • Operational Performance, Measures, & Rewards
    • Internal Infrastructure, Coordination & Support
  • Who is Alliance Capability Building for?
    • Alliance Capability Building is for companies where a significant amount of Revenue or Value is derived from Alliances
      • 20% (or more) of your revenue or profits are expected to come from alliances or joint ventures, or
      • 20% (or more) of the value you create for your customers will come from alliances (either supplier alliances, technology development alliances, marketing alliances, or service delivery alliances), or
      • multiple alliances (or a networked enterprise) is becoming a fundamental part of your business delivery structure
    • Purpose:
      • Develop Infrastructure & Systems to maintain High Performance over Long Term

Essential Components

  • 1) Develop Powerful Strategies
    using alliances
    • Value Chain Reengineering
    • Creating Competitive Advantage
    • Coopetition Alliances
    • Strategic Positioning within Alliance Networks
    • Scenario Mapping
  • 2) Maximize AlliancePortfolio
    • Corporate Portfolio Management
    • Alliance Repositioning and Restructuring
    • Information Systems Infrastructure
    • Coordination Across Internal Lines of Business
  • 3) Increase thePerformance of each
    • Utilization of Best Practices & Best Processes
    • Embrace Fast Cycle Time Management
    • Implementation of Breakthrough Innovation Processes
    • High Performance Team Selection and Training
  • 4) EstablishSupport  Infrastructure
    to Sustain Alliances
    • Core Team of Internal Experts
    • HR Selection & Career Pathing
    • Measurement, Feedback, and Diagnostic Systems
    • Transference of Alliance Learning throughout the Company

Value Proposition

  • Our ultimate value to your company is to create an infrastructure producing results:
    • Gain significant Strategic & Economic Value from your alliances
    • Select the Best Partners with whom to ally
    • Shorten the Time required to form an alliance
    • Increase the Success Rate of your alliances
    • Negotiate in a manner which positively impacts long term value & performance
    • Utilize Learnings from each alliance across the spectrum of corporate operations
    • Receive Maximum Performance from each alliance
    • Reduce the Risks and Increase the Rewards from alliance
    • Enable Management of Multiple Alliances
    • Become the Alliance Partner of Choice in your industry
    • Build a Strategic Infrastructure and Implementation Team

Do You Need Capability Building?

  • Recognizing the Symptoms: If your company is experiencing these conditions, a capability building program may be a worthwhile solution:
    • Portfolio of Alliances is Growing, but things are starting to get out of hand. The wide variety of alliances are starting to conflict with each other, business units are sometimes constructing alliances that are working at cross purposes.
    • Strategic Value of Alliances is becoming more important, but their performance is sporadic
    • Management of Multiple Alliances is becoming a head-ache, not enough people seem to have the skills and capabilities to make the alliances work well.
    • Network is expanding as alliances become an extension of your company, but there does not seem to be a good way to share the learning from any of the ventures through out the organization.
    • Developing Personnel to manage the alliances has been difficult at best, and a nightmare at worst.
    • Insufficient Follow-through after the deal makers get the contracts signed
    • Over-concern about Control is ultimately driving the alliance into a win-lose position where the other side seems to have little or no incentive anymore

What Process is Used for Implementation?

  • The Capability Clusters represent a full-scale Capability Building Program. However, the full-scale version is not necessarily applicable to all situations. Therefore, we can use a variety of different Rollout Options, depending upon your needs, circumstances, and demands.
  • Representative Set of Rollout Approaches:
    • Rollout Options:
      • Large System Change / Parallel Action  Option
      • Quick Results & Key Priorities Option
      • Incremental Pilot (start small, then expand into robust networks) Option
      • Deal-Driven Option
      • Performance-Driven / Problem Centered Option
      • Strategically-Driven / Portfolio Management Centered Option
      • Gap Analysis Option
      • Consensus Driven Option

Note: By focusing on the uniqueness of the each company and its specific rollout needs, we customize the Capability Clusters to fit specialized circumstances of each client.


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