As businesses seek opportunities to pivot and rapidly capture new market opportunities, joint ventures and strategic alliances are becoming more important venues for CEOs. However, the success rate of partnerships can be low, as the joint models require more communication commitment to build trust, more rigorous planning to drive collaboration, and more forward-looking structure to form equitable risk-sharing.
There are five key questions you should be addressing:
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Factors for achieving a successful joint venture journey
Joint ventures, if done well, can lead to outperformance and competitive advantage. Nevertheless, these rewards can be accompanied by high risks. Constant vigilance and significant commitment from the senior leaders of each parent is necessary to maintain rigorous, professional end-to-end execution. Despite the fact that there is no “silver bullet” to help facilitate the success of an alliance, there are several factors that can help.