Forming a strategic alliance with a
few well-chosen vendors means
having someone in your corner when you need it the most.
“When you plan to have multiple transactions with a company, signing a contract is a good place to start, but to really benefit from an association with that
company, you should consider forming a
strategic alliance,” says June Stein, president of Principal Technical Services.
“When you sign a contract, you make an
agreement; but when you form a strategic alliance, you build a relationship.”
Smart Business spoke with Stein
about the benefits of forming strategic
alliances and what to look for in a strategic alliance partner.
What’s the difference between a contract
and a strategic alliance?
A contract or Master Service Agreement
(MSA) is just a piece of paper that outlines terms and conditions under which a
vendor sells something to a customer. A
strategic alliance is so much more than
that. It’s a living, breathing relationship
that evolves over time as companies in
the alliance work together for mutual
benefit. A strategic alliance partner isn’t
just interested in selling you something; a
true ally is interested in understanding
your business and helping you to achieve
your business goals.
Not all business connections need to
be strategic alliances. If you need a new
copier, you simply call your vendor and
order a copier at an agreed-upon price.
But when you’re shopping for professional services, it’s not as simple as
looking up a model number and placing
an order. You’re in the market for people with specific qualifications who will
be essential to the smooth operation of
your company. A strategic alliance partner has a vested interest in your success and will make it a priority to provide exactly the type of personnel you
need.
What are the key elements of a strategic
alliance?
A truly beneficial strategic alliance
requires communication and trust. You
need to be willing to disclose specific
information about your company to
your strategic alliance partner, and to
do that you need to be able to trust that
the information you disclose will not be
shared with your competitors.
You should invite your strategic
alliance partners to your shareholder
meetings and holiday parties. You
should schedule regular meetings with
upper management. The more information you communicate to them, the better they’ll be able to anticipate your
needs and provide the right services in
a timely fashion.
What should companies look for in a strategic alliance partner?
I’ll tell you what not to look for — the lowest price. I’m not saying that price
isn’t important, but the lowest bidder
isn’t necessarily going to get you the best
products and services.
What you do want to look for are qualifications such as years of experience in
your business niche, number of clients
in your business niche and favorable
recommendations from those clients.
You want a partner who’s a real player in
the industry — one with a history of providing a large volume of exactly the type
of services you’re looking for.
When choosing a strategic alliance
partner, you also need to consider qualifications that aren’t so easy to measure.
Strong ethics are a must, since your partner will be entrusted with sensitive
information. Also, think about the personnel you’ll be dealing with at the vendor. Will you talk to the same person all
the time, or will your needs be handled
by several individuals, each with only a
partial understanding of your situation?
Continuity is key.
What are the advantages of forming a
strategic alliance?
The advantage of having a partner that
can understand and even anticipate your
needs is huge. Some strategic alliance
partners may even be able to help you
better define your needs. They often
work in your industry on a broader scale
and have useful (nonproprietary) information to share. You also need to
remember that a strategic alliance is a
relationship — not just between companies but between people working for
those companies. Someone you have a
relationship with is more likely to work
hard on your behalf and put your needs
on the top of his to-do list.
JUNE STEIN is president of Principal Technical Services in
Irvine. Reach her at [email protected] or (888) 787-3711,
ext. 21.
