Achieving the Impossible Through Partnerships and Alliances Shirley Payne & Martha Sites University of Virginia 2006 EDUCAUSE Conference October 9 th,

Achieving the Impossible Through Partnerships and Alliances

Shirley Payne & Martha SitesUniversity of Virginia

2006 EDUCAUSE ConferenceOctober 9th, 2006

Copyright Shirley Payne and Martha Sites; 2006. This work is the intellectual property of the authors. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

Agenda

Definitions Creating Partnerships Case Study 1 Maintaining Partnerships Case Study 2 Success Factors Wrap-up

DEFINITIONSDEFINITIONS

Alliances / Partnerships are…

“a unique organizational structure to enable co-operation between companies”

Financial Times, May 9, 2000

“collaborative relationships between two or more firms with the intent of accomplishing mutually compatible goals that would be difficult for each to achieve alone.”

Alliance Management: The Journey Towards Partnerships, Robert Spekman

Characteristics…

Strategic, not tactical Focused on long-range goals and major

economic benefits Features:

tight linkages vested interests high level support cooperation and collaboration

Types…

Government Entities

Non-profits Internal Units

Business

Higher Ed

Higher Ed

CREATING PARTNERSHIPSCREATING PARTNERSHIPS

Strategic Development Partner Assessment Contract Negotiations Control/Implementation

Creating Successful Partnerships

Source: from the works of Robert Spekman

Strategic Development

StrategicDevelopment

Driving Force

Clearly Defined Priorities Ability To Articulate Goals

Partner Assessment


PartnerAssessment

Same goals?Same values?Past history?Alliance experience?Respect?Expectations?

Partnership Foundation

Special Challenges…

Complex procurement laws and processes

Legislative and public scrutiny

Delicate balance between institutions’ open culture and corporations’ tendency toward secrecy

Negotiations


PartnerAssessment

Negotiations

Success MeasuresRightsResponsibilitiesMaximize Strengths

Achieve Balance

Avoid Contract Paralysis

ScopePurpose and VisionExpected BenefitsCommitmentsManagement StructureProblem Resolution Process

Control / Implementation


PartnerAssessment

Negotiations

StructureProcesses

Increase Stability

Control/ Implementation

5 Levels of Integration

Cultural

Interpersonal

Operational

Tactical

Strategic

Source: “Collaborative Advantage: The Art of Alliances,” Rosabeth Moss Kanter

Strategic Integration

Partner PartnerGoals & Objectives

Involves: Executives

Tactical Integration

Partner PartnerProject Plans

Involves: MiddleManagers/Professionals

Operational Integration

Partner PartnerAccess

Involves: Workers

Interpersonal Integration

Partner PartnerRelationship Building

Involves: All levels

Cultural Integration

Partner PartnerCommunication

& Awareness

Involves: All levels

Power of Participation

Partnership champion is important, but…

ownership must occur at all levels

Source: from works of Arie De Geus and Margaret Wheatley

Case Study 1

Digital Media Center Partnership


PartnerAssessment

NegotiationsControl /

Implement-ation

Digital Media Center Partnership Levels of Integration

Operational

Tactical

Strategic

5 Levels of Integration -- from works of Rosabeth Moss Kanter

Cultural

Interpersonal

LIBRARY ++ ITC


UNSUCCESFUL ALLIANCE


Steps in Developing

Alliances and Partnerships1st attempt 2nd attempt

Strategic Development

Partner Assessment

Negotiations

Control / Implementation

MAINTAININGMAINTAININGPARTNERSHIPSPARTNERSHIPS

Don’t become a statistic!

Reasons for Failure

0 50 100

Lack of partnership experience

Cultural mismatch

Misunderstood operating principles

Lack of financial commitment

Slow results or payback

Lack of shared benefits

Poor communications

Overly optimistic

20 Caution

28

31

32 Critical

42

49

54

73 Danger

Source: “Alliance Analyst” Survey of 455 CEO’s

“Insufficient attention to post-deal alliance management can ruin a promising relationship.”

Source: “Alliances and risk: security a place in the victory parade,” Gomes-Casseres

Reasons for Failure -- from “Alliance Analyst” Survey of 455 CEO’s

0 50 100

Lack of partnership experience

Cultural mismatch

Misunderstood operating principles

Lack of financial commitment

Slow results or payback

Lack of shared benefits

Poor communications

Overly optimistic

20 Caution

28

31

32 Critical

42

49

54

73 Danger

Partnership ManagementCan Address These Source: “Alliance Analyst” Survey of 455 CEO’s

Importance of Partnership Managers

“The alliance manager is the person charged with carrying the alliance forward at each stage in its life cycle. The research suggests that above all, the alliance manager is a manager who shoulders the responsibility of the business of the alliance and must also assure that the alliance maintains its course to achieve its goals and objectives.”

Source: “Creating Strategic Alliances That Endure”, Spekman, Isabella, MacAvoy, Forbes

Helps build trustHelps stabilize alliance

Manager’s Role

Promotes partnership internally Facilitates partnership activity initiation Solves resources issues Facilitates information flow internally and

across partnership Manages conflict Identifies new opportunities for partnership

Source: U.Va. Darden Strategic Alliances Project

Characteristics of Effective Partnership Manager In-depth understanding of organization’s mission

and operation Extensive, positive working relationships within

the organization Long-range perspective Open-minded Places high value on information sharing & is

effective in communicating at all levels Good mediator Seeks shared commitment & recognition for the

contribution of allSource: U.Va. Darden Strategic Alliances Project

Helpful Management Practices

Involve people who are concerned for partnership welfare

Resolve conflicts promptly

Hold regular reviews of partnership health

Governance Example 1

Partnership Council

ProjectCo-Managers

ProjectCo-Managers

ProjectCo-Managers

PartnershipResponsibility

Project Responsibility

ProjectFacilitation

Governance Example 2

Partnership Council

WorkingCommittee*

ProjectCo-Managers

ProjectCo-Managers

ProjectCo-Managers

PartnershipResponsibility

ProjectResponsibility

ProjectFacilitation

*Co-chaired bypartnership managers

Sources of Static

External to and beyond control of partners Internal to and within control of a partner Directly related to and within control of

partnership

Static External to Partners

Examples: Changes in government or politics Changes in regulatory environment Constraints created by social policies Shifts in market or competitive dynamics Significant technological breakthroughs Other?

Source: “Identifying Sources of Static in Alliances,” U.Va. Darden Strategic Alliances Project

Static Internal to a Partner

Examples: Poor financial health Change in strategic intent Partner restructuring or reorganizing Management infighting or power struggle Conflict between organization and partnership

goals Uneven buy-in to partnership goals and purpose Other?


Static Within Partnership Itself

Examples: Incompatibility of managers Clashes due to partner organization

culture Clashes due to national culture Communication problems from time zone

differences Inadequate face to face time for managers


Static Within Partnership Itself

More examples: Abrupt change in partnership managers Uneven buy in of partners Breaches of faith or trust Perceived inequity of contributions or benefits Inability or unwillingness to make hard choices Other?

Source: “Identifying Sources of Static in Alliances,” U.Va. Darden Strategic Alliances

Case Study 2

VA SCAN Purpose

To strengthen security programs across Virginia by: integrating and making available field-proven

tools, best practices, and people from VA SCAN partner institutions;

linking existing models and knowledgebase with security research, instruction, and federal/state government initiatives

Initial Partners

Security Practitioners at George Mason University James Madison University University of Virginia Virginia Tech

Security Researchers at Institute for Infrastructure and Information Assurance

(JMU) Center for Secure Information Systems (GMU) Critical Infrastructure Protection Project (GMU/JMU)

Current Offerings Instructional materials and on-site training “Ask the expert” email service and on-site consulting Web-based toolkit of effective practices & tools Self-assessment checklist for Commonwealth of

Virginia security standards Information resources provided through:

mail list for general security discussions, a VA-CIRT group for tracking new threats, periodic information sharing meetings linkages to other information sources

Annual conference Professional training events

Governance StructureAdvised by:•Volunteer Schools•Virginia HE CIO Council•Client Surveys

Business Model

Services provided either free of charge or on an expense recovery basis

Partners absorb cost of staff time within reason

Website design and hosting provided by Institute for Infrastructure and Information Assurance

Critical Infrastructure Protection Project is funding graduate assistant for one year

Governor’s Technology Award Winner

September, 2003

EDUCAUSE Excellence in Information Technology Solutions Award Winner

October, 2005

Recent Changes

New Partner: Virginia Commonwealth University

Expanded Scope:IT Auditing

Website Redesign

Future Direction

Expand scope to K-12 Promote and collaborate with similar

efforts in other regions Pursue grant funding for development of

additional service offerings

Case Study Questions:

What factors are contributing to ongoing success of VA SCAN?

What sources of static have the potential to cause serious problems for VA SCAN?

What strategies might VA SCAN undertake to address these?

Partnership Reviews

What: Joint examination of partnership health

Who: Partnership managers and sponsors only

When: Annually, or when significant changes or unanticipated problems arise


Partnership Reviews - Preparation Review partnership goals and objectives

Are they still worth pursuing? If not, why not?What new goals and objectives should be

explored? Assess progress toward goals and

objectivesHave there been shortfalls? If so, why?What could be done to enhance progress?What new projects/initiatives should be

launched soon?Source: U.Va. Darden Strategic Alliances Project

Partnership Reviews - Preparation

Identify issues of concernAre changes in key personnel imminent?Are looming external or internal factors that

could negatively affect the partnership?


Partnership Review Meeting

Strive for collegial and confidential atmosphere

Leave blame and hidden agendas at the door

Communicate simply, objectively, and honestly

Address all issues Discuss successes as well as problems


Possible Meeting Outcomes

Termination of partnership Reaffirmation or modification of goals and

objectives Reaffirmation or modification of

project/initiative plans Changes in governance structure Minor adjustments to partnership inter-

workings Source: U.Va. Darden Strategic Alliances Project

SUCCESS FACTORSSUCCESS FACTORS

Recap: Key Strategies For Creating Effective Partnerships Define stakeholders Develop strategic objectives Complete partner assessment Complete document of understanding Establish structure and processes Insure levels of integration

Recap: Key Strategies For Effectively Managing Partnerships Involve people who are concerned for

partnership welfare Recognize the partnerships must be carefully

managed Assign a knowledgeable and skilled partnership

manager Resolve conflicts promptly Be mindful of partnership static Hold regular reviews of partnership health

ADDITIONALADDITIONALSUCCESS FACTORSSUCCESS FACTORS

Clearly Define Roles

Examples Executives - “partnership owners”

Central IT - “prime evaluator” & “manager”

Faculty - “advisors”

Development Office - “facilitator”

Purchasing Office - “advisor”

Resource Well

Allocate high caliber personnel to partnership initiatives

Shoulder resource commitments equally with partner

Allocate work so that each partner does what it does best

Don’t commit beyond means, i.e. manage to resources

Create Environment for Building Trust Establish frequent contact between

partner personnel Consider personnel exchange programs Make joint projects the norm Keep communication channels wide open

Continuously Communicate Existence of Partnership and Progress Made

Use:

The PressLetters to faculty & department headsPartnership websiteNewsletters

Remember that….

“Failed alliances do not achieve what they set out to do,

Source: “Alliances and Risk: Securing a Place in the Victory Parade”, Gomes-Casseres

but successful alliances achieve much more than their original goals planned for.”

WRAP UPWRAP UP

Documents

Achieving the Impossible Through Partnerships and Alliances Shirley Payne & Martha Sites University of Virginia 2006 EDUCAUSE Conference October 9 th,