Strategic Alliance Magazine

Spanning the Enterprise. Watch for your opportunity to participate in our 2012 research study on The Practice of Alliance Management in the Biopharma ceutical Industry. Call +1.617.965.4777 or visit our website at rhythmofbusiness.com to access our extensive library of publications, presentations, tools, and other resources.

It’s a Complex World. Let The Rhythm of Business Help You Navigate It. Increasingly, alliance managers are being asked to do more with less. Larger alliance portfolios. More complex collaborations. Fewer organizational resources.

Don’t Go It Alone. When the challenges of complexity and scale threaten the success of alliance portfolios, alliance leaders turn to The Rhythm of Business for clarity, deep insights, and step-by-step help. At The Rhythm of Business, we serve as thinking partners and guides, providing cost-effective strategies, frameworks, and tools that:+ Increase alliance performance and effectiveness+ Drive financial results and other measurable value+ Reduce complexity (and risk) in your alliance portfolio

Tap into Our Broad Experience and Deep Industry Expertise. Whether they’re starting from scratch or rethinking their alliance programs, alliance leaders call on The Rhythm of Business for our wealth of ideas and for our years of expertise in alliance-savvy industries such as biopharmaceuticals, financial services, information technology, and consumer packaged goods.

Take Your Collaborative Capabilities to the Next Level. The Rhythm of Business is your “center of alliance excellence,” and a resource for comprehensive support, such as:+ Partnering program design + Alliance organization, staffing, and process design + Guidebooks, toolkits, and alliance metrics + Help with alliance start-ups, strategic planning, ongoing assessments,

and interventions + Customized, targeted education for alliance managers, teams, and executives + Alliance portfolio analysis, mapping, and planning + Internal marketing and communications programs

Partner with the Collaborative Business Specialists. Our consulting, education, and research services focus on driving innovation and growth through alliances and other collaborative relationships. We’re passionate about advancing the discipline and profession of alliance management across sectors, throughout industries, and around the world.

Your Guide to the Future of Alliance Management Contact The Rhythm of Business today at +1 617 965 4777 or [email protected] to begin, or continue, your journey down the path toward successful alliance management.

www.rhythmofbusiness.com

The Charles Hotel

Biopharma’s top alliance management thought leaders and companies will be there. Shouldn’t you?

The ASAP BioPharma Conference gathers more prominent executives and companies associated with the development and management of biopharma alliances than any other event. It offers the most in-depth training in the “how-to” of alliance management – actionable insights, practical tools, and hands-on skill building. It is the place to do business and reconnect with your current allies, or to find your new partner, employee, or potential employer.

No other conference can match the ASAP BioPharma Conference’s plethora of industry-oriented professional development and networking opportunities. How can you afford not to be there?

Come join us at the ASAP BioPharma Conference, where we will explore the profession’s most pressing themes, including:

+ Creating a culture of alliance excellence

+ New frontiers: service alliances (e.g. CMOs, CROs)

+ Trends in deal making and the implications for executing long-lived alliances

+ Implementing a consistent partner experience

+ Same-drug multiparty alliances

+ Partnering internally with key support personnel

Of course, the ASAP BioPharma Conference will still deliver the core alliance management tools, processes, people-skill training, and general knowledge that are ASAP event hallmarks.

This is the premier event for alliance management professionals and all those who are responsible for the biopharmaceutical industry’s increasingly collaborative relationships. The industry’s top alliance management thought leaders and companies will be there. Shouldn’t you?

Register for the event now at http://www.cvent.com/d/mcqpgft

The ASAP BioPharma Conference is Coming! The Charles Hotel, CambridgeMassachusetts, USANov. 15-16

Follow the 2012 ASAP BioPharma Conference on:

facebook.com/asapbiopharma

#asapbio2012

ASAP BioPharma Conferences

5Quarter 2, 2012

A Steady Upward Trend

IN MANY WAYS, It MAY NOt SEEM FIttING At FIrSt that we are putting forth an issue that prominently features articles on such “downer” subjects as terminating alliances and trying to rescue alliances that are failing—this on the heels of the unprecedented success of this year’s ASAP Global Alliance Summit, which took place March 5–8 in Las Vegas.

A Successful Global Alliance Summit and Expanding Membership Portend Great Th ings to

Come for ASAP and Alliance ManagementBy Art Canter

true, our two features concern individual alliances that have reached a do-or-die, make-or-break stage; they don’t refl ect the state of the alliance management pro-fession itself. Still, it’s somewhat ironic considering that ASAP and the alliance management profession are encountering a much diff erent infl ection point—we’re clearly on the rise.

Th is year’s Global Alliance Summit was the most well attended in its history. In addition, ASAP signed several leading multinational companies as new Cor-porate and Global Members in Q1, and what’s telling is that not all are from the usual biopharma and It spaces; one is from the consumer packaged goods market, which illustrates that more folks in the business world are starting to get what we have known all along—alliances are how business gets done these days, and the latest, most sophisticated alliance management tools, processes, and train-ing represent the smart way to help you get the most out of your collaborations.

Meanwhile, ASAP and ASAP Media are translating the growing knowledge base and increased refi nement of the discipline into great new services; we offi cially cut the ribbon on our Collaborative Buzz blog in Q1; the ASAP Netcast Web seminar series is fully off the ground, presenting invaluable strategic and practitioner-level

insights to members each month; and pretty soon we will be expanding the ASAP tV Youtube channel to showcase the vast knowledge of the profession’s thought leaders. In the coming months, we will also be interpreting the results of the survey we issued to our members in January and using that analysis to further build on our value proposition.

Of course, we at ASAP still encounter our own crossroads, even in good times. In particular, our feature on the 4th State of Alliance Management Study discusses the ground our research has traversed over the past decade, and where it can go from here. Th e authors of this latest iteration of the study are now turning their thoughts toward which issues this research needs to focus on in order to unearth deeper insights into the profession. Which areas need closer inspection? What new ques-tions do we need to be asking in future versions of the study? Or, as Dave Luvi-son, CSAP and one of the study’s authors, asked, “As pioneers in this profession, what are alliance managers going to do to take it to the next level?”

Our Individual, Corporate, and Global Members are just the people and orga-nizations to lead this charge. Th ey are the ones that have grown this discipline and association in numbers and infl u-ence. Th ey have been at the prow of the

ship spotting icebergs in time to navigate around them. Th ey are proactive in dis-covering not-so-obvious new ways their alliances can exceed immediate objec-tives and bring additional value to their organizations. ASAP Media will continue to highlight the great thinking that comes from this group. In that vein, in this iss-ue Strategic Alliance Magazine debuts its Member Spotlight regular feature, which will aim to highlight the alliance management philosophies and practices of our Corporate and Global Members.

In the context of the 4th State of Alliance Management Study, Luvison asserted, “If 10 years down the road we were still do-ing the same things as in 2002, we’d say we were stuck.”

Fortunately, we’re not. Far from it. If the fi rst quarter of 2012 is any indication, we are already well on our way to our next destination. By all indications, it will be an even better place.

Art Canter, president and CEO of ASAP, is executive publisher of Strategic Alliance Magazine.

up front

in this issue18 n COVER STORY

Heading for the ExitLike It or Not, There Are Many Critical Responsibilities in Winding Down Alliances That Cannot Be Ignored By Jon LavietesThe end probably has been obvious for a while, but once the wheels are in motion for a formal conclusion to a strategic alliance, it is critical that organizations take the same care in closing out the partnership that they did in creating and maintaining it. Failure to do so can put you in bad standing legally, publicly, or professionally.

Quarter 2, 2012

The magazine of the Association of Strategic Alliance Professionals

AN ASAP MEDIA PUBLICATION www.ASAPmedia.org

www.strategic-alliances.org

EDITORIAL TEAM Art Canter,

Executive Publisher 781-562-1630 ext. 201

[email protected]

John W. DeWitt, Publisher

646-232-6620 [email protected]

Jon Lavietes, Editorial Director


Michael Burke, Editor-in-Chief 413-345-1624

[email protected]

Greg Caulton, Creative Director


Matthew Wimmer, Design and Online Media Manager


ASAP STAFF Art Canter,

President and CEO 781-562-1630 ext. 201

[email protected]

Pam Goodell, CA-AM Director of Operations 781-562-1630 ext. 202

[email protected]

Lori Gold, Manager of Member Services

781-562-1630 ext. 203 [email protected]

Michele Shannon, Program Event Coordinator


Brendan Ward, Administrative Support 781-562-1630 ext. 200

[email protected]

Diane Lemkin, Accounting Manager


Jennifer Silver, Certification Coordinator


© Copyright 2012 Association of Strategic Alliance Professionals. All Rights Reserved.

27 n CEO FORUM

Q&A with Marc de Garidel, Chairman and CEO, Ipsen GroupIpsen has always placed a great deal of critical responsibility on its alliance management practice. The importance of its alliance efforts apparently isn’t going to diminish any time soon. Ipsen’s chairman and CEO Marc de Garidel talks about the $1.6 billion biopharmaceutical company’s alliance strategy, both moving forward in 2012 and in the context of its own major changes at the executive level in 2011, in our CEO Forum. Sponsored by Quintiles.

Strategic Alliance Magazine

22 n ALLIANCE AT A CROSSROADS

Too Important to FailGetting a Troubled Alliance Back on Track | By Christine Carberry, CSAP,

and Lynda McDermott, CSP A high-profile alliance is faltering. Alliance managers are expected to turn the situation

around. But how do you rescue an alliance that is just too important to

fail? In this case study, the authors profile a real-life high-stakes

alliance that was stumbling and lay out the road

map that turned it around.

7Quarter 2, 2012

5 n UP FRONT | By Art CanterA successful Global Alliance Summit and our expanding member base portend great things to come for alliance management.

11 n COLLABORATIVE BUZZAlliance News Briefs | People in the News ASAP & ASAP Partner Calendar of Events ASAP Chapter Updates

Regular Features:15 n ASAP MEMBER SPOTLIGHTNetApp Alliance Program Blazes Pathway to Growth With “baked-in” alliance strategy, data management company hopes cloud is just a starting point to greater heights

57 n SOLUTIONS MARKETPLACEProducts and services for and from strategic alliance professionals.

30 n ALLIANCE AWARDS

ASAP Announces 2012 Alliance Excellence Award WinnersOracle-Deloitte, SAS, Coherence Highlight Best-of-the-Best in 2012 | By Jon LavietesLast year, the Oracle-Deloitte alliance took its Asia-Pacific region joint initiatives to a new level, SAS successfully revamped its approach to managing its alliance portfolio, and Coherence facilitated a partnership that delivered critical mobile banking services to the people of Haiti in a time of crisis. For their respective efforts, Oracle, Deloitte, SAS, and Coherence were awarded the world’s most prestigious honor recognizing contributions to the alliance management field.

39 n EDITORIAL SUPPLEMENT

For Better or WorseHow Understanding Personality Traits Can Help You Effectively Mitigate and Manage Alliance Conflict By John R. Hayes, MD, David Thompson, CA-AM, and Steven E. Twait, CSAPIn our last issue, the authors broadly examined the effects of conflict in alliance management. In this sponsored supplement, they take a look at how to handle two difficult personality types—narcissists and obsessive-compulsive individuals—and reduce the amount of conflict such people can potentially create. Sponsored by Eli Lilly & Co.

34 n ALLIANCE MANAGEMENT IN REVIEW

The State We’re InASAP’s 4th State of Alliance Management Study Shows Just How Far the Profession Has Come—and Suggests Intriguing New Directions for Where It May Go Next | By Michael Burke Looking back over a decade of alliances and alliance management, the authors of the Study see progress: more alliances, greater use of alliance tools and best practices, and greater investment in alliance management. But does greater investment in alliance management always translate into alliance success? And where does the profession go from here?

Quarter 2, 2012

The magazine of the Association of Strategic Alliance Professionals

8 Strategic Alliance Magazine

48 n SPECIAL FOCUS: LEGAL EASE

Get Me Legal!What Alliance Managers Need Legal Counsel to Know—and How They Can Work Together By Michael BurkeAlliance managers and in- house legal counsel may come from different places and speak different languages, but in reality they’re on the same team. Mutual understanding—plus a definition and awareness of boundaries—is in order, along with a knowledge of how each can best help the other do its job.

58 n THE CLOSE

Alliance SerendipityWhen Hundreds of Partnership-Minded Folks Encounter One Another, We’re Enlightened by a Multitude of New Possibilities for Our Alliances | By Jon Lavietes and Michael BurkeThe success of the ASAP Global Alliance Summit this past March shows the enormous potential value—often well beyond what was intended or foreseen—that can be derived from collaboration.

ASAP BOARD & COMMITTEE CHAIRS Russ Buchanan, CSAP

ASAP Chairman of the Board Vice President, Worldwide Alliances,

Xerox Corp.

Jan Twombly, CSAP Chairman, ASAP Program Committee Member, ASAP Executive Committee President, The Rhythm of Business, Inc.

Strategic Alliance Magazine is published quarterly. Publisher is The Association of Strategic Alliance Professionals, 960 Turnpike Street, Canton, MA 02021, +1 781-562-1630. Subscriptions are $99 for one year, $189 for two years. Cana-dian subscriptions are $149 per year. All other international

subscriptions are $199 (using air mail). Subscription inquiries: +1 781-562-1630. Periodicals postage is paid in Chicopee,

MA, and additional mailing offices. Postmaster: Send address changes to STRATEGIC ALLIANCE MAGAZINE, 960 Turnpike Street, Canton, MA 02021. Copyright 2012, The Association

of Strategic Alliance Professionals. No part of this publication may be reproduced, stored in any retrieval system, or trans-mitted in any form or by any means, electronic, mechanical,

photocopying, recording, or otherwise, without the prior written permission of the publisher. For reprints, please

contact The Association of Strategic Alliance Professionals, +1 781-562-1630.

44 n SPECIAL FOCUS: LEGAL EASE

What Legal Needs You to Know How to Negotiate a Contract That Lays a Foundation of Success for Licensing Deals By Elana BertramIt’s no secret that alliance managers need to be involved in contract negotiations for a new partnership to ensure that the fine print does not become an impediment to driving a licensing deal to fruition. An expert from the legal community explains what alliance managers need to be aware of when working with legal counsel to devise a pact that gives the alliance the best chance to achieve its objectives.

in this issue

Develop Your Alliance Strategy▶ Defi ne (or refi ne) an alliance strategy that

meets overall corporate strategy and business unit objectives

Benchmark Your Alliance Management Capability ▶ Benchmark your alliance management capabilities

relative to competitors

Design and Implement Your Alliance Management Program ▶ Create an alliance program blueprint and imple-

ment a framework for improved alliance success rates and better business results

Launch Your New Alliances ▶ We facilitate a carefully designed set of activities

between partners

Remediate and Relaunch Relationships▶ We conduct comprehensive assessments of alliance

performance and help revitalize faltering partnerships

Alliance Management Training Solutions▶ Designing and Implementing Comprehensive Alliance

Training Curriculum

▶ Designing and Implementing Alliance-Specifi c Team Training

▶ Training Alliance Management Groups

About Vantage PartnersVantage Partners, a spin-off of the Harvard Negotiation Project, is a management consulting fi rm that specializes in helping companies achieve breakthrough business results by transforming the way they negotiate, and manage relationships with, key business partners.

To learn more about Vantage Partners, visit www.vantagepartners.com, call +1 617 354 6090, or e-mail [email protected].

Conventional advice about alliances has not reduced their dismal failure rate. By working with Vantage,companies maximize the performance of individual alliances, put under-performing alliances back on track, and ensure coordination and optimization of their entire alliance portfolio.

Success requires shifting your focus to a complementary set of principles. To help companies address and fi nd solutions to their specifi c alliance challenges, Vantage Partners offers a broad range of services:

Make Your Alliances Work

Let Vantage Partners Help Your Company Negotiate and Manage Critical Relationships

Check out the Vantage Partners Alliance Management Webinar SeriesWe are excited to share our collection of virtual presentations on building and maintaining exceptional alliance management teams and capabilities within your fi rm. This free-to-access series, organized by the Vantage Alliance Management Capability model, includes webinars on topics ranging from up front strategy setting to negotiation to launching new relationships to transforming old(er) ones. To view

the Webinar series, visit: vantagepartners.com/Alliance_Webinar_Series_Webpage.aspx.

Helping Companies Negotiate and Manage Critical Relationships

Check out the Vantage Partners Alliance Management Webinar SeriesWe are excited to share our collection of virtual presentations on building and maintaining exceptional alliance management teams and capabilities within your fi rm. This free-to-access series, organized by the Vantage Alliance Management Capability model, includes webinars on topics ranging from up front strategy setting to negotiation to launching new relationships to transforming old(er) ones. To view

the Webinar series, visit:

960 Turnpike St, CantonMA 02021 USA

Tel: +1- 781-562-1630strategic-alliances.org

[email protected]

Many members are putting the Association’s core services to good use. When asked which services you use, you indicated:

Strategic Alliance Magazine 72%

Regional Chapter Events 42%

ASAP eNews monthly newsletter 41%

Global Alliance Summit 39%

Best Practice Bulletins 38%

CA-AM Certifi cation 38%

In January, we asked you to give us your thoughts about the value of ASAP membership. Over the next few weeks, you spoke your minds. Soon we will be sharing your feedback in greater detail and telling you how we will use it to improve the value of your membership. But meanwhile here’s a preview.

Approximately 400 diligent and dedicated ASAP members and 300 nonmember partners to the alliance management community fi lled out our survey. The great news is that, according to the early results, we are meeting our core strategic objectives to:

Provide knowledge and resources, professional development tools, and networking opportunities

Bolster new member recruit-ment while retaining our strong existing member base of leading alliance management individuals and companies

Strengthen our existing communities

Enable you to instill a stronger alliance capability in your company

Strong delivery of our services is important to us, and you, too, indi-cated a desire to see a continued fo-cus on the quality of our programs. Now, thanks to your input, ASAP’s Membership Value and Experience Committee, Board of Directors, Chapter Presidents, and Professional

Development and Programming Committees are interpreting the results and developing plans to help you get even more from the programs and services that have become a big part of your professional life, and to extend the value of ASAP as a leader in alliance management all year round.

In the coming months, we will share more information with you on how we are going to improve upon what is already a very strong value proposition, according to your feedback. In other words, ASAP will be doing even more to help you become a better alliance manage-ment professional.

Thanks to all who fi lled out the survey for giving us your feedback. Your voice has been heard!

The ASAP Member Survey was sponsored by the ASAP Member-ship Value and Experience Com-mittee (chaired by Jack Pearson, CSAP, ASAP vice chairman, and executive vice president and chief alliance offi cer at Concentrx Phar-maceuticals). It was led by Kim Fill, CSAP and manager at Eli Lilly and Company’s Offi ce of Alliance Man-agement, and Lori Gold, ASAP’s manager of membership services.

We’re right on schedule.Full ASAP Member Survey Results

Are Coming Soon!


11Quarter 2, 2012

n Russ Buchanan, Xeroxn Chi Chan, IBMn Tony DeSpirito, Schneider Electricn Paula Harpham, SASn Kevin Little, Concordia Universityn Brian Lloyd, Xeroxn Helen Morin, SASn Peter Simoons, Simoons & Company n Donatella Torsello, Xeroxn Scott VanValkenburgh, SASn Ronald Wehner, NationwideThe CSAP designation is the profes-sion’s highest level of certification. It is for seasoned veteran practitioners with a command of the full alliance life cycle from inception to termination. Simoons, who is president of the ASAP BeNeLux chapter and for years has administered prep courses to profes-sionals taking the CA-AM exam to earn the profession’s basic level of certifica-tion, has now joined the CSAP club and stands as one of ASAP’s most enthu-siastic advocates of the certification program. Simoons espoused the virtues of certification in the alliance manage-ment professional’s career recently after earning his CSAP credentials at this year’s Global Alliance Summit.“Alliance management is evolving as a recognized management discipline

with a unique set of skills and competen-cies required to be adept at successfully managing organizational collaboration,” he wrote earlier this spring in a blog post. “Alliance management is a profession and starting to become recognized as such. Through certification, alliance managers demonstrate their knowledge of the alliance management skills. Certification represents a level of pro-fessional achievement and becoming certified also demonstrates a commit-ment to the profession.”

ASAP Welcomes Four New Corporate MembersLeading companies from a variety of industries continue to turn to ASAP to help bolster their alliance management practices. ASAP recently welcomed the following four new Corporate Members:n Infosys (infosys.com)n Dow Chemical (dow.com)n Woodward, Inc. (woodward.com)n Reckitt Benckiser Group plc

(www.rb.com/home)

BioPharma Conference Site and Dates RevealedThe ASAP BioPharma Conference, an annual event that explores alliance

management in the biopharmaceutical industry in unparalleled depth, will take place this November 15 and 16 at the Charles Hotel in Cambridge, Mass.This year’s BioPharma Conference will explore the theme of “Creating a Culture of Alliance Excellence” throughout a traditional biopharmaceutical company, biotech, contract manufacturing organi-zation, or other pharmaceutical entity—in other words, embedding alliances into your organization’s DNA. The world’s leading biopharma companies and exec-utives will be attending—and speaking at—the ASAP BioPharma Conference. We hope you’ll be there as well. Go to ASAP’s website, strategic-alliances.org, for more information and updates.

ASAP Member Survey Results Coming SoonIn January, the ASAP Membership Value and Experience Committee, chaired by Jack Pearson, CSAP, ASAP vice chairman and executive vice president and chief alliance officer at Concentrx Pharmaceuticals, sponsored an initiative to ask ASAP members and friends to speak their minds and tell us how well they thought ASAP was fulfilling its value proposition. This resulted in an effort led

ASAP Congratulates a New Crop of CSAPs

By Michael Burke

AS tHOSE rEADErS WHO ArE tUNED IN tO ASAP’s LinkedIn group already know, 11 veteran alliance management executives have recently earned their CSAP certification, in-cluding ASAP’s board chairman Russ Buchanan. The need for the highest level of alliance management expertise is growing in the business world, and the latest CSAPs illustrate this. They hail from multiple countries and span a variety of industries. Congratulations to the following ASAP members who have chosen to formalize their standing as leading practitioners of the discipline by passing the CSAP exam:

Collaborative Buzz


by Kim Fill, CSAP and manager at Eli Lilly and Company’s Office of Alliance Management, and Lori Gold, ASAP’s manager of membership services, to poll both members and nonmembers (i.e. prospects and partners to the alliance management community). Nearly 400 diligent and dedicated ASAP members and close to 300 nonmembers filled out our extensive survey this past winter. ASAP is in the process of analyzing the data and reviewing it with several com-mittees across the association. The early results show that ASAP is meeting its core strategic objectives to:n Provide knowledge, resources, and

professional development tools (such as Strategic Alliance Magazine, the ASAP eNews monthly newsletter, and Best Practice Bulletins—three of the top five most often-used ASAP services, according to respondents)

n Deliver great networking opportuni-ties such as the Global Alliance Sum-mit and regional chapter events that round out the top five most-utilized member benefits

n Bolster new member recruitment and retention of the existing member base

n Strengthen ASAP’s existing communities.

Survey respondents reported that ASAP membership has enabled them to instill a stronger alliance capability at their companies. Now, thanks to that input, ASAP’s Membership Value and Experi-ence Committee, board of directors, chapter presidents, and Professional Development and Programming com-mittees are looking at how to augment ASAP’s organizational structure to help members better utilize chapters and extend the value of events all year long. In the coming months, ASAP will be sharing in greater detail how it will improve upon its already-strong value proposition based on your feedback. Keep checking www.strategic-alliances.org, our Collaborative Buzz blog, and Strategic Alliance Magazine for updates.

Alliance NewsAmgen and AstraZeneca to PartnerAmgen and ASAP Global Member AstraZeneca have agreed to share the risks and potential rewards of jointly developing five monoclonal antibodies from Amgen’s clinical inflammation portfolio, including experimental therapies for psoriasis, Crohn’s disease, lupus, and other diseases.Following a $50 million up-front pay-ment made by AstraZeneca to Amgen, the companies will share certain costs and possible profits across multiple indications in inflammatory diseases. AstraZeneca will shoulder 65 percent of the costs through 2014, after which the companies plan to split costs equally. The collaboration will provide Amgen with new money to progress its portfolio and new development expertise in inflammation and asthma from MedImmune, AstraZeneca’s biologics arm, the companies say.AstraZeneca already has an extensive portfolio of partnerships, including arrange ments with Bristol-Myers Squibb, GlaxoSmithKline, and Merck. This new agreement with Amgen fits into a broader effort to externalize its drug discovery work.

Smart Parking in the Future: Citi, IBM, and StreetlineCiti, along with ASAP Global Member IBM and Streetline, Inc., has announced the extension of a $25 million Citi credit facility to Streetline, in collabo-ration with IBM, aimed at funding in-novation in parking and transforming cities for the future. As the majority of the world’s population moves to metropolitan areas, key city systems, including city streets and parking resources, are being strained to the breaking point—in addition to the air pollution created while motorists search for parking places.

The collaboration between Citi, IBM, and Streetline aims to provide a funding source to bring new technology and smarter parking to cities around the globe. The financing will enable cities to acquire smart parking technology at no initial up-front cost, thereby facilitating adoption and deployment of the latest in parking advancements. Through this relationship, cities will now have the option to adopt Streetline’s cloud-based smart parking solutions on a pay-as-you-go basis. With sensors and applications from Streetline and analytics technologies and “Smarter Cities” expertise from IBM, cities can tap historical and real-time data to help them gain a better understanding of the interdependen-cies between parking and their overall transportation network with other city services. Such knowledge is critical in planning for economic development, merchant services, mass transit schedul-ing, and infrastructure projects, among other key city functions. Streetline’s patented smart parking platform detects the presence of a car through a network of ultra-low-power wireless sensors located in individual parking spaces. This information is then made available in real time both to the city, as well as to consumers via Parker, the leading consumer guidance app for smartphones, tablets, personal computers, and—soon—in-car naviga-tion systems, available free via the itunes Store or Android marketplace.

Daiichi Sankyo and NGM Biopharmaceuticals Ink Diabetes Collaboration AgreementASAP Corporate Member Daiichi Sankyo and NGM Biopharmaceuti-cals have announced that they have entered into a research collaboration and license agreement to discover and develop novel therapeutics that modulate beta-cell regeneration for the treatment of diabetes. As part of this collaboration, NGM will apply its

Collaborative Buzz

13Quarter 2, 2012

integrated discovery technology and in vivo screening platform to identify and validate physiologically relevant metabolic targets that modulate beta-cell growth and function. The two companies will jointly conduct research on selected targets with the goal of identifying and optimizing drug candi-dates for further development. Daiichi Sankyo will assume responsibility for preclinical studies, clinical development, manufacturing, and commercialization on a worldwide basis.

Optimer Pharmaceuticals and Astellas Announce CollaborationOptimer Pharmaceuticals and ASAP Corporate Member Astellas Pharma have announced the execution of an exclusive collaboration and license agreement to develop and commercial-ize fidaxomicin tablets in Japan for the treatment of clostridium difficile infection. In return Optimer will receive a one-time, up-front cash payment of $20 million from Astellas. Optimer is also eligible to receive additional cash payments of up to $70 million upon the achievement of certain regulatory and commercial milestones. Optimer is also entitled to receive payments from Astellas equaling a double-digit percentage of Astellas’s net sales in the territory. Astellas is responsible for all future costs associated with the development and commercialization of fidaxomicin in Japan.

BMC Software and VCE Form Strategic AllianceASAP Corporate Member BMC Software and VCE have announced a strategic alliance that will combine the industry-leading solutions of both companies to address the growing market demand for best-in-class converged infrastructures in cloud computing projects. As It departments adopt cloud at an ever-accelerating pace, the integration of the VCE Vblock Infrastructure Plat-

form and BMC’s business-centric cloud management solutions will help joint customers for BMC and VCE automate their management of comprehensive cloud infrastructures. As a part of the alliance, BMC and VCE will enhance the interoperability and integration of their products and work together to promote and offer their solutions in the market.

Great Scots: PPD Partners for Scottish Clinical ResearchThe Scottish Government and ASAP Corporate Member Pharmaceutical Product Development, LLC (PPD), recently announced a unique alliance de-signed to increase the amount of clinical research conducted in Scotland, accelerate the development of new medical ther-apies, and enhance health care treatment options for the country’s citizens.The alliance between PPD and NHS research Scotland (NrS) advances the long-standing relationship linking the leading global research organization and the Scottish Government.PPD will work closely with the major health boards across Scotland to further reduce study start-up times, streamline regulatory approval processes, increase the number of patients recruited for clinical trials, and ensure the availability of resources and training to increase the number of physicians and support staff conducting research. PPD’s team of more than 300 profess-ionals in Bellshill, Lanarkshire, offers expertise in clinical management, data management, project management, pharmacovigilance, biostatistics, and quality assurance.

Boehringer Ingelheim and Xencor Collaborate on Antibodies Xencor, Inc., a company using its proprietary Protein Design Automation (PDA) platform technology to engi-neer next-generation antibodies, and ASAP Corporate Member Boehringer

Ingelheim announced in February a co-llaboration agreement for certain Xencor biosuperior monoclonal antibodies.

Under the terms of the agreement, Boehringer Ingelheim will provide all manufacturing and product supply from preclinical through Phase 1 development. Xencor is responsible for preclinical and clinical studies and re-tains all development and commercial rights to products under the agree-ment. Upon successful advancement of clinical programs beyond Phase 1 development, Boehringer Ingelheim has certain manufacturing rights to supply clinical and commercial material to Xencor.

Teradata and Hortonworks Partner on HadoopLeading analytic data solutions company and ASAP Corporate Member teradata and Hortonworks, a commercial vendor promoting the development and support of Apache Hadoop, have announced the signing of a new partnership agreement.

The two companies will join forces to provide technologies and strategic guid-ance to help businesses build integrated, transparent, enterprise-class big data analytic solutions that leverage Apache Hadoop. The partnership will focus on enabling businesses to use Apache Hadoop to harness the value from new sources of data. Businesses will be able to quickly load and refine multistructured data, some of which is being discarded today, for discovery and analytics. The resulting insights will enable analysts and frontline users to make the best business decisions possible.

Millions of people rely on oceans for jobs and food, and as the world’s population reaches 9 billion, it underscores the need to better manage the seas.

Strategic Alliance Magazine14

An Alliance for the OceansThe World Bank recently announced a new global alliance to better manage and protect the world’s oceans, which are under threat from overfishing, pollution, and climate change.Oceans are the lifeblood of the planet and the global economy, World Bank president Robert Zoellick told a conference on ocean conservation in Singapore. Yet the seas have become overexploited, coastlines badly degraded, and reefs under threat from pollution and rising temperatures.“We need a new SOS: Save Our Seas,” Zoellick said in announcing the alliance. The partnership would bring together countries, scientific centers, nongovern-mental groups, international organiza-tions, foundations, and the private sector, he said. The World Bank is aiming to help guide the effort by bringing together exist-ing global ocean conservation programs and support efforts to mobilize finance

and develop market mechanisms to place a value on the benefits that oceans provide.Millions of people rely on oceans for jobs and food, and that dependence will grow as the world’s population reaches 9 billion, underscoring the need to better manage the seas. Zoellick said the alliance was initially committed to mobilizing at least $300 million in finance.“Working with governments, the scientific community, civil society organizations, and the private sector, we aim to leverage as much as $1.2 billion to support healthy and sustainable oceans,” he added.

Lilly: Innovation Starts HereASAP Global Member Eli Lilly and Company recently announced the launch of its global Innovation Starts Here initia-tive, which supports Lilly’s commitment to speeding the delivery of innovative new medicines to patients around the world.two key components of this initia-tive include the Lilly research Awards Program and the Lilly Innovation Fellowship Awards. Through both, Lilly scientists will collaborate with academic researchers on projects that will aid in the advancement of Lilly’s pipeline for the future. These important programs will also further Lilly’s investment in research and development (r&D) in Europe, as well as in the United States.“Through Innovation Starts Here, Lilly is contributing to a global collaborative culture for idea generation and innova-tion, helping to build the Lilly pipeline for the future while also providing resources to advance important research and de-velopment programs in Europe,” said Jan Lundberg, Ph.D., executive vice president of science and technology and president of Lilly research Laboratories. “Collab-oration is a key component to discovering innovative medicines and improving outcomes for patients. Finding innovative medicines that have clear, demonstrable value for those diseases where the unmet need is great—like diabetes and Alz-heimer’s disease—is not only a scientific imperative, it’s an economic one as well.”

Abbott and Galapagos Collaborate on Autoimmune DiseasesASAP Global Member Abbott and Gala-pagos announced they have entered into a global collaboration to develop and commercialize an oral, next-generation JAK1 inhibitor in Phase II development with the potential to treat multiple auto-immune diseases.GLPG0634 is a highly selective JAK1 inhibitor that Galapagos is develop-ing for the treatment of rheumatoid arthritis (rA) and other autoimmune diseases. “The addition of this novel, oral

compound offers patients the potential for advanced treatment options and an improved patient experience to address rA and other autoimmune diseases,” said John Leonard, M.D. and senior vice president of global research and develop-ment at Abbott. “Abbott’s expertise in immunology, combined with a robust portfolio of investigational treatments, represents promising innovation across several areas of medical need.”

Polycom, Microsoft, and HP Working on Video CollaborationASAP Corporate Member Polycom, Inc., global leader in open standards–based unified communications (UC), ann-ounced in March two new interoperable solutions with HP and ASAP Global Member Microsoft that combine Poly-com realPresence video solutions, HP Networking technology and services, and Microsoft Lync with joint reference archi-tectures. The intent is to make it easier to deliver, scale, and manage UC environ-ments that keep employees connected via video, voice, and other communications apps from anywhere. The solutions bring together the key elements of UC and video collaboration, from the networking and UC platform to high-quality video infrastructure and systems, enabling businesses to reduce total cost of ownership and allowing end users to participate in face-to-face meet-ings anytime, across any environment. “together with HP and Microsoft, Poly-com is delivering interoperable solutions that are greater than the sum of their parts: they combine best-of-breed video collab-oration capabilities and tested interoper-ability from three industry leaders to make it easier to deliver, scale, and manage all the disparate applications and components of unified communications,” said Sue Hayden, executive vice president of strat-egic alliances at Polycom. “We’re hearing from organizations around the world that video collaboration is a mission-critical part of how they run their businesses.”

Continued on page 54

Collaborative Buzz

With HP and Microsoft, Polycom combines best-of-breed video collaboration capabilities and

tested interoperability to make it easier to deliver, scale, and manage

the disparate components of unified communications.

NetApp in a Flash159 partners

Four categories of partners:

Value-added resellers (VARs)

Telcos and service providers

Technology alliances (hardware and software)

Global system integrators (GSIs)

80 percent of business conducted through partners

60 percent of deals include technology partner

15Quarter 2, 2012

With “Baked-In” Alliance Strategy, Data Management Company Hopes Cloud Is

Just a Starting Point to Greater Heights By Jon Lavietes

IN SOME rESPECtS, ALLIANCES IN tHE It INDUStrY’S formative years 10 to 15 years ago

were fairly straightforward. Oft entimes, the goal was simply to create a more complete product or

round out a solution being taken to market—making “1+1=3,” as the saying goes.

today’s technology marketplace is just a tad more complex.“What we’re doing now is more than 1+1+1, it’s 1+1+1+1+1,” said Ron Long (pictured above), global partner manager for the Global Systems Integrator group at Sunnyvale, Calif.–based data management company NetApp.Long was referencing the increas-ing complexity of technology solutions being brought to market in less time than the already lightning-fast-paced It industry has ever known. For example, said Long, NetApp might be included in a product bundle with SAP soft ware, an Oracle database, Symantec security, and BMC cloud It management solutions. In addition, for technology vendors like the cloud-based storage solutions provider NetApp, the dynamics of the emerging on-demand model make it pretty much impossible to avoid selling collaboratively with several partners.“Th e cloud is an ecosystem of infrastructure partners. It has to be a partnership model. No one can do it alone,” Long told

attendees of a presentation he gave at the ASAP Global Alliance Summit in March titled “Integrat-ing Partnering into the Core.” Th us, NetApp has placed big bets on its partners and engaged them at a very high level to help sustain its 20 percent fi ve-year annual growth rate.“Alliances are completely inte-grated and critical to our core growth strategy. We don’t just kind of bolt them on, we build them in from the very begin-

ning,” said Long, refl ecting on NetApp’s strategy a day aft er the conclusion of the Summit. “We don’t make something and try to fi nd partners to integrate. We’re integrating with them way up front.”

“Pathway” to Corporate SuccessNetApp has four categories of partners, referred to as “pathways” inside the company: 1) technology/ independent soft ware vendors (ISVs),

NetApp Alliance Program Blazes Pathway to GrowthNetApp Alliance Program Blazes Pathway to Growth

N E W E D I t O r I A L F E A t U r E

spotlightmember


2) value-added resellers (VArs), 3) service providers and telecommunications companies, and 4) global system integrators (GSIs) such as Accenture, CSC, HP Enterprise Services, Wipro, HCL, Infosys, Cognizant, Atos, Fujitsu, and IBM Global Services.

It is this first pathway that is core to NetApp’s business. Service providers and enterprise customers are looking to build their own applications off the flexible cloud infrastructure, which has put pressure on the company to create and maintain tight relationships with leading technology companies. The company has dedicated resources for key technology partners such as Microsoft, Cisco, and VMware, and it has devoted additional assets to smaller and emerging technology players and ISVs.Although it has been a great challenge for NetApp to build out its large portfolio of core technology partnerships with ISVs, great and small, over the past decade, the company says the hard work is paying off handsomely in several ways. For one, NetApp now has a diverse set of offerings its salespeople and coun-terparts in partner organizations can leverage.“There’s a lot of complexity but then there’s a lot of adaptability in that stack now,” said Long.More important, the myriad of technology partner combinations are being used by other partner seg-ments to create mutual value for the partners and NetApp as well as the joint customers they share.“Our technology integrations are being picked up by GSIs and resellers,” said Ashley Eikenberry, director of alliance operations at NetApp.Long added that there is a good “triangulation with our GSIs and our key alliance partners.”Eikenberry said the challenge now is to increase aware-ness within its technology group on how NetApp-based stacks can help GSI and VAr partners sell to their enterprise customers and make sure information is being shared appropriately across all of its pathways.NetApp is evaluating “how we can leverage and share

information across these different partner types,” she said. “We’re making sure all the technology partners we’re working with—whether they are global [or] geography-based—have a way to connect with each other and also with other common pathways.”

Driving GrowthEikenberry says NetApp’s partnering philosophy is centered around three main objectives: 1) enable partner innovation, 2) be a good partner, and 3) provide differentiated business value. With these broader values as a guide, the company takes a bigger-picture view of how its partnerships can impact all aspects of its business—whether it be integration and development, go-to-market strategy, sales planning, common partner mapping, or executive-level influence.“We want to be working closely with companies like Cisco, Microsoft, and VMware, and look at how our teams can partner and how our company is going to partner across all aspects of business,” said Eikenberry. “How can we partner with one another to really take advantage of the market opportunity?”“Sometimes alliances get stuck in functional areas in the companies, and they don’t collaborate out,” added Long. “For us, it’s very cross-functional, across the board. One of the tenets of NetApp is cross-functional integration and innovation everywhere you are.”

Next Step: Continue to Drive Awareness of the Alliance ProgramFor NetApp to maintain the success of its collaborative selling efforts and drive continued revenue growth, Eikenberry says more formalized, systemic measures are required to evangelize the company’s capabilities and those of its partner ecosystem.“We’re continuing to innovate in how we ‘program-itize’ engaging our partners,” she said, citing recent examples of online initiatives in which NetApp and its technology partners showcased their joint solu-tions globally.However, staying true to its alliance-oriented business philosophy remains the key to staying ahead of the fast-moving cloud computing business.“We’re in this extremely volatile and adaptable chang-ing business environment [and] the bet we make with our partners is that they can help us manage that adaptability,” said Long. “It’s critically pointed out in our organization that alliances are [a] key way to grow and innovate.”And blaze new pathways to success. n

Although it has been a great challenge to build out its large portfolio of core technology partnerships

with ISVs, great and small, the hard work is paying off handsomely in several ways. For one, NetApp now

has a diverse set of offerings its salespeople and counterparts in partner organizations can leverage.

Beginning July 1, Members Will Have Nine New Ways to Earn PointsThis summer, ASAP is making it easier and more efficient than ever for members to secure and register qualification points toward CA-AM or CSAP renewal and to be eligible for the CSAP exam. Beginning July 1, ASAP will institute a new system that will feature:

Several new ways to earn points – 15 total point categories (up from six)

Straightforward criteria – categories are spelled out in greater detail

Fast and easy point processing

Members with current CA-AM or CSAP designations can still submit certification points under the current system up until June 30.

To submit points under the current system or to get a sneak peek at the new system, please visit ASAP’s Web site (www.strategic-alliances.org). For questions regarding point submission, please contact ASAP’s Certification Coordinator, Jennifer Silver, at +1-781-562-1630 ext. 205 or [email protected].

960 Turnpike Street Canton, MA 02021

Tel: +1-781-562-1630 Fax: +1-781-562-0354

www.strategic-alliances.org

ALLIANCEMANAGEMENTCERTIFICATION

Earning and Filing Certification Qualification Points Will Soon Be Easier Than Ever!

The ASAP Alliance Management Certification Program offers individuals the opportunity to demonstrate a mastery of skills in alliance management as well as in managing collaborative business relationships. The certification is based on the alliance competencies needed to successfully manage an alliance.

There are two levels of certification: Certification of Achievement–Alliance Management, the basic level of certification, and Certified Strategic Alliance Professional, the advanced level of certification. Individuals who are CSAP certified have demonstrated a command of the full life cycle of alliance management.

You are reading the Limited Edition of Strategic Alliance Magazine, the magazine of the Association of Strategic Alliance Professionals.

The printed magazine is mailed free to all ASAP members and Sponsors and is also available

as a paid subscription.

The complete PDF is available to members by logging in to www.strategic-alliances.org

For Membership and Sponsor information email [email protected]

or call +1-781-562-1630 ext. 200


WHEN It IS tIME tO END A StrAtEGIC PArtNErSHIP, the “departure” of an alliance

has much in common with that of an airplane. The work of the journey’s last leg has only

begun, not ended, and a lot of attention to detail is required to see the vessel to its destination—

including, sometimes, navigating through a fair bit of turbulence.

Heading for the Exit






or call +1-781-562-1630 ext. 200

19Quarter 2, 2012

Heading for the Exit






or call +1-781-562-1630 ext. 200







or call +1-781-562-1630 ext. 200

21Quarter 2, 2012


Too Important to FailGetting a Troubled Alliance

Back on Track By Christine Carberry, CSAP, and

Lynda McDermott, CSP

23Quarter 2, 2012

Too Important to FailGetting a Troubled Alliance

Back on Track By Christine Carberry, CSAP, and

Lynda McDermott, CSP

FrOM tHE OUtSIDE, tHE ALLIANCE LOOKED LIKE A HUGE SUCCESS.Aft er years of codevelopment in the risky business of pharmaceuticals, the two partners had launched a promising new drug that attained positive commercial results. revenue from the drug was a major growth driver for both companies, and there were plenty of opportunities to expand its value. So why was the alliance faltering? Let’s start where the alliance began.Th e alliance was formed more than nine years earlier when the drug was still in early development. Th e deal was a complex, global codevelopment and cocommer-cialization arrangement. Th e alliance required joint de-cision making, shared operational responsibilities, and equal profi t sharing. Since the risks and value of the alli-ance were unknown at the time of the deal and the drug was many years away from the market, the contract could only cover anticipated outcomes. Meanwhile, a lot had changed in the nine years since the alliance started, and dealing with those changes put stress on the relationship.

Navigating and anticipating change is a critical skill for alliance managers. Developments within

each organization, the joint teams, and the external environment can all aff ect alliance success.

Th e presence in an alliance of disruptive internal and external behaviors can

signal a need to take act-ion. In this instance, this type of conduct was clearly

observed, the alli-ance consequently

was in peril,

and a signifi cant eff ort was needed to turn the situation around. (See sidebar, “Fault Lines”)

The Tipping PointAs stress in this alliance grew, communications became more diffi cult. Joint teams were unable to resolve issues, and disputes were being escalated up to the Joint Steering Committee (JSC), the govern-ing body that served as the last step before entering formal confl ict resolution proceedings. Unfortunately, the JSC’s meetings were ineff ective, with issues simply left unresolved. Now, nothing seemed to be moving forward and value was starting to be left on the table. Given the critical importance of the alliance, two of the JSC members stepped in to force the companies to face the fact that they could not continue the alliance without making changes.

When a high-stakes alliance reaches this level of discord, the last line of defense is to bring in the highest-ranking offi cers to get the rest of the organization in line. Th e JSC members agreed to get the two companies’ CEOs to-gether for a meeting. Th ough the meeting was tense, both CEOs agreed that the drug alliance was too important to both companies to let the situation deteriorate further.

Now that the CEOs were engaged, everyone knew that fi xing the alliance was a priority. Part of this process entailed injecting fresh blood into the partnership. Know-

ing when to bring in someone new is an important aspect of managing long-term alliances. recogniz-

ing the need for change, both companies used the CEO meeting as an opportunity to appoint

new alliance managers. Th e two new alliance managers were

tasked with coming up with a plan to turn the

situation around.

Fault Lines What to Look For in a Faltering Alliance

Focusing on positions versus solutions

Communicating less and at a distance

Slow or stalled decision making, issue resolution, and progress

Drifting away from the original governance structure and discipline

Issues escalating too high in the governance structure

Lack of senior management engagement

The TurnaroundOf course, given the critical importance of the alliance to both companies and the level of complexity of man-aging an alliance in turmoil, these were not just any alliance professionals; they were very senior industry veterans who were comfortable with assessing the situation, developing a course of action, and openly discussing it with the JSC. Shortly after the CEO meet-ing, the six-person JSC was convened and the alliance managers proposed their plan.

The first recommendation was to engage an objective third party experienced in alliance management to diag-nose the situation. After initially resisting the idea, the JSC agreed to bring aboard a consultant with an unbiased view, untainted by the emotion of past events. From there, the alliance managers promised to report on progress at each subsequent JSC meeting.

Now, with an outsider’s perspective and a shot of energy from new alliance team members, the alliance had the feeling of a fresh start, and the new landscape allowed the alliance managers to avoid the pitfalls of dwelling on the past and dredging up old grievances that would just slow down progress. And with top executives closely engaged in the partnership’s affairs, team members now had good incentive to start self-correcting their behavior.

The external consultant started by meeting with the alli-ance managers to obtain an overview of the alliance and

get an initial perspective on how and why it was mis-aligned. The critical first step from there was to evaluate the original agreement and determine whether it was obsolete or still a viable framework for the partnership. If the contract was out of date or the value proposition was no longer viable, there was little use in trying to turn the alliance around. Fortunately for the partnership, every-one agreed that the alliance was still creating significant value and would maintain its worth to both compa-nies under the original agreement terms. (See sidebar, “Should This Alliance Be Saved?”)

Next, the alliance managers worked with the consultant to create an assessment. Armed with some preliminary information, they agreed to issue an electronic survey and interview a cross-section of team members to more specifically assess the alliance’s problems. In addition to the JSC, there were a large number of joint working teams responsible for various strategic and operational issues supporting the marketed drug and investing in its continued development. Moreover, the leaders of various functions—such as regulatory, Manufacturing, Drug Safety, Marketing, and Development—also played an important role in influencing the alliance even if they were not part of a joint team. All of these parties were surveyed as well as key stakeholders, including function heads and executives, to provide a comprehensive view of the alliance’s dynamics.

The results of the assessment showed that there was no quick fix to turn the alliance around. team members agreed that they had found ways to work through chall-enges under pressure in the past, given the tremendous importance of the alliance’s product; individual team members also had satisfactory working relationships with their counterparts. However, the survey revealed that senior management was not serving as a role model for an effective alliance. This led to confusion about decision-making authority, a lack of discipline, and the creation of ad hoc teams that existed outside the formal governance structure.

Take It from the TopThe alliance managers’ plan was straightforward: fix the JSC first, then align the joint teams and the rest of each organization accordingly—a top-down approach. This meant it would take more time to conduct the turn-around, but any other approach would have risked not addressing the root causes of many surfacing issues.

After an evaluation of the JSC, executives with even more seniority were added to accent its authority, while the alli-ance managers were added to round out its composition.


With an outsider’s perspective and a shot of energy from new team members, the

alliance had the feeling of a fresh start, which allowed the alliance managers to avoid the

pitfalls of dwelling on the past and slowing down progress.

Should This Alliance Be Saved?Before trying to turn an alliance around, evaluate the intentions behind the agreement

and assess whether there is still enough value to move the alliance forward.

Is the alliance creating the expected value for both companies?

Can additional value be created through the alliance?

Does the existing agreement provide a suitable framework?

Have the companies and/or the external environment changed in unanticipated ways?

Does the alliance still fit each company’s strategy?

25Quarter 2, 2012

Having the alliance managers actively participate in JSC meetings provided a conduit for communications be-tween and within each company. They were able to quick-ly debrief teams and stakeholders on JSC discussions and decisions even while formal minutes were in progress.

The new JSC members developed a charter based on the alliance agreement that outlined specific roles and responsibilities. The presence of a living, breath-ing document helped reinforce the importance of the JSC’s role in the newly revamped alliance. The char-ter also helped the JSC members understand how the contract could be translated into a working document. Finally, the JSC’s charter served as a template for the other joint teams to follow.

In parallel, the alliance managers took a hard look at the backlog of unresolved disputes. They worked together and engaged many of the functional leads to better un-derstand the root causes of disagreements and to find mutually acceptable solutions to them. Each alliance manager had to do significant internal work to separate true issues from mere preferences and internal process. By instilling an understanding that failing to resolve iss-ues meant the alliance was stuck, wasting time and los-ing value, this exercise helped bring focus to the alliance managers’ efforts. This openness and flexibility was re-warded; within three months of starting the turnaround, the JSC agreed to the resolutions and work started flow-ing through the alliance again.

Drifting AwayMoving down the chain, the next step for the con-sultant and the alliance managers was to address the underlying joint teams. Since the alliance was almost a decade old, they were not surprised to

find that several new teams and subteams had been formed over the years. Some of these informal groupings materialized around a specific need and remained in-tact well after they had completed their project.

teams were not clearly connected to one another, and over time sen-ior team members were replaced with more junior ones. Not surp-

risingly, the team discussions started to wander into more detailed tactical and operational issues that were out of scope. The drift away from the original govern-ance structure, the proliferation of teams, and the in-creasing team size made decision making more difficult. taken together, these factors explained why issues went unresolved despite being escalated up the governance ladder; the right people weren’t sorting out the issues.

The escalation process is critical in any alliance; if con-structed correctly, it collectively keeps both companies close enough to the details of an issue while maintaining the authority to make a decision when one needs to be rendered. Thus, additional work was done to reorganize team composition, establish individual team charters, and

restore discipline in working together. By streamlining


the team structure and clarifying the escalation process, the teams were once again able to handle issues at the appropri-ate level. If they needed to escalate a matter, they still owned the issue and the implementation of its resolution. Keeping these teams accountable meant that they needed to bring forward all relevant information to the next level above them; from there, they had to accept and live with whatever outcome resulted from that higher-ranking group’s deci-sion. Ironically, this decreased the number of issues being escalated, as teams began to understand that they were re-ally in the best position to find a solution.

The alliance managers kept the JSC informed of prog-ress and facilitated communications across the alli-ance. There was a fresh momentum now, and new ideas started to turn into proposals that obtained approval and moved into execution. Over seven months, the teams worked together to continue to re-fine how to work collaboratively and identify further improvements. The key was putting the agreements into practice and calling out any behaviors that were counterproductive to the alliance. There were diffi-cult conversations when a potential conflict started to

brew, but addressing issues head-on meant they were resolved before they turned into a stalemate. The alli-ance managers knew that their work would not end with the formal turnaround effort. Constant vigilance was required to keep making adjustments in the face of change and stay ahead of potential issues.

Celebrate and Move OnOf course, getting the alliance back on track was more than a structural issue. The alliance managers also had to rebuild morale and get staff members emotionally invest-ed again. The 10-year anniversary of the alliance proved to be well timed in this regard; it provided a significant milestone to celebrate the turnaround’s success.

Both CEOs attended the celebration, and a spirit of renewed commitment to the alliance could be felt throughout the event. A pause to celebrate the partner-ship’s success reminded each company why they were working so hard—to create value for patients, and for each of the two allied companies.

One year after starting the alliance turnaround, a jointly developed long-range strategic plan provided a clear framework for making investment decisions. It brought new value to the alliance by crystallizing the drivers for creating future value, discussing risks, and defining success factors. This new framework made operational decisions easier, since everyone agreed on the forward direction.

The turnaround was a success for this alliance, which was deemed “too important to fail.” Understanding that even highly strategic and valuable alliances can falter demonstrates the importance of having seas-oned alliance managers involved during all stages of an alliance. n

There was a fresh momentum now, and new ideas started to turn into proposals that

obtained approval and moved into execution. The teams worked together to refine how to work

collaboratively and identify further improvements. The key was putting the agreements into practice

and calling out any behaviors that were counterproductive to the alliance.

Christine Carberry, CSAP, currently consults with busi-nesses and organizations committed to delivering the value of collaboration. She has global alliance man-agement experience span-ning technology alliances,

contract manufacturing, codevelopment, and cocom-mercialization. She also has extensive experience in all aspects of product development, from research through life cycle management. She can be reached at [email protected]. Christine is an ASAP member and serves on ASAP’s board of directors.

Lynda McDermott is president of EquiPro International, a strategic consulting firm that specializes in alliance man-agement, strategic planning, and team/leadership devel-opment. She is the author of the best-selling book World

Class Teams and is a Certified Speaking Profes-sional (CSP). She can be reached at [email protected].

27Quarter 2, 2012

Strategic Alliance Magazine: Ipsen unveiled the direction of its overall corporate strategy last June. What business objectives are the focus of the alliance management practice in the next two to three years?Marc de Garidel: Ipsen’s long-term aspiration is to become a global leader in targeted debilitating diseases. Th e strategy we announced intends to capture the full potential of our core assets by focusing on, and investing in, a limited number of technological platforms and disease areas, as well as leveraging our existing global footprint to drive growth. We’ve implemented a market-oriented franchise model and are building a patient-centric r&D organization focused on our core platforms of peptides and toxins. Ipsen will now focus on four franchises: 1) neurology (with our drug Dysport), 2) endocrinology (Somatuline), 3) urology-oncology (Decapeptyl), and 4) hemophilia (through our partnership with Inspiration Pharmaceuticals). Our ambition is to more than double revenues and triple earnings before interest and tax (EBIt) by 2020. Partnering is a core aspect of achiev-ing this strategy. We partner across the business from research to marketing, so our alliance management practice is fully invested in ensuring that our many partnerships are aligned with this strategy and delivering the anticipated results. For example, our global Dysport franchise, which includes some very complex

partnerships, is an important component of realizing our intended growth. Th e alliance management team will be working both within our organization and with our partners to ensure that our fi nancial and pipeline objectives for the franchise are met. Th e business objectives of the alliance management practice and the overall business objec-tives are fully aligned.

SAM: What are your high-level expectations of Ipsen’s alliance manage-ment practice?de Garidel: Within Ipsen’s organization, alliance management is part of the corpo-rate strategy department. Th us, alliance managers have to not only manage the daily business of our collaborations, but maintain the longer-term “big-picture” view—to be able to understand what is happening on the ground level, but also understand how it impacts strategy—and take appropriate action to ensure that actions today produce the intended longer-term results. Th e alliance manager really needs to own the business and ensure that the alliances are managed from a fi nancial stand-point—to monitor the fi nancial perform-ance of our partnerships and the impact they have on our fi nancials. I understand from our team that this is a bit beyond the expectations of many alliance managers, but it is essential if alliance management is to be an integral part of the business.

Also, the alliance manager must ensure that everyone throughout the Ipsen org-anization understands what it means to be on an alliance team or a member of a governance committee—and is prepared to carry out their respective roles on those teams.

Additionally, it’s critical that alliance managers really understand their partners’ businesses. Th ey are my senior manage-ment team’s eyes and ears into the partners’ businesses. Th ey have to help us “see forward” in terms of the potential impact changes in our partners’ businesses may have on our own aff airs. I encour-age the alliance managers to invest all they can in learning and understanding the partner’s culture and to obtain a solid understanding of how we are perceived by that partner—sit on earnings calls, be face-to-face as oft en as practical, be aware of what is written about the partner. As alliances are seen as signifi cant creators of value for Ipsen, I expect our alliance management group to rally people and their resources to achieve the visions of our alliances—for the benefi t of both Ipsen and its partners. In that respect my objective is for Ipsen to be seen as a reliable, positive-minded partner that is

ceo forumQ&A with Marc de Garidel, Chairman and CEO, Ipsen GroupQ&A with Marc de Garidel, Chairman and CEO, Ipsen Group

A r E G U L A r F E A t U r E

The alliance manager needs to carefully monitor the fi nancial performance of our partnerships.

realizes the value of committed Alliance Management.

clinical | commercial | consulting | capital

The stakes are too high to go it alone. Anticipating pitfalls while embracing transformation takes a veteran guide. From start to fi nish, you need expert insights to recognize viable opportunities — supported by best-in-class resources to design fl exible solutions. It takes a culture dedicated to Alliance Management and to working harder to help partnerships succeed. More at www.quintiles.com/capital/alliance-management/

Co

pyr

ight

© 2

011

Qui

ntile

s

11QTC275-ASAP_Ad_M.indd 1 12/9/11 5:42 PM

realizes the value of committed Alliance Management.

clinical | commercial | consulting | capital

The stakes are too high to go it alone. Anticipating pitfalls while embracing transformation takes a veteran guide. From start to fi nish, you need expert insights to recognize viable opportunities — supported by best-in-class resources to design fl exible solutions. It takes a culture dedicated to Alliance Management and to working harder to help partnerships succeed. More at www.quintiles.com/capital/alliance-management/

Co

pyr

ight

© 2

011

Qui

ntile

s

11QTC275-ASAP_Ad_M.indd 1 12/9/11 5:42 PM

29Quarter 2, 2012

always trying to seek solutions to any issues that arise for the ultimate benefit of the partnership.

SAM: Most, if not all, portfolios have trouble spots. How does Ipsen go about evaluating and improving alliances that are not on track to meet objectives?de Garidel: Our major alliances are rigorously reported on to the execu-tive management committee, both in terms of performance and projections. We have a dedicated finance team just for alliance activity. We conduct annual strategic planning for each major alliance. Alliances are a key component of our strategy. This level of oversight, coupled with the operational assessments and day-to-day engagement of the alliance managers, gives us the ability to highlight and resolve problem areas quickly.

SAM: Ipsen is different from many organi-zations in that it reputedly does not require “champions” of alliance management to sell the discipline to the rest of the company. How does the alliance management group play a role in getting the rest of the organi-zation to make its alliances succeed?de Garidel: Alliances are so core to our business that nearly every function is touched by them. Our alliance man-agement group has also done a very good job in making themselves known to the different functions through a vari-ety of means, including presentations and educational sessions. The regular reporting to the executive management committee that I mentioned earlier is also critical.

SAM: What investments does Ipsen plan to make in its alliance management capability in 2012?de Garidel: In 2011 we separated our alliance management group from busi-ness development, and both are part of Ipsen’s corporate strategy department. In 2012, we are growing the team. So we are investing from a personnel

standpoint. We have also recognized that we have many positions across the business that have an alliance manage-ment component and are working to implement a center of excellence model that supports a dispersed capability to manage alliances, while maintaining a core central function that ensures a con-sistent approach to alliance management throughout the company.

SAM: Do alliances play a more import-ant role at a midsize pharmaceutical company like Ipsen than your average biopharma company?de Garidel: Alliances are how business is done today. At one point I might have said that they were more important to a company our size, but today, they are essential to every biopharma company’s strategy, regardless of size.

SAM: ASAP bestowed one of its Alliance Excellence Awards on the Ipsen-Inspiration alliance. How is that alliance progressing a year later, particularly in light of Inspira-tion’s hiring of a new CEO, CMO, and chief commercial officer?de Garidel: Ipsen and Inspiration were, of course, delighted to be recognized by ASAP with its 2011 Emerging Alli-ance Award, and the partnership has continued to develop significantly over the past year.Inspiration has moved forward with the development of the recombinant hemophilia portfolio. The lead product, IB1001, a recombinant factor IX (FIX) for the treatment of individuals with hemo philia B, has been filed with the European Medicines Agency (EMA) and is currently under review with marketing authorization anticipated by the end of this year. An application for marketing approval will also be submit-ted shortly in the United States.In addition OBI-1, recombinant porcine factor VIII, which is manufactured by Ipsen for Inspiration, is progressing well

and currently is in two pivotal phase III clinical studies—one for the treatment of bleeding in individuals with hemophilia A complicated by the presence of coagu-lation inhibitors, and another in people with acquired hemophilia. In preparation for the commercial

launch of IB1001 in Europe, Ipsen and Inspiration have extended their partner-ship with the creation of a European hemophilia commercial organization called Inspiration-Europe designed to leverage the combined strengths of Ipsen’s well-established European commercial infrastructure and medical network with Inspiration’s expertise in the field of hemophilia. This highly specialized com-mercial team will serve as the exclusive sales organization in Europe for all hemo-philia products commercialized under the Inspiration brand nested within Ipsen’s existing commercial organization.The addition of a number of individuals with significant commercial and medical experience in specialty pharmaceuticals to Inspiration’s senior management structure has provided further impetus to driving the alliance forward in its mission to establish a significant platform in hemophilia and make recombinant coagulation factor products more widely available to treat patients globally. n

Editor’s Note: Marc de Garidel was the keynote speaker at ASAP’s 2011 BioPharma Conference held in Basel, Switzerland. Ipsen is an ASAP Corporate Member.

N E W E D I t O r I A L F E A t U r E

Alliances are how business is done today. They are essential to every biopharma company’s strategy, regardless of size.

Past Alliance Excellence Award winners have tackled a variety of internal challenges and executed external corp-orate strategies to increase revenues, innovation, and posit ive impact on global society. And in an ever-changing worldwide business landscape, the 2012 honorees held up this tradition as they have every year since the inception of the awards in 2004.

“ASAP’s mission is to be the premier destination for alliance management knowledge, networking, and practices,” said Art Canter, president and CEO of ASAP. “The Alliance Excell-ence Award winners exemplify the best uses of the discipline and serve as a model for the rest of the business world. Our annual recognition Dinner gives professionals in the industry a chance to hear from leaders in the profession firsthand.”


AS IS tHE CASE EVErY YEAr, ALLIANCE MANAGEMENt PrOFESSIONALS from around the world gathered at the annual Alliance Excellence Awards recognition Dinner, an indelible part of the ASAP Global Alliance Summit in Las Vegas on March 7, to honor alliance initiatives and programs that are not only novel, game-changing, and just plain successful, but represent the most up-to-date thinking about the discipline itself.

ASAP Announces 2012 Alliance Excellence

Award WinnersOracle-Deloitte, SAS, Coherence

Highlight Best-of-the-Best in 2012By Jon Lavietes

Left to right: Russ Buchanan, CSAP, ASAP board chairman and vice president of worldwide alliances at Xerox; Scott VanValkenburgh, CSAP, senior director of alliance partnerships at SAS, accepting an Alliance Excellence Award; and Art Canter, president and CEO of ASAP

Left: Aaron Carson, senior manager at Deloitte Consulting. Right: Philip Sack, CSAP, APAC alliance director at Oracle and president of the ASAP Asia Pacific Collaborative Business Community.

ASAP2012ASAP2012

31Quarter 2, 2012

ASAP Announces 2012 Alliance Excellence

Award WinnersOracle-Deloitte, SAS, Coherence

Highlight Best-of-the-Best in 2012By Jon Lavietes

Oracle-Deloitte Capitalizes on Major Market Opportunity in Asia-Pacific It is almost universally acknowledged that if global businesses want to thrive in tomorrow’s world, they will have to capitalize on the tremendous opportunities pre-sented in the Asia-Pacific region. So it was curious that two global corporate behemoths—Global 100 company Oracle and leading professional services firm Deloitte, both of which had achieved great success on a corporate HQ level—had been slower to optimize their alliance to mine the region’s vast potential.

Deloitte and Oracle decided to rebuild their alliance in the Asia-Pacific region using a “start-up” approach—that is, reevaluating the alliance as if it were a new venture in and of itself. The organizations fused a hybrid of tools, processes, and methodologies from several disciplines—sales, marketing, project management, and yes, alliance management—that fit the needs of the alliance.

“Essentially we reinvented our alliance, sometimes in markets with no previous history of engagement success, by leveraging and tailoring combinations of business ex-pertise, relationships, and sales savvy,” said Philip Sack, Oracle’s APAC alliance director for Deloitte.

Oracle and Deloitte took a hard look at their product and services capabilities, as well as their relative engagement and market position within “niche” areas. They decided which geographic areas they could best serve, based on the complexity of the situation, the organizations’ internal history within each market, current market landscape, product/service compatibilities, time-to-market, and political feasibility within the organizations, among other criteria. Then, they went about stakeholder mapping—

identifying supporters and detractors in each relevant department and geographic territory, and recruiting the former to advance the cause of the alliance.

“We really unlocked our alliance by developing spec-ific relationships, understanding and navigating each organ ization, and having open and honest dialogue about how we can add value together for our joint clients,” said Robert Hillard, technology lead partner for Deloitte Consulting in Australia.

The next step was to expand support beyond those first champions of the alliance program—a particularly critic-al task in relationship-driven Asian cultures. Achieving those first joint Oracle-Deloitte customer wins provided the building blocks to expand the visibility of the alliance and gain additional backers. Those customer wins, and the people involved in bringing them to fruition, were celebrated within the organizations, and word began to spread that each partner could help the other mutually achieve their combined objectives.

“We have built good momentum within our identi-fied target areas, ‘becoming famous’ for our strong client focus and successful delivery capability,” said Teng Sherng Lim, director of Deloitte’s South East Asia Oracle practice.

With the visibility of the alliance expanding, the organ-izations moved to tailor the global programs to the specific needs of each locale. The alliance management group worked to provide the sales, marketing, and technical information needed for seamless knowledge transfer, delivery assistance, and relationship develop-ment with the teams on the ground in each country.

“The envelope, please...” Las Vegas Fox 5 television personality Jason Feinberg announcing the winners of ASAP’s 2012 Alliance Excellence Awards, with Russ Buchanan and Art Canter looking on.

Similarly, governance structures replete with workshops and executive reviews were implemented at the alliance and executive levels and adapted to each geography. This infrastructure facilitated conflict management, iss ue es-calation, trust building, and general discussions about new opportunities and the overall direction of the all-iance. Dave Farrelly, Deloitte Partner New Zealand, noted in this regard that “regular and consistent alliance governance is a critical component to developing the sup-porting ‘people infrastructure’ of an alliance partnership.”

This customizable cross-discipline approach has gener-ated significant momentum and improvements in sev-eral benchmark sales, marketing, customer, and alliance metrics for Oracle and Deloitte.

“We are seeing strong growth and momentum across our Oracle practice, with positive returns on the investment we have made through the alliance,” said Stanley Dai, partner at Deloitte China.

The success in boosting results across the Asia-Pacific region, the use of an innovative “start-up” approach, and the ability to collaboratively deliver successful customer outcomes has earned the Deloitte & Oracle APAC alli-ance the Emerging Alliance Excellence award.

SAS Aligns Resources to Optimize Management of Alliance Portfolio

With a team of 135 alliance management professionals and more than 300 partners in its base, ASAP Global Member SAS had a great challenge making sure resourc-es for its growing alliance operation were top-notch, eff-ectively deployed, and aligned with core corporate goals. An overhaul of its approach to managing its partner port-folio accomplished these objectives, earning SAS awards in two categories—Alliance Program Excellence and Innovative Alliance Practice.

SAS’s reorganization was centered around a brand-new partner portfolio scoring process. This multistep proce-dure entailed the development and application of new measurements of its partners, categorization of partners into new tiers, alignment of resources around the newly redefined partner base, and training personnel to execute new tasks associated with each partner type.

SAS began its scorecarding overhaul by assessing two broad attributes of each partner organization: 1) the value the partnership brings to the company, and 2) the partner’s overall alliance management maturity. to assess value, SAS developed what it called “GDP” metrics, a series of criteria that fit into three subcategor-


DEVELOP STRATEGIC MATURITY EXECUTION

MAINTAIN DRIVE REVENUE

DEVELOP STRATEGIC MATURITY EXECUTION

MAINTAIN DRIVE REVENUE

FIGURE 1:APPLY AND VALIDATE THE MEASURES

Partner MaturityTEA: Tactical, Emerging, Advanced

© C

opyr

ight

2010

, SAS

Insti

tute

. All r

ight

rese

rved

.

Part

ner V

alue

GDP:

Gro

w, D

iffer

entia

te, P

rote

ct

1 2 3 Tactical Emerging Advanced

1High

2Medium

3Low

Quarter 2, 2012 33

ies—Grow, Develop, and Protect. Concurrently, SAS classifi ed each partner’s maturity as tactical, Emerging, or Advanced—dubbed internally as the “tEA” meas-ures—based on their alignment, stakeholder commit-ment, joint business planning capabilities, governance, executive sponsorship and engagement, and dedicated alliance management resources.

“We wanted to make sure [these categories] measured the impact back to the strategy of the company,” said Scott VanValkenburgh, CSAP and senior director of alliance partnerships at SAS, in a presentation summ-arizing the award-winning program delivered at the Global Alliance Summit. “We wanted it [to be] part of the culture. Why that is really important was because every decision we were going to make—on our staffi ng, our approach, and our investments—was core to what we were doing, when, and why.”

Based on the GDP and tEA rankings, partners were distributed into fi ve tiers. Th e tiering provided a basis for determining where SAS makes investments and places bets to drive strategic execution with partners. With these delineations in place, SAS then had to align its internal staff to properly manage these collaborative relation-ships today, while developing them into more valuable and mature alliances in the future. Th e company dedi-cated single alliance management teams to partners ripe for expansion and introduced a new portfolio coverage model to focus on developing the value and maturity of a portfolio of partners. An individual alliance management team would be dedicated to all of the company’s technol-ogy alliances, for example, while a diff erent specialized team was charged with handling responsibilities for all consulting-oriented partner organizations. Hybrid one-

to-one and one-to-many teams were developed to main-tain alliances targeted for niche objectives.

Of course, to ensure execution of this newly aligned alli-ance portfolio, SAS needed to instill within its staff mem-bers the appropriate skills required for each partner type. Th e company created fi ve job functions and formally integrated them into the company’s Hr framework. SAS borrowed best practices from a variety of training organizations and blended its own SAS-specifi c skills to create a career development and training curriculum. In addition, every alliance management professional was required to obtain CA-AM or CSAP certifi cation from ASAP as appropriate to their job level.

SAS is now able to allocate the right level of resources for each partnership, including staff members with skill sets that fi t the particular needs of each alliance. Th e company can also reallocate its assets as the market changes and partner relationships evolve.

Coherence, Scotiabank, and Digicel Deliver Tcho Tcho Mobile e-Wallet to Aid Haiti Earthquake Recovery On January 12, 2010, a massive earthquake registering 7.0 on the richter scale ravaged Haiti, leaving in its wake widespread damage to the country’s physical infrastruc-ture and thousands of citizens living in tent cities. Among the damages were 35 percent of the country’s small net-work of bank branches and AtMs, which forced many residents to travel arduously long distances to retrieve cash or conduct fi nancial transactions. Many others were left with no means of accessing their money at all.

Continued on page 54

35Quarter 2, 2012

The State We’re InASAP’s 4th State of Alliance Management Study Shows Just How Far the Profession Has Come—

and Suggests Intriguing New Directions for Where It May Go Next

By Michael Burke


This is one of the key findings of ASAP’s 4th State of All-iance Management Study, coauthored by Luvison, Ard- Pieter de Man, CSAP, principal at Atos Consulting and professor at VU University Amsterdam, and their coll-eagues Geert Duysters, CA-AM, professor of entrepre-neurship at Eindhoven University of technology in the Netherlands, and Anyes Krijnen, a graduate of Eind-hoven University and project team member at LogiZ.

This fourth iteration of the study, which began in 2001 and was redone in 2007, 2009, and most recently in Sept-ember 2011, surveyed 272 individuals representing app-roximately 230 companies—both ASAP members and nonmembers—on the number of alliances they manage, their use of tools and best practices, the success of the all-iances in their portfolio, and other related questions. Acc-ording to de Man, about 50 percent of the respondents were U.S. companies, 25 percent were European, and the rest from the Asia-Pacific region and elsewhere around the globe. twenty-nine percent of respondents came from the realm of It, 23 percent from the pharmaceutical sect-or, followed by smaller percentages in other industries.

Among other conclusions unearthed in the study:– The number of “very alliance-intensive” companies—

defined as those with 40 or more alliances—is four times higher now than in 2007.

– Companies have made a substantial investment in alli-ance management tools since 2001, and the use of such tools and processes has increased—perhaps even to “the point of saturation”—but these tools are not always applied consistently across alliance portfolios.

– Companies that invest more in alliance management tend to perform better than those that try to “econo-mize” by scaling back investments in their alliance management practices.

– Alliance success is based not only on the “fit” between partners, but on their respective alliance capabilities.

– The better developed a company’s “alliance culture,” the better its alliance success rates.

– Alliance management is still not always in companies’ DNA. The average level of alliance culture found in the study was 3.2 on a scale of one to five. In other words, according to de Man, “Most companies do not yet have a strong alliance culture.”

Good QuestionsBoth Luvison and de Man presented some of the high-lights from the study at the recent ASAP Global Alliance Summit in Las Vegas. In his interactive talk, which closed the Summit, Luvison noted that while the use of alliance management tools has moved upward fairly steadily, from around 30 percent of companies surveyed in 2001 to around 80 percent in the most recent study, alliance succ-ess rates have remained relatively flat, hovering between 50 and 60 percent over the course of the decade.

This finding provokes a couple of questions: Why hasn’t the documented increase in the use of alliance tools and best practices led to greater alliance success rates? And was it ever reasonable to expect that it would? There is no one solid answer, but two more findings hint at poss-ible reasons: first, only a quarter of companies surveyed used alliance management tools consistently across their portfolios; second, much of the work of alliance management, according to Luvison, remains “over the transom—we’re still managing a lot of alliances we didn’t have much say in.”

A quote from the Study itself may also shine some light on this “mystery”: “Even though the results showed an

There’s room for improvement in alliance culture. People have the tools available,

but they think they can wing it.

Call it a Crossroads, an infleCtion point, or a plateau—alliance

manage ment is not where it was 10 years ago. as Dave Luvison, Csap, principal of

Misty Creek enterprises and professor at the Keller Graduate school of Management,

put it recently, “We’re now a profession. We’re not just making stuff up.” But now comes a

puzzle: while more companies are entering into more (and increasingly complex) all

iances, formalizing alliance management programs, and employing certified alliance

professionals who implement recognized tools and best practices for alliance manage

ment, alliance success rates have remained in roughly the same band over the last decade.

37Quarter 2, 2012

“Overall average performance levels beg the question: If on average we’re seeing a leveling effect, what are the questions alliance managers need to think about? Culture? Improving quality?”

increase [in average alliance success rates] in 2009 to 57%, the average alliance portfolio performance in 2011 has decreased somewhat to 53%. Interviews showed that this small decrease in the success rate, apart from maybe being statistical noise, may be caused by the economic recession, which appears to have affected marketing and sales alliances in the It industry in particular.” In-terestingly as well, the Study notes that ASAP members’ average alliance success rate is 56 percent, whereas non-members’ is 49 percent.

In his presentation in Las Vegas, Luvison polled the ass-embled audience via text message and email—yielding an admittedly unscientific yet fascinating sample—to elicit their own responses to the question of the relatively flat success rates. Of those polled, 40 percent cited a need to change organizational cultures, 27 percent said alliance managers need to refine their skills, 13 percent said that alliance managers need to be integrated early on into the partner selection process, another 13 percent said that the 60 percent success rate is probably “as good as it gets,” and 7 percent gave “something else” as the reason. (In some informal polling I did myself, people mentioned how all-iances have sometimes gotten stuck with “impossible sales quotas” in the down economy and thus weren’t as success-ful as expected, or as they might have been in the past. Under these conditions, there may in fact be a number of reasons why sales could decline that have nothing to do with how well an alliance is managed, so it may not be a fair measure of the quality of alliance management.)

Culture Club“If we look at companies that are successful,” said Luvison, “there are certain factors that seem to account for why. Metrics, performance pay, use of an intranet—better-

performing companies tend to use those things.”

In other words, they have an alliance culture. “We mea-sured [alliance culture] by looking at alliance values, partner focus, and alliance language and displays—we measured how companies use those on a scale of one to five,” said de Man. “There’s a lot of room for improve-ment in alliance culture. What is the relationship with the tools? Can you improve alliance culture by using these tools, or is it the other way around? The cause—why don’t they use it consistently—is it culture? People have the tools available, but they think they can wing it.”

As de Man indicated, both consistency of tool usage and the presence or absence of an alliance culture are critic-al elements, and one may influence the other. Luvison noted, “If you think of the mindset, and then the tools that somebody uses, people can be using these tools and pro-cesses, but using them in a culture that isn’t conducive to alliances—a culture that thinks it’s about using alliances for advantage over your partner, for example. People may fundamentally think a partner is somebody to be preyed upon, rather than to work with. That is the anomaly Ard-Pieter is talking about. Alliance managers are having to put more tools in place, maybe as an offset, a way of comp ensating, trying to do their job better in the face of the fact that the organization doesn’t support it.”

Alliance AnthropologyGiven that the study is in its fourth edition, it seems clear that each new study begets the next one, and its findings suggest promising future directions for new research.

“We have to look at what’s next,” said de Man. “We can still do a lot with this data we have, see what the relationship is between culture, tools, experience, and success. It will be interesting to monitor how culture develops over time in organizations. We’ve seen how interest-ing it is to follow these tools over a 10-year period. It will only add to the value of the study.”

It starts to sound a bit like anthropology, but again and again both de Man and Luvison explored the culture-tools nexus. “Using the results of the voting we did at my [Summit] session,” said Luvison, “people seem to feel culture is an important area. In fact they suggested it was the important area—the culture of alliance managers, the culture of the organization. There’s a lot of opportunity to tie that together with tools. The other area [to study] is, how effective and competent are alliance managers with these tools? That might be a new element to start thinking about. I’m personally of the opinion that culture is prob-ably something we should be paying more attention to.”

Deal Me InAnother important consideration for Luvison, and one that may merit further study, is the notion that things may go better for alliances when alliance managers are able to play an influential role early in their formation—“present at the creation” as nego-tiations are happening and deals are concluded.

“Even though the prescribed best practice is that alliance managers need to be involved from the beginning in strategizing the alliance, what I hear is that someone else in the organization forms the alliance and we have to manage it,” Luvison said. “to get a seat at the table and be involved early on would be of value. I was trying to suggest that’s a potential cause of the limitations [on alliance success rates]. That’s a real challenge—maybe that’s why 60 percent is a limit. We don’t really ask the question about where are you in the process. How much are you involved in the selection of the partner, in negotiations with the partner—we haven’t looked into that.”

The quality of alliance management practices in the partner’s org-anization is yet another crucial factor. As Luvison observed in his Summit presentation, you can have a world-class alliance manage-ment program, but if your partner’s is less than stellar, it can create problems in the relationship that may have a deleterious effect on the alliance’s success. “I always wanted to look into [partners], but the logistics and complexity—there are a lot of issues in how to re-search that, but it would be very interesting,” said de Man.

“You could certainly ask an alliance manager what their percept-ion is of their partner, and you’d get a rounded-off opinion,” added Luvison. “The holy grail would be to start doing this research in looking at participants in multiple alliances—measure experience,

team dynamics, etc. That would be intriguing. Maybe we can figure out an approach to do that.”

The Next LevelIn the end, Luvison feels the key takeaways from the study are the picture it paints of a maturing profession and the questions it implicitly asks about its future.

“two things I would emphasize,” Luvison elaborated. “One: The four studies over 10 years really suggest a profession that is starting to mature into certain kinds of practices and behav-iors, but the questions that remain now are qualitative questions. We need to start asking more nuanced questions about how and why people are doing things, understanding the effect of that on performance. two: Overall average performance levels beg the question: If on average we’re seeing a leveling effect, what are the questions alliance managers need to think about? Culture? Imp-roving quality? As pioneers in this profession, what are alliance managers going to do to take it to the next level? I’m not sure just using tools is the answer. And it’s obvious to me that not every alliance is going to be successful. If we can’t be at 100 percent, what is the right percentage?”

De Man agreed. “Alliance managers only want to see those numb-ers go up, but there’s always going to be failure, and we need to be realistic about it. What is a reasonable percentage? Look at mergers and acquisitions, reorganizations, and the introduction of new prod-ucts—the success rates aren’t very high either. There’s a clear limit. With mergers and acquisitions, 80 percent fail. With new products, 80 to 90 percent fail. With reorganizations, it’s also 80 percent, though it’s not well studied. [Compared with that], alliances are actually doing pretty well.”

While recognizing the many questions and ambiguities remaining, both de Man and Luvison are optimistic, seeing the “glass half full” where alliances are concerned.

“We’re at a more nuanced point now where we have to start thinking about those things and figure out how to transfer them across the profession,” said Luvison. “A number of people at the Summit pre-sented some interesting things, practices, shifts in how you manage alliances—now it becomes, how do you begin to capture and under-stand and implement them across the profession? It goes beyond just tools. The profession’s at a great point. The 10 years of study suggests that it’s matured quite a bit. If 10 years down the road we were still doing the same things as in 2002, we’d say we were stuck.” n

Editor’s Note: ASAP will make an online version of the 4th State of Alliance Management Study available to its members exclusively on a complimentary basis. A bound version will be published for pur-chase by members ($59.99) and nonmembers ($199). For more info-rmation on availability and how to order, check the ASAP website for updates (www.strategic-alliances.org) or contact Pam Goodell at [email protected] or +1 781-562-1630 ext. 202.


E D I t O r I A L S U P P L E M E N t


For Better or Worse

How Understanding Personality traits Can Help You Effectively Mitigate and Manage

Alliance ConflictBy John R. Hayes, M.D., David S. Thompson, CA-AM,

and Steven E. Twait, CSAP

We all know that different personalities react to conflict in different ways. Facing perceived danger, one person

might shy away, another might freeze in his tracks, and another might jump in with both feet. But what if we

conducted a deeper investigation into the source of the situation and examined which personality types or

traits might be likely to cause significant conflict in the first place? Taking this question one step further is espe-

cially important in the context of alliance management: once we recognize the traits we’re dealing with—in

ourselves and others—what actions do we take to ensure that our alliances stay professional and productive?

39Quarter 2, 2012


In a previous article on managing conflict in alliances (“Man-aging Alliance Conflict,” Strategic Alliance Magazine, Quarter 1, 2012), we noted that understanding “perceptual filters” was critical to reframing and resolving discord. Personality plays a key role in defining those filters and the percep-tions that come from them. On one side of an interaction, personality informs and affects what we say and do. On the other side, as we take in and process the actions of some-one else, personality typically governs much of our reaction to those perceptions. Given the pervasive role of personality in human relationships, those who have a solid understand-ing of personalities have the ability to make a significant, positive difference when managing alliance conflict.

Personality PrimerTo begin, let’s talk about the word “personality,” which we use often in a descriptive context. “That guy has personality!” conveys a sense of social appeal, for example, while “He has no personality” conveys the opposite. As a working defini-tion, let’s use the Bing Dictionary’s definition of personality: “the totality of someone’s attitudes, interests, behavioral pat-terns, emotional responses, social roles, and other individual traits that endure over long periods of time.”

Over time, behavioral scientists have grouped character traits into several widely accepted personality types. Each of us has a personality with some collection of characteristic behaviors and responses. Our friends or family could describe us as being a certain kind of person. However, most people have some flexibility, and when their usual style doesn’t work or causes problems, they tend to try out other styles. When personality traits are so rigid that they create barriers to rela-tionships and success, they become an obstacle in an alliance that needs to be managed. A psychologist might say that someone with a single, rigid style of coping and interaction has not just a personality, but a personality disorder.

Know What to Look ForPeople with two kinds of personalities seem to have more trouble in alliances than other types—and when these character traits rise to the level of a personality disorder, it usually spells trouble in an alliance.

The first is the obsessive-compulsive personality. Such a person is deeply interested in all the details and risks of an alliance and often takes an annoyingly long time to make a decision. This need to collect data and know everything can be attributed to their neurotic need to minimize the risk of

mistakes entirely and maintain full and complete control of the situation—two impossible goals in the world of alliance management.

The second type is the narcissistic personality. These are people who need to be right all the time, to win in every situation, and who cannot tolerate the perception that they have “lost face” in a conflict. Narcissists are very easily offended and become angry quickly when someone disagrees with them.

As noted, most successful people will have elements of each of these personality extremes. But when these traits get in the way of having a normal, joyful, and productive life, it pushes a personality into the disorder category.

While it would be impossible to offer comprehensive psychology training in the short space of this article, we do hope that the set of tools we provide will help you man-age—or proactively minimize—conflict that is heavily influenced by an individual’s personality.

Be ProactiveOrganizing and facilitating governance meetings is a com-mon activity for alliance managers. Obsessive-compulsive and narcissistic personalities can be managed using a combination of tools and techniques before, during, and after alliance meetings. The techniques detailed below are designed to help you avoid needlessly triggering a negative reaction and to assist you in dealing with one, should it occur despite your best efforts.1. Eliminate as much uncertainty as possible prior to a governance meeting or other interaction. First, make certain that the food and shelter components are taken care of and communicated. The obsessive-compulsive person, for instance, cannot focus on the big picture in a meet-ing if he or she is uncomfortable about items everyone else might consider minor details. Alliance managers can help such people avoid conflict and be productive by working diligently to get those details taken care of early and by avoiding change whenever possible. For some people, if they don’t know where they are going to sleep, when they are going to eat, where the restroom is, exactly when things will happen, and who is in charge of what, they cannot talk about other issues! 2. If you do have to make a change in a meeting, communicate it early. Produce an agenda prior to convening any meeting, and make sure all key individuals have the chance to provide

40 Special Editorial Supplement to Strategic Alliance Magazine sponsored by Eli Lilly and Company


input or feedback. Once the agenda is agreed upon, stick to it as closely as possible. Get to the meeting early and make sure that everything is set up and works the way it is supp-osed to. If something isn’t going according to plan, decide how you are going to remedy the situation before every-one else shows up. Handling the details proactively will help the obsessive-compulsive person focus on the main issues instead of bogging everyone down in the details. For the narcissistic person, consider communicating any issues on a one-to-one basis. Singling them out before the meeting will make them feel special, so they will be able to contribute immediately rather than be disruptive by having to establish their own importance. 3. Make sure that you have a well-understood set of ground rules for your meeting. Ground rules should include who is in charge of the meet-ing, how minutes will be taken and approved, and how topics will be introduced. Avoid “walk-in” items unless absolutely necessary. If you must have a walk-in item, use the time to set up the problem and, if possible, set a later date to make a decision.

4. If you believe that a compromise will be necessary, make sure that all parties have a face-saving way to come to that agreement. Be gracious. Point out the areas that you can agree with in the other person’s argument. Choose your words carefully, making sure you don’t use loaded language (words that carry strong positive or negative implications, beyond their literal meaning) that may trigger an explosive, nonproductive reaction.5. Know in advance what your boundaries are. How much are you willing to give on a particular topic? How hard are you willing to fight? How much nonproductive behavior are you willing to tolerate before you take some type of action? Ponder these things and decide prior to the meeting what your limits will be. Make sure that you choose appropriate boundaries and then follow through. If these things are done in advance, then the detail-ridden person will be reassured that things are under control and the self-important person will be pleased that their input has been heard and incorporated.

Plan Your Own ReactionsWhile the person with an obsessive-compulsive personal-ity will be more productive in meetings if you help them by managing the details and keeping things under control, the narcissistic person will be a better contributor if you work to minimize confrontation and mitigate the risk they will feel their status is being threatened.

If during the meeting something goes awry, these tech-niques can help you get things back on track:1. If you have contributed to the problem in any way, stop

and apologize for your part in it. Apologizing for your part in an unpleasant exchange does

not mean that you agree with everything the other party says. It does, however, demonstrate that you are willing to own your part of the conflict.

2. Suggest a path that will get the group back on track and acknowledge the positive contributions that each side is making.

If the issue has too much emotion to intervene immediate-ly, take a break and allow people time to regroup. During this time, be polite and make sure that the other party has a place to meet privately and talk, have a cup of coffee, or be able to engage in other self-soothing activities.

Diagnostic Criteria for Narcissistic Personality Disorder Include:

Grandiose sense of self-importance

Believes that he or she is “special”

Requires excessive admiration

Interpersonally exploitative

Lacks empathy

Shows arrogant, haughty behaviors or attitudes

Diagnostic Criteria for Obsessive-Compulsive Personality

Disorder Include:Preoccupied with details, rules, lists, order, organization, or schedules

Shows perfectionism that interferes with task completion

Excessively devoted to work and productivity to the exclusion of leisure activities and friendships

Reluctant to delegate tasks or to work with others unless they submit to exactly his/her way of doing things

Shows rigidity or stubbornnessSource: Diagnostic and Statistical Manual of Mental Disorders, 4th Edition, American Psychiatric Association, 2000.

41Quarter 2, 2012

In partnership, there is strength

An Office of Eli Lilly and CompanyAn Office of Eli Lilly and Company E-mail [email protected] for more information.

Since 1999, Lilly’s Integrated Alliance Management professionals have helped companies maximize the value of partnered assets. With strong roots in governance and relationship management, we excel at problem solving and value-chain integration at all stages of discovery, development, and commercialization.

As an organization and as individuals, we are committed to the success of every partnership we manage. By staying true to mutual goals—and by doing everything necessary to achieve them—we help partners realize the value inherent in every strategic alliance.


John R. Hayes, M.D., is a psychiatrist who has been a medical school profes-sor, a clinician, president of a large health system, and vice president of Lilly research Laboratories, where he led several major cor-porate alliances. Dr. Hayes is currently the executive director of the National Network of Depression Centers, an alliance of 21 comprehensive academic depression centers committed to improving care for persons with depression and bipolar disorder through research, education, reduction of stigma, and informed public policy. John can be reached at [email protected] S. Thompson, CA-AM, is chief alliance offi cer at Eli Lilly and Company and is a member of the ASAP board of directors. At Lilly, Th ompson is responsible for establishing and maintaining all major development, commercial, and partnership activities and oversees the integration of

companies brought into Lilly via mergers and acquisitions. In the fi eld of alliance management, Th ompson is recognized for his pioneering use of decision sciences and as an expert in managing alliance confl ict. He also has developed a suite of innovative training materials for executives whose role includes the management and implementa-tion of strategic partnerships. A graduate of the University of Arizona, Th ompson earned degrees in chemistry and Spanish literature as well as an MBA at the Eller School of Business. He can be reached at Th [email protected], +1- 317-277-8003.Steven E. Twait, CSAP, is senior director of alliance management and M&A integra-tion at Eli Lilly and Company. twait leads teams focused on maximizing the value of partnered assets at each stage of the develop-ment cycle of development, commercial,

and manufacturing alliances. A found-ing member of Lilly’s Offi ce of Alliance Management, twait has played an integral role in some of the largest development and commercial alliances in the company’s hist-ory, including worldwide partnerships with Bristol-Myers Squibb, Boehringer Ingelheim, and Daiichi Sankyo. He served on ASAP’s BioPharma Council as well as the advisory committee for the ASAP Certifi cation and Standards Project. twait earned a bachelor of science degree in electrical engineering at Valparaiso University and an MBA at Indiana University’s Kelley School of Busi-ness. He can be reached at [email protected], +1-317-276-5494.

3. Try to let everyone know how important they are to the process, and then get the group back together and discuss the next steps forward.

If the topic is still too hot, agree to take it up after some agreed-upon period of time, and then focus on other topics that need to be addressed.

4. If the confl ict somehow manifests itself in writing, move to have a face-to-face or phone/video conversation.

If you fi nd that the dialogue can only be conducted in writing, make sure that you are removing any loaded words. Have a trusted colleague read the document before you send it, and if the subject has legal implica-tions, by all means have a company attorney review the letter before it goes out.

5. Consider changing the environment if you know some-one’s personality will make progress impossible. Sometimes, the self-important personality type who

absolutely has to win simply cannot successfully participate in an alliance. For such people, the whole concept of an “alliance” is foreign, because their personalities dictate that they should always come out on top. When it becomes apparent that someone in your alliance group has such a personality, the best course is to fi nd a way to help them bypass alliance meetings, but that often requires that you help them save face in the process.

If an alliance leader with narcissistic or obsessive-

compulsive tendencies asks to join in a particularly challeng-ing or tense interaction, for example, you can provide an alternative and off er him or her a face-saving way out:— “You’ll be able to stay visible to keep the team motivated if

you stay back at corporate.”— “None of their senior management will be attending the

meeting.” — “We plan to get down in the weeds in this session.”

The techniques we describe above to manage person-ality-related confl icts during meetings can be used in other common situations for alliance managers as well. For example, alliance managers should thoughtfully consider who should participate at the negotiating table during contract or amend-ment negotiations. Or, when developing contingency plans to mitigate potential alliance risks, the alliance manager should consider solutions that meet the needs of the alliance leader with narcissistic or obsessive-compulsive personality traits.

Know ThyselfThe more you know about personality, the better you will become at managing confl ict. However, the key to being good at helping people whose personalities make them infl exible is to be fl exible yourself—to mold your own behaviors and responses to the needs of the moment. You have to know well the people with whom you work, but perhaps one of the best adages is, “Alliance professional, know thyself!”

43Quarter 2, 2012

What Legal Needs You

To Know


S t r At E G I C A L L IA N C E M AG A Z I N E | S P E C I A L F O C U S | L E G A L E A S E

How to Negotiate a Contract That Lays a Foundation of Success

for Licensing DealsBy Elana Bertram

allianCe ManaGers are often involved in the neGotiation of neW deals,

and when you get the chance to influence the details from the outset, you set yourself up for success. Many

strategic alliances include bilateral license agreements, where each party gives a product or service and

takes a license or benefit from the other. By understanding the rights and responsibilities of each counter

part, the alliance manager gets the tools to manage the relationship for the best possible outcome. it’s im

portant to close the deal, but it is just as crucial that the alliance manager understands what “the deal” is.

45Quarter 2, 2012


Fortunately, tremendous insight from current and former in-house counsels representing a variety of industries exists to guide alliance managers on how to maximize success when negotiat-ing or renegotiating a deal. The resounding cry from the experts is that the negotiators—whether lawyers or not—often rush too quickly to close the deal without considering how the contract binds either party in case of a disagreement. For alliance manag-ers, the key is to focus on knowing your product and your client, knowing the ongoing obligations and triggers of each license, and treating each part of the contract as vital to your success.

Know Your ProductThe alliance manager gains a great advantage by having a thorough understanding of his/her company’s product. Don Ghostlaw, curr-ently in private practice and former general counsel of several soft-ware companies including OutlookSoft Corporation (now a part of SAP) and Caminus Corporation, urges alliance managers to under-stand what your company is offering, why a license is the right way to market it, and how the license is supposed to work. These questions have very different answers if you are licensing trademarks, patents, or other proprietary information. Depending on your role and the range of products, this could include a lot of homework for a new alliance manager, even if you have years of experience at a different company. take the time to ask questions of your management and legal team so that you are prepared to interact openly with your counterparts.

When you know your products with authority, it frees you to use more creativity. As in-house counsel for the Multiple Myeloma re-search Consortium, Inc. (“MMrC”), Karen Dietz, JD, MBA, acts as the lead negotiator on multiparty clinical trial agreements between several academic medical centers and pharmaceutical companies. Some of these clinical trials involve multiple drugs, which means mul-tiple stakeholders. This could have created a confusing situation as to which company controls the resulting intellectual property, but Dietz

led the MMrC to create a novel solution: a coexclusive license should the clinical trial result in any new intellectual property. A coexclusive license is an agreement in which multiple parties legally own result-ing intellectual property and are permitted to use it in-house for their own purposes, but cannot license it outside the partnering organiza-tions without the consent of all the colicensees. “While having either a nonexclusive license or an exclusive license is the most common,” Dietz explained, “a hybrid of using a coexclusive license is a great com-promise solution where there is more than one major stakeholder.” These types of compromises might bring complications, so alliance managers must be confident that they understand every facet of the invention before rearranging an agreement that is working well.

After learning what they need to know about their product, Ghostlaw urged alliance managers to “get deep on basic intellectual property principles.” Understanding the goals of an agreement helps you bring the partners onto the same page. “Depth is key to successful negotia-tions,” Ghostlaw continued.

Know Your Company and Business PartnersNow that you understand what your company can offer and why counterpart companies want access to it, keep an eye out for the details. There is no one-size-fits-all template. Even a simple renewal of a previously successful deal for the same product between the same two companies is different the second time around because the marketplace has changed.

Because technology develops so fast, a large amount of damage

Take the time to ask questions of your management and legal team so you’re prepared to interact with your counterparts.


StrAtEGIC ALLIANCE MAGAZINE | SPECIAL FOCUS | LEGAL EASE

resulting from a breach can compound very rapidly. Ideally, the alliance manager will smooth out misun-derstandings through strong relationships and atten-tive, specific feedback as the relationship progresses. However, when the license agreement includes clear benchmarks for determining when a party is in breach

of the contract and provides a way to address that under performance, it gives you more tools to repair the relationship and avoid litigation. What is considered “boilerplate” contract language—in other words, the bor-ing stuff—is there to help you manage the relationship.

Indemnification and its complement, insurance, are vital factors in protecting your company. Unfortunately, it’s not as simple as implementing a company-wide policy to insist on indemnity. Ted Weitz, partner at Halket Weitz LLP, warns that “indemnification is only as useful as the resources of the indemnifying company.” For example, if your counterpart company is an untested start-up, its indemnity is valueless if it goes out of business; in that situation, separate insurance is a much safer bet. Like-wise, if the product is a one-use custom software build, the vendor has less incentive to protect underlying IP because it has no ongoing value. In contrast, a vendor of a more standard product will want to assume its defense to ensure the best chance to continue to sell that product.

Weitz emphasized appreciating the size and corp orate culture of both your company and your counterparts. For example, structured escalation clauses can be particularly helpful if one or both of the companies is a large organization with many layers of authority. Weitz explained that the hope is, in a time of misun-derstanding, that “cooler heads will prevail and there will be fewer personal issues that block agreements.” In a smaller organization, however, these benefits are lost. In the same vein, Weitz discourages multiple layers of mediation and arbitration built into an agreement. “By the time you’re done, it ends up being costly, you have disclosed a lot of information about your company, and you aren’t guaranteed a good outcome.”

Alliance managers must balance the health of the on-going relationship with the competitive interests of their corporation. Sometimes, the fine print can expose im-

portant details. Lee Grosskreuz Hechtel, deputy general counsel of nutraceutical maker NBtY, Inc., stressed diff-erentiating between royalty and nonroyalty licenses, be-cause they trigger different levels of financial disclosure to partners. She contrasted a raw materials purchase where the quantity is finite (for example, selling a supplement containing Acme Brand açaí berries) with a royalty-based license (selling a supplement marked with the image of a fitness guru) where the licensee must disclose how many units have sold and pay a royalty per unit. A royalty-based license will typically allow the licensor to audit the confidential financial statements or sales records of the licensee. This level of disclosure is not to be treated lightly, especially if there is no volume-based royalty.

“Get a Thicker Skin”Most alliance managers thrive in the detail-oriented, client-centered environment described above and may be disinclined to approach partners with defense in mind. Basam Nabulsi, formerly IP counsel at US Surgical and now a partner at McCarter & English LLP, shared that sometimes nonlawyer negotiators misread the critical eye cast on contract terms by the other party’s attorney. “Lawyers know it’s their job to anticipate the ‘divorce’ when arranging the ‘marriage.’ Simply contemplating the ‘divorce’ is not a threat to the success of the relationship, and sometimes non-lawyers will take it too personally that it’s an expression of lack of confidence or mistrust.” Nabulsi continued by expressing confidence that this is an easy hurdle for nonlawyers to overcome; they simply need to “get a thicker skin.”

It’s understandable that client-facing businesspeople are reluctant to “talk like lawyers,” but that’s not an ex-cuse to be loose-lipped. Nabulsi described the dance between parties as “like an art form, so long as it stops short of making statements you’ll regret later.” Be mind-ful of making off-the-cuff statements that could be relied upon by the other party. Nabulsi recounted an experience where a single smoking-gun e-mail was blown up poster-size during a heated renegotiation because it clearly stated that one party knew there was an infringement of rights. You don’t have to “talk like a lawyer” to walk the fine line between overselling and closing a deal.

Common PitfallsCarolyn Blankenship, currently vice president of Intell ectual Property at Thomson reuters (an ASAP Corporate Member), shared that the biggest fights her companies had been embroiled in dealt with the indem-nities clause. Because allegations of infringement are unavoidable in today’s marketplace, it is essential to put

Lawyers know it’s their job to anticipate the “divorce” when arranging the “marriage.”

Alliance managers may need to “get a thicker skin.”

47Quarter 2, 2012


the risk of litigation costs on the party in the best posit-ion to prevent those costs. The party that has the ability to ensure to the best of its knowledge (for example, the patent applicant or inventor) that the IP is established should indemnify its licensee. Understand, however, that if the licensor indemnifies the licensee, the licensee will probably not have the option of selecting counsel or deciding whether to settle a suit. These details should be discussed with your in-house legal team before being brought up in counterpart negotiations.

Hechtel reminded us of something that might fall through the cracks in the haste to close a “sweet” deal: check the expiration date on all patents. Watch out for the “opportunity” to pay for five years of use when there are only three years remaining on a patent. Further, include in the license a clause where trademark and patent own-ers are obligated to renew rights. Patents and trademarks require maintenance payments and specific renewal fil-ings, and if these dates are missed, the IP rights vanish.

Hechtel also encouraged alliance managers to lock down a renewal option at a prenegotiated price. Much of this article has been a caveat for situations where the deal may go badly. Conversely, if the deal goes ex-tremely well, it behooves a licensee to have the option to renew at a preferential price.

It is vital to keep channels of communication open dur-ing the course of the license. Nabulsi and Hechtel both recounted experiences where exclusivity was expressly granted in the license agreement, yet the licensor per-mitted another licensee to use the product in the same territory. While this is not an automatic trigger for harsh words or a lawsuit, it is critical to clarify the rights your company has paid for as early as possible to minimize damages. Even so, don’t think of your litigation attorneys as police; think of them as Special Forces soldiers called in only for extreme extraction.

Your Legal Team: A Resource, Not an EnemyOrganizations such as the Licensing Executives Society and the Practising Law Institute offer educational oppor-tunities that are appropriate for lawyers and nonlawyers alike. Whether the relationship grows and flourishes or ends in “divorce,” time spent on the front end understand-ing why your products are valuable or what your comp-any gains from its counterparts will lead you to establish thorough and realistic licensing agreements that reflect a reasonable allocation of rights and responsibilities.

The legal community generally agrees that touching base with your legal department is never a sign of weakness or an annoyance. In fact, it’s a great “out” of a meeting where you may feel outgunned: if the other side shows up bristling with attorneys, adjourn the meeting until you can bring in your own counsel. You don’t need to wear both the negot-iator and the lawyer hats. Alliance managers have a broad scope of responsibility in negotiating and maintaining dyn amic licenses, so don’t hesitate to bring in legal experts when the going gets rough or very technical. As much as an agreement makes two companies “teammates,” remember that your in-house legal team is on your side as well. n

Attorney Elana Bertram is lic-ensed to practice law in Connecti-cut and before the United States Patent & Trademark Office. Her law firm, Hawley Legal Resourc-es, LLC, turns big ideas into small businesses by establishing robust intellectual property protection

for inventors, then shepherds these products through the stages of funding, licensing, and sale. She graduated mag-na cum laude from Quinnipiac University School of Law and earned her B.A. in biological sciences from Mount Holyoke College. Elana is an ASAP Member.


Get Me Legal!






or call +1-781-562-1630 ext. 200

49Quarter 2, 2012







or call +1-781-562-1630 ext. 200








or call +1-781-562-1630 ext. 200

51Quarter 2, 2012







or call +1-781-562-1630 ext. 200


The only media dedicated to your profession

SuPPort tHE MEdia tHat SuPPort Youn Sponsor ASAP Media Properties and Increase

Visibility of Your Alliance Practicen Showcase Your Expertise Through Contributed Articlesn Pitch Story Ideas That Advance the Conversationn Demonstrate Thought Leadership by Custom

Publishing research and Collateral n Establish Industry Leadership via Our CEO Forum

Sponsor ASAP Media today and help us continue to bring coverage of the issues that matter most to the alliance management community and beyond.To sponsor or get involved, contact: John DeWitt, Publisher, at [email protected], +1 646-232-6620.

Strategic Alliance Magazine | Collaborative Buzz | Netcast Web Seminar Series | ASAP eNews ASAP TV and ASAP TV Live! | Books & Custom Publishing

53Quarter 2, 2012







or call +1-781-562-1630 ext. 200


Continued from page 14

Quintiles Partners with American Diabetes AssociationASAP Global Member Quintiles and the American Diabetes Association announced in April a strategic agreement in which Quintiles’ Digital Patient Unit will provide the Association’s millions of Web site users access to Quintiles’ medication monitoring service.The Association’s constituents who opt in for the service will receive free safety checks of their medications to identify potential interactions and other risk factors, which are already provided to the 2.5 million registered users of Quintiles’ www.MediGuard.org. registrants will also be eligible to participate in select direct-to-patient programs to benefit their medical conditions and advance global diabetes patient care. The Association’s constituents may opt in to this service

from the Association’s Web site www.Diabetes.org. All registrant data will reside on Quintiles’ privacy-safe, Digital Patient Platform. Quintiles’ Digital Patient Unit will manage the patient relationships from this platform, continuously providing up-to-date medication safety information and introducing members to direct-to-pa-tient clinical research, observational studies, and disease management opportunities.

Saba Goes Back to SchoolASAP Corporate Member Saba, a leading provider of people-centric enterprise solutions, announced that Stanford University’s Education Program for Gifted Youth (EPGY) is leveraging Saba’s real-time Collaboration Suite, including Saba Meeting and Saba Classroom, to create a rich, highly interactive online community for pre-collegiate students. In addition, Saba Classroom facilitates seminar-style classes that have served more than 60,000 EPGY students since 1996. n

Collaborative Buzz

Alliance Awards Continued from page 33

In less than a year, strategic alliance consultancy Coherence orchestrated an alliance between Scotiabank, Canada’s third-largest bank, and Digicel, a major telecommunications op-erator in the Caribbean and Central America, that brought to market the tcho tcho Mobile e-wallet, a product that is now enabling thousands of banked and unbanked Haitian citizens to safely and securely store, access, and spend their money electronically through their mobile phones. For its role in facilitating this partnership, Coherence earned Cor-porate Social Responsibility honors in 2012.

to produce this new offering in such a short amount of time, the players in the alliance had to work out a wide variety of cultural issues. First, Scotiabank and Digi-cel were used to completely different industry speeds. Where the banking industry generally prefers to delay a product launch until a product is completely integrated, telcos like Digicel were accustomed to getting products to market in rapid succession. Moreover, with years of experience conducting large-scale business in the region, Digicel knew how to serve this market segment, which included decent-sized portions of the population that live on as little as $5 per day. Conversely, Scotiabank was more comfortable working with developed international markets and thus had to rethink its risk profiles.

to overcome these challenges, Coherence had to take its client Scotiabank through several basic tenets of alliance management. Although Scotiabank was less experienced in utilizing strategic alliances to achieve core business ob-jectives, Coherence found its client very willing to learn.

“Scotiabank recognized early that partnerships represent the new frontiers of success and that leveraging new tech-nologies will play a significant role in the emergence of new financial services,” wrote Martin Echavarria, man-aging partner at Coherence, in the company’s nomina-tion form for the tcho tcho Mobile initiative. “For the bank, this was the first alliance in which the development and management of the financial product was so inter-twined with another company.”

Early in the project, Coherence set up workshops to help Scotiabank and Digicel illuminate and overcome the aforementioned differences in corporate and regional culture. representatives from the two allied companies were put through several exercises designed to illus-trate what each wanted from the partnership, including one in which they mapped out the infrastructure using Legos building blocks. Coherence helped the companies institute the resulting governance structure and rules of engagement—sans the actual plastic children’s toys—that would define and organize how the two companies would work together moving forward.

Only a mere six months separated Scotiabank and Digicel’s first meeting and tcho tcho Mobile e-wallet’s commercial launch, earning the product a $2.5 million “first-to-market” award from the Bill and Melinda Gates Foundation. today, more than 400,000 tcho tcho Mo-bile e-wallets are carrying out millions of transactions enabling Haitians to receive direct payments from em-ployers and purchase goods and services directly from a variety of retail businesses. n

55Quarter 2, 2012






or call +1-781-562-1630 ext. 200


960 Turnpike St, Canton MA 02021 USA

Tel: +1- 781-562-1630strategic-alliances.org

[email protected]

Discover a World of Fun(and Networking, PLUS Professional Development)When You Join Your Local ASAP Chapter

Every day, you tirelessly champion the value of alliances and alliance management – but sometimes you just want to go where everybody knows your name … and doesn’t need you to explain what an alliance manager does for a living.

That friendly, welcoming place is your local ASAP Chapter.

ASAP’s worldwide network of chapters – spanning 19 regions and four continents – provides face-to-face networking and close-to-home professional development for alliance managers and collaborative business professionals. Whatever your in-dustry, you’ll find common ground with fellow alliance professionals in your local ASAP chapter.

ASAP members convene locally for mixers, cocktail hours, seminars, training sess-ions, panels, speakers, and other events. Local chapter members share everything from best practices to job opportunities, discuss pressing issues and common challenges, and further develop individual and team skills.

Find your local ASAP chapter – and learn about upcoming chapter events – at www.strategic-alliances.org/content/chapters. We promise you’ll have a good time – in your new professional home away from home.

For more information about ASAP Chapters, contact Lori Gold, Manager of Member Services: [email protected] or call 781-562-1630 ext. 203.

57Quarter 2, 2012

PeopleForce’s clients hail from the private, public, and community sectors. The company works with boards, managing directors, CEOs, other senior executives, and teams and employees at the levels below these professionals.

PeopleForce Builds and Manages Strategic Relationships in AustraliaAustralia-based PeopleForce is a con-sultancy that aims to energize the key strategic relationships of companies and networks of organizations by developing trust and instilling know ledge-sharing practices. PeopleForce applies its unique processes and past experiences to gener-ate extraordinary conversations within teams, organizations, networks, and comm unities about creating successful future possibilities.

PeopleForce aims to engender trust-ful relationships that result in high-performance work environments and build relationships that deliver value; develop agile, responsive, and respon-sible organizations and networks; and break down organizational silos.PeopleForce’s clients hail from the private, public, and community sectors. The company works with boards, manag-ing directors, CEOs, other senior exec-utives, and teams and employees at the levels below these professionals.For more information, call +61 (7) 3856 0470.

Ex-Lilly Veteran Delivers MORE Alliance ServicesMichael O. ransom Enterprises, LLC (MOrE), is a client-oriented consult-ancy that provides strategic collab-oration services. MOrE assists clients with developing a strategic collabora-tion strategy and helps them identify, establish, manage, and assess strategic collaborations and business alliances.

MOrE’s specific formal offerings include:– Global strategic collaboration

management strategy development– Partnership assessment/due

diligence– Acquisition and merger integration– Organizational design and team

effectiveness– Governance development and

implementation– Conflict resolution– Collaboration operations

management support– Organizational change

management– Development and implementation

of training program(s) in strategic collaboration management

– Strategic collaboration leadership mentoring and coaching

Michael O. ransom, the firm’s princi-pal, recently retired from Eli Lilly and Company after a two-decade-plus stint at the biopharmaceutical giant. He last served as the director of operations for the Office of Alliance Management (OAM), overseeing current business activities and expanding capabilities across the enterprise through a period of transition.For more information, please contact +1-317-430-5177 or [email protected].

Alliance Ventures Handles Variety of Alliance EngagementsAlliance Ventures helps companies grow through strategic alliances and partnerships and work with their part-ner businesses to access complement-

ary strengths. The company has the ability to play a variety of roles in its client engagements—from adviser to facilitator to joint venture managing partner. Alliance Ventures can address several areas of an organization, inc-luding key customers, sales channels, competitors, suppliers, corporate in-vestors, and service/product providers.

The company’s experience covers several diverse industries, companies of all sizes (pre-start-up to $50 billion multination-als), and several geographies and cultures in the United States, Asia, and Europe.For more information, call +1-415-989-1889.

To be part of Solutions Marketplace, e-mail [email protected], call +1 781-562-1630, or write to Association of Strategic Alliance Professionals, 960 Turnpike Street, Canton, MA 02021 USA.

Solutions Marketplace

Selected Products and Services for and from Strategic Alliance Professionals


In a conversation with ASAP Media last fall, ASAP’s vice chairman Jack Pearson , CSAP, told us that one of the most critical tasks of an alliance manager, and by extension of an alliance management practice, is to think about a partnership’s potential well beyond its immediate purpose.

“One of the objectives with any type of partnership is to look for additional synergies or other opportunities to enhance the value of both partner organizations,” he said.

As with the Summit, we have oft en seen alliances accomplish more than the goals initially intended. But many times, making this happen is not so easy or obvious. Whether it is a product or process that yields far greater benefi ts than originally envi-sioned—think of the molecule that ends up applying to several therapeutic areas—or market dynamics changing in your favor that suddenly make you a partner of choice to a gateway comp-any that will open up new customer segments, you don’t always know when and how a partnership can bring additional value.

But more oft en than not, driving an alliance to go above and beyond takes innovative, out-of-the-box thinking and a collective eff ort. An

outsider can sometimes see things you couldn’t from your limited perspective. Perhaps that person knows of an individual or company that happens to have a complementary capability or intellectual property you heretofore did not think existed. Maybe a group of people representing a diverse range of industries, cultures, and/or personalities can discover new ways to utilize a product, service, or capability—or adapt it to a diff erent market.

It doesn’t always happen, that’s for sure, and as we all know, alliance success is never preordained. But gathering together several—or several hundred—alliance professionals, who are used to thinking three steps ahead and looking out for challenges and opportunities others won’t discern, is a great way to increase the chances of fi nd-ing a whole new way to derive additional benefi ts from a strategic alliance, or an alliance portfolio.

ASAP likes to categorize its extensive array of services into three broad areas: resources, professional development, and networking. Combine all three, as happened at the Global Alliance Summit, and you get what may constitute a fourth category: the unforeseen, the unexpected, the novel and the innovative. What we might call “alliance serendipity” is oft en the result. n

Alliance SerendipityWhen Hundreds of Partnership-Minded Folks

Encounter Each Other, We’re Enlightened by a Multitude of New Possibilities for Our Alliances

By Jon Lavietes and Michael Burke

IN EArLY MArCH, HUNDrEDS OF ALLIANCE PrOFESSIONALS CONVENED at the ASAP Global Alliance Summit at Caesars Palace in Las Vegas to network, obtain alliance management certifi cations, hear outstanding speakers, take part in interactive sessions, hone the basic individual skills of the discipline, and, no doubt, have a little fun in a city that’s dedicated to just that. But in a positive version of the law of unintended consequences, many of them ultimately came away with signifi cantly more than they bargained for.

the close

Are you getting the best Return on your Alliance Relationships?

Getting value from your alliances begins with a compelling value proposition. With it, you’ll achieve:

•A Compelling Reason to Buy your joint partner solution•A Compelling Reason to Partner based on a business case•And—mostimportantly—a Compelling Reason to Sell to drive sales engagement

Phoenix Consulting Group’s practices and services help companies maximize their Return on Relationships™.

Now you can learn what companies like Adobe, Cisco, IBM, and PayPal have done to create effective value propositions that return real value on their relationships.

Act now to get a free copy of our latest white paper, Optimize your Return on Relationships™. In it, you learn not only how these top companies have crafted their value propositions with partners, but also how they turned them into plans of action that created value for joint customers.

downLoad our free white paper now Access Optimize your Return on Relationships™ and other resourceful white papers at www.phoenixcg.com/resource-center/research.htm.

Partners in Best Practice™

w w w. p h o e n i x c g . c o m 1 8 8 8 8 4 8 9 5 1 4

Download your Free Copy of our white paper

Optimize your Return on Relationships™

from: www.phoenixcg.com/resource-center

All too often, even the best-laid alliance plans run astray upon implementation. They set transformative goals but don’t succeed – because the ability to

execute is an afterthought.

Plan with execution in mind. Your collaborative vision can’t bear fruit without the ability to execute. No one understands this better than Alliancesphere. Our client-centered, outcome-driven approach delivers

end-to-end alliance management strategy and execution. We work hand-in-hand with our clients to identify goals, jointly develop partnership strategy,

design programs, and execute them in the field – supporting the entire alliance lifecycle from inception to realization.

Execute with the customer in sight. Alliancesphere’s approach builds a bridge between the collaborative vision of your board room and the front lines where alliances ultimately succeed or fail. Our expertise and experience – both as corporate executives and as pioneering practitioners of the alliance management profession – guide our clients to make execution-savvy strategic, operational, and sales plans aligned with partner goals and (most importantly) the ultimate customer’s needs. Then, our proven frameworks empower your organization to execute – supported along the way by the sure hands of Alliancesphere experts who know what it means to lead a team and carry a bag.

Transform with confidence. From collaborative innovation to collaborative selling, Alliancesphere helps some of the world’s largest organizations confidently develop game-changing strategies to transform their organizations and realize the full potential of their alliances and other collaborations. Alliancesphere’s approach empowers our clients to drive billions of dollars in collaborative revenues each year, across the Americas and around the world.

Realize your collaborative vision. Empower your organization to succeed. Contact Alliancesphere today at +1-404-607-7620, [email protected], or visit www.alliancesphere.com.

Plan.Execute.Transform.Keep your best-laid collaborative plans on track with Alliancesphere.

Alliancesphere, LLC 1 Premier Plaza, 5605 Glenridge Drive NE, Suite 200, Atlanta, GA 30342 Phone 404.607.7620 Fax 404.607.7624Questions and Inquiries: [email protected] www.alliancesphere.com

Strategic Alliance Magazine

Documents

Transcript of Strategic Alliance Magazine