Strategic Alliance Magazine Limited Edition

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

...this time,what happens in Vegas

gets spread ’round the world.

Sorry, no secrets...

✓ Attend informative seminars and expert panels

✓ Get group and one-on-one training and coaching

✓ Take the CSAP Certification Exams

✓ Hear keynotes by alliance management’s leading experts and practitioners

✓ Network with colleagues – renew longstanding relationships and make new connections, in your industry, across industries and sectors, with peers from every corner of the globe

✓ Recognize and honor the profession’s greatest achievements at the Alliance Excellence Awards Banquet

✓ And yes, it’s Las Vegas, so having fun is not optional – even if your idea of fun is debating alliance governance strategies over a cup of double espresso.

Don’t gamble with your professional development. Mark your calendar today for the ASAP Global Summit, March 5-8, 2012, in Las Vegas, Nevada.

960 Turnpike St, Canton MA 02021 USA

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

[email protected]

Register Now – You Will Not Want to Miss the

2012 ASAP Global Alliance SummitMastering the Art and Science of Alliance

March 5-8, 2012 – Caesars Palace, Las Vegas, Nevada, USA

Con�dent. Credible. Capable.

5Quarter 1, 2012

Building a Bridge To Emerging Markets

EMERGING MARKETS IN ASIA HAVE BEEN ALL THE RAGE for quite some time now. It’s generally accepted that the market opportunities in the region represent some of the corporate world’s biggest opportunities in the short and long term.

Th e Work Performed to Establish Fruitful Relationships in Rising Asian Countries May Serve

as a Gateway to the C-Suite for Alliance Management

By Art Canter

In a discussion we had in putting together our staff -written piece on alliances in the region, one of our interviewees relayed a conversation in which a multinational company’s C-level executive said he should teach his kids Mandarin so they are prepared for the China-dominated business world that fi gures to be their adult reality.

Th at anecdote did not make our story, but it illustrates the bigger truth acknowl-edged by many: we all need to learn how to work with China and its continental neighbors. Who within a typical corpo-ration fi gures to be better at building this bridge to emerging Asian markets than the alliance executive? Alliance managers are not just at the forefront of establishing relationships; they are constantly learn-ing all of the rules—written and tacit—and the general lay of the business cul-tural landscape so that marketing, sales, R&D, and other parts of the organization have a clear blueprint and path to achieve company goals with minimal setbacks.

More important, the alliance manager has the patience and empathy to execute a successful initial foray into these countries.

Where C-level executives and other com-pany departments might be tempted to put short-term profi ts and the company’s immediate needs ahead of what is best for the relationship down the road, alliance managers are used to taking as long as two years or more to derive value from part-nerships. Add the complexities that come with learning the ropes of a new culture, and Alfred Griffi oen, CSAP, of Alliance experts says in our feature, this patience is especially virtuous.

“In all partnerships, it’s about mutual un-derstanding, especially if you’re talking about cross-cultural partnerships,” said Griffi oen. “Th e basis of mutual under-standing to start with is smaller. You have to work harder on that specifi c aspect.”

Of course, convincing the C-suite to have this patience returns us to a point we have touched on from many angles since the debut of Strategic Alliance Magazine: you need to have their ear fi rst! Although the work performed in future geographies of power will build another bridge to the C-suite, alliance executives will need more avenues for dialogue with C-level executives to in-

fl uence strategy and further align their practices with company vision. Along those lines, our new CEO Forum col-umn sponsored by Quintiles debuts in this issue with the company’s chief executive Dennis Gillings sharing his thoughts on alliance management. In future issues, CEOs of other companies will lend their perspectives on what they expect from their alliance man-agement practices, the value they are bringing, and the areas in which they can improve.

In the meantime, with our special sec-tion on building an alliance culture, we hope this issue continues ASAP Media’s quest to serve less as a bridge and more as a ladder for your profes-sional development.

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

up front

Register Now – You Will Not Want to Miss the

2012 ASAP Global Alliance SummitMastering the Art and Science of Alliance

March 5-8, 2012 – Caesars Palace, Las Vegas, Nevada, USA

in this issue

Strategic Alliance Magazine

22 n ALLiANCE CULtURE

Non-Alliance Personnel Training Increases Organizational Partnership StrengthIf You Want Your Organization to Consistently Practice Effective Collaborative Business Principles, Training Non-Alliance Workers Involved in Partnerships Is Essential | By Jon LavietesIn most organizations with an alliance management practice, there are many non-alliance employees who delve partially into partnership activities or func-tion as de facto alliance managers—they are often several times more in number than there are actual alliance management personnel. If a company is to consis-tently practice a high level of alliance management execution, it must identify these employees and educate them in the tenets of sound business collaboration.

18 n COVER StORY: ALLiANCE CULtURE

Growing Alliance Culture: Has Your Company Started Yet?

If So, Keep Up the Good Work (Because You Already Know There’s More Work to Do).

If Not, Here’s How | By Michael BurkeWith alliances becoming increasingly important to more companies and industries, organizations find that they need to rapidly remake themselves so they incorporate an “alliance culture” that

enables partnerships to thrive. Companies can nurture and grow new processes and ways of thinking that will help them to become more alliance-enabled.

Quarter 1, 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.

26 n ALLiANCE MANAGEMENt iN tHE SPOtLiGHt

The 2012 ASAP Global Alliance Summit PreviewLas Vegas Is the Place to Be in March, as ASAP’s Global Alliance Summit Presents the Latest in Collaborative Thinking, Strategy, and Techniques | By Michael Burke They say that what happens in Vegas, stays in Vegas—or maybe on YouTube—but it’s a good bet that much of what takes place at this year’s ASAP Global Alliance Summit will end up spilling out of the conference rooms like coins from a slot machine jack-pot, and ultimately will be spread around the worldwide alliance community.

ASAP2012ASAP2012

7Quarter 1, 2012

5 n UP FRONt | By Art CanterThe work performed to establish fruitful relationships in rising Asian countries might simultaneously serve as a gateway to the C-Suite for alliance management.

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

Regular Features:16 n OUR tHANKSOur opportunity to say Thank You to our Charter Benefactors and ASAP Media Sponsors whose support helps make Strategic Alliance Magazine possible.

36 n SOLUtiONS MARKEtPLACEProducts and services for and from strategic alliance professionals.

30 n ALLiANCE AWARDS

Recognition Dinner Highlights Global Alliance SummitAnnual Event Celebrates 2011’s Most Innovative and Successful Initiatives, Companies, and Individuals in Alliance Management | By Jon LavietesAs is the case each year, the 2012 Global Alliance Summit will pause to honor the profession’s best and brightest. On the evening of March 7, 2012, attendees of the Summit at Caesars Palace in Las Vegas will gather for a banquet at which the 2012 Alliance Excellence Award winners will be announced and celebrated. Here are this year’s nominees who have cemented their places as leaders in the alliance management community.

37 n SPECiAL EDitORiAL SUPPLEMENt

Managing Alliance ConflictConflict Is Inevitable. How You Deal with It Can Be the Difference Between Success and Failure By David Thompson, CA-AM, John R. Hayes, MD, and Steven E. Twait, CSAPEvery alliance reaches a crossroads when the parties encounter a conflict. This apparent difference of opinion or philosophy represents an inflection point of the partnership. How the parties handle the disagreement can have major implications for the ultimate results of the alliance. Sponsored by Eli Lilly & Co.

33 n NEW EDitORiAL FEAtURE: CEO FORUM

Q&A with Dr. Dennis Gillings, CBE, Chairman and CEO, QuintilesIn our inaugural CEO Forum feature, Quintiles CEO Dr. Dennis Gillings touches on alliance structures, shifting to a smaller R&D structure, mitigating risk, the increasingly collaborative nature of outsourcing relationships, alliance culture, and the general success factors for alliances. Sponsored by Quintiles.

Quarter 1, 2012

The magazine of the Association of Strategic Alliance Professionals

Strategic Alliance Magazine8

46 n SPECiAL FOCUS: EMERGiNG MARKEtS

Partnering to Maximize Rewards in Pharmerging MarketsAlliances Allow a “Think Globally, Act Locally” Approach to Opportunities in Developing Markets | By Jack W. Pearson, CSAP, MBAOpportunities abound for biopharmaceutical companies in grow-ing nations—“pharmerging” markets. Yet the actual results of their engagements in these countries have been mixed. Adopting a strategy informed by local insights and experience is crucial, but to increase the chances of success, pharmaceutical companies need to keep a few principles in mind. Allying with a partner with local expertise and proven alliance management capabilities has been shown to be a superior approach to quickly establishing a presence and gaining expertise while limiting resource commitments and risks, particularly when the local partner has an understanding and appreciation of cultural differences and Western standard business practices.

58 n tHE CLOSE

Making the Alliance InvestmentCompanies May Be Parsimonious with Their Cash—But There’s Good Reason to Increase Investment in Alliances and Alliance Management | By John W. DeWitt and Jon LavietesThe climate of uncertainty continues to impact our global economy and the investments companies are willing to make. Even though market forces seem to lend themselves to increased investment, on the surface, companies are still reluctant to spend money on capabilities that will position them for growth as the economy continues to recover, including alliance management. Fortunately, in a time when investing in alliance management is essential, any level of dollars committed to alliance management still provides tremendous value.

ASAP BOARD & MARKEtiNG COMMittEE CHAiRS

Russ Buchanan, CA-AM ASAP Chairman of the Board

Vice President, Worldwide Alliances, Xerox Corp.

Jan Twombly, CSAP Chairman, ASAP Marketing 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, 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.

42 n SPECiAL FOCUS: EMERGiNG MARKEtS

Translating Success in Asia As the Business World Tilts Further Toward the Eastern Hemisphere, Companies Need Local Partners to Help Navigate These Emerging Markets—and Quickly! | By Jon LavietesTo thrive in Asia, you need a local partner who knows the particulars of the culture, politics, and physical landscape itself. Even if you don’t think you do, sometimes it’s simply the law. Here’s how to select your local ally and how that organization can help you succeed in the region while the market opportunities are still ripe.

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 Our New Alliance CompendiumReceive “Making Alliances Work,” our new collection of complimentary Vantage Partners Alliance Management publications—including some of Vantage’s most requested HBR articles, white papers and research fi ndings on the topics of alliances, negotiation, relationship management, and change management. To request your copy of “Making Alliances Work,” visit www.vantagepartners.com/ASAPAllianceCompendium.aspx

Check Out Our New Alliance CompendiumReceive “Making Alliances Work,” our new collection of complimentary Vantage Partners Alliance Management publications—including some of Vantage’s most requested HBR articles,

Helping Companies Negotiate and Manage Critical Relationships

9Quarter 1, 2012


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Join ASAP today to validate your specialized career skills that have become increasingly critical to the business world through our certifi cation programs. Also get valuable networking, professional development, research, and other resources that will help advance your career in alliance management.For more information contact: Jennifer SilverCertifi cation [email protected] call 781-562-1630 ext. 205

960 Turnpike StreetCanton, MA 02021

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

www.strategic-alliances.org

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. Th e certifi cation is based on the alliance competencies needed to successfully manage an alliance.Th ere are two levels of certifi cation—Certifi cation of Achievement–Alliance Management, the basic level of certifi cation, and Certifi ed Strategic Alliance Professional, the advanced level of certifi cation. Individuals who are CSAP certifi ed have demonstrated a command of the full life cycle of alliance management from inception to termination.

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CONtEXt SKiLLS Business skills required in alliance man-agement, not unique to the role.

Communications Skills Confl ict Resolution Negotiation Skills Financial Management Change Management Project Management Team Management Leadership Th rough

Infl uence Problem Solving and

Decision Making

CORE SKiLLS Critical com-petencies specifi c to the role of alliance management.

Creating Strategic Alignment Value Proposition

Development Governance Alliance Metrics Setting Operating Principles Joint Business Planning Alliance Negotiations Organizational Alignment Relationship Management Transition Cultural Considerations

COMPANY SKiLLS Knowledge elements unique to company and competitive environments.

Company Strategic Imperatives

Industry and Technical Drivers

Organizational and Functional Structure

Company Governance Company Partnering

Culture

ALLIANCEMANAGEMENTCERTIFICATION

What’s inyour future?

11Quarter 1, 2012

AstraZeneca’s business focuses on the discovery, development, and commer-cialization of prescription medicines, primarily in six areas: gastrointestinal, cardiovascular, neuroscience, respira-tory and inflammation, oncology, and infectious disease. Its key top-selling medicines include the cholesterol drug Crestor ($5.7 billion in sales in 2010), the schizophrenia/bipolar/depression meds Seroquel IR and Seroquel XR ($4.1 billion and $1.2 billion in 2010 sales, respectively), and the asthma treatment Symbicort ($2.7 billion in 2010 sales). The company employs more than 61,000 people in over 100 countries worldwide, including more than 14,000 in North America and more than 8,000 in the United Kingdom (and nearly 20,000 in Sweden and the rest of Europe). Louis Schweitzer is the chairman of AstraZeneca’s board, and the company is headed by CEO David Brennan. Alliances and other forms of collabora-tion are very important to AstraZeneca’s business and continued growth, as evidenced by Silico Research’s ranking it second overall in its 2010 BioPartnering survey and first for trust and alliance management. The company has a number of initiatives ongoing that also express its commitment to partnering (see related story below).“At AstraZeneca, we’ve been partnering for more than 30 years, working not only

with a whole range of other businesses, but with academia, governments, NGOs, patient groups, and venture capitalists,” said Shaun Grady, vice president of stra-tegic partnering and business develop-ment. “Every year we enter into hundreds of collaborations and partnerships. In the last three years alone, we’ve sealed more than 80 significant deals, individually designed in our own core therapy areas and beyond.”AstraZeneca also shows its commitment to collaboration in its in-house Alliance Management Center of Excellence, led by Nick Dunscombe, head of alliance management at the company. According to company informational materi-als aimed at partners, the Center of Excellence “[utilizes] our strengths and learning from previous collaborations and [applies] input from yourselves. We constantly aim to improve our processes and capabilities and apply this learning to all alliances so that we effectively respond to the requirements of every individual alliance in a rapidly changing environment.”Both ASAP and AstraZeneca look forward to working together and to AstraZeneca’s joining the ranks of the growing number of companies that truly “get it” when it comes to the value of alliance management and the importance of creating and nurturing alliances orga-nization-wide as an enterprise capability.

ASAP NewsASAP Announces New Certification CoordinatorASAP welcomes a new staff member to its hardworking team: Jennifer Silver has stepped into the new position of certification coordinator. Jennifer now manages all administrative aspects of the association’s certification program, including responding to requests for information and processing certifica-tion applications.

Prior to joining ASAP, Jennifer had been in the meeting planning industry, working both on the vendor side and on the corporate level. While on the vendor side of the industry, her client base represented a variety of industries and organizations, for whom she was responsible for onsite coordination of meetings and events. Jennifer has also previously worked for a large insur-ance company in its meeting planning department, where she handled site selection, planning, and executing of sales meetings and roundtables.Welcome, Jennifer!

ASAP Welcomes New Global Member: AstraZeneca

By Michael Burke

ASAP is very pleased to report the recent news that the global pharmaceutical company AstraZeneca has made the leap from ASAP Corporate Member to join the ranks of ASAP Global Members. The London-based company, which has a U.S. headquarters in Wilm-ington, Del., now joins such high-profile firms as Dell, Microsoft, Xerox, IBM, and Cisco Systems, as well as leading biopharma companies Eli Lilly, Quintiles, Abbott, Novartis, and Sanofi, in the pantheon of ASAP Global Members.

Collaborative Buzz

AstraZeneca joins the growing number of companies that truly “get” alliance management.


ASAP and ASAP Partner EventsRTP Chapter EventNights of the “Alliances” Roundtable February 13, 2012, 5:30 – 7:30 p.m. EST Mez Restaurant, 5410 Page Road, Research Triangle Park, N.C., USA (to register visit www.strategic-alliances.org)

ASAP Netcast WebinarAligning Your Organization with Your Collaborations February 15, 2012, 11:00 a.m. – 12:00 p.m. EST (to register visit www.strategic-alliances.org)

Chicago/Midwest Chapter EventDeveloping Alliances in China: Due Diligence, Negotiation, and Sustaining February 21, 2012, 6:00 – 8:00 p.m. CST PF Chang’s, 530 North Wabash Avenue, Chicago, Ill., USA Speakers: Doug Oshana, Director Global Solutions & Services, Neusoft; and Bill Liu, Vice President, NaviAsia (to register visit strategic-alliances.org)

2012 ASAP Global SummitMastering the Art and Science of Alliance March 5–8, 2012 Caesars Palace, Las Vegas, Nev., USA (to register visit strategic-alliances.org)

Alliance NewsDisney and GM Renew Alliance—But They’re Closing the Epcot Test Track?!The Walt Disney Company and General Motors have announced that they have renewed their long-term business relationship with a new multiyear corporate alliance. As just one part of the agreement, GM will be actively in-volved with Walt Disney Imagineering in the development of a reimagined, redesigned Epcot Test Track ride. First the bad news, for fans of Test

Track—the popular Epcot ride that simulates driving a car through a variety of conditions, including 50-degree banked curves, uphill and downhill, through hot and cold zones, over bumpy surfaces, and so on—alas, plans call for closing the current GM Test Track in April 2012. But not to worry—the unveiling of the new “Test Track Presented by Chevrolet” is scheduled for fall 2012, and from all accounts the well-loved Epcot attrac-tion is getting a serious upgrade.The redesigned and refurbished Test Track will be presented by one of GM’s iconic brands, Chevrolet. As Chevy marks its 100th anniversary, the new alliance agreement enables General Motors to tell its story in new ways to millions of Disney guests from around the world and to continue as the official vehicle sponsor of Walt Disney World Resort.“We are excited to renew our long-term alliance with General Motors,” said George Aguel, senior vice president of corporate alliances for the Walt Disney Company. “This unique agreement extends collaboration between two of the most recognized brands in the world, a relationship that spans over 30 years. The reimag-ined Test Track Presented by Chev-rolet will continue our shared goal of providing unique and innovative experiences that engage Disney guests in exciting and interactive ways.”“As a global brand, Chevrolet is look-ing forward to welcoming guests from around the world to the reimagined Test Track,” said Joel Ewanick, global chief marketing officer for General Motors. “The best of Disney and the best of Chevrolet will come together to bring guests an immersive experi-ence in the design process of the vehicles they see on the road today and will see in the future.”As part of the redo, the Future World attraction will feature a sleek new “Chevrolet Design Center at Epcot,” bringing Epcot guests into a

simulation of the world of automotive design. Amid upbeat music, engaging media, dramatic lighting, and an array of Chevy concept cars and model ve-hicles, guests themselves can become automotive designers—and gaze into the future of personal transportation. At interactive workstations, visitors will be able to create their own custom concept vehicles before strapping into their six-person “SimCar” vehicle to put their design through its paces on the exhilarating hills, switchbacks, and straightaways of the Test Track circuit. With performance testing complete, drivers will move into a post-show area filled with special effects and be scored on how well their vehicle did. Finally, guests will be able to see the very latest Chevrolet vehicles in an all-new state-of-the-art showroom.

AstraZeneca Crowd- sources Experimental Drugs to Researchers, Forms New Office to Pursue CollaborationsThe UK-Swedish pharmaceutical group AstraZeneca will give outside scientists full access, free of charge, to more than 20 experimental drugs on which it has ceased research in an effort to boost medical discovery, according to the Financial Times. The company will offer academics the chance to study its compounds—most of them still under patent protection—and to analyze the results of safety and efficacy tests it has conducted on these drugs in animals and humans.By “crowdsourcing” the compounds to leading scientists, the company hopes to spur the development of new treatments, offering AstraZeneca the prospect of commercial gain while reducing the investment it will make. If the initiative is successful, it could be a model for future collaboration that other biopharma companies might imitate.The crowdsourcing agreement with the UK Medical Research Council, which

Collaborative Buzz

13Quarter 1, 2012

will offer £10 million ($15 million) in initial funding to researchers want-ing to study the drugs, is broader in scope than previous similar industry deals, most of which have focused on “neglected” diseases such as malaria. The drugs involved include some that have been studied for treatment of cancerous tumors, as well as Alzheimer’s disease and cardiovascular conditions. Some of these compounds were shelved by AstraZeneca either because it believed the commercial market to be too limited or because the treatments fell outside the strategic areas on which it focused.This initiative reflects a growing trend in the pharmaceutical industry to be more open and work more cooperatively with outside researchers in order to more ef-ficiently identify potential treatments.In another development, AstraZeneca has established a new Science and Tech-nology Integration Office, which will develop collaborations with business, universities, governments, and charities, according to the UK’s The Telegraph newspaper. The new office will be led by Anders Ekblom, formerly executive vice president of global medicines develop-ment. He will be succeeded by Briggs Morrison, formerly of U.S.-based Pfizer, where he was head of medical excellence. AstraZeneca is an ASAP Global Member.

Martha Stewart Goes to Penney’sJ. C. Penney Company, Inc., and Martha Stewart Living Omnimedia, Inc. (MSLO), have entered into a strategic alliance and will join forces to create a unique and comprehensive retail experi-ence featuring Martha Stewart products, know-how, and advice. Beginning in February 2013, custom-ers will be able to visit distinct Martha Stewart retail stores inside the majority of J. C. Penney department stores. These Martha Stewart shops are intended to be destinations where consumers can buy a variety of affordable, high-quality home and lifestyle merchandise designed and curated by Martha Stewart and her team. Staffed by trained associates,

the Martha Stewart stores will also give consumers direct access to products and educational tips. J. C. Penney will market and source the products. Under the terms of this 10-year com-mercial agreement, the two companies will also jointly develop an e-commerce site, expected to launch in 2013. The site will offer Martha Stewart expertise and enable consumers to purchase a wide range of home and lifestyle products, including those sold in the Martha Stewart stores inside J. C. Penney, and other merchandise designed or selected by Martha Stewart. MSLO is expected to receive in excess of $200 million from J. C. Penney over the initial 10-year con-tract period. The MSLO alliance is one of a number of initiatives spearheaded by new J. C. Penney CEO Ron Johnson, formerly of Target and Apple, with the goal of reinvigorating the 110-year-old company and repositioning it in the chal-lenging world of retail department stores.

Berry Good: Ocean Spray and Pepsi Join Forces in Latin AmericaOcean Spray Cranberries, Inc., and PepsiCo, Inc., have announced the formation of a strategic alliance in Latin America that will give PepsiCo exclusive rights to manufacture and distribute a portfolio of cranberry- and blueberry-based beverages through its Latin America Beverages division, according to the Boston Globe. Financial terms of the transaction were not disclosed.Ocean Spray, a growers’ cooperative with headquarters in Lakeville and Middle-borough, Mass., has had a business relationship with PepsiCo in the United States since 2006, when Ocean Spray’s single-serve juices and juice drinks entered the PepsiCo bottling system.“We are eager to continue building on our successful partnership with PepsiCo, as it will help us expand con-sumer access to Ocean Spray products in important international markets like Latin America,” Ocean Spray chief operating officer of global partner

operations Stewart Gallagher said in a company-released statement.

Dell Moves into the Healthcare CloudWith the acquisition of InSite One just over a year ago, new strategic alliances, and plans for global deployment, Dell has been partnering with healthcare providers to efficiently store, manage, and share medical imaging data through a large cloud-based medical archive plat-form. Dell currently manages more than 65 million clinical studies and more than 4.5 billion diagnostic imaging objects and supports more than 800 clinical sites in the cloud—a nearly 25 percent increase in managed objects compared with a year ago. The addition of InSite One’s secure, cloud-based, image management soft-ware and storage services—now known as the Dell Cloud Clinical Archive—to Dell’s Unified Clinical Archive (UCA) provides a single-source end-to-end solution designed to simplify data retention, facilitate disaster recovery, and allow medical professionals to access and share images across a variety of applications and platforms. Dell has teamed with imaging leaders such as Merge Healthcare, Calgary Scientific, and Novarad to further enhance its UCA solution and bring more users into the medical imaging archiving cloud. Dell also announced a $1 billion invest-ment in cloud and solutions infra-structure, including the deployment of several new data centers worldwide. In early 2012, Dell will offer cloud-based managed enterprise archival services as part of its UCA solution in the United Kingdom, supported by the new data center located in Slough, UK. Cloud-based medical archiving will be available to healthcare providers in other regions later in the year. And through a new initiative just announced, Dell is donating the secure cloud-based IT infrastructure to support the world’s first personalized medi-cine clinical trial for pediatric cancer


conducted by the Neuroblastoma and Medulloblastoma Translational Research Consortium (NMTRC) and supported by the Translational Genomics Research Institute. Dell is an ASAP Global Member.

Toyota Keeps Rolling with BMW, Tesla AlliancesToyota Motor Corp. may have re-linquished its position as the world’s num-ber-one carmaker to General Motors, but the Japanese company is doing anything but standing still under CEO Akio Toyoda. Toyota’s chief agreed in Decem-ber to equip some Toyota vehicles with BMW diesel engines, building on an earlier deal with Tesla Motors, Inc., to use Tesla battery packs in future electric cars, according to Bloomberg Businessweek. The alliances mark a shift from Toyota’s historic tendency to go it alone, and a recognition of continuing competitive pressure from automakers such as GM and Hyundai.

According to the Businessweek story, under the December agree-ment, Toyota will equip some of its European models with BMW engines starting in 2014 to gain market share in the region, where many cars run on diesel. According to the European Automobile Manufacturers’ Associa-tion, Toyota’s share of European auto sales was 3.8 percent through October 2011, whereas the company’s U.S. share was 12.7 percent through November, according to Autodata Corp.In May 2010, Toyota agreed to use

Tesla’s lithium-ion battery pack and motor on its RAV4 sport-utility vehicle beginning in early 2012. In previous deals, Toyota has tended to either provide or codevelop technologies with other companies such as Ford, GM, Aston Martin, and Fuji Heavy Indus-tries (Subaru). Meanwhile, Toyota has so far not gotten caught up in the spate of other automotive alliances such as Renault-Nissan, Daimler-Chrysler, Daimler-Mitsubishi, and GM-Daewoo.

To the Rose Bowl and Beyond: Pac-12 and Big Ten Deepen Their Alliance The holiday bowl games and the American football season may be over, but there is still alliance news from the gridiron. In the field of college athletics, the Pacific 12 and Big Ten conferences, whose football teams have played each other in the Rose Bowl nearly every January since 1947, have announced plans to deepen their existing business relationship, according to a story in the Los Angeles Times.Just after Christmas, the two conferences jointly announced a greatly expanded collaboration that will increase athletic competition in a variety of sports for all 24 conference-member schools. Plans include a preseason game at the Rose Bowl in Pasadena, Calif., perhaps as soon as 2013 or 2014, involving schools from each conference. One goal of the renewed agreement is for each Pac-12 school to play a Big Ten school as part of its nonconference football schedule by 2017.Big Ten commissioner Jim Delany was also quoted in the Times as saying he would be interested in a neutral-site game in the Midwest—such as at Soldier Field or Wrigley Field in Chicago—or even at New York’s Yankee Stadium. Delany also hatched a non-sports-related idea for the two conferences: an academic “Brain Bowl” between students from rival schools.In a college athletic landscape where conference realignment has dis-

rupted the traditional sports scene and displaced historic rivalries, the strengthened Pac-12–Big Ten alliance represents a notable exception. Both conferences will soon have their own TV networks; the Big Ten Network, launched in 2007, has already been a great success, while the Pac-12’s new network will begin broadcasting this August. Combined, the two confer-ences have more than 17,000 athletes competing on 550 teams, according to the Times.

Ingraham Named to Lead Brocade AlliancesBrocade Communications Systems, Inc., has announced the appointment of industry veteran Doug Ingraham to the position of vice president of alliances. Within this role, Ingraham will oversee the Brocade Strategic Tech-nology and OEM Alliances business units, as well as the Strategic Program Council. Ingraham will report directly to Brocade CMO John McHugh. “Alliances [are] an extremely dynamic area within Brocade, and Doug’s impres-sive track record of business portfolio management—combined with his deep networking technology expertise—makes him the ideal person to lead this charter,” said McHugh. “In addition, his extensive background in strategic partner management will enable us to uncover fresh new business opportuni-ties that leverage the power of partner-ships to further innovation.”In this new role, Ingraham will oversee several key areas relating to Brocade Alliances initiatives, with a specific focus on forging new alliances and deepen-ing existing relationships with strategic technology alliance and OEM partners. Ingraham will also oversee the establish-ment of a program framework for the development of cloud ecosystem alliance partners to educate and extol the benefits of solutions built upon Brocade Virtual Compute Block technology and the Brocade CloudPlex architecture.

Collaborative Buzz

The Pac-12 and Big Ten conferences jointly announced a greatly expanded collaboration

that will increase athletic competition in a variety of sports

for all 24 conference- member schools.

15Quarter 1, 2012

Quintiles and Prodia Partner on Lab Testing in IndonesiaThe biopharmaceutical services company Quintiles has announced an expanded partnership with Jakarta-based Prodia Clinical Laboratory, through its sister company Prodia the CRO, to facilitate rapid testing of samples from patients in clinical trials in Indonesia. This will allow Quintiles’ customers to conduct clinical research in Indonesia and help establish the potential benefits of new medicines in the Indonesian population while contributing to global programs.Under the agreement, Prodia will pro-vide Quintiles with exclusive access to Prodia’s harmonized central laboratory for a two-year period.“This agreement demonstrates Quintiles’ commitment to improving human health by increasing participation in global clinical research,” said Kerry Strydom, general manager of Quintiles Australia, New Zealand, Indonesia, and Philippines. “Major health issues in Indonesia’s ethnically diverse popula-tion of 240 million include infectious and noncommunicable diseases, with tobacco-related illnesses also on the rise. As new and improved medicines are de-veloped for these conditions, it’s impor-tant that they are studied in populations for whom they are intended, including Indonesian patients.” Gunawan Prawiro Suharto, president of Prodia the CRO, said, “As the local market leader in laboratory services, Prodia is delighted to partner with Quintiles to help establish Indonesia as a true center of excellence for delivery of clinical trials. We look forward to working with Quintiles and its global biopharma customers to develop novel therapies.”

Moving in Stereo: Onkyo and TEAC Form New AllianceAs part of its corporate goal to enhance shareholder value and meet the

demands of a changing marketplace, Onkyo Corporation, a worldwide leader in consumer audio, has announced a strategic alliance with TEAC Corpora-tion, a global electronics manufacturer. Through this strategic alliance Onkyo and TEAC will acquire shares of each other’s stock. The companies are exploring ways to share manufacturing facilities, logistic centers and research and development resources. Onkyo president Munenori Otsuki stated that the alliance with TEAC offers unique opportunities to both companies to leverage each other’s considerable strengths to provide innovative life-changing products to their customers. TEAC president Yuji Hanabusa stated that the strategic alliance will make both companies more competitive in an ever-changing market.

BMC Software and Cisco Ally to Deliver the CloudBMC Software announced plans in December to support Cisco Network Services Manager across its cloud man-agement product line, including BMC Network Automation and BMC Cloud Lifecycle Management. BMC and Cisco Systems have a broader strategic alliance with more than 25 successful joint cloud customers, including Telstra, QTS, and Harris Corp. Cisco Network Services Manager, which was announced by Cisco at the same time, will be aggressively supported by BMC across its cloud management product lines. This integration with Cisco’s network management solution is intended to provide simplicity and faster time to value for BMC and Cisco’s joint customers as well as extend support for heterogeneity in cloud environments. “The introduction of the Cisco Network Services Manager to the market will not only simplify network provisioning, but will also strengthen the ability of partners such as BMC to utilize and deploy the latest Cisco cloud innovations more quickly to our global customer base,” said Nick Adamo, senior vice president of

global service provider sales for Cisco. “Cisco’s strategic alliance with BMC brings our customers powerful vali-dated and pretested cloud solutions.”

GSK and Pfizer Set Up Manufacturing Joint Venture in RussiaBiopharma companies GlaxoSmith-Kline and Pfizer have set up a joint venture that will start manufacturing in Russia via a partnership with local drug maker JSC Binnopharm, according to the industry website InPharm.com.The partnership—called ViiV—was begun in 2009 with rights to the exist-ing HIV treatment portfolios of GSK and Pfizer, and rights of first refusal on any new compounds coming through development. A new manufacturing agreement with JSC Binnopharm will commence with the local secondary manufacturing of ViiV’s antiretroviral products, initially focusing on second-ary packaging operations which will get under way early this year, according to a Binnopharm press release.Once up and running, the manufac-turing alliance would make it possible for up to 70 percent of HIV-positive patients in Russia to be treated with domestically produced medicines. The agreement is one of a number of ongoing efforts by multinational drug makers to build up manufacturing capacity in Russia in the face of gov-ernment plans to give preference to locally made medicines in the national reimbursement system and reduce the country’s reliance on imports.

Clouds of Azure: Microsoft Partners with GeminareGeminare, a leader in the Recovery as a Service (RaaS) industry, has announced a strategic alliance with Microsoft Corp., whereby Geminare will deliver its RaaS Solution Suite through Microsoft’s Windows Azure cloud. Geminare enables the transition of premises-based software to cloud-enabled solutions through its patented

The Rhythm of Business is pleased to sponsor the 2012 ASAP Global Alliance SummitMarch 5–8, 2012,Caesars Palace, Las Vegas, Nevada, USA

Don’t miss our Summit presentation:“ Launching the Alliance Management Function as an Enterprise Capability”

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Ron Long, Global Partner Manager,Global System Integrators, NetApp and

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When collaboration is central to your company’s strategy, how do you integrate your partners into the way work is done? Lorin and Ron will lay out the strategy, process, and framework Alliancesphere and NetApp developed to build a solution value chain ecosystem that encourages value creation throughout the network, including building a shared vision, getting executive engagement and support, and the do’s and don’ts of truly integrating partnering into the core of a business strategy.

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our thanks

thanks to you, the vision of ASAP Media has become a reality. ASAP Media productions—including Strategic Alliance Magazine, ASAP eNews monthly newsletters, our “Challenges in Alliance Management” webinar series, ASAP TV, and the Collaborative Buzz blog—are only possible because of the growing fi nancial support of our sponsors and benefactors.

Sponsors are our equivalent of advertisers in a for-profi t mag-azine; benefactors are ASAP Members who agree to pay for a subscription to Strategic Alliance Magazine (even though you get it for free if you’re an ASAP Member). So thanks to the com-panies and individuals below for being among the fi rst to step up! We look forward to many others following your lead.

Follow these leaders! Learn how you can be a benefactor —and your company a sponsor—at strategic-alliances.org or call ASAP at +1 781-562-1630. Your support makes all the diff erence.

CHARtER ASAP MEDiA SPONSORSEli Lilly and Company – www.lilly.comPhoenix Consulting Group – www.phoenixcg.comQuintiles – www.quintiles.comThe Rhythm of Business – www.rhythmofbusiness.comVantage Partners – www.vantagepartners.comXerox – www.xerox.com

CHARTER BENEFACTORSPLAtiNUM Benefactors (US $150): From F. Hoff mann–La Roche: Esfandiar Ardalan, Yuko Baltisberger, Gad Bitton, Robin Breckenridge, Satbir Kaur, Joerg Kazenwadel, Mark Noguchi, Petra Sansom, Christoph Sarry, Urs Schleuniger, Annette Weissbach. Thanks also to Krys Corbett, Hong Hong, Henrik Jochens, Philip Sack.

GOLD Benefactors (US $100): Lorraine Bassett, Shelley Hansen, ImmunoGen, Dennis McCullough, Susan Sullivan

SiLVER Benefactors (US $50): Ed Sullivan

Subscribers: Craig Battleman, Casey Robb Cohen, Matthew Hanmer, Pansy Lee, Philippe Regnault, James Soudriette, Vincent Turula

Cloud CORE Platform, a proven, mature, multitiered service deliv-ery vehicle that is the foundation of Geminare’s RaaS data protection suite. Beginning with a scheduled 2012 release of its Cloud Storage Assur-ance (CSA) e-mail and file archiving service, Geminare will provide access to its RaaS data protection suite within the Windows Azure Marketplace, rendering it widely available through the extensive Microsoft Partner Network community.

More from the Azure Cloud: OpenText and Microsoft Expand Global AllianceIn other news on Windows Azure, OpenText announced the expansion of its global alliance agreement with Micro-soft Corp. to include wider support for Microsoft cloud computing initiatives. As part of the agreement, OpenText’s newly formed Business Process Solutions (BPS) Group will be delivering a set of process management and case management solutions on the Windows Azure cloud computing platform. OpenText, based in Waterloo, Ontario, Canada, was among the first enterprise software vendors to add support for Win-dows Azure with records management and archiving solutions over three years ago. More recently, the OpenText M3 modeling suite achieved Windows Azure competency last year. Now, the tighter alignment between the two companies will give customers more flexibility in the way OpenText applications are deployed: fully in the cloud, on-premise, or a hybrid of cloud and on-premise. To bring the cloud to life, OpenText and Microsoft will work together to develop industry-specific applications tailored to business and user requirements in industries such as financial services, oil and gas, utilities, and the public sector. Beyond simply moving existing applica-tions to the cloud, the two companies plan to collaborate on new scenarios that take advantage of the elasticity, availability, and

connectedness of cloud-based computing. Microsoft is an ASAP Global Member.

Dow AgroSciences and Fraunhofer Institute Partner to Improve CropsDow AgroSciences has signed a re-search agreement with the Fraunhofer Institute for Molecular Ecology (IME), a major European research firm headquartered in Munich, according to a report in Farm Industry News. The multiyear pact allows Dow AgroSci-ences and Fraunhofer to collaborate on innovative biotech approaches to improving crops. “This significant agreement with Fraunhofer IME allows Dow AgroSci-ences’ researchers to work with some of the best teams of scientists in the world to improve plant biotechnol-ogy and deliver improved products to our customers,” said Daniel R. Kittle, vice president and global leader of Research & Development at Dow AgroSciences. Fraunhofer IME is the largest applied research group in Europe, with 18,000 employees. The research will be carried out at Dow AgroSciences in Indianapolis, and at Fraunhofer IME in Aachen and Giessen, Germany.

Dako and Amgen Sign Agreement to Target Rare CancerThe Danish company Dako, a leading independent cancer diagnostic supplier with 45 years of experience in pathology, announced in January that it has entered into a development and collaboration agreement with U.S.-based Amgen, Inc., to develop a diagnostic test for an Amgen cancer drug candidate targeted for a rare and deadly cancer.“I am proud to announce that Dako and Amgen have succeeded in putting together a business model that supports the concurrent development of drug and diagnostics for a low-incidence can-cer—something that has been difficult to achieve in the industry until now,”

said Lars Holmkvist, Dako’s chief ex-ecutive officer. “This new collaboration brings hope to cancer patients suffering from this rare form of cancer.”The announcement marks the con-tinuation of Dako’s commitment to advance companion diagnostics by collaborating with strong partners in the pharmaceutical sector. Over the past 24 months, other Dako agreements—with AstraZeneca, Bristol-Myers Squibb, and Genentech—have also been announced.

Mucho Dinero: Big Blue Inks Deal with Spanish BankIBM and Spanish savings bank “la Caixa” announced in January the estab-lishment of a 10-year strategic services relationship. As part of the agreement, IBM and Serveis Informatics la Caixa, S.A. (Silk), will manage the infrastruc-ture technology budget of “la Caixa” of more than 2 billion euros over 10 years. Through Silk, IBM will provide tech-nology, operations, applications, and infrastructure services to “la Caixa” and will manage its data processing centers, located in Cerdanyola del Vallès and Sant Cugat (Barcelona). The IBM-provided scope represents about half of this bud-get, while the remainder is directed to additional third-party service providers. The new strategic alliance is expected to save 400 million euros for “la Caixa” over the term of the agreement. The contract will provide the bank with access to new technologies and innova-tions to enhance its business develop-ment both in Spain and global markets and to position it as one of the leaders in utilizing new technologies in the financial sector such as mobility, social media, and cloud computing.

Eli Lilly and Immunogen in Drug Development DealCancer treatment developer Immuno-gen, Inc., said in December that it will receive $20 million from Eli Lilly and Company under a new collaboration agreement and could earn additional

Continued on page 50

17Quarter 1, 2012

Collaborative Buzz

18 Strategic Alliance Magazine

Growing Alliance Culture:

Has Your Company Started Yet?


If Not, Here’s HowBy Michael Burke

19Quarter 1, 2012

Growing Alliance Culture:

Has Your Company Started Yet?


If Not, Here’s HowBy Michael Burke

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







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

21Quarter 1, 2012






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


Non-Alliance Personnel Training

Increases Organizational Partnership Strength

23Quarter 1, 2012

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

Th e printed magazine is mailed free to allASAP members and Sponsors and is also available


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

For Membership and Sponsor informationemail [email protected]

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

Soren Bregenholt, vice president and head of corporate alliance management at Novo Nordisk.

Erna Arnesen, CA-AM, vice president of global and strategic services partners at Cisco.

Peter Simoons, CA-AM, founder of Simoons & Company.







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

25Quarter 1, 2012






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

27Quarter 1, 2012

Th e annual gathering of the world’s leading alliance pro-fessionals is always a prime destination for those looking to further their professional development, take advan-tage of networking opportunities, and get the latest in cutting-edge collaborative thinking, but the 2012 ASAP Global Alliance Summit—to be held at Caesars Palace in Las Vegas, March 5–8—promises to outdo previous Summits with its wealth of enlightening off erings.

Th is year’s Summit features a number of outstanding speakers, including both brand-new presenters and favorites from past Summits back by popular demand; more conference sessions than ever before, with three all-new tracks presented in a variety of interactive formats; executive coaching and intensive certifi cation preparation; a chance to celebrate the profes-sion’s best at the presentation of the Alliance Excellence Awards; the unveiling of the results from ASAP’s 4th State of Alliance Manage-ment Study; special networking dinners, executive roundtables, and the all-new Hospitality Suite; the new Alliance Management Resource Center showcasing products and services tailored to the alliance management professional (including ASAP Media and Strategic Alliance Magazine!)...and a full deck of other professional development opportunities.

Preliminary Events and the Opening Plenary: The Alliance Management JourneyPrior to the Summit proper, the brand-new Hospitality Suite will open on Sunday, March 4, and various ASAP Board and Chapter events and pre-conference work-shops—including Phoenix Consulting Group’s CA-AM and CSAP certifi cation preparatory workshops—will be given on Monday, March 5. Monday night will also see a special reception to celebrate the opening of the fi rst-ever Alliance Management Resource Center; a CAO Reception and Dinner and other select network-

ing dinners will also be held that evening, marking a full slate of activities taking place before the Summit begins.

Th e Global Summit kicks off in earnest on Tuesday, March 6. Th is year’s Opening Plenary session is entitled “Th e Alliance Manage-ment Journey: Th e CAOs’ Perspectives,” and will feature key in-sights from some of the leading chief alliance offi cers and de facto alliance management heads in charge of alliances at their com-panies. Th e senior executives known to be participating at press time include Matt Johnson of Abbott Labs, Russ Buchanan of Xerox, Mark Noguchi of Genentech Roche, Scott Van Valkenburgh, CA-AM, of SAS, and Frank Grams of Sanofi .

Las Vegas Is the Place to Be in March, as ASAP’s Global Alliance Summit Presents

the Latest in Collaborative Th inking, Strategy, and Techniques

By Michael Burke

The 2012 ASAPGlobal Alliance Summit

Preview

THEY SAY THAT WHAT HAPPENS IN VEGAS, STAYS IN VEGAS—or maybe on YouTube—but it’s a

good bet that much of what takes place at this year’s ASAP Global Alliance Summit will end up spilling out

of the conference rooms like coins from a slot machine jackpot, and ultimately will be spread around the

worldwide alliance community.

Th e Opening Plenary represents a not-to-be-missed opportunity to hear directly from CAOs about the critical issues facing their organizations and the impor-tant role alliances play in successful business strategies. Every year, CAOs have gathered on the fi rst day of the Summit to discuss the issues driving their agendas.

At the 2012 Summit, for the fi rst time, the Opening Plena-ry will bring that elite conversation to the entire commu-nity. Th rough talk-show-style interviews and discussions, the CAOs will range across topics including opportunities and trends in using alliances and collaborations to grow new business and businesses; expanding the alliance management discipline across the enterprise; integrating alliances into corporate culture; the qualities that make for a successful alliance manager; and the expectations CEOs have of CAOs, alliance managers, and alliance teams.

Other sessions included in the Opening Plenary are “Global Insights: Developing the Capability to Collaborate with Emerging Market Partners”—presented by Vipula Tailor of Vertex Pharmaceuticals and Yuri Khakhanov of the Russian Corporation of Nanotechnologies, one of sev-eral sessions devoted to the increasingly global, networked nature of alliances and collaboration—and the unveiling of results from the ASAP 4th State of Alliance Management Study, presented by Dave Luvison, CSAO, of the Keller Graduate School of Management and Misty Creek Enter-prises and Ard-Pieter de Man, CSAP, of Atos Consulting and VU University Amsterdam.

Breakout: Enterprises, Ecosystems, and the Art of AllianceAft er the rousing Opening Plenary, Tuesday’s aft er-noon breakout sessions will run along two alliance tracks—High Tech and Capability Building—and feature sessions on such topics as creating a simple framework for complex alliances, collaborative sell-ing, “coopetition,” and integrating partnering into the core of an enterprise. Among the highlights will be “Launching the Alliance Management Function as an Enterprise Capability,” presented by José Ochoa of Emergent BioSolutions and Jeff Shuman, CSAP, of Th e Rhythm of Business, which will encourage par-ticipants to take an “enterprise view” of collaborative

relationships and to consciously develop a capability that is aligned across a broad portfolio of alliances; and “Creating No-Fault, No-Blame Partnering Cultures,” presented by Christopher Elliott, CSAP, of PeopleForce Pty Ltd and Richard Morwood of AECOM Austra-lia, which will introduce attendees to some fresh ideas on collaboration from “down under” in the Australia and New Zealand public sector. Other presenters in Tuesday’s sessions will hail from companies including Infosys, NetApp, Alliancesphere, Phoenix Consulting Group, and Schneider Electric.

Wednesday’s “Art of Alliance” track will be led off by Stuart Kliman of Vantage Partners, whose presenta-tion, “Ensuring Skilled Responses to Alliance Challenges When Th ey Are Needed Most,” will confront head-on one of the inconvenient truths about alliances—they’d be easy if it weren’t for the people! Kliman’s session will address the challenges of managing confl ict, making decisions, and dealing with people in pressure-packed alliance situations where the risks—personal and organi-zational—are high.

Also in the “Art of Alliance” track will be a session on managing and recovering an alliance amid confl ict-ing expectations by Joan Meltzer, CA-AM, of IBM and Christine Carberry, CSAP, of Carberry Consulting, and “Global Agility: Building Bridges Across Cultures,” pre-sented by Tarja Mottram, CEO of Action for Results.

An all-new “Alliance Ecosystems” track will feature pre-sentations on nontraditional alliances in “white space” markets, the brave new world of partnering in the IT “smart grid,” and cross-industry, multi-party alliances in-volving IT, academia, manufacturing, and other sectors. Presenters come from companies including IBM, Cisco Systems, Oracle, and Merck Serono.

Dazzled by Metrics, Blinded by ScienceAnother new track, “Alliance Metrics,” will take an in-depth look at the thorny problem of measuring al-liances’ value, ongoing health, and contribution to the bottom line. “Keeping Score: Maximizing Value with the Balanced Scorecard,” presented by Tara Mylenski, CA-AM, of Quintiles, will bring back a well-received pre-


ASAP Global Alliance Summit 2012Mastering the Art and Science of Alliance

Confi dent. Credible. Capable.Caesars Palace, Las Vegas, Nevada USA

March 5-8, 2012

29Quarter 1, 2012

sentation from last year’s ASAP BioPharma Conference to illuminate the ins and outs of a popular metric tool. Other presentations in this track, featuring panelists from Sanofi Pasteur and Eli Lilly and Company, will focus on “Using Metrics to Keep Alliances on Track” and “Mea-suring Alliance Value Across the Service Spectrum.”

Th e “Biopharma” track includes presentations on creating an “Alliance Center of Excellence” to drive the alliance capability throughout the enterprise, navi-gating an alliance through its (sometimes lengthy) life cycle transitions, rebuilding trust aft er legal proceedings with a partner, and “Th e Emerging Landscape of Clinical Service Alliances,” presented by Michael Young of PPD.

In the “Science of Alliance” track, Robert Porter Lynch, CA-AM, CEO of Th e Warren Company and chairman emeritus of ASAP, will share his thoughts on how to use the latest scientifi c fi ndings on trust, human drives, and brain chemistry to shift organizational cultures in “Trusted to Innovate: Th e Neuroscience Behind Col-laboration.” Other sessions in this and the fi nal track of the day—the brand-new “Alliance Management Tech-nologies” track—will address successful soft ware licens-ing agreements, how to handle and overcome a case of “partner’s remorse,” using a “Partnership Portal” to communicate in a collaborative workspace, and manag-ing alliances in the the new e-social world. Scheduled presenters represent such companies as Cisco Systems, IBM, Otsuka Pharmaceutical, and Covance.

Alliance Professionals: The Toast—and Talk—of the TownWednesday night marks the gala Alliance Excellence Awards Recognition Dinner, showcasing the crème de la crème of alliance management and the collaborative world. Winners in four alliance categories—Alliance Program Excellence, Individual Alliance Excellence, Alliances for Social Responsibility, and Innovative Alliance Practices—will be named, and the dinner will provide not only the chance to cheer the best and brightest in alliance management, but yet another ex-cellent networking opportunity for attendees to meet and greet their fellow alliance professionals.

For those still standing upright by Th ursday morning, it’ll be time to clear away the champagne glasses, take on some hot coff ee and breakfast as ballast, and launch into the Closing Plenary session, entitled “Elevating and Promoting the Profession.” Th e fi nal Summit sessions include “Establishing a Culture of Alliance Excellence,” presented by Donna Peek, CSAP, and some of her col-leagues from SAS; “Realizing the Value of Alliance Man-agement During M&A Transitions,” by Shelley Hansen, CSAP, of Atos and Satbir Kaur, CA-AM, of Roche; a Q&A session with the winners of the Alliance Excel-lence Awards; and last but not least, “Digging into the ASAP 4th State of Alliance Management Study,” by Dave Luvison, Ard-Pieter de Man, and their colleagues. Th at fi nal session will include not only a deep dive into the data from the study, but also an interactive Q&A ses-sion where participants can fi nd out more about the re-sults and how the study was conducted, as well as suggest future directions for this vital ongoing research project.

See You in Vegas!So that’s the overview of the 2012 ASAP Global Alliance Summit, in an admittedly large nutshell. All except...did I mention that it’s in Las Vegas? At Caesars Palace? Yes, the premier gathering of global alliance profes-sionals and leaders will be held this year in America’s Playground, right on the Strip, where the fun never stops. So even if your idea of “fun” has more to do with alliance metrics, joint governance committees, and alignment around go-to-market strategies than with blackjack, fl oor shows, and Elvis imperson-ators, odds are that you’ll fi nd this year’s Global Alli-ance Summit a pretty good time—and what happens in Vegas may just get spread around the world. At least some of it.

Don’t Gamble with Your Professional Development! If you haven’t already registered for the ASAP 2012 Global Alliance Summit, visit www.strategic-alliances.org right away—or contact Michele Shannon at +1-781-562-1630 ext. 204 or [email protected]. Don’t wait! n


Alliance ExcellenceAwards Recognition Dinner

Highlights Global Alliance Summit

Annual Event Celebrates 2011’s Most Innovativeand Successful Initiatives, Companies, and Individuals

in Alliance ManagementBy Jon Lavietes

THE ASAP GLOBAL ALLIANCE SUMMIT IS KNOWN FOR ITS INCREDIBLE OPPORTUNITIES to network with leading individuals and companies in

the profession, and it is also the place where the best of the best are recognized. Once again, the Summit will provide the forum for the annual Alliance Excellence

Awards Recognition Dinner, which will be held on the evening of March 7, 2012, at Caesars Palace in Las Vegas. Each year, the Alliance Excellence Awards honor

the individual partnerships and longtime alliances that have achieved outstanding results and advanced alliance management theory and practice to a new level.

For the � rst time ever, ASAP is announcing � nal-ists in the Alliance Program Excellence, Individual Alliance Excellence, Alliances for Social Responsi-bility, and Innovative Alliance Practices categories

prior to the dinner. Below are the remaining con-tenders for each category and a brief synopsis of their stories. To � nd out who joins recent winners such as IBM, SAP, HP, Ipsen, Inspiration Pharma-

31Quarter 1, 2012

Alliance ExcellenceAwards Recognition Dinner

Highlights Global Alliance Summit

Annual Event Celebrates 2011’s Most Innovativeand Successful Initiatives, Companies, and Individuals

in Alliance ManagementBy Jon Lavietes

THE ASAP GLOBAL ALLIANCE SUMMIT IS KNOWN FOR ITS INCREDIBLE OPPORTUNITIES to network with leading individuals and companies in

the profession, and it is also the place where the best of the best are recognized. Once again, the Summit will provide the forum for the annual Alliance Excellence

Awards Recognition Dinner, which will be held on the evening of March 7, 2012, at Caesars Palace in Las Vegas. Each year, the Alliance Excellence Awards honor

the individual partnerships and longtime alliances that have achieved outstanding results and advanced alliance management theory and practice to a new level.

prior to the dinner. Below are the remaining con-tenders for each category and a brief synopsis of their stories. To � nd out who joins recent winners such as IBM, SAP, HP, Ipsen, Inspiration Pharma-

ceuticals, Xerox, Novartis, Cisco, and Turkcell in the pantheon of the alliance management commu-nity’s elite, register for the Summit at www.cvents.com/d/8cq74r.

F INAL ISTS

F INAL ISTS

F INAL ISTS


Alliance ProgramExcellence

PTC This Needham, Mass.–based discrete manufacturing software company’s Part-nerAdvantage program plays a big role in setting its corporate strategy. PartnerAd-

vantage provides detailed analysis on the age-old corporate chal-lenge of deciding whether to partner, build, or buy. It sug-gests candidates to acquire in

“buy” situations—close to half of PTC’s acquisitions start as formal partners—and provides extensive templates and onboarding pro-cesses that thoroughly address almost every aspect of beginning and maintaining a collaborative busi-ness relationship.

SAS* This business intelligence software leader re-vamped its entire partner program from end to end, creating a new set of processes, tools, and systems—some of which were based on ASAP best practices. This overhaul resulted in a new scoring system to rate partners in SAS’s portfolio, the establishment of part-ner tiers, the specification of alliance management roles, and comprehensive training and professional development of its alliance personnel.

TURKCELL* Winner of ASAP’s Growth Company Alliance/Management Excellence award in 2010 for its mobile application developer community, the company’s full partner ecosystem of more than 200 registered application service providers, content providers, system integrators, OEM allies, and other business partners rounds out the nominees in this category. The company’s Partner Portal, Turkcell Lab Test Platform, and Turkcell Partner Management System (TPMS) are just some of the tools the com-pany provides its partners to be successful.

Individual Alliance Excellence

GETRONICS WORKSPACE ALLIANCE A few com-panies from several different regions of the world—KPN|Getronics, CompuCom Systems, APX, Getron-ics Middle East, NTT DATA Getronics, ServiceOne

Getronics, and Tecnocom—have combined their re-sources to provide international IT workspace services and maintenance without laying out the expenditures for offices around the globe. The alliance is serving 6.1 million workspaces across multiple continents.

ORACLE–DELOITTE Although the two companies had been partners at the corporate level for some time, their alliance management approach in Asia Pacific was ad hoc and carried out informally with-out consistency in alliance management processes and governance structures. The two global orga-nizations used a “start-up” approach utilizing best practices, tools, and methodologies from a variety of professional disciplines to achieve consistent year-over-year growth in many parts of the region.

ROCHE–AILERON Aileron turned to Roche to help develop its “stapled peptides” technology to investi-gate its suitability for drug discovery across multiple therapeutic areas. The alliance has delivered a pre-clinical proof of concept in timely fashion, which has laid the groundwork to expand from two oncology programs to a third initiative in the inflammatory disease area.

Alliances for Social Responsibility

COHERENCE This company has played an instrumen-tal role in the alliance between ScotiaBank and Digicel to introduce the Tcho Tcho mobile wallet to the people of Haiti after the country was hit by a massive earth-quake, spurring the Bill and Melinda Gates Foundation to bestow a $2.5 million award to the alliance.

HOFFMANN–LA ROCHE Hoffmann-La Roche is the creator of the myclimate Alliance, which aims to achieve reductions in carbon emissions that con-tribute to global warming and preserve a clean water supply in developing countries. The alliance has accom-plished a 22 percent reduction of travel-related carbon emissions within a year.

* SAS and Turkcell are also finalists in the Innovative Alliance Practices category. n

33Quarter 1, 2012

Strategic Alliance Magazine: You are recognized as one of the founders of the outsourced biopharmaceutical services industry, and a visionary in its growth and development over the past 30 years. What are your views regarding the future of alliances in biopharma?Dennis Gillings: Strategic alliances are becoming ever more important. Biopharma is facing unprecedented challenges—there are new economic, regulatory, and reimbursement realities; patients want access to eff ective, safe, and aff ordable treatments; regulators and payers want evidence of the value of new medicines. So it’s more important than ever for bio-pharma to optimize product and portfolio value by looking for partners willing and able to help navigate the risks and rewards of this landscape we call the New Health. Other industries, such as telecommunica-tions and electronics, already have gone through similar periods of transforma-tional change. Successful companies in those industries transformed the ways they did business, and strategic alliances proved to be one of the most eff ective ways to become more fl exible, more nimble, and more successful.

SAM: In the early and mid-1990s, Quintiles pioneered growth opportunities in emerging markets. Why are alliances important for companies looking to enter the growing markets in Asia-Pacifi c,

Eastern Europe and the Middle East, Africa and Latin America? Gillings: Quintiles has a long-standing presence in emerging markets, especially on the clinical side, and we are accelerat-ing that expansion both in clinical and commercial services. In 2011 our Com-mercial Solutions group launched services in Russia and Brazil, and we are investing and growing our commercial services in Turkey, Egypt, and Mexico. In addition, we have an aggressive growth strategy in Asia as well as other regions.

SAM: Th ere is a variety of alliance structures, equity- or non-equity-based, requiring diff erent levels of cooperation. What alliance structure works best for entering new markets?Gillings: Every emerging market has its own unique characteristics, and every company has its own strategy, goals, and challenges. Each alliance needs to be structured to align strategy with the development phase of the target market. Shorter-term contracts, or so-called exploration alliances, allow companies to test new markets and business models with the fl exibility to respond to new market conditions. A strategic alliance that makes sense today may not be the best option tomorrow. Companies oft en use the market expertise they acquired during a successful partnership to expand the alliance or establish their own sales base.

SAM: You have mentioned that for many biopharma companies, the next big shift will be toward a smaller, more fl exible, innovative R&D infrastructure. What role will strategic alliances and partnerships play in helping companies make this transformation successfully?Gillings: Th is shift is already well under way. Companies have been tran-sitioning toward smaller, more fl exible structures with increased reliance and interdependence on external alliance partners for some time now. Th is shift is leading companies to make changes on several fronts. First, companies are entrusting entire functions, such as data

management, biostatistics, and clinical monitoring, to partners. Th is frees up resources and management time for a biopharma company to focus on its core competencies. Second, companies are seeking innovative alliances involving human, intellectual, and fi nancial capital to move their most promising therapies through their pipelines faster. Finally, part-nering can play a role in providing access to biomarker and diagnostics technology

ceo forumQ&A with Dr. Dennis Gillings, CBE, Chairman and CEO, QuintilesQ&A with Dr. Dennis Gillings, CBE, Chairman and CEO, Quintiles

N E W E D I T O R I A L F E A T U R E

Every emerging market has its own unique characteristics, and every company has its own strategy, goals, and challenges.

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realizes the value of committed Alliance Management.

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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/

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35Quarter 1, 2012

and expertise to match potential therapies with patients who would benefit from those therapies; molecular medicine has tremendous potential to improve out-comes, reduce side effects, and add value to health care.

SAM: How have the changes in the bio-pharma industry affected Quintiles? How are you using alliances to take advantage of opportunities and mitigate risk?Gillings: Quintiles has structured alliances in numerous areas, both to access the best-in-breed expertise and technology we need to provide innova-tive solutions to customers, as well as to build with biopharma companies to help them achieve success clinically and commercially. We are clearly seeing the evolution from traditional fee-for-service work—although that type of work will always be there and always will be important to Quintiles—to more partnerships. As examples, we have a dedicated Global Functional Resourcing group, and we work with our alliance partners to track results in delivering improved efficiencies. We are continuing to see increases in demand for these kinds of approaches.

SAM:What is Quintiles’ strategy in terms of alliances, and what do you view as key factors for alliance success? Gillings: Since 2000, Quintiles has committed more than $2.4 billion to more than 80 nontraditional alliances. There is no clearer evidence than that as to the growing importance of alliances. What we have found is that although many managers believe their time and attention is most important during contract negotiations, it’s actu-ally post-signing that is most impor-tant. It is relatively easy to agree on a contract and strategic rationales, but the execution of an alliance involves a

high degree of complexity, collabora-tion, communication, and culture. This is where alliance management comes into play. Early on, Quintiles recognized the importance of dedicated alliance professionals, which is why we created an Alliance Management unit that works to manage each partnership for success. This unit reports directly to the executive management—indepen-dent of operating units. Such a structure expedites decision making and ensures that both parties are focused on achieving the alliance’s objectives. We are also a long-term member of the Association of Strategic Alliance Professionals (ASAP), together with industry peers and colleagues. It is a way to improve the performance of alliances across all industries and de-velop industry standards, policies, and best practices for governance.

SAM: How are the relationships between biopharma and outsourcing companies changing, given the shift toward a greater degree of partnering, both clinical and commercial, versus traditional fee-for-service work?Gillings: Companies typically use traditional fee-for-service outsourcing to obtain extra resources at the lowest cost through a bidding process, taking the approach that all is equal in terms of quality and timelines. What’s often left out of the traditional fee-for-service is consideration of the value that an out-sourcing company can add to a develop-ment or commercialization program.Adding value and sharing risks and rewards is at the core of alliances. Sharing risks, whether it is a capital investment, a resource investment, or a milestone-based investment, always changes the dynam-ics. It incentivizes both alliance partners to contribute their respective expertise. A clear contract is still important, but close collaboration and alliance management

become equally, if not even more, critical. To be effective, you have to change the way these relationships are managed.

SAM: When evaluating potential alliance partners, how important are criteria like partnership and willingness to dedicate alliance management resources?Gillings: No matter how good the strategy is for all parties involved, or how well the terms are detailed, corporate culture underpins a productive alliance. Open communication, laser-like focus on common goals, collaborative problem solving, peer-to-peer relationships—these are all parts of a high-performance alli-ance culture. Experienced alliance managers, who serve as the internal champion and voice of the alliance throughout their respective organizations, are central for success. The best alliance teams are those that not only deliver on the original intent of the alli-ance but also recognize additional value for expansion of opportunities beyond the initial scope. n

The CEO Forum is sponsored by

N E W E D I T O R I A L F E A T U R E

No matter how good the strategy is for all parties involved, or how well the terms are detailed, corporate culture underpins a productive alliance. Open communication, laser-like focus on common goals, collaborative problem solving, peer-to-peer relationships—these are all parts of a high- performance alliance culture.

36Quarter 1, 2012

Entrepreneurial Approach Gives The Rhythm of Business Its BeatIt’s no longer news that alliances and oth-er collaborations have become founda-tional building blocks of most corporate strategies. As companies grapple with turmoil in their industries and uncer-tainty in the global economy, they are increasingly turning to alliances and collaborative networks to build new businesses, reach new customers, and carry out their research and develop-ment agendas. Achieving success with this strategy requires developing a new corporate capability—an alliance and collaborative capability.

The Rhythm of Business partners with companies to integrate alliances and collaboration into their corporate cul-ture and processes. When collabora-tion is essential to strategy, alliances can’t be seen as an afterthought; they must become part of how work is done.

The Rhythm of Business draws on multi-industry and cross-sector experi-ences and knowledge to move beyond a collection of best practices to a com-plete philosophy and integrated body of alliance management principles. This overarching framework and set of pro-cesses and tools can be adapted and ap-plied to any alliance while maintaining consistency across all collaborations, ensuring that alliance skills are wide-spread within the organization. This resource-friendly approach is scalable as the portfolio of relationships grows, allowing professional alliance managers

to focus on the most complex collabo-rations while building the company’s ability to succeed in alliances.

The Rhythm of Business’s entrepreneur-ial approach to alliance management is utilized for a variety of purposes, includ-ing but not limited to:– Shaping partnering strategy, business,

and governance models– Facilitating partnering discussions,

alliance start-ups, and wind-downs– Alliance portfolio analysis, mapping,

and planning– Designing the alliance management

organization, coverage models, and processes that are aligned with the needs of the alliance portfolio

– Crafting alliance management guide-books and toolkits

– Implementing innovative metrics that measure individual alliances, the alliance portfolio, and the alliance management practice

– Improving alliance results through action-oriented assessments

– Intervening and relaunching troubled collaborations

– Customizing a library of educational offerings and trainings for alliance managers, teams, and executives

– Developing and providing content for internal marketing and commu-nications

– Assisting alliance leaders with job descriptions, objective setting, and evaluations

For more information, please visit www.rhythmofbusiness.com or call +1-617-965-4777.

Teradata Integrates Supply Chain DataOne of the most pressing IT-related challenges is collaborating with part-ners across the entire supply chain in integrating and analyzing large amounts of data expediently so that up-to-date accurate information is at executives’ fingertips.

Traditional lean and demand-driven supply chain management delivers val-ue in highly predictable and steadier, less volatile industries and markets. However, increasing globalization, virtualization, demand for increased leverage of IP outside the firewall, and pressure to increase growth and prof-its are demanding new chaos-tolerant supply chain management approaches.

Teradata helps reach more informed and productive decisions by better analyzing and synchronizing products and pro-cesses daily from multiple sources. The company’s Teradata Database helps make consistent, accurate data—both detailed and summary—available for analysis anywhere within the organization at any time, along with the flexibility to view the business from a variety of perspectives.

Teradata can help combine data from thousands of readers and edge serv-ers and millions of tags; allow busi-ness managers and executives to see and collaborate across the total sup-ply chain; and proactively measure, monitor, and exceed supply chain performance objectives.For more information, please visit www.teradata.com or call +1-937-242-4030.

Solutions Marketplace

Selected Products and Services for and from Strategic Alliance Professionals

E D I T O R I A L S U P P L E M E N T


ManagingAlliance Conflict

Conflict Is Inevitable. How You Deal with It Can Be the

Difference Between Success and FailureBy David S. thompson, CA-AM, John R. Hayes, MD,

and Steven E. twait, CSAP

Every day we manage conflict. Whether dealing with friends and relatives or coworkers and customers, we

constantly resolve issues by applying the conflict management approaches and skills at our disposal. Those of

us working in alliances certainly work our way through such situations frequently. While it might be part of our

jobs, most people do not like to hear the word “conflict” associated with their own name. Just hearing the word

is sometimes enough to make your stomach churn or your muscles tense.

37Quarter 1, 2012

CONSTANTVALUE CREATION

FIGURE 1:CONSTANT VALUE vs TIME

VALUE

TIMESource: Eli Lilly and Company

VALUE DESTROYINGINFLECTION POINT

VALUE CREATINGINFLECTION POINT

FIGURE 2:VALUE CREATION AND DESTRUCTION POINTS OF INFLECTION vs TIME

VALUE

TIMESource: Eli Lilly and Company


Conflict, however, is one of the greatest sources of creative power, if it is managed effectively. Examples of fruitful conflict are found throughout human history in a wide range of catego-ries: the formation of an independent United States, the songs of the Beatles or Fleetwood Mac, the Los Angeles Lakers NBA championship teams that featured Shaquille O’Neal and Kobe Bryant, and all the Apple products created through the efforts of Steve Jobs and John Sculley.

We all have experience dealing with conflict, we all share a need to improve in this area, and we all stand to benefit greatly from these efforts.

The value of alliance management, if graphed, would not be a pure linear function, where value is being gener-ated at a constant rate (Figure 1); rather, the graph has points of inflection where value is created or destroyed. These points of inflection represent points of conflict, while more linear parts of the graph represent the daily value generated from the more administrative aspects of alliance

management (Figure 2). At these conflict points, great value can be produced or lost depending on the outcome. For example, when a teacher takes the time to help a child who is struggling with math, that teacher is creating a potential inflection point. The student who currently loathes the subject could eventually develop a love for math as the skilled teacher helps build the necessary foundational skills in that student. That teacher’s thoughtful intervention and the child’s willingness to develop skills creates an inflection point in that child’s life, affecting that child’s career oppor-tunities and chances of creating and keeping wealth, and perhaps affecting our lives if the child eventually creates something that contributes to the greater good.

Conflict DefinedAn operational definition of conflict might be a situation where people hold at least two different views of how to resolve an issue. (This article will not address inner conflict, or the conflict created by a person’s unique personality traits. While these factors do influence alliance conflict significantly, they invite separate discussion and are beyond the scope of this article.) Most of the negative feelings associated with conflict are not based on two people seeing radically differ-ent problems; rather, negative feelings are more often gener-ated in the execution phase of conflict resolution. That isto say, people often agree about the existence of a problem, but disagree vehemently about how it should be addressed.

In the teaching example above, both student and teacher recognize that math is a challenge for the student. They use different words and have different perspectives and inter-pretations regarding how to address the issue, but they both agree on the central issue: math is a challenge for the student. The student might say, “Math stinks!” while the teacher might say, “The student lacks a fundamental grasp of the basic prin-ciples of math and fails to see how the mastery of the subject will influence the rest of his life.” Success, therefore, depends not on identification of the issue, but on the implementation of a resolution. The focus of this article is to highlight tools and techniques that are helpful in the execution of alliance conflict.

Modeling Conflict and ResolutionOne school of thought useful in describing conflict holds that a person does not experience any event without first passing the event through a “perception filter.” This filter is the way in which we assign meaning to the things we perceive or experience. People’s filters are made up of personal and cultural elements including past experiences,

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

FIGURE 3:A BASIC MODEL FOR EXAMINING CONFLICT

Source: Eli Lilly and Company

FACTS

EVENTS

ISSUES

DECISIONFILTER FILTER

Beliefs

Bias

Experience

Beliefs

Bias

Experience


beliefs, biases, education, and so on (Figure 3). It is not surpris-ing, therefore, to note that two people could experience the same event and assign it very diff erent meanings.

Study of this model reveals the basic steps of managing confl ict: Step #1 Fully understand the event. Step #2 Understand your own fi lter as well as the other party’s in order to understand the meaning both parties are ascribing to the event. Take the time to really listen to your partner. Ask open-ended, unbiased questions. Find out why that person believes what they believe about the events that took place. How are they interpreting the events? Really listen. Use tools like structured listening to help understand. During this listening phase, see if you can agree with your partner on the events and their timelines. Establish boundaries for separating actual events from beliefs or interpretation of events.Step #3 Use your understanding of the meaning each party has given to the event to modify the fi ltering on both sides, if possible. Your goal should be to move toward more shared meaning of the event, and consequently toward a mutually acceptable path to a solution.

Master the Basic Business Tools for Confl ict: You Cannot Really OvercommunicateAlthough the tools for confl ict management all involve communication, it is useful to think of three main categories of business communication: verbal communication, written communication, and a special subset of verbal and written communication that is upheld by the force of law, otherwise known as litigation! In this situation, often a third party (for example, an arbitrator or ombudsman) fi lters and interprets

the facts on behalf of the disputing parties and renders a decision that carries with it the force of law. It is intuitive that one’s success in implementing the fi rst two tools often deter-mines whether the third ever needs to be employed.

Here are some basic tips:Establish an agreement with your partner about how to

communicate. This conversation would range from how to handle highly emotional topics to more mundane consider-ations. Generally, the more emotional the topic, the more it needs to be handled verbally and preferably face to face. The converse is also true: the more mundane the issue, the easier it is to put into writing.

A wise man once said, “Among my most prized possessions are words that I have never spoken.” This is a valuable concept in managing alliance confl ict.

Do not attack the fi lter of the other party. It only leads to bad feelings and defensiveness. Remember, we all have our own fi lters, and understanding your own as well as your partner’s will more likely lead to agreement than if you simply reject the conclusions your partner naturally reached by interpreting an event through fi lters other than your own. It is, however, acceptable to point out:— New data regarding a person’s fi lter: In the context of our

earlier example, the teacher might say, “Did you know that the more math a person knows the more money he can make?”

— What’s right with a person’s fi lter: “Math is a diffi cult subject.”

39Quarter 1, 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.


David 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 partnerships and oversees the integration of companies brought into Lilly via mergers and acquisi-tions. 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 implementation 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 director of alli-ance management and M&A integration at Eli Lilly and Company. Twait leads teams fo-cused on maximizing the value of partnered assets at each stage of the development cycle of development, commercial, and manu-facturing alliances. A founding 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 history, including worldwide partnerships with Bristol-Myers Squibb, Boehringer Ingelheim, and Daiichi Sankyo. He serves on ASAP’s BioPharma Council as well as the advisory committee for the ASAP Certifi cation and Standards Proj-ect. Twait earned a bachelor of science degree in electrical engineering at Valparaiso Uni-versity and an MBA at Indiana University’s Kelley School of Business. He can be reached at [email protected], +1-317-276-5494.

John R. Hayes, MD, 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 corporate 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 disor-der through research, education, reduction of stigma, and informed public policy. John can be reached at [email protected]

— The feelings associated with a person’s fi lter: “I completely understand why you feel so frustrated with math right now, but it seems as if we both can see why it is an important subject for your future.”In addition, it is good to keep several other principles in

mind to ensure that you are managing confl ict constructively: 1. Know the diff erence between pointing things out and

attacking, and know how to make that diff erence felt by the other party.

2. Have a trusted colleague read any written communication being sent to a partner. Have him or her focus on looking for “loaded” or biased wording and overall tone. This is especially true of any highly emotionally charged communications.

3. Don’t be afraid to change your own perception of the events and facts when given better and clearer information. Be the change that you want to see in others.

4. Allow enough time for your partner or your own organiza-tion to process new information. Change does not always happen quickly.

5. Become an expert in gauging how much time it takes for each organization to process new information.

6. Develop the ability to correctly determine the importance of a particular issue to your company and to your partner. Some confl icts can be quickly diff used when you realize that the issue is not really critical to your own company and perhaps is very meaningful to your partner.

7. Adapt your strategies for dealing with confl ict to suit the

matter at hand. Some confl icts should be largely ignored, while others may need immediate attention. Know the diff erence and whom to call for advice when you don’t.

8. If you make a mistake, stop and take time to apologize and get the resolution process back on track.

9. Continually read and practice the art of positive confl ict management. Here are a few books that have infl uenced our way of thinking:

– Crucial Conversations: Tools for Resolving Broken Promises, Violated Expectations, and Bad Behavior by Kerry Patterson (McGraw-Hill, 2004)

– The One Minute Manager by Kenneth Blanchard and Spencer Johnson (William Morrow, 1982)

– Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher, William Ury, and Bruce Patton (Penguin, updated and revised edition, 2011)

Eff ectively managing confl ict is a skill that can take years to master. There are full-day, week-long, and semester-long courses on how to manage confl ict. While this article provides several commonsense techniques that should be added to your arsenal, we as alliance managers need to pursue our personal journeys toward being better confl ict managers. The opportunities we have to create value for the alliance when managing through critical infl ection points further solidify the value our profession can add to each company’s bottom line.

41Quarter 1, 2012

Translating Success in Asia

As the Business World Tilts Further Toward the Eastern Hemisphere, Companies Need Local Partners to Help Navigate Th ese

Emerging Markets—and Quickly!By Jon Lavietes

BY NOW, IT’S NO SECRET THAT NATIONS IN ASIA ARE the present and future

of the business world. No longer just a dumping ground for low-grade tasks, these

countries off er global organizations more than just manufacturing cost–cutting

opportunities. Th ey are the source of many of the world’s biggest and fastest-growing

consumer markets and off er a bounty of sophisticated expertise for many industries.

Whether they are exploring already booming economic titans China and India, or

their increasingly prosperous neighbors such as Indonesia, Vietnam, Malaysia,

Th ailand, and Cambodia, global companies are still scrambling to get a handle on

the wide variety of legal, cultural, and logistical challenges that come with the increas-

ingly mature business initiatives being tackled in these regions.

43Quarter 1, 2012

STRATEGIC ALLIANCE MAGAZINE | SPECiAL FOCUS | EMERGING MARKETS

Paul Conrad, director of alliance management for AMAG Pharmaceuticals.

C. S. Nair, chief executive officer at Core Points Group.

Mark Benvenuto, CA-AM, director of international alliances for Cubist Pharmaceuticals.








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

45Quarter 1, 2012







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

FIGURE 1:PHARMERGING MARKETS

1125

750

375

0

BILLIO

NS O

F DOL

LARS

Pharmerging MarketsSource: IMS Market Prognosis, April 2011

2005 2010 2015

EUS US Rest of the World47Quarter 1, 2012

Partnering to Maximize Rewards

in Pharmerging Markets

Alliances Allow a “Think Globally, Act Locally” Approach to

Opportunities in Developing MarketsBy Jack W. Pearson, MBA, CSAP

GLOBAL SPENDING ON PHARMACEUTICAL DRUGS WILL reach nearly $1.1 trillion by 2015, according to IMS Health. This reflects an annual sales growth rate of 3 to 6 percent. But hidden behind these numbers there are unprecedented dynamics at play, which are shifting the mix of spending between branded products and generics and between mature and emerging markets.

Growth in mature Western markets has been slowing down, mainly due to market saturation, the economic slowdown, health care cost containment efforts, patent expiry of key blockbuster drugs, and increased use of generics.

Pharmerging markets, on the other hand, have seen double-digit growth rates driven by a large population base with unmet medical needs, economic growth, increased prevalence of chronic diseases, and greater governmental involvement in health care. These dynam-ics will result in a significant geographical shift in drug spending. The United States’ share of global drug sales is expected to drop to 31 percent by 2015, down from 41 percent in 2005. But 17 pharmerging markets, led by China, will account for 28 percent of total spending by 2015, up from only 12 percent in 2005.

Global Spending on MedicinesIt is no surprise that the biopharmaceutical industry wants to tap these rising markets where the growth potential could offset stag-nating sales in mature markets, ensure further growth, and cover

increasingly expensive R&D costs. However, efforts to achieve these aims have netted mixed results. Success depends on mov-ing quickly and adapting global strategy through local insights


FIGURE 2:THREE WAYS TO ENTER NEW MARKETS

Mode Conditions Favoring Mode Advantages Challenges

BUILD In-house expertise Full control Substantial investment Core to business Slow, but Extended time to market controlled growth Internal resources available Acquire learning- High risk by-doing expertise Foreign ownership limits

BUY If speed of entry is important Fast market entry Substantial investment (possible mark-up costs) Lack of in-house expertise Full control Complex due diligence and negotiations Need to acquire market Expand Integration of di�erent leadership competencies company cultures Acquire expertise Local SOPs High risk

ALLY Highly di�erentiated Limited investment Share returns business environment Lack of in-house expertise No acquisition Governance and premium integration challenges Huge importance of Shared risks Lack of trust and speed of entry commitment Limited internal resources Fast market entry Inadequate preparation Learn from alliance partner Flexibility Retain IP rights and branding control (depending on structure) Customize for speci�c markets



and experience, but no defi ned strategic blueprint can be applied uniformly across these extremely heteroge-neous countries.

Challenges of Highly Diverse MarketsEntering pharmerging markets comes with several challenges. First, market opportunities are scattered among a host of countries, and to take full advan-tage of growth, drug makers have to enter numerous, enormously diverse markets. Th e uniqueness of each country’s demographics, disease profi les, health care system, governmental controls, and distribution systems requires a thorough understanding of the potentials and risks. No single entry strategy can be successfully applied to all countries.

A company’s product portfolio must match local needs. In general, there is still a high need for treatment of acute conditions, but disease profi les are becoming more similar to those of developed countries and are shift ing toward more chronic diseases. Fast-growing countries can exhibit huge quality diff erences between urban and rural health care services. While urban areas are a solid market for Western patent drugs and branded generics, populations in rural areas use local generics or rely on traditional medicine. It is crucial to understand these subtleties and create market entry strategies with balanced portfolios of branded, patent-protected prod-ucts and lower-cost generics. Infrastructure gaps are an additional challenge, and accessing rural areas requires answering questions regarding distribution networks, safety and counterfeiting, pricing mechanisms, packag-ing, and consumer fi nancing.

Despite a growing middle class in many of these coun-tries, per capita income remains signifi cantly lower than in developed markets, and people’s ability to pay for med-icines varies signifi cantly. Th e majority of drug spending is out-of-pocket, margins are oft en low, and competition can be stifl ing. Negotiating or lobbying for price or re-imbursements is oft en a necessity and constitutes a huge challenge for an outsider. Pharmerging markets also have unique, sometimes unpredictable, regulatory rules resulting from governmental eff orts to curb health care

costs or to spur growth of the domestic biopharmaceu-tical industry. It is important to understand these local regulations and monitor changes to assess their impact on potential growth opportunities. And while intellec-tual property (IP) protection laws have been improved, they still remain inconsistent and weak in countries such as India. Th ese concerns should not be taken lightly, and opportunities need to be weighed against risks.

Partnering to Navigate Risk and Seize OpportunitiesEntering emerging markets forces biopharmaceutical companies to rethink their strategies and adjust them to local conditions. No single entry strategy can be suc-cessfully applied to all countries. Developing true under-standing of the markets is a process that takes time.

Fundamentally, there are only three ways to enter new markets: organic internal growth (build), mergers/acquisitions (buy), or partnerships (ally). No approach is inherently superior, and the best option depends on the specifi c market and company situation.

Most pharmerging markets are characterized by high market and regulatory uncertainty, stiff competition, and complex distribution systems. Biopharmaceuti-cal companies that enter these markets seek speed to

Most pharmerging markets are characterized by high market and

regulatory uncertainty, stiff competition, and complex distribution systems.

FIGURE 2:THREE WAYS TO ENTER NEW MARKETS

Mode Conditions Favoring Mode Advantages Challenges

BUILD In-house expertise Full control Substantial investment Core to business Slow, but Extended time to market controlled growth Internal resources available Acquire learning- High risk by-doing expertise Foreign ownership limits

BUY If speed of entry is important Fast market entry Substantial investment (possible mark-up costs) Lack of in-house expertise Full control Complex due diligence and negotiations Need to acquire market Expand Integration of di�erent leadership competencies company cultures Acquire expertise Local SOPs High risk

ALLY Highly di�erentiated Limited investment Share returns business environment Lack of in-house expertise No acquisition Governance and premium integration challenges Huge importance of Shared risks Lack of trust and speed of entry commitment Limited internal resources Fast market entry Inadequate preparation Learn from alliance partner Flexibility Retain IP rights and branding control (depending on structure) Customize for speci�c markets

49Quarter 1, 2012


profi t from the remaining patent life. All these circum-stances favor alliances as a business strategy for entry. Allying with a partner with established presence and regional expertise allows a company to accelerate mar-ket access and gain an understanding of local condi-tions while limiting resource commitments and risks.

Strategic alliances can create synergy eff ects such as inte-gration of complementary competencies and resources. Th ey also off er benefi ts in addressing local government concerns about foreign ownership and the tendency for local fi rms to receive preferential treatment. Th ey can pro-vide on-the-ground experience of nontransparent state or country regulatory systems and of the most appropriate infrastructure to build.

Choosing the Right Alliance PartnerDespite their apparent advantages, alliances can be challenging, particularly between companies from Western and developing markets. In addition to the well-known hurdles, these partnerships also have to deal with cultural diff erences, language barriers, and signifi cant time zone diff erences across dispa-rate geographies. Careful alliance partner selection is thus crucial.

Given the challenges and unknowns of highly diverse markets, local expertise and cross-functional depth are obviously prerequisites. But equally important is a part-ner’s thorough understanding of Western culture and business practices and adherence to international stan-dards. What a local company might consider standard business practice potentially could violate the code of business conduct of a Western company. U.S. companies, for example, need to ensure that their partners have ef-fective policies in place to prevent any potential violations of the Foreign Corrupt Practices Act (FCPA). Th e phar-maceutical industry is under increased scrutiny by the Department of Justice (DOJ) and the Securities and Ex-change Commission (SEC) for potential violations of this act, and several large pharmaceutical companies have received severe penalties for running afoul of the FCPA.

Th e winners will be companies that select an alliance partner with an extensive network of relationships and a demonstrated ability to overcome unique market and product challenges.

An ideal partner has an established presence in multiple markets, allowing market penetration in diff erent coun-tries with one single partner. It should have complemen-tary skills and be open to fl exibility in partnership design. A strategic alliance that makes sense today may not be the

best option tomorrow. Th us, shorter-term contracts or so-called “exploration alliances” allow companies to test new markets and business models with the fl exibility to respond to new market conditions. Ownership of existing and jointly developed IP rights and brand control needs to be agreed on and well documented. Moreover, allying with a company that is not a current or potential competi-tor helps avoid competing interests.

Alliance Management Is Key to SuccessA partner’s commitment to a dedicated alliance man-agement approach is important for all alliances, but especially for those in pharmerging markets. Hurdles such as undeveloped infrastructure add a level of complexity not encountered in traditional markets. Dealing with these challenges in unfamiliar and rap-idly changing business contexts calls for professional governance structures to alleviate the risk of failure. Alliance management benefi ts partnerships by intro-ducing more rigor to the decision-making process and improving communication. As such, alliances can drive forward aggressively and eff ectively, accelerating commercial opportunities.

Pharmerging markets are characterized by unpredictable changes in the regulatory environment and high fl uctua-tions in demand. Alliance governance structures in such an environment should be fl exible enough to allow for quick response to new challenges and opportunities.

Continued on page 56

Alliances off er benefi ts in addressing local government concerns about foreign ownership and the tendency for local fi rms to receive preferential treatment.


Continued from page 17

payments of about $200 million per drug under the terms of the deal, according to a report from the Associated Press.Immunogen, based in Waltham, Mass., said Lilly will receive some exclusive licenses to use its Targeted Anti-body Payload (TAP) technology to develop cancer treatments. Immunogen declined to say how many licenses it granted to Lilly, which is headquar-tered in Indianapolis. TAP technology includes a tumor-targeting manufac-tured antibody with a cancer-killing agent attached. The antibody delivers the agent specifically to tumor cells, where it is released to kill the cells.Lilly is responsible for developing and selling any products from the agree-ment, and Immunogen could receive royalties on future sales. Ely Lilly & Co. is an ASAP Global Member.

Oracle and Teradata Pursue Business IntelligenceTeradata, a leading analytic data solu-tions company, has announced its next-generation capabilities for companies seeking more control, functionality, and business value from Oracle Business Intelligence (BI) technologies. To accommodate escalating data volumes and end users, companies are pursuing heightened technology capa-bilities that cut through data complexity,

extend the scope of their BI, and speed delivery of new types of useful informa-tion to growing communities of busi-ness users. The Teradata-Oracle alliance seeks to meet this need through ongoing integration and optimization of Oracle Business Intelligence and Teradata platform family technologies. Newly released next-generation BI capabilities will empower IT and busi-ness professionals to effectively leverage geospatial analytics, improve system performance, and enhance management of complex BI environments.

PPD and VirtualScopics Expand Medical Services AlliancePharmaceutical Product Development, Inc. (PPD), and VirtualScopics, Inc., announced that they have expanded their successful one-year strategic alli-ance in clinical and medical imaging services across multiple therapeutic areas to now include oncology, central nervous system, cardiovascular, general medicine, and medical devices. The companies deliver integrated, customized clinical and medical imag-ing technologies using an innovative, patented, algorithm-based approach to image processing and biomarker mea-surement. The goal is for biopharma-ceutical companies to be able to make faster, more confident decisions about the status of their compounds from early phase through post-approval. “Medical imaging plays a critical role in advancing drug development, and this alliance strengthens our global research and development services across several large disease areas,” said Paul Colvin, executive vice president of global clinical development for PPD. “Through our strategic alliance with VirtualScopics, we are able to provide clients with more advanced imaging data via an integrated solution so they can make important develop-ment decisions related to patient safety and eligibility protocols, drug efficacy, and study endpoints.”

Heavy Hitters Form Big Alliance: Multiplayer Collaboration on Memory InitiativeMajor electronics companies Panasonic Corporation, Samsung Electronics Co., Ltd., SanDisk Corporation, Sony Corpo-ration, and Toshiba Corporation an-nounced just before Christmas that they have reached an agreement in principle to collaborate on a new content protec-tion technology for flash memory cards such as SD cards and various storage devices. Under the “Next Generation Secure Memory Initiative,” the five com-panies will start preparing for licensing and promotion of HD-capable security for SD cards and embedded memory for use in advanced consumer applications such as tablets and smartphones. The five companies believe this technol-ogy will enable various HD content applications such as HD network download, broadcast content to go, and HD Digital Copy/Managed Copy from Blu-ray Disc 2 media. With these ap-plications, users will be able to view HD content on a wide range of devices, in-cluding Android 3–based smartphones and tablets, TVs, and Blu-ray 4 products. The companies are also betting they each can make substantial contribu-tions that, when combined, will enable them to start licensing the new secure memory technology early in 2012. They expect to see adoption of flash memory products and various embedded flash memory solutions using this technology in the market this year.

GE Healthcare and M+W Group Form Biopharma Alliance to Help Emerging Nations GE Healthcare, the healthcare business of General Electric, and M+W Group, a global engineering, construction, and project management company, an-nounced that they have formed a strate-gic alliance aimed at overcoming the lack of key biopharmaceuticals in emerging nations. The alliance, which will combine

Collaborative Buzz

“Medical imaging plays a critical role in advancing drug

development, and this alliance strengthens our global research

and development services across several large disease areas.

Through our strategic alliance with VirtualScopics, we are able

to provide clients with more advanced imaging data.”

51Quarter 1, 2012

GE Healthcare’s expertise in technolo-gies for biopharmaceutical manufacture with M+W Group’s global capabilities in bioengineering and construction, will assist countries worldwide to become self-sufficient in the manufacture of vital biopharmaceuticals such as vaccines, insulin, and biosimilars. Together, the companies will offer governments and pharmaceutical com-panies an integrated, cost-competitive, “turnkey” approach for the construction of biopharmaceutical manufacturing plants to help meet the rapidly increasing worldwide demand for these potentially lifesaving treatments. Worldwide demand for vaccines, insulin, and other biopharmaceuticals such as an-tibodies to treat cancer and rheumatoid arthritis is increasing dramatically, driven by the global aging population, rising obesity levels, and the worldwide effort to reduce the incidence of vaccine-pre-ventable diseases. Many countries have limited capabilities for the manufacture of these products, resulting in consider-able unmet health needs. The introduc-tion of local “in country, for country” flexible manufacturing capabilities could help overcome this critical health gap.

Ethiopian Airline Takes Off with Star AllianceIn a move to improve its services, the Ethiopian Airline has joined the global airline network Star Alliance, according to The Guardian. A press statement issued by the company said joining the Star Alliance would make the airline stronger, and that because of competition and an unstable busi-ness environment, the aviation indus-try will likely see greater numbers of such alliances formed.Through Star Alliance, the Ethiopian Airline will be able to access 21,410 daily flights in 189 countries. The thinking is that more travelers from Ethiopia and across Africa will benefit from Star Alliance’s worldwide reach.Ethiopian will thus become part of an airline alliance network of some 4,382 aircraft, 409,152 employees,

652.24 million passengers transported per year, and sales revenue of more than $160 billion. With prearranged domestic flight discount packages for passengers arriving from international Star Alliance networks, Ethiopian hopes to be able to increase traffic flow to the country, promoting Ethiopia as a major tourist destination.

Amgen and Watson to Collaborate on Oncology MedsAmgen, Inc., and Watson Pharmaceu-ticals, Inc., have announced that they will collaborate to develop and com-mercialize worldwide several oncology antibody biosimilar medicines. Under the terms of the agreement, Amgen will assume primary respon-sibility for developing, manufactur-ing, and initially commercializing the oncology antibody products. Watson will contribute up to $400 million in codevelopment costs over the course of development. In addition, Watson will contribute its expertise in the commer-cialization and marketing of products in highly competitive specialty and generic markets. The collaboration products are expected to be sold under a joint Amgen/Watson label. “The pairing of Amgen’s 30 years of experience in biologics together with Watson’s substantial generics and specialty pharmaceutical experience and complementary commercial and distribution capabilities provides great potential for worldwide patient access to high-quality oncology biosimilar medicines,” said Robert A. Bradway, Amgen’s president and COO. “Bio-similars provide an exciting long-term growth opportunity for Amgen. We have a dedicated team to leverage exist-ing capabilities and capacity and drive the success of the collaboration.”

Numerate Collaborates with Boehringer Ingelheim on In-Silico Drug DesignNumerate, Inc., a technology platform company that is leveraging the power of

cloud computing and novel computa-tional methods to transform the drug design process, announced in December that it had entered into a research col-laboration with Boehringer Ingelheim (Canada), Ltd. The collaboration will utilize Numerate’s proprietary in-silico drug design technology to generate small-molecule drug leads for an undis-closed infectious disease target. “Using our large-scale computational drug design methods, we expect to greatly reduce the time and cost of de-livering new lead-stage, small-molecule drug candidates in this important pro-gram for Boehringer Ingelheim,” said

Numerate’s CEO, Guido Lanza. “This collaboration is the latest in our growing number of partnerships with pharma-ceutical companies that are looking to Numerate’s comprehensive in-silico drug design technology to help them increase their success rate in generating novel, patentable small molecule leads.”Numerate’s drug design platform features a set of proprietary algorithms that provide predictive models for molecular properties with accuracies comparable to those in laboratory test-ing. Used in conjunction with cloud computing, these algorithms enable Numerate scientists to search through spaces of billions of compounds to rapidly and efficiently identify those with the highest probability of activity against a specific target. n

Worldwide demand for vaccines, insulin, and other biopharmaceuticals such as antibodies is increasing dramatically. Local “in country, for country” flexible manufacturing capabilities could help overcome this critical health gap.







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

For too long, we’ve done the most important job nobody knows about. Despite playing an increasingly critical role in industry after industry, alliance professionals have remained off the radar screens of most business media. So the story of ASAP and strategic alliances has rarely been heard by general business audiences – or even within our own profession.

Now that’s changing, thanks to the launch of ASAP Media and its flagship, Strategic Alliance Magazine. Self-publishing helps other professional associations – such as the American Marketing Association and the Project Management Institute – to share best practices, educate external audiences, and create pride in their profession. Now Strategic Alliance Magazine and ASAP Media will do the same for ASAP and the alliance profession as a whole. But we still need your help – as an ASAP Benefactor. Please consider supporting Strategic Alliance Magazine, at one of the following levels:n Silver Benefactor: $50n Gold Benefactor: $100n Platinum Benefactor: $150n Titanium Benefactor: $500

All individual benefactors will be named – along with their company and ASAP chapter if desired – on a special page of the magazine. As a benefactor of Strategic Alliance Magazine, you support the media that support you.

Don’t miss this one-time chance to help launch your profession’s new media. Visit www.strategic-alliances.org today!

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55Quarter 1, 2012







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Pharmerging Markets: continued from page 49

Rather than trying to anticipate every possible issue that could arise in a partnership, the governing documents should focus on the processes for resolving them. A dedi-cated alliance management unit should work with each partnership to ensure a successful execution, using a suite of proven alliance governance tools. This unit reports directly to executive management, independent of op-erating units, expediting decision making and ensuring commitment to the long-term success of relationships.

But the ultimate success of alliances, especially in phar-merging markets, relates not only to technical compe-tency and governance, but also to the cultural framework. Partners need to have a collaborative alliance mindset and a culture built on trust and open communication. Allianc-es among such partners need fewer control mechanisms to ensure that everyone adheres to established policies. In-stead, partners can singularly focus on achieving results, tapping the full potential of promising growth markets. n

Jack W. Pearson, CSAP, MBA, recently served in a role man-aging a team of senior level executives who compose Quin-tiles’ innovative, award-winning Global Alliance Management Group. The article, which con-tains intellectual property from Quintiles, was written shortly before he left the company. Mr. Pearson still serves as vice chairman and chairman-elect on the Association of Strategic Alliance Professionals (ASAP) Board of Directors and participates on its Execu-tive Committee. He also sits on the advisory board of Deal- Gen, LLC, an organization that operates to engage and facilitate strategic partnership arrangements. In his mar-ket development role, Mr. Pearson evaluated new markets and investment models as Quintiles continues to build its global presence. Recently, he led new market entry activi-ties in Latin America and the Russian Federation, opening new channels of business opportunities for Quintiles.







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57Quarter 1, 2012

Be a Part of Ongoing Research into the State of AlliancesDave Luvison, CSAP, and Ard-Pieter de Man, CSAP, have been engaged in ongoing research into the state of al-liances and alliance management for several years. In the latest installment of their work, they will be presenting the results of their 4th State of Alliance Management study at ASAP’s Global Alliance Summit in Las Vegas, March 5–8, 2012, which will include an overview, a deep dive into the data, thoughts on future directions of this research, and an interactive Q&A session with Summit attendees.

For their continuing work on alliances, alliance manage-ment, and the development of alliance culture, Luvison

and de Man are very interested in having more companies get involved by filling out questionnaires. All information gathered in these studies is kept confidential, and goes back to participants in the form of confidential reports. Additionally, there is no cost involved to participate. “It’s not a consulting gig,” Luvison stressed. “It’s just about getting good data.”

To learn more or to participate in the ongoing study, contact Luvison and de Man at [email protected] and [email protected].






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


Even with strong profi ts, low interest rates, and bargains aplenty, continuing economic uncertainty has kept funding for strategic in-vestments constrained across the board. In a 2011 McKinsey Global Survey of more than 1,500 executives in 90 countries, more than half of respondents said their companies are underinvesting in key areas across their businesses from sales to marketing to IT and everywhere else in the enterprise. Strikingly, even in the critical area of product development, two-thirds of executives said their companies are insuf-fi ciently spending—and 40 percent indicated their companies need to spend “much more” to maximize value creation. Yet, “executives are forgoing opportunities that, despite today’s volatility and uncertainty, are probably worthwhile,” the McKinsey Quarterly editors write.

For alliance managers, this might mean even the most collaborative companies may not be investing what they should into developing alliances and their overall alliance capability. However, there’s no doubt that alliances are more central than ever before to the growth and competitive strategies of companies across many industries. Th erefore, chief alliance offi cers and their CEOs certainly have no shortage of reasons to justify sustaining, and oft en selectively increasing, their investment in alliances—and the competencies necessary to execute them.

Alliances in many cases can provide greater leverage and greater agility for limited investment dollars.

“Companies have been transitioning toward smaller, more fl exible structures with increased reliance and interdependence on external alliance partners for some time now,” Quintiles’ leader Dennis Gill-ings points out in our magazine’s new CEO Forum.

Alliances off er especially compelling payback for companies in in-dustries undergoing fundamental transformation. If you want to alter the way you do business, as Gillings says, strategic alliances represent “one of the most eff ective ways to become more fl exible, more nimble, and more successful.”

Th at said, companies can’t leverage alliances without substantially in-vesting in alliance management competencies. Fortunately, alliance management represents a model of high leverage in most partner-ing organizations—compared with, say, the IT department, alliance management offi ces are small, lightly staff ed organizations with modest overhead that typically deliver a proportionally huge bang for every dollar spent. We have heard of alliance managers saving their companies up to seven fi gures simply by altering how alliance proj-ects are categorized or negotiating side agreements that capture value left on the table.

So the good news in these tight-fi sted times is that—whether your company is just embarking on the alliance management journey or a veteran of many partnering voyages—massive investment in alliance management isn’t necessary to achieve success through alliances. Conversely, though, that investment—at the modest level required—is more essential than ever before.

Simply put, your company can’t leverage alliances with consistent success without a certain critical mass of professional alliance management expertise and leadership. Th is means investing not just in the salaries (and frequent travel expenses) of professional alliance managers, but also in the professional development op-portunities and resources that ASAP uniquely makes possible—CA-AM and CSAP certifi cation, the Global Alliance Summit, local ASAP chapters, and of course ASAP Media and Strategic Alliance Magazine. It also means making the investments in alli-ance management consulting services, collaborative technologies, marketing and communication, and training resources that are be-coming critical to manage the increasing scale and complexity of alliance portfolios.

Bottom line? Investing in professional alliance management, even in a challenging economy, is money well spent. n

Making the Alliance InvestmentCompanies May Be Parsimonious with Th eir

Cash—But Th ere’s Good Reason to Increase Investment in Alliances and Alliance Management

By John W. DeWitt and Jon Lavietes

the close

DESPITE ENCOURAGING ECONOMIC SIGNS FROM SOME QUARTERS, 2012 promises to be another challenging year for any leader—whether chief executive offi cer or chief alliance offi cer—who has to justify increased corporate investment.

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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

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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.

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