How to manage a portfolio of alliances

Abstract

Many companies have become embedded in a dense network of relationships as a result of intensive alliance activities. A company's alliance portfolio therefore crucially influences its competitiveness and financial performance. This study researches the question of what management tasks - beyond those of managing individual alliances - arise in companies with multiple alliances and how large global companies deal with such tasks. The author analysed the multi-alliance management practices of 25 leading European companies and identified four tasks of portfolio management: Strategy, monitoring, co-ordination and the establishment of an alliance management system. To implement these tasks, companies need to create a dedicated alliance function and develop companywide standards and customised tools for multi-alliance management. This is the only way to ensure that the alliance portfolio contributes to attaining the company's strategic goals. © 2005 Elsevier Ltd. All rights reserved.