Metrics for strategic alliance control

Abstract

The paper develops a feedback control model of product development alliance management. The model allows us to place alliance review, and the metrics for this review, in the context of the control problems facing the alliance manager. We then specify a set of alliance review metrics, and outline the characteristics which they must have. Managers have a pressing need for such metrics, given the management challenges of alliances and the difficulties companies face in making them work effectively. The control model is then expanded to allow for changes in the nature of the alliance itself and interproject learning. The development of the models and of the metrics is guided by the experiences of a large electronic systems manufacturer in alliances with a number of smaller strategic technology suppliers.