The concept of strategic collaborations appears to have a lot going for it, especially for companies that want to enter new markets but are not that familiar with their dynamics. All you had to do was locate a suitable partner that already sells into that market and has a familiarity with it and have them help you understand how to penetrate that market. At the same time you will help them achieve one or more pre-established objectives that will benefit their company. It sounds so simple and foolproof, yet approximately 70 percent of all alliances fall apart within the first year.

Other rationales for using alliances include narrower marketing windows and downsizing both of which have made many corporations realize they cannot do everything themselves. Alliances are an excellent way to share costs and risks and deal with uncertainty. Some companies even use alliances as a pre-acquisition test before committing to a formal merger. The bottom line is that the alliance must be a Win-Win for both parties. How such an alliance is structured, is critical to its success.

Here is a basic checklist to consider when structuring an alliance:

• Both companies must be focused on the same objective.

• Each of the parties must have the flexibility to change to meet changing circumstances.

• The alliance must have wholehearted support from senior management.

• It must maintain excellent internal and external communications.

• It must have compatible corporate cultures.

• It must enjoy the building of trust between the players.

• The "point people" from each company must be of peer ranking, that is they should each be officers or senior management.

• Most important, measurable goals must be established for each of the parties so that the degree of progress can be measured and mutual goals reached within an appropriate time frame.

• If one party benefits within a short time period, there is little incentive for them to continue to work on behalf of the other party.

It is also important to develop a profile of characteristics for your ideal partner. You should also complete this same profile which shows how a potential partner sees your company. This latter exercise has caused many companies to take a second look at themselves and even rethink their objectives. This exercise makes the search for a partner more honest, more real, and more likely to be successful.