1. Creating Effective Alliances
Farmer Cooperatives Conference
Creating Effective Alliances
St. Louis, MO
December 14, 2002
Brian M. Henehan, Sr. Extension Associate &
Bruce Anderson, Assoc. Professor
Department of Applied Economics and Management
Cornell University

2. Cornell Cooperative Enterprise Program
Long standing relations with Ag. Cooperatives in region and U.S.
Teach undergraduate course on cooperative enterprise
Conduct applied research
Deliver extension and outreach program
Coordinate with the NE Cooperative Council, (NECC)

3. OBJECTIVES
Review Critical Factors in Developing Alliances and Joint Ventures
Highlight Ingredients for Success
Stimulate Discussion

4. ECONOMICS OF “TRUST”
High Level of Confidence and Trust in Leaders & Management:
Integrity, Avoid Conflicts of Interest
Clear, Shared Vision, Common Culture
Group Access to Appropriate Information:
Strategies, Financials
Transparency:
Clear, Easily Understood Pricing and Cost Allocation

5. ECONOMICS OF TRUST High Degree of Probability That:
The Venture Will Be Able to Deliver Expected Results
Meet Mutual Goals
A Business Philosophy That:
Focuses on Generating Earnings
Emphasizes Sound Marketing Plan

6. UNDERSTAND RISKS
Marketing
Financial
Reputational
Organizational

7. SOLID DECISION MAKING STRUCTURE
Shared Control:
Players Can Exert Necessary Influence
Clearly Defined Management System
Well Developed Goals & Decision “Rules”:
Outline Measurable and Attainable Goals
Rules Are Fairly Applied
Ability to Change Course or Exit

8. Creating Successful Alliances and Joint Venures
Farmer Cooperatives 2002
Creating Successful Alliances and Joint Venures