1. Achieving the Impossible Through Partnerships and Alliances Shirley Payne & Martha Sites University of Virginia 2006 EDUCAUSE Conference October 9 th, 2006 Copyright Shirley Payne and Martha Sites; 2006. This work is the intellectual property of the authors. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

2. Agenda Definitions Creating Partnerships Case Study 1 Maintaining Partnerships Case Study 2 Success Factors Wrap-up

3. DEFINITIONS

4. Alliances / Partnerships are… “a unique organizational structure to enable co- operation between companies” Financial Times, May 9, 2000 “collaborative relationships between two or more firms with the intent of accomplishing mutually compatible goals that would be difficult for each to achieve alone.” Alliance Management: The Journey Towards Partnerships, Robert Spekman

5. Characteristics…  Strategic, not tactical  Focused on long-range goals and major economic benefits  Features:  tight linkages  vested interests  high level support  cooperation and collaboration

6. Types… Higher Ed Business Internal Units Non-profits Government Entities

7. CREATING PARTNERSHIPS

8.  Strategic Development  Partner Assessment  Contract Negotiations  Control/Implementation Creating Successful Partnerships Source: from the works of Robert Spekman

9. Strategic Development Strategic Development Driving Force  Clearly Defined Priorities  Ability To Articulate Goals

10. Partner Assessment Strategic Development Partner Assessment  Same goals?  Same values?  Past history?  Alliance experience?  Respect?  Expectations? Partnership Foundation

11. Special Challenges…  Complex procurement laws and processes  Legislative and public scrutiny  Delicate balance between institutions’ open culture and corporations’ tendency toward secrecy

12. Negotiations Strategic Development Partner Assessment Negotiations  Success Measures  Rights  Responsibilities  Maximize Strengths Achieve Balance

13. Avoid Contract Paralysis  Scope  Purpose and Vision  Expected Benefits  Commitments  Management Structure  Problem Resolution Process

14. Control / Implementation Strategic Development Partner Assessment Negotiations  Structure  Processes Increase Stability Control/ Implementation

15. 5 Levels of Integration Cultural Interpersonal Operational Tactical Strategic Source: “Collaborative Advantage: The Art of Alliances,” Rosabeth Moss Kanter

16. Strategic Integration Partner Goals & Objectives Involves: Executives

17. Tactical Integration Partner Project Plans Involves: Middle Managers/Professionals

18. Operational Integration Partner Access Involves: Workers

19. Interpersonal Integration Partner Relationship Building Involves: All levels

20. Cultural Integration Partner Communication & Awareness Involves: All levels

21. Power of Participation Partnership champion is important, but… ownership must occur at all levels Source: from works of Arie De Geus and Margaret Wheatley

22. Case Study 1

23. Digital Media Center Partnership Strategic Development Partner Assessment Negotiations Control / Implement- ation

24. Digital Media Center Partnership Levels of Integration Operational Tactical Strategic 5 Levels of Integration -- from works of Rosabeth Moss Kanter Cultural Interpersonal

25. + LIBRARY + ITC Digital Media Center Partnership UNSUCCESFUL ALLIANCE

26. Digital Media Center Partnership Steps in Developing Alliances and Partnerships 1 st attempt2 nd attempt Strategic Development Partner Assessment Negotiations Control / Implementation

27. MAINTAINING PARTNERSHIPS

28. Don’t become a statistic!

29. Reasons for Failure 0 50100 Lack of partnership experience Cultural mismatch Misunderstood operating principles Lack of financial commitment Slow results or payback Lack of shared benefits Poor communications Overly optimistic 20 Caution 28 31 32 Critical 42 49 54 73 Danger Source: “Alliance Analyst” Survey of 455 CEO’s

30. “Insufficient attention to post-deal alliance management can ruin a promising relationship.” Source: “Alliances and risk: security a place in the victory parade,” Gomes-Casseres

31. Reasons for Failure -- from “Alliance Analyst” Survey of 455 CEO’s 0 50100 Lack of partnership experience Cultural mismatch Misunderstood operating principles Lack of financial commitment Slow results or payback Lack of shared benefits Poor communications Overly optimistic 20 Caution 28 31 32 Critical 42 49 54 73 Danger Partnership Management Can Address These Source: “Alliance Analyst” Survey of 455 CEO’s

32. Importance of Partnership Managers “The alliance manager is the person charged with carrying the alliance forward at each stage in its life cycle. The research suggests that above all, the alliance manager is a manager who shoulders the responsibility of the business of the alliance and must also assure that the alliance maintains its course to achieve its goals and objectives.” Source: “Creating Strategic Alliances That Endure”, Spekman, Isabella, MacAvoy, Forbes  Helps build trust  Helps stabilize alliance

33. Manager’s Role Promotes partnership internally Facilitates partnership activity initiation Solves resources issues Facilitates information flow internally and across partnership Manages conflict Identifies new opportunities for partnership Source: U.Va. Darden Strategic Alliances Project

34. Characteristics of Effective Partnership Manager In-depth understanding of organization’s mission and operation Extensive, positive working relationships within the organization Long-range perspective Open-minded Places high value on information sharing & is effective in communicating at all levels Good mediator Seeks shared commitment & recognition for the contribution of all Source: U.Va. Darden Strategic Alliances Project

35. Helpful Management Practices  Involve people who are concerned for partnership welfare  Resolve conflicts promptly  Hold regular reviews of partnership health

36. Governance Example 1 Partnership Council Project Co-Managers Project Co-Managers Project Co-Managers Partnership Responsibility Project Responsibility Project Facilitation

37. Governance Example 2 Partnership Council Working Committee* Project Co-Managers Project Co-Managers Project Co-Managers Partnership Responsibility Project Responsibility Project Facilitation *Co-chaired by partnership managers

38. Sources of Static External to and beyond control of partners Internal to and within control of a partner Directly related to and within control of partnership

39. Static External to Partners Examples: Changes in government or politics Changes in regulatory environment Constraints created by social policies Shifts in market or competitive dynamics Significant technological breakthroughs Other? Source: “Identifying Sources of Static in Alliances,” U.Va. Darden Strategic Alliances Project

40. Static Internal to a Partner Examples: Poor financial health Change in strategic intent Partner restructuring or reorganizing Management infighting or power struggle Conflict between organization and partnership goals Uneven buy-in to partnership goals and purpose Other? Source: “Identifying Sources of Static in Alliances,” U.Va. Darden Strategic Alliances Project

41. Static Within Partnership Itself Examples: Incompatibility of managers Clashes due to partner organization culture Clashes due to national culture Communication problems from time zone differences Inadequate face to face time for managers Source: “Identifying Sources of Static in Alliances,” U.Va. Darden Strategic Alliances Project

42. Static Within Partnership Itself More examples: Abrupt change in partnership managers Uneven buy in of partners Breaches of faith or trust Perceived inequity of contributions or benefits Inability or unwillingness to make hard choices Other? Source: “Identifying Sources of Static in Alliances,” U.Va. Darden Strategic Alliances

43. Case Study 2

44. VA SCAN Purpose To strengthen security programs across Virginia by:  integrating and making available field-proven tools, best practices, and people from VA SCAN partner institutions;  linking existing models and knowledgebase with security research, instruction, and federal/state government initiatives

45. Initial Partners Security Practitioners at  George Mason University  James Madison University  University of Virginia  Virginia Tech Security Researchers at  Institute for Infrastructure and Information Assurance (JMU)  Center for Secure Information Systems (GMU)  Critical Infrastructure Protection Project (GMU/JMU)

46. Current Offerings Instructional materials and on-site training “Ask the expert” email service and on-site consulting Web-based toolkit of effective practices & tools Self-assessment checklist for Commonwealth of Virginia security standards Information resources provided through:  mail list for general security discussions,  a VA-CIRT group for tracking new threats,  periodic information sharing meetings  linkages to other information sources Annual conference Professional training events

47. Governance Structure Advised by: Volunteer Schools Virginia HE CIO Council Client Surveys

48. Business Model Services provided either free of charge or on an expense recovery basis Partners absorb cost of staff time within reason Website design and hosting provided by Institute for Infrastructure and Information Assurance Critical Infrastructure Protection Project is funding graduate assistant for one year

49. Governor’s Technology Award Winner September, 2003 EDUCAUSE Excellence in Information Technology Solutions Award Winner October, 2005

50. Recent Changes New Partner: Virginia Commonwealth University Expanded Scope: IT Auditing Website Redesign

51. Future Direction Expand scope to K-12 Promote and collaborate with similar efforts in other regions Pursue grant funding for development of additional service offerings

52. Case Study Questions: What factors are contributing to ongoing success of VA SCAN? What sources of static have the potential to cause serious problems for VA SCAN? What strategies might VA SCAN undertake to address these?

53. Partnership Reviews What: Joint examination of partnership health Who: Partnership managers and sponsors only When: Annually, or when significant changes or unanticipated problems arise Source: U.Va. Darden Strategic Alliances Project

54. Partnership Reviews - Preparation Review partnership goals and objectives  Are they still worth pursuing? If not, why not?  What new goals and objectives should be explored? Assess progress toward goals and objectives  Have there been shortfalls? If so, why?  What could be done to enhance progress?  What new projects/initiatives should be launched soon? Source: U.Va. Darden Strategic Alliances Project

55. Partnership Reviews - Preparation Identify issues of concern  Are changes in key personnel imminent?  Are looming external or internal factors that could negatively affect the partnership? Source: U.Va. Darden Strategic Alliances Project

56. Partnership Review Meeting Strive for collegial and confidential atmosphere Leave blame and hidden agendas at the door Communicate simply, objectively, and honestly Address all issues Discuss successes as well as problems Source: U.Va. Darden Strategic Alliances Project

57. Possible Meeting Outcomes Termination of partnership Reaffirmation or modification of goals and objectives Reaffirmation or modification of project/initiative plans Changes in governance structure Minor adjustments to partnership inter- workings Source: U.Va. Darden Strategic Alliances Project

58. SUCCESS FACTORS

59. Recap: Key Strategies For Creating Effective Partnerships Define stakeholders Develop strategic objectives Complete partner assessment Complete document of understanding Establish structure and processes Insure levels of integration

60. Recap: Key Strategies For Effectively Managing Partnerships Involve people who are concerned for partnership welfare Recognize the partnerships must be carefully managed Assign a knowledgeable and skilled partnership manager Resolve conflicts promptly Be mindful of partnership static Hold regular reviews of partnership health

61. ADDITIONAL SUCCESS FACTORS

62. Clearly Define Roles  Examples  Executives - “partnership owners”  Central IT - “prime evaluator” & “manager”  Faculty - “advisors”  Development Office - “facilitator”  Purchasing Office - “advisor”

63. Resource Well Allocate high caliber personnel to partnership initiatives Shoulder resource commitments equally with partner Allocate work so that each partner does what it does best Don’t commit beyond means, i.e. manage to resources

64. Create Environment for Building Trust Establish frequent contact between partner personnel Consider personnel exchange programs Make joint projects the norm Keep communication channels wide open

65. Continuously Communicate Existence of Partnership and Progress Made Use :  The Press  Letters to faculty & department heads  Partnership website  Newsletters

66. Remember that…. “Failed alliances do not achieve what they set out to do, Source: “Alliances and Risk: Securing a Place in the Victory Parade”, Gomes-Casseres but successful alliances achieve much more than their original goals planned for.”

67. WRAP UP