Alliances portfolio management. Managing the alliance life-cycle.
Project management often refers to a project’s ‘operating state’. The same can be argued for an alliance. How an alliance is managed is largely influenced by its 'operating state'
Operating state one – just an idea
This is the stage where an alliance is considered possible and valuable but no actions are being taken and no decision has been made to act upon the idea. In order to move the idea into the next state, that of planning, the idea must be promoted amongst the appropriate individuals and a decision must be made to implement a plan.
Operating state two – planning
In this state the alliance is formulated by a team of formally appointed individuals. It is visualised, rendered real and designed. The goals, objectives and strategy of the alliance are defined, along with specific, measurable and do-able short and long- term results to be produced.
The team creates a vision for the alliance. Structures are put in place to enable the alliance to be realized. Individuals take on specific responsibilities and make promises. Communication channels and group structures are established. Timelines are defined along with milestones with which to identify progress.
The pitfalls at this stage are twofold. Some teams could get bogged down in detail which will delay or stall progress. Conversely, the alliance can be kicked off before these necessary policies and structures are clear.
The next stage is when people start working on the alliance.
Operating state three – concentration
This is the hardest state to be in. It involves establishing order and compliance around the alliance.
The concentration stage is characterized by rigour:
The alliance team needs to:
- Box itself in
- Give itself and others no alternative
- Follow instructions
- Establish trust
- Tighten discipline
- Own the alliance
- Be clear and work on short term results
- Focus attention
- Keep its word, no matter what
- Avoid unnecessary actions
- Be resilient and tough
- Grind out results
- Put 10 in get 1 out
The pitfall in this state is to relax and allow too much leeway.
To move to the next state the above characteristics need to have become a context for team cohesion and for freedom to be within the team.
Operating state four – momentum
In this operating state, the structure of the alliance gets strengthened. The strict discipline established in the state of concentration can be relaxed, and team members allowed to be more creative and to play full out.
Momentum is a highly energetic, active phase. Spontaneity and inspiration are present in the team. There is also a high level of relationship and communication, and people from outside get interested in the alliance.
It is appropriate in this phase to promote the alliance to the outside, have it be well thought of, and create a demand for it.
It is also necessary during this phase to heal any wounds left over from concentration.
The alliance vision is communicated, and project management style moves from authoritarianism to guidance.
More work is created, but the work is less hard than in concentration. In this phase, when you put in 1, you get 10.
While in momentum, the objectives of the alliance should be reviewed and revised if necessary. Momentum is a pleasant place to be.
The pitfall here is to get too happy being in momentum, and not to stabilize the alliance.
To move on to stability, acknowledge your results and examine what works and what doesn't.
Operating state five – stability
In the operating state of stability, everything needed for the alliance to be fulfilled is present. The alliance is running smoothly, and its structure is fully understood. That is to say, when an expected result is not produced, it is because a change has been made, and the change can be easily identified and corrected.
In stability, accountabilities are clear-cut, how to produce results is clear and the objectives and measures of the alliance are clear and sufficient.
When in stability, it is appropriate to standardize, write up procedures, make provisions, and train people. Long-term structures can be established for the alliance. Team members can be given more authority and take initiatives. The team can be solidified.
Another term for the operating state of stability is "Business as Usual". One of the pitfalls of this operating state is boredom. It is easy to become bored and slip back into momentum, which is a much more exciting operating state.
To move into the next higher operating state, have the team make a bigger commitment.
Operating state six - breakthrough
Breakthroughs are born of breakdowns. When a alliance goes into stability, or "Business as Usual", it is possible to push it into breakthrough by purposely causing a breakdown.
A breakdown occurs whenever there is a gap between a committed goal and what can be reasonably expected to happen, given the current circumstances, according to past experience and current knowledge.
The resolution of the breakdown must be a departure from the past: unprecedented, extraordinary, a breakthrough. And the larger the commitment, the larger the breakdown and the potential breakthrough.
Most commonly, breakdowns are seen as problems. In fact, they are a demand for extraordinary action. They cause people to shift attention and see things differently. This perceptual change is often the opening that lets people see opportunities for previously unconsidered actions.
Some pitfalls of this operating state are:
- Confusing making a commitment with signing a guarantee,
- Managers assuming people can be directed to be committed to a particular result,
- Team members not unequivocally committed to the overall result.
Operating state seven - emergency
A alliance is in this operating state when it is in the process of slipping back one operating state, such as slipping from momentum into concentration.
Left alone, the alliance will continue to slip, eventually to non-existence.
To correct this state, the team needs to declare an emergency, and find out what happened: either it has stopped doing something that worked, or it has started doing something that doesn't. Then, correct it and put in a policy/procedure to keep it in place.
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