The life cycle of values-driven alliances
Sustainability alliances continuously go through a cycle of forming, building, developing and evolving, not without facing unavoidable tensions and paradoxes.
Values-driven alliances are specific alliances in the sense that they focus on contributing to a better society. There are many models that represent the life cycle of alliances. Based on my own experiences with values-driven alliances, I describe the life course in four phases: forming, founding, evolving and transforming. These four stages are not linear stages in the alliance life cycle. It is a dynamic and continuous pattern full of paradoxes and tensions.
Forming alliances
Initiating alliances is primarily about forming the alliance. At this stage, the foundations are laid. It is the phase of getting to know each other and exploring possibilities to strengthen each other. It is mainly about developing trust and investing in relationships. Individual motives and involvement play a role here, as do relational qualities. Collaborating on innovation benefits from the power of differences.
In the formation phase, formulating the mission of the new alliance is of crucial importance. Although the initiating members initially develop a common mission, the mission will be further elaborated in the coming phases and adapted if necessary. A meaningful and appealing mission gives stability to the alliance. This is the main reason why this stage is so important.
In addition to a common mission, it is also about mutual trust and thus the question of who participates and who does not. Choosing the right formative members is relevant because they will initially inspire others, lead the way for other members, and play a leading role in the alliance almost forever. The first members commit to and help accomplish a mission that is perfected over time.
Building alliances
The second phase in the life cycle of alliances is about building the alliance based on the initiative of the first members. This raises questions about suitable forms of cooperation and business arrangements in which the position and specific input of the partners is regulated. Form and content create clarity about power relations and decision-making procedures. Agreements are made about investments, cost distributions and revenues to prevent conflicts of interest and the breakdown of cooperation. The search for the common identity is central to this: the question of the essence of the alliance and how it can be shaped and laid down in a business arrangement.
Building alliances also involves organizational choices as an alliance expands and its membership increases. Mapping relationships and relationship patterns is a skill, just like working on mutual trust. It's about bringing people from different worlds together and looking for a common identity and shared meaning, without losing sight of the mission. In this phase, the control of the alliance starts to take shape and works better and better. Depending on the type of alliance, a professional team is appointed to manage the day-to-day functioning of the collective.
Developing alliances
The third phase concerns the development of an alliance. The partnership will now focus on setting more ambitious goals and delivering results. Now it is about bringing together ambitions and achieving a common objective. In order to fulfil their social mission, the members in the alliances will make every effort to have more impact in realizing a just and sustainable society.
In this phase, visible results are important to continue to invest in the collaboration. Results stimulate the partners and make the added value of the collaboration tangible. If concrete results are not forthcoming, there is a good chance that the cooperation will come under pressure and fall apart. That is why in this phase the way of working and the coordination and management of activities in the alliance are central. Based on the mission and vision, we work on formulating goals, naming activities and dividing tasks and roles. Process skills are essential at this point, as is a sense of relationships within the alliance. It's all about the art of dealing with paradoxes and tolerating differences.
Evolving alliances
The fourth phase is about evolving the alliance. A healthy alliance will develop naturally and not be forced into a radical transformation where the alliance will go through a new formation process. In this phase, the alliance faces the challenge of continuing to innovate and adapt as the context changes and pressure increases. In the long term, the results and the visible importance of the alliance may decline, as the will to continue to invest energy in it. Then the question is whether the alliance is capable of renewing and reinventing itself.
Careful cooperation is also essential in this phase. It revolves around the question of how the collaboration can be maintained and renewed. When transforming alliances, there is an art to recognizing stagnations and addressing them. Strong and visionary leadership is needed to deal with different visions of problems and perspectives for the future. It often involves shared or collective leadership. The sincere involvement of key figures is essential in this respect.
A continous cycle
Values-driven alliances continuously go through the life cycle of forming, building, developing and evolving. Due to their social orientation, values-driven alliances face challenges at all stages of life and throughout their lifespan that they must find answers to. Activities in the life cycle can run in parallel. For example, partner selection is an ongoing process, while changes in the environment can affect the activities and scope of the alliance. The mission and vision can be changed, innovative projects can be started and ended and management models can be adjusted.
The most complicated phases of an alliance are probably the development and evolving phases. A good creation process in the formation phase and a careful development process in the building phase are important for a healthy evolution and valuable transformation. In the development phase, a shared mission with a clear vision guides the alliance through this phase, where shared values and guiding principles provide stability in this process of change and development. The evolving phase seems to be the most dynamic phase, as the mission and purpose of the alliance can be questioned. The evolving phase can be evolutionary or revolutionary with a complete transformation of the alliance. Before entering the evolving phase, it is important to foresee the future of the alliance in an ambiguous, uncertain and dynamic world.
Visiting professor, Department of People Management & Organisation at Esade Business School
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