Organizational Sustainability


Stages of Alliance Formation2

A typical strategic alliance formation process involves these steps:

  1. Strategy Development: Strategy development involves studying the alliance‘s feasibility, objectives and rationale, focusing on the major issues and challenges and development of resource strategies for production, technology, and people. It requires aligning alliance objectives with the overall corporate strategy.
  2. Partner Assessment: Partner assessment involves analyzing a potential partner‘s strengths and weaknesses, creating strategies for accommodating all partners‘ management styles, preparing appropriate partner selection criteria, understanding a partner‘s motives for joining the alliance and addressing resource capability gaps that may exist for a partner.
  3. Contract Negotiation: Contract negotiations involves determining whether all parties have realistic objectives, forming high calibre negotiating teams, defining each partner‘s contributions and rewards as well as protect any proprietary information, addressing termination clauses, penalties for poor performance, and highlighting the degree to which arbitration procedures are clearly stated and understood.
  4. Alliance Operation: Alliance operations involves addressing senior management‘s commitment, finding the calibre of resources devoted to the alliance, linking of budgets and resources with strategic priorities, measuring and rewarding alliance performance, and assessing the performance and results of the alliance.
  5. Alliance Termination: Alliance termination involves winding down the alliance, for instance, when its objectives have been met or cannot be met, or when a partner adjusts priorities or re-allocates resources elsewhere.


The Valmiera Region Community Foundation (No. 14) wants to establish strong and engaged partnerships with seven new municipalities to achieve greater local government support for its projects. Thus it plans to set up meetings with mayors and their executive staff, agree on forms of partnership, and arrange publicity campaigns for these meetings.

The John D. Gerhart Center for Philanthropy and Civic Engagement recognizes that a joint initiative with the corporate sector will result in more effective resource mobilization that may result from having a wider base fundraising-wise. Thus efforts are directed primarily to “a) engage the corporate sector more effectively in its Corporate Sustainability Capacity Building Program; b) hold focus groups with members of the Egyptian corporate sector; c) distribute a basic survey to companies beyond Egypt in the Arab region to identify their capacity building needs (use phone conversations, face to face meetings); e) identify five companies in the region that we can begin to build partnerships with ; and f) develop a partnership agreement/proposal specifically for the private sector.

The Cahul Community Foundation believes that if the local public administration (LPA) becomes a donor to its grant matching program, then its impact as a grant-making institution will be increased. Thus it will convince the LPAs to be its partner through a series of planned steps.

2: Loc. Cit.