building our multi billion dollar organisation together
TRANSCRIPT
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Building our multi billion Building our multi billion dollar organisation dollar organisation togethertogether
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Industry around the world is Industry around the world is consolidatingconsolidating
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Industry ConcentrationIndustry Concentration
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0 5 10 15 20 25 30
Series1
Railway
Telecoms
Airline Services
Utilities
Insurance
Chemicals/Drugs
Automotive suppliers
Automotive OEMs
ShipbuildingTime
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““Our partnerships and alliances Our partnerships and alliances work because we understand and work because we understand and manage the reasons for failure; manage the reasons for failure; and we leverage an international and we leverage an international business plan with a diversity of business plan with a diversity of markets, options and markets, options and opportunities.”opportunities.”Paul BishopPaul Bishop
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Reasons for failureReasons for failure
Lack of alliance experience 25%Lack of alliance experience 25% Cultural Mismatch 28%Cultural Mismatch 28% Misunderstood operating Misunderstood operating
principles 30%principles 30% Lack of financial commitment 32%Lack of financial commitment 32% Slow results or payback 40%Slow results or payback 40% Lack of shared benefits 50%Lack of shared benefits 50% Poor Communications 53%Poor Communications 53% Overly optimisticOverly optimistic
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Huge benefits in partnering Huge benefits in partnering with us.with us.
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CEOs Top reasons for partneringCEOs Top reasons for partnering
Decrease operating costsDecrease operating costs Employee skillsEmployee skills Improve operations or technologyImprove operations or technology Create more products or increase Create more products or increase
lines of businesslines of business Increase sales of existing Increase sales of existing
productsproducts Improve competitive positionImprove competitive position
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Benefit from a creative approach Benefit from a creative approach making use of several different making use of several different types of options.types of options.
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Our Alliance building ActivitiesOur Alliance building Activities
One off arms length purchase
Collaborative buying
Shared R and D
Preferred Supply relationships
Co-marketing
Minority Investments
Joint Production
Joint ventures
MergersAnd Acquisitions
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Before the deal: Things to find out Before the deal: Things to find out while you are datingwhile you are dating
Time orientationTime orientation Decision makingDecision making CommunicationCommunication InformationInformation Organisational structureOrganisational structure Labor relationsLabor relations TechnologyTechnology Management styleManagement style Government relationsGovernment relations Rate of changeRate of change
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Relationship ActivitiesRelationship Activities
DatingDating EngagementEngagement ““Prenuptial agreement”Prenuptial agreement”
ValuationValuation NegotiationNegotiation AgreeingAgreeing ConfirmingConfirming
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Relationship ActivitiesRelationship Activities
Interface (Delivery begins)Interface (Delivery begins) Hard Choices Hard Choices
Clarifying and growingClarifying and growing Misunderstandings Misunderstandings
(communication)(communication) InterdependenceInterdependence
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Business ActivityBusiness Activity
SearchingSearching IdentifyingIdentifying MeetingMeeting ValuingValuing ConcludingConcluding
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Contract IssuesContract Issues
ObjectivesObjectives Business PlanBusiness Plan Organisational structureOrganisational structure Contribution of each partnerContribution of each partner Rights and obligationsRights and obligations Reward formulaReward formula Investment and compensationInvestment and compensation Measures of performance and performance standardsMeasures of performance and performance standards BudgetsBudgets TaxTax LegalLegal Leadership, contribution and expertiseLeadership, contribution and expertise GovernanceGovernance Handling ConflictHandling Conflict Accommodating changeAccommodating change