GETTING FIT Common alliance inefficiencies include: FIT n Duplication of effort across the alliance value chain n Time wasted on trivial dis- putes that do not increase alliance value n Successful alliances reduce risk and inefficiencies n Eliminate risk first then start eliminating inefficiencies n Time spent on "over-perfect- ing" alliance communications n Product or service timeline Alliance adjacencies deserve attention RISK slippage due to ineffective communication In addition to the examples above, an additional type of inefficiency-an alliance adjacency inefficiency-deserves a more in-depth look. (And for even more depth, see "Look n At what point Out Ahead: How Ignoring are you efficient Alliance Adjacencies Can Conenough? How do strain Value," Q1 2015 Strategic Alliance Magazine.) An alliance you know that? adjacency inefficiency is one that "spills" out of one alliance into other alliances or wholly owned assets within a single company. The wise alliance manager will be aware of how his or her alliance interacts directly or indirectly with other FIT (FUNCTIONAL INEFFICIENCY TERRITORY) alliances and other products or services. Alliance adjacency isIn large part, alliances are created because each partner sues are almost always value inflection points and are expects to gain something of value. That value might worthy of attention. take the form of a new way of grouping products or Adjacency can be defined as the state of being near services, a supply chain that lowers costs or offers cusor contiguous to something. In the context of a fortomers a seamless solution, access to a new technology mal partnership, alliance adjacencies represent the or talented people, or a means of reducing the risk of requirements and contingencies at the boundaries of developing an expensive product or service. With these an agreement. It is important to examine how these benefits always come expectations of what can and limitations can affect the use and potential benefits of cannot be done by each partner over the course of an a company's own products and services as well as those alliance, usually codified in a contract. These contractuit might offer as part of another alliance. ally defined limitations create alliance adjacencies. INEFFICIENCY Q4 * 2017 | STRATEGIC ALLIANCE MAGAZINE 47