Alliances articles - Hoffmann: How to manage a portfolio of Alliances

7 important questions on Alliances articles - Hoffmann: How to manage a portfolio of Alliances

Describe the core of the resource of Hoffmann?

Hoffmann identified 4 tasks of portfolio management: strategy, monitoring, coordination and the establishment of an alliance management system.

Which 3 tasks are important for managing a portfolio of many different alliances? (Hoffmann)

1 Setting and monitoring rules of cooperation
2 Developing and competencies of the partners
3 Simultaneously structuring the network and aligning the strategies of the network members.

Establishing a company's dedicated alliance function contributes of making alliance management more professional and improve alliance management capabilities. What are, according to Hoffmann, the tasks of the center of competence of alliance management?

To formalize core alliance management processes, to standardize alliance management tools critical for success, and to create an infrastructure (e.g. IT platforms) so that experiences in managing alliances can be collected, shared and diffused systematically throughout the organization. A center of competence can improve internal coordination and resource support of alliances as well as monitor and evaluate alliance performance.
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In addition to the strategic alignment of individual alliances, Hoffmann added 2 additional levels of the strategic design of alliance portfolios. Which 2?

1 The strategic alignment of all alliances of a business unit (division) in terms of the business strategy = alliance strategy at business level
2 The strategic alignment of all the company's alliances in terms of the corporate strategy and values = alliance policy at the corporate level.

Interdependencies amnong the individual interorganizational relationships of a company create a need to coordinate these dyads (tweetallen?) and alliances. The need for overall coordination of alliance portfolios is greater.... (Hoffmann)

1 The greater the number of alliances in one business and the company as a whole
2 The greater the average number of partners per alliance
3 The greater the redundancy (contextual overlap) of the alliances
>>The purpose of portfolio coordination is to use synergies and avoid conflicts among dyads or alliances at all three levels.

What is the goal of portfolio management (Hoffmann)?

Portfolio management has to ensure that the alliance portfolio stays aligned with the company's strategy and contributes to its implementation. In a multi-business company, the main focus is on monitoring the alliance portfolio at the business level.

How can (multi-)alliance management practices become professionalized and standardized? (Hoffmann)

In large companies: specialized positions need to be created and, at least temporarily, important alliance management tasks need to be centralized. When companies are highly diversified: set up centers of competence for alliance management at the business level. Less diversified companies place their alliance function either at the corporate or both at corporate and business level.

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