Establish aims for collaboration

Formulate strategic intent

"Strategic intent is the desired future state or aspiration of an organisation". It envisions the main activities of the organisation, its intentions, and the position it wishes to attain in the industry.

What do you hope to achieve from a collaborative venture?
Use the information in this section to clarify your objectives and then agree them with other stakeholders.

Relevance and importance

If the SME does not properly formulate the strategic intent for collaboration it can lead to substantial internal disagreement and the failure of the alliance. If the ultimate objective is for business growth and the opportunities for growth are limited in the domestic market the SME may choose to pursue a collaboration approach. As SMEs do not have the resources of multinational corporations the options for growth through acquisitions, mergers, joint ventures or global partnerships may be quite limited and a collaborative effort may be more suitable.

Some of the common desired outcomes of collaboration are given below:

	To gain access to new markets, knowledge and technology (more quickly).
	To develop new segments and territories for the products or services.
	To secure access to supply or distribution channels.
	To leverage limited resources for maximum gain, through sharing of ideas, competences.
	To share costs and/or risk by pooling resources.

Overview

A clarified strategy will provide guidance and direction for managers and employees. This will in turn influence their attitudes and behaviours and their willingness to effect a successful collaboration. Effective communication of the strategy will ensure that all stakeholders see the need for the collaboration and how it fits with the overall company objectives. They are therefore more likely to be committed to ensuring a successful result.

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Recommendations and practical tips

	Seek to clearly establish aims and objectives for a strategy of international collaboration in order to increase the possibilities for a successful outcome.
	Consider who should be involved in formulating the strategy of the company and how the strategy should be effectively communicated.
	Ensure all the significant implications of the collaboration for the SME are taken into account, long-term as well as short-term.
	Consider what risks are involved and if possible calculate the risks and their implications to the SME, the employees, managers, stakeholders, the reputation and brand.
	Ensure the necessary resources are available and can be committed.
	Consider how long it will take for successful realisation of the collaboration.
	How will you know if things are going to plan? Design a method of measuring success of the collaboration.

Warnings and potential pitfalls

Beware of strategy drift! What may be suitable and appropriate at the beginning may over time become ineffective or outdated. In formulating the strategy allow for regular reviews and reappraisal of the collaboration.

Take time to understand the strategy of your collaboration partner. This will help avoid having an incompatible strategy to that of the collaboration partner.

What are the exit costs? Ensure you have some understanding of the exit costs (financial or otherwise) and the effect it will have on your business should the SME need to stop the collaboration at some future date.

Understand that individual managers and employees in your organisation and in the collaboration partner organisation may be entering the partnership for very different reasons. How does your strategy manage these differing aspirations and the potential for conflict?

Regularly communicate the status and progress of the collaboration to the SME stakeholders. This will show your continued commitment to executing the strategy successfully.

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