Having led the establishment of Alliance Management (AM) functions for several small-to-mid-size biotech companies, I’ve learned firsthand the complexities and rewards of building this critical capability from the ground up. This article provides insights into two key areas: when to introduce an Alliance Management function and how to build it effectively.
When to Introduce an Alliance Management Function?
The best time to introduce an Alliance Management function is before entering into a strategic collaboration. Ideally, this happens before executing a contract that requires governance and a dedicated Alliance Manager. If your corporate strategy anticipates additional partnerships, having an experienced Alliance Manager on board early becomes even more critical.
The First Challenge: Early Engagement
Alliance Managers add significant value during contract negotiation and, even more importantly, in the critical early months after a deal is signed. These initial months set the tone for the partnership, establish a foundation of trust, and align operational teams with contractual obligations.
This stage requires finesse, as it involves harmonizing both partners’ organizational cultures and ensuring that the operational team has a clear understanding of shared goals. Launch planning—a fundamental element in AM best practices—must be managed professionally to position the partnership for long-term success.
Building a Strong Alliance Culture
For organizations without an established alliance culture, the journey begins with creating processes, developing communication tools, and fostering internal advocacy. Internal advocates across cross-functional teams become invaluable allies, helping to amplify the partnership’s importance within the organization.
Proactive issue management and fostering open dialogue prevent unnecessary escalations, keeping leadership focused on strategic decisions rather than being pulled into tactical challenges. By allowing operational teams to handle day-to-day management, leadership can adopt a proactive and strategic approach to collaborations.
Supporting Early-Stage Collaborations
As collaboration portfolios grow, integrating an Alliance Operation Manager can make a significant difference. This role is especially beneficial in managing early-stage partnerships, where program management support ensures:
- Clear and structured communication.
- Effective use of tools familiar to the biotech partner.
- Seamless data-sharing that informs strategic decisions and integration efforts.
This role bridges gaps between early-stage partners and established biotech companies, improving internal engagement and facilitating smoother transitions during in-licensing or other pivotal collaboration phases.
How to Build an Alliance Management Function
Every Alliance Management function is unique, shaped by factors such as collaboration type, company motivation (financial, portfolio, optics, etc.), corporate culture, and strategic goals.
Align with Company Culture
Cultural transformation is a long-term endeavor. Through education, process development, and advocacy, Alliance Management can shift its perception from a transactional oversight role to a strategic imperative central to organizational success.
Tailored dashboards are essential tools for keeping leadership informed. These dashboards should reflect the organization’s culture and priorities, with concise, in-person presentations ensuring alignment across all levels.
For instance, Dashboards typically include:
- Contract History: Key milestones and significant amendments.
- Recent Updates: Highlights of current activities and progress.
- Risks, Opportunities, and Mitigation Actions: Overview of challenges and strategies to address them.
- Next Steps and Milestones: Planned interactions, decisions, and critical deadlines.
- Financials: Budget updates and resource allocation.
- Overall Collaboration Status: A high-level summary of the partnership’s health and trajectory
Organize and Tier Alliances
Resource allocation and strategic importance should guide the organization of alliances. Tiering systems can classify partnerships into categories such as:
- Strategic (co-commercialization, development, or commercial alliances).
- Development/Commercialization/Technology.
- Early Discovery/Academic collaborations.
Each type of partnership presents unique obligations and drivers that need close monitoring. For example, neglecting traction with an academic partner could result in lost opportunities during critical phases, potentially pushing them toward competitors.
Adapt to Your Organization’s DNA
Flexibility is key. Alliance Management functions must adapt to the company’s DNA by tailoring processes, tools, and strategies to fit the organization’s goals, culture, and collaborative needs.
Engage Stakeholders and Address the “Alliance Tax”
An effective Alliance Management function involves not only the Alliance Managers themselves but also the broader network of stakeholders across the organization.
One of the lesser-discussed challenges is the “alliance tax,” the resources required to support non-core programs. Alliance Managers must advocate for operational teams and non-core functions, ensuring their contributions are recognized and rewarded. Leadership plays a vital role in addressing this challenge, as their support is crucial to fostering long-term engagement and commitment to external collaborations.
Forward-Looking Insights for Biotech Organizations
The value of Alliance Management extends far beyond day-to-day collaboration oversight. It is a strategic asset that can shape how an organization is perceived in the industry. A well-functioning Alliance Management team signals that your organization is a “good partner,” known for transparency, reliability, and mutual respect. This reputation can be a game-changer, attracting high-quality partner candidates and enhancing your business development efforts.
For biotech organizations aiming to strengthen their alliance capabilities, the path forward involves viewing Alliance Management as a bridge between operational excellence and corporate strategy. By investing in this function, companies position themselves not only to manage alliances effectively but also to amplify their industry presence and secure partnerships that drive innovation and growth.
This article was written by Samuel Gosselin, Head of Alliance Management, Alliance integration and transformation leader.
About the alliance leadership spotlight series
The alliance leadership spotlight series is a joint initiative of The Association of Strategic Alliance Professionals (ASAP) and allianceboard. It aims to showcase Alliance Management professionals taking the lead in addressing challenges and driving alliance success - to share experiences in the alliance management community.
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