Insights from the allianceboard Digital Maturity Index™ Q4, 2023
This article highlights 3 key results from the Q4 2023 data cut of allianceboard’s Alliance Management Digital Maturity Index™:
- Only 32% of organizations are satisfied with their digital tools for alliance management
- Executive awareness of alliances has increased to 55%
- Only 33% believe that new alliance team members are effective quickly because all relevant information for each alliance they inherit is at their fingertips
1. Only 32% of organizations are satisfied with their digital tools for alliance management
Digitization is a key business imperative, yet alliance management continues to lag behind other business functions. Only 32% of index participants are satisfied with their digital tools for alliance management, and over one-third are not.
This statistic highlights a significant gap in the effectiveness of digital tools, illustrating that approximately two-thirds of organizations are unsatisfied or unaware, potentially hindering their alliance-related capabilities and overall performance.
Figure 1: “Our organization has the technology in place to manage our alliances efficiently.”
2. Executive awareness of alliances has increased to 55%
Alliance Management has the potential to serve as a strategic catalyst within an organization, facilitating strategic agility, operational excellence, and other C-Suite priorities. Yet only 55% of index participants indicate that their organization's executives clearly understand the value each alliance provides to our organization.
Although there has been growth in the past 12 months, this statistic still highlights a gap in executive comprehension of alliance value.
A significant portion of participants feel their organization's leaders may not fully appreciate the contributions and benefits brought by their alliances.
This lack of clarity could impact strategic decision-making.
Figure 2: “Our executives clearly understand the value each alliance provides to our organization.”
3. Only 33% believe that new alliance team members are effective quickly
The fact that only 33% of respondents believe new alliance team members become effective rapidly highlights a critical issue in the onboarding process.
Ineffective onboarding can lead to prolonged adaptation periods for new team members, affecting alliance performance and objectives.
A more efficient and targeted onboarding process is necessary to ensure that team members can contribute effectively and efficiently to alliance success from the start, reducing the time it takes for them to become valuable assets to the partnership.
High turnover and administrative burdens create added risks and result in suboptimal resource utilization within alliance management. Reducing these factors is essential for effective and efficient alliance operations.
Figure 3: New alliance team members are effective quickly because all relevant information for each alliance they inherit is at their fingertips.
Key recommendations for alliance managers
- Alliance managers should prioritize investing and upgrading digital infrastructure, implementing user-friendly and integrated platforms, to bridge this digital gap and foster improved alliance performance and efficiency.
- Alliance managers can improve executive awareness (currently at 55%) by providing data-driven insights, implementing regular reporting, conducting educational workshops, involving executives in strategy sessions, showcasing case studies, ensuring transparency, and aligning alliances with organizational goals. Bridging this comprehension gap empowers informed strategic decision-making.
- Only 33% believe new alliance team members become effective rapidly. Inefficient onboarding prolongs adaptation, impacting alliance objectives. Streamlined onboarding will therefore reduce time to valuable contributions, minimize risk, and optimize resource use.
Alliance teams can use technology to support the provision of clear role definitions, provide a single data hub, and offer access to insights without adding a resource drain on other team members.
About the allianceboard Alliance Management Digital Maturity Index™
In the summer of 2021, we created the allianceboard Alliance Management Digital Maturity Index™ to analyze how partnering capacity and alliance management digital infrastructure affect four key alliance management outcomes.
Our index helps us understand how partnering capacity and digital alliance management infrastructure drive four key alliance management outcomes:
- Strategic agility
- Value realization
- Risk management
- Operational efficiency
Would you like to participate? Follow this link;
https://s.surveylegend.com/-NhkMFyduZgLVFUGqoeU?allianceboard_Digital_Maturity_Index
Book your allianceboard demo at www.allianceboard.com/demo