Strategic Alliance Magazine by ASAP

“It is a pleasure to work with The Rhythm of Business! They have been our partners in establishing alliance management within Astellas, growing the collaborative ability of our organization, and supporting us in expanding our influence. They are always there for us, no matter the challenge.” Mary Jo Struttmann, CA-AM Sr. Director, Alliance Management, Astellas US

The Future of Alliance Management It’s a Complex World. Let The Rhythm of Business Help You Navigate It. Increasingly, alliance managers are being asked to do more with less. Larger alliance portfolios. More complex collaborations. Fewer organizational resources. Don’t Go It Alone. When the challenges of complexity and scale threaten the success of alliance portfolios, alliance leaders turn to The Rhythm of Business for clarity, deep insights, and step-by-step help. At The Rhythm of Business, we serve as thinking partners and guides, providing cost-effective strategies, frameworks, and tools that: + Increase alliance performance and effectiveness + Drive financial results and other measurable value + Reduce complexity (and risk) in your alliance portfolio Take Your Collaborative Capabilities to the Next Level. The Rhythm of Business is your “center of alliance excellence,” and a resource for comprehensive support, such as: + Partnering program design + Alliance organization, staffing, and process design + Guidebooks, toolkits, and alliance metrics + Help with alliance start-ups, strategic planning, ongoing assessments, and interventions + Customized, targeted education for alliance managers, teams, and executives + Alliance portfolio analysis, mapping, and planning + Internal marketing and communications programs Partner with the Collaborative Business Specialists. Our consulting, education, and research services focus on driving innovation and growth through alliances and other collaborative relationships. We’re passionate about advancing the discipline and profession of alliance management across sectors, throughout industries, and around the world. Your Guide to the Future of Alliance Management Contact The Rhythm of Business today at +1 617 965 4777 or info@rhythmofbusiness.com to begin, or continue, your journey down the path toward successful alliance management.

Don’t Follow. Join the Leaders. Don’t miss your chance to engage in a discussion of the findings from 2012’s The Practice of Alliance Management in the Biopharma ceutical Industry study – ASAP BioPharma Conference Session 501, Friday, November 16 at 1:25p.m. Call +1.617.965.4777 and visit our website at rhythmofbusiness.com to access our extensive library of publications, presentations, tools, and other resources.

Don’t Just State the Obvious

Find the deeper insights all alliance managers need to succeed – in ASAP’s Fourth State of Alliance Management Study It’s clear that the alliance management profession has come a long way since the first ASAP State of Alliance Management Study in 2001. But the what, how, and why of our progress as a profession – and especially where we’re headed and what we need to do to improve – are not so obvious. Deeper answers require deeper research and analysis. With three more editions of the study conducted over the course of a decade, our fourth version, The State of Alliance Management: Past, Present, Future, provides this unparalleled and unprecedented depth. Contact ASAP today to order copies for you and your colleagues. Inside this crucial survey of 272 individuals representing 230 companies across the world, you will find powerful insights about: n Alliance success rates – and factors that influence outcomes n The evolution of alliance professionals and roles n The eﬀectiveness of proliferating alliance tools n Growing focus on the importance of alliance culture

Order your copies today!

The State of Alliance Management: Past, Present, Future is $59.99 for ASAP Members and $99.99 for nonmembers. Contact Pam Goodell at +1 781-562-1630 ext. 202 or pgoodell@strategic-alliances.org to get your copy today! www.rhythmofbusiness.com

960 Turnpike St, Canton MA 02021 USA Tel: +1- 781-562-1630 strategic-alliances.org info@strategic-alliances.org

Early Bird in the Hand

Register by December 17 to Secure Your Discount for The 2013 ASAP Global Alliance Summit Today! No other event delivers as much valuable information, connects you to more of the profession’s thought leaders, or does more to advance your career than the ASAP Global Alliance Summit.

✓ More than 40 Sessions, including keynotes, panels, and breakouts ✓ Representation from a wide cross-section of industries ✓ Hands-on training in how to use the discipline’s most modern tools, processes, and methodologies ✓ Invaluable lessons that apply to all phases of the alliance life cycle

To register visit strategic-alliances.org/summit – get your discount today!

Call +1-978-544-1866 Become a Global Alliance Summit Sponsor Today!

To learn about or purchase sponsorship programs, speak to any ASAP staff member at +1-781-562-1630 or contact: John DeWitt, Publisher, ASAP Media Tel: +1-978-544-1866 jdewitt@asapmedia.org Michele Shannon, Senior Meeting & Event Manager +1-781-562-1630 ext. 204 mshannon@strategic-alliances.org

up front

Spanning Boundaries

What’s the Biggest Bridge an Alliance Manager Can Build? By Art Canter

BRIDGES EMBODy ThE ESSENCE Of AllIANCE MANAGEMENT—and of ASAP as your professional association. Our daily work spans boundaries throughout the world of business—and beyond. As a reader of this column, you may have crossed a literal bridge over the Charles River to attend the 2012 ASAP BioPharma Conference in Cambridge, Mass. figuratively speaking, you build bridges every day linking diverse viewpoints to align stakeholders and manage partnerships within (and increasingly, across) pharmaceutical, IT, financial services, manufacturing, consulting, retail, or consumer packaged goods industries. your work might even connect public and private sectors, given the increasing variety of strategic collaborations represented by our growing membership.

In a Q&A that appeared in our ASAP eNews monthly newsletter this past summer, Snehal Desai, CA-AM, global marketing director for the Dow Chemical Company and an ASAP board member, put it this way: “There’s a tremendous amount that people in chemicals, finance, insurance, or other industries can learn [from IT and biopharma].” he added, “you get the most value when you see what other industries are doing.”

Of course, the BioPharma Conference and this issue’s BioPharma Special focus section address issues and cite examples specific to this industry, such as the prescription drug “patent cliff.” But more often than not, lessons learned and insights revealed apply to almost everybody in our profession, regardless of industry. Some articles in this issue delve deeply into the dynamics of the biopharmaceutical industry, yet alliance professionals in all markets are looking to lead alliance strategy discussions with the C-suite. Companies inside and outside of biopharma are turning to external parties for breakthrough innovations. They’re integrating academic and public sector perspectives into their operations via public-private partnerships.

Can the knowledge dispensed by seasoned biopharma alliance management veterans be applied directly to other markets (and other types of collaboration) in a 1:1 fashion? Sometimes yes, sometimes no. But it’s a solid bet that—by bridging alliance management functions in numerous industries—ASAP and Strategic Alliance Magazine foster a cross-fertilization of ideas and insights that can help other alliance practitioners solve their unique challenges.

Quarter 4, 2012

Fostering Cross-Fertilization

We even can bring our bridge-building skills and tools to new realms where alliance management core competencies are required, even if the industry players are not yet familiar with “alliance management” as a discipline. In this issue, “Alliances That Could Save the World” kicks

off an important new series of articles exploring public-private partnerships that address complex problems in the areas of health, energy, the environment, economic development, poverty and hunger, education, and peace. As our editors write, “It’s our view that these big, thorny global issues may best be addressed and solved by cross-sector, often large-scale collaborations involving government, business, academia, not-for-profit organizations, and affected communities and individuals.” As we engage ever more closely with our organizations’ leadership agendas, sooner rather than later ASAP members are likely to be called upon to “tackle humanity’s thorniest challenges.” yes, these could be some really big bridges. But daunting challenges are nothing new to the alliance profession. let’s get building—together! Art Canter, president and CEO of ASAP, is executive publisher of Strategic Alliance Magazine. 5

Quarter 4, 2012

The magazine of the Association of Strategic Alliance Professionals AN ASAP MEDIA PuBLICATION www.ASAPmedia.org www.strategic-alliances.org EDITORIAL TEAM Art Canter, Executive Publisher 781-562-1630 ext. 201 acanter@strategic-alliances.org John W. DeWitt, Publisher 978-544-1866 jdewitt@ASAPmedia.org Jon Lavietes, Editorial Director 415-572-4408 jlavietes@ASAPmedia.org Michael Burke, Editor-in-Chief 413-345-1624 mburke@ASAPmedia.org Greg Caulton, Creative Director 413-461-7096 gcaulton@ASAPmedia.org Matthew Wimmer, Design and Online Media Manager 774-316-0916 mwimmer@ASAPmedia.org Michelle Duga, Sponsorship Coordinator 978-544-1866 mduga@ASAPmedia.org Emily Bayard, Image Researcher 413-461-7096 emily@gregcaulton.com Ben Olson, Graphic Designer 585-245-4796 1benolson@gmail.com ASAP STAFF Art Canter, President and CEO 781-562-1630 ext. 201 acanter@strategic-alliances.org Pam Goodell, CA-AM, Vice President of Operations 781-562-1630 ext. 202 pgoodell@strategic-alliances.org Lori Gold, Senior Manager of Membership Services 781-562-1630 ext. 203 lgold@strategic-alliances.org Michele Shannon, CA-AM, CMP Senior Meeting & Event Manager 781-562-1630 ext. 204 mshannon@strategic-alliances.org Kimberly T. Miller, Marketing Manager 781-562-1630 ext. 208 kmiller@strategic-alliances.org Brendan Ward, Administrative Support 781-562-1630 ext. 200 bward@strategic-alliances.org Diane Lemkin, Accounting Manager 781-562-1630 ext. 206 dianel@strategic-alliances.org Jennifer Silver, Certiﬁcation Coordinator 781-562-1630 ext. 205 jsilver@strategic-alliances.org © Copyright 2012 Association of Strategic Alliance Professionals. All Rights Reserved.

in this issue

n COvER STORY SPECIAL FOCuS: BIOPHARMA

A Place in the Conversation

As the C-Suite Increasingly Sees Alliances as Essential to Business Success, Alliance Management Has a Long-Awaited Opportunity to Make Itself Indispensable. Three Alliance Leaders Give Their Perspectives on Where We’ve Been, Where We Are Now, and the Exciting Prospects for the Profession’s Future | By ASAP Media Staﬀ

As senior leaders increasingly recognize the value of collaboration and partnerships, alliance management has a unique and long-sought-after opportunity: to shape the discipline’s practices to meet the needs of senior leaders and finally earn a seat in the high-level strategy discussion—and increased respect and resources for the profession.

n GOvERNANCE DESIGN

Good to Go

How Setting the Right Tone, Goals, and Expectations Gets a Great Alliance Going By Steven E. Twait, CSAP, and David Thompson, CA-AM

The second in a four-part series on alliance governance, this article provides an overview of the most important elements to consider before and during alliance start-up. By deliberately setting the right tone and establishing a coherent operational framework, alliance professionals can ensure that the partnership gets off to an excellent start, which is critical to its long-term success. Sponsored by Eli Lilly & Co.

n ALLIANCE HEALTH CHECK

Taking the Pulse of Your Alliance

Alliance Health Checks Help Both Partners See Where the Alliance Is Going Right, Where It’s Going Wrong—and Where They Disagree | By Michael Burke

health checks may measure the so-called “softer” side of an alliance—things like relationship, corporate culture, and operational and strategic fit—but these areas are just as critical as the “harder” aspects such as financial results. They show areas where the alliance is achieving its objectives, where it isn’t, and where the partners don’t see eye to eye. 6

n CEO FORuM

Q&A with Süreyya Ciliv, CEO, Turkcell

Turkcell is Turkey’s largest telecommunications and technology company, and one of the biggest telcos in Europe. Its Alliance Excellence Award–winning developer community consists of more than 200 partner companies. Turkcell’s CEO Süreyya Ciliv discusses how the company’s alliances help it to stay ahead of the fast-paced technology industry, how it instills transparency across its partner portfolio, the areas in which the company is looking to innovate next, and collaboration in the world of open source. Sponsored by Quintiles.

n PuBLIC-PRIvATE PARTNERSHIPS

Alliances That Could Save the World

Public-Private Partnerships Are Tackling Big Issues Around the Globe with Some Success. Is There a Role for Alliance Management? | By John DeWitt and Michael Burke

The future of business—and the world—may increasingly lie in creative, multistakeholder public-private partnerships involving business, government, academia, and nongovernmental organizations. These entities are working on everything from economic development to hunger, and from health issues to education and foreign investment. Since these are in effect complex alliances, they could benefit from the insights and experience of the discipline of alliance management.

n SPECIAL FOCuS: BIOPHARMA

Open Innovation Alliances

Novel Alliance Models Accelerate the Identification and Advancement of Breakthrough Therapies | By Chris Wilks and Christian Prothmann, CA-AM

Biopharma companies seeking new ways to innovate are exploring new strategies for transforming their internal research processes and developing novel alliance models. These companies have not stopped pursuing more traditional partnership models; rather, they have recognized open innovation as an additional means of developing new products, according to our guest authors from Astrazeneca.

Regular Features: 5 n uP FRONT | By Art Canter What’s the Biggest Bridge an Alliance Manager Can Build? 11 n COLLABORATIvE BuZZ Alliance News Briefs | People in the News ASAP & ASAP Partner Calendar of Events | ASAP Chapter Updates Quarter 4, 2012

15 n ASAP MEMBER SPOTLIGHT Expanding R&D Alliance Horizons CRO Covance Walks Partners Through the Nuances of Service-Based Alliances 57 n SOLuTIONS MARKETPLACE Products and services for and from strategic alliance professionals.

Quarter 4, 2012

The magazine of the Association of Strategic Alliance Professionals ASAP Executive COMMITTEE Russ Buchanan, CSAP ASAP Chairman of the Board Vice President, Worldwide Alliances, Xerox Corp.

in this issue 46

n SPECIAL FOCUS: BIOPHARMA

When the Prof Met Big Pharma

Pharma-University Alliances Are Proving to Be More Than Simply “Academic” By Jon Lavietes

Jack Pearson, CSAP ASAP Vice Chairman Managing Director & Chief Alliance Officer, Alliance Development International, LLC Harry Atkins, CSAP ASAP Treasurer Senior Director, Corporate Development, Dr. Reddy’s Laboratories, Inc. Brian Handley, CA-AM ASAP Secretary Business Development, Emerson Corp. Christine Carberry, CSAP Chairman, ASAP Knowledge Base & Research Committee Vice President, Program & Alliance Management, EnVivo Pharmaceuticals Snehal Desai, CA-AM Chairman, ASAP Marketing Committee Global Marketing Director, The Dow Chemical Company Grif Morrel, CSAP Chairman, ASAP Chapter Presidents’ Council Senior Manager, Sales Business Development and Operations, Cisco Systems, Inc. Alistair Pim, CSAP Chairman, ASAP Professional Development Committee Vice President, Global Strategic Alliances, Schneider Electric Jan Twombly, CSAP Chairman, ASAP Program Committee President, The Rhythm of Business, Inc.

Strategic Alliance Magazine is published quarterly. Publisher is The Association of Strategic Alliance Professionals, 960 Turnpike Street, Canton, MA 02021, +1-781-562-1630. Subscriptions are $99 for one year, $189 for two years. Canadian subscriptions are $149 per year. All other international subscriptions are $199 (using air mail). Subscription inquiries: +1 781-562-1630. Periodicals postage is paid in Chicopee, MA, and additional mailing offices. Postmaster: Send address changes to STRATEGIC ALLIANCE MAGAZINE, 960 Turnpike Street, Canton, MA 02021. Copyright 2012, The Association of Strategic Alliance Professionals. No part of this publication may be reproduced, stored in any retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. For reprints, please contact The Association of Strategic Alliance Professionals, +1-781-562-1630. 8

Alliances between pharmaceutical companies and universities and academic research institutions have proliferated over the past few years. Utilized largely in the earlier phases of the drug development cycle, university research associates are providing their corporate counterparts with a deeper scientific body of knowledge, a longer-term view, and a greater proximity to patients.

n THE CLOSE

People and Tools

How Can We Make Wise Choices About Technology for Collaboration and Alliance Management? A Sneak Preview of Our Forthcoming Special Report | By John DeWitt

By focusing on the way people actually work, the latest generation of collaborative technologies offers dazzling capabilities. As with all technologies, however, you must carefully evaluate the specific fit with your organization and people. Strategic Alliance Magazine

Make Your Alliances Work

Let Vantage Partners Help Your Company Negotiate and Manage Critical Relationships Conventional advice about alliances has not reduced their dismal failure rate. By working with Vantage, companies maximize the performance of individual alliances, put under-performing alliances back on track, and ensure coordination and optimization of their entire alliance portfolio. Success requires shifting your focus to a complementary set of principles. To help companies address and find solutions to their specific alliance challenges, Vantage Partners offers a broad range of services: Develop Your Alliance Strategy ▶ Define (or refine) an alliance strategy that meets overall corporate strategy and business unit objectives Benchmark Your Alliance Management Capability ▶ Benchmark your alliance management capabilities relative to competitors Design and Implement Your Alliance Management Program ▶ Create an alliance program blueprint and implement a framework for improved alliance success rates and better business results Launch Your New Alliances ▶ We facilitate a carefully designed set of activities between partners Remediate and Relaunch Relationships ▶ We conduct comprehensive assessments of alliance performance and help revitalize faltering partnerships

Alliance Management Training Solutions ▶ Designing and Implementing Comprehensive Alliance Training Curriculum ▶ Designing and Implementing Alliance-Specific Team Training ▶ Training Alliance Management Groups

About Vantage Partners Vantage Partners, a spin-off of the Harvard Negotiation Project, is a management consulting firm that specializes in helping companies achieve breakthrough business results by transforming the way they negotiate, and manage relationships with, key business partners. To learn more about Vantage Partners, visit www.vantagepartners.com, call +1 617 354 6090, or e-mail info@vantagepartners.com.

Helping Companies Negotiate and Manage Critical Relationships

Check Out Our New Alliance Compendium Receive “Making Alliances Work,” our new collection of complimentary Vantage Partners Alliance Management publications—including some of Vantage’s most requested HBR articles, white papers and research findings on the topics of alliances, negotiation, relationship management, and change management. To request your copy of “Making Alliances Work,” visit www.vantagepartners.com/ASAPAllianceCompendium.aspx

G... ook nt: N I NC andb eme e y! U O H g d a ANNASAP Manar’s Gui y tod e Thelliancetition r cop c of AA Pra er you ord e r P

Alliance Management?

We wrote the book on Alliance Management! The ASAP Handbook of Alliance Management: A Practitioner’s Guide, 3rd edition, is the only compendium of alliance management practices, principles, and current professional standards that puts all the information you need in one unique, indispensable resource. This new publication provides: n An unequaled body of knowledge for alliance professionals at every level n A substantive update and revision of previous editions n All-new material, including a new section on emerging topics in alliance management For your career, your alliances, and your company’s alliance management practice, you can’t afford to be without The ASAP Handbook of Alliance Management: A Practitioner’s Guide.

Preorder your copy today! Available at $149.99 for ASAP members and $299.99 for nonmembers. For more information or to order, go to strategic-alliances.org/handbook. 10

960 Turnpike St, Canton MA 02021 USA Tel: +1-781-562-1630 strategic-alliances.org info@strategic-alliances.org

Strategic Alliance Magazine

Collaborative Buzz TransCelerate: A New Kind—and Scale— of Biopharma Collaboration By Michael Burke

TransCelerate BioPharma, a new nonprofit organization focused on accelerating the development of new medicines, was formally incorporated in August and announced in September. TransCelerate’s 10 founding members are Abbott, AstraZeneca, Boehringer Ingelheim, Bristol-Myers Squibb, Eli Lilly and Company, GlaxoSmithKline, Johnson & Johnson, Pfizer, Roche-Genentech, and Sanofi. (All these companies either are or include ASAP members.) The 10 TransCelerate founding companies have pooled financial, personnel, and other resources to solve biopharmaindustry challenges in a collaborative environment. Their goal is “to work together across the global research and development community and share research and solutions that will simplify and accelerate the delivery of exciting new medicines for patients,” according to TransCelerate interim CEO Garry Neil, M.D., partner at Apple Tree Partners and formerly corporate vice president of science and technology at Johnson & Johnson. “We aim to reduce bottlenecks in R&D and increase efficiency. This is all about accelerating transformative innovation. We have an obligation to stakeholders to find…new and transformative ways of doing things. We are really working collectively in a way we haven’t done before,” said Neil. TransCelerate’s initial area of focus will be clinical study execution. Projects selected by the group for funding and development include: development of a shared user interface for investigator site portals, mutual recognition of study site qualification and training, development of risk-based site monitoring approach and standards, development of clinical data standards, Quarter 4, 2012

and establishment of a comparator drug supply model. The board of directors for the new group includes R&D heads of the 10 member companies. Membership in TransCelerate is open to all pharmaceutical and biotechnology companies that can contribute to and benefit from shared solutions. The required contributions are on a sliding scale to accommodate both small and large companies. TransCelerate’s CEO will be a full-time employee of the new entity, and other full-time staff will be hired as needed. The organization’s headquarters will be located in Philadelphia.

ASAP News VMWare Joins ASAP as Newest Global Member

ASAP is pleased to announce that VMware, a global leader in virtualization and cloud infrastructure, has become a Global Member of the association. VMware, founded in 1998, leverages more than 50,000 technology, reseller, and service provider partners to achieve core strategic objectives such as revenue growth, product roadmap development, and increased efficiency. Alliances have been embedded into IT business models and culture for many

years, and with cloud technologies becoming increasingly woven into the industry’s fabric, alliances are more critical than ever. VMware will be able to network with several leading Individual and Corporate ASAP members from the tech industry to exchange knowledge about how to continually advance their alliances to meet the ever-changing dynamics of IT. Moreover, it will be able to equip personnel with alliance management responsibilities with the skills, tools, processes, and methodologies to expertly plan and execute strategic partnerships. “Cloud computing represents a significant shift in how customers consume and manage IT resources, and through our alliances partners, we have been able to deliver customers tools to enable them to transform their IT infrastructure,” said Toni Adams, vice president of global channel and alliance marketing at VMware. “Alliances have always been core to our success, and we aim to utilize ASAP to maintain the very high level of strategic partnership expertise that has helped make us a leader in the tech industry today.” As a Global Member, VMware will have the opportunity to serve in leadership positions within ASAP to help evolve the profession’s methods and thinking, 11

Collaborative Buzz and lend its considerable knowledge to the association’s membership. The company will also be eligible to allocate a percentage of the total individual memberships that are offered with its Global Membership to employees from its partner organizations. By allowing its partners to experience ASAP benefits, VMware is providing its allies the tools, methodologies, and resources they need to optimize their alliances and hopefully serve as better partners. Moreover, VMware joins a select group of fellow Global Members, which includes several other technology pioneers that, like VMware, have utilized alliance management principles effectively and innovatively to become leaders in the corporate world. “ASAP has always led the charge in gathering the best-of-the-best in alliance management together to advance the discipline,” said Art Canter, president and CEO of ASAP. “We are thrilled to welcome VMware, another alliance management leader and ‘partner of choice’ in IT, to our community.”

ASAP has always led the charge in gathering the best-of-the-best in alliance management together to advance the discipline Do It—Do It Now! Early Registration for 2013 ASAP Global Alliance Summit Now Open

Registration for the 2013 ASAP Global Alliance Summit is now open. Sign up before December 17 to secure an early bird discount to what is by far the world’s largest annual gathering of the strategic alliance profession’s leading individuals and organizations. The ASAP Global Alliance Summit, which in 2013 will be held at the Gaylord Palms in Orlando, Fla., March 3–7, has 12

shattered its own attendance records each year for several years in a row. Alliance professionals of all levels won’t find another event all year that matches the Summit’s quality of knowledge, professional development, and networking opportunities. Register by December 17 to lock in great savings on Summit attendance. For more information and to register, visit www. strategic-alliances.org/summit.

ASAP and ASAP Partner Events Negotiation Skills Workshop: Effective Negotiation

November 4, 2012 Campbell, CA, USA (to register visit www.strategic-alliances.org)

The ASAP Learning Series: The Keys to Partnership Success

November 14, 2012 Reston, VA, USA (to register visit www.strategic-alliances.org)

A Round Table on Alliance Best Practices November 15, 2012 Plano, TX, USA (to register visit www.learn.unh.edu/ASAP)

2012 ASAP BioPharma Conference

November 15–16, 2012 The Charles Hotel, Cambridge, MA, USA (to register visit strategic-alliances.org)

Phoenix Advanced Alliance Skills Mastery & CSAP Preparatory Workshop

November 23, 2012 London, UK (for information, contact John Parker at jpassociates@blueyonder. co.uk)

Strategic Alliance Management: Accelerating the Value of Collaboration

December 6, 2012 Portsmouth, N.H., USA (to register visit www.learn.unh.edu/ASAP)

2013 ASAP Global Alliance Summit

March 3–7, 2013 Gaylord Palms Hotel, Orlando, Fla., USA (for more information, go to www.strategic-alliances.org/summit)

Alliance News New Executive Search Firm to Focus on Alliances

ASAP vice chairman Jack Pearson, CSAP, announced in September the launch of Alliance Development International (ADI), LLC, a global executive search company dedicated to the recruitment of experienced strategic alliance professionals. Based in Cary, N.C., with associates on four continents, ADI offers candidate profile development, recruiting, screening, and placement. Pearson will serve as ADI’s managing director. ADI will seek to leverage a global team of associates to identify and place midand senior-level alliance executives in a wide range of industries. All ADI associates are experienced alliance professionals who continue to be actively engaged within their own profession. “This nontraditional approach to executive search gives our associates a much stronger familiarity with changing business models, new management concepts, and emerging government conditions that today’s executives need to be aware of,” said Pearson. “It also gives them updated access to a network of highly skilled professionals who can support job search activities.”

Servier and MacroGenics Throw DARTs at Cancer

One of ASAP’s newest Corporate Members, Servier, France’s largest privately held pharmaceutical company, is expanding its partnership with MacroGenics, which began late last year to develop three cancer remedy–related drug candidates based on the latter’s Dual-Affinity Re-Targeting (DART) technology. According to a joint press Strategic Alliance Magazine

release, “DART technology is a proprietary, bi-specific antibody platform in which a single recombinant molecule is able to target two different antigens. These DART proteins can be used to redirect the body’s cell-destroying, immune effector cells against tumor cells.” An interesting part of this agreement is that MacroGenics retains rights in both the clinical and commercial stages for some of the largest individual markets— United States, Canada, Mexico, Japan, Korea, and India—while Servier takes the rest of the world, which still leaves the company with some major commercial areas, including its home turf in Europe and the rest of Asia—including the prized emerging market of China.

Dell Partners with Ramco Systems for ERP on Cloud

Dell has announced a new strategic alliance with Ramco Systems to deliver Ramco’s ERP (enterprise resource planning)-as-a-service on Cloud to help midmarket businesses execute cost and operational efficiencies and accelerate revenue growth, according to the Web site Equity Bulls. The new offering strengthens Dell’s growing portfolio of Software-as-a-Service (Saas) solutions that help organizations manage and grow their business. (Dell is an ASAP Global Member.) Chennai, India–based Ramco’s ERP on Cloud supports businesses with wide functionalities across various industry segments, including production planning, asset management, and analytics, along with HR, supply chain management (SCM), customer relationship management (CRM), and financial management. The solution is designed to ensure quick adoption and time-to-value.

PPD Not Allergic to Alliances Pharmaceutical Product Development, LLC (PPD), and the Global Allergy and Asthma European Network e.V. (GA2LEN) have announced a strategic alliance in which GA2LEN will provide Quarter 4, 2012

PPD access to the network’s allergy and asthma experts and to more than 100 allergy and asthma sites in Europe. (PPD is an ASAP Corporate Member.) In return, the alliance will enable GA2LEN to increase the amount of research it conducts in allergic diseases, as well as provide the network with earlier access to new medical therapies to help accelerate their development. The alliance enhances GA2LEN’s role in providing health care treatment options for people affected by allergic diseases. “This agreement supports our strategy to establish collaborations across a wide range of therapeutic areas,” said Paul Colvin, executive vice president of global clinical development for PPD. “The large size of this network, coupled with its extensive scientific expertise, strengthens our capabilities as a full development respiratory partner by increasing our ability to recruit sites and patients into allergy and asthma trials.”

EPA in Alliance for “Green Sports” Venues

The U.S. Environmental Protection Agency (EPA) signed an agreement in September with the Green Sports Alliance to work together to address environmental challenges faced by sports venues, organizations, and teams. EPA deputy administrator Bob Perciasepe joined Green Sports Alliance executive director Martin Tull to sign the memorandum of understanding (MOU) at the Second Annual Green Sports Alliance Summit in Seattle. The agreement will facilitate collaboration between the two organizations on issues such as waste management, water and energy conservation, and sustainability for teams and at stadiums and sporting venues. The goal, according to Perciasepe, is to “find new ways to conserve energy, reduce waste and pollution, and engage America’s sports fans in the effort to bring about a more sustainable future.” Green Sports Alliance is a nonprofit organization with a mission to help sports

teams, venues, and leagues enhance their environmental performance. Alliance members represent more than 100 sports teams and venues from 13 different sports leagues.

The goal is to “find new ways to conserve energy, reduce waste and pollution, and engage America’s sports fans in the effort to bring about a more sustainable future.” Exploiting a Nook Market: Microsoft and Barnes & Noble Sign Alliance Deal

Microsoft and Barnes & Noble have finally signed off on a strategic alliance originally announced in April, with the two firms’ newly formed subsidiary— Nook Media—taking shape as a result. (Microsoft is an ASAP Global Member.) The companies say that Nook Media, previously referred to as Newco, will enable them to “advance world-class digital reading experiences to the hundreds of millions of consumers they jointly serve.” It will also result in Nook support on Microsoft Windows 8 when it launches this fall. As part of the agreement, Microsoft made a $300 million investment in Nook Media at a postmoney valuation of $1.7 billion, taking an approximate equity stake of 17.6 percent as a result. The remaining shares are in Nook’s hands. “Nook Media is a leader in developing the next generation of digital reading and we look forward to the company bringing one of the world’s largest digital libraries to Windows 8 devices via their upcoming Windows 8 app,” said Microsoft president Andy Lees. “We are also excited by Nook Media’s product roadmap and expansion into markets around the world as demonstrated by their recent launches in the United Kingdom.” 13

Collaborative Buzz Sony and Berlin Philharmonic Make Beautiful Music Together

Sony Corporation announced that it is collaborating with the Berlin Philharmonic (Berliner Philharmoniker) and Berlin Phil Media to pursue the technology development of higher sound quality across Sony’s audio products, and digital streaming of concert footage in higher picture and audio quality. These companies will develop what they call “concert hall soundstage mode,” and recreate the sound that artists strive for in concert halls, with the goal of enhancing the sound quality of audio products such as home theaters. With this new partnership, Sony will supply professional products incorporating its technologies, as well as provide technical support to realize a video streaming service with a higher-quality picture in full HD. The two companies will also embark on technology development around content creation and digital distribution for higher visual and audio quality content on DCH.

Alice Waters and Hyatt Hotels Serve Up Organic Kids’ Menu

In her first large-scale corporate collaboration, chef and restaurateur Alice Waters has joined forces with the Hyatt Hotel chain to provide an organic children’s menu at full-service Hyatts in the United States, Canada, and the Caribbean, according to the food Web site Bay Area Bites. At a press conference in late August at the Edible Schoolyard in Berkeley, Calif., Waters, surrounded by baskets of fresh garden produce, and representatives from Hyatt, introduced this culinary experiment while students prepared items from the new menu for lunch guests. The partnership began when Hyatt made a $50,000 donation to the school food reformer’s Edible Schoolyard Project. In exchange, Waters agreed to lend her name, expertise, and food philosophy to the evolving edible hotel program. 14

Developed in association with the Partnership for a Healthier America, Hyatt’s edible offerings also feature the recently launched “For Kids by Kids” menu tasted, tested, and approved by kids themselves. Waters and her team designed the prix fixe menu, a threecourse dinner consisting of a salad, chicken entree, and dessert, made with all organic ingredients.

Polycom Brings All Partners Under One Umbrella

ASAP Corporate Member Polycom, Inc., a leader in open standards–based unified communications, recently launched the Polycom Partner Network, which coalesces all previous partner programs into a single, unified global partner framework for Polycom’s ecosystem of approximately 7,000 channel and alliance partners. With this evolution of its partner ecosystem, Polycom is expanding its leadership in open standards–based unified communications to make it easier to deliver multivendor UC solutions that meet the unique needs of every customer. “The sophisticated nature of today’s enterprise communications infrastructure, combined with the need to deliver communications solutions to employees or users who may be on the go, at home, or in the office in any number of work environments, requires Polycom and our partners to collaborate closely to deliver true unified communications solutions,” said Tracey Newell, executive vice president of global sales at Polycom. “The new Polycom Partner Network broadens our global partner ecosystem so that partners can focus on what they do best.”

Sanofi and Bristol-Myers Squibb Restructure Alliance After Patent Expiration

Sanofi and Bristol-Myers Squibb Company announced in October that they have restructured their successful long-term alliance following the loss of exclusivity of Plavix and Avapro/ Avalide in many major markets. (Sanofi is an ASAP Global Member.)

Under the terms of the revised agreement, which will go into effect January 1, 2013, Bristol- Myers Squibb will return to Sanofi its rights to Plavix and Avapro/ Avalide in all markets worldwide with the exception of Plavix in the United States and Puerto Rico, giving Sanofi sole control and freedom to operate commercially. In exchange, Bristol-Myers Squibb will receive royalty payments on Sanofi’s sales of branded and unbranded Plavix worldwide, excluding the United States and Puerto Rico, as well as other considerations. In addition, under the terms of the agreement ongoing disputes between the companies related to the alliance have been resolved.

Sanofi and Coke Team Up on New Health Drink Line

Revenue growth pressures make for strange bedfellows. ASAP Global Member Sanofi and Coca-Cola have formed a partnership to bring to market a line of drinks promoting a variety of health and beauty benefits. Under the new brand Oenobiol, the two companies plan to release four drinks in the near future that address “hair, weight loss, sun exposure, and general vitality,” according to the report. This announcement dovetails nicely with the 2012 ASAP BioPharma Conference agenda, which features a presentation by Hans-Peter Frank, CA-AM, global head of alliance management for Patient Francises at Novartis, titled “From Drugs to Healthy Outcomes: Partnering with Nontraditional Partners.” Obviously, with the age of the “blockbuster” drug coming to a close in biopharma, companies need to diversify revenues in a big way. It certainly does not hurt to expand into the consumer realm where products get to market, and profits pad the bottom line, much quicker than a drug that has to make its way through clinical trials and regulatory approval cycles. Needless to say, the success of this partnership has implications well beyond this single alliance. n Strategic Alliance Magazine

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spotlight member

expanding r&d Alliance Horizons CRO Covance Walks Partners Through the Nuances of Service-Based Alliances By Jon Lavietes

JOHN WATSON JOINED COVANCE IN 1999 as a vice president of sales and client services at a time when Contract Research Organizations (CROs) largely served as “arms and legs” for its clients. Since then the CRO industry has become more widely recognized as a strategic lever for pharma companies to pull, and Watson (pictured above) has similarly risen within Covance, in part due to his efforts to enable the company to capitalize on the industry’s growing reliance on R&D-centered strategic allies. Today, Watson serves as chief commercial officer and president of strategic partnering, a role in which he applies 30 years of experience in alliance management and customer service to drive deeper client engagements that achieve the lofty goals of the company’s Strategic Partnering division. “When we officially launched our strategic partnering initiative in 2007, we had this vision to become the partner of choice in [the CRO] industry,” he said.

Covance in a Flash Launched formal strategic alliance initiative in 2007 Five enterprise-wide customer/partner relationships Approximately 20 business division-specific customer/partner alliances Approximately 16 percent of overall company revenue attributed to alliances with Sanofi and Eli Lilly and Company Named “most preferred lab” by investigators, according to Life Science Strategy Group survey Cited by William Blair Equity Research survey as CRO “best-positioned” for discovery

compounds, they are new to service-based alliances. According to Watson, R&D divisions are not as adept at connecting individual alliance initiatives with the affairs of the rest of the alliance portfolio and the company at large. “There’s a lot of variability in their own understanding of how you’re supposed to do that,” said Watson in reference to Covance’s strategic partner base.

Optimizing CRO Alliances

Named “favorite CRO to work with” in Baird As Covance has implemented the Of course, this has opened a wide Equity Research survey core elements of its program—metwindow of opportunity from which rics, senior executive engagement, CROs have been profiting in recent multiple levels of governance, rules of engagement, escalation years. Watson insisted that even large alliance-savvy companies processes, ongoing alliance health surveys, etc.—Watson has need help expanding the reach of their research projects in terms observed dynamics in CRO-client relationships that are unique of impact on larger corporate objectives. he cited Sanofi as an exto the biopharmaceutical industry. Although R&D divisions ample of Covance’s ability to expedite an R&D function’s underhave long engaged in point relationships to produce or develop standing of how to utilize a service-based relationship. Quarter 4, 2012

There Are Now More Ways to Earn CA-AM and CSAP Certification Points Than Ever! ASAP members have more avenues to secure and register qualification points toward CA-AM renewal or CSAP exam eligibility. Unveiled on July 1, our new point system provides 15 categories for earning points spread across four larger groupings: n Presentations (ASAP conferences, chapter events, and webinars as well as approved

ASAP and non-ASAP courses) n Writing (Member Resource Library, Strategic Alliance Magazine, Best Practices Bulletin,

or other approved publication) n Attendance/Participation (ASAP conferences, chapter events, and webinars as well

as approved ASAP courses and pre-approved continuing education programs) n Service to ASAP (chapter leadership, Board/special task force/committee membership)

To review the new certification point categories in greater detail, go to the Renewals & Eligibility page under the Career Building section of www.strategic-alliances.org. Renewing your certification is more than just keeping up a title; it ensures continued success in your practice and the advancement of your career. For questions about submitting points under the new system, please contact ASAPâ&#x20AC;&#x2122;s Certification Coordinator, Jennifer Silver, at 781-562-1630 ext. 205 or jsilver@strategic-alliances.org. 16

ALLIANCE MANAGEMENT CERTIFICATION

960 Turnpike Street Canton, MA 02021 Tel: +1-781-562-1630 Fax: +1-781-562-0354 www.strategic-alliances.org Strategic Alliance Magazine

“We were able to accelerate their product, their thinking, their view, their everything,” said Watson. “They get value across the entire portfolio of their relationships.”

of that alliance [in] that area has improved. We set values for the relationship, and we’re pretty draconian about that,” said Watson.

The start of each alliance is critically important to Covance. The company’s set way of kicking off a relationship includes the demonstration of its roadmap to key players in the new client company as well as an address from Covance’s board chairman and CEO, Joseph Herring. In addition, Covance puts on its “Covance Day” road shows to educate its partners on its capabilities, which include a wide variety of services that span several disease areas and phases of the drug development cycle, from discovery to commercialization.

Focus on Relationships as Differentiators

“We do things like that that start to build and gain momentum in the alliance,” explained Watson. Once the alliance is up and running, Covance brings several proprietary technology solutions to the table to help clients optimize the relationship, including a portal and real-time data access to metrics, key performance indicators, and scorecards.

Friend or Foe? Managing Potential Opposition to CROs There are other elements of a CRO relationship that folks in other types of biopharmaceutical alliances do not have to worry about. “If you’re in-licensing a molecule or buying a stake in a company, you have a narrower group of people engaging with [relevant company stakeholders], and the commitment is clear,” said Watson. “They are not necessarily seen as threats to each other.” Contrast that with an R&D division that is seeing more and more of its responsibilities outsourced, and one can see why an engagement with a CRO could potentially be a rocky affair. “If you’re outsourcing 10 percent [of R&D work] one day, 30 percent the next, 50, [then] 70, pretty soon it’s, ‘I’m gone. I don’t have a job here at this pharmaceutical company.’ This ‘competitive’ view between internal resources and a CRO has to be managed,” said Watson. This inherent tension places a particular premium on the health check. Covance’s surveys examine anywhere from 12 to 15 dimensions of each relationship. When an unusually large gap is identified in any category, an action plan is developed and reviewed at the next Steering Committee meeting to ensure that all parties agree on the next steps that are necessary to rectify the problem. “We make sure that the next time we do [meet], the health Quarter 4, 2012

Threat or not, Covance values the intangibles of a relationship highly and sees it as a major driver of alliance success. While alliance managers regularly speak of striving for “win-win” agreements, the business side of things can sometimes limit even successful relationships to being strictly professional in nature. Watson wants Covance’s client/partner relationships to have a human touch as much as possible. “I don’t think our clients feel like our single goal in life is to grow the top and bottom line. They know we’re for-profit, [but] I think they genuinely believe that we care about them as a company, them as individuals, their pipelines, and the impact they have on us and our families,” he said. “[If] you’re doing all of these other best practices, but every time you leave the room the partner is thinking, ‘Man, these guys are just trying to get another dollar out of my back pocket,’ that never works.” As part of applying this customer service approach, Covance is training more personnel and doubling the number of professionals certified in alliance management in order to ensure that all clients are receiving the same high level of service. “Our clients, in particular, expect the same types of skill sets from everyone they deal with,” said Watson. “The ability to build in those skill sets creates additional value, goodwill, and benefits for all segments of the clients we serve…whether they’re a full-fledged enterprise-wide alliance or a single-molecule small virtual organization.” With pharmaceutical companies entrusting valuable assets to CROs and counting on them to solve momentous cost and productivity issues, each side is only going to become more integrated into the other’s affairs in the coming years. “There will be more and more of these strategic alliances. They’ll be broader, they’ll be deeper, they’ll be a much more peer-to-peer type of relationship in interactions,” said Watson.Alliance management is helping CROs like Covance build a bond with partners strong enough for every molecule. n 17

A Place in the Conversation

As the C-Suite Increasingly Sees Alliances as Essential to Business Success, Alliance Management Has a Long-Awaited Opportunity to Make Itself Indispensable

Strategic Alliance Magazine

strategic a l l iance maga z ine | special foc u s | B I O P HA R M A

Three Alliance Leaders Give Their Perspectives on Where We’ve Been, Where We Are Now, and the Exciting Prospects for the Profession’s Future By ASAP Media Staff

Today, CEOs and senior executives are finally singing the praises of collaboration and alliances. In fact, at the BIO Conference this year, they were major themes as CEOs and other leaders of major pharmaceutical companies spoke at length about how no company can tackle the looming challenges of patent cliffs, increasing regulations, cost containment, and finding new innovations on its own. Such words were not common from the higher powers of pharmaceutical companies earlier in the millennium, and alliances would not have featured so prominently in BIO’s agenda. Nor would the trade press do a roundtable discussion with alliance management leaders, as occurred at this year’s conference when PharmaTelevision conducted interviews with four ASAP members about their role in realizing the value of alliances and collaborations. Likewise, it was common for alliance managers to spend much of their time justifying their existence. Today, the alliance management function is a recognized part of the standard biopharmaceutical operation. Now alliance management has a new challenge: connecting the dots for company heads so that they recognize the connection between a high-performing alliance management function and successful collaborations—a necessity for achieving core organization objectives and thriving in today’s business world. There are companies in which alliance management is very much a part of the conversation about company strategy, shaping their practices to deliver the value senior leaders seek. There are others in which it is seen as strictly an operational discipline, managing governance and contracts. And there are still a few that think they Quarter 4, 2012

can succeed with partners without the benefits of alliance management. Wherever your company is on this spectrum—whether your current challenge is to create a dialogue with the chief executive and his or her confidants, or to sustain an existing line of communication—today’s climate provides a great opportunity to gain mindshare from the folks who matter most in your organization. In the following pages, you will find the perspectives of three alliance management professionals who have collectively faced most, if not all, of the challenges that come with not just gaining acknowledgment of the critical importance of alliance management, but leveraging that recognition into increased investment into the practice so it can ensure that company alliances advance the pipeline, create efficiencies, or increase revenue—a longtime industry consultant, one of the first wave of alliance management practice heads, and an executive who is currently building and creating solutions to ensure that alliance management delivers on the needs of key senior leaders. Between them, we hope you find helpful hints in converting today’s rhetoric from senior leaders into a place in the strategy conversation and more resources to make sure those executives end up being right about collaboration. 19

strategic alliance magazine | special focus | BIOPHARMA

You are reading the Limited Edition of Strategic Alliance Magazine, the magazine of the Association of Strategic Alliance Professionals. The printed magazine is mailed free to all ASAP members and Sponsors and is also available as a paid subscription. The complete PDF is available to members by logging in to www.strategic-alliances.org For Membership and Sponsor information email membership@strategic-alliances.org or call +1-781-562-1630 ext. 200

Strategic Alliance Magazine

strategic alliance magazine | special focus | BIOPHARMA

Quarter 4, 2012

strategic alliance magazine | special focus | BIOPHARMA

Strategic Alliance Magazine

strategic alliance magazine | special focus | BIOPHARMA

Quarter 4, 2012

Strategic Alliance Magazine

E ditoria l

S upp l ement

Good to Go

How Setting the Right Tone, Goals, and Expectations Gets a Great Alliance Going By Steven E. Twait, CSAP, and David S. Thompson, CA-AM

Good Governance Starts Early, Mitigates Risk Strong governance and operating structures form the basis of all successful alliances. That said, the time and effort required to establish good governance are often underestimated. Once an agreement nears signing, for example, partners face an almost irresistible temptation to start putting a governance structure in place without first adequately defining the issues that must be managed over the alliance life cycle. This approach is shortsighted, and the solution for alliance professionals is simple. To paraphrase Albert Einstein, if you have an hour to construct a suitable alliance governance framework, spend 59 minutes defining the problems the alliance will face and one minute finding a suitable governance framework. Governance Design Part II. The second in a four-part series on alliance governance, this article provides an overview of the most important elements to consider before and during alliance start-up. By deliberately setting the right tone and establishing a coherent operational framework, alliance professionals can ensure that the partnership gets off to an excellent start, which is critical to its long-term success. Quarter 4, 2012

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S U P P l E M E N T

Human Risk

Business Risk

Legal Uncertainties

START-UP

Two day start-up meeting and socialization 3D Fit and Strategic Futures exercise conducted Guiding principles and rules of engagement developed Executive coaching/team chemistry and dynamics

IT platform to enable communication between all functions is established Financial processes established Financial goals/targets set Contracts to spell out exploding timelines for key start-up deliverables (e.g.,“within 60 days of signing, you must…”) Formation of crisis management team

Business development from each company to jointly present contract summary to alliance teams (i.e., share key negotiation issues) Onboarding materials developed and distributed Alliance handbook developed Firewall training developed and offered if needed

STEADY STATE

On/offboarding at all levels (team and leadership) VOA™ implementation and interventions Dealing with personnel performance issues at all alliance levels Reputation for being a fair/unfair partner is established

Execution of plans by crisis management team (process/internal/external) Governance assessment and evolution (structure will likely change several times over life of alliance) Trajectory of alliance performance is established Managing strategic changes experienced by each company (e.g., tensions created by downsizing, restructuring, change of control, etc.)

Audit preparation Contract amendment negotiations/processing Potential contract disputes/ mediation/arbitration Managing changes due to companies’evolving strategy and tactics

WIND-DOWN

In previous issues of Strategic Alliance Magazine, we have framed potential problems in three categories: human risk, business risk, and legal uncertainties. As you can see in the following matrix, elements of risk and uncertainty are persistent and plentiful during each alliance phase. Using this tool—or one like it—a skilled alliance manager will be able to plan for and execute strategies and tactics that are designed to reduce risk and successfully mitigate potential problems during each phase of an alliance’s life cycle.

Managing mass offboarding of alliance personnel Establishing guiding principles to manage behaviors and actions during the wind-down Allowing for longstanding relationships to celebrate past successes Rewarding the people who are leading the wind-down

Acknowledging each Leveraging the existing company’s document governance to execute retention policies the wind-down Chunking the wind-down Parties agree on appropriate side amendments to into manageable original contract categories and work streams Ensuring that both companies understand Reevaluating financial processes to enable speed ongoing responsibilities and are staffed approprover precision iately to manage Ensuring that wind-down activities satisfy legal obligations (each country’s laws)

Take Time to Define Who Will Do What Given the importance of governance, alliance professionals can—and ideally should—play an important role in scoping and defining frameworks and processes before any 26

agreement is signed. In a previous article (“Governance by Design: How Well-Established Principles and Practices Set the Stage for Alliance Success,” Strategic Alliance Magazine, Q3 2012), we provided an overview of the most important elements to consider when designing structures and processes to guide a partnership throughout its life cycle. Before formal terms have been agreed upon it is especially valuable to set the right expectations about what types of work the alliance will undertake and who will be responsible for what. While this advice might seem obvious, the task of defining work is often overlooked or is clouded by uncommunicated, individual expectations. Imagine, for example, that you are talking with two people about doing work to remove weeds in your yard. You make a simple statement—that you would like to get rid of the weeds and are willing to pay a fair price for their removal. Now imagine that one person is a worldrenowned plant geneticist specializing in weeds, and another is a neighborhood teen interested in odd jobs. As you can guess, the definition of work and the expectations of cost and value in such a scenario—and in many alliances—may be left unspoken. The resulting interpretations often produce a range of potentially disappointing—and expensive—proposals. One helpful source of commentary on types of work is Peter Drucker, who offered several definitions in his book Flawless Consulting. Drucker used the term “pair of hands” to describe the type of work in which you need someone to do an easily defined task such as collating papers, storing data, or pulling weeds. Then he outlined “collaborative work,” in which two or more people gather to solve a problem. Another category is “consultative work”; here, an expert renders an opinion on how best to approach a task. Drucker mentions others, but these are the most common types of work found in alliances. Translating this concept to alliance work is straightforward: always be clear about the types and combination of work that your alliance will govern. These views should be expressly discussed with your potential partner during the contracting phase, along with the relative importance of each activity. You must make a conscious effort in this regard, because it is extremely easy to fall into the trap of believing that the other person shares your definition of work. Take the time to talk about both the work that will be done within the alliance and the work that will be done to govern the alliance. Strategic Alliance Magazine

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The Contract Is Signed. Now What? Once the contract has been signed and the press release issued, it’s time to get down to work. Building the foundation for a successful alliance requires careful planning and execution of an alliance start-up process, which includes preparing the team, an internal kickoff event, and a joint kickoff event.

Preparing the Team

Internal Kickoﬀ Event

After the contract is signed, alliance managers should work diligently with alliance team members to open communications channels between the two companies. Activities should include: – Raising internal awareness about the alliance – Transitioning from contract negotiations to implementation – Making connections with contact lists, securing e-mail – Creating key personnel bios and alliance calendar – Preparing for internal and joint kickoff meetings, which entails: Understanding the vision of the alliance Developing a company backgrounder for each partner Onboarding governance committee members Developing roles and responsibilities and reviewing them with key functional leaders Creating a plan to manage contractual obligations

Shortly before bringing the two companies together for the oﬃcial joint kickoff meeting, alliance managers should conduct an internal kickoff. Insights obtained during due diligence and contracting need to be shared with those who will be implementing the alliance. Objectives of the internal kickoff meeting should include: – Getting to know the partner – Understanding the alliance value proposition for both parties – Understanding any issues that surfaced during due diligence – Understanding the contract provisions – Reviewing the governance structure – Preparing the team for the start-up – Ensuring functional area alignment

Joint Kickoﬀ Event With the goal of preparing the alliance leadership team to effectively work together, the joint kickoff meeting is one of the most important events in the life of an alliance. Here leadership will engage for the first time and have the opportu-

A common illustration is that at some point—perhaps even at several junctures—one alliance partner will perform work by reviewing output produced by the other partner. The person who carried out the original task might not view the other person’s assessment as real work, but the reviewer certainly will, and a difference of opinion can ensue. Fortunately, these types of frustrations can largely be avoided by having frank, specific discussions early on, while everyone is fresh and the slate is clean. Roles and responsibility matrix tools can help, but they cannot take the place of face-to-face, open-ended conversations. If you and your alliance team are brought in after the Quarter 4, 2012

nity to set the vision and tone for how the alliance will operate. Participants in this event should include key individuals from both companies who will be playing an integral role in the alliance (e.g., alliance governance members and project/functional leaders). Objectives of this meeting include: – Gaining a basic understanding of the deal (why it makes sense for both parties), the contract, development strategy, and/or commercial opportunity – Aligning on the goals and objectives of the alliance for the short and long term – Obtaining input to develop a mission statement and guiding principles for the alliance – Defining committee priorities and work plans for the first 100 days – Building strong relationships to set the tone for the future – Developing operating principles that will guide how partners work together

contract is already signed and there are issues regarding work, be sure to take the time to identify and thoroughly discuss the full range of work expectations with your partner. Doing so will pay big dividends.

Design Governance with “Exploding Timelines” In every relationship there are certain topics that need special attention. For example, deciding on a timeframe for a quality

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agreement or manufacturing guidelines is typically an important contractual component of an alliance. If the contract states that in a certain number of days after signing, specific groups will convene and establish a functioning governance structure, for example, you will ensure that governance receives appropriate attention. This same “exploding timelines” technique, in which contract-specific deadlines are established for key events, can be used to set timing and expectations for alliance governance. For example, the first governance meeting and basic agenda topics can be specified in a contract, with the goal of focusing both parties on important alliance issues that may be overlooked while leaders are focused on other matters. If the partner company has an alliance management function, the role of alliance management can be included in the contract as part of the governance section as well. While you don’t want to overuse this technique, this sort of contract language can be extremely useful for the most important features of an alliance.

Assess Cultural, Strategic, and Operational Fit While we carry out a robust fit assessment process during due diligence and contracting, we also conduct what we call a 3D Fit exercise during the joint kickoff meeting. This process goes beyond the traditional assessment of operational compatibility and ensures that the strategic and cultural dimensions of partner compatibility are reviewed, addressed, and tracked over time. The goal of the activity is to provide each party with insight into current compatibility in the following categories: – Cultural Fit: Testing cultural fit requires getting to know the partner company, assessing its reputation in the marketplace, and understanding how “work really gets done.” Elements of cultural fit should consider corporate culture as well as geographic considerations (e.g., company headquartered in Japan with U.S. operations). – Strategic Fit: Analyzing strategic fit involves comparing each company’s corporate strategy, mission, and short- and long-term objectives to identify scenarios that could create issues in the alliance (e.g., major patent expiration for a company could drive resource constraints).

S U P P l E M E N T

– Operational Fit: Understanding the partner’s business processes (e.g., fiscal year, metrics, project management systems, compliance practices, etc.) and how complementary they may be to your own company’s processes. This assessment will identify areas where roles/responsibilities need to be clearly defined as well as where joint alliance processes may need to be developed to ensure alignment. Exercises such as these are extremely valuable because they enable you to recognize and address differences, along with the issues such disparities might generate during the course of your relationship. Another helpful resource is the insight you can gain from your alliance’s leaders. Based on experience, they often are able to identify critical success factors and predict (at least in a general sense) many of the problems that could arise. Take advantage of their insight to get out ahead of issues before they have a chance to do any damage. By developing and implementing tools such as the 3D Fit assessment and by listening carefully to the collective wisdom of people who have been through it before, you can help your alliance run more smoothly.

Successful Alliance Start-up in a Nutshell Ultimately, the success of your governance structure relies heavily on strong execution of three elements in the alliance start-up phase: – Spend time talking to your partner about the definition of work and the types of work that are expected in your alliance. – Develop tools that will assist in predicting the issues that are likely to evolve over the life cycle of the alliance. – Never underestimate the importance of a successful joint kickoff meeting. By setting the right tone and establishing an effective operating framework, alliance professionals can ensure that the partnership gets off to an excellent start, which is critical to its long-term success. In the next two articles in our series, we will describe how to build on the foundation laid at the outset of the alliance and maintain operations through the “Steady State” phase as well as how to navigate through the relatively stressful “Winddown” of the partnership.

Steven E. Twait, CSAP, is senior director of alliance management and M&A integration at Eli lilly and Company. he can be reached at stwait@lilly.com, +1-317-276-5494. David S. Thompson, CA-AM, is chief alliance officer at Eli lilly and Company and is a member of the ASAP board of directors. he can be reached at Thompson_David_S@lilly.com, +1- 317-277-8003.

Quarter 4, 2012

Taking the Pulse of Your Alliance

Alliance Health Checks Help Both Partners See Where the Alliance Is Going Right, Where Itâ&#x20AC;&#x2122;s Going Wrongâ&#x20AC;&#x201D; and Where They Disagree By Michael Burke

Strategic Alliance Magazine

The Alliance Scorecard, left, is one of 100+ helpful resources (including ready-to-copy forms and checklists) in The ASAP Handbook of Alliance Management: A Practicionerâ&#x20AC;&#x2122;s Guide, to be published December 2012, and now available for preorder at www.strategicalliances.org/handbook.

Quarter 4, 2012

Strategic Alliance Magazine

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ceo forum

Q&A with Süreyya Ciliv, CEO, Turkcell Strategic Alliance Magazine: Major telecommunications companies around the world have been notoriously slow in adapting to the faster pace of technology and its reliance on strategic alliances. Did the fact that Turkcell, an ASAP Corporate Member, began operations in 1994 give it an advantage over older telecommunications companies in other parts of the world in instilling a culture that integrates alliances into the relevant parts of the company (sales, marketing, product development, etc.)? Süreyya Ciliv: In order to adapt our business development schemes to the pace of the technology industry, Turkcell continuously analyzes technological opportunities in the context of market and consumer dynamics. The idea to develop a partnership ecosystem was one of the essential outputs of this approach, which materialized first in 2002 with the establishment of the company’s Value Added Services Partnership Division and its 15 contributing partners. This was, then, followed by the aggregation of different business models and benefits and shared with our partners under a unified framework launched as the Turkcell Partner Program. In this 10-year journey, the ecosystem embraced more than 200 partners and employed more than 4,000 professionals, nearly 1,500 of whom are qualified engineers or other technical personnel. This progressive achievement of expertise and human resources has been the major driver of the Quarter 4, 2012

expansion of the ecosystem’s business and innovative product development. The Turkcell Partner Program helps our partners capitalize on emerging technological opportunities in different business areas relevant to their available skill sets. Recently, we established a new business line with more emphasis on extended IT expertise and cloud technologies together with mobile technology know-how. All of these various skill sets preview a new integrator-level partnership model. Therefore, we can focus our partners on a wide variety of scalable ICT services to develop new business opportunities. Another key element for sustaining the technological and financial development of a partner is well-structured guidance, which we provide in our benefit packages. In this context we support our partners by presenting them with opportunities to participate in nationwide and international research projects, enabling them to join R&D studies that are financed by the European Union, providing networking possibilities that could lead to universityindustry collaborations, sharing information, and delivering training programs and events. We even lend a hand to smaller business ideas by providing an incubation environment. last but not least, because of global socioeconomic changes and fast-changing market requirements, innovation has become the main agenda item for most sectors and firms. Innovative product and

service development and new business models and methods are only possible by adopting an innovative approach at the company culture level. Developing new alliances is one of the most basic means of achieving this cultural change. With that in mind, we have started developing key alliances, not only in the telecom business, but also in other sectors such as the pharmaceutical and automotive industries. Turkcell continually evolves the telecom sector by establishing and maintaining business alliances in several sectors. We define our ecosystem—which includes firms from different sectors, partners, universities, nongovernmental organizations, technology parks, and other enterprises— as an innovation network, and we keep developing it continuously.

We support our partners by presenting them with opportunities to participate in nationwide and international research projects, [and] enabling them to join R&D studies that are financed by the European Union. SAM: Turkcell’s mobile application developer ecosystem was honored in 2010 with an ASAP Alliance Excellence Award, and its partner platform was a finalist in 2012. As leader of the company, what do you see 33

realizes the value of committed Alliance Management.

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clinical | commercial | consulting | capital

regu l ar

as the critical factors in keeping more than 200 registered application service providers, content providers, system integrators, and OEMs all working together toward a common goal as company objectives change with the rapid pace of the mobile technology industry? Ciliv: The Turkcell Partner Program’s most significant differentiator over the last decade is the fair and transparent approach to each and every one of hundreds of partners in the ecosystem. Every organization that has the potential to become a member of this exclusive business community is evaluated through a set of standardized business criteria, which are openly disclosed to partners. Similarly, any partner that performs better and excels over certain performance evaluation criteria may then earn the annual benefits of the Turkcell Gold and Silver Partner Program. Those newer partners are provided equal access to Turkcell’s pioneering technological enablers and business leadership, so that they could gain competitive advantage against companies out of the ecosystem. They also have the chance to challenge and/or synergize with higherperforming partners in the ecosystem. We have a well-structured performance management system developed for our partner program. We share our strategies and targets with our partners at our annual partner day events. We also run performance review and measurement meetings twice a year. We leverage independent market research companies to keep track of both customer satisfaction scores for our partner services, and our partners’ feedback and evaluation of the partner program’s performance. In order to sustain acceptable customer satisfaction standards and achieve excellence in legal and regulatory compliance, partner services and products are monitored and measured to validate that they meet the criteria for which they are intended. Quarter 4, 2012

F E A T U R E

These operations are held on a daily basis with a dedicated outsource team, and their outputs have significant impact on the company’s annual scoring for Silver or Gold Partner status promotion, which result in partners’ receiving extra marketing benefits. This 360-degree approach helps us understand the needs and pain points in our ecosystem, and helps us better design and administer operations, processes, and services for our partners. We are developing new business opportunities and business models for fresh partnerships in emerging business areas, while we work on improving the business and regulatory environment to strengthen the sustainability of our existing businesses. In order to advance our partner ecosystem, we are now better equipped and culturally more oriented toward working with start-up companies with innovative ideas and high-quality talent. We strongly believe in the power of external innovation and an entrepreneurial community. We see the impact of individual developers increasing in some of our strategic focus and growth areas such as mobile Internet, machine-to-machine (M2M), and mobile applications. Our current mid- and large-sized partners used to be either young start-up companies or developers in early phases of the value-added services world. We helped those young companies and individuals during their incubation phase, and we have worked together to successfully grow our non–voice services base. Nowadays, we pay special attention to leveraging the power of the local startup community to increase the number and variety of partnerships in emerging business areas and improve our product and services offers and solutions based on customer needs. SAM: Aside from continuing to evolve the company’s products through the developer

ecosystem, what other main strategic company objectives do you expect strategic alliances and business collaborations to help achieve?

We pay special attention to leveraging the power of the local start-up community to increase the number and variety of partnerships in emerging business areas and improve our product and services offers and solutions based on customer needs. Ciliv: Our priority is to improve our innovation network for sustainable growth. We want to enhance new solutions through collaborations across several industries. We offer new product and service experience, particularly collaborating in the corporate and individual market in the machine-to-machine (M2M), cloud, finance, media, and terminal areas. We have introduced new services in mobile finance and near field communication (NFC) by collaborating with other vendors and manufacturers. Our most recent Turkcell Wallet Launch is a product of such a strategic alliance. This mobile wallet, which offers all innovative solutions on a single commerce and payment platform, including a breakthrough feature that enables physical or online shopping through a mobile phone number instead of a credit card, has been launched in collaboration with Garanti Bank and Mastercard. Our strong partnership approach enables us to offer world-class platforms and services. To achieve our social responsibility and business objectives, we have developed Continued on page 54 35

Public-Private Partnerships Are Tackling Big Issues Around the Globe with Some Success. Is There a Role for Alliance Management?

Strategic Alliance Magazine

Alliances That Could Save the World By John DeWitt and Michael Burke

MAyBE WE’RE BIASED, TAlKING AND RUBBING ShOUlDERS WITh alliance professionals on a regular basis, but we tend to see the positive results of collaborative enterprise everywhere we look. We see them in business-to-business alliances, in biopharma-academic collaborations (see story in this issue, page 46), and now, increasingly, in the realm of multiple-stakeholder public-private partnerships that direct their efforts toward some social good. Public-private partnerships have been around for some time, but as the world has grown more connected and its various problems more interlinked, they promise to become ever more important not only to addressing specific issues, but to ensuring a sustainable global future for ourselves and our children. The world we live in is confronted by a host of complex problems: in the areas of health, energy, the environment, economic development, poverty and hunger, education, and peace, to name just a few. While these problems may have local roots and regional character, they are in fact interconnected, and their impact is felt around the globe. What happens in Vegas may stay in Vegas—though that’s debatable in the age of youTube and Twitter—but what happens in China, Nigeria, Bangladesh, Syria, and elsewhere affects all of us—often more rapidly than we realize. It’s our view that these big, thorny global issues may best be addressed and solved by cross-sector, often large-scale collaborations involving government, business, academia, and notfor-profit organizations, as well as affected communities and individuals. And it’s already happening: various kinds of publicprivate partnerships are solving critical societal challenges on every continent. Talk to anyone involved in these partnerships and you’re immediately struck by their similarities with business-to-business collaborations. for example, just like conventional B2B, profit-driven alliances, public-private partnerships (sometimes known as PPPs) require alignment of diverse stakeholders, systems and structures for effective governance, champions at the highest levels, and ultimately, execution that creates value for all involved. To date, it’s been rare to find someone with the explicit title of “alliance manager” working in these partnerships. But that may Quarter 4, 2012

Public-private partnerships promise to become ever more important not only in addressing specific issues, but in ensuring a sustainable global future. be about to change. Chances are the senior leadership in your company is already exploring potential partnerships with the public sector, NGOs, and/or academia—or soon will be—even if that’s never been in your organization’s DNA to this point. Even companies that have never been involved with the public sector before are finding it an economic imperative to explore such complex collaborations as a way of generating value for their stakeholders. Will alliance management be ready for the change?

A Blurring of the Lines: Public-Private Partnerships and Alliance Management “We are now in a worldwide situation in which there’s not going to be just pure business-to-business partnership by itself,” said Rubén García Santos, CA-AM, an ASAP member working as corporate alliance and key account manager with the United Nations Children’s fund (UNICEf) and formerly an alliance professional at the Swiss pharma company f. hoffmann–la Roche. “We are moving rapidly toward more public-private partnerships and hybrid business models. Private entities are realizing that to succeed in business terms and to do so in a sustainable manner, they cannot do it exclusively through B2B partnerships; societal needs must be met. here the need to partner with public sector and other influential organizations becomes paramount. The public sector at the same time is realizing that to bring forward faster and 37

Strategic Alliance Magazine

Quarter 4, 2012

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Open Innovation Alliances Novel Alliance Models Accelerate the Identification and Advancement of Breakthrough Therapies By Chris Wilks and Christian Prothmann

Strategic Alliance Magazine

E ditoria l S upp l ement strategic a l l iance maga z ine | special foc u s | B I O P HA R M A In the last few decades, the growing risk and complexity of product development, the competitive global business environment, and the need for more differentiated and innovative products have forced companies across industries to rely more on partnerships. Several key drivers have amplified the complexity of alliances, including an increasing number of global strategic relationships, the existence of cultural and organizational differences between partners, and the involvement of multiple parties in a partnership. The need to collaborate on innovation has led companies to explore novel models of partnerships based on the principles of Open Innovation. In his 2003 book Open Innovation: The New Imperative for Creating and Profiting from Technology, Henry Chesbrough defined Open Innovation as “a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market.”

A Dynamic, Fluid Model Chesbrough’s concept can be applied to any bilateral or multilateral alliance. The resulting—and evolving—“open innovation model” is more dynamic and fluid than traditional alliances; in these relationships, alliance partners are not identified in a conventional, targeted fashion, and partners rely more heavily on idea and knowledge sharing during the preformative period of the alliance. Compared with existing alliance models, the organizational fluidity of open innovation initiatives adds complexity to the alliance management process (Figure 1, next page). Open innovation alliances are designed to provide an environment that facilitates the free flow of ideas, ultimately leading to the formation of partnerships whose purpose is to innovate jointly and share risks and rewards. Open innovation has been defined and implemented by companies in a number of different ways, including user innovation, crowdsourcing, and innovation ecosystems, as well as some forms of joint development alliances. Open innovation partnerships can also entail alliances among profit-based and nonprofit organizations alike (e.g., academia), a trend that has attracted growing attention in the realm of biopharmaceutical research. Examples of open innovation include Procter & Gamble’s Connect + Develop, Eli Lilly’s Open Innovation Drug Discovery, AstraZeneca’s UK Medical Research Council (MRC) alliance, and the recent National Institutes of Health (NIH) initiative called Discovering New Therapeutic Uses for Existing Molecules.

Industry-Academia Partnerships in Biopharma Collaborations between the biopharmaceutical industry and academia have existed for many years. Initial collaborations focused on single projects of interest, ranging in size from small research projects to large Phase III clinical trials, and collaboration agreements were put in place on an individual basis. As a next step in the evolution of academia-pharma partnerships, larger-scale “umbrella” agreements have been signed between companies and single Quarter 4, 2012

Open innovation partnerships can also entail alliances among profit-based and nonprofit organizations alike (e.g., academia), a trend that has attracted growing attention in the realm of biopharmaceutical research. institutions covering broader research programs, clinical trials, and translational research. Figure 2 (page 45) illustrates the move from single research-project interactions to larger-scale collaborations covering multiple research projects to two different models for open innovation. In the first model, the pharma company seeks research proposals, within a defined framework, from academic institutions (and biotech companies). This model has been advanced by a number of companies (e.g., Eli Lilly, Bayer). However, the second model, which includes an academic entity coordinating—and possibly funding—other institutions (e.g., MRC), has attracted significant attention in the last few years. The interface of academia and industry is still an underleveraged breeding ground of innovation. Many recent open innovation initiatives have been introduced with the aim of establishing alliances with academia (e.g., Eli Lilly, Pfizer, AstraZeneca). The goals of such partnerships include advancing the understanding of disease mechanisms and exploring the utility of existing drug candidates beyond their current disease focus with the hope of identifying new medicines. By opening partnerships to the larger academic community, new open innovation alliance models have been developed based on an entrepreneurial risk- and reward-sharing model.

Open Innovation vs. Traditional Alliances Open innovation alliances have several key features that distinguish them from traditional alliances (Table 1, next page). The alliance between AstraZeneca and the Medical Research Council (MRC) in the United Kingdom illustrates several of these features. In 2011, AstraZeneca and the MRC established a program in which the latter provided funding of up to £10 million to UK-based academic investigators. AstraZeneca granted access to 22 of its investigational compounds, all of which collectively have undergone 43

S T R AT E G I C A l l IA N C E M AG A z I N E | S P E C I A L F O C u S | B I O P hA R M A Figure 1: Complexity of Different Alliance Models Open Innovation Alliance Multiparty Alliances Complexity

Joint Ventures Development & Marketing Partnerships Licensing Partnerships Strategic Supplier Partnerships Transactional Suppliers Degree of Innovativeness

extensive development, to build on the existing understanding of their mechanisms and therapeutic potential. The 22 compounds provide investigators with a toolkit for exploring their novel ideas, testing scientific hypotheses, and applying their domain expertise. Astrazeneca supports the investigators by providing compound supply, compound-specific development knowledge as well as access to regulatory documentation. Ultimately, the shared goals of the alliance partners are to advance the understanding of disease mechanisms and enable the development of new medicines.

In open innovation alliances, alliance management plays a central role in defining the alliance portal and the framework, which are critical both to attract partners and to communicate the strategic alliance vision and expectations.

clearly defined at the outset of the partnership. In the case of the Astrazeneca-MRC alliance, Astrazeneca provided academic researchers with access to proprietary compounds, compound supply, regulatory information and knowledge to test new hypotheses of disease mechanism. Any new intellectual property generated will be the property of the academic researchers, with Astrazeneca having the right to negotiate an exclusive commercial license and the right to a nonexclusive license for further development activities in the event of promising results.

Alliance Management’s Critical Role Generally, traditional alliances are formed by identifying potential alliance partners in a highly targeted and asset-focused fashion, mainly driven by business development. Open innovation partnerships are very different, and that has implications for alliance management. In open innovation initiatives, all of the potential alliance partners, and the specific scope and type of the alliance, may not be known at the start. Many open innovation collaborations rely on an innovation portal, which is created to attract potential allies and to provide an environment for partners to interface, share information, and facilitate the overall formation of partnerships. In open innovation alliances, alliance management plays a central role in defining the alliance portal and the framework, which are critical both to attract partners as well as to communicate the strategic alliance vision and partnering expectations. Since many aspects of a partnership within the context of an open alliance initiative are less predefined, alliance management is critical to facilitating the interaction with potential partners in order to ensure that the “open” character of the partnerships is maintained, while the actual alliance agreement gets negotiated by business development. Open innovation alliances are mostly multiparty initiatives. With larger numbers of partners featuring different value propositions, open innovation alliances exhibit a higher degree of partner heterogeneity, meaning that these partnerships include partners with different organizational structures, cultures, missions, and values. Alliances with a high degree of partner heterogeneity can be a highly productive substratum for innovation; however, they also represent a greater challenge for building trust among the partners, which

As part of a well-defined open innovation process, the MRC and Astrazeneca have been reviewing more than 100 proposals from academic researchers, some of which are being advanced through individual alliances formed by the respective academic researchers and Astrazeneca within the framework of the AstrazenecaMRC alliance. The investigators are developing Table 1: ideas for studies using Astrazeneca compounds Comparing “Traditional” and Open Innovation Alliances in order to achieve the objectives of the alliance Descriptor “Traditional” Alliance Open Innovation Alliance with the funding MRC is making available. Innovation model Closed Open If we look at traditional joint development alliFocus Assets Ideas, knowledge & expertise ances and open innovation alliances, one differPartnership formation Targeted, asset-driven Open, idea-driven ence becomes apparent: the generation of ideas Partner interface One-on-one Open innovation and sharing of knowledge and expertise are key portal/environment focus areas of open innovation alliances, whereas Parties Normally two Multiple traditional alliances tend to have a greater focus Partnership heterogeneity Low-to-moderate Moderate-to-high (differences in organizational culture) on selected assets for which the intended uses are Agreements Individual, different for “Umbrella”and/or template Strategic Alliance Magazine each partnership agreement approach Role of alliance Earliest involvement Integral part of open management during deal negotiations innovation portal

strategic a l l iance maga z ine | special foc u s | B I O P HA R M A is pivotal for the exchange of ideas. The effective management of the diversity in these multiparty alliances is one of the alliance manager’s key challenges. It has to be clearly addressed in the alliance management process as well as in the overall vision and mission. This has to be made transparent to potential partners, each of which need to acknowledge their differences—all the while viewing these dissimilarities, not as a challenge, but as an opportunity to innovate. The presence of a coordinating body (Figure 2; e.g., MRC), for example, greatly facilitates the introduction of standardization and efficiencies, provides established links and processes with the academic institutions likely to be entering into the alliance, increases trust between industry and academia by serving as an intermediary, and facilitates innovation by providing support and funding for the research proposals. AstraZeneca has entered into several agreements with a coordinating body, initially oncology collaborations with the U.S. National Cancer Institute, the U.K. National Cancer Research Network, and the charity Cancer Research UK. More recently, open innovation approaches have been extended across a broader range of therapy areas and academic stakeholders, such as the alliance with the MRC. In May 2012, NIH’s new National Center for Advancing Translational Sciences (NCATS) and multiple biopharmaceutical companies entered into an alliance providing academic investigators with funding and access to drug candidates to explore new treatments for patients. These alliances are seen as pilots of pioneering and testing models for multistakeholder drug development alliances—an area in which it is hoped that open innovation will trigger a new wave of productivity and advancement of medicines.

Open Innovation and the Alliance Life Cycle The classic alliance management life cycle—deal negotiation, launch, management, and exit/termination—is still applicable to open innovation alliances, although the steps and activities within them need to be adapted to different requirements. As with all alliances, understanding and capturing the value propositions and interests of all parties is key to drawing up a successful agreement. In particular, in open innovation alliances with high partner heterogeneity, individual partners will have a different set of goals and interests in addition to their support of the overall alliance vision (e.g., academic institutions’ desire to be published). A major role of Quarter 4, 2012

alliance management is to provide clear guidance to the negotiation teams in how to acknowledge the different partner interests and facilitate a win-win partnership agreement. Furthermore, alliance management, as a champion of the alliance and its open innovation vision, has to ensure that the agreement and the ensuing alliance management operations do not stifle the innovation process.

Figure 2: Models of Multiparty Alliances Traditional: Single research interactions between company and academic institution Pharma

Academia

Multiple research collaborations between company and academic institution Pharma

Academia

In an MRC-like alliance, the initial deal is likely to be negotiOpen Innovation: Single or multiple ated between the company and the collaborations with many institutions academic coordinating body or—in within a standard framework one of the many possible variations of this model—could also involve add Academia itional stakeholders from other partner Academia types (e.g., representatives from larger academic institutions) which would subsequently Academia participate in the open inn Pharma Academia ovation phase of the alliance. The framework of the deal and launch of the alliance will take place prior to receiving proposals Academia Academia from the participating academic institutions. Consequently, the deal negotiation and launch phases for these alliances take place in parallel Open innovations with inclusion of with the management phase of the academic coordinating (and funding) body interaction with the coordinating body—and within a Academia Academia common structure mapped by it and the company.

Measures of Success As in any other alliance, the definition Pharma of, and agreement on, success factors is critical for effective management. The number and quality of ideas received, timelines Academia for initiation of research studies, and research milestones are all criteria that help Academia determine the success of the activities conducted between the company and academic coordinating body. As the collaboration is Continued on page 50

Academia

Coordinating Body

Academia

strategic a l l iance maga z ine | special foc u s | B I O P HA R M A

Pharma-University Alliances Are Proving to Be More Than Simply â&#x20AC;&#x153;Academicâ&#x20AC;? By Jon Lavietes

When the Prof Met Big Pharma When we think of universities, visions of ivy-covered walls, partying students, and publish-or-perish professors in ivory towers may come to mind. But the portrait of academia as painted by a biopharmaceutical company, on the other hand, increasingly includes lab coats, research facilities, patient wardsâ&#x20AC;&#x201D;and potential profits to be earned from licensing intellectual property. 46

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strategic alliance magazine | special focus | BIOPHARMA

Strategic Alliance Magazine

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strategic a l l iance maga z ine | special foc u s | B I O P HA R M A Innovation Continued from page 45 likely to continue for a considerable length of time, the progress of the alliance can also be measured by an “alliance health check.” However, this process is less established within academic groups than within the corporate biopharma industry. With lots of different parties to the alliance and a small number of individuals at each institution, participants might be easily identified. Consequently, the health check represents an area for which standardization is likely to be more challenging. Open innovation alliances represent an exciting new chapter for alliance management. In the last decade, the open innovation concept has been adopted by a growing number of companies across different industries. Since open innovation alliances are driven by ideas and a vision for partnerships, rather than a particular alliance, alliance management plays a crucial role early on in defining

the partnership environment, successfully reaching out to potential partners, and developing the alliance process. The quality of ideas, which can be translated into product development, is the ultimate measure of success for any open innovation alliance. The alliance manager is at the forefront of the open innovation initiative, safeguarding the open dynamic of the partnerships through which innovation occurs. n Chris Wilks and Christian Prothmann are directors of external collaboration and projects, respectively, in AstraZeneca’s New Opportunities Innovative Medicines Unit, which focuses on delivering differentiated medicines in new disease areas through scientific collaboration. AstraZeneca is an ASAP Global Member. Chris Wilks has led many clinical development programs over the last 12 years, both internal programs and in partnership with other pharmaceutical companies. During

that time, he developed a keen interest in the potential for broad collaborations with academic groups, working with the U.S. National Cancer Institute and the National Cancer Institute of Canada. He has since led the setup and development of broadranging open innovation collaborations with the UK National Cancer Research Network and Cancer Research UK and is currently leading the alliance with the UK Medical Research Council. Christian Prothmann manages commercial and academic partnering activities, including an alliance with NIH’s National Center for Advancing Translational Sciences. He is particularly interested in building research environments and alliances that stimulate an open flow of ideas and innovation. Prior to joining AstraZeneca, Christian supervised research and commercial alliances at Nycomed and ALTANA Pharma and was one of the founding directors of the ALTANA Research Institute in Waltham, Mass.

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Strategic Alliance Magazine

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CEO Forum Continued from page 35 deep relationships with a diverse range of partners including universities, technology parks, innovation and entrepreneurship ecosystems, and NGOs. We take a wider view of our ecosystem, and then establish local and global partnerships to serve this aim. We contribute to Turkey’s important innovation platforms and organizations. however, we also closely monitor developments in the global innovation hubs beyond Turkey such as Silicon Valley, Boston, and Singapore. It is important to have a global vision for innovation. SAM: Strategic alliances and open source communities are both advanced forms of business collaboration. What are the parallels between strategic alliance strategy and open source strategy? What challenges are unique to running business collaboration in the open source community? Ciliv: Turkcell has launched its partner portal, turkcellpartner.com, in 2009, to provide easy and open access for new partnership applications through the Web, and we are the first to disclose and advertise partners in the ecosystem. Similar to the linkedIn model, even the individual members of the portal can showcase their abilities to the ecosystem by creating their own profile pages. We first strive to enable partners operating in different areas to get to know each other better and create synergy with each other. We value 54

this networking ability highly as it is important for social responsibility and open innovation. On the other hand, we help our partners to gain a better position with their customers by listing and accrediting them under Turkcell’s brand. To support their corporate communication we offer them our social networking capabilities such as blogging, messaging, and follower lists. This creates a hub that helps our business partners grow their business network and offer their product services. By keeping individual members in our spectrum we aim to encourage new start-up entrepreneurs and create a well-qualified human resources pool that is accessible to our partners. By constantly measuring the ecosystem’s end-to-end dynamics, we also generate valuable data and information that support our partners’ sustainable development. This information and data help us refine the training, assistance, and development packages that we offer our partners. The open source community is becoming more and more important for us in terms of innovative business development, as it is indeed in the whole world. We are trying to develop new business models and methods that meet this community’s expectations. To let this community develop new services, products, and applications by using our capabilities, we continually revise our business culture and

infrastructure/platform investments. Some of our earliest strategies and platforms for our Telco 2.0 marketing vision have been in practice for years now. Our ecosystem implements new applications based on our capabilities that enrich the customer experience. One challenge we have is getting partners to liberally coexist in an ecosystem and provide them with a constructive environment for mutual benefit. Within the Turkcell Partner Program, the events management initiatives include social media and usergenerated content facilities within the portal, networking events, and joint workshops—all of which help partners collaborate, rather than compete. A second challenge is to approach the partner as a bidirectional counterpart. Our senior partner relationship teams have a decade of experience balancing the need to motivate the partner base to be commercially successful with the need to set appropriate boundaries for complying with regulations and customer satisfaction. We are also honored by being awarded and acknowledged by ASAP for these activities, which is a great motivation for us to validate our goal of making our business better for our partners and customers alike. n

Strategic Alliance Magazine

The 2012 ASAP BioPharma Conference is Coming to The Boston Area November15-16 The Charles Hotel, Cambridge, Mass.USA

Biopharma’s top alliance management thought leaders and companies will attend. Shouldn’t you join them? The ASAP BioPharma Conference gathers more prominent executives and companies associated with the development and management of biopharma alliances than any other event. It offers the most in-depth training in the “how-to” of alliance management – actionable insights, practical tools, and hands-on skill building. It is the place to do business and reconnect with your current allies, or to find your new partner, employee, or potential employer. No other conference can match the ASAP BioPharma Conference’s plethora of industryoriented professional development and networking opportunities. How can you aﬀord not to be there? Come join us at the ASAP BioPharma Conference, where we will explore the profession’s most pressing themes, including:

+ Creating a culture of alliance excellence + New frontiers: service alliances (e.g. CMOs, CROs) + Creating an eﬀective alliance management dialogue with your CEO + Implementing a consistent partner experience + Alliances for biosimilars and open innovation + Partnering internally with key support personnel Of course, the ASAP BioPharma Conference will still deliver the core alliance management tools, processes, people-skill training, and general knowledge that are ASAP event hallmarks. This is the premier event for alliance management professionals and all those who are responsible for the biopharmaceutical industry’s increasingly collaborative relationships. The industry’s top alliance management thought leaders and companies will be there. Shouldn’t you? Register today. Register for the event now at http://www.cvent.com/d/mcqpgft

Follow the 2012 ASAP BioPharma Conference on: facebook.com/ asapbiopharma#asapbio2012 ASAP BioPharma Conferences

The Charles Hotel

The Benefits of ASAP Membership and Chapter Participation Stay Local, Partner Global. ASAPâ&#x20AC;&#x2122;s local Chapters in multiple regions on four continents convene alliance professionals for tailored programming. Our continually growing community of Chapters provides a mix of content and networking opportunities. By joining ASAP and then attending Chapter events, you will be able to build your professional network, discover best practices, hear from experts, and create new connections. It is easy to see why Chapters are great places to build a collaboration network â&#x20AC;&#x201C; you can take advantage of this rich environment to create local offerings for our growing alliance management community. Being active in an ASAP Chapter as a company or as an individual will show your commitment to your alliances and your professional development. ASAP Global and Corporate members including Xerox, Dell, IBM, Quintiles, Sanofi-Aventis, Schneider Electric, AstraZeneca, The Rhythm of Business, Vantage Partners, SAS, Cisco, GSK, Nationwide, Verizon, PwC, and many more are active participants in ASAP Chapters.

Join Today! Learn more about ASAP and the benefits of participating in an ASAP Chapter, and how you can enhance your alliance management performance as an individual or corporate member. For the current Chapter list, go to strategic-alliances.org/chapters. See our home page for upcoming Chapter events. For additional information on ASAP Membership including Chapter benefits, access, and resources please contact Lori Gold, senior manager of membership services, at lgold@strategic-alliances.org or +1-781-562-1630. 56

960 Turnpike St, Canton MA 02021 USA Tel: +1-781-562-1630 strategic-alliances.org info@strategic-alliances.org

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Solutions Marketplace

Selected Products and Services for and from Strategic Alliance Professionals Alliance Development International Matches Alliance Management Talent with Job Openings Alliance Development International is the only global talent search firm dedicated to the recruitment of professionals experienced in the discipline of alliance management and business collaboration. A team of senior, highly experienced associates with a global network of connections helps clients across a broad range of industries to select and attract the right talent for their organizational needs by providing candidate profile development, recruiting, screening, and placement of job candidates into job openings. With a dearth of executive search firms familiar with the particular needs of alliance management positions, Alliance Development International seeks to fill a gap in the talent recruitment industry by employing associates from the alliance management profession to conduct talent searches. The firm’s associates have worked on high-level strategic alliances and know the job requirements and critical skill sets necessary in helping partnerships thrive. They continue to be actively engaged within their own profession, maintaining a close watch on important management trends in international markets. For more information, please contact +1 919-342-3779 or info@adiconx.com. Quarter 4, 2012

7ContinentsCollaboration Serves as Fill-In to Augment Alliance Staff

in negotiating the deal are still largely managing the alliance’s day-to-day operations

7ContinentsCollaboration’s Interim Alliance Management services help organizations fill gaps in the capabilities or sheer number of staff in an organization’s alliance management function. These services are recommended for situations where:

Brooke Paige, CSAP, founder of 7ContinentsCollaboration, has worked in the biopharmaceutical industry for more than 20 years and has managed or participated in approximately 30 commercial or development alliances. For further details, contact +1 617-595-6936 or email to brooke@7continentscollaboration.com.

n A significant portion of a company’s revenues or future business will be tied to alliance work n An organization has suddenly entered into an alliance, and has not yet had time to appoint a leader of the alliance team n The organization does not have an alliance management department or a staff of full-time alliance management professionals n Senior executives who were involved

To be part of Solutions Marketplace, e-mail jlavietes@asapmedia.org, call +1 781-562-1630, or write to Association of Strategic Alliance Professionals, 960 Turnpike Street, Canton, MA 02021 USA.

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People and Tools

How Can We Make Wise Choices About Technology for Collaboration and Alliance Management? A Sneak Preview of Our Forthcoming Special Report By John DeWitt

CAROL ROZWELL hAS SEEN hER ShARE Of TEChNOlOGy adoption missteps as a vice president working on the content, collaboration, and social team at industry analyst firm Gartner. her words to the wise? “Don’t think about the technology.” In recent years, she has gotten so many inquiries from clients bubbling over with enthusiasm about a new social technology that she put together a presentation on why social projects rewrite the rules of project management. “here’s the deal,” said Rozwell, a veteran of emerging technology adoption cycles. “They buy the stuff, put it in, there’s a flurry of interest, then nobody uses the tool again.” Too many companies leap before looking thoroughly at a social technology’s actual business value and usability for their organization and people, she explained. “That’s the issue—they focused on the technology.”

“Social tools generally are much more ﬂexible than we’ve been used to—they are context aware. What I mean is they are becoming increasingly mindful of the environment in which any worker is working.” But it’s hard not to be dazzled. Everywhere you look, there are cool new technologies for working together collaboratively, as well as more alliance-management-specific systems for managing and supporting partner relationships. Our forthcoming article will examine a cross-section of these compelling technologies—from Smart Technologies’ interactive whiteboards, which are ubiquitous in schools today and making business inroads, to custom partner portals like the one that empowers the Covance-Otsuka alliance, to the partner management system codeveloped with Ericsson that helps European telecom company Turkcell manage a remark58

able ecosystem of more than 200 alliances. Today’s latest content, collaboration, and social technologies clearly have evolved beyond their knowledge management predecessors of a decade ago. “It was all about putting knowledge in a place—let’s build this great repository and everything is going to be there—then people realized that wasn’t the problem,” Rozwell said. Today, “the shift with social software tools is much more about connecting people who know things together, and connecting them at the point of consumption, the point of need.” Taking their cues from the consumer world, where technology adoption is entirely voluntary, “Social tools generally are much more flexible than we’ve been used to—they are context aware,” Rozwell said. “What I mean is they are becoming increasingly mindful of the environment in which any worker is working.” Which brings Rozwell back to her point—it’s not about technology, but about people and what technology tools we can deploy to help us. “how is it making some alliance manager’s life better?” she asked. To find that out, “I advise clients to dig a couple of layers down.” Unfortunately, she said, companies “often lack a baseline of how people are working today—most managers have no idea of how people are spending their time.” you need to know that before you can assess smart technology investments. “If I’m an alliance manager, and am able to complete the deal in half the time, or alert the codevelopment team about a problem before it erupts, then I’m starting to accrue the real value of these tools,” Rozwell continued. “But until you get to that level of specificity, you’re not properly evaluating whether they will work for you or not.” n Strategic Alliance Magazine

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