BSB60420 ADVANCED DIPLOMA
OF LEADERSHIP AND MANAGEMENT
A20053 ALLIANCES
BSBPMG637 Engage in collaborative alliances
STUDENT WORKBOOK
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2020
2
This workbook has been designed for use in conjunction with
information and materials provided at lecture and tutorial
sessions.
Students should attend all timetabled sessions so they can
obtain all subject information. Students should read and
understand all materials provided.
Assessments and any other supplementary material will be
available at myAPC.hub
Publisher:
Young Rabbit Pty Ltd
(A.C.N. 003 381 182) trading as Australian Pacific College
Ground Floor, 189 Kent Street
Sydney NSW 2000
Australia
Tel: (02) 9251 7000
Edition:
1st Edition
Released:
January 2022
The publisher owns the copyright in this
publication. All rights reserved.
No part of this publication may be reproduced
by any process without the prior written
permission of Young Rabbit Pty Ltd.
© 2022 Young Rabbit Pty Ltd
Australian Pacific College
Lower Ground, 189 Kent Street
Kent St Campus (CBD)
Sydney NSW 2000
P (61 2) 9251 7000
F (61 2) 9251 7575
Web: www.apc.edu.au
CRICOS Provider: Young Rabbit Pty Ltd – 01331F
ABN: 28 003 381 182
RTO PROVIDER: 90396
Front cover image sourced from: Pixabay.com
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
3
Contents
Introduction����������������������������������������������������������������������������������������������������������������������������� 5
Elements and Performance Criteria���������������������������������������������������������������������������������������� 6
Foundation Skills��������������������������������������������������������������������������������������������������������������������� 7
Performance Evidence������������������������������������������������������������������������������������������������������������ 8
Knowledge Evidence��������������������������������������������������������������������������������������������������������������� 8
Session Plans��������������������������������������������������������������������������������������������������������������������������� 9
Session 1......................................................................................................................... 9
Session 2....................................................................................................................... 10
Session 3....................................................................................................................... 11
Session 4....................................................................................................................... 12
Session 5....................................................................................................................... 13
Session 6....................................................................................................................... 14
Session 7....................................................................................................................... 15
Session 8....................................................................................................................... 16
Session 9....................................................................................................................... 17
1. Identify opportunities for collaboration and develop collaborative alliances������������������ 19
1.1 Identify and evaluate opportunities for collaborative alliances according to
organisational and program objectives����������������������������������������������������������������������� 19
Activity 1.1.................................................................................................................... 20
1.2 Identify and evaluate potential collaborators according to organisational policies
������������������������������������������������������������������������������������������������������������������������������������� 21
Activity 1.2.................................................................................................................... 21
1.3 Initiate and develop relationships with potential collaborators according to
organisational policies and procedures����������������������������������������������������������������������� 22
Activity 1.3.................................................................................................................... 22
2. Establish collaborative agreements���������������������������������������������������������������������������������� 23
2.1 Initiate, negotiate, agree, and document a collaborative approach with parties
that adhere to organisational policies and relevant legal requirements��������������������� 23
Activity 2.1.................................................................................................................... 24
2.2 Approve and review each formal agreement to ensure the continuation of
envisaged value and to identify the potential need for changes and additions
according to organisational policies and procedures�������������������������������������������������� 25
Activity 2.2.................................................................................................................... 26
2.3 Develop collaboration plans for each agreement to support the implementation
������������������������������������������������������������������������������������������������������������������������������������� 27
Activity 2.3.................................................................................................................... 28
3. Support the evolution of collaborative agreements��������������������������������������������������������� 29
3.1 Monitor and nurture relationships with collaborators������������������������������������������� 29
Activity 2.3.................................................................................................................... 31
3.2 Assess performance of all parties to an agreement against organisational and
program objectives and expected results and address variances������������������������������� 32
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
4
Activity 3.2.................................................................................................................... 34
3.3 Make changes to agreements as required according to organisational policies and
procedures������������������������������������������������������������������������������������������������������������������� 35
Activity 3.3.................................................................................................................... 35
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
5
Introduction
This subject, A20053 Alliances, in the BSB60420 Advanced Diploma of
Leadership and Management, describes the skills and knowledge required to
enable a program manager to engage in collaborative alliances, which includes
identifying opportunities and forging alliances with other organisations to
facilitate the attainment of program benefits.
This is a face-to-face non-block subject with the Lecture and Subject Enhancing Tutorials
(SET) delivered in the classroom or in the Virtual Learning Environment
(VLE). This subject is delivered in 9 sessions over 9 weeks (1 session per
week). Students can find the tutorial details in their timetable.
Students will be able to work on a real case study provided in the subject
or on their own projects under their Individual Learning Plan.
The subject, which delivers the Unit of Competency
BSBPMG637 Engage in collaborative alliances, applies
to individuals who are program managers and those managing a suite of
projects (a program). They operate within assigned authority levels, are
responsible for their own performance, program outcomes, and sometimes
the performance of others.
After successfully completing this subject, students are expected to achieve the
performance criteria outlined in the elements and demonstrate the ability and knowledge
to complete the tasks listed in the performance evidence, knowledge evidence and
foundation skills of this subject. The detailed information about performance criteria,
performance evidence, knowledge evidence and foundation skills of this subject are
available on the following pages.
This subject comprises two Assessments. The following table summarises
the information about each assessment.
APC is using Rubric for assessment marking. A rubric is a tool used to
interpret and grade students’ work against a set of criteria.
Assessment 1
Assessment 2
Due Date
Session 5
Session 8
Weighting
50%
50%
Rubric
Rubric
Grading Method
Submission Method
Students are required to submit their assessments to myAPC.hub.
Feedback
The results will be available within 7 days after the due date of the
assessment.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
6
Elements and Performance
Criteria
Subject: Unit of Competency:
Element
1. Identify
opportunities
for collaboration
and develop
collaborative
alliances
A20053 Alliances
BSBPMG637 Engage in collaborative alliances
Performance Criteria
1.1 Identify and evaluate opportunities for collaborative alliances
according to organisational and program objectives
1.2 Identify and evaluate potential collaborators according to
organisational policies
1.3 Initiate and develop relationships with potential collaborators
according to organisational policies and procedures
2.1 Initiate, negotiate, agree and document a collaborative approach
with parties which adhere to organisational policies and relevant legal
requirements
2. Establish
collaborative
agreements
2.2 Approve and review each formal agreement to ensure continuation
of envisaged value and to identify potential need for changes and
additions according to organisational policies and procedures
2.3 Develop collaboration plans for each agreement to support
implementation
3.1 Monitor and nurture relationships with collaborators
3. Support the
evolution of
collaborative
agreements
3.2 Assess performance of all parties to an agreement against
organisational and program objectives and expected results, and
address variances
3.3 Make changes to agreements as required according to
organisational policies and procedures
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
7
Foundation Skills
This section describes those language, literacy, numeracy and employment skills that are
essential to performance but not explicit in the performance criteria.
Skill
Reading
Writing
Oral Communication
Description
•
Identifies and interprets information from a range of sources
•
Prepares and modifies agreements and plans using appropriate
language and format
•
Participates in verbal exchanges using language and features
appropriate to the audience
Uses active listening and questioning techniques to confirm
understanding
•
•
Teamwork
Planning and
organising
•
•
•
Uses interpersonal skills to negotiate agreements with diverse
stakeholders
Invests time and energy in building and maintaining effective
working relationships
Plans, implements and monitors tasks and activities required to
achieve collaborative alliance goals
Evaluates outcomes to identify improvement opportunities
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
8
Performance Evidence
The candidate must demonstrate the ability to complete the tasks outlined in the elements,
performance criteria and foundation skills of this unit, including evidence of the ability to:
• engage in collaborative alliances on at least one occasion.
In the course of the above, the candidate must:
• employ environment scanning techniques to identify opportunities for collaboration
that are aligned to desired program outcomes
• review of formal agreements
• assess effectiveness of collaborative relationships.
Knowledge Evidence
The candidate must be able to demonstrate knowledge to complete the tasks outlined in
the elements, performance criteria and foundation skills of this unit, including knowledge
of:
• methods to identify and evaluate potential collaborators
• features of methods to maintain and sustain alliances
• negotiating strategies
• types of collaboration agreements
• features of relevant organisational policies and procedures
• program and organisational objectives
• strategies to review collaborative agreements in relation to program objectives.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
Session Plans
9
SESSION 1
Identify opportunities for collaborative alliances
Time
1st
Half
Element
N/A
Performance
Criteria
N/A
Topics
•
•
•
•
•
•
Understand the subject outline,
tutorials, and assessment
methodology and due dates
Understand the learner’s
relationship to the course overall
and this specific subject
Understand the concept of
Individual Learning Plans (ILP)
Understand how to make the best
use of the student care, teachers
and peers
Lesson schedule
Australian Pacific College policies
– Attendance, break, VLE if
applicable, myAPC.hub, etc.
Delivery
Methods and
Learning Tools
Face-to-face
and/or VLE
First Session
Checklist
BREAK
2nd
Half
1. Identify
opportunities
for
collaboration
and develop
collaborative
alliances
1.1 Identify
and evaluate
opportunities
for collaborative
alliances according
to organisational
and program
objectives
•
•
•
•
Collaborative alliances
Types of collaborative alliances
Examples of collaborative alliances
Benefits of collaborative alliance
Face-to-face
and/or VLE
Student
workbook:
Section: 1.1
Activity:
Practical
questions at the
end of topic
Session 1
resources at
myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• identify opportunities for collaborative alliances,
• understand the benefits of collaborative alliances.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
10
SESSION 2
Identify and evaluate potential collaborators
Time
1st
Half
Element
1. Identify
opportunities
for
collaboration
and develop
collaborative
alliances
Performance
Criteria
1.2 Identify
and evaluate
potential
collaborators
according to
organisational
policies
Topics
•
Potential
collaborators
Delivery Methods and
Learning Tools
Face-to-face and/or
VLE
Student workbook:
Section: 1.2
Activity: Practical
questions at the end of
topic
Session 2 resources at
myAPC.hub
BREAK
2nd
Half
1. Identify
opportunities
for
collaboration
and develop
collaborative
alliances
1.2 Identify
and evaluate
potential
collaborators
according to
organisational
policies
•
Identify
opportunities for
collaboration and
develop alliances
according to
organisational
policies and
procedures
Face-to-face and/or
VLE
Student workbook:
Section: 1.2
Activity: Practical
questions at the end of
topic
Session 2 resources at
myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• identify potential collaborators,
• evaluate potential collaborators according to organisational policies.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
11
SESSION 3
Develop relationships with potential collaborators
Time
1st
Half
Element
1. Identify
opportunities
for
collaboration
and develop
collaborative
alliances
Performance
Criteria
1.3 Initiate
and develop
relationships
with potential
collaborators
according to
organisational
policies and
procedures
Topics
•
Delivery Methods
and Learning
Tools
Identify and determine Face-to-face and/
tasks for collaborative or VLE
works
Student workbook:
Section: 1.3
Activity: Practical
questions at the
end of topic
Session 3 resources
at myAPC.hub
BREAK
2nd
Half
1. Identify
opportunities
for
collaboration
and develop
collaborative
alliances
1.3 Initiate
and develop
relationships
with potential
collaborators
according to
organisational
policies and
procedures
•
•
Initiate relationships
with potential
collaborators
according to
organisational policies
and procedures
Share information and
knowledge to develop
relationships with
potential collaborators
Face-to-face and/
or VLE
Student workbook:
Section: 1.3
Activity: Practical
questions at the
end of topic
Session 3 resources
at myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• identify collaborative tasks,
• improve relationships with potential collaborators,
• understand the importance of sharing information and knowledge.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
12
SESSION 4
Develop a draft for collaborative agreements
Time
1st
Half
Element
2. Establish
collaborative
agreements
Performance
Criteria
2.1 Initiate,
negotiate,
agree, and
document a
collaborative
approach with
parties that
adhere to
organisational
policies and
relevant legal
requirements
Topics
•
•
Draft an agreement
through a collaborative
approach with the
parties
Negotiate the
agreement between the
partner companies
Delivery Methods
and Learning Tools
Face-to-face and/or
VLE
Student workbook:
Section: 2.1
Activity: Practical
questions at the end
of topic
Session 4 resources
at myAPC.hub
BREAK
2nd
Half
2. Establish
collaborative
agreements
2.2 Approve
and review
each formal
agreement
to ensure the
continuation
of envisaged
value and to
identify the
potential need
for changes
and additions
according to
organisational
policies and
procedures
•
•
Approve the agreement
Identify needs for
changes and additions
Face-to-face and/or
VLE
Student workbook:
Section: 2.2
Activity: Practical
questions at the end
of topic
Session 4 resources
at myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• develop a draft for the collaborative agreement,
• negotiate the draft for the collaborative agreement,
• identify needs for changes and additions to the collaborative agreement.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
13
SESSION 5
Plan collaborative works
Time
1st
Half
Element
2. Establish
collaborative
agreements
Performance
Criteria
2.3 Develop
collaboration
plans for each
agreement to
support the
implementation
Topics
•
•
Develop appropriate
plans to support the
implementation
Training and support
for collaborative
activities
Delivery Methods
and Learning Tools
Face-to-face and/or
VLE
Student workbook:
Section: 2.3
Activity: Practical
questions at the end
of topic
Session 5 resources at
myAPC.hub
BREAK
2nd
Half
2. Establish
collaborative
agreements
2.3 Develop
collaboration
plans for each
agreement to
support the
implementation
•
Identifying business
resources to support
the implementation
of collaborative
agreements
Face-to-face and/or
VLE
Student workbook:
Section: 2.3
Activity: Practical
questions at the end
of topic
Session 5 resources at
myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• identify business resources for collaborative works,
• develop collaboration plans,
• design training for collaborative alliances.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
14
SESSION 6
Monitor and nurture relationships with collaborators
Time
1st
Half
Element
3. Support
the
evolution of
collaborative
agreements
Performance
Criteria
3.1 Monitor
and nurture
relationships
with
collaborators
Topics
•
•
Improve relationships
with the collaborators
Monitor and nurture
relationships with the
collaborators
Delivery Methods
and Learning Tools
Face-to-face and/or
VLE
Student workbook:
Section: 3.1
Activity: Practical
questions at the end of
topic
Session 6 resources at
myAPC.hub
BREAK
2nd
Half
3. Support
the
evolution of
collaborative
agreements
3.1 Monitor
and nurture
relationships
with
collaborators
•
•
•
Respectful attitudes
and communications
toward the
collaborators
The negative
influences of poor
communication on
the relationships with
collaborators
Barriers of successful
collaborative alliances
Face-to-face and/or
VLE
Student workbook:
Section: 3.1
Activity: Practical
questions at the end of
topic
Session 6 resources at
myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• monitor and nurture relationships with the collaborators,
• conduct respectful attitudes and communication toward the collaborators.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
15
SESSION 7
Assess performance of all parties to an agreement
Time
1st
Half
Element
Performance Criteria
3. Support
the
evolution of
collaborative
agreements
3.2 Assess
performance of
all parties to an
agreement against
organisational and
program objectives
and expected results
and address variances
Topics
•
•
•
Performance
Analysis
Data for
performance
analysis
Decision-making
approach
Delivery
Methods and
Learning Tools
Face-to-face and/
or VLE
Student
workbook:
Section: 3.2
Activity: Practical
questions at the
end of topic
Session 7
resources at
myAPC.hub
BREAK
2nd
Half
3. Support
the
evolution of
collaborative
agreements
3.2 Assess
performance of
all parties to an
agreement against
organisational and
program objectives
and expected results
and address variances
•
•
Key Performance
Indicators (KPIs) &
organisational goals
Identify expected
variances and
barriers to achieve
expected outcomes
Face-to-face and/
or VLE
Student
workbook:
Section: 3.2
Activity: Practical
questions at the
end of topic
Session 7
resources at
myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• analyse performance for collaborative alliances,
• design appropriate key performance index for collaborative works.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
16
SESSION 8
Support for collaborative agreements
Time
1st
Half
Element
3. Support
the
evolution of
collaborative
agreements
Performance
Criteria
Topics
3.3 Make changes •
to agreements as
required according
to organisational
policies and
procedures
Recommend
changes to the
agreements
Delivery Methods
and Learning Tools
Face-to-face and/or
VLE
Student workbook:
Section: 3.3
Activity: Practical
questions at the end of
topic
Session 8 resources at
myAPC.hub
BREAK
2nd
Half
3. Support
the
evolution of
collaborative
agreements
3.3 Make changes •
to agreements as
required according
to organisational
policies and
procedures
Support the
evaluation of
collaborative
agreements
according to
organisational
policies and
procedures
Face-to-face and/or
VLE
Student workbook:
Section: 3.3
Activity: Practical
questions at the end of
topic
Session 8 resources at
myAPC.hub
Learning Outcomes
At the end of this session, students will be able to:
• identify recommendations to the agreement,
• make changes to the agreement.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
17
SESSION 9
Review and Reassessment
Time
1st
Half
Element
N/A
Performance
Criteria
N/A
Topics
•
Review the subject materials
and topics constructively]
Delivery
Methods and
Learning Tools
Face-to-face
and/or VLE
BREAK
2nd
Half
N/A
N/A
•
•
Feedback
Reassessment, if relevant
Face-to-face
and/or VLE
Learning Outcomes
At the end of this session, students will be able to:
• review all the topics and activities throughout the subject,
• have questions in accordance with the assessments
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
18
Intentionally left blank to separate the detailed contents of the workbook
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
Young Rabbit Pty Ltd (ABN 28 003 381 182) trading as Australian Pacific College RTO Code: 90396 | CRICOS Provider Code: 01331F | © 2022
19
1. Identify opportunities for
collaboration and develop
collaborative alliances
1.1 Identify and evaluate opportunities for
collaborative alliances according to organisational
and program objectives
Collaborative Alliances (Strategic alliances)
Collaborative alliances, also known as strategic alliances, are agreements between two
or more businesses to cooperate in business operations such as manufacturing, product
development, or sales of the products and services, etc.
For example, you have an online shopping site, and all sales are made online, and goods
are sent through delivery companies. If you have a collaborative business relationship
with a delivery company, you may expect to save delivery costs and improve services that
make your customers satisfied. Moreover, you can expect more sales and can expand your
business too.
Types of Collaborative Alliances
Collaborative alliances are very different from mergers and acquisitions (M&A). Mergers
and acquisitions mean two different companies become one bigger company that will
have better business resources such as human, financial, and physical resources, while
collaborative alliances mean two or more independent companies become strategic
partners and share each company’s strengths and compensate for their defects in
manufacturing, cost-savings, sales, etc.
There are three types of collaborative alliances. They are:
• Joint venture,
• Equity Strategic Alliance,
• Non-equity Strategic Alliance.
Joint ventures are usually formed by two companies through complementary strengths.
This type of collaborative alliance allows the companies to share or use their resources and
expertise to achieve a particular goal. Moreover, this type of collaborative alliance (joint
venture) shares the risks and rewards of the business operations.
Equity Strategic Alliances occur when one company purchases parts of another company’s
equities (partial acquisition), or each business purchases their equities from each other
(Cross equity transactions). A good example of an equity strategic alliance is Tesla, which
is an American electric vehicle and clean energy company. The company has a good
relationship with its battery suppliers because Tesla buys their shares to strengthen the
supply chain of the battery.
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
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Non-Equity Strategic Alliances occur when companies create an agreement to share their
business resources, without creating a separate entity or sharing equity, and to improve
their products and services.
Examples of Collaborative Alliances
The following companies agreed to collaborative alliances to improve their brand power,
products and services, sales, and value of the companies.
• Apple pay and Mastercard
• Red Bull and GoPro
• Microsoft and General Electric
• McDonald’s and Coca-Cola
• Woolworths and Caltex
• Fiat Chrysler and Google
Benefits of Collaborative Alliances
Since the internet was introduced, the competition has become fiercer each day. Every
company must develop new products and services to improve better customer service,
increase their market shares, and grow in the market. Therefore, many companies become
collaborative alliances due to the following reasons:
• Share business resources.
• Increase the market share.
• Improve the brand values.
• Reduce operating costs.
• Improve efficiency in manufacturing.
• Create a synergy effect.
• Reach a broader audience without extra time and resources.
Activity 1.1
1
2
What are collaborative alliances?
Research strategic alliance in the airline industry. List three major strategic
alliances and the benefits of the strategic alliance.
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1.2 Identify and evaluate potential collaborators
according to organisational policies
Which business can be collaborators?
As discussed in the previous section, collaborative alliances must have their goals and
objectives, such as improving market shares, products, and services, market shares, brand
images, etc. Collaborative alliances have a synergy effect. For example, McDonald’s uses
Coca-Cola products in their product ranges which boost up their sales. Therefore, when
McDonald’s sales are increased, Coca-Cola sales are also increased, which leads to a winwin strategy.
To identify potential collaborators for a business, you will need to identify how the business
can improve its sales, products, and services, or reduce the business resources, etc.
Therefore, the following must be considered for potential collaborators:
• Possible goals and objectives for collaborative operations.
• Market reputation of the partner business.
• Financial positions of the partner business.
• Production capacity of the partner business.
Organisational policies and procedures
Developing appropriate organisational policy and procedure for collaborative alliances
is important because an agreement for collaborative alliances may bring competitive
advantages to the partners; however, it may become a disaster for them as well.
Therefore, to evaluate potential collaborators properly, appropriate organisational policy
and procedure are important.
For example, a potential collaborator should be evaluated by the following criteria:
• Availability of business resources (HR, FR, Physical resource),
• Skilled level of human resources,
• Current market position,
• Production capacity,
• Market position and share.
Activity 1.2
What are collaborative alliances?
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1.3 Initiate and develop relationships
with potential collaborators according to
organisational policies and procedures
Identify and determine tasks for collaborative works
For successful collaboration, the partner companies must have strong trust and rapport
with each other through:
• creating a shared vision for the collaboration,
• establishing strategies to support the collaboration,
• specifying joint goals, objectives, values,
• investing in equipment, tools, processes, and systems.
Collaboration is not easy as each company considers too many factors, and sometimes
collaboration becomes a failed operation due to lack of support, lack of cooperation, or
conflicts between the partners.
How to improve relationships with potential collaborators
To improve relationships with potential collaborators, you will need to consider the
following factors and demonstrate how you are willing to commit to collaboration. It
includes:
• establishing appropriate communication channels with the partner companies,
• performing and maintaining regular communication with the partner companies
• updating changes in collaboration,
• initiating joint operations with the partner companies.
Share information and knowledge
As discussed, it is important to share information and knowledge to create business
value and improve the relationship with the partner business. Sharing information makes
team members in your business and partner companies improve relationships and work
effectively and efficiently within a team.
Moreover, sharing information and knowledge between partner companies allows
supporting strategic decision-making by the global business environment.
Activity 1.3
Explain how to improve relationships with potential collaborators.
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2. Establish collaborative
agreements
2.1 Initiate, negotiate, agree, and document a
collaborative approach with parties that adhere
to organisational policies and relevant legal
requirements
Draft an agreement through a collaborative approach with the parties
Once you have identified potential collaborators and initiated a relationship with them, the
next step is to draft an agreement between the parties, including the terms and clauses
related to the responsibilities and obligations. A collaboration agreement is a legally
binding agreement between the businesses that want to work collaboratively and sets out
how they will work together, share information and knowledge, define tasks, share profits
between the parties.
It is ideal for developing a draft through a combined team by the partner companies. The
team should discuss the following before drafting an agreement:
• Business share,
• Availability of the business resources,
• Joint business operations,
• Marketing plans,
• Required resources, technologies, budgets, human resources,
• Training plans,
• Brand name and corporate image, if required.
• Capital contribution,
• Withdrawal of capital,
• Withdrawal of partnership.
Negotiate the agreement between the partner companies
Once the draft is ready, you will need to review the draft carefully as it contains sensitive
and confidential business information such as special recipes, manufacturing processes,
etc. In addition, once the agreement is finalised and signed by the partner companies, it
becomes legally binding. Therefore, the draft must be reviewed to check if the agreement
contains all information as negotiated and if all the terms and clauses are fair.
In the agreement, the parties describe the collaboration, including its title, purpose, and
description. They will also outline their respective responsibilities and obligations related to
the collaboration and decide on how to share profits from the project.
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Collaborative agreement
A collaborative or partnership agreement should contain the following basic information,
including:
• the execution date of the agreement,
• the name of the parties (including ABN and business address) who wish to associate
themselves as partners in business,
• key terms and conditions that govern the partners within the partnership,
• formation of the partnership, including the firm name of the partnership,
• the purpose of the partnership,
• the commencement date of the partnership,
• the place of business,
• initial capital contributions from each partner, including the contribution description
and agreed value (in cash or property or in non-monetary contributions in agreed-upon
value),
• the agreed date of initial capital contributions,
• additional capital contributions,
• withdrawal of capital,
• capital amounts and interest on capital,
• financial decisions regarding the distribution of profits, allocation of losses, and the
requirement for additional capital contributions,
• bookkeeping requirements,
• annual report requirements including the presentation of a full and complete account of
the condition of the partnership,
• banking and partnership funds,
• a clear description of the financial year in Australia,
• audit requirements,
• description of day-to-day management takes
• the duties of managing partners,
• contract binding authority,
• any compliance requirements, including taxation
• regular meetings schedule,
• terms and conditions related to admitting a new partner,
• terms and conditions related to voluntary or involuntary withdrawal of a partner,
• terms and conditions related to the dissociation of a partner,
• terms and conditions related to the dissolution of the partnership, including the
distribution of property,
• valuation of interest and goodwill,
• voting,
• insurance,
• terms and conditions related to the amendments of the agreement.
Activity 2.1
Explain why it is necessary to draft an agreement for collaborative alliances.
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2.2 Approve and review each formal agreement
to ensure the continuation of envisaged value
and to identify the potential need for changes
and additions according to organisational policies
and procedures
Approve the agreement
Once the draft has been reviewed, the partner companies need to meet and approve the
draft to see if:
• the goals and objectives are agreeable,
• the intended business operations are correctly addressed,
• the resources required for the business operations are accurately addressed,
• the preparation processes are correctly addressed,
• the terms and conditions on withdrawal of capitals are successfully mentioned,
• the model of collaboration can increase the continuation of joint operations and the
business values,
• the financial decisions, such as capital contribution, profit sharing, and loss allocation,
are correctly stated,
• the terms and conditions on the dissolution of the partnership are included.
Once the detailed factors of the agreement are all confirmed, the partner companies must
approve and sign off the agreement to commence the collaborative alliance and initiate
the collaborative tasks.
Identify needs for changes and additions
The collaborative or partnership agreement establishes the structure of the business
relationships and details the responsibilities and obligations of each partner. The
agreement can be amended at any time with the unanimous consent of all partners due to
the following reasons:
• Changes in the business environment.
• Changes in legislation and regulations.
• Unexpected incidents and events.
• New technology or platform introduced.
Companies bounded by the collaborative agreement expect the following benefits:
• Share of business resources,
• Increase in the market share,
• Improvement of the brand values,
• Reduction in operating costs,
• Improvement of efficiency in manufacturing,
• The attraction of a broader audience without extra time and resources.
What if the business environment has changed? What if the delivery system is changed?
What if the products or services are not available due to government regulations? As
explained above, companies choose collaborative alliances because they can generate
more sales and profits with the shared resources; however, if a partner’s role must change
or is no longer needed, the agreement should be changed or equipped with additional
clauses.
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Assume that your company manufactures electric cars, and the collaborator provides
batteries for the electric cars. However, due to newly announced regulations, the
collaborator cannot produce the batteries anymore because of environmental issues. Then,
the partners’ roles in the agreement should be changed, and they must find out another
way to produce the batteries or replacements, which must be added to the agreement.
Activity 2.2
Why should an agreement for collaborative alliances be changed and modified on a
regular basis?
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2.3 Develop collaboration plans for each
agreement to support the implementation
Develop appropriate plans to support the implementation
After the approval of the collaborative agreement, the partner companies must plan for
implementation.
The following factors need to be identified before developing the implementation plan:
• intended business operations,
• required business resources such as human resources, financial resources, and physical
resources,
• expected conflicts and barriers in the collaboration activities,
• the organisational policies and procedures for the collaboration activities,
• training methods and its evaluation,
• the expected outcomes.
Once the factors above are identified, the collaborators are now able to develop
implementation plans. When the collaborators plan for implementation, they will need to
clarify each partner’s role, who will be sent to the collaboration activities, how the resources
will be supported, contingency plans, conflict resolution plans, etc.
As collaborative alliances are a set of the business partners’ cooperation, each process for
the products and services, sales process, procurements of the business resources must be
planned.
Once each plan is initiated, the collaborators must monitor and review how the plan is
implemented and proceed as it is the key to success for collaborative alliances.
Training and Support for collaborative activities
The collaborators (business partners) have different organisational cultures, values,
and standards. The ways to operate the business activities and communication are
very different. Therefore, to overcome the expected barriers and conflicts in business
operations and communication, appropriate organisational policies and procedures must
be developed. Moreover, the team members (employees) will work in different work
environments, and they will need appropriate training on an ongoing basis. The following
training is recommended for collaborative activities:
• Job rotation.
• Case study and role play.
• On-the-job training.
• Programmed instruction.
• Collaboration course.
• Pair or group discussions and activities.
• Information exchange activities.
Identifying business resources
The business resources are directly related to the business operations. They are the
foundation of an organisation’s performance. The effective and efficient use of the business
resources help conduct the business activities in the best way and generate the maximum
benefits for the business. Therefore, you must carefully approach and analyse the business
operations when identifying the business resources. It is always best to determine what the
resources for a business are and which your business will require.
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The resources you need to operate a business can be broken into financial resources,
human resources and physical resources.
For example, when you plan to conduct training for your employees, the required
resources may include, but are not limited to:
• trainer,
• training resources such as books and training materials,
• venue,
• computer, screen, projector, smartboard,
• budget.
Therefore, you can identify the business resources for the training as follows.
Resources
Requirements for the training
Human resource
Trainer, Trainees (employees)
Financial resource
Funds for training such as payment for trainer and trainees,
purchasing costs for equipment, venue rental costs, etc
Physical resource
Books, training equipment, computer, screen, beam projector, etc
Activity 2.3
Describe why training and support are needed for collaborative alliances.
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3. Support the evolution of
collaborative agreements
3.1 Monitor and nurture relationships with
collaborators
How to improve relationships with the collaborators
Collaborative alliances promote an increased level of trust, a more engaged workforce and
improve performance. The following strategies can help you improve the relationships with
the collaborators:
• Practice active listening.
• Use appropriate communication channels and methods.
• Develop and communicate appropriate goals and objectives.
• Establish appropriate policies and procedures for the collaboration works.
• Communicate your expectation for collaboration.
• Foster open communication.
• Encourage creativity and innovation.
• Share knowledge and resources.
• Recognise, reward, and celebrate the collaborative behaviour of the team members.
Monitor and nurture relationships with the collaborators
Even though you try to keep improving a relationship with the collaborator, you should
monitor and nurture relationships with the collaborators.
In the first place, all tasks in collaborative tasks are connected, and prioritising tasks has
become one of the success factors in collaborative alliances.
Therefore, to complete collaborative tasks effectively and efficiently, the following
conditions must come first.
• All team members must clearly understand the scope of their work.
• All team members must clearly understand the task list and its priority.
• All team members must clearly understand potential and existing risks through
brainstorming in a team meeting.
• All team members must be able to share ideas and information to complete all tasks.
• All team members must understand their goals and objectives.
• All team members must have the right tasks by their strengths and abilities.
Respectful attitudes and communications toward the collaborator
For successful collaborative alliances, you must understand that all tasks are done by the
team members, not by only your company. Therefore, one of your responsibilities is to
maximise team performance, and this can be achieved by collaboration and a combination
of each team member’s strengths from both companies under collaboration and alliances.
That is why the collaborators must have strategies to complete tasks as teamwork.
The following strategies are commonly used to complete tasks efficiently.
• Schedule team meetings regularly: Through team meetings, employees will be able to
understand their duties and responsibilities and prioritise the tasks that must be done
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•
•
•
by the required deadline. The regular team meetings also allow the employees to share
their ideas with each other.
Know your team members’ strengths: Your team is powered by different people with
different backgrounds and skills. In order to ensure effectiveness and efficiency, the
tasks need to be allocated to the team members by their skills and strengths. It is
important to assign the tasks to the right people with the right skills.
Active listening: As the leader, you must be open to listening to team members and be
flexible, adaptable for their tasks within organisational scope, policies, and procedures.
Offer positivity and rewards: Positive competition among team members will bring high
quality of work, and team members will have ownership over their tasks.
Due to the latest technologies and effective outsourcing, companies have various options
to work in a collaborative and innovative way and increase productivity and business
growth. They aim to reach the lowest costs in producing goods and services and fully
leverage their employees’ potential talents and skills in their tasks.
Therefore, for successful collaborative alliances, you should respect the partner business,
and the collaborative alliances should know their goals and objectives clearly.
Collaboration and alliances are essential to complete tasks successfully. The team members
and collaborators will be able to communicate effectively and are ready to share ideas and
information for the tasks or projects.
When all team members for collaborative works become open-minded and are willing to
appeal their ideas and information, team communication will be more productive, and the
work process can be streamlined.
Successful alliances always have specific strategies for collaboration, including:
1. communicating expectations for collaboration,
2. sharing the company’s goals and objectives repeatedly,
3. organising individual tasks,
4. establishing realistic team’s objectives,
5. meeting to understand the different working styles,
6. initiating physical activities to build rapport between the partner businesses,
7. promoting a working environment and celebrating teams’ success,
8. encouraging creativity and rewarding innovation.
Importance of communication in alliances
Communication is one of the key success factors in alliances, partnerships, and
collaboration. It is the cornerstone of any relationship. It helps to establish and maintain
the bonds between the partners. The partner businesses can understand each other by
truly listening, and a solid relationship will be established and maintained when they
communicate clearly and validate the understanding of the message.
Good communication will build trust, strengthen relationships, and create transparency in
the alliance relationship.
The following situations can destroy trust in the alliance relationship:
• bad communication.
• lack of proper planning and implementation.
• poor listening skills.
• unwillingness to share the information and resources.
• unfair treatment.
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Activity 2.3
What is required to nurture relationships with the collaborator?
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3.2 Assess performance of all parties to an
agreement against organisational and program
objectives and expected results and address
variances
Performance Analysis
For successful collaborative alliances, you will need to conduct a performance analysis.
This is very important because responses from the market may be different from our
expectations.
Therefore, performance data, such as sales volume, efficiency in marketing activities,
efficiency in human resources, inventory costs, staff turnover and absenteeism, need to
be collected and analysed. In order to identify the performance gaps, variance analysis is
needed to check whether the actual outcomes meet the planned objective or targeted
figures.
Once you successfully collect the performance data and analyse the data, you will have
to review performance indicators (standards) and determine whether the performance
indicators were planned appropriately. It often happens, especially when penetrating
another market or launching a new product. The necessary adjustments are needed to
make sure the expected performance or target is realistic and achievable.
Data for performance analysis
•
•
•
•
•
•
Sales volume
Supply costs (Costs of Goods Sold)
Inventory turnover
Customer satisfaction
Efficiency in marketing activities
Efficiency in human resource
The following steps must be followed before establishing the performance evaluation
process:
1. Develop an evaluation form.
2. Identify performance measures.
3. Set a guideline for feedback.
4. Create disciplinary and termination procedures.
5. Set an evaluation schedule.
6. Set action plans.
Decision-making approach
The success of collaborative alliances depends on accurate and consistent reporting
and evaluation of business metrics such as total sales, Costs of Goods Sold, profitability
analysis, asset turnover ratio, inventory turnover ratio, etc.
Regardless of a company’s size or specific goals, there are common areas that should be
analysed in order to determine whether a team (company) shows good performance:
• Financial outcomes.
• Marketing outcomes.
• Employee Performance and satisfaction.
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For financial metrics, you must be able to interpret the ratios as the calculations can be
done in a computerised system. The following metrics are commonly used to analyse
financial performance:
• Gross Profit Margin Ratio.
• Net Profit Margin Ratio.
• Return on Assets.
• Return on Equity.
• Asset Turnover Ratio.
• Inventory Turnover Ratio.
For marketing performance metrics, you must be able to create relevant ratios to analyse.
The commonly used metrics in marketing performance are as follows:
• Return on Advertising Spend.
• Customer acquisition/retention costs.
• The response rate of marketing activities in Social Media Networks.
• Sales/Marketing costs ratio.
For employee performance metrics, analysing employee performance is critically important
as most business activities are performed by the employees. The success of teamwork
(company’s activities) depends on continuous reporting and evaluation of employee
performance. It helps eliminate unnecessary human resource costs.
The following metrics are commonly used for employee performance:
• Employee efficiency (Performance reviews or team assessments can be used to
determine if these goals are met).
• Quality of work (error rate, customer satisfaction).
• Customer satisfaction.
• Revenue per employee.
• Measuring operational efficiency.
• Staff turnover ratio.
• Absenteeism ratio.
It is critically important that collaborative alliances must have appropriate performance
appraisal standards, and if one party’s standards are used, then conflicts may arise.
What is a Key Performance Indicator?
A Key Performance Indicator is a metric or ratio which can be measurable and can explain
how efficiently and effectively an individual or a team (department/company) achieves key
objectives. KPIs always guide how to achieve the organisational goals and objectives and
bring the organisation to competitive edges for their success. KPIs may focus on individual
performance, departmental performance, and a company’s performance.
Key performance indicators reflect the organisational goals
An organisation that has as one of its goals “to provide maximum return on investment
in our industry” will have key performance indicators that measure return on investment.
“Earning per share” will be among them.
Operational KPIs
Operational KPIs clearly articulate detailed and timely information that is used to make
day-to-day decisions or take corrective actions on performance or a process. These KPIs
are usually complex as they use formulas with data from multiple sources.
Strategic KPIs
Strategic KPIs focus on long-term objectives derived from an organisation’s goals. They
help identify if a strategy is working and if it is on target. As such, these KPIs are sometimes
referred to as High-Level KPIs.
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Key performance indicators must be key to organisational success
KPIs must guide to achieve organisational success, and they must be measurable.
For example, KPIs must be developed by SMART objectives.
The KPI, “the most profitable company in the industry”, is not clear because it is very hard
to measure and determine the criteria to be “most profitable”. It is too broad to achieve.
On the other hand, a KPI such as “increase sales by 10% in the next 12 months” is a good
one. It is measurable and guides the company to meet the objective.
Identify expected variances and barriers to achieve expected outcomes
Many things can influence the operational plan between its approval, implementation, and
finalisation. Such influences do not necessarily lead to a negative impact; for example, a
significant drop in the price of raw materials would have a positive impact. However, you
may need to consider the flow-on in terms of the possible reduction in the price of the final
product, changes in demand, and the need for increased production. Some impacts may
be minor and handled through the day-to-day management of the operational plan.
Other issues may have a major impact, such that the plan cannot be achieved within
the budget that accompanies it. In effect, the actual performance is at variance with the
expected performance documented in the budget. Issues that may significantly affect
budgets due to changes in the costs of resources are shown below.
Six issues that can have a significant impact on the cost of resources include, but are not
limited to:
• Significant price increases for raw materials/input resources due to short supply or
changes in exchange rates.
• Additional resources are required to meet unexpected increases in product demand
due to input material shortages or the need to purchase at a shorter time.
• Higher staff costs are caused by unexpected wage rises.
• The cost of recruitment and onboarding are higher than expected due to the high staff
turnover.
• Product price needs to be adjusted due to the change in demand or competitors.
• New technology and equipment are required.
Manage negative variances
When negative variances are identified, the first step is to investigate the reasons for the
variance. If the variances are manageable and controllable, the remedy action needs to be
considered. Cutting costs, avoiding unnecessary expenditures and reallocating assets or
human resources are some methods to closing the variance.
Activity 3.2
Explain why performance should be analysed.
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3.3 Make changes to agreements as required
according to organisational policies and
procedures
Recommend changes to the agreements
In the previous section, you learned why you should analyse performance for successful
collaborative alliances. When you successfully analyse the performance, you will be
able to identify shortfalls or specific areas that need improvement, which will help make
recommendations to the agreement.
Once you have identified recommendations to the agreement, you should identify the right
personnel from the partner business to gain approval and consider whom to report and
when to report.
For example, companies aim to generate profits from sales, the recommendations related
to the achievement of the increase in profit should be related to one of the following
factors:
• increased customer satisfaction.
• increased sales.
• reduction of the costs.
• effective and efficient business operations.
• mutual benefits for the collaborators.
Once recommendations are presented, the following individuals in the collaborative
businesses must be reported:
• Supervisor.
• Department manager.
• Senior management.
• Chief Executive Officer.
• Directors.
Activity 3.3
Why is it necessary to make changes to the collaborative agreements according to
the organisational policies and procedures?
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BSB60420 Advanced Diploma of Leadership and Management
10 subjects
1. Diversity and inclusion
2. Management of Change
3. Organisational leadership
4. Business Planning
5. Continuous improvement and innovation
6. Strategic Planning
7. Workforce Planning
8. Complex Problem Solving
9. Corporate social responsibility
10. Alliances
DESIGN | ACCOUNTING | BUSINESS | MANAGEMENT | MARKETING
HOSPITALITY | TOURISM | SOCIAL MEDIA | PROJECT MANAGEMENT
HUMAN RESOURCES | EDUCATION
BSB20120
BSB30120
SIT30216
SIT50116
SIT30316
SIT50416
BSB50120
BSB40520
BSB50420
BSB40820
BSB50620
BSB60520
10904NAT
BSB40420
BSB50320
BSB60320
Certificate II in Workplace Skills
Certificate III in Business
Certificate III in Travel
Diploma of Travel and Tourism
Management
Certificate III in Hospitality
Diploma of Hospitality
Diploma of Business
Certificate IV in Leadership and
Management
Diploma of Leadership and
Management
Certificate IV in Marketing and
Communication
Diploma of Marketing and
Communication
Advanced Diploma of Marketing
and Communication
Diploma of Social Media
Marketing
Certificate IV in Human Resource
Management
Diploma of Human Resource
Management
Advanced Diploma of Human
Resource Management
BSB40920
BSB50820
BSB60720
FNS40217
FNS50217
FNS60217
BSB80120
CUA30720
CUA50720
CUA60315
CUA60320
MSF50218
MSF60118
MST50119
MST60119
Certificate IV in Project
Management Practice
Diploma of Project Management
Advanced Diploma of Program
Management
Certificate IV in Accounting and
Bookkeeping
Diploma of Accounting
Advanced Diploma of Accounting
Graduate Diploma of
Management (Learning)
Certificate III in Design
Fundamentals
Diploma of Graphic Design
Advanced Diploma of Graphic
Design
Advanced Diploma of Graphic
Design
Diploma of Interior Design
Advanced Diploma of Interior
Design
Diploma of Applied Fashion
Design and Merchandising
Advanced Diploma of Applied
Fashion Design and Merchandising
For further information on APC courses please see Student Services, email info@apc.edu.au with
your enquiry, or visit our website at www.apc.edu.au
A20053 Alliances | BSB60420 Advanced Diploma of Leadership and Management | Student Workbook v1.0
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