Closing a deal is a huge achievement. After months of negotiations, due diligence, and legal wrangling, long nights and stress, a signature. A celebration. Press releases go out. Optimism is high. The alliance enters its honeymoon period.
Whether partners execute is what determines whether the collaboration will thrive or slowly unravel. Many companies underestimate how important it is to set clear expectations around follow through and allocating the appropriate resources and time to joint efforts. These are often put on the back burner until the next steering committee meeting is looming on the calendar.
Prepare for the long term
Picture the following scenario: After a long and arduous negotiation, two teams come together to launch a joint program. The scientific rationale is solid. The business case is compelling. Everyone is optimistic at the kickoff. But signs of trouble appear as the teams start to do actual work together.
Perhaps one team is slower than the other (hello research collaboration between a small biotech and a large pharma!), or deep differences of opinion arise regarding the importance of a particular experimental approach. Joint steering committee meetings are delayed due to calendar challenges. Decisions are revisited. Milestones are missed because the parties had different interpretations of what “ready” meant. Document approvals drag on. Calls are dominated by operational issues instead of scientific progress.
The enthusiasm that launched the deal is replaced by frustration. Trust evaporates. Team members start asking “what does the agreement say”.
These aren’t signs of a bad deal. They’re signs of a deal that wasn’t set up for real-world execution.
Why alliances struggle after signing
There are many reasons biotech alliances lose momentum post-signature:
- Governance gaps: Roles, responsibilities and decision making processes were never explained and operationalized. Deadlines are missed and decisions are revisited.
- Cultural misalignment: The partners do not understand how the other operates and thus they work at odds. For example, one team prefers operating in a highly structured environment, following standard operating procedures. The other team operates with minimal processes and relies on its experts to decide to carry out projects as they see fit.
- Unclear success criteria: Everyone wants success, but haven’t aligned on what success actually looks like. One team may think that a milestone has been achieved, while the other is under the impression that much more work needs to be done to be sure that a result is to be believed.
- Ineffective communication leads to poor alignment: Communication should be timely, fit for purpose, and target the individuals who need to know. Too much information will be tuned out. Too little, and team members will manufacture their own story to fill the information gaps. It is critical to actively manage the partnership narrative to keep everyone on board.
The alliance begins with structure
One of the most powerful things you can do after a deal is signed is to slow down for a moment and build the right framework. This doesn’t mean bureaucracy. It means clarity.
· Define what success looks like: Agree and document how milestones will be measured, and how progress will be reported along the way.
· Establish a rhythm: Monthly operational meetings, quarterly joint steering committee meetings, and real-time problem resolution where possible. Minimize turn around time for minutes and communications to drive execution.
· Designate alliance owners: whether you have an alliance function or not, you should have internal champions who are responsible for the overall success of the partnership. They are the glue of the partnership.
· Establish joint tools: shared trackers, document repositories, decision logs. Consistent application of best practices is powerful.
This effort goes beyond excellent project management. It’s cross-functional leadership.
Building trust and performance through transparency
Communication and consistent application of best practices enables the transparent reporting of the status of alliance activities. This in turn drives team performance by motivating team members to complete tasks on time, and by making it easier to quickly see where things go wrong.
Consistency and constructive problem-solving builds trust. When team members are empowered to name issues early and work through them with their management’s support, the partnership becomes stronger.
Preparing for the inevitable surprises
Building trust early is very important. Even the best-designed alliances will hit roadblocks. A regulatory change. A key data point delayed. A safety signal. A shift in priorities for one of the partners. Trust built over time will help joint teams overcome challenges. Or, in the worst case, trust help everyone come to an amicable, efficient wind down of the partnership.
Realizing Deal Potential
Ultimately, a biotech alliance is made successful by people (even an AI alliance!). @LBBAL Alianza can provide the right tools, guidance and support to help your team realize the potential envisioned in the original deal.
