Making Strategic Alliances Work in the Healthcare Industry

Abstract

The healthcare industry has become a very high-pressure environment. Many governments face an ongoing struggle of trying to provide healthcare for all and consequently, in many countries attention is constantly focused on the healthcare budget and ways to cut it. These cost pressures together with the general dynamic nature of the healthcare industry require a significant change in approaches to strategic management by business managers in all sectors. It means that strategic planning and strategy formulation need to be extremely well managed and, more importantly, have to be efficiently implemented through the use of appropriate tools. Strategic alliances are an option.

Research has determined that in strategic alliances, the rationale for entering into a relationship is more often than not very sound with strong business reasons supporting the strategic decision. It is the human factor — including personalities, behaviour and the ability, willingness and commitment of people to implement the alliance and make it work — that is more influential on the success or failure of an alliance than the business reasons or strategic rationale. This is a key factor and should be borne in mind by any business managers considering utilising strategic alliances as an implementation tool. Be clear and aware of what the strategic alliance process entails.