Companies are under intense pressure to improve their environmental, social, and governance (ESG) performance.
In fact, we’ve found that the typical corporation relies on alliances for 15% to 20% of its total revenues, assets, or income. While some alliances are highly successful—Airbus, Cingular, and Visa International, for instance—many have a less-than-stellar track record. The overall success rate of alliances hovers near 50%, and the average life span of a joint venture is just five to seven years. It’s no wonder executives complain about their inherent instability. But, in fact, they’ve got it backward; most alliances are actually too stable for their own good.
Read the full article originally published in the Harvard Business Review.