More organisations are forming alliances with others from completely different sectors due to increasing project complexity and customer demands. Some universal principles will apply to all however.
The growing intricacy of projects and increasing demands from customers means joint ventures can be a vital tool for business. But the ventures themselves can also be complex arrangements to pull off.
For businesses seeking to drive growth and meet the demands of complex projects, joint ventures are a logical pooling of resources. But, they can also be a minefield.
In this article, Kelvin Hingley, Chairman, KPMG-HPR, writes about the repeated flaws that businesses fall victim to in aiming to establish a successful joint venture. He also offers a four-step guide to avoiding these pitfalls and making the arrangement work – across the supply chain.
There is no one right way to construct a joint venture, but there are a number of lessons to be learned from previous experiences.