To help deliver these results, here are five ways to get alliances right from the start of a major project.

1. Involve key people early and often

Get key people involved early and throughout the process. Visible collaborative leadership from the alliance management and leadership teams sets the tone for the rest of the alliance participants.

Everyone in the alliance also needs to own the objectives and be accountable for how they will achieve these outcomes. For this to happen, all participants need a seat at the table throughout the lifetime of the project.

2. Invest the time and resources to succeed 

Investing time to understand the complexities of the alliance model, the specifics of the participants involved, and to get the contractual framework correct is vital. It might seem like a burden at the outset, but it reduces the risk of disagreements down the line and builds trust and solid relationships, which in turn leads to much more collaborative working and better results. 

3. Foster a culture of collaboration 

The aim with an alliance is to blend disparate cultures of parent organisations into a single alliance culture. Culture change can take time, particularly when traditional models are so ingrained in the industry.

It requires the right mix of people and skills, and coaching. Coaching and training are important. Individual participants may not have the experience of alliances and the behaviours you need in an alliance are very different from in typical design and construct arrangements. Celebrating successes and (constructively) calling out behaviours or decisions when they are not right, is a good way to foster the culture you want. The example set from the leadership is a critical factor.

4. Get the incentives right 

First and foremost, the risk and reward regime must incentivise good behaviour and discourage bad behaviour.

The alliance becomes meaningful, and starts to act as one, when participants’ rewards are based on shared outcomes. For example, if the actual outturn cost (AOC) is higher than the target outturn cost (TOC), there should be a mechanism to share the pain. However, if the AOC comes under the TOC, efficiency should be rewarded. This minimises the risk of unintended consequences.

Likewise, exceptional performance, whether against business-as-usual targets or stretch goals such as carbon reduction and sustainability, should be a source of gain for participants rather than seen as lost revenue opportunities. This motivates participants to find better ways to deliver solutions, which can only benefit the project owner and the rest of the alliance in the long run.

5. Be clear and flexible. 

The gainshare and painshare regime must be clear and understood and agreed by all the participants. Uncertainty can lead to misunderstandings and a loss of trust in the process.

Enssuring clarity does not mean making the agreements and working model rigid. Project participants should have scope to be flexible with their approach to delivering the project, while clients who are happy to adjust KRAs (Key Result Areas) to get the outcome they want, often derive better results.