Eli Lilly and Company Harvard Case Solution & Analysis

The next step in the alliance management procedure is based on getting the desired partners for the company. This phase is particularly based on Corporate Business Development Group. In this phase, the responsibility of CBDG starts that is finding the right partner for Lilly to make a strategic alliance with them. The next step is to make sure that the things are going smoothly, and now the company can move forward to make its alliances stronger. Here comes the next phase that is based on working with a partner to make a successful alliance. This phase is based on analyzing and finding the value from the partners. From this stage, Office of Alliance becomes accountable to make the alliance successful by any means.

Basic measurement standards:

Another significant element of Lilly’s strategic alliance procedure is based on some of the measurements and metrics that help management at Lilly to identify the success or failure of the alliances. The identification can be done in various ways however; the most popular one at Lilly is the survey from the team members of the alliances. The company makes these surveys entirely anonymous to get fair and unbiased Responses from the team members. Out of these surveys, the most famous one conducted by the company is known as Voice of Alliance (VOA) survey and that is based on various metrics like communication, conflict management, trust, performance measurement and so on. The list of metrics has shown in the appendix below.

Alliance management through 3-dimensional fit analysis:

For the alliance to be successful, management at Lilly analyzed the three basic areas where the alliance can be done in the best possible way. These areas include operational fit, strategic fit and cultural fit. With the help of these three dimensions, the company would be able to find the best fit for the company and the alliance partners of Lilly as well. In addition to this, the result formed from this analysis helps the management to forecast the success and failure of the alliance. In this way, the company would be able to avoid and handle issues and conflicts among the team members that may have drastic effects if not handled properly.

In addition to this, dimensional fit analysis helps the company to understand the decision-making process and to make them believe that their suggestions and opinions matters and considered in the decision-making process as well.

Expanding Alliance Scope in Geography and Function:

Intercultural skills:

The growing international presence of Lilly was expanding the alliance frontier for Lilly both globally and across the value chain. The company has recently entered in the alliances with Sankyo, the number two Japanese pharmaceutical company, as well as Boehringer Ingelheim from Germany as well. Collaboration is the primary factor in managing the value chain of the teams across the globe and thus the requirement for intercultural skills are increasing. With the increase globalization phenomena in the workplace, the management of the companies are now more concerned about developing intercultural skills among their employees to foster team management. Today, companies have realized that technical skills are not the only requirement for a company to succeed instead; they have realized that it has become vital for the companies to make their employees learn intercultural skills as well as such abilities to speak foreign languages, giving and taking respect from each other and handling the differences in culture.

Most of the companies have failed to identify and realize the importance of intercultural skills and thus not engaged in providing any sort of training to their employees about it. There is a high need in companies for bringing intercultural skills in practice for the development and to make these skills strongly penetrated into the organizational culture. There are many reasons that show and prove the importance of intercultural skills to be learned by all the employees and team members in an organization. This help employees and team members to understand their fellow workers and team members. In addition to this, it also helps companies in understanding the workplace of different cultures. In this way, employees become more comfortable in learning and adapting the changes required by the new culture and thus save them from the shocks by cultural differences.

To make this applicable, Lilly needs to develop a training program that will be based on developing intercultural skills among the employees and other team members of the company that are linked with it directly or indirectly. Majority of the companies in the world are diverting towards globalization and thus need for intercultural skills are increasing to make better understanding of other cultures. Providing proper knowledge and guidance about the culture of the opposite team is necessary for the successful strategic alliances.................................

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