by Noel G. Watson
CEO
Jacobs

In a previous article for World Energy®,  I discussed the evolution of alliances and the value that properly conceived and well-implemented alliances bring owners and E&C contractors. That seems simple enough. The tricky part, of course, is figuring out how to start a successful alliance and what it takes to keep it healthy over time.

I'm committed to alliances because these long-term relationships create unique opportunities for both owners and E&C contractors. Alliances allow owners to refocus on their core competencies, benefit from tailored solutions, create value early in the capital process and promote innovation. For E&C contractors, alliances create a steady business stream, provide an opportunity to improve work quality on an ongoing basis and bring stability to the workforce.

In realizing these benefits, we've found that successful alliances share five key components:

• Long-term commitment
• Active management sponsorship
• Continuous improvement metrics
• Effective value-sharing approach
• Compatible beliefs and behaviors

While there are many specific elements that fall into these broader areas, an effective alliance is generally like any other well-run enterprise. I'll just attempt to connect the dots between these success factors and some specifics about implementing an alliance.

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