Black Meetings and Tourism

Here's an alliance you might not recognize as such – lobbying groups. Think about it for a minute. Lobbyists are the workers bees of industry on Capitol Hill. Lobbyists scurry about trying to curry favor and protect the industry or group they represent by influencing the legislative agenda. Competitors become fast bed- fellows when it comes to passing rules and regulations to drive profits. If there's a business or a cause expect to find a lobbyist. In the international arena the Organization of Petroleum Export Companies (OPEC) is one of the better-known alliances. The 13- member nations that make up OPEC control the supply and price of oil around the world. Many mistakenly believe OPEC members are all from the Middle East. In fact, Venezuela is one of the found- ing members. I mention OPEC, because while travel has many international organizations to represent the global tourism market, many of you might want to consider building an alliance with businesses beyond our shores. Alliances combine the synergies of each partner for a common good. The goal of any alliance should be to minimize risk and maxi- mize leverage and profit. Different alliance partners bring different resources to the table such as products, distribution channels, manufacturing capability, project funding and expertise. Virtually every product we purchase has a partnership in place. If you manufacture a product, some enti- ty has to distribute that product. I wouldn't be typing this article on my computer if it weren't for the alliance between Intel, who supplied the processor and Apple Computers. The advantages of alliances are many, but here are just a few. Alliances allow each partner to focus on their core competencies and things that match their capabilities. In the CVB example above, the folks in Baltimore probably know next to nothing about how to market Fort Worth or Sacramento and vice versa. Another advantage, you could learn something from a strategic partner that you might be able to exploit in another phase of your business. Or an alliance could simply be a matter of survival. If I make a movie, but can't find a distributor to get the film into the theaters or stores for DVD sales, I essentially own a worthless business. Many organizations cooperate to hold their annual conferences and conventions simultaneously in the same destination. Think about pilots and flight attendants or religious organizations and church ushers, the opportunities for alliances of similar industries or interests are endless. There are five key components to forming a strategic alliance; strategy development, partner assessment, contract negotiation, alliance operation and alliance termination. The strategy development phase is where you first study the feasi- bility of an alliance. What are the objectives of such a partnership? Certainly, it could include getting your product to market or gaining access to an emerging market. Partnerships are often formed of necessity or because they are trying to solve a problem. Maybe there's a technology your potential partner has that streamlines your business and makes it operate more efficiently. The "oneworld alliance" above solves a global distribution problem for all the carriers. Next you must assess your potential partner. What are their strengths and weaknesses? Can we create a win-win for everyone? Let's face it no one is going to form a coalition of any kind if they don't see the benefit. Answer this question from their prospective. "What's in it for me?" If you are unable to answer this question comfortably, that should be a clue. You must understand the motives of all partners. Something that often goes overlooked is differing management styles. If your management style is very informal in terms of its structure it might not be a good idea to partner with an organization employing a rigid top down hierarchy where decisions are passed up hill. Spelling out the details of each partner's commitment in writing is vital to a successful relationship. Contracts must also spell out expectations, protecting proprietary data if any, addressing termina- tion, penalties for not performing and arbitration. In terms of alliance operations, the question to be asked is how is the partnership going to be managed and if it needs a leader then who. Some alliances form new companies. If you're teaming up with several companies, who is the designee in each organization responsible for the day-to-day interaction between the parties? What happens if the partnership requires an infusion of capital? How do you organize your internal budgets around this new venture? What internal resources must your group bring to the table to make the alliance work? Think about how to measure the success or failure of the alliance. This ties directly into your strategy and objectives. Did the alliance accomplish what you planned for during your strat- egy sessions? Some alliances are intended for a finite period of time and oth- ers are terminated for failure to perform or just simply poor plan- ning. Not all business marriages last forever and there is nothing wrong with that. But you must plan for the termination and make sure it's included in your contract language. And finally, it pains me to write the following, but it needs to be said. As African-Americans, we must overcome this fear we have of working with one another. I'm not suggesting that we come out holding hands and sing Kumbaya. I'm suggesting we treat each other like any other business opportunity. Evaluate your Black brothers and sisters as you would any other business relationship, not dismiss them simply because of skin color. We've all met far too many out- standing African-American businesses and individuals to continually walk to the other side of the street. For some reason, we are under the misguided impression that working with other Blacks is a detriment. We refuse to share information that would benefit both parties, yet we'll readily share it with others. We seem to lack the foresight with our own to see the strategic alliances that would allow us to pool resources and grow. The result of this thinking – stagnation and slow, if any growth. Some have suggested this is part of the divided and con- quer mentality foisted upon us by slavery. If that's the case, it's been almost 150 years, time to partner up. And along the same tangent, we must value each other's expert- ise. I can't begin to tell you how many times I've been asked to do free work by one of my Black brothers and sisters. In the past, I would take on the work with the promise of payment later. Well later never comes and when I bring up payment, they are in a full sprint to someone not of African-American descent and pay for inferior quality and service. Think about strategic alliances and let's work together where we can. Black Meetings & Tourism June/July 2009 : www.blackmeetingsandtourism.com 40

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