Creating Profit Through Alliances - business models for collaboration E-book | Page 94

of the smaller company's key staff. This can be
arranged, for instance by coupling this to a bonus or
by making the payment of compensation conditional
on their contribution.
More than two parties
Working with three or more parties introduces a new
sort of dynamic in an alliance, certainly if these
parties decide to collaborate in a new legal entity. In
the latter case, it may happen that the majority
makes a decision that is unfavourable for the
minority. This is comparable to an association that
decides to raise the contribution fee to finance new
investments. Members not interested in those new
investments will have to contribute regardless, or
else must relinquish their membership.
There are two mechanisms that can reduce the
chance of such decisions being made:




First, the statutes of the new legal entity or a
separate agreement can stipulate that certain
decisions require a larger majority or unanimous
consent; for instance, decisions that will change
the scope of the collaboration.
Second, there will always have to be some sort
of equilibrium between the partners. If a
decision clearly disadvantages one of the
participants, he may decide to quit the
collaboration or may start exhibiting
opportunistic behaviour.

Working with three or more partners often bears
features similar to working in a network (see Chapter
3). A collaboration between competitors will
generally have a very formal and transparent
structure. If it concerns complementary parties, it is
customary for one of the parties to shoulder the
coordination.
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Small companies
Increasing numbers of knowledge workers are
offering their services as an independent one-person
company, or with just one or two co-workers. It is
particularly attractive for this category of companies
to collaborate as it will enhance their profile on the
market and enable them to bid on large assignments.
However, the downside is that formalising a
partnership is a comparatively larger burden for a
small company than a large one. They will often lack
experience with such contracts, let alone have a
lawyer in employment. Fiscal aspects will need to be
examined, regardless of how big the deals are.
Furthermore, in smaller companies this kind of
investigative work is prone to getting snowed under
by the day-to-day operational activities.
It is therefore important for small companies to use a
standard organisation form to arrange governance,
finances and liability. Practical aspects of the
collaboration such as consultancy structures,
marketing, household regulations and administration
will often be taken care of as part of the group
dynamics.
In the Netherlands, Alliance experts has set up a
collaborative structure for solo entrepreneurs in the
form of a cooperative. This legal form is used
infrequently, but it does offer a means of letting
members enter and exit the collaboration without
requiring a notary. Every member has an equal say in
governance and receives a share of the profit
proportionate to the amount of work that he or she
performed through the cooperative. The cooperative
concludes the contract with the client and arranges
the execution of the assignment with one or more
members. More than 25 cooperatives have been set
up in this way within the span of one year.