A joint venture is a complex structure that has multiple levels of control and management. All its levels are interdependent and at the same time have different control. When combining companies, it must be remembered that initially these are two companies, with different goals and objectives, and it is necessary to form a common goal with separate tasks in order to avoid confusion. It will also allow you to get rid of uncertainty in achieving the goal, which can be blurred due to insufficiently clear delegation of authority.
Instructions
Step 1
The first step in setting up a joint venture is to define an overall strategic line. It is imperative that companies develop a common direction in which they will move together. It is also necessary to highlight a common goal towards which they will strive both in the short and in the long term.
Step 2
Create project working groups. These working groups will be responsible for planning and implementing joint activities. They will be responsible for the separation of powers, control and management of the joint venture activities. An equilibrium composition from each participating company is required, otherwise there is a high probability of inconsistent actions.
Step 3
To avoid uncoordinated actions, it is necessary to ensure full transparency of actions that take place within the framework of the project. Enter the report form that should be used by each employee and the obligation to familiarize with them for the manager. In this case, participants will clearly understand what exactly is being done at the moment and at what stage the progress is.
Step 4
Be sure to develop exit strategies from the joint venture. Of course, this is an undesirable option, but if the company starts to make a loss, the sooner the partners terminate the agreement, the better, otherwise both of them will continue to incur losses.
