Getting More Value from Joint Ventures

Joint ventures (JVs) are on the rise, as companies pursue a variety of objectives, such as quickly establishing a foothold in a new market; gaining product or technology know-how; increasing capacity, efficiency, or presence; or tying into new distribution channels. Yet 92% of firms surveyed report that their own JVs failed to add as much value as anticipated, and 54% claim “they gave more value than they got.” Common problems include disharmony between corporate cultures and unclear or poorly aligned strategic goals and plans. Organizational and management issues can surface, including how to end a JV. Eight rules can build a successful...