How to set up a joint venture

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 various control. During the merger it must be remembered that it was originally two companies, with different goals and objectives, and should form a common purpose with divided tasks in order to avoid confusion. It will also allow you to get rid of uncertainty in achieving the goal, which can be degraded due to a lack of clear delegation of authority.

Instruction

The first step in creating this joint venture is to define the overall strategic direction. It is necessary to develop a common direction in which to move together. It is also necessary to allocate the General purpose for which they will seek in both the short and the long period of time.

Create project working groups. These working groups will be responsible for the planning and implementation of joint activities. They will be responsible for the separation of powers, control and management over the activities of the joint venture. The required equilibrium composition from each of the involved company, otherwise, the probability of uncoordinated actions.

To avoid uncoordinated actions, it is necessary to provide full transparency of the actions committed in the framework of the project. Enter the report form, which must be used by each employee and the obligation of reading them for the head. In this case, the participants will clearly understand what is being done at the moment and at what stage is the progress.

Be sure to develop an exit strategy from the joint venture. Of course, this is an undesirable option, but if the company begins to bear the loss than before the partners terminated the agreement, the better, otherwise they both will incur losses and further.

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