Mergers... joint ventures... strategic alliances... businesses are increasingly relying on these activities for strategic advantage. All too frequently, however, the potential benefits fail to materialise. While much attention is focused on the financial and contractual aspects of an alliance, we believe that the key to organisational partnerships lies in a different arena. Increasingly we are convinced that the success of such alliances depends on the "human factors" – the ways that people think and interact. And we have gained practical insight into both the hurdles that impede cross–organisational alliances and the processes necessary for their success. But first, let's step back and take a "big picture" look at how alliances work.