1.  Establish the external context of the project alliance

This step defines the external environment in which the project alliance operates and defines the relationship between the alliance members. This may include, for example:

•  the business, social, regulatory, cultural, competitive, financial and political environment;

•  the organisation's strengths, weaknesses and opportunities, and threats it faces;

•  external stakeholders; and

•  key business drivers.

It is particularly important to take into account the external context regarding the alliance because of the extent of the externally-generated risks that alliance must manage.