Alliance
Management
Program Design
    Gerry Dehkes, Managing Partner
    ProPartnering
    Email: dehkes@propartnering.co...
Presentation Objective:


                          Define the alliance partnering process
                            Why...
As Leaders, we face:
                                                 Co
                          Segmentation?          ...
Imagine…

                          Getting the results we want
                          Our team being recognized as a k...
Why A Partnering
                                          Process?
                          Simplify Starting-Up
       ...
Value Delivery System

                          1.   Develop a product/offer/solution
                          2.   Gene...
Alliance Program Design
                                        Partner 2
                                        Partner ...
The Partnering Process
                                                                                    This process is...
Define Partnering Needs

                           Partnering Process                                                Shou...
Attract and Qualify
                                                 Partners
                           Partnering Proces...
Formalize the Initiative

                           Partnering Process
                          Define partnering needs
...
Implement the
                                                     Partnership
                           Partnering Proce...
Deliver Value Together

                           Partnering Process
                          Define partnering needs   ...
Nurture the Relationship

                           Partnering Process
                          Define partnering needs ...
Supporting Pillars

                                                                                                      ...
The Supporting Pillars
                                                        Infrastructure and People
                 ...
Partnering Roles in
                                                        Detail




                                   ...
How’s your Executive
                                   Support?
                          What do your Executives do to h...
Real Executive Support
                                    and Sponsorship for Alliances
                          Think a...
Key Change Roles

                                                                             Sponsor
                   ...
Who is/can be a
                                    Sponsor?
                          Someone who legitimizes the allianc...
Key roles they can/should
                                            play:
                          Commit the resources...
A simple, but powerful model
                                                           for changing behavior
            ...
To Change Behavior
                                                           Increase perceived “pain” of current situati...
Steps to take:

                          Disconfirm the present state; increase discomfort with the
                     ...
Some specific executive
                                        sponsor action examples:
                          First, ...
Executives
                                                                                       Key Messages
           ...
Salespeople
                                 Desired Actions                                        Key Messages
         ...
Product Managers
                                                                                       Key Messages
     ...
Alliance
Management
Program Design
    Gerry Dehkes, Managing Partner
    ProPartnering
    Email: dehkes@propartnering.co...
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Alliance Management Program Design

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Overview of the ProPartnering alliance management process

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Alliance Management Program Design

  1. 1. Alliance Management Program Design Gerry Dehkes, Managing Partner ProPartnering Email: dehkes@propartnering.com Tel: 1 908 894 8061
  2. 2. Presentation Objective: Define the alliance partnering process Why a partnering process? Key roles and tasks Recommended task responsibilities Partnering Process design format Gaining sponsorship and support for partnering Alliance Program Design © Copyright 2010 Introduction Professional Partnering Services, LLC 2
  3. 3. As Leaders, we face: Co Segmentation? re e ? Co ag mp s et Coverage Map? Mes en ce n t? ? n me Empowered? Empowered? A lig Management Support? Partner Portfolio? Measurement? Sales Wh s? Compensation? Wh ere to at G m to Say o gra ? ro P Customer Satisfaction? Alliance Program Design Quota? Conflict? © Copyright 2010 Introduction Professional Partnering Services, LLC 3
  4. 4. Imagine… Getting the results we want Our team being recognized as a key driver of our organization’s success Powerful support from our executives and peers We have the right partners taking the right actions on our behalf Our organizations working seamlessly with our alliance partners to serve customers Alliance Program Design And…? © Copyright 2010 Introduction Professional Partnering Services, LLC 4
  5. 5. Why A Partnering Process? Simplify Starting-Up The Partnering Process pulls together the key Alliance Best Practices in a simple, step-by-step format. Convey Consistency and Predictability We want to be a “Partner of Choice”. Potential partners will look to us to be consistent in our approach to working with partners, they don’t like “unpredictable” partners. Replicate Successes The common framework and terminology allow successes to be communicated effectively and key success factors to be leveraged under different circumstances. Retain Flexibility The Alliance Partnering Process is not a monolithic, gate-based process. It is checklist of key steps and a collection of tools that Alliance Program Design can be customized for specific circumstances. © Copyright 2010 Introduction Professional Partnering Services, LLC 5
  6. 6. Value Delivery System 1. Develop a product/offer/solution 2. Generate Demand (Sell) 3. Fulfill Demand (Deliver) 4. Assume Risks Each target market may have a unique VDS Alliance Program Design © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 6
  7. 7. Alliance Program Design Partner 2 Partner 1 Our Mktg Our Sales Our Admin Our Services X Our Prod Mgt X Component products X Testing Why a Partner Process? X Certification / approval Solution X X Services intellectual property Reputation X Create awareness X Generate & qualify leads X Manage account / sales strategy © Copyright 2010 X Create & present proposal X Negotiate contract / take order Generate Demand Professional Partnering Services, LLC X Manage project X Ship, install, and test X Partner Process Goal: Train the Customer X Support (Tiers 1, 2, & 3) Fulfill Demand X Invoice and collect X X Development investment risk X Inventory risk X Warranty risk Assume Risks X Customer financing risk 7 Put a Value Delivery System in Place!
  8. 8. The Partnering Process This process is Partnering Process used to identify Define partnering needs potential partners and to create and Attract and qualify partners maintain successful partnerships Formalize the initiative Implement the partnership The model helps us to focus on the key Deliver value together areas to develop and nurture Nurture the relationship strategic alliance Alliance Program Design partnerships © Copyright 2010 Partnering Process Professional Partnering Services, LLC 8
  9. 9. Define Partnering Needs Partnering Process Should we partner? Define partnering needs What roles do we Select Target Customer Segments want partners to Define Value Proposition play? Define Functions to Deliver Value Define Who Plays Which Roles What is the profile of Define Desired Partner Profile the desired partner? Design Partner Value Proposition Attract and qualify partners Why will the partner Formalize the initiative want to play the Implement the partnership Deliver value together roles we identified? Nurture the relationship Alliance Program Design © Copyright 2010 Partnering Process Professional Partnering Services, LLC 9
  10. 10. Attract and Qualify Partners Partnering Process Define partnering needs Attract and qualify partners Partner Value Evaluate Partner Portfolio Proposition Identify Candidate Partners Customize Partner Value Prop Communicate Partner Value Prop Relationship risk Assess Against Desired Profile assessment Go/No Go Decision On Candidates Formalize the initiative Implement the partnership Deliver value together Alliance Program Design Nurture the relationship © Copyright 2010 Partnering Process Professional Partnering Services, LLC 10
  11. 11. Formalize the Initiative Partnering Process Define partnering needs Attract and qualify partners Formalize the initiative Joint business Develop Joint Business Plan planning Trusting Partner Relationship Offer & Value Delivery System Mutual Objectives Business Terms Legal Partnership Governance System Implementation Plan agreements Review Process Agree On A Contract Implement the partnership Deliver value together Alliance Program Design Nurture the relationship © Copyright 2010 Partnering Process Professional Partnering Services, LLC 11
  12. 12. Implement the Partnership Partnering Process Define partnering needs Clear roles and Attract and qualify partners Formalize the initiative responsibilities Implement the partnership defined Complete the Joint Offer Ensure Partner is Prepared to Select, train, and Perform Roles motivate people Ensure we are Prepared to to carry out their Perform our Roles assigned roles Deliver value together Nurture the relationship Alliance Program Design © Copyright 2010 Partnering Process Professional Partnering Services, LLC 12
  13. 13. Deliver Value Together Partnering Process Define partnering needs Lead generation Attract and qualify partners Formalize the initiative Implement the partnership Lead management Deliver value together Support Sales teams Sales partnering Coop’ Lead- Facilitate Coop’n / Lead-Sharing Sponsorship Sales- Resolve Sales-Related Conflicts Motivation Monitor Progress Against Plan Success stories Take Corrective Actions Education Nurture the relationship Alliance Program Design © Copyright 2010 Partnering Process Professional Partnering Services, LLC 13
  14. 14. Nurture the Relationship Partnering Process Define partnering needs Partnership reviews Attract and qualify partners Formalize the initiative Implement the partnership Risk assessment Deliver value together Nurture the relationship Partner recognition Review Relationship & Revise Establish Executive Sponsorship Executive advocacy Communicate with Partners Resolve Partnership Conflicts Provide Partner Recognition Alliance Program Design © Copyright 2010 Partnering Process Professional Partnering Services, LLC 14
  15. 15. Supporting Pillars Supporting the Six Partnering Process Steps Are the Twin Define partnering needs Pillars: Attract and qualify partners Infrastructure to Formalize the initiative Capture, Manage, People Implement the partnership and Communicate Infrastructure Data Deliver value together Nurture the relationship People to Perform the Various Required Functions Alliance Program Design © Copyright 2010 Partnering Process Professional Partnering Services, LLC 15
  16. 16. The Supporting Pillars Infrastructure and People Infrastructure: People: Infrastructure is needed to manage All relationships need to be nurtured. partnerships – setting objectives and The Partnering Process includes some measuring and communicating results: specific steps to nurture and maintain the relationship between us and a partner: 1. Partner Database and Web Site 1. Partner Managers 2. Forecast, Measure, and Report • Define and Staff Positions Results • Set and Manage Compensation • Influenced Revenue • Train, Support, and Motivate • Satisfaction 2. Internal Audiences • Customer Satisfaction • Partner Satisfaction • Demonstrate Sponsorship • Sponsor Satisfaction • Communicate Success Stories • Process Fidelity • Provide Motivation • Train in Partner Skills 3. Prepare Annual and Strategic Plans • Provide Access to Resources 3. Partners and External Audiences Alliance Program Design • Excellence in Partnering © Copyright 2010 Partnering Process Professional Partnering Services, LLC 16
  17. 17. Partnering Roles in Detail Your Organization Other Org 1 Other Org 2 Your Organization Other Org 1 Other Org 2 Define partnering needs Implement the partnership Select Target Customer Segments Complete the Joint Offer Define Value Proposition Ensure Partner is Prepared to Perform Roles Define Functions to Deliver Value Ensure we are Prepared to Define Who Plays Which Roles Perform our Roles Define Desired Partner Profile Deliver value together Design Partner Value Proposition Support Sales teams Attract and qualify partners Facilitate Coop’n / Lead-Sharing Evaluate Partner Portfolio Resolve Sales-Related Conflicts Identify Candidate Partners Monitor Progress Against Plan Customize Partner Value Prop Take Corrective Actions Communicate Partner Value Prop Nurture the relationship Assess Against Desired Profile Review Relationship & Revise Go/No Go Decision On Candidates Establish Executive Sponsorship Formalize the initiative Communicate with Partners Develop Joint Business Plan Resolve Partnership Conflicts Alliance Program Design Agree On A Contract Provide Partner Recognition © Copyright 2010 Partnering Process Professional Partnering Services, LLC 17
  18. 18. How’s your Executive Support? What do your Executives do to help your alliance program? What do you wish they’d do? What do you wish they’d STOP doing? Alliance Program Design © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 18
  19. 19. Real Executive Support and Sponsorship for Alliances Think about what your organization’s leaders could do to help make alliances REALLY successful. Public support you can count on Building real relationships with your partners Resolving conflicts in ways that support the long-term success of the alliance Playing the right roles in making the Alliance Program Design alliances work © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 19
  20. 20. Key Change Roles Sponsor Advocate Target Agent Alliance Program Design © Copyright 2010 Transforming the Organization Professional Partnering Services, LLC 20
  21. 21. Who is/can be a Sponsor? Someone who legitimizes the alliance Able and willing to provide the needed resources Understands the goals, need for and impact of the alliance Initiating or sustaining sponsor (need both) Alliance Program Design © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 21
  22. 22. Key roles they can/should play: Commit the resources needed for the alliance to succeed People, money, executive time and visibility Publicly demonstrate support for the alliance Speeches, meeting time Privately support the alliance with key players Meet/build relationships with key people in both companies (and others, as needed) to demonstrate strong, personal support for the alliance Provide consequence management (reward or punish) Reward those who facilitate alliance progress and express displeasure with those who inhibit the alliance Monitor alliance performance Ensure that alliance performance is reviewed and managed on a consistent basis, participating as appropriate Sacrifice for the alliance Make the alliance a key, personal objective, invest their time, expertise and personal reputation in the alliance Alliance Program Design © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 22
  23. 23. A simple, but powerful model for changing behavior “Pain of Change Perceived Pain Alliance Program Design Present state Barriers to Change Desired state © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 23
  24. 24. To Change Behavior Increase perceived “pain” of current situation Decrease the perceived “pain” of change “Pain of Change Perceived Pain Alliance Program Design Present state Barriers to Change Desired state © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 24
  25. 25. Steps to take: Disconfirm the present state; increase discomfort with the status quo; “Competition is beating us through their alliances” Provide structure, guidance, confidence and trust while encouraging transition toward the desired state; encourage confidence in the organization’s and the Alliance Team Leader’s experience and expertise, as well as the Sponsor’s strength and influence; “We can do it” Confirm the desired vision of the future. Acknowledge the challenge of making the move and highlight the benefits of the new, desired state; “We’ve chosen the best, proven way to win” Alliance Program Design © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 25
  26. 26. Some specific executive sponsor action examples: First, understand the alliance What are we asking people to do? Who are we asking? Why do we think they will do it? Understand the overall campaign to influence people’s actions—and the Executive’s role in executing the campaign Build appropriate peer to peer relationships Understand and participate in the escalation process from a position of alliance understanding and support Conduct regular executive level reviews of the alliance. Alliance Program Design © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 26
  27. 27. Executives Key Messages Desired Actions Pain of the Current Situation Public support for partnering We lack the resources to do as we’d like. Private support for partnering Spend personal “capital” Working with partners is frustrating; we lack Measure and deliver clear roles, real controls and a shared vision— consequences and success. Demonstrate partnering behavior Desirability of the Proposed Behaviors Conflicting Behaviors Collaboration leads to greater success, while Silent or negative comments on retaining control within the product house. partners/partnering Some of the best partnering companies have Not a personal objective delivered superior results through a proven Focus on agents not targets partnering process. Drivers We can actually drive business with and through Past practices/lack experience partners. “Distance” from partners Lack of advocate/agent support Reducing Barriers to Changing • Personal objectives Personal objectives • Collaboration that retains control within the • Inclusion in key messages • Inclusion in key messages product house can be easier than you think. • Personal relationships with partner We have people within the company who have Alliance Program Design •Personal relationships with partner executives successfully partnered and will help. executives Vehicles • Periodic reviews •Periodic reviews © Copyright 2010 Executive Sponsorship Professional Partnering Services, LLC 27
  28. 28. Salespeople Desired Actions Key Messages Form relationships with partners Identify opportunities to partner Pain of the Current Situation Develop joint sales strategies Competitors are beating you by leveraging Actively work with partner their alliances. Conflicting Behaviors Failure to exploit alliances Desirability of the Proposed Behaviors Combative relationships Little joint sales planning / activities Sales people who partner win more and Drivers win more often. Past practices / lack of experience Unclear rules of engagement Reducing Barriers to Changing Lack of awareness of joint offers Partnering is a critical sales skill Partnering failure stories and myths today…and you can develop yours. • Success stories Success stories • Partnering is normal. • Compensation Plan • Compensation Plan Corporate, Product House and Sales • Alliance Partners Web Site Management wants partnering to happen. • Alliance Partners Web Site • Sales Meetings Alliance Program Design Sales Meetings Vehicles • • Sales Communications • Sales Communications © Copyright 2010 Target Actions Professional Partnering Services, LLC 28
  29. 29. Product Managers Key Messages Desired Actions Pain of the Current Situation Develop segment strategies that Losses to competitors leveraging partnerships. appropriately leverage alliances Make and buy options aren’t very attractive. Explicitly delegate partner mgmt The current approach isn’t optimal. Support the alliance Ignorance about cross-company alliances hurts. Assist in nurturing the relationship Conflicting Behaviors Desirability of the Proposed Behaviors Failure to consider alliances Companies are succeeding through alliances. Poorly articulated Value Proposition We already have alliances that may benefit us. Independent, ad hoc management of We have proven processes and tools, and partner relationships professionals available to support sponsors. Ally has a higher success rate / return than buy. Drivers Past practices / lack of experience Reducing Barriers to Changing Autonomy / fear of trusting others Proven tools / experience are easily accessible. Lack of hard results data in the past The Alliances team and our processes are flexible to work as the sponsor pleases. • Training and tools are partner ready Our leadership supports partnering. Training and tools are partner ready • • Alliance Partners Web Site Product Management remains in control when • Alliance Partners Web Site working with Channels and Alliances. • Partner Advisory councils Product Managers can clearly see the alliance’s Alliance Program Design Partner Advisory councils • payback. Vehicles • Measurement of partnering activity • Measurement of partnering activity © Copyright 2010 Target Actions Professional Partnering Services, LLC 29
  30. 30. Alliance Management Program Design Gerry Dehkes, Managing Partner ProPartnering Email: dehkes@propartnering.com Tel: 1 908 894 8061

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