Top Strategies
for Launching a
New Alliance
    Presented by:
    Gerry Dehkes, Managing Partner
    ProPartnering
    Ema...
Presentation Objective:


                          Ensure clarity and alignment around alliance
                         ...
Planned topics for our
                                  session:

                          Why partner?
                ...
What is Strategy?

                          strategy n., pl. -gies [Fr stratégie <, generalship:
                        ...
Why Partner?




                          Give Customers what they want while
                               doing only w...
Make / Buy / Ally Matrix
                                                                                                 ...
Successful partnering is about having
                                the right partners taking
                          ...
The Alliance Partnering
                                         Process
                                                 ...
Define Partnering Needs

                           Partnering Process                                                Shou...
Right Actions

                          What are the right actions?
                           Value Delivery System
    ...
Value Delivery System

                          1.   Develop a product/offer/solution
                          2.   Gene...
Product/Offer/Solution

                          1.   Develop a product/offer/solution
                                  ...
Generating Demand

                          1.   Develop a product/offer/solution

                          2.   Generat...
Fulfilling Demand

                          1.   Develop a product/offer/solution
                          2.   Generate...
Assuming Risks

                          1.   Develop a product/offer/solution
                          2.   Generate De...
Role assignment
                                       or Who does what?
                          Owner: Owns/is responsi...
New Alliance Strategies
                                         Us

                                         Partner 2
  ...
Real-life impact

                          The invisible ISV partner
                           Just another undifferenti...
Defining Your VDSM

                          One and only one owner per function
                          Consider and k...
Desired Partner Capability

                          Define:
                           We want a partner to have the org...
Beyond
                                     “Doing the right actions”
                          Beyond being able to perfo...
Right Partner:
                                     Compatibility/Cultural Fit
                          Define how well y...
Right Partner:
                                       Strategic Fit
                          Beyond being a good partner ...
We have the Right Partner:

                          Between us, we can do all that is needed
                          O...
Partner Value Proposition

                          Understand how partners make a
                          partnering d...
Making
                                      the partnering choice
                          Decision-makers maximize expe...
Value can be…

                          Organizational
                           Sales, Profits, Market Share
          ...
These experiences
                                  attract partners:
                          Customer Access
          ...
Customer Access

                          Customer Access
                            Customer list
                     ...
Expertise

                          Customer Access

                          Expertise
                            Prod...
Market/Business Plan

                          Customer Access
                          Expertise

                     ...
Commitment

                          Customer Access
                          Expertise
                          Market...
Prove the value

                          Take a few minutes to identify evidence that
                          demonstr...
At this point you know:

                          Market you are going after
                          Your customer valu...
Partnering Wisdom

                          Follow a proven partnering process
                          Good sponsorship...
More Partnering Wisdom

                          70% of an Alliance Manager’s work is internal
                          ...
Top Strategies
for Launching a
New Alliance
    Presented by:
    Gerry Dehkes, Managing Partner
    ProPartnering
    Ema...
New Alliance Strategies
                                        Partner 2
                                        Partner ...
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Top Strategies For Launching A New Alliance

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How do define an alliance strategy. Ten rules for alliance success.

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Top Strategies For Launching A New Alliance

  1. 1. Top Strategies for Launching a New Alliance Presented by: Gerry Dehkes, Managing Partner ProPartnering Email: dehkes@propartnering.com Tel: 1 908 894 8061
  2. 2. Presentation Objective: Ensure clarity and alignment around alliance goals and strategy; Develop guidelines for working effectively together Understand the importance of communication, commitment and trust to alliance success New Alliance Strategies © Copyright 2010 Introduction Professional Partnering Services, LLC 2
  3. 3. Planned topics for our session: Why partner? Defining our partnering needs Ten partnering suggestions New Alliance Strategies © Copyright 2010 Introduction Professional Partnering Services, LLC 3
  4. 4. What is Strategy? strategy n., pl. -gies [Fr stratégie <, generalship: see STRATAGEM] 1 a) the science of planning and directing large-scale military operations, specif. (as distinguished from TACTICS) of maneuvering forces into the most advantageous position prior to actual engagement with the enemy b) a plan or action based on this 2 a) skill in managing or planning, esp. by using stratagems b) a stratagem or artful means to some end Also, esp. for sense l, stra·tegics n.pl New Alliance Strategies © Copyright 2010 Introduction Professional Partnering Services, LLC 4
  5. 5. Why Partner? Give Customers what they want while doing only what you want! New Alliance Strategies © Copyright 2010 Why Partner? Professional Partnering Services, LLC 5
  6. 6. Make / Buy / Ally Matrix Invest High Ally & Make Make Med Ally Ally Make Low Buy Buy Buy Low Med High Strategic Importance of Activity Competence Compared with the Best in the Industry New Alliance Strategies © Copyright 2010 Make/Buy/Ally Professional Partnering Services, LLC 6
  7. 7. Successful partnering is about having the right partners taking the right actions on our behalf. New Alliance Strategies © Copyright 2010 Identifying The Right Partners Professional Partnering Services, LLC 7
  8. 8. The Alliance 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 New Alliance Strategies 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? New Alliance Strategies Nurture the relationship © Copyright 2010 Define Partnering Needs Professional Partnering Services, LLC 9
  10. 10. Right Actions What are the right actions? Value Delivery System Tasks or functions that need to be performed Role players (Our organization and one or more others) Who “Owns” each function; who plays a supporting role? What combination of roles make sense, i.e. a potential partner exists that could capably perform that combination of roles? New Alliance Strategies © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 10
  11. 11. 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 New Alliance Strategies © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 11
  12. 12. Product/Offer/Solution 1. Develop a product/offer/solution Component products Testing Certification / approval Services intellectual property Reputation 2. Generate Demand (Sell) 3. Fulfill Demand (Deliver) New Alliance Strategies 4. Assume Risks © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 12
  13. 13. Generating Demand 1. Develop a product/offer/solution 2. Generate Demand (Sell) Create awareness Generate & qualify leads Manage account / sales strategy Create & present proposal Negotiate contract / take order 3. Fulfill Demand (Deliver) New Alliance Strategies 4. Assume Risks © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 13
  14. 14. Fulfilling Demand 1. Develop a product/offer/solution 2. Generate Demand (Sell) 3. Fulfill Demand (Deliver) Manage project Ship, install, and test Train the Customer Support (Tiers 1, 2, & 3) Invoice and collect New Alliance Strategies 4. Assume Risks © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 14
  15. 15. Assuming Risks 1. Develop a product/offer/solution 2. Generate Demand (Sell) 3. Fulfill Demand (Deliver) 4. Assume Risks Development investment risk Inventory risk Warranty risk Customer financing risk New Alliance Strategies © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 15
  16. 16. Role assignment or Who does what? Owner: Owns/is responsible for the function and the results—One and only one Owner for each step Support role: Performs all or part of the function for the Owner Tool provider: Provides tools, methodology and/or information to assist Owners and Supporters in performing a function Optional player: May play Support role in certain, defined situations New Alliance Strategies © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 16
  17. 17. New Alliance Strategies Us Partner 2 Partner 1 Component products Testing Value Delivery System Certification / approval Solution Services intellectual property Reputation Create awareness Generate & qualify leads Manage account / sales strategy Create & present proposal © Copyright 2010 Negotiate contract / take order Generate Demand Professional Partnering Services, LLC Manage project Ship, install, and test Train the Customer Support (Tiers 1, 2, & 3) Fulfill Demand Simple VDS Map Invoice and collect Development investment risk Inventory risk Warranty risk Assume Risks Customer financing risk 17
  18. 18. Real-life impact The invisible ISV partner Just another undifferentiated partner Grabbed attention through credible plan Ignoring the real sales process Focused on the technology partners But services drove the sale The incomplete partner Needed a partner to sell and deliver The chosen partners could only sell New Alliance Strategies © Copyright 2010 Identifying The Right Partners Professional Partnering Services, LLC 18
  19. 19. Defining Your VDSM One and only one owner per function Consider and keep role player detail consistent (company, department, individual role player) Look for communication gaps Look for role conflicts Are roles and role combinations reasonable, implementable, etc? Can you find partners who will play these roles? New Alliance Strategies © Copyright 2010 Value Delivery System Professional Partnering Services, LLC 19
  20. 20. Desired Partner Capability Define: We want a partner to have the organizational ability to play their roles—people, skills, systems, geographic or market coverage, etc. Are they or can they be trained/prepared to perform their roles? Are they or can they be motivated to perform their roles? Can we find one partner to do these roles or New Alliance Strategies do we need more than one? © Copyright 2010 Desired Partner Profile Professional Partnering Services, LLC 20
  21. 21. Beyond “Doing the right actions” Beyond being able to perform the needed roles, the “Right Partner” should be: A good compatibility/cultural fit A good strategic fit New Alliance Strategies © Copyright 2010 Desired Partner Profile Professional Partnering Services, LLC 21
  22. 22. Right Partner: Compatibility/Cultural Fit Define how well your partner(s) needs to complement or be compatible with your organization’s Finances and Financial approach Product, product portfolio and technology Markets and Marketing messaging Management approach (most important area!) Partnering experience and success New Alliance Strategies © Copyright 2010 Desired Partner Profile Professional Partnering Services, LLC 22
  23. 23. Right Partner: Strategic Fit Beyond being a good partner for the immediate set of opportunities, define how: The desired partner needs to fit with your organization’s total product portfolio, markets and business approach. The partner should fit with the rest of your partner portfolio. The partner will be a good fit as your organization grows, evolves or changes. New Alliance Strategies © Copyright 2010 Desired Partner Profile Professional Partnering Services, LLC 23
  24. 24. We have the Right Partner: Between us, we can do all that is needed Our partner is or can be trained and motivated to perform the roles agreed We have compatible and complementary cultures Our partner fits with our other partners, our other businesses and will likely be a good fit over the expected life of the alliance. New Alliance Strategies © Copyright 2010 Desired Partner Profile Professional Partnering Services, LLC 24
  25. 25. Partner Value Proposition Understand how partners make a partnering decision Value experiences that attract potential partners Provide evidence that the potential partner will get the value promised. New Alliance Strategies © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 25
  26. 26. Making the partnering choice Decision-makers maximize expected value Value happens as a result of “experiences” We cause something to happen in the life of the partner The partner gets value from that experience E.g. Our sales people promote their product, the customer buys it and the partner gets sales. Expected value The perceived likelihood that the value promised will be realized—based on evidence and judgment New Alliance Strategies © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 26
  27. 27. Value can be… Organizational Sales, Profits, Market Share Products, Technology, Market Coverage Personal Commissions, bonuses Political advantage, reputation Confidence, risk avoidance New Alliance Strategies Public, Private, Sub-conscious © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 27
  28. 28. These experiences attract partners: Customer Access Expertise Market/Business Plan Commitment New Alliance Strategies © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 28
  29. 29. Customer Access Customer Access Customer list Recognition/reputation Decision-makers Influencers Expertise Market/Business Plan New Alliance Strategies Commitment © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 29
  30. 30. Expertise Customer Access Expertise Product/technology Market/sales Operational Certification/Government approval Market/Business Plan New Alliance Strategies Commitment © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 30
  31. 31. Market/Business Plan Customer Access Expertise Market/Business Plan Thought through Reasonable Win/Win is clear Clear roles defined New Alliance Strategies Commitment © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 31
  32. 32. Commitment Customer Access Expertise Market/Business Plan Commitment To the industry To the joint business or market plan To partnering and the partnership New Alliance Strategies © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 32
  33. 33. Prove the value Take a few minutes to identify evidence that demonstrates your organization’s attractiveness to a desirable partner. Choose one of the four value experience elements: Customer Access Expertise Market/business plan Commitment Share with the group New Alliance Strategies © Copyright 2010 Partner Value Proposition Professional Partnering Services, LLC 33
  34. 34. At this point you know: Market you are going after Your customer value proposition Roles your organization and your partner will play Profile of your desired partner Value your partner will get from New Alliance Strategies partnering with your organization © Copyright 2010 Defining Partnering Needs Professional Partnering Services, LLC 34
  35. 35. Partnering Wisdom Follow a proven partnering process Good sponsorship is crucial—don’t care more about an alliance than your sponsor does Build the alliance at the Executive level—sit them side by side at the table 90% of the work happens after the deal is signed Conflicts are opportunities to prove the relationship New Alliance Strategies © Copyright 2010 Partnering Wisdom Professional Partnering Services, LLC 35
  36. 36. More Partnering Wisdom 70% of an Alliance Manager’s work is internal Alliance risks come 10% from Finances 10% from Product 20% from Markets 60% from Management and People Know how your partner gets paid Only partner with people you’d have over to dinner with your family Define your partnering needs first New Alliance Strategies © Copyright 2010 Partnering Wisdom Professional Partnering Services, LLC 36
  37. 37. Top Strategies for Launching a New Alliance Presented by: Gerry Dehkes, Managing Partner ProPartnering Email: dehkes@propartnering.com Tel: 1 908 894 8061
  38. 38. New Alliance Strategies Partner 2 Partner 1 Our Mktg Our Sales Our Admin Our Services X Our Prod Mgt X Component products X Testing Aligning the Organization 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 Define roles X Manage project X Ship, install, and test X Train the Customer X Support (Tiers 1, 2, & 3) in actionable detail Fulfill Demand X Invoice and collect X X Development investment risk X Inventory risk X Warranty risk Assume Risks X Customer financing risk 38

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