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Business Partners Alignment

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  • 1. “The partnership is two way street. You’re depending on the partner to supply the expertise you lack” Cynthia Griffin, American Business Journalist ENHANCING BUSINESS PARTNER ALIGNMENT Lansana Sakho Directeur Général http//www.experts-visions.com experts@experts-visions.com
  • 2. I spent over 20 years in large multinationals (Coca-Cola, Colgate Palmolive, Philip Morris, SC Johnson ...) They all have very challenging business model ….. Business partner (distributors, bottlers…) is required on the ground… Strategies & tactics are designed by multinationals (suppliers). Business partner’s role is transform those tactics into day to day operational actions under suppliers ‘supervision’ : EXECUTION To make things happen, you do need basics rules and take into account the interests of all parties.. Everything is about ALIGNMENT. Ideas that I’d like would share.
  • 3. THIS IS ABOUT ….. • Relation between suppliers and business partner • Business partner’s Alignment within suppliers’ strategy to facilitate execution The company to-go for providing added value to your business 3
  • 4. BRUTAL FACTS ….. Usually, suppliers that use ‘intermediate’ to get into markets do not have capability to fully realise their potential as their business is constrained by: A partners’ culture of selling only “what goes fast” A fragmented ‘partners system’, containing too many non-aligned partners A sporadic shortages of production and distribution capacity & capability A lack of skilled associates within the suppliers system The company to-go for providing added value to your business 4
  • 5. For these reasons suppliers should our focus is on... DISTRIBUTORS ARCHITECTURE INVESTMENT ALIGNMENT The company to-go for providing added value to your business 5
  • 6. ALIGNMENT What We Have Learned • Alignment means different things to different people • From the highest level, System Alignment is one of the most important topics to spend time on if you believe that it brings competitive advantage The company to-go for providing added value to your business 6
  • 7. ALIGNMENT What undermines Alignment…… • A reluctance to accept that both partners in the system must make a buck! • A perception that one side of the partnership is more effective than the other • Lack of agreed performance indicators & trust • Not having shared vision and destination • Not having shared goals, strategies and plans • No ongoing dialogue The company to-go for providing added value to your business 7
  • 8. We’ve determined that what needed is a simple framework to operate in… The company to-go for providing added value to your business 8
  • 9. FRAMEWORK FOR ALIGNMENT SYSTEM Five key elements of System Alignment. 1.Common Destination System Alignment The company to-go for providing added value to your business 9
  • 10. Common Destination, Goals and Strategies GUIDING PRINCIPLES... Operate with a three-year rolling business plan agreed upon at all operating levels Develop that plan together (with the partner) Execute that plan together ... Together make it happen Pamojoja tutashinda The company to-go for providing added value to your business 10
  • 11. FRAMEWORK FOR ALIGNMENT SYSTEM Five key elements of System Alignment. 1.Common Destination 2.Clarity on how System system works Alignment The company to-go for providing added value to your business 11
  • 12. Common Destination, Goals and Strategies GUIDING PRINCIPLES... Understand our respective but interdependent roles • The supplier will primarily create demand • Business partner will primarily fulfill that demand Business Partner does play a secondary role in creating demand through in-outlet execution. Whilst the supplier will not act as “policemen” with the Business Partner, the plan will be to constantly contribute improving market execution The company to-go for providing added value to your business 12
  • 13. FRAMEWORK FOR ALIGNMENT SYSTEM Five key elements of System Alignment. 1.Common Destination 2.Clarity on how System system works Alignment 3.Supporting processes The company to-go for providing added value to your business 13
  • 14. Common Destination, Goals and Strategies GUIDING PRINCIPLES... • Operate with shared data • Conduct joint performance business reviews • Agree upon common measurement systems for business performance • Agree upon capacity and capability • Reward and incentivise your people in a similar yet appropriate way The company to-go for providing added value to your business 14
  • 15. FRAMEWORK FOR ALIGNMENT SYSTEM Five key elements of System Alignment. 1.Common Destination 2.Clarity on how System system works Alignment 3.Supporting 4.Market processes Opportunities The company to-go for providing added value to your business 15
  • 16. Common Destination, Goals and Strategies GUIDING PRINCIPLES... • See opportunities, not problems • See “where your brand is not” • Develop plans to take immediate advantage of opportunities • EXECUTE, EXECUTE, EXECUTE those plans -- with a passion • Do not tolerate competition The company to-go for providing added value to your business 16
  • 17. FRAMEWORK FOR ALIGNMENT SYSTEM Five key elements of System Alignment. 1.Common Destination 2.Clarity on how 5.Trust System system works Alignment 3.Supporting 4.Market processes Opportunities The company to-go for providing added value to your business 17
  • 18. Common Destination, Goals and Strategies GUIDING PRINCIPLES... • Maintain regular dialogue at all levels • That dialogue should be based on common objectives, grounded in fact, and conducted with an openness to each others’ ideas • Do not have hidden agendas • Work for your mutual benefit • Do not be concerned with credit and blame The company to-go for providing added value to your business 18
  • 19. “The first step in taking a company from good to great would be to set a new direction, a new vision and strategy for the company, and then to get business partners committed and aligned behind that new direction” Jim Collins ‘Good to Great’ How can Alignment with your partners enhance your business results? The company to-go for providing added value to your business 19

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