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In partnership,
there is strength
An Office of Eli Lilly and CompanyAn Office of Eli Lilly and Company E-mail stwait@lilly...
5Quarter 1, 2014
7Quarter 1, 2014
Our Members Expect a Growing Base and F...
Themagazineof the
8 Strategic Alliance Magazine
For more information on Vantage Partners contact us at:
+ 1 617 354 6090 |
Vantage Partners is th...
TheASAPHandbookofAllianceManagement:APractitioner’sGuide, 3rd edition, is
the only compendium of alliance management pract...
11Quarter 1, 2014
With pharma companies outsourcing
more and more critical clinical and
nonclinical development work every...
12 Strategic Alliance Magazine
half-day track covering issues in channel
management, informal “un-conference”
sessions, th...
13Quarter 1, 2014
position in its home country and resist
AB InBev’s assault.
Meanwhile, drink up, amigos—and
Strategic Alliance Magazine14
and physical, can improve the overall
effectiveness of meetings worldwide,”
said American Ex...
More than 100 partnerships and alliances
More than 10 global strategic alliances
critical components for getting allies on the same page:
1. Complementary goals,
2. Agreed-upon metrics,
3. Jointly develo...
18 Strategic Alliance Magazine18 Strategic Alliance Magazine
19Quarter 1, 2014
Press releases, news articles, and miscellaneous commentary in
various public forums can often be breedi...
Stuart Kliman, CA-AM, founding
partner at Vantage Partners.
Brooke Paige, CSAP, principal of
John DeSarbo, managing principal
of channel strategy and management
practice at sales and marketing
consultancy ZS Associa...
that Medicis did not have a process for such a situation. Andrews
23Quarter 1, 2014
pany, and they in fact are, now they’re stuck because if they
don’t comment, they just commented.’”
24 Strategic Alliance Magazine
DilemmaFinding the Right Balance
Makes It Easier to Arrive at an
“Well, honestly, Doc… I’m not sure you can
help me with my trust issues.”
Whereas the c...
27Quarter 1, 2014
28 Strategic Alliance Magazine
theSunThe Alliance
Management Community
Will Gather and
“Pass the Talking Stick”...
Quarter 1, 2014 29
Never fear. Your friends, colleagues, peers, and...
Strategic Alliance Magazine30 Strategic Alliance Magazine
Monday evening there will be a peer-to-peer meet-up, a
no-host e...
31Quarter 1, 2014
Another session in this track will be
“Changing the Channel: Succeeding as
a Channel Manager in the Age ...
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
Alliances: The control-trust dilemma
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Alliances: The control-trust dilemma


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Alliances: The control-trust dilemma

  1. 1. In partnership, there is strength An Office of Eli Lilly and CompanyAn Office of Eli Lilly and Company E-mail for more information. Since 1999, Lilly’s Integrated Alliance Management professionals have helped companies maximize the value of partnered assets. With strong roots in governance and relationship management, we excel at problem solving and value-chain integration at all stages of discovery, development, and commercialization. As an organization and as individuals, we are committed to the success of every partnership we manage. By staying true to mutual goals—and by doing everything necessary to achieve them—we help partners realize the value inherent in every strategic alliance.
  2. 2. 960TurnpikeSt,Canton MA02021USA Tel:+1-781-562-1630 FindYourNextSuperstar AllianceProfessional TheASAPCareerCenter TheGatewaytotheBestAlliance,Partnership,Collaboration, andChannelProgramManagers ASAP members, save significant money on job postings—contact us now for your discount code! Find the candidates who: ▶ Possess the skills to steer your alliances, partnerships, collaborations, and channel engagements to fruition ▶ Are CA-AM and/or CSAP–certified ▶ Fit your company’s strategic needs Individual, Corporate, and Global Members, contact Lori Gold or Michele Yudysky to receive your discount code and post your job opening at the ASAP Career Center today! LoriGold MicheleYudysky Senior Manager of Membership Services Membership Coordinator +1-781-562-1630 ext 203 +1-781-562-1630 ext 209 “I’ve added ASAP certification as something I look for; it’s in our official job postings for any position we have.” —Gerald J. Dehkes, CSAP, director of alliance management at KPMG LLP
  3. 3. TheBestAlliance ManagementTraining YouWillFind–Certified! CertificationWorkshops Comingtothe2014ASAPGlobal AllianceSummit For more information, or to register for one of these workshops or the CSAP Exam, please contact Jennifer Silver at +1-781-562-1630 ext. 205 or CA-AM&CSAPExam PreparatoryWorkshops Monday,March10,8:30am–2:30pm TheTalkingStickResort Scottsdale,Arizona,USA CSAPExam Thursday,March13,9:00am–12:00pm TheTalkingStickResort Scottsdale,Arizona,USA CSAP CA-AM ASAPGLOBAL ALLIANCE SUMMIT MARCH 10-13,2014 SCOTTSDALE
  4. 4. 5Quarter 1, 2014 BringingKnowledge WhereIt’sNeeded OurMembersExpectaGrowing BaseandFreshContent—andWe’re FindingNewWaystoBringIttoThemin2014 ByMichaelLeonetti ONE OF THE EVERGREEN GOALS OF OUR ASSOCIATION is to grow our membership and spread our community’s knowledge to the fast-growing number of organizations that sorely need alli- ance management and partnering expertise—and in turn benefit from these new members’ wisdom. When we think about expanding our base, the discussion has tended to revolve around newindustries.Whileoureffortstobreakinto newverticalshavebeencritical—peoplefrom engineering, insurance, sales and marketing firms,oilandgas,engineeringandconstruc- tion, and consumer packaged goods, among others, have joined ASAP over the past year and a half—we must not overlook the tre- mendous growth opportunities that exist in our traditional segments. For years, the IT industry has relied heav- ily on channel partners (i.e., “sell-through” relationships) to bring in large volumes of revenues. While the most fruitful channel partner relationships have always been built on collaboration, too often success has been limited by a transactional view. Today, the impact of new “SMAC” technologies (social media, mobile, big data analytics, and cloud) and new business models is demanding that technology providers and resellers work more closely. Many in channels now have to not only rethink their sales goals, but also re- evaluatetheskillsrequiredtoachievethem— and whether their staffs truly have them. ASAP has been at the forefront of educating and providing a forum for those individu- als who make business partnerships suc- cessful. We have consistently provided tools and methodologies that partnership-based businesspeople will need in order to thrive in the years to come. The 2014 ASAP Global Alliance Summit program contains a track of powerful sessions dedicated to channels and their changing landscape. Our chapters are looking into programming around this topic for the coming year. ASAP Global is also examining the possibilities for deliver- ing other content devoted to this segment well after the Summit through webinars and various education channels. In addition to providing content that is relevant to many of our current IT-industry members, who may focus primarily on their strategic alliances, we hope our channel efforts, which are fo- cused on reaching or exceeding sales objec- tives by mastering the critical success fac- tors of partnership management, will bring perspectives from new faces, something that ASAP colleagues of all industries have cited as a major benefit of membership ever since I joined the association in 2002. TrainingforNew AllianceManagers ASAP has always prided itself on being the place alliance management professionals of allexperiencelevelsturnto.Thisyear,weare expanding our offerings for those learning theropesinalliancemanagement.Moreand more companies are establishing brand-new alliance management divisions, while sev- eralthathavehadpartnershipoperationsfor some time are expanding their groups, ne- cessitating the education of new team mem- bers making their first foray into the profes- sion. The leaders of ASAP Global Member Eli Lilly and Company’s alliance manage- ment practice, one of the longest-standing and most accomplished in the history of the discipline, will deliver ASAP’s first-ever “In- troduction to Alliance Management Work- shop” at the ASAP Global Alliance Summit in March. Thanks to the generosity of Eli Lilly, which is sharing its talent and intel- lectual property with ASAP, attendees will learnthebasicsofthestart-up,maintenance, andwindingdownofalliances,andwillwalk awaywithcasestudies,tools,andtechniques that they can apply as they learn their craft. As with channel management program- ming, we will look for ways to support this critical group of members throughout 2014. We always have to bring fresh thinking to our ongoing tasks. Our channels and entry- level alliance programs will ensure that we continue to meet our members’ core needs. I wish you and your partnerships great success in 2014—and hope to see you at our annual ASAP Global Alliance Summit March 10–13 in Scottsdale, Ariz., USA. MichaelLeonetti, CSAP,president andCEOofASAP, isexecutive publisherof StrategicAlliance Magazine. upfront
  5. 5. Quarter1,2014 Themagazineofthe AssociationofStrategicAllianceProfessionals ANASAPMEDIAPUBLICATION EDITORIALTEAM MichaelLeonetti,CSAP ExecutivePublisher +1-781-562-1630ext.201 JohnW.DeWitt, Publisher +1-978-544-1866 JonLavietes, EditorialDirector +1-415-572-4408 MichaelBurke, Editor-in-Chief +1-413-665-4958 GregCaulton, CreativeDirector +1-413-461-7096 GaryLee, OnlineMediaManager +1-978-544-1866 RikRolski, SponsorshipSalesDirector +1-978-544-1866 MichelleDuga, SponsorshipCoordinator +1-978-544-1866 EmilyBayard, ImageResearcher +1-413-461-7096 MikeRuocco, GraphicDesigner +1-978-544-1866 ASAPSTAFF MichaelLeonetti, PresidentandCEO +1-781-562-1630ext.201 LoriGold, DirectorofMembershipServices +1-781-562-1630ext.203 MicheleShannon,CA-AM,CMP SeniorMeeting&EventManager +1-781-562-1630ext.204 KimberlyT.Miller, MarketingDirector +1-781-562-1630ext.208 BrendanWard, AdministrativeSupport +1-781-562-1630ext.200 DianeLemkin, AccountingManager +1-781-562-1630ext.206 JenniferSilver, CertificationCoordinator +1-781-562-1630ext.205 MicheleYudysky, MembershipCoordinator +1-781-562-1630ext.209 © Copyright 2014 Association of Strategic Alliance Professionals. All Rights Reserved. 18n PRMISHAPS AMatter ofPerspective Misaligned Press Releases and Rogue Media Statements Can Make for Public-Facing Crises in an Alliance By Jon Lavietes Few would dispute that just about any alliance will come with unforeseen challenges and tense moments over its lifespan. Fighting fires is tough enough internally, so imagine how much harder it is when the rough patches in your partnership become visible to the public at large. 24n BOOK EXCERPT TheControl-TrustDilemma Finding the Right Balance Makes It Easier to Arrive at an Effective Alliance Design ByArd-PieterdeMan InanexcerptfromhisnewbookAlliances:An ExecutiveGuidetoDesigningSuccessfulStrategic Partnerships,ourguestauthoroutlinestwo theoriesforalliancedesign:1)thecontrolview,and 2)thetrustview.Oneofthemostfundamental questionsthatneedstobeansweredwhen designinganallianceis:Whatistherightbalance betweencontrolandtrustgiventhe specificaimsthisallianceseeks toachieve? inthisissue Strategic Alliance Magazine6
  6. 6. ASAPGLOBAL ALLIANCE SUMMIT MARCH 10-13,2014 SCOTTSDALE 7Quarter 1, 2014 5n UPFRONT Our Members Expect a Growing Base and Fresh Content— and We’re Finding New Ways to Bring It to Them in 2014 11n COLLABORATIVEBUZZ AllianceNewsBriefs | PeopleintheNews | ASAP & ASAP Partner Calendar of Events |ASAP Chapter Updates Regular Features: 15n ASAPMEMBERSPOTLIGHT A Broader, More Aligned View A Revamped Alliance Practice Has Unisys Taking a Longer-Term, Strategic Approach to Partnerships By Jon Lavietes 33n EDITORIAL SUPPLEMENT RoleModeling AStructuredApproachtoDevelopingGreatAllianceManagers By Rachelle E. Hawkins, CA-AM, Joanna L. C. May, CA-AM, David S. Thompson, CA-AM, and Steven E.Twait, CSAP Alliance management is a composite discipline that requires skills from a range of functions, including project management, human resources, finance, legal, engineering, IT, and business development. This knowl- edge needs to be complemented with a comprehensive combination of interpersonal, professional, and alliance- specific competencies. According to the authors, the good news is that these skills can be acquired, applied, and enhanced over time to achieve the alliance man- ager’s ultimate goal: superior business results for the partnership. Sponsored by Eli Lilly & Co. 28n 2014ASAP GLOBAL ALLIANCE SUMMIT PREVIEW JoinUsatOurPlaceintheSun The Alliance Management Community Will Gather and “Pass the Talking Stick” in Arizona This March By Michael Burke This year’s ASAP Global Alliance Summit will bring together alliance management profess- ionals and thought leaders from around the world to convene in Scottsdale, Ariz., March 10–13, for the best in alliance manage- ment programming, professional development, and networking opportunities—not to mention desert sun, outdoor and indoor fun, all-new conference tracks and sessions, and—a marshmallow contest?
  7. 7. Quarter1,2014 Themagazineof the AssociationofStrategicAllianceProfessionals 8 Strategic Alliance Magazine ASAPEXECUTIVECOMMITTEE RussBuchanan,CSAP ASAPChairmanoftheBoard VicePresident,WorldwideAlliances, XeroxCorp. JackPearson,CSAP ASAPViceChairman ManagingDirector&ChiefAllianceOfficer, AllianceDevelopmentInternational,LLC HarryAtkins,CSAP ASAPTreasurer SeniorDirector,CorporateDevelopment, Dr.Reddy’sLaboratories,Inc. BrianHandley,CA-AM ASAPSecretary BusinessDevelopment,EmersonCorp. ChristineCarberry,CSAP Chairman,ASAPKnowledgeBase& ResearchCommittee VicePresident,Program&Alliance Management,EnVivoPharmaceuticals SnehalDesai,CA-AM Chairman,ASAPMarketingCommittee GlobalMarketingDirector, TheDowChemicalCompany GrifMorrel,CSAP Chairman,ASAPChapterPresidents’Council SeniorManager,SalesBusinessDevelopment andOperations,CiscoSystems,Inc. AlistairPim,CSAP Chairman,ASAPProfessional DevelopmentCommittee VicePresident,GlobalStrategicAlliances, SchneiderElectric JanTwombly,CSAP Chairman,ASAPProgramsCommittee President,TheRhythmofBusiness,Inc. Strategic Alliance Magazine is published quarterly. Publisher is The Association of Strategic Alliance Professionals,960 TurnpikeStreet,Canton,MA02021,+1-781-562-1630.Sub- scriptionsare$99foroneyear,$189fortwoyears.Canadian subscriptions are $149 per year. All other international sub- scriptions are $199 (using air mail). Subscription inquiries: +1-781-562-1630. Periodicals postage is paid in Chicopee, MA,andadditionalmailingoffices.Postmaster:Sendaddress changestoSTRATEGICALLIANCEMAGAZINE,960Turnpike Street,Canton,MA02021.Copyright2013,TheAssociationof StrategicAllianceProfessionals.Nopartofthispublicationmay bereproduced,storedinanyretrievalsystem,ortransmittedin anyformorbyanymeans,electronic,mechanical,photocopy- ing,recording,orotherwise,withoutthepriorwrittenpermis- sionofthepublisher.Forreprints,pleasecontactTheAssocia- tionofStrategicAllianceProfessionalsat+1-781-562-1630. 50n THECLOSE CollaborationforSmarties As Collaboration Sweeps Through the World of Business, What Does the Future Hold for the Profession of Alliance Management? By John W. DeWitt Next issue’s main feature will attempt to foretell what the future of the alliance management profession has in store. Here is a sneak peek at some of the insights shared by a few of the alliance community’s brightest thought leaders. 45n ALLIANCE CHAMPION AlliancesUndertheHood Keith Gamble Uses a Mix of Technical Savvy and People Skills to Bring Big IT Players Together and Drive EMC’s Technology Alliances to the Finish Line |ByMichaelBurke Keith Gamble of EMC has parlayed a technical background as an engineer into a decade-long career as senior alliances manager at the Massachusetts-based IT firm. In the context of his job, the art and science of alliance management involves blending technological know-how and “counseling” skills to get everyone working together to drive joint solutions forward. 41n YOURCAREER InfluencingWithoutAuthority Even Without the Power to Command, an Alliance Manager Can Elicit Positive Actions from Others for the Benefit of the Partnership|ByJonLavietes The ability to influence people within one’s own organization and at partner companies is one of the alliance professional’s most important skills. At any given time, an alliance manager might turn to a champion, a committee, or a good old-fashioned sales pitch to nudge people to serve the partnership’s interests. inthisissue
  8. 8. For more information on Vantage Partners contact us at: + 1 617 354 6090 | Vantage Partners is the world’s leader in helping companies achieve breakthrough business results by transforming the way they negotiate and manage relationships with key business partners. Culture People OrganizationalS tructure M e thodology Alliance Portfolio Management Individual Alliance Management Strategy Results
  9. 9. TheASAPHandbookofAllianceManagement:APractitioner’sGuide, 3rd edition, is the only compendium of alliance management practices, principles, and current professional standardsthatputs alltheinformationyouneedinoneunique,indispensableresource. This new publication provides: n An unequaled body of knowledge for alliance professionals at every level n A substantive update and revision of previous editions n All-newmaterial,includinganewsectiononemerging topicsinalliancemanagement For your career, your alliances, and your company’s alliance management practice, you can’t affordtobewithout TheASAPHandbookofAllianceManagement:APractitioner’sGuide. ORDERYOUR COPYTODAY* RECEIVE10%OFF! $299.99 for nonmembers. Upto60%discountforASAPMembers. For more information or to order, go to * 10%discountoffallHandbookordersreceivedbyMarch31,2014. DiscountCode=handbook-14q1 960 Turnpike St, Canton MA 02021 USA Tel: +1-781-562-1630 Alliance Management? WewrotethebookonAllianceManagement! Now,geta 10%DISCOUNT offallHandbookorders receivedbyMarch31,2014 DiscountCode=HANDBOOK-14Q1
  10. 10. 11Quarter 1, 2014 With pharma companies outsourcing more and more critical clinical and nonclinical development work every year to CROs, the kinds of relation- ships that make up Covance’s bread and butter are taking on a greater element of strategic partnership, more intimate and intertwined than traditional, purely transactional relationships. “Today clients seek partners who offer anticipatory thinking, deliver insight- ful solutions, and operate as a seamless extension of their own team,” said John Watson, president of strategic partner- ing and chief commercial officer for Covance. “Our goal is to deliver this type of consultative and collaborative experience to every client, whether large pharma or emerging biotech, with every interaction. ASAP’s extensive resources will further enhance our existing al- liance management capabilities and help us establish and expand enduring relationships with all our clients.” Covance is a full-service drug devel- opment company, with capabilities spanning both early- and late-stage development. In addition to helping de- velop 46 of the 50 top-selling drugs, and 82 percent of all FDA-approved drugs in 2012, Covance has also pioneered the design of landmark alliances between CROs and the pharmaceutical industry. “Across the biopharmaceutical industry, pipelines are becoming increasingly dependent on partnerships, particularly in the clinical phases of the drug devel- opment cycle,” said Michael Leonetti, president and CEO of ASAP. “Compa- nies like Covance turn to ASAP to pro- vide their personnel access to the tools, training, and networking opportunities with the profession’s most respected thought leaders that will ensure their collaborations achieve the organization’s most pressing objectives. We are proud to play an important role in helping Covance maintain its successful hand- in-hand customer relationships.” The company is already making the most of its ASAP membership in a number of ways. It is significantly increasing the number of professionals certified in current alliance manage- ment practices and methodologies, sending its personnel to leading global ASAP events such as the ASAP Bio- Pharma Conference and ASAP Global Alliance Summit, and providing repre- sentation on ASAP’s board to help chart the direction of the organization and the profession. In addition, as an ASAP Global Member, Covance will have the opportunity to add executives from its partner organizations to its member- ship roster, thereby giving them access to the plethora of ASAP benefits and resources, including Strategic Alliance Magazine, which profiled Covance vice president of alliance management Andy Eibling in the Q4 2013 issue, and Co- vance’s alliance program in the Member Spotlight feature of the Q4 2012 edition. ASAP News TheSummit’sAlmost Here—Don’tDelay! Registration for the 2014 ASAP Global Alliance Summit continues—but it’s nearly here, so if you haven’t registered yet, now’s the time. From March 10 to 13, 2014, hundreds of alliance manage- ment professionals and thought leaders from all over the world will descend on the Phoenix area to convene at the Talking Stick Resort in Scottsdale, Ariz., for this annual must-attend event, by far the world’s largest annual gathering of leading companies and practitioners in the field of alliance management. (See Summit Preview, page 28.) The 2014 Summit will feature the usual top-notch programming, world-class networking, and professional de- velopment opportunities, including certification workshops and hands- on skill-building sessions. This year, however, the Summit will be enhanced with all-new content, including an introduction to alliance management workshop led by some of the profession’s pioneers from Eli Lilly and Company, a ASAP Welcomes Covance as a New Global Member By Jon Lavietes and Michael Burke THE CONTRACT RESEARCH ORGANIZATION (CRO) Covance, an ASAP Corporate Member for several years, has sharpened its alliance game and moved up to Global Member status, reflecting the company’s deep commitment to close collaborations with its customers, which range from large, global pharmaceutical companies and well-established biotechs to smaller, emerging biopharma organizations. CollaborativeBuzz
  11. 11. 12 Strategic Alliance Magazine half-day track covering issues in channel management, informal “un-conference” sessions, the First Annual Marshmallow Challenge, and much more. To register for the Summit or for more information, go to www.strategic-alli- NewCorporateMembers ComeOnboard ASAP is delighted to announce that the following new Corporate Members have joined the ASAP community: 360incentives Becton Dickinson (BD) Plantronics  SunGard Public Sector Uprise Co. Ltd Welcome to all our new members! ASAP and ASAP Partner Events 2014ASAPGlobal AllianceSummit Monday, March 10 – Thursday, March 13, 2014, Talking Stick Resort, 9800 E. Indian Bend Rd., Scottsdale, Ariz., USA (check mit for more information) Alliance News PeugeotandGM: ProgressorRegress? As 2013 came to an end, PSA Peugeot Citroen (PSA) and General Motors (GM) announced “further steps” in their ongoing strategic alliance. It’s a matter of opinion, however, whether recent moves represent a continuing forward march or a hasty retreat. The two companies’ joint press release stated that the “Alliance remains struc- tured around the main pillars of joint programs, purchasing, and logistics, fo- cused on Europe, and is extended into cross manufacturing.” It also confirmed “continued cooperation” on two vehicle programs based on Peugeot platforms: the B-MPV (multipurpose vehicle) and C-CUV (crossover-utility vehicle) programs. It was further noted that each company will build one vehicle for the other—the B-MPVs in GM’s plant in Zaragoza, Spain, and the C-CUVs in Peugeot’s plant in Sochaux, France. However, a Reuters report stated that the move represented a scaling back of the alliance, and in effect, GM was put- ting “a brave face on yet another setback for its efforts to seek growth in Europe through collaboration and partner- ships.” The report further noted that the two companies have canceled one joint vehicle project and said that “annual savings from sharing development costs on a raft of projects will now come to only $1.2 billion, rather than $2 billion.” One industry analyst quoted by Reuters opined that “joint ventures always start with overly ambitious targets,” adding that he estimated joint savings for Peu- geot and GM to amount to zero. “Partnerships can work, but it always takes much longer for the benefits to materialize,” the analyst added. The companies’ joint release said that Peugeot and GM “will simplify the joint governance of the Alliance and remove as a ground for terminating the Alliance the failure to achieve a minimum num- ber of cooperation programs within a specific time. They will also provide for a waiver of GM’s right to terminate the Alliance under certain conditions in the event certain parties take a stake in PSA, in which case such parties would support the Alliance and GM would vote any PSA shares it would then hold in favor of any such transaction.” “The Alliance between PSA and GM is based on a balanced approach. The vehicles of both manufacturers will be highly differentiated and fully consistent with their respective brand characteristics,” said Dr. Karl-Thomas Neumann, GM executive vice president and president, Europe. “The partners are now focused on execution of the Alliance while remaining open to new opportunities.” Still together, but thinking of seeing other people? DosCervezas,PorFavor: BeerBattlesBrewingin Guatemala Two of the world’s largest beer compa- nies are set to do battle for the hearts, minds, and palates of Guatemala’s cerveza drinkers, according to the Global Post. Thebiggestbrewer,Anheuser-Busch InBev,hasbeen“besieging”Guatemala’s nationalbeermaker,CerveceríaCentro Americana,“foryears,”theGlobalPost reported.Now,SABMillerPlc,theworld’s numbertwobrewer,andtheCervecería haveannouncedthattheyareforminga strategicallianceinGuatemala. Initially, the Cervecería will distribute only 355 ml bottles of Miller Genuine Draft, but the agreement may expand to include other Miller offerings. The family-owned company, which has struggled in recent years since its Guatemalan monopoly was broken in 2003 by the Brazilian division of Anheuser-Busch InBev, report- edly hopes to gain 20 to 25 percent of Guatemala’s premium beer market. AB InBev produces only one beer for the Guatemalan market, Brahva, a cheaper brew that competes with the Cer- vecería’s Gallo beer. But AB InBev has apparently been gaining market share in the country, and the Cervecería’s share of the market may have fallen to 70 percent since the breaching of its former monopoly. According to industry figures, SABMiller is the third-largest brewer in Latin America, behind AB InBev and Heineken. The Global Post report speculated that the Cervecería may be counting on Miller as a “white knight” that could use its “deep pockets and... thick portfolio of brands” to shore up the Guatemalan company’s weakened CollaborativeBuzz
  12. 12. 13Quarter 1, 2014 position in its home country and resist AB InBev’s assault. Meanwhile, drink up, amigos—and Salud! Tequila!DiddyGets theAllianceSpirit While we’re on the subject of liquid refreshment, premium drinks company Diageo and rapper, producer, actor, and entrepreneur Sean“Diddy”Combshave created a new joint venture that has ac- quired premium tequila brand DeLeón, as reported by the Associated Press, New York Post, Los Angeles Times, and liquor industry sources. The JV, a 50/50 global partnership between Diageo and Combs Wine Spirits, builds on the separate strategic alliance formed by Diageo and Combs Enterprises to develop the Cîroc vodka brand, noted for its neo–Rat Pack TV ad campaign featuring Diddy himself, a bevy of beauties, and a bunch of well-dressed buds partying in Vegas to the strains of Sinatra. Since the alliance began in 2007, according to liquor industry site The Shout, Cîroc has grown from just 50,000 cases a year to nearly 2 million. The acquisition of DeLeón will allow the brand to benefit from Diageo’s strong distribution network, supply chain, and marketing capability, as well as Diddy’s access to influencers and track record of marketing luxury lifestyle brands, according to Diageo. Diageo described DeLeón as “a 100 per cent [sic] blue weber agave boutique tequila brand with a loyal following in Hollywood and the U.S. music indus- try.” The tequila has five variants with suggested retail prices ranging from $120 to over $1,000. Diageo cut its ties with José Cuervo in 2012, so the Diddy deal should help the company return to a prominent position in North Ameri- can tequila, according to Diageo North America president Larry Schwartz. Diddy, who has been the public face of Cîroc since 2007, under a joint marketing and profit-sharing deal that has brought nearly a 40-fold rise in annual sales volumes for the brand’s products, said in aninterview,“WithCîroc,wedated.Now with DeLeón, we’re married. This deal is way better. This makes me a true owner.” In a separate interview, Diddy said, “The way I got introduced to [DeLeón] is that every place that I would go...any cool, real immersion type of spot, I would see it. Then I was in the movies one day and I’m watching Iron Man 2 and that’s all Iron Man had behind his bar. And I was like, ‘This thing is calling me, man.’ I’ve always had a dream to have a tequila. And I always wanted to acquire a company... this is a historic day for Sean Combs as a businessman. Jay[Z] got Ace of Spades, and today I got DeLeón. We up in here. We went from buying, supporting, to owning, you know?” As to brand marketing for DeLeón, Diddy said, “We’re taking our time, and we’ll work together, and we’re going to come up with a marketing plan. But it’s going to be very surgical, it’s going to be savvy, and it’s going to be totally different from Cîroc. We’re not just putting it on the assembly line.” TheGame’sAfootforMerck Big Pharma company and ASAP Cor- porate Member Merck is working with health gaming company Ayogo on a Type 2 diabetes initiative that is actually a game designed to benefit diabetes pa- tients, according to a story in FierceBio- techIT. In the game, dubbed the “Type 2 Travelers Project,” players create an avatar for themselves and then complete mini-games to win gold coins. The coins allow users to advance to the next part of the “world,” where more games and more coins await them. Interaction with the online diabetes community is a key purpose of the game, with players sharing their reasons for wanting to control the disease. The community aspect is also intended to help combat depression, an unfortu- nate aspect of dealing with diabetes, by lessening players’ feelings of isolation. “Our goal is to help diabetics get their condition under control. Users feel like they are getting gold for having fun but really they get it for engagement,” said Ayogo CEO Michael Fergusson in an interview with MedCity News. According to the FierceBiotechIT story, biopharma companies have begun looking at ways in which gamification of treatments might improve patient outcomes. Merck’s diabetes drug Januvia, for example, is partly dependent on patients’ sticking to the treatment regi- men and managing other aspects of their health. Boehringer Ingelheim, Novartis, and Sanofi have also reportedly con- tacted Ayogo for help with gamification projects, and Pfizer has recently signed a deal with Boston start-up Akili Interac- tive Labs to use a video game to diagnose early signs of Alzheimer’s disease. NiceMeetingYou— Virtually,ThatIs The meetings management division of American Express, American Express Meetings Events, is partnering with webcast provider NASDAQ OMX Cor- porate Solutions to provide clients with virtual and hybrid meeting solutions, according to The new offering, which is a bit of a mouthful—officially called American Express Meetings Events Multimedia Solutions powered by NASDAQ QMX Corporate Solutions—will connect virtual and physical events by distribut- ing live meeting content for companies worldwide via webcasts and webinars, online video content management, venue and location services, planning and logistics management, virtual meet- ing executions, online meeting catalogs, and production coordination. As a re- sult, it’s intended that American Express Meetings Events will be able to offer its clients a one-stop shop for physical and virtual meeting components. “By combining American Express’s keen understanding of how and when to employ virtual elements with NASDAQ OMX Corporate Solutions’ leading multimedia solutions, meetings owners, presenters, and attendees, both virtual
  13. 13. Strategic Alliance Magazine14 and physical, can improve the overall effectiveness of meetings worldwide,” said American Express Meetings Events vice president and general man- ager Issa Jouaneh. “Meetings organizers are chall­enged to reach critical audi- ences who do not attend in person. The creation of a virtual meetings strategy supported by policy can help compa- nies identify the right opportunities to deploy such tools to drive engagement, reach a wider audience, capture content, and achieve the greatest return on investment and experience.” DrugDeals:CVSand CardinalHealthinSupply ChainJV There’splentyofwheelinganddealing goingonintheglobaldrugwholesaling business.Asreportedinthesepagespre- viously,AmerisourceBergenhasalready partneredwithWalgreenandSwissdrug- storechainAllianceBoots;andMcKesson tried,butapparentlyfailed,tobuythe GermandrugwholesalerCelesio.Now, CardinalHealthhasallieditselfwithCVS Caremark,thelargestpharmacyprovider intheUnitedStates,accordingtoReuters, Bloomberg,andothersources. Cardinal and CVS aim to create an equal partnership to source generic drugs, which will officially launch on July 1, 2014. The goal is for the two to buy drugs more cheaply, with a joint announcement saying that they “will collaborate with generic manufacturers to develop innovative supply chain and purchasing strategies.” One analyst told Reuters that “this JV will likely be one of the largest global buyers of generics on the planet now.” Another analyst, meanwhile, told Bloomberg that the deal should save the two companies between $450 million and $600 million a year. “The topic du jour is finding friends along the drug supply chain and look- ing for ways to add value,” said Jennifer Lynch, an analyst with BMO Capital Markets, in an interview with Bloom- berg. “You’re taking two parts of the supply chain and putting them together and we’re hopeful it also allows them in some way, shape, or form to get creative on the delivery side as well in terms of finding efficiencies.” It’saCarpet,andanLED Light:PhilipsandDesso TaketheFloor ASAP Corporate Member Royal Philips has announced a partnership agreement with carpet maker Desso to develop solutions that combine LED lighting with light-transmissive carpet. The idea behind this innovation is to further unlock the potential of LED integration into surfaces and add a little excitement to interior design and space planning, the companies said in a statement. The solu- tion aims to transform the way people interact with information and their environment in offices, hotels, conference centers, and other public buildings. The LED light-emitting carpets should provide benefits in the areas of information, direction, inspiration, and safety, such as guiding people around buildings and toward safety exits; enhancing the interior ambiance of buildings by combining lighting and carpeting with design and color; and helping to declutter spaces by making information visible only when needed. The partnership is an agreement to work exclusively together in developing the markets in EMEA. In addition, a joint development agreement has been signed focusing on a seamless integration of the solution into new and existing build- ings. The product name will be revealed in 2014 as part of the full go-to-market launch, but Philips and Desso say they are already working on pilot projects in key markets. LillyPartners withProjectA.L.S. ASAP Global Member Eli Lilly and Company has entered into an agreement with the nonprofit Project A.L.S. to accelerate the development of potential therapies for amyotrophic lateral scle- rosis (ALS), also known as Lou Gehrig’s disease. As part of the agreement, Project A.L.S. will study molecules developed and studied preclinically by Lilly scientists for the treatment of cancer to assess their potential in the treatment of ALS. Research by Project A.L.S., a nonprofit aligned with leading academic medi- cal institutes and key opinion leaders across the globe, and led by Columbia University professors Tom Maniatis and Thomas Jessell, has uncovered novel data that identified a critical role in ALS disease progression for several inflam- matory signaling pathways that are also known to be associated with cancer. “The evidence demonstrating a potential role for these cancer-signaling pathways in the progression of ALS is compelling,” said Dr. Greg Plowman, vice president of oncology research at Lilly. “Lilly will provide well-characterized and selective molecules that we hope will help acc­ elerate the development of medicines for ALS.” Under the terms of the partnership, Project A.L.S. will select and screen molecules in Lilly’s oncology pipeline to establish whether these molecules show any therapeutic potential for ALS and inflammation. The financial terms of the deal were not disclosed. GoodHandsPeople: AllstateandINGinAlliance forAnnuities The Allstate Corporation and ING U.S. announced in December a strategic alli- ance that will enable Allstate to offer a full suite of fixed annuity product offerings issued by ING Companies to Allstate customers. The fixed annuity products are issued by ING USA Annuity and Life Insurance Company and ING Life Insur- ance and Annuity Company. “When Allstate Financial announced in July that we would no longer issue fixed annuities after 2013, we began searching Continuedonpage38 CollaborativeBuzz
  14. 14. $3.7billioninrevenues 22,500employees More than 100 partnerships and alliances More than 10 global strategic alliances UnisysinaFlash Quarter 1, 2014 15 A Revamped Alliance Practice Has Unisys Taking a Longer-Term, Strategic Approach to Partnerships ByJonLavietes WHEN DAN MURPHY TOOK OVER Unisys’s strategic alliances practice in early 2013, the technology industry was well into a major shift. Unisys, as it turns out, had completed a major transformation as well. The company had successfully transitioned through a period of financial stabilization and port- folio rationalization designed to capture emerging market op- portunities and grow. Its alliance team needed to shift its philoso- phy to keep up with this ever-rapid pace of change. Prior to Murphy’s joining, the strategic alliance department was organized to support the needs of the Unisys business units, with a focus on product/solution portfolio enablement and field sales engagement. The alliance team was managed with a business unit–centric philosophy, which at times led to partner relationships that didn’t fully leverage organizational/product capabilities that cut across multiple Unisys business units. Over the past year, Unisys has transformed its alliance func- tion to align across all business units and focus on strategic revenue growth. The company’s alliances are organized into four categories: 1) resellers, 2) technology/service partners, 3) go-to-market partners, and 4) truly strategic allies. As vice president of global alliances, Murphy (pictured above) em- phasizes the last two categories, which he said encompass “the most relevant strategic alliance partners that can get us, and our customers, to the next level”—often global companies that can significantly advance Unisys’s current and future product road- map and revenue goals. Rather than report to individual busi- ness units, his team reports to the company’s worldwide marketing organization. This allows the team to take a broader strategic view of its alliances than in the past. “If you’re organized by [business unit], and you’re focused on field-to-field, deal-based, quarter-by-quarter [execution] to drive opportunities, you’re really thinking about how to make something happen now versus how do I make something big- ger happen in the future? It’s important, for sure, but you may not be able to effectively create a longer-term revenue growth strategy that benefits both the company and the alliance part- ner. Also, you’re duplicating resources across business units,” he said. “All of that gets eliminated when you bring the team together and take a global view, and you build processes and templates and all of the things you are doing across partners are done in a consistent way.” AThree-WayAlignment According to Murphy, there are three keys to putting this phi- losophy into practice—partner, market, and organizational alignment. From a partner perspective, Murphy cites five ABroader,MoreAlignedView R E G U L A R F E A T U R E spotlight member ABroader,MoreAlignedView
  15. 15. Allianceandbusiness collaborationprofessionals willbewingingtheirway toArizonathisMarch! Newprogrammingincludes: IntroductiontoAllianceManagementWorkshop n Gearedtonewallianceor partner managers n Coversbasicsofalliancestart-up,maintenance, andwind-down n LedbythethoughtleadersofEliLillyandCompany’s pioneeringalliancepractice n Applicabletoallindustries ITChannelTrack n Learnthesecretstosuccessfulchannel partnerengagements n Seehowchannelmanagerscancapitalizeinthe ageofSaaSandSMAC n Half-dayofsessionsonhowtechnologyprovidersand partnersworkhand-in-hand n Presentedbythoughtleaderswithdecadesofexperience leadingtrulycollaborativechannelrelationships Toregisterandformoreinformation go to,call +1-781-562-1630ext.204, oremailMichele Shannon BecomeaGlobalAlliance SummitSponsorToday! To learnabout orpurchase sponsorship programs,contact: JohnDeWitt,Publisher,ASAP Media, call +1-978-544-1866oremail 960 Turnpike St, Canton, MA 02021 USA | Tel: +1-781-562-1630 | | Thealliance andbusiness collaborationknowledge thatisessentialfor yourstrategy!
  16. 16. critical components for getting allies on the same page: 1. Complementary goals, 2. Agreed-upon metrics, 3. Jointly developed action plans for achieving those metrics (e.g., revenue, pipeline, expansion into new markets, etc.), 4. Milestones, and 5. A shared investment to which both companies contribute. Attaining market alignment tests the strategic vision of each partnership’s appointed leader. Unisys’s partner ecosystem includes longtime IT stalwarts, such as Amazon, BMC, Dell, EMC, IBM, Intel, Microsoft, NetApp, SAP, and others. For a company that delivers a wide variety of software, hardware, and outsourcing services and solutions to customers in trans- portation,government,financialservices,andotherindustries, these allies are critical to serving Unisys’s customer base. The processes, governance structures, and expectations associ- ated with each of these partnerships are already well developed and have been refined over time. However, moving forward Unisys is placing bets on growth opportunities in emerging disruptive technology areas, such as cloud, cybersecurity, big data, mobility, and social media, and each of these areas rep- resents ripe opportunities for partners, old and new. The orga- nization is challenging each alliance leader to come up with a growth initiative that could either build on the existing partner base or involve an emerging player. “How you develop new solutions in each of these growth envi- ronments will determine which partners you need to be with, whether it’s your current portfolio, or whether it’s new compa- nies. And we have a mix of both,” said Murphy. This dynamic could affect how resources are allocated across Unisys’s alliance portfolio, according to Murphy. “Let’s say we’re partnering with [a global corporation that is new to Unisys], and another partner we had is a major competitor, and that partner didn’t necessarily play in the new technology. You then might have some decisions on how to manage your portfolio and invest in one area, and divest in another, or seg- mentthemarketinawaythatprovidesbenefitsforboth,”hesaid. Finally, organizational alignment is achieved if and when Uni- sys’s and the partner’s overarching goals are in unison. “What is the Unisys corporate strategy? How does the part- ner’s strategy fit with Unisys’s strategy? Do we have similar markets that we are trying to attack together? Can we build plans to go to market together?” explained Murphy. If the bigger-picture objectives match up, the partner organizations then have to align the aspirations of the partners’ respective marketing, sales, product, and channel divisions with the alli- ance’s action plans in a similar fashion. TheMetricSystem Each Unisys alliance is judged by metrics that correspond to the alliance’s particular goals. In 2014, Murphy said, the com- pany will adopt many of the metrics included in The ASAP Handbook of Alliance Management. Although the metrics dif- fer by partnership, they fall into four general categories: 1. Financial – revenue (from sell-through, sell-to, and sell-with collaborations), pipeline, joint sales 2. Go-to-market – success stories, references, press releases, trade shows and events, white papers, webcasts, brochures 3. Shared investment – market development funds, co-op funds, nondollar/in-kind benefits (training hours, equip- ment, jointly attended trade shows), real dollar investments (i.e., partner-funded specific activities) 4. Governance – quarterly business reviews, executive-to- executive meetings with senior officials “of interest” (read: high-ranking), partner status/level at the partner organiza- tion (e.g., “Gold” Oracle PartnerNetwork certification) While it is widely accepted within the alliance management community that success stories and references are key, Murphy stressed that the other metrics in the “go-to-market” category are equally essential to achieving the goals of a collaboration. “They are all really designed to increase awareness of the value of the partnership, to drive interest, and to generate a qualified lead, which actually winds up in the sales pipeline,” he said. In addition to these partnership-level metrics, Murphy has in- stituted one designed to enhance his team’s knowledge of the sales cycle and competitive differentiation. “I am going to ask each one of our alliance leaders to actively engage with our business unit teams to participate in at least one full end-to-end deal in 2014,” he said. This may include creating and implementing a program, generating and quali- fying a lead, putting it into the sales cycle, working with the Unisys and/or partner sales reps to pursue the opportunity, participating in relevant sales calls, crafting necessary propos- als and collateral, and closing the deal itself. “The reason why I want my team to participate in that end-to-end cycle is so that they stay close to what our partners are seeing, what our field is seeing, and what our customers are demanding.” BatterUp:GettingAllianceManagersto SwingfortheFences While Murphy’s sales cycle objective is aimed at helping his team keep an eye on the micro level, his bigger plan is to make sure they are actively painting Unisys’s big picture, too. Fortu- nately, Murphy has found that Unisys’s corporate culture will allow the alliance team not only to make an impact, but also to be recognized for their contributions. Continuedonpage39 Quarter 1, 2014 17
  17. 17. 18 Strategic Alliance Magazine18 Strategic Alliance Magazine AMatter ofPerspective MisalignedPressReleases andRogueMediaStatementsCan MakeforPublic-FacingCrises inanAlliance ByJonLavietes
  18. 18. 19Quarter 1, 2014 Press releases, news articles, and miscellaneous commentary in various public forums can often be breeding grounds for your al- liance’s next crisis. Consider these far-from-unusual hypothetical scenarios: n A partner issues a press release announcing a partnership with a competitor without giving you a heads-up prior to its crossing the wire n A partner distributes an announcement specifically about your alliance without seeking your approval n Your partner commits a major mishap involving your joint of- fering, which ultimately affects your organization’s brand n An influential analyst or an opinion columnist from a major news outlet spreads a rumor or otherwise speculates openly about one of your alliances n A senior executive from a partner organization makes either misleading or disparaging remarks about your company NoAllianceManagementPrinciples=Chaos Situationsliketheseareevenhardertocontainifalliancemanage- ment principles are not applied to these collaborations. In his role spearheading government relations and external affairs for health care technology company Abiomed several years ago, Ed Berger, director of Larchmont Strategic Advisors and a member of the advisory board for the PR firm Harris Communications Group, served as the de facto alliance manager for Abiomed’s partner- ship with six hospitals and their respective heart surgeons and PR department heads around a clinical trial of its groundbreaking AbioCor product, the world’s first completely self-­contained re- placement heart. The AbioCor trials were being followed closely by almost all of the world’s most influential news outlets, and a number of the hospitals and physicians were at least in part mo- tivated by the opportunity to enhance their visibility and reputa- tions. Thus, there were several instances of participating hospitals issuing unauthorized press releases, and doctors leaking con- fidential patient information through interviews that were not sanctioned by the appointed joint PR team. “Cardiothoracic surgeons as a class believe they are next to God,” said Berger, describing the difficulty he had keeping certain person- alities toeing the partnership’s line. “They are used to making on- the-flydecisionsanddon’teasilyaskpermission.Itwasveryhard[to prevent rogue behavior within the AbioCor alliance].” As Berger recounted the AbioCor initiative, one got the sense that Abiomed did not employ formal partner selection methods. At the very least, Berger wished he had been more proactive in identifying potential loose cannons at the outset of the relationship. “Thisgoesfromassessingthecharacterandqualityofyourpartner’s media group, [to] the personality of the physician and the goals of your partner organization. That wasn’t going to be foolproofed, but in retrospect—you can do the analysis retrospectively—you can say itwasabsolutelypredictablewhichhospitalwouldbemuchbetterat controllingtheinformation,keepingtotheagreement,andwhether aparticulardoctorwasmorelikelytogooffthereservation,”hesaid. And if an alliance manager has not properly set up the operat- ing model (governance, protocols, rules of escalation, etc.), or succeeded in preventing the organization from bypassing it, dis- putes not only get out of hand, they get resolved in the less-than- collaborative fashion that is not exactly preferred in the alliance management community. In a previous life heading up corporate marketing for a $2 billion– plus IT services provider, John DeSarbo, managing principal of channel strategy and management practice at sales and marketing consultancy ZS Associates, witnessed several instances of partners’ purposefully“goingrogue.”Inoneexample,theITservicesfirmhad two strategic partners that were fierce competitors. One of the two partnerscoercedtheITserviceprovider’sdatacentermanagertobe quoted in a case study touting its offerings as superior to its com- petitor’s in exchange for free products for that data center manager’s lab. In this instance, it was critically important that the IT service provider not publicly express a preference for one partner’s prod- ucts over the other’s. Unfortunately, the offending partner bypassed the alliance manager, communications department, and corporate marketing team, and the case study ultimately made its way to the partner’s Web site. Needless to say, DeSarbo and the firm’s management were in- censed—so much so that the company’s CEO reached out person- ally to his counterpart at the partner on a Friday to tell him, “‘If you Quarter 1, 2014 FEW WOULD DISPUTE THAT JUST ABOUT ANY ALLIANCE will come with unforeseen challenges and tense moments over its lifespan. Fighting fires is tough enough internally, so imagine how much harder it is when the rough patches in your partnership become visible to the public at large. “Inretrospect,itwasabsolutelypredictable whichhospitalwouldbemuchbetterat controllingtheinformation,keepingtothe agreement,andwhetheraparticulardoctor wasmorelikelytogooffthereservation.”
  19. 19. Stuart Kliman, CA-AM, founding partner at Vantage Partners. Brooke Paige, CSAP, principal of 7ContinentsCollaboration. Strategic Alliance Magazine20 don’t pull that case study off your Web site and discontinue all as- sociatedmarketing,wewillendthealliancebyendofdayMonday,’” recalled DeSarbo. The case study was indeed removed, but those were not the only consequences. “I’m sure someone lost their job after that stunt,” he added. TempersFlaring?TimetoCoolEveryoneOff When situations like this arise, an alliance manager has a lot of communicating to do internally and externally. Placating your C- level executives can go a long way in rectifying the situation. “It can be like the Marx Brothers at first. But when the senior man- agement team was calm, everybody else could be called to be calm,” said Sean Andrews, managing partner at the public and investor relations firm Credible Strategic Advisors. Regardlessofwhetherseniormanagementisinvolvedintheresolu- tion,thingscanspinoutofcontrolquicklyiftheallianceprofession- als do not act fast. According to Stuart Kliman, CA-AM, founding partneratVantagePartners,onedoesnotneedahigh-levelbusiness manual to figure out what to do first.   “I don’t think it’s super complicated. The alliance manager needs to call his co–alliance manager [at the partner company] and treat the issue as a joint problem to be resolved, caused by some kind of con- fusion about what is the agreed process or protocol,” he said. “You [also] have to try to see what kind of impact the announcement is having on people internally, and try to help manage that impact, makingsureitdoesn’tspinoutofcontrolandgetworse.Youhaveto make sure people internally aren’t starting to call others externally, yelling or in any way contributing to any kind of undisciplined es- calation. “You likely also need to help [your internal colleagues] understand thewaysinwhichthingslikethiscanhappenwithoutintent,regard- less of impact—to see it as a result of confusion or lack of discipline rather than malevolence, planned for, or in an intentional effort to go violate a well-understood agreement,” said Kliman. “Whenyou’retalkingthroughapartnershiporalliance,it’srelatively safe when discussions are behind closed doors. When news of the alliance gets to the public, it suddenly gets real for a lot of people,” said DeSarbo. But as one might guess, it is imperative not to act rashly because you may find out that either your organization was partly at fault, or there was a reasonable misunderstanding on the partner’s part. “When a PR crisis occurs, I work to focus on the facts,” said Brooke Paige, CSAP, principal of the Boston-based consultancy 7Conti- nentsCollaboration.“Itisimportanttoverifyhowandtowhomthis information may have been communicated in your organization. You may personally have been surprised by this news, but is it pos- sible someone else in your organization may have already known about it at one point?” “Sometimes there are missed expectations between two partners as to how PR is going to be handled. Sometimes it’s just poor planning that leads to challenges,” said DeSarbo. GetDucksinaRow,butDon’tLeaveYour PartnerFloatingAimlesslyinthePond If you can indeed verify that your side is not at fault, you will ob- viously have to align your organization before sharing your plans for dealing with the situation with the partner. But that does not mean it is best to keep your ally waiting indefinitely. After all, you do not want rogue communication to fester among your partner’s team because they are being kept in the dark. “Oftentimes when there is some sort of PR situation that has oc­­ c­urred, partners may choose to hold that information quite closely. They will err on the side of not discussing it with the partner be- cause they want to make sure they have an internal decision on whatactiontotakebeforetheycommunicate,”saidPaige.“Iactually encourage them to reach across to [their respective] partners right away and let them know what has happened, and that they are hav- ingaseriesofinternalmeetingstodiscussit. Itisimportantthatthe partnerknowswhenadecisionwillbemadeonwhatactiontotake.” As the alliance team evaluates the potential ramifications of the situation, assessing whether and how to involve senior leadership is a true test of alliance management skills. “This is just another example of where alliance management is an art based on science,” said Paige. “My rule of thumb is if it “Youhavetomakesurepeople internallyaren’tstartingtocallothers externally,yellingorinanyway contributingtoanykindof undisciplinedescalation.”
  20. 20. John DeSarbo, managing principal of channel strategy and management practice at sales and marketing consultancy ZS Associates. 21Quarter 1, 2014 is something that will impact the structure of the deal in its nature, you are absolutely going to want to communicate to the CEO about that. If it could shift the structure of your agreement in some way, if it could impact your ability to access the resources that you needed out of the deal, you are going to want to communicate that to your organization.” And while the experiences Paige outlined are specific to biopharma, alliance management tools are critical to managing the situation, regardlessofindustry.Klimanissuedthereminderthatthegovernance structure, particularly the steering committee, is constructed for cir- cumstances like this. “Whatdoeachofthepartnersneedtobringbackintotheirbroaderor- ganizations to make sure that the alliance is not negatively impacted?” said Kliman, summarizing one of the primary purposes of the gov- ernance committee meeting in this situation. “The alliance manager shouldn’t be trying to do this alone. It’s a question of, how do we work together?” BalancingAllianceManagement andCorporateCommunications’Interests In many cases, a formal response, whether through a press release and/or interviews with journalists and analysts, will be necessary. While it is critical to contact the partner immediately to find out what is going on, or to at least let them know when you will be tak- ing action, you may need to take the opposite approach with report- ers and analysts, depending on the situation. You do not necessarily want to rush to answer a phone call from a news outlet until your organization has developed appropriate messaging for its external communication. “At first, you don’t pick up the phone. You’re not reachable until you canbecomealigned.Straybulletsaremoredangerousthanwell-aimed bullets,” said Andrews. It is common practice for companies to vet all media requests through their corporate communications departments. It is also standard to limit reporter access to approved organization spokespeople who have been briefed on company messaging and formally “media trained” to answer journalists’ and analysts’ questions. But as easy as that sounds, people do not always exercise good judgment in a crisis. Andrews recalled a story from his days managing investor relations for Medicis Pharmaceutical in which several reporters showed up at the company’s headquarters. One of the company’s vice presidents became unnerved by the newspersons’ unexpected physical presence, insisting ThePlaybookfor CommonPRSnafus There is no one-size-fits-all approach to dealing with an er­ r­ant press release or wayward external communication, but certain situations tend to recur on the public-facing side of alliances. A few experts talk about the common individual scenariosthatcropuptobedevilalliancemanagers. Situation: Partner Inks Deal with Competitor Without Notifying Your Organization “Personally, I have been in that position, and it’s horrible. It’s theworstpossiblethingyoucouldexperiencebecausehere you are trying to represent the alliance in the best terms to your senior executives, and here you are just learning in real time [about] something that can potentially cannibalize or impact what you are expecting to get from that deal,”said Paige.“If it’s a situation where you have a development plan intheexactsameareawithanothercompany,andyouhave atherapeuticproductcomingoutinthatsamecategory,we just want to make sure that resources aren’t being taken off ofonedealandallocatedtoanother.Wewouldaskthepart- nertocommentonthat.” Situation: Journalists and Analysts Spread Rumors Not Based on Information from You or Your Partner “You don’t want to be alarmist, but the role of the alliance manager is to identify and mitigate risk, and look for addi- tional value.When you hear things that could impact your ability to do that in either direction, you are going to want to consider it and potentially communicate it [to your PR people],”said Paige.“There have been several times where PR folks have said, ‘I’ve seen this come out in the news. What do you think is fueling it? Because the last time we checked with you and partner X, the facts of the situation were very different.’” “I will always say it’s a fool’s errand to comment [on] ru- mors,” said Andrews. “I had [Wall Street analysts] actually call me up about [a bogus rumor concerning a potential acquisition].They said,‘This is the rumor.This [other] com- pany commented [on a similar rumor]. Why don’t you comment?’I said, ‘This is a perfect example. A week from now when the rumor is they’re talking to another com-
  21. 21. that Medicis did not have a process for such a situation. Andrews remindedhimthattheydid—allcommunicationshadtogothrough then vice president of investor and public relations Kara Stancell, now a fellow managing partner at Credible Strategic Advisors with Andrews, and she was unavailable at the time. “As soon as I said it, you could see the light bulb go off. We would send corporate-wide reminders [of the corporate communications policy] if something happened, positive [or] negative, but people forget under pressure,” said Andrews. “Media were in the parking lot, but our media spokesperson was unavailable.” Just as important, alliance managers have to let the public relations professionals do their jobs—and trust the PR team’s judgment. When emotions are running high, people outside the corporate communications department might assume the logical course of action is to respond immediately with a public statement, but non- action is frequently the better decision, particularly when it comes to baseless rumors circulating in the press or analyst community. “There’sjustsomuchnoiserightnow,alotoftimestheanswerisnot to react quickly. Just let it sit. Then deal with the problems through one-on-one discussions as opposed to broadcasting some sort of response. Public responses have a way of fueling the flames,” said DeSarbo. (See sidebar, “The Playbook for Common PR Snafus.”) Of course, that does not mean that the alliance management team should not give their input, nor is anyone implying that the corpo- rate communications group should not consult the alliance man- ager.AndrewsrecalledatimewhenMedicisdidnotwanttodisclose information on a topic, but its smaller partner wanted publicity to raise cash. Andrews and Stancell listened to the alliance manager, andultimatelytothepartner,andthenworkedcarefullywithsenior management to find a mutually acceptable solution. “Wehadtofindawaytomarrythosetwointereststogether,”hesaid. “We have to find some agreeable space somewhere where we can minimize the [potential] damage perhaps, or maybe in that alliance we come up with a solution that is so unique it actually sidesteps both issues altogether.” AnOunceofPrevention AvertsanIntervention Although an organization cannot eliminate the possibility of a pub- lic relations mishap entirely, there are many ways to mitigate it. “Thereneedstobeformalagreementbetweentwodifferentalliance partners as to how an announcement will be approved. By whom? What’sthegovernancearoundPR?Allofthatshouldbewritteninto an alliance agreement,” said DeSarbo. And where DeSarbo advises firms to address PR in their alliance agreements,othersintheprofessionhavefoundthatclearoperating principlescanguidetheallianceintheabsenceofcontractlanguage. Ofcourse,thisputstheonusontheorganizationtofollowthesepro- tocols.Yourcounterpartcouldbethedeterminingfactorinwhether it will be able to bottle up rogue communication and unsanctioned press releases. “It depends on the remit of the other alliance manager. Is he or she able to reach into other parts of the organization? By definition, these impacts come from areas which are surprising—areas which are beyond the initial circle of the alliance manager, probably,” said Kliman. He added that the “alliance manager can reach out to those broader areas and see if they can make them a little more aware of the need to communicate with this partner before announcements are coming down. I don’t think there’s any magic to it.” Furthermore, according to Kliman, industries such as IT that have seen these scenarios play out often should have no excuse for not having prepared for this eventuality. “Most alliance managers and most big companies, particularly IT companies, would say, ‘Here is something we’ve learned over time is a big issue. Let’s make sure as we start this new alliance we have a wayofmanagingthat,’”hesaid.“Thenseparately,evenifyouhaven’t done that, to the extent it happens once, it’s likely to happen twice.” Insomerespects,thinkingofyourpartnersinyourPRdealingsgoes well beyond the individual alliance managers and is an organiza- tional culture issue. “The issue is probably less one of the alliance manager, and more of whether or not the organization itself has come to grips with the fact that it depends on alliances to succeed, that it’s alliance-centric, that a large part of its business model is working within the context of this ecosystem—and generally having the leadership that is constantly preaching the need to be thinking about these cross- ecosystem impacts,” said Kliman. PlantSeedsofTrust, IdentifyBadSeedsEarly Although no alliance practice or corporate communications team could ever guarantee an alliance that is free from public-facing crises, Stancell believed investing in the relationships among and between each partner’s alliance managers and PR professionals “Iwillalwayssayit’safool’serrandto comment[on]rumors,”saidAndrews. Strategic Alliance Magazine22 Experiencedalliancemanagerssay,“Hereis somethingwe’velearnedovertimeisabig issue.Let’smakesureaswestartthisnew alliancewehaveawayofmanagingthat.”
  22. 22. 23Quarter 1, 2014 pany, and they in fact are, now they’re stuck because if they don’t comment, they just commented.’” Situation: Smaller Partner Publishes Case Study Without Your Company’s Consent “There was a small software company that was partnering with our $2 billion–plus IT services firm to deliver a solu- tion to our joint customer. The software company wrote a case study describing that project and partnership with our firm and posted it prominently on their Web site. After a while, the customer became very frustrated and disen- chanted with the software company and decided to re- place the solution that was developed, but that [software] company was still touting the success and the case study of the work we’d done together. Essentially they were trying to strengthen their brand by associating it with our brand and the customer’s brand. The customer came to us and said,‘We don’t want to promote this company on theirWeb site. Can you help us remove this case study?’”said DeSarbo. “In this case, a few phone calls to our alliance manager re- solved the issue. The implication of us not working with them again was a big enough stick to wave to get them to take the case study off their site.” Situation: Chief Executive of Partner Organization Disparages You Publicly “There’s always a reason why if there’s that sort of emotion in describing a situation. It’s really our goal and our obliga- tion to figure out what that is and fix it,” said Paige. “How real is this? Is it a positioning issue? Is it a communication is- sue?Whatistheunderlyingcauseofthatbreakdown?That’s purelythealliancemanager’srole.Weneedtobecoordinat- ing that and communicating the outcome. “[The solution] might be as simple as communication flow—making sure that the key people responsible for that area in the organization have the information that they need,”she continued.“For instance, maybe we took the ex- pected action, but it wasn’t communicated in the way the partner was looking for. Therefore, it wasn’t communicated in the larger organization.That’s an important thing to point out, especially in a dynamic where it’s a smaller company working with a much larger global organization.” built the chemistry needed to guide partnerships through tur- bulent episodes of this nature. She said Medicis PR and alliance executives would meet weekly with their respective counterparts at partner organizations, even just to talk casually. If team mem- bers happened to be traveling to the partner’s area for work, they would make sure to spend the evening together while everyone was in town. “We would go out for dinner, drinks, whatever, just to catch up on personal lives. We were friends. We were partners. And we trusted each other with our particular communications,” she said. “We tried to stay in front of that by having that one-on-one relationship with that alliance manager.” “By fostering those relationships, we were proactively building bridges that when communications were—I hate to say breaking down—but strained perhaps between the respective legal teams or senior management, we always had an open door and could keep things open and looped together,” said Andrews. Although it was difficult to rein in the allies in the AbioCor partner- ship, Berger was infinitely more successful in keeping his colleagues from overreacting to each act of malfeasance. “You earn compliance by effective performance and internal com- munications over time. I never had in three years—and believe me there were many people in various stages of upset over these kinds of issues—I never once had those out-of-control rogue communi- cations from my company’s personnel. The reason was that I had given people good reason to believe that if they came and vented to me, number one, I would make some reasonable communication to try to fix things and I would get back to them. They weren’t left hanging—that something bad had happened and there had been no consequences. At the end of the day…they knew that the communi- cation that they wanted to make in anger had been made, and they heard what the result had been, and they realized that it hadn’t done further damage to the relationship,” he said. AllianceManagerasConductor Although it is a safe bet the corporate communications depart- ment will instantly jump into action when a problem press release crosses the wire or a potentially harmful statement is made in the press, alliance managers still need to be proactive and use their core orchestrator skills. “They need to identify the right people, figure out what conver- sations need to be had among them, design those conversations, facilitate those conversations to get the issue resolved. It’s very un- likely that they will be the resolver. I think it will be very likely that they will be the owner of the issue from an ensuring-it-gets- resolved point of view,” said Kliman. Indeed,it’samatterofperspective.Becausethesearecrisesthewhole world can see. n
  23. 23. 24 Strategic Alliance Magazine The Control-Trust DilemmaFinding the Right Balance Makes It Easier to Arrive at an Effective Alliance Design By Ard-Pieter de Man COMPANIES CAN ADOPT ONE OF twobasicapproacheswhendesigningtheir alliances: the control view and the trust view. Figure 1 summarizes the two views by reviewing the assumptions behind each, how they define the key challenge for alliance design, and their effect on the prescriptions provided for how alliances should be designed.
  24. 24. FIGURE1: Thecontrolandthetrust approachtoalliancedesign CONTROL Alliance assumption Alliancedesign challenge Viewon alliancedesign Partnerslookoutfor theirownself-interests Conflictsofinterest arelikelytoarise Preventopportunism Targetdriven Valueappropriation Rulebased; detailedcontracts Extrinsicmotivation Strongsenior managementcontrol Partnersbenefitfroma commoninterest Jointgrowthanddevelopment ensurelong-termalignment Buildsocialcapital Visiondriven Valuecreation Principlebased;norms andvalues Intrinsicmotivation Seniormanagement ascoach TRUST 25Quarter 1, 2014 Inshort,[control-based]allianceshighly relyonextrinsicmotivation:sticksandcarrots guidetheallianceintherightdirection,notthe personalresponsibilitythatsomeonefeels tocontributetoit. TheControlView: TamingOpportunism The control view makes the assumption that partners in an alliance join the alliance because of their self-interest. Therefore, they will see the alliance as a vehicle to pro- mote their own good, without much regard for their partner’s interests. The most important challenge in de- signing alliances is to create safeguards against oppor- tunistic behavior. This view of alliances was epitomized by a controller of a pharmaceutical company, who de- scribed his job in an internal alliance conference as, “I am here to protect us from our partners.” Opportunism in alliances may come in different forms. Often, such actions are small, such as investing slightly less time than the partner does, thus shifting some of the burden to the partner. Sometimes such actions are significant, as in the case of the Danone and Wahaha joint venture. The two partners jointly brought a Danone drink on the market in China. Wahaha, however, took the Danone recipe and also started to secretly produce the drink under its own brand. This view of alliances underlines American writer Ambrose Bierce’s definition of an alliance in international politics from his notorious Devil’s Dic- tionary as “the union of two thieves who have their hands so deeply inserted in each other’s pockets that they cannot separately plunder a third.” The possibility that a partner will engage in opportunistic behavior and free-riding based on self-interest defines the con- trol view of strategic alliances. This view leads to an emphasis on using formal mecha- nisms in alliance design. The first element is defining commonly agreed-on targets with a partner to ensure that both partners are on the same page regarding what theywanttoachieve.Makingthesetargetsmeasurableis thefirstsafeguardagainstconflictsofinterest.Cleardefi- nition of targets is important, and an extensive planning and control system that measures deviations from the plan, reports progress, and highlights areas for improve- ment directly follows the target-setting process. Targets may also be set for the inputs that both partners have to deliver to the alliance to ensure that investments are reasonably shared. The focus on targets immediately raises the ques- tion of how the benefits will be shared once a target is achieved. Control-based alliances tend to have detailed value appropriation mechanisms in place, clarifying exactly which revenues and costs belong to whom. This clarification is achieved by the use of many detailed rules to govern the alliance. Elaborate contracts are implemented to cover as many eventu- alities as possible. An alliance may be open-ended by definition, but the control view sees incomplete con- tracts as a negative. The contractual space needs to be reduced as much as possible to ensure that—in case of a conflict—the solution to that conflict is completely clear. Senior management up to the board level needs to deal with any remaining issues during the course of the lifetime of the alliance. Therefore, senior manage- ment is closely connected to the alliance and provides it with active guidance. If necessary, they will even in- tervene in alliance operations to ensure that the com- pany’s interests are well looked after. To stimulate both sides to collaborate, their targets are connected to bonuses and payoffs based on alli- ance performance. Thus, control thinking extends to the individuals who comprise the alliance. People are rewarded when they behave in accordance with alli- ance targets. In short, alliances highly rely on extrinsic motivation: sticks and carrots guide the alliance in the right direction, not the personal responsibility that someone feels to contribute to it. Structures and sys- tems are in the lead.
  25. 25. “Well, honestly, Doc… I’m not sure you can help me with my trust issues.” TheTrustView:BuildingSocialCapital Whereas the control view departs from the self-interest ofpartnersto join an alliance, the starting point for the trust view is common interest. Although these are two sides of the same coin, the implications for alliance design are profound. The shift in focus from conflict prevention to joint growth entails a completely dif- ferent view of alliance design. As long as partners are able to identify new opportunities for growth and de- velopment, partners’ interests will be aligned and the collaboration should be stable. To continually identify these new opportunities, companies must get to know each other, be willing to share their ideas and insights openly, and foster a dynamic culture in the alliance. Doing so requires a high level of social capital; that is, people need to know and trust one another. In the trust view, the challenge is to design an alliance that fosters the social bonds between organizations that are needed to build that social capital. One way to build these bonds is by developing a joint vision for the alliance. Rather than setting narrow tar- gets, the concept is that companies discuss a broader set of issues. Developing the vision for an alliance demands that organizations exchange their views on long-term developments in their market and how the alliance fits into those views. These discussions enhance mutual un- derstanding and provide greater certainty to a partner’s intentions, thus reducing the chance that a partner takes unexpected actions. The emphasis on growth and development also leads to an emphasis on value creation. By learning and in- novating, an alliance can continue to add value to its partners. The well-known distinction between shar- ing and growing the pie applies. In the control view, the emphasis is on sharing the pie; in the trust view, the emphasis is on growing it. If the partners can en- sure that the pie continues to grow, a natural incentive exists for partners to stay in the alliance and to avoid behaving opportunistically and killing the goose that lays the golden eggs. Sufficient value is created for ev- erybody to earn a living. Because too many rules stifle innovation and creativity, trust-based alliances do not define detailed regulations for what should happen under certain circumstances. Instead, they focus on behavior, such as how the part- ners should behave when something happens that re- quires their joint attention. In the design of alliances, such an approach leads to an emphasis on norms and values that support mutual adjustment. An increasing number of alliances implement codes of conduct to that effect. Instead of laying out detailed rules, the concept is that an alliance is more flexible when it is based on cer- tain principles that dictate how partners deal with one another, rather than attempting to cover every possible option in a lengthy contract. This type of thinking also has an effect on the level of the individualsworkinginalliances.Insteadofattemptingto align their behavior using targets and bonuses, the trust approachseekstocreateapsychologicalcontractwithan individual. Through an appealing vision of what the al- liance can mean in its market, employees are positively motivatedtocontribute.Fun,recognition,andmeaning- fulworktiethepartnercompaniestogetherthroughtheir employees. An example is the Future Store Initiative, in which 50 partners collaborated to build a supermarket of the future. The vision was appealing for all involved. The collaboration made room for a variety of new ideas andexperiments,whichgeneratedenergyinthepartner- ing companies and their employees. A memorandum of understanding of only two pages was signed. The trust- based mechanisms of joint vision, value creation, and intrinsic motivation took care of the rest. 26 Strategic Alliance Magazine Thistypeofthinkingalsohasaneffecton theleveloftheindividualsworkinginalliances. Insteadofattemptingtoaligntheirbehaviorusing targetsandbonuses,thetrustapproachseeksto createapsychologicalcontractwithanindividual.
  26. 26. 27Quarter 1, 2014 Eachapproachclearlyhasitslimits.…Inan alliancethataimstocreateeconomiesofscale, trustmaybeineffective.Inalliancesaimedat innovation,controlwillbecounterproductive. If an alliance succeeds in building social capital in this way, elaborate planning and control processes are not needed.Whenbothsidesofanallianceautomaticallydo whatisintheirjointandindividualinterests,thealliance should run smoothly. Senior management involvement can be limited to a coaching role. For example, they can help remove barriers to the alliance or think along with alliance managers about next steps. In short, the trust approach builds on the informal elements of alliance design. It is able to do so given the emphasis on growth and development that should guarantee that the alliance is not only beneficial to the partners at its inception, but also continues to add value over time. BalancingControlandTrust Obviously, the previous description is somewhat black and white in nature. Many shades of gray exist in be- tween. However, that all alliances end up in the middle is certainly not true. In fact, some alliances clearly de- part from one perspective and have completely differ- ent alliance designs than when the opposite point of departure is taken. Both alliance types can be successful. Control is not necessarily better than trust or vice versa. Some people have an instinctive preference for one or the other. Ac- countants and lawyers tend to like the control approach; entrepreneurs usually have a preference for the trust ap- proach.However,therealissueistofindtherightdesign intherightsituation.Thinkingthateveryonewillalways be intrinsically motivated to contribute to an alliance is just as naïve as believing that having a good contract in place will in itself ensure the success of the alliance. The point is to custom design an alliance. Control and trust may strengthen each other. A dis- cussion about all of the issues that may call for greater control can help strengthen the understanding between the partners. Clarity on each other’s perspective regard- ing the alliance may help build trust. Trust may make it easier to share concerns and, as a result, formal rules maybeagreedontoalleviatetheseconcerns.Inthisway, trust may strengthen control. The concepts of control and trust may be intuitively clear, but their practical ap- plication is less straightforward. Each approach has its limits. Although having a high level of trust may sound ideal, the downside may be that the attention paid to the goals of the alliance may diminish when a partnership becomes too intimate. Groupthink may lead alliance partners to ignore or downplay changes in the environment, putting the alliance at risk. A formal control mechanism ensures that alliance partners ask the right questions about their business and help maintain their focus on the goals. In contrast, placing too much emphasis on con- trol may undermine employees’ identification with the alliance and the mutual adjustments necessary for ef- fective alliance operations. Processes, procedures, and contracts do not make an alli­ance. People need to be willing to invest in the alliance, which requires that they form a psychological bond with it. When people identify with the goals of the alliance, the alliance will operate more smoothly. Eachapproachclearlyhasitslimits.Anoverlyheavyem- phasis on control will reduce flexibility and creativity in an alliance. It may induce people to focus on the rules insteadofthegoals.Moreover,thecostsofgoverningthe alliancewillbehigh.Incontrast,significantemphasison trust may lead to a loss of focus and lower operational efficiency, and may provide no explicit mechanism to correct free-riding and opportunism. In an alliance that aims to create economies of scale, trust may be ineffec- tive. In alliances aimed at innovation, control will be counterproductive. Therefore, one of the most funda- mental questions that needs to be answered when de- signing an alliance is: What is the right balance between control and trust given the specific aims this alliance seeks to achieve? Based on detailed case studies of more than a dozen al- liances, the general guidelines are easy to identify. More control is necessary when alliance size increases and the partner-related risk is higher (e.g., when collaborating with a competitor). When business risk is high, as in a fast-changing environment, trust is called for because detailed contracts are counterproductive in such a situa- tion. In practice, however, companies face a mix of these elements. In that case, fine-tuning the alliance by taking into account all elements of alliance design is necessary. These include clarity on the strategic imperatives of the Continuedonpage39
  27. 27. 28 Strategic Alliance Magazine OurPlacein theSunThe Alliance Management Community Will Gather and “Pass the Talking Stick” in Arizona This March By Michael Burke
  28. 28. ASAPGLOBAL ALLIANCE SUMMIT MARCH 10-13,2014 SCOTTSDALE Quarter 1, 2014 29 Never fear. Your friends, colleagues, peers, and present and fu- turealliancepartnerswillallbedescendingonthegreaterPhoe- nix area in March for the kind of programming, professional development, and networking opportunities ASAP members and alliance folks have come to expect and appreciate from the Summit. But there’s no harm in shaking it up a little, right? This year’s Summit will be held March 10–13 at the Talking Stick Resort in Scottsdale, Ariz., right next to Phoenix and close to an abundance of springtime-in-the-desert activities—many of them right on the Talking Stick property, which itself boasts a casino, multiple restaurants and watering holes, a spa, fitness center, and live entertainment, among other alluring draws. And in addition to golf and other outdoor pursuits, the Phoenix area plays host to severalMajorLeagueBaseballteamsthatplaytheirspringtraining games nearby. But the attractions of this year’s Summit don’t just reside in the uniquevenueanditswarmandfriendlyenvirons.Severalnewad- ditionstotheconferenceprogramfor2014promisetoenlivenand enhance the usual high value associated with the year’s premier alliance management event. These include a fascinating keynote speaker with highly relevant experience and advice for alliance managers,afirst-everintroductiontoalliancemanagementwork- shop presented by some of the profession’s pioneers, the “Marsh- mallowChallenge”(wecan’ttellyouexactlywhatitis,butwehave it on good authority that it involves music, prizes, some real-life lessons in collaboration, and...marshmallows!), and a half-day track on IT channel management put on by some of high tech’s leading lights. Sunday,Monday But to begin at the beginning: On Sunday, March 9, pre-Summit activities commence with alliance team meetings and ASAP committee meetings. Sunday, we’ve found from experience, is always a nice day to get in early, check out the hotel’s charms and enticements, explore the local area, and meet up with your alliance partners and friends. This year, Monday marks the official start of the Summit program, and will feature both main conference content and spe- cial sessions, some by invitation only for ASAP global and chapter leaders and some available for an additional fee. The latter includes both CA-AM and CSAP certification prep workshops given by experts in alliance man- agement for those who are earning their stripes in the profession and looking to start or keep their careers on the right trajectory. Speaking of experts, this Summit is full of them. And Monday afternoon will fea- ture a first: an introductory training course for new al- liance managers, presented by two of the pioneers in the field from ASAP Global Member Eli Lilly and Company. The course, called “Introduction to Alliance Management Work- shop: Tools and Techniques,” is a distillation of Lilly’s decades of business alliance experience and will be led by a couple of the most highly respected alliance managers and thought leaders in the profession: David S. Thompson, CA-AM, chief alliance officer at Lilly, and Steven E. Twait, CSAP, Lilly’s senior direc- tor of alliance management. (This workshop also carries an ad- ditional fee. A special thank- you to Lilly which is donating all materials, IP, and instructor time for the course.) Applicable to alliance management novices in any in- dustry, the “Introduction to Alliance Management Workshop” will provide never-before-published case studies, tools, and techniques that are used in alliance management training at Lilly. At a minimum, participants will come out with a working knowledge of alliance management, including the start-up, maintenance, and winding down of alliances, as well as an un- derstanding of how to get the most value from a collaboration. In addition, they will have the opportunity to participate in a presession discus- sion and survey and will receive a set of “battle- tested” alliance management tools, as well as taking part in a postsession follow-up with the instructors. This session is an invaluable must- attend for those who are new to alliances and alliance management. Theattractionsofthisyear’sSummit don’tjustresideintheuniquevenueandits warmandfriendlyenvirons. A CASINO IN THE DESERT (BUT NOT LAS VEGAS)? “Un-conference” sessions? A marsh- mallow contest? Golf and spring training baseball? Is this the ASAP Global Alliance Summit? 2 0 1 4 A S A P G L O B A L A L L I A N C E S U M M I T P R E V I E W Keynote Speaker: Lisa Caswell, president of Siemens e-Meter
  29. 29. Strategic Alliance Magazine30 Strategic Alliance Magazine Monday evening there will be a peer-to-peer meet-up, a no-host event in which Summit participants can get to- gether, have a drink and dinner, and head out to explore the sights and sounds of the local area if they wish. Tuesday:AllianceManagers LeadingtheCharge Tuesday’s activities begin promptly at 8:15 a.m. with the opening of the general session, highlighted by this year’s keynote address, “Leading the Charge: How Partnering Prepared Me to Become a Corporate Division Presi- dent,” by Lisa Caswell, president of Siemens e-Meter. Caswell’s is a success story that is becoming more com- mon as partnering is seen as increasingly critical to the businessworld.Herbackgroundinalliancedevelopment and sales gave her a chance to see and learn all aspects of the business, and she parlayed that experience into her current role as president of Siemens’s e-Meter business, which is now driving toward complete integration with theSiemensSmartGridDivision.Caswellwillsharewhy and how her ability to create partnering-led businesses and to collaborate internally and externally has opened doors for her—the doors to the executive suite, in this case—and how partnering experience can create simi- lar opportunities for alliance managers who have, as this year’s Summit theme states, “the expertise to collaborate and the leadership to perform.” Other noteworthy sessions on tap for Tuesday include “Mastering the Message: The Art of Expert Commu- nication,” presented by Bart Queen, CEO of Speak AmericaandfounderoftheUltimateStrategicSpeaking System; a panel that will discuss “The Right Person for the Job: Hiring Your Alliance Workforce”; and sessions onsuchtopicsaslearningalliances,cobrandedalliances, and cross-­functional alliance organizations. Two sessions will look at opti- mizing alliances and alliance portfolios: “Right Partners, Right Strategy: Taking a Stra- tegic Approach to the Alliance Portfolio,” presented by Scott Musson, vice president of global strategic alliances at Red Hat, Lorin Coles, CSAP, CEO of Al- liancesphere, and Jeff Shuman, CSAP, principal at The Rhythm of Business; and “Inflection Points: Op- timizing Your Alliance Amid Life Cycle Challenges,” presented by Ron McRae, CSAP, director of alliance management at Janssen Pharmaceutical Companies of Johnson Johnson, and Janice Babia Ramos, CSAP, directorofalliancemanagementatJanssenBiotechInc. Finally, Leona Helverson, CSAP, and Karen Robinson, CSAP, from ASAP Global Member Verizon will present “Doing a 180: Partner Today, Channel Partner Tomor- row!,” which looks at new roles and skills for alliance managers involved in sales distribution programs. Wednesday:ChangingtheChannel The channel in IT will also be the focus of an all-new half-daytrackonWednesday.Thistrackwillinclude“The VAR Debate: Nontraditional Partnerships in IT,” a panel moderated by ASAP New England chapter president Frank Curran, director of business development and al- liances at SUSE, and featuring Greg Fox, CSAP, director of the Citrix Ready Partner Program, and Gavin Miller, vice president and general manager of sales and market- ing solutions for Avnet Technology Solutions. The panel will look at two different approaches to these evolving nontraditionaltechnologyalliances. 2 0 1 4 A S A P G L O B A L A L L I A N C E S U M M I T P R E V I E W
  30. 30. 31Quarter 1, 2014 Another session in this track will be “Changing the Channel: Succeeding as a Channel Manager in the Age of SaaS and SMAC,” presented by Norma Wa- tenpaugh, CSAP, founding principal of Phoenix Consulting Group (and leader of the editorial team that cre- ated The ASAP Handbook of Alliance Management, third edition), and Dede Haas, CA-AM, channel sales strate- gist for DLH Services, LLC. This special double session is an interactive mini-workshop thatwillexplorehowtomakeitasachannelmanagerin today’s IT world, where traditional hardware and soft- warechannelsareatacrossroadsandSaaS(softwareasa service)andSMAC(social,mobile,analytics,andcloud) technologies present new challenges and opportunities for profitable, sustainable channel relationships. AllianceEnablementbyDesign Other Wednesday highlights include “Getting Up to Speed Together: Sales Team Collaboration and Alliance Enablement,”presentedbyGeraldJ.Dehkes,CSAP,and DavidErlenborn,CSAP,ofKPMGLLP;astrategicview of alliance scorecards by R. Lynn Richard, CA-AM, of Unisys; a panel discussion on smart cities and smarter partneringledbyASAPBeNeLuxchapterpresidentAn- nickdeSwaef,CA-AM, of Consensa Consulting; a ses- sion on pursuing alli­ances and joint ventures in China by Manlio Huacuja, CA-AM, of LoJack Corporation and Frank Grams of Sanofi; and a presentation on al- liance design by Professor Ard-Pieter de Man, CSAP, of VU University Amsterdam—who literally wrote the book on it! (See story, page 24.) Wednesday afternoon will conclude with a general session and the not-to-be-missed 2014 ASAP Alliance Excellence Awards cer- emony, where the best of the best in al- liance management from the past year will be recognized and lauded. Did your company win this year? Will one of your partners wear the laurels? You’ll want to be on hand to find out. From there, Wednesday’s activ- ities will shift into a smoother, softer, Barry White sort of gear—with a “Sunset Celebration,” complete with food, beverages, music, and of course, networking with your alliancefriendsandpeers.Planonstayingaroundforthe Wednesdayeveningfunandfrolic,andtowrapupthose continuing conversations with partners old and new. TotheSummit! That marks the end of most of the “official” Summit activities—but Thursday the CSAP exam will be given for those who have done their prep work for this high- est level of alliance management certification, and there are a variety of options for folks to take part in an “Arizona Outing” (if you selected that option dur- ing your registration, you’ll be contacted by ASAP staff with excursion choices available for an additional fee).SobeforeyouheadoffintotheArizonanight—or the warm desert sunlight beckoning with golf, base- ball, and other outdoor adventures—make sure you’ve made the most of your Summit experience this year, both in conference sessions and outside. And remember, the Summit won’t be the same without your presence—so we’ll see you in Scottsdale! For registration information for the 2014 ASAP Global Alliance Summit, visit right awayandclickontheSummitbanneradontheright—or contact Michele Shannon at +1-781-562-1630 ext. 204 or March is almost here, so don’t wait! 2 0 1 4 A S A P G L O B A L A L L I A N C E S U M M I T P R E V I E W
  31. 31. GettheProfessional RecognitionYouDeserve! EarnCertificationPointsforYourCompany’s AllianceManagementTraining! CSAP CA-AM Areyouleadingin-housealliancemanagement training–ortakingcoursesprovidedbyyour company?Youdeservecreditfor that–sonowASAP isofferingyetanother waytoearncertificationpoints! ASAP has introduced a new benefit for certified alliance professionals who work for ASAP Corporate or Global Members. Now you can receive points toward your CA-AM or CSAP certification or renewals when you leadorparticipateinin-houseeducationalsessionsthat meet the guidelines established by ASAP’s Professional Development Committee. Gettheprofessionalrecognitionyouhaveearned whenyou integrate alliance management knowledge into yourandyourcolleagues’professionaldevelopment. Contact ASAP’s certificationcoordinatorJenniferSilverat formore information. 960 Turnpike St, Canton, MA 02021 USA | Tel: +1-781-562-1630 | |
  32. 32. E D I T O R I A L S U P P L E M E N TE D I T O R I A L S U P P L E M E N T ByRachelleE.Hawkins,CA-AM,JoannaL.C.May,CA-AM, DavidS.Thompson,CA-AM,andStevenE.Twait,CSAP While the origins of effective individual leadership can be a source of lively debate, our experience has made it clear that great alliance managers are made, not born. This conclusion is inevitable due in large part to the unique nature of alliance management—a composite discipline that requires skills from a range of functions, including project manage- ment, human resources, finance, engineering, IT, and business development. Along with experience in these areas, successful alliance managers must possess—and learn to apply strategically—a comprehensive combination of inter- personal, professional, and alliance-specific competencies. 33Quarter 1, 2014