The document discusses strategies for government contractors to adapt to shrinking budgets through strategic partnerships and collaboration. It outlines how traditional strategic sourcing methods are no longer sufficient, and firms must focus on total cost of ownership reduction and broader business outcomes. To succeed, companies need to change their mindset, develop compelling value propositions through market research, position themselves as solutions experts, and pursue partnerships and alliances to increase capacity and pursue larger opportunities. Strategic partnerships can help government contractors navigate budget cuts by leveraging each other's skills, resources, and markets to create new opportunities for growth.

1. DevelopingYour Strategic Partnership for Long-Term Growth
Presented
By
Earl Holland
President, Growth Strategy Consultants, LLC
August 17, 2017
Government Technology Services
Coalition Capacity Planning Day
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2. The New Paradigm Called Collaboration
The Changing Landscape of The Government Contracting Market
TheWhat,TheWhy and the How
SucceedingThrough StrategicAlliances
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3. Shrinking Budget Facts
— Congress' recent tax-and-spending spree and its intent on fulfilling a political
promise will have to propose far deeper cuts to domestic programs to bring the
government's deteriorating balance sheet back into the black.
— Procurement executives are looking to provide greater value to the enterprise
beyond cost reductions but, markets can only offer so many savings using
traditional‘strategic sourcing’ methodologies. So, their focus from price
reduction has gone towardsTCO reduction and spend reduction . Firms must
get more “bang for the buck” (measured by broader business outcomes) as
opposed to just reducing expenditures.
— Safely harnessing supply-market power to create competitive advantage is the
mission of a world-class procurement organization.
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4. Shrinking Budget Facts
— The primary vehicle for extracting value from the supply base has been the
strategic sourcing methodologies pioneered in the 1980s and 1990s.
— Sourcing managers used it successfully to rationalize suppliers, aggregate buying
power, drive down pricing and even improve supplier performance against a
contract. Strategic sourcing also proved invaluable during the recent recession
to recalibrate pricing to the supply markets when they took a nosedive
alongside demand markets.
— 62% of Federal Managers report personal experience with tighter budgets
— 19% believe that their budgets in 2018 will be even much lower than 2017
— 12% of respondents describe the impact of budget cuts to be devastating and
58% believe that they will be significant to the agency’s mission performance.
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5. Fiscal 2018 Likely to Start Under CR; Positioning
In Q4 2017 Can Help in Q1 2018
— Fight over next year’s budget will yield a continuing resolution to start the year
— CR would freeze fiscal 2018 obligations at “current rate” to start the year; this
will prevent any new starts
— Positioning for fiscal 2018 first quarter under CR will be tricky steps to explore
unless you have already started your preparation of identifying your strategic
partners for collaboration
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6. Change Forward Thinking
— Mind Set
— Vision
— Strategy
— Business Model
— Increase Capacity
— Sustain Revenue
— Trust
— StrategicAlliance
— Larger Procurements
— Collaboration
— Partner Integration
— Co-Presenting/Marketing
— Increase Revenue
— MoreTrust
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7. So What do We Do To Stay In The
Game
— Plan-by performing in-depth internal assessment of your company and an
external assessment of your potential alliance partner(s).
ü Who are you
ü What do you really want to do
ü Focus on how you will leverage your core skill set
ü Do your market research to determine how your core skill sets support the
mission of the agencies your interested in supporting
ü Identify and establish your alliance value proposition with your selected
partners
— Prepare
— Position
— Partner
— Pursue
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8. So What do We Do To Stay In The
Game
— Prepare-by developing a compelling story base on your research,
knowledge and understanding of the agency mission and your
ability to assist them in overcoming their challenges in
accomplishing the mission.“MakeTheir MissionYours”
Ø Respond to RFI’s
Ø Sources Sought
Ø Make sure you highlight your “differentiators” when responding
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9. So What do We Do To Stay In The
Game
— Position-use your research to position yourself as a Solutions
Expert (SE’s) in the areas they are challenged in.This can be
demonstrated in how you tell your story in response to their RFI’s
and Sources Sought
Ø If you don’t know the customer/make sure the customer knows
you
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10. So What do We Do To Stay In The
Game
— Partner-this is the business model of today. Companies can’t afford to go
at it alone based on the characteristics of the current market
Ø Partner selection must be based on comprehensive “due diligence”
and supported by a structured “best practice” methodology
Ø A through understanding of theArchitecture of StrategicAlliances
Ø Validation of chemistry fit, strategic fit, cultural fit, vision, objectives,
goals, integrity, and trust to substantiate compatibility
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11. So What do We Do To Stay In The
Game
— Pursue-going to market should be pursued with passion, skills and
confidence that your alliance is by far the best entity to solve the
challenges of the customers you pursue.
Ø Story
Ø Perspective
Ø Past performance
Ø Patience
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Government partnerships include all the
Phases in the Alliance Framework
Phase 2
Analysis &
Selection
Phase 3
Building Trust
& Value
Creating
Negotiations
Phase 4
Operational
Planning
Phase 5
Alliance
Structure
& Governance
Phase 6
Launching
& Managing
Phase 1
Alliance-Specific
Strategy
Phase 7
Transform
Innovate
or Exit Gracefully
(Source: The ASAP Handbook of Alliance Management: A Practitioner’s Guide)
Alliance Framework
Manage Knowledge and Relationships
2014 ASAP
Global Alliance
Summit

13. Corporate
Objectives
Corporate Vision &
Mission
Alliance
Objectives
Partner Selection
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Selection
Factors
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14. Thy Self
Assessment
Internal/External
Thy Mate
Assessment
Internal/External
Thy Market
Assessment
Internal/External
Self Mate Self Mate Self Mate
• GAPS
• Strength
• Weakness
• Process
• Management
Style
• Vision
• Goals
• Value Proposition
DNA DNA DNA DNA DNA DNA DNA DNA
• Processes
• Culture
• Management
Style
• Philosophy
• Core Values
• Market
Characteristics
• Market Leader
• Goals
• Customers
• Revenue
Objectives
• Financial
Partner Selection Continued
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15. Strategic Sourcing vs Category Management
Goal Achieve savings: implement specific Maximize value for spend: reduce total strategies around
spend and vendor cost of ownership (TCO), generate consolidation,
standardization of supply chain-wide savings, reduce risks, requirements and
specifications, and improve supplier and operational
price benchmarking and negotiation performance, and boost innovation
Small business: Meet or exceed small Small business: Meet or exceed small business goals
business goals
Frequency Project driven: initiated once in three to Continuous: ongoing series of projects five years based on
internal demand or identified and prioritized based on supply market
changes regular analysis and reporting
Methodology Standard methodology: typically Broad framework: ongoing cycle of based on a seven-
to nine-step establishing baseline and goals, methodology starting
with assessment developing a strategy for category and ending with
vendor selection and improvement, project execution, and implementation
performance management
Value Sourcing savings: annual savings Value for spend: achievement of through planned demand
reduction and strategic objectives, including spend average purchase
price reduction, under management, price savings,TCO tracked through
finance and sourcing savings, improved supplier performance, systems
innovation, and user satisfaction
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16. Category Management Overview
Category Management Overview
Current to Future State of Federal Government Purchasing
Current State of Purchasing: Future State of Purchasing:
Lack of Coordination across agencies Synchronized procurement across government
Duplicated efforts Industry involvement in delivering best category strategies
Many agencies no leveraged buying power One common management framework
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17. Benefits of Collaboration Partnerships
Collaboration
‘Racing for the world’
Building Critical Mass Reaching New Markets Plugging Skills Gaps
Creating New Opportunities
Building
Nodal Positions
in Coalitions
Building New Competence
Partner
‘Racing for the future’
Gaining
Competitive
Strength through
Co-option
Gaining
Competence through
Internalized Learning
Leveraging
Co-specialized
Resources
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18. GTSC Capacity Planning Day
ThankYou !!!!!
Earl S.Holland III
President
Phone:703-865-8346
Cell:703-231-0593
Email:earl@growthstrategyconsultants.com
www:growthstrategyconsultants.com
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