![Source: Forbes, 2014 | Economist, 2014 | TIME, 2013
85%
5.3 8.4
2011 2014
Revenue [$B]
Where McKinsey is Today
60%
Repeat customers
New customers
15%
$400m
HSW McKinsey
Knowledge
Development Budget
McKinsey is a private company, so you need to rely on data from
newspapers (e.g. Wall Street Journal) and magazines (e.g. The
Economist) to understand their business outlook.
Accenture is a public company, so a good place to start is to look
inside the Annual Report and Quarterly Reports.](https://image.slidesharecdn.com/partnerprogramfortechstartups-andnotonly-170125043625/75/Partner-Program-for-Tech-Startups-and-not-only-8-2048.jpg)
Uploaded byJustyna Bak
Partner Program for Tech Startups - and not only
The document outlines a partner program template for tech startups seeking partnerships with systems integrators or consulting firms, detailing steps for preparing a partnership pitch including understanding partner business models, defining collaboration areas, and establishing success metrics. It emphasizes the necessity of building a compelling vision for the partnership that aligns with industry trends and the mutual goals of both partners, while providing concrete examples of collaborative marketing activities and success measurements. The author, a marketing strategist, shares insights drawn from extensive experience and emphasizes the importance of strategic alignment and measurable outcomes in successful partnerships.
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Partner Program for Tech Startups - and not only
- 1. Partner Program Template For Tech StartupsWho Want To Partner With a Systems Integrator Or a Consulting Company With concrete examples on how to prepare a partnership pitch for:
- 2. Executive Summary The vastmajority of the world’s most successful Tech companies have a thriving ecosystem of partners, ranging from systems integrators, consultancies, independent software vendors, developer communities to value added resellers and distributors. “Partner Program Template” helps you prepare a compelling partnership pitch: • Demonstrate understanding of your partner business and position your company as a valuable asset • Scope out collaboration areas with concrete milestones • Define success metrics and strategies to achieve them
- 3. About the Author I’ma marketing strategist and an engineer so naturally my passion is to help fantastic tech products succeed in the marketplace. My experience marketing tech products ranges from mobile apps, devices and networks (Nokia), data center and cloud (Cisco Systems), user experience monitoring and optimization (Riverbed Technology), and application development and management platform (Apcera). On the academic front, I studied Strategic Marketing Management and General Management at Stanford Global Business School after I had graduated from Danish Technical University and International Faculty of Engineering in Lodz, Poland with a double degree: M.Sc. E.E. in Telecommunications.
- 4. Have you seenmy “Marketing Plan Template for Tech Startups and not only”? Preview it on SlideShare. Download it from TechSurprises.
- 5. Connect with Justyna @justyna_baklinkedin.com/in/just ynambak techsurprises.com
- 6. The Five Elementsof a Partner Program 1. Current Situation 2. Vision for the Partnership 3. Collaboration Areas 4. Success Metrics 5. Next Steps Goals
- 7. Current Situation Objective: Establish agood understanding of the key business highlights and priorities for both companies. How to prepare for the meeting to explore a potential partnership between two companies? Start by understanding your partner business model and financials. This background will help you credibly articulate opportunities your two companies are best positioned to address together. There are two ways for you to gather that information: • Connect with some of the team members of the potential partner • Complete secondary research to better understand your partner business model. Start your meeting by presenting your key findings and invite the partner to comment.
- 8. Source: Forbes, 2014| Economist, 2014 | TIME, 2013 85% 5.3 8.4 2011 2014 Revenue [$B] Where McKinsey is Today 60% Repeat customers New customers 15% $400m HSW McKinsey Knowledge Development Budget McKinsey is a private company, so you need to rely on data from newspapers (e.g. Wall Street Journal) and magazines (e.g. The Economist) to understand their business outlook. Accenture is a public company, so a good place to start is to look inside the Annual Report and Quarterly Reports.
- 9. Source: Economist 2013| HBR 2013 The Consulting Industry is Changing… “As access to knowledge is democratized, clients no longer have to pay the fees of big consulting firms.” “Clients are increasingly demanding specific expertise, not just raw brainpower.” Expand your research to look more broadly at the challenges that your partner industry or a specific line of business is facing. Think how your company can be part of the solution.
- 10. … But McKinseyIs Always a Step Ahead “We help you get more value out of your systems and facilitate critical decisions.” Hugo Sarrazin McKinsey Senior Partner Leader of Digital Labs “Our team has more than 800+ analytics experts includes analysts, data scientists, data architects and analytics consultants” Nicolaus Henke McKinsey Senior Partner Leader of Analytics Start building a case on why your product/services combo is relevant to the partner. Perhaps they’ve recently invested in technologies adjacent to yours?
- 11. Source: Wharton 2015 12% 40% 20152018 Service Provider Ecosystem at McKinsey as % of overall activity Where McKinsey is Heading “We are partnering with people we never would have partnered with before. It’s only 12% of our activity now; I’d like it to be 40%” Dominic Barton Global Managing Director of McKinsey & Company Summarize your research by listing the top priorities for the partner. Focus on these where a partnership with your company can make a real difference. By positioning your offering in the context of the partner’s existing priorities, you increase your chances of success.
- 12. Where Accenture isHeading Similarly, if you’re pitching a partnership to Accenture, you can pick a relevant quote from their CEO… Accenture chairman and CEO Pierre Nanterme “The future of the organization and the business model will involve combining business and technology opportunities.”
- 13. Where Accenture isHeading … or a technology leader responsible for partnerships with companies similar to yours. “Instead of traditional model or engaging and hiring a consultant and us billing for it we’re much more focused now on how do we create an outcome?” Global Managing Director SaaS and Emerging Platforms Saideep Raj
- 14. <Your Company Name>is a Great Partner ● What’s your revenue? ● How many customers do you have? ● Have you won any industry awards? ● Have you been recognized by major publications? ● How does your partner ecosystem look like? ● Do you have quotes from existing partners and customers? Now time to introduce your company and its key achievements
- 15. Vision for the Partnership Objective:Describe a vision for the partnership and outline key objectives that we can achieve together. Focus on the benefits of a partnership for both partners and customers alike. Back your vision up by industry trends. For example, we live in the age of digital disruption where newcomers like Shave Club leverage technology to build direct relationships with customers and quickly gain a big market share at the expense of incumbents ($1bn sale to Unilever). If many of your customers are Fortune 500 companies, focus on how you and the partner can help position your key accounts for success in the digital era.
- 16. Every CEO Hasto Decide Today Where They Want to Be on the Digital Transformation Spectrum Very Selectively Digital There isn’t a single Céline product that you can buy online Digital Business Model Service-oriented online retail based on direct relationship with customers ? Begin with your point of view on some of the tectonic shifts affecting your customer base. For example, The most strategic technology decision an enterprise can make today is to pick their spot on the digital transformation spectrum. This decision will have a tremendous impact on the business model and inform a broader IT strategy, and the need for specific organizational capabilities. Some companies will be digital natives born in the cloud and very independent. Others will be very conservative. The majority are in the middle of the spectrum.
- 17. Vision for McKinsey and<Your Company> Partnership Product 1 Product 2 Product 3 Professional Services Training Innovation Capabilities Impact on the Organization StrategyGoals Cultural Alignment Change Management Digital Leader Program Office <Your Company Logo> Introduce the vision for the partnership by explaining how your customers will benefit from your joint offering. • For example, the core competencies of McKinsey are defining and implementing the strategy, re-arranging internal operations and putting processes in place to deal with change. • Your company provides the technology for digital leaders. • Together, you’ll not only provide the digital transformation platform and tools, but you’ll empower the customer to execute on that vision and drive it across their organizations for deep and systematic impact.
- 18. B2B digital leadersdrive five times more revenue growth than their peers 5X Source: McKinsey, Oct 2016 Industry Average Digital Leader It’s always a good idea to back your point of view with research from a respected source. In this case, I was able to find a report from McKinsey that quantifies financial gains of being a digital leader. “Digital leaders enjoy 5x higher revenue growth than their industry average.” Now, you can start envisioning a joint offering between you and your partner. Every CEO knows that digital must be an integral part of their strategy but how to get there is the big challenge. How can you help them on the journey?
- 19. Collaboration Areas Definition: Propose concreteareas of collaboration, such as joint marketing activities, sales enablement programs and revenue sharing models Once you have painted a vision for the partnership between your companies, it’s time to agree on the go-to-market strategy for your joint offering. You also need to discuss the needs for sales and technical enablement at both companies. Finally, agree on the financial incentives and revenue recognition.
- 20. Areas of Collaboration MarketingActivities • Thought leadership • Online presence • Demand generation • Events • Customer Advisory Board Sales Enablement • Sales playbook • Pitch decks (executive presentation, technical deep dives) • “Leave-behind” brochures and whitepapers Training • Product training • Services training Referral Program • Free trial codes • Re-sale revenue The key areas of collaboration between partners include: • Marketing programs ranging from establishing a joint brand through various publications, analyst relations and customer advisory boards to joint events and demand generation activities. • Sales enablement programs to create and maintain sales materials and build a thriving community of experts on the joint offering • Training programs covering both formal instructor- led and online courses. • Referral program where we can share product revenue generated a s result of our collaboration
- 21. Marketing Activities Thought Leadership• Joint market research studies • Analyst reports (IDC interviews partner customers about their experience) • Articles by prominent McKinsey/Accenture and your company executives Online Presence • Microsites • App Store Demand Generation • Email campaigns • Social media campaigns • Webinars Events • Company events • Industry and analyst events Customer Advisory Board • Inspire CEOs to become the digital leaders and give them the tools to succeed Sample marketing activities.
- 22. Customer Advisory Board ObjectiveInspire CEOs to become the digital leaders and give them the tools to succeed Digital Immersion Invite CEOs to program events at <Your Company> headquarters and Stanford GSB Thought Leadership • Speaking opportunities for CEOs in the program • Publications <Your Company> If the vision for the partnership between your companies is to enable more enterprises to become digital leaders, you need to decide how to engage your customers in a structured way. For example, you can create a Customer Advisory Board that requires CEO participation. The goal of the program would be to inspire the CEOs to become the digital leaders and give them the tools to succeed.
- 23. Leader Practitioner Novice No engagements 1-2engagements Multiple engagements Customer Advisory Board Recruitment Your company recruits CEO candidates for strategic McKinsey engagements McKinsey recruits CEO candidates for your digital transformation platform <Your Company> Do you and the partner have any joint customer? Both McK and your company will be equally involved in recruiting the CEOs that would be likely candidates for the partner services. We already have a few joint accounts who are digital leaders, and we’d like to include them in the program as well to show appreciation, help them build peer networks and inspire others.
- 24. Leader Become a thought leader Practitioner Getinspired by digital leaders Novice Envision a digital future No engagements 1-2 engagements Multiple engagements Customer Advisory Board Value Proposition <Your Company> There are three tiers of the Customer Advisory Board program, depending how digitally advanced the customer is. 2 3 1
- 25. Venue Time Activity 9AM CEO Panel 10 AM GSB Lecture: Culture of Innovation 11 AM Boot Camp: Digital Transformation 12 PM Networking: Lunch 1 PM Transport to San Francisco 2 PM Demos: Tour of your company EBC 3 PM CEO Insights: A CEO of a joint account 4 PM CEO Insights: A Digital Strategy Framework (Dominic Barton) 5 PM Networking: Cocktail Hour followed by Dinner Customer Advisory Board Digital Immersion Day If you’d like to gather several CEOs of your client company in one room, you have to design an agenda that would be compelling enough for them to prioritize it. Most leaders would like to join their peers at digital immersion days and participate in thought leadership opportunities.
- 26. Success Metrics Objective: After paintinga vision for the partnership and exploring areas of collaboration, you want to agree on the metrics that adequately reflect the success of your joint venture. It’s critical for both partners to agree on how to measure success. There are different types of metrics you can use, for example: • Product and Services revenue targets • Number of customer accounts each partner will introduce the other one to • Customer satisfaction targets on joint projects • Number of customer testimonials
- 27. Success Metrics forthe Customer Advisory Board Program Account Expansion E.g. 10% growth in each account participating in the Customer Advisory Board within one year of joining the program Customer Acquisition 3 New Customers Thought Leadership - 3 new customer case studies - 2 customer speaking opportunities Customer Satisfaction 100% product/service renewal among participating accounts <Your Company> Explain tangible benefits to both of your companies that the partnership will bring.
- 28. Next Steps Objective: Don’tleave the meeting before you and the partner agree on the next steps To ensure a smooth transition from a joint partnership vision to execution, make sure you have a list of the next steps required to achieve success. For starters, you can focus on a pilot with a short timeline and clearly defend milestones.
- 29. Customer Advisory Board ProgramPilot • Build the program team • Invite 3 CEOs • Invite Dominic Barton • Approve the agenda • Collect feedback • Analyze results • Recommendations • Agree on the execution plan with the McKinsey team • Invite 3 CEOs • Invite your company CEOs • Finalize the agenda • Deliver the boot camp • Collect feedback January February March April <Your Company> Here’s a sample pilot of a Customer Advisory Board program that allows you to test the hypothesis on which benefits would your customers enjoy by within a 100-120 day period.
- 30. + Helping Customers ClaimTheir Chosen Spot on the Digital Transformation Spectrum = Digital Leaders<Your Company> Close the meeting by restating how your companies by combining forces will help your joint customers close the gap between the potential that the technology provides and actual realization that requires a thoughtful and systematic execution.
Editor's Notes
- #9 McKinsey revenue has been growing at a great rate – 17% a year 85% of your business comes from repeat customers, which means very high customer satisfaction rates. You’re a thought leader in business and leadership related research area not just among consultancy companies but also the best business schools in the country. In fact, you spend more on knowledge development than Harvard, Stanford and Wharton business schools combined. Your signature publication, McKinsey Quarterly, is a common read among C-suite execs worldwide. --- $8.4 Billion Revenue 2014 http://www.forbes.com/companies/mckinsey-company/ $5.3 Billion Revenue 2011 http://www.economist.com/news/business/21577376-world-grows-more-confusing-demand-clever-consultants-booming-brainy more than 85 percent of the firm’s business comes from repeat customers In 1981, Hugh McColl, who was head of then-tiny North Carolina National Bank, asked McKinsey to help him design an organizational structure that wouldn’t require changing until he’d turned NCNB into the biggest bank in the country. At the time, it had only $6 billion in assets, nothing compared to financial giants like Citicorp or Chase Manhattan. And they helped him do so. Seventeen years later, when what was then called NationsBank acquired Bank of America, McColl had himself the biggest bank in the country. You can be sure he wasn’t asking McKinsey for a refund. http://business.time.com/2013/09/10/mass-layoffs-overpaid-ceos-blame-mckinsey/ The firm invests $400m a year on “knowledge development”, and Mr Barton touts its “university-like capabilities” to impart it to its consultants. http://www.economist.com/news/business/21577376-world-grows-more-confusing-demand-clever-consultants-booming-brainy
- #10 Mgmt consulting industry itself has been changing a lot in the past decade. Several leading publications were predicting the demise of the classic strategy consulting in favor of more specialized offerings, often extending to the IT implementation part. --- Management consulting’s fundamental business model has not changed in more than 100 years. It has always involved sending smart outsiders into organizations for a finite period of time and asking them to recommend solutions for the most difficult problems confronting their clients. At traditional strategy-consulting firms, the share of work that is classic strategy is now about 20%—down from 60% to 70% some 30 years ago. https://hbr.org/2013/10/consulting-on-the-cusp-of-disruption http://www.economist.com/news/business/21577376-world-grows-more-confusing-demand-clever-consultants-booming-brainy
- #11 McKinsey is becoming more involved with technology, in ways such as providing software to clients. They created the Analytics group where you develop custom, predictive models based on your client data to allow them to evaluate various business strategies. As part of their consulting engagements they now actually build software solutions for their customers and have a portfolio of 35 models clients can further customize. The Digital Labs group helps clients not only envision but also prototype new customer experiences, which are often the first step in digital transformation journey. McKinsey extends their business strategy services by IT strategy consulting. It’s fair to say that McKinsey is a SW company. --- Our team of more than 800+ analytics experts includes analysts, data scientists, data architects, and analytics consultants, nearly all with advanced degrees in their fields. This experienced team has expertise across 19 core service areas ranging from marketing mix modeling to supply chain network optimization. This analytics expertise—combined with rigorous problem solving and creative data sourcing—allows us to develop consistently high-performing models. Our marketing mix models typically deliver 15% improvement in marketing ROI. http://www.mckinsey.com/business-functions/mckinsey-analytics/how-we-help-clients/about-this-practice https://www.youtube.com/watch?v=Qn3W6UYo_NI Digital Labs is home to more than 850 of the world’s best human-centered designers, data scientists, software specialists, and agile engineers and coaches. That scale lets us quickly ramp up our clients’ digital capabilities and offerings. Working closely with our consultants, we combine the best of McKinsey’s traditional strategic and analytical rigor with innovative rapid-prototyping capabilities to deliver digital transformations. http://www.mckinsey.com/business-functions/digital-mckinsey/how-we-help-clients/digital-labs
- #12 “We are partnering with people we never would have partnered with before. It’s only 12% of our activity now; I’d like it to be 40%. I think we’re on track to do that in the next three years.” Sep 2015 Dominic Barton, Global Managing Director of McKinsey & Company http://knowledge.wharton.upenn.edu/article/mckinseys-dominic-barton-on-leadership-and-his-three-tries-to-make-partner/
- #13 http://sloanreview.mit.edu/article/conversation-with-the-ceo-pierre-nanterme-chairman-and-ceo-accenture/
- #17 http://www.mckinsey.com/industries/retail/our-insights/the-business-of-creating-desire-an-interview-with-the-ceo-of-lvmh-fashion-group
- #19 http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-b2b-digital-leaders-drive-five-times-more-revenue-growth-than-their-peers?cid=other-eml-alt-mip-mck-oth-1610
- #25 .