Top Strategies For Launching A New Alliance

Top Strategies
for Launching a
New Alliance
Presented by:
Gerry Dehkes, Managing Partner
ProPartnering
Email: dehkes@propartnering.com
Tel: 1 908 894 8061

Presentation Objective:

Ensure clarity and alignment around alliance
goals and strategy;
Develop guidelines for working effectively
together
Understand the importance of communication,
commitment and trust to alliance success

New Alliance Strategies
© Copyright 2010
Introduction Professional Partnering Services, LLC 2

Planned topics for our
session:

Why partner?
Defining our partnering needs
Ten partnering suggestions

© Copyright 2010

What is Strategy?

strategy n., pl. -gies [Fr stratégie <, generalship:
see STRATAGEM] 1 a) the science of
planning and directing large-scale military
operations, specif. (as distinguished from
TACTICS) of maneuvering forces into the most
advantageous position prior to actual
engagement with the enemy b) a plan or action
based on this 2 a) skill in managing or
planning, esp. by using stratagems b) a
stratagem or artful means to some end Also,
esp. for sense l, stra·tegics n.pl

© Copyright 2010

Why Partner?

Give Customers what they want while
doing only what you want!

© Copyright 2010
Why Partner? Professional Partnering Services, LLC 5

Make / Buy / Ally Matrix
Invest
High Ally & Make
Make

Med Ally Ally Make

Low Buy Buy Buy

Low Med High

Strategic Importance of Activity
Competence Compared with the
Best in the Industry

© Copyright 2010
Make/Buy/Ally Professional Partnering Services, LLC 6

Successful partnering is about having
the right partners taking
the right actions on our behalf.

© Copyright 2010
Identifying The Right Partners Professional Partnering Services, LLC 7

The Alliance Partnering
Process
This process is
Partnering Process used to identify
Define partnering needs potential partners
and to create and
Attract and qualify partners maintain successful
partnerships
Formalize the initiative
Implement the partnership The model helps us
to focus on the key
Deliver value together areas to develop
and nurture
Nurture the relationship strategic alliance

partnerships

© Copyright 2010
Partnering Process Professional Partnering Services, LLC 8

Define Partnering Needs

Partnering Process Should we partner?
Define partnering needs
What roles do we
Select Target Customer Segments
want partners to
Define Value Proposition
play?
Define Functions to Deliver Value
Define Who Plays Which Roles What is the profile of
Define Desired Partner Profile the desired partner?
Design Partner Value Proposition
Attract and qualify partners Why will the partner
Formalize the initiative want to play the
Implement the partnership
Deliver value together roles we identified?

Nurture the relationship

© Copyright 2010
Define Partnering Needs Professional Partnering Services, LLC 9

Right Actions

What are the right actions?
Value Delivery System
Tasks or functions that need to be performed
Role players (Our organization and one or more others)
Who “Owns” each function; who plays a supporting role?
What combination of roles make sense, i.e. a potential
partner exists that could capably perform that
combination of roles?

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Value Delivery System Professional Partnering Services, LLC 10


1. Develop a product/offer/solution
2. Generate Demand (Sell)
3. Fulfill Demand (Deliver)
4. Assume Risks

Each target market may have a unique VDS

© Copyright 2010

Product/Offer/Solution

Component products
Testing
Certification / approval
Services intellectual property
Reputation

4. Assume Risks

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Generating Demand


Create awareness
Generate & qualify leads
Manage account / sales strategy
Create & present proposal
Negotiate contract / take order

4. Assume Risks
© Copyright 2010

Fulfilling Demand


Manage project
Ship, install, and test
Train the Customer
Support (Tiers 1, 2, & 3)
Invoice and collect

4. Assume Risks
© Copyright 2010

Assuming Risks


4. Assume Risks
Development investment risk
Inventory risk
Warranty risk
Customer financing risk

© Copyright 2010

Role assignment
or Who does what?
Owner: Owns/is responsible for the function and the
results—One and only one Owner for each step

Support role: Performs all or part of the function for
the Owner

Tool provider: Provides tools, methodology and/or
information to assist Owners and Supporters in
performing a function

Optional player: May play Support role in certain,
defined situations

© Copyright 2010

Us

Partner 2
Partner 1

Component products
Testing
Solution

Services intellectual property
Reputation
Create awareness

© Copyright 2010
Generate Demand

Professional Partnering Services, LLC
Manage project
Train the Customer
Fulfill Demand
Simple VDS Map

Invoice and collect
Inventory risk
Warranty risk

Assume Risks

17

Real-life impact

The invisible ISV partner
Just another undifferentiated partner
Grabbed attention through credible plan

Ignoring the real sales process
Focused on the technology partners
But services drove the sale

The incomplete partner
Needed a partner to sell and deliver
The chosen partners could only sell

© Copyright 2010
Identifying The Right Partners Professional Partnering Services, LLC 18

Defining Your VDSM

One and only one owner per function
Consider and keep role player detail consistent
(company, department, individual role player)
Look for communication gaps
Look for role conflicts
Are roles and role combinations reasonable,
implementable, etc? Can you find partners who
will play these roles?

© Copyright 2010

Desired Partner Capability

Define:
We want a partner to have the organizational
ability to play their roles—people, skills,
systems, geographic or market coverage, etc.
Are they or can they be trained/prepared to
perform their roles?
Are they or can they be motivated to perform
their roles?
Can we find one partner to do these roles or

do we need more than one?
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Desired Partner Profile Professional Partnering Services, LLC 20

Beyond
“Doing the right actions”
Beyond being able to perform the needed
roles, the “Right Partner” should be:
A good compatibility/cultural fit
A good strategic fit

© Copyright 2010

Right Partner:
Compatibility/Cultural Fit
Define how well your partner(s) needs to
complement or be compatible with your
organization’s
Finances and Financial approach
Product, product portfolio and technology
Markets and Marketing messaging
Management approach (most important area!)

Partnering experience and success

© Copyright 2010

Right Partner:
Strategic Fit
Beyond being a good partner for the immediate
set of opportunities, define how:
The desired partner needs to fit with your
organization’s total product portfolio, markets and
business approach.
The partner should fit with the rest of your partner
portfolio.
The partner will be a good fit as your organization
grows, evolves or changes.

© Copyright 2010

We have the Right Partner:

Between us, we can do all that is needed
Our partner is or can be trained and motivated
to perform the roles agreed
We have compatible and complementary
cultures
Our partner fits with our other partners, our
other businesses and will likely be a good fit
over the expected life of the alliance.

© Copyright 2010

Partner Value Proposition

Understand how partners make a
partnering decision
Value experiences that attract potential
partners
Provide evidence that the potential
partner will get the value promised.

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Partner Value Proposition Professional Partnering Services, LLC 25

Making
the partnering choice
Decision-makers maximize expected value
Value happens as a result of “experiences”
We cause something to happen in the life of the
partner
The partner gets value from that experience
E.g. Our sales people promote their product, the
customer buys it and the partner gets sales.
Expected value
The perceived likelihood that the value promised will
be realized—based on evidence and judgment

© Copyright 2010

Value can be…

Organizational
Sales, Profits, Market Share
Products, Technology, Market Coverage
Personal
Commissions, bonuses
Political advantage, reputation
Confidence, risk avoidance

Public, Private, Sub-conscious
© Copyright 2010

Prove the value

Take a few minutes to identify evidence that
demonstrates your organization’s attractiveness
to a desirable partner. Choose one of the four
value experience elements:
Customer Access
Expertise
Market/business plan
Commitment
Share with the group

© Copyright 2010

At this point you know:

Market you are going after
Your customer value proposition
Roles your organization and your partner
will play
Profile of your desired partner
Value your partner will get from

partnering with your organization
© Copyright 2010
Defining Partnering Needs Professional Partnering Services, LLC 34

Partnering Wisdom

Follow a proven partnering process
Good sponsorship is crucial—don’t care more
about an alliance than your sponsor does
Build the alliance at the Executive level—sit
them side by side at the table
90% of the work happens after the deal is
signed
Conflicts are opportunities to prove the
relationship

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Partnering Wisdom Professional Partnering Services, LLC 35

More Partnering Wisdom

70% of an Alliance Manager’s work is internal
Alliance risks come
10% from Finances
10% from Product
20% from Markets
60% from Management and People

Know how your partner gets paid
Only partner with people you’d have over to dinner
with your family
Define your partnering needs first

© Copyright 2010
Partnering Wisdom Professional Partnering Services, LLC 36

Partner 2
Partner 1
Our Mktg
Our Sales

Our Admin
Our Services

X
Our Prod Mgt X

Component products
X

Testing
Aligning the Organization
X
Solution

X

X Services intellectual property
Reputation
X
Create awareness
X
X

© Copyright 2010
X

X
Generate Demand

Professional Partnering Services, LLC
Define roles

X
Manage project

X

X
Train the Customer

X
in actionable detail
Fulfill Demand

X
Invoice and collect

X
X

X
Inventory risk

X
Warranty risk

Assume Risks

X

38

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