Top Strategies For Launching A New Alliance

Top Strateg

ies

for Lau

nch

ing a

New

Allian

ce

Presented by:

Gerry Dehkes, Managing Partner

ProPartnering

Email: [email protected]

Tel: 1 908 894 8061

2©Copyright 2010

Professional Partnering Services, LLC

New Alliance StrategiesPre

sentation O

bjective:

�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

Introduction

3©Copyright 2010


New Alliance StrategiesPlanned

topics fo

r our

sess

ion:

�Why partner?

�Defining our partnering needs

�Ten partnering suggestions

Introduction

4©Copyright 2010


New Alliance Strategies

strategyn.,

pl.-gies[Fr

str

até

gie

<, 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 m

ost

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.p

l

What is Strateg

y?

Introduction

5©Copyright 2010


New Alliance StrategiesW

hy Par

tner

?

Give Customers what they want while

doing only what you want!

Why Partner?

6©Copyright 2010


New Alliance StrategiesM

ake / B

uy / A

lly M

atrix

Ally

Ally

Buy

Ally

Make

Invest

&

Make

Make

Buy

Buy

Low

High

Med

Competence Compared with the

Best in the Industry

Low

Med

High

Strategic Importance of Activity

Make/Buy/Ally

7©Copyright 2010


New Alliance Strategies

Successful partnering is about having

the right partnerstaking

the right actionson our behalf.

Identifying The Right Partners

8©Copyright 2010


New Alliance StrategiesThe Allian

ce P

artn

erin

g Pro

cess

�This process is

used to identify

potential partners

and to create and

maintain successful

partnerships

�The m

odel helps us

to focus on the key

areas to develop

and nurture

strategic alliance

partnerships

Partnering Process

�Define partnering needs

Define partnering needs



�Attract and qualify partners

Attract and qualify partners



�Formalize the initiative

Formalize the initiative



�Implement the partnership

Implement the partnership



�Deliver value together

Deliver value together



�Nurture the relationship

Nurture the relationship



Partnering Process

Partnering Process

Partnering Process

Partnering Process

9©Copyright 2010


New Alliance StrategiesD

efin

e Par

tner

ing N

eeds

�Should we partner?

�What roles do we

want partners to

play?

�What is the profile of

the desired partner?

�Why will the partner

want to play the

roles we identified?

Define Partnering Needs

�Define partnering needs




�Select Target Custom

er Segments

Select Target Custom

er Segments


er Segments


er Segments

�Define Value Proposition

Define Value Proposition



�Define Functions to Deliver Value

Define Functions to Deliver Value



�Define Who Plays Which Roles

Define Who Plays Which Roles



�Define Desired Partner Profile

Define Desired Partner Profile



�Design Partner Value Proposition

Design Partner Value Proposition



�Attract and qualify partners

�Formalize the initiative

�Implement the partnership

�Deliver value together

�Nurture the relationship

Partnering Process

Partnering Process

Partnering Process

Partnering Process

10

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New Alliance StrategiesRight Actio

ns

What

are

the r

ight

actions?

�Value Delivery System

�Tasks or functions that need to be perform

ed

�Role players (Our organization and one or more others)

�Who “Owns”each function; who plays a supporting role?

�What combination of roles m

ake sense, i.e. a potential

partner exists that could capably perform

that

combination of roles?

Value Delivery System

11

©Copyright 2010


New Alliance StrategiesValue D

eliver

y Sys

tem

1.Develop a product/offer/solution

2.Generate Demand (Sell)

3.Fulfill Demand (Deliver)

4.Assume Risks

Ea

ch

ta

rge

t m

ark

et

ma

y h

ave

a u

niq

ue

VD

S


12

©Copyright 2010


New Alliance StrategiesPro

duct/O

ffer

/So

lution


�Component products

�Testing

�Certification / approval

�Services intellectual property

�Reputation



4.Assume Risks


13

©Copyright 2010


New Alliance StrategiesG

ener

atin

g D

eman

d



�Create awareness

�Generate & qualify leads

�Manage account / sales strategy

�Create & present proposal

�Negotiate contract / take order


4.Assume Risks


14

©Copyright 2010


New Alliance StrategiesFulfillin

g D

eman

d




�Manage project

�Ship, install, and test

�Train the Customer

�Support (Tiers 1, 2, & 3)

�Invoice and collect

4.Assume Risks


15

©Copyright 2010


New Alliance StrategiesAss

um

ing Risks




4.Assume Risks

�Development investment risk

�Inventory risk

�Warranty risk

�Customer financing risk


16

©Copyright 2010


New Alliance StrategiesRole assignm

ent

or W

ho d

oes

what?

�Owner: O

wn

s/is r

esp

on

sib

le f

or

the

fu

nctio

n a

nd

th

e

resu

lts—

On

e a

nd

on

ly o

ne

Ow

ne

r fo

r e

ach

ste

p

�Support role:

Pe

rfo

rms a

ll o

r p

art

of

the

fu

nctio

n f

or

the

Ow

ne

r

�Tool provider: P

rovid

es t

oo

ls,

me

tho

do

log

y a

nd/o

r

info

rma

tio

n t

o a

ssis

t O

wn

ers

an

d S

up

po

rte

rs in

pe

rfo

rmin

g a

fu

nctio

n

�Optional player: M

ay p

lay S

up

po

rt r

ole

in

ce

rta

in,

de

fin

ed

situ

atio

ns


17

©Copyright 2010


New Alliance StrategiesSim

ple V

DS M

ap


Component products

Testing

Certification / approval

Services intellectual property

Reputation

Create awareness

Generate & qualify leads

Manage account / sales strategy

Create & present proposal

Negotiate contract / take order

Manage project

Ship, install, and test

Train the Customer

Support (Tiers 1, 2, & 3)

Invoice and collect

Development investment risk

Inventory risk

Warranty risk

Customer financing risk

Us

Partner 1

Partner 2

Assume Risks

Solution

Generate Demand

Fulfill Demand

18

©Copyright 2010


New Alliance StrategiesRea

l-lif

e im

pac

t

�The invis

ibleISV 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 incom

ple

tepartner

�Needed a partner to sell and deliver

�The chosen partners could only sell

Identifying The Right Partners

19

©Copyright 2010



efin

ing Your VD

SM

�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?


20

©Copyright 2010



esired

Par

tner

Cap

ability

�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?

Desired Partner Profile

21

©Copyright 2010


New Alliance StrategiesBey

ond

“Doin

g th

e righ

t ac

tions”

Beyond b

ein

g a

ble

to p

erf

orm

the n

eeded

role

s, th

e “

Rig

ht P

art

ner”

should

be:

�A good compatibility/cultural fit

�A good strategic fit


22

©Copyright 2010


New Alliance StrategiesRight Par

tner

: Com

patib

ility/Cultura

l 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


23

©Copyright 2010


New Alliance StrategiesRight Par

tner

:St

rategic 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.


24

©Copyright 2010


New Alliance StrategiesW

e hav

e th

e Right Par

tner

:

�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.


25

©Copyright 2010


New Alliance StrategiesPar

tner

Value Pro

position

�Understand how partners make a

partnering decision

�Value experiences that attract potential

partners

�Provide evidence that the potential

partner will get the value promised.

Partner Value Proposition

26

©Copyright 2010



akin

g th

e par

tner

ing ch

oice

�Decision-m

akers 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


27

©Copyright 2010


New Alliance StrategiesValue ca

n b

e…

�Organizational

�Sales, Profits, Market Share

�Products, Technology, Market Coverage

�Personal

�Commissions, bonuses

�Political advantage, reputation

�Confidence, risk avoidance

�Public, Private, Sub-conscious


33

©Copyright 2010


New Alliance StrategiesPro

ve the va

lue

Take a few minutes to identify evidencethat

demonstrates your organization’s attractiveness

to a desirable partner. Choose one of the four

value experience elements:

�Customer Access

�Expertise

�Market/business plan

�Commitment

Sh

are

with

th

e g

roup


34

©Copyright 2010


New Alliance StrategiesAt th

is p

oin

t yo

u 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

Defining Partnering Needs

35

©Copyright 2010


New Alliance StrategiesPar

tner

ing W

isdom

�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

Partnering Wisdom

36

©Copyright 2010



ore

Par

tner

ing W

isdom

�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

Partnering Wisdom

Top Strateg

ies

for Lau

nch

ing a

New

Allian

ce

Presented by:

Gerry Dehkes, Managing Partner

ProPartnering

Email: [email protected]

Tel: 1 908 894 8061

38

©Copyright 2010



efin

e ro

les

in actio

nab

le d

etail

Component products

Testing

Certification / approval

Services intellectual property

Reputation

Create awareness

Generate & qualify leads

Manage account / sales strategy

Create & present proposal

Negotiate contract / take order

Manage project

Ship, install, and test

Train the Customer

Support (Tiers 1, 2, & 3)

Invoice and collect

Development investment risk

Inventory risk

Warranty risk

Customer financing risk

Our Sales

XX

XX

Our Mktg

X

Our Services

XX

XX

X

Our Admin

XX

Our Prod M

gtX

X

Partner 1

XX

XX

X

Partner 2

XX

Assume Risks

Solution

Generate Demand

Fulfill Demand

Aligning the Organization

Top Strategies For Launching A New Alliance

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