Alliance Management Program Design

Allian

ce

Man

agem

ent

Pro

gram

Design

Gerry Dehkes, Managing Partner

ProPartnering

Email: [email protected]

Tel: 1 908 894 8061

2©Copyright 2010

Professional Partnering Services, LLC

Alliance Program DesignPresentation O

bjective:

�Define the alliance partnering process

�Why a partnering process?

�Key roles and tasks

�Recommended task responsibilities

�Partnering Process design form

at

�Gaining sponsorship and support for partnering

Intr

oduction

3©Copyright 2010


Alliance Program DesignAs Leaders, w

e face:

Covera

ge M

ap?

Managem

ent Support

?

Conflict?

Sale

s

Com

pensation?

Me

as

ur

em

en

t?

Me

as

ur

em

en

t?

Me

as

ur

em

en

t?

Me

as

ur

em

en

t?

Quota?

Segmentation?

Customer

Satisfaction?

Empowered?

Empowered?

Empowered?

Empowered?

Empowered?

Empowered?

Empowered?

Empowered?

Programs?

Core Competence?

Core Competence?

Core Competence?

Core Competence?

Message?

Where to Go

What to Say?

Partner Portfolio?

Alignment?

Alignment?

Intr

oduction

4©Copyright 2010


Alliance Program DesignIm

agine…

�Getting the results we want

�Our team being recognized as a key driver of

our organization’s success

�Powerful support from our executives and

peers

�We have the right partners taking the right

actions on our behalf

�Our organizations working seamlessly with our

alliance partners to serve customers

�And…?

Intr

oduction

5©Copyright 2010


Alliance Program DesignW

hy A Partnering

Pro

cess?

�Simplify Starting-Up

�The Partnering Process pulls together the key Alliance Best

Practices in a simple, step-by-step form

at.

�Convey Consistency and Predictability

�We want to be a “Partner of Choice”. Potential partners will look

to us to be consistent in our approach to working with partners,

they don’t like “unpredictable”partners.

�Replicate Successes

�The common framework and term

inology allow successes to be

communicated effectively and key success factors to be

leveraged under different circumstances.

�Retain Flexibility

�The Alliance Partnering Process is not a monolithic, gate-based

process. It is checklist of key steps and a collection of toolsthat

can be customized for specific circumstances.

Intr

oduction

6©Copyright 2010


Alliance Program DesignValue Delivery System

1.D

evelo

p a

pro

duct/offer/

solu

tion

2.G

enera

te D

em

and (S

ell)

3.Fulfill D

em

and (D

eliver)

4.A

ssum

e R

isks

Each target market may have a unique VDS

Valu

e D

elivery

Syste

m

7©Copyright 2010


Alliance Program DesignPartner Pro

cess G

oal:

Put a Value Delivery System in Place!

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

gt

XX

Partner 1

XX

XX

X

Partner 2

XX

Ass

um

e R

isks

Solu

tion

Genera

te D

em

and

Fulfill D

em

and

Why a

Part

ner

Pro

cess?

8©Copyright 2010


Alliance Program DesignThe Partnering 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

Part

neri

ng P

rocess

�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


Alliance Program DesignDefine Partnering Needs

�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?

Part

nering P

rocess





�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








Partnering Process

Partnering Process

Partnering Process

Partnering Process

10

©Copyright 2010


Alliance Program DesignAttract and Q

ualify

Partners

�Partner Value

Proposition

�Relationship risk

assessment

Part

nering P

rocess






�Evaluate Partner Portfolio

Evaluate Partner Portfolio



�Identify Candidate Partners

Identify Candidate Partners



�Custom

ize Partner Value Prop

Custom


Custom


Custom


�Com

municate Partner Value Prop

Com


Com


Com


�Assess Against Desired Profile

Assess Against Desired Profile



�Go/No Go Decision On Candidates

Go/No Go Decision On Candidates







Partnering Process

Partnering Process

Partnering Process

Partnering Process

11

©Copyright 2010


Alliance Program DesignForm

alize the In

itiative

�Joint business

planning

�Legal

agreements

Part

nering P

rocess







�Develop Joint Business Plan

Develop Joint Business Plan



�Trusting Partner Relationship

Trusting Partner Relationship



�Offer & Value Delivery System

Offer & Value Delivery System



�Mutual Objectives

Mutual Objectives

Mutual Objectives

Mutual Objectives

�Business Terms

Business Terms

Business Terms

Business Terms

�Partnership Governance System

Partnership Governance System



�Implementation Plan

Implementation Plan

Implementation Plan

Implementation Plan

�Review Process

Review Process

Review Process

Review Process

�Agree On A Contract

Agree On A Contract

Agree On A Contract

Agree On A Contract




Partnering Process

Partnering Process

Partnering Process

Partnering Process

12

©Copyright 2010


Alliance Program DesignIm

plemen

t the

Partnersh

ip

�Clear roles and

responsibilities

defined

�Select, train, and

motivate people

to carry out their

assigned roles

Part

nering P

rocess








�Com

plete the Joint Offer

Com


Com


Com


�Ensure Partner is Prepared to

Ensure Partner is Prepared to



Perform Roles

Perform Roles

Perform Roles

Perform Roles

�Ensure we are Prepared to

Ensure we are Prepared to



Perform our Roles

Perform our Roles

Perform our Roles

Perform our Roles



Partnering Process

Partnering Process

Partnering Process

Partnering Process

13

©Copyright 2010


Alliance Program DesignDeliver V

alue Toge

ther

�Lead generation

�Lead management

�Sales partnering

�Sponsorship

�Motivation

�Success stories

�Education

Part

nering P

rocess









�Support Sales teams

Support Sales teams

Support Sales teams

Support Sales teams

�Facilitate

Facilitate

Facilitate

Facilitate Coop

Coop

Coop

Coop’ ’’’n nnn/ Lead

/ Lead

/ Lead

/ Lead- ---Sharing

Sharing

Sharing

Sharing

�Resolve Sales

Resolve Sales

Resolve Sales

Resolve Sales- ---Related Conflicts

Related Conflicts

Related Conflicts

Related Conflicts

�Monitor Progress Against Plan

Monitor Progress Against Plan



�Take Corrective Actions

Take Corrective Actions




Partnering Process

Partnering Process

Partnering Process

Partnering Process

14

©Copyright 2010


Alliance Program DesignNurture the Relationsh

ip

�Partnership reviews

�Risk assessment

�Partner recognition

�Executive advocacy

Part

nering P

rocess










�Review Relationship & Revise

Review Relationship & Revise



�Establish Executive Sponsorship

Establish Executive Sponsorship



�Com

municate with Partners

Com


Com


Com


�Resolve Partnership Conflicts

Resolve Partnership Conflicts



�Provide Partner Recognition

Provide Partner Recognition



Partnering Process

Partnering Process

Partnering Process

Partnering Process

15

©Copyright 2010


Alliance Program Design

Infrastructure





�Attract and qualify

Attract and qualify

Attract and qualify

Attract and qualify

partners

partners

partners

partners

















Partnering Process

Partnering Process

Partnering Process

Partnering Process

Supporting Pillars

�Supporting the Six

Steps Are the Twin

Pillars:

�In

frastr

uctu

reto

Capture, Manage,

and Communicate

Data

�People

to Perform

the Various

Required Functions

People

Part

nering P

rocess

16

©Copyright 2010


Alliance Program DesignThe Supporting Pillars

Infrastructure and Peo

ple

Infr

astr

uctu

re:

Infrastructure is needed to manage

partnerships –setting objectives and

measuring and communicating results:

1.Partner Database and W

eb Site

2.Forecast, Measure, and Report

Results

•Influenced Revenue

•Satisfaction

•Customer Satisfaction

•Partner Satisfaction

•Sponsor Satisfaction

•Process Fidelity

3.Prepare Annual and Strategic Plans

People

: All relationships need to be nurtured.

The Partnering Process includes some

specific steps to nurture and maintain the

relationship between us and a partner:

1.Partner Managers

•Define and Staff Positions

•Set and Manage Compensation

•Train, Support, and Motivate

2.Internal Audiences

•Demonstrate Sponsorship

•Communicate Success Stories

•Provide Motivation

•Train in Partner Skills

•Provide Access to Resources

3.Partners and External Audiences

•Excellence in Partnering

Part

nering P

rocess

17

©Copyright 2010


Alliance Program DesignPartnering Roles in

Detail

Your Organization

Other Org 1

Other Org 2

Define p

art

neri

ng n

eeds

Select Target Customer Segments



Define W

ho Plays W

hich Roles



Attra

ct and q

ualify

part

ners



Customize Partner Value Prop

Communicate Partner Value Prop



Form

alize the initia

tive


Agree On A Contract

Part

nering P

rocess

Your Organization

Other Org 1

Other Org 2

Imple

ment th

e p

art

ners

hip

Complete the Joint Offer

Ensure Partner is Prepared to Perform

Roles


Perform

our Roles

Deliver

valu

e togeth

er

Support Sales teams

Facilitate Coop’n / Lead-Sharing

Resolve Sales-Related Conflicts



Nurt

ure

the r

ela

tionsh

ip



Communicate with Partners



18

©Copyright 2010


Alliance Program DesignHow’s your Exe

cutive

Su

pport?

�What do your Executives do to help your

alliance program?

�What do you wish they’d do?

�What do you wish they’d STOP doing?

Executive S

ponsors

hip

19

©Copyright 2010


Alliance Program DesignReal E

xecu

tive

Support

and Sponso

rship for Allian

ces

�Think about what your organization’s

leaders could do to help make alliances

REALLY successful.

�Public support you can count on

�Building real relationships with your partners

�Resolving conflicts in ways that support the

long-term

success of the alliance

�Playing the right roles in making the

alliances work

Executive S

ponsors

hip

20

©Copyright 2010


Alliance Program DesignKey C

han

ge R

oles

Advocate

Agent

Sponsor

Target

Tra

nsfo

rmin

g the O

rganiz

ation

21

©Copyright 2010


Alliance Program DesignW

ho is/

can be a

Sponso

r?

�Someone who legitimizes the alliance

�Able and willing to provide the needed

resources

�Understands the goals, need for and

impact of the alliance

�Initiating or sustaining sponsor (need

both)

Executive S

ponsors

hip

22

©Copyright 2010


Alliance Program DesignKey roles they can

/sh

ould

play:

�Commit the resources needed for the alliance to succeed

�People, money, executive time and visibility

�Publicly demonstrate support for the alliance

�Speeches, meeting time

�Privately support the alliance with key players

�Meet/build relationships with key people in both companies (and others, as

needed) to demonstrate strong, personal support for the alliance

�Provide consequence management (reward or punish)

�Reward those who facilitate alliance progress and express displeasure with

those who inhibit the alliance

�Monitor alliance perform

ance

�Ensure that alliance perform

ance is reviewed and managed on a consistent

basis, participating as appropriate

�Sacrifice for the alliance

�Make the alliance a key, personal objective, invest their time, expertise and

personal reputation in the alliance

Executive S

ponsors

hip

23

©Copyright 2010


Alliance Program DesignA sim

ple, b

ut powerful model

for ch

anging beh

avior

“Pain of

Change

Perceived Pain

Present state

Desired state

Barriers to Change

Executive S

ponsors

hip

24

©Copyright 2010


Alliance Program DesignTo C

han

ge B

ehav

ior

Increase perceived

“pain”of cu

rren

t situation

Decrease the perceived

“pain”of ch

ange

Perceived Pain

Present state

Desired state

Barriers to Change

Executive S

ponsors

hip

“Pain of

Change

25

©Copyright 2010


Alliance Program DesignSteps to tak

e:

�Disconfirm

the present state; increase discomfort with the

status quo; “Competition is beating us through their

alliances”

�Provide structure, guidance, confidence and trust while

encouraging transition toward the desired state; encourage

confidence in the organization’s and the Alliance Team

Leader’s experience and expertise, as well as the

Sponsor’s strength and influence; “W

e can do it”

�Confirm

the desired vision of the future. Acknowledge the

challenge of making the move and highlight the benefits of

the new, desired state; “W

e’ve chosen the best, proven

way to win”

Executive S

ponsors

hip

26

©Copyright 2010


Alliance Program DesignSo

me sp

ecific exe

cutive

sp

onso

r action exa

mples:

�First, understand the alliance

�What are we asking people to do?

�Who are we asking?

�Why do we think they will do it?

�Understand the overall campaign to influence people’s

actions—and the Executive’s role in executing the

campaign

�Build appropriate peer to peer relationships

�Understand and participate in the escalation process from

a position of alliance understanding and support

�Conduct regular executive level reviews of the alliance.

Executive S

ponsors

hip

27

©Copyright 2010


Alliance Program DesignExe

cutive

s

�D

esired A

ctions

�Public support for partnering

�Private support for partnering

�Spend personal “capital”

�Measure and deliver

consequences

�Demonstrate partnering

behavior

�C

onflic

ting B

ehavio

rs

�Silent or negative comments on

partners/partnering

�Not a personal objective

�Focus on agents not targets

�D

rivers

�Past practices/lack experience

�“Distance”from partners

�Lack of advocate/agent support

Key M

essages

Key M

essages

�Pain of the Current Situation

�We lack the resources to do as we’d like.

�Working with partners is frustrating; we lack

clear roles, real controls and a shared vision—

and success.

�Desirability of the Proposed Behaviors

�Collaboration leads to greater success, while

retaining control within the product house.

�Some of the best partnering companies have

delivered superior results through a proven

partnering process.

�We can actually drive business with and through

partners.

�Reducing Barriers to Changing

�Collaboration that retains control within the

product house can be easier than you think.

�We have people within the company who have

successfully partnered and will help.

•Personal objectives

•Inclusion in key messages

•Personal relationships with partner

executives

•Periodic reviews

•Personal objectives

•Inclusion in key messages

•Personal relationships with partner

executives

•Periodic reviews

Vehicles

Executive S

ponsors

hip

28

©Copyright 2010


Alliance Program DesignSalespeo

ple

�D

esired A

ctions

�Form

relationships with partners

�Identify opportunities to partner

�Develop joint sales strategies

�Actively work with partner

�C

onflic

ting B

ehavio

rs

�Failure to exploit alliances

�Combative relationships

�Little joint sales planning / activities

�D

rivers

�Past practices / lack of experience

�Unclear rules of engagement

�Lack of awareness of joint offers

�Partnering failure stories and m

yths

Key M

essages

Key M

essages


�Competitors are beating you by leveraging

their alliances.


�Sales people who partner win more and

win more often.


�Partnering is a critical sales skill

today…and you can develop yours.

�Partnering is norm

al.

�Corporate, Product House and Sales

Management wants partnering to happen.

•Success stories

•Compensation Plan

•Alliance Partners Web Site

•Sales Meetings

•Sales Communications

•Success stories

•Compensation Plan


•Sales Meetings

•Sales Communications

Vehicles

Targ

et A

ctions

29

©Copyright 2010


Alliance Program DesignPro

duct M

anag

ers

�D

esired A

ctions

�Develop segment strategies that

appropriately leverage alliances

�Explicitly delegate partner mgmt

�Support the alliance

�Assist in nurturing the relationship

�C

onflic

ting B

ehavio

rs

�Failure to consider alliances

�Poorly articulated Value Proposition

�Independent, ad hoc m

anagement of

partner relationships

�D

rivers

�Past practices / lack of experience

�Autonomy / fear of trusting others

�Lack of hard results data in the past

Key M

essages

Key M

essages


�Losses to competitors leveraging partnerships.

�Make and buy options aren’t very attractive.

�The current approach isn’t optimal.

�Ignorance about cross-company alliances hurts.


�Companies are succeeding through alliances.

�We already have alliances that may benefit us.

�We have proven processes and tools, and

professionals available to support sponsors.

�Ally has a higher success rate / return than buy.


�Proven tools / experience are easily accessible.

�The Alliances team and our processes are flexible

to work as the sponsor pleases.

�Our leadership supports partnering.

�Product Management remains in control when

working with Channels and Alliances.

�Product Managers can clearly see the alliance’s

payback.

•Training and tools are partner ready


•Partner Advisory councils

•Measurement of partnering activity

•Training and tools are partner ready


•Partner Advisory councils

•Measurement of partnering activity

Vehicles

Targ

et A

ctions

Allian

ce

Man

agem

ent

Pro

gram

Design

Gerry Dehkes, Managing Partner

ProPartnering

Email: [email protected]

Tel: 1 908 894 8061

Alliance Management Program Design

Documents

Transcript of Alliance Management Program Design