Overview of the ProPartnering alliance management process

1. Alliance
Management
Program Design
Gerry Dehkes, Managing Partner
ProPartnering
Email: dehkes@propartnering.com
Tel: 1 908 894 8061

2. Presentation Objective:
Define the alliance partnering process
Why a partnering process?
Key roles and tasks
Recommended task responsibilities
Partnering Process design format
Gaining sponsorship and support for partnering
Alliance Program Design
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Introduction Professional Partnering Services, LLC 2

3. As Leaders, we face:
Co
Segmentation? re
e ?
Co ag
mp s
et Coverage Map? Mes
en
ce
n t? ?
n me Empowered?
Empowered?
A lig
Management Support? Partner Portfolio?
Measurement? Sales
Wh
s? Compensation?
Wh ere to
at G m
to
Say o gra
? ro
P Customer
Satisfaction?
Alliance Program Design
Quota?
Conflict?
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Introduction Professional Partnering Services, LLC 3

4. Imagine…
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
Alliance Program Design
And…?
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Introduction Professional Partnering Services, LLC 4

5. Why A Partnering
Process?
Simplify Starting-Up
The Partnering Process pulls together the key Alliance Best
Practices in a simple, step-by-step format.
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 terminology 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 tools that
Alliance Program Design
can be customized for specific circumstances.
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Introduction Professional Partnering Services, LLC 5

6. Value Delivery System
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
Alliance Program Design
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Value Delivery System Professional Partnering Services, LLC 6

7. Alliance Program Design
Partner 2
Partner 1
Our Mktg
Our Sales
Our Admin
Our Services
X
Our Prod Mgt X
Component products
X
Testing
Why a Partner Process?
X
Certification / approval
Solution
X
X Services intellectual property
Reputation
X
Create awareness
X
Generate & qualify leads
X
Manage account / sales strategy
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X
Create & present proposal
X
Negotiate contract / take order
Generate Demand
Professional Partnering Services, LLC
X
Manage project
X
Ship, install, and test
X
Partner Process Goal:
Train the Customer
X
Support (Tiers 1, 2, & 3)
Fulfill Demand
X
Invoice and collect
X
X
Development investment risk
X
Inventory risk
X
Warranty risk
Assume Risks
X
Customer financing risk
7
Put a Value Delivery System in Place!

8. The 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
Alliance Program Design
partnerships
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9. 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
Alliance Program Design
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10. Attract and Qualify
Partners
Partnering Process
Define partnering needs
Attract and qualify partners Partner Value
Evaluate Partner Portfolio
Proposition
Identify Candidate Partners
Customize Partner Value Prop
Communicate Partner Value Prop
Relationship risk
Assess Against Desired Profile assessment
Go/No Go Decision On Candidates
Formalize the initiative
Implement the partnership
Deliver value together
Alliance Program Design
Nurture the relationship
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11. Formalize the Initiative
Partnering Process
Define partnering needs
Attract and qualify partners
Formalize the initiative Joint business
Develop Joint Business Plan planning
Trusting Partner Relationship
Offer & Value Delivery System
Mutual Objectives
Business Terms Legal
Partnership Governance System
Implementation Plan agreements
Review Process
Agree On A Contract
Implement the partnership
Deliver value together
Alliance Program Design
Nurture the relationship
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12. Implement the
Partnership
Partnering Process
Define partnering needs Clear roles and
Attract and qualify partners
Formalize the initiative responsibilities
Implement the partnership defined
Complete the Joint Offer
Ensure Partner is Prepared to
Select, train, and
Perform Roles motivate people
Ensure we are Prepared to to carry out their
Perform our Roles assigned roles
Deliver value together
Nurture the relationship
Alliance Program Design
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13. Deliver Value Together
Partnering Process
Define partnering needs Lead generation
Attract and qualify partners
Formalize the initiative
Implement the partnership Lead management
Deliver value together
Support Sales teams Sales partnering
Coop’ Lead-
Facilitate Coop’n / Lead-Sharing
Sponsorship
Sales-
Resolve Sales-Related Conflicts
Motivation
Monitor Progress Against Plan
Success stories
Take Corrective Actions
Education
Nurture the relationship
Alliance Program Design
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14. Nurture the Relationship
Partnering Process
Define partnering needs Partnership reviews
Attract and qualify partners
Formalize the initiative
Implement the partnership Risk assessment
Deliver value together
Nurture the relationship Partner recognition
Review Relationship & Revise
Establish Executive Sponsorship Executive advocacy
Communicate with Partners
Resolve Partnership Conflicts
Provide Partner Recognition
Alliance Program Design
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15. Supporting Pillars
Supporting the Six
Partnering Process Steps Are the Twin
Define partnering needs Pillars:
Attract and qualify
partners Infrastructure to
Formalize the initiative Capture, Manage,
People
Implement the partnership
and Communicate
Infrastructure
Data
Deliver value together
Nurture the relationship People to Perform
the Various
Required Functions
Alliance Program Design
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16. The Supporting Pillars
Infrastructure and People
Infrastructure: People:
Infrastructure is needed to manage All relationships need to be nurtured.
partnerships – setting objectives and The Partnering Process includes some
measuring and communicating results: specific steps to nurture and maintain the
relationship between us and a partner:
1. Partner Database and Web Site
1. Partner Managers
2. Forecast, Measure, and Report • Define and Staff Positions
Results • Set and Manage Compensation
• Influenced Revenue • Train, Support, and Motivate
• Satisfaction
2. Internal Audiences
• Customer Satisfaction
• Partner Satisfaction • Demonstrate Sponsorship
• Sponsor Satisfaction • Communicate Success Stories
• Process Fidelity • Provide Motivation
• Train in Partner Skills
3. Prepare Annual and Strategic Plans • Provide Access to Resources
3. Partners and External Audiences
Alliance Program Design
• Excellence in Partnering
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17. Partnering Roles in
Detail
Your Organization
Other Org 1
Other Org 2
Your Organization
Other Org 1
Other Org 2
Define partnering needs Implement the partnership
Select Target Customer Segments Complete the Joint Offer
Define Value Proposition Ensure Partner is Prepared to Perform Roles
Define Functions to Deliver Value Ensure we are Prepared to
Define Who Plays Which Roles Perform our Roles
Define Desired Partner Profile Deliver value together
Design Partner Value Proposition Support Sales teams
Attract and qualify partners Facilitate Coop’n / Lead-Sharing
Evaluate Partner Portfolio Resolve Sales-Related Conflicts
Identify Candidate Partners Monitor Progress Against Plan
Customize Partner Value Prop Take Corrective Actions
Communicate Partner Value Prop Nurture the relationship
Assess Against Desired Profile Review Relationship & Revise
Go/No Go Decision On Candidates Establish Executive Sponsorship
Formalize the initiative Communicate with Partners
Develop Joint Business Plan Resolve Partnership Conflicts
Alliance Program Design
Agree On A Contract Provide Partner Recognition
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18. How’s your Executive
Support?
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?
Alliance Program Design
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Executive Sponsorship Professional Partnering Services, LLC 18

19. Real Executive Support
and Sponsorship for Alliances
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
Alliance Program Design
alliances work
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20. Key Change Roles
Sponsor
Advocate
Target
Agent
Alliance Program Design
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21. Who is/can be a
Sponsor?
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)
Alliance Program Design
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22. Key roles they can/should
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 performance
Ensure that alliance performance 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
Alliance Program Design
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23. A simple, but powerful model
for changing behavior
“Pain of
Change
Perceived Pain
Alliance Program Design
Present state Barriers to Change Desired state
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24. To Change Behavior
Increase perceived “pain” of current situation
Decrease the perceived “pain” of change
“Pain of
Change
Perceived Pain
Alliance Program Design
Present state Barriers to Change Desired state
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25. Steps to take:
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; “We 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; “We’ve chosen the best, proven
way to win”
Alliance Program Design
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26. Some specific executive
sponsor action examples:
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.
Alliance Program Design
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27. Executives
Key Messages
Desired Actions Pain of the Current Situation
Public support for partnering
We lack the resources to do as we’d like.
Private support for partnering
Spend personal “capital” Working with partners is frustrating; we lack
Measure and deliver clear roles, real controls and a shared vision—
consequences and success.
Demonstrate partnering
behavior Desirability of the Proposed Behaviors
Conflicting Behaviors Collaboration leads to greater success, while
Silent or negative comments on retaining control within the product house.
partners/partnering
Some of the best partnering companies have
Not a personal objective delivered superior results through a proven
Focus on agents not targets partnering process.
Drivers
We can actually drive business with and through
Past practices/lack experience
partners.
“Distance” from partners
Lack of advocate/agent support Reducing Barriers to Changing
• Personal objectives
Personal objectives
• Collaboration that retains control within the
• Inclusion in key messages
• Inclusion in key messages
product house can be easier than you think.
• Personal relationships with partner We have people within the company who have
Alliance Program Design
•Personal relationships with partner
executives successfully partnered and will help.
executives
Vehicles
• Periodic reviews
•Periodic reviews
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28. Salespeople
Desired Actions Key Messages
Form relationships with partners
Identify opportunities to partner Pain of the Current Situation
Develop joint sales strategies Competitors are beating you by leveraging
Actively work with partner their alliances.
Conflicting Behaviors
Failure to exploit alliances Desirability of the Proposed Behaviors
Combative relationships
Little joint sales planning / activities Sales people who partner win more and
Drivers win more often.
Past practices / lack of experience
Unclear rules of engagement Reducing Barriers to Changing
Lack of awareness of joint offers Partnering is a critical sales skill
Partnering failure stories and myths today…and you can develop yours.
• Success stories
Success stories
•
Partnering is normal.
• Compensation Plan
• Compensation Plan Corporate, Product House and Sales
• Alliance Partners Web Site Management wants partnering to happen.
• Alliance Partners Web Site
• Sales Meetings
Alliance Program Design
Sales Meetings
Vehicles
•
• Sales Communications
• Sales Communications
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29. Product Managers
Key Messages
Desired Actions Pain of the Current Situation
Develop segment strategies that Losses to competitors leveraging partnerships.
appropriately leverage alliances
Make and buy options aren’t very attractive.
Explicitly delegate partner mgmt
The current approach isn’t optimal.
Support the alliance
Ignorance about cross-company alliances hurts.
Assist in nurturing the relationship
Conflicting Behaviors
Desirability of the Proposed Behaviors
Failure to consider alliances
Companies are succeeding through alliances.
Poorly articulated Value Proposition We already have alliances that may benefit us.
Independent, ad hoc management of We have proven processes and tools, and
partner relationships professionals available to support sponsors.
Ally has a higher success rate / return than buy.
Drivers
Past practices / lack of experience Reducing Barriers to Changing
Autonomy / fear of trusting others Proven tools / experience are easily accessible.
Lack of hard results data in the past The Alliances team and our processes are flexible
to work as the sponsor pleases.
• Training and tools are partner ready Our leadership supports partnering.
Training and tools are partner ready
•
• Alliance Partners Web Site
Product Management remains in control when
• Alliance Partners Web Site working with Channels and Alliances.
• Partner Advisory councils Product Managers can clearly see the alliance’s
Alliance Program Design
Partner Advisory councils
•
payback.
Vehicles
• Measurement of partnering activity
• Measurement of partnering activity
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30. Alliance
Management
Program Design
Gerry Dehkes, Managing Partner
ProPartnering
Email: dehkes@propartnering.com
Tel: 1 908 894 8061