Partner for Success Presented by Lynda Smith, Fenwick and West - - PowerPoint PPT Presentation

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Partner for Success Presented by Lynda Smith, Fenwick and West - - PowerPoint PPT Presentation

Aug 28, 2023 13 likes •313 views

Partner for Success Presented by Lynda Smith, Fenwick and West Consulting Professor, Stanford Technology Ventures Program . Typical Partnership Results 200 high-tech companies surveyed 94% stated alliances were important to their

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Partner for Success

Presented by Lynda Smith, Fenwick and West Consulting Professor, Stanford Technology Ventures Program

.

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Stanford Center for Professional Development •

Typical Partnership Results

  • 200 high-tech companies surveyed

– 94% stated alliances were important to their overall corporate strategy – 70% had only achieved initial goals or failed outright

  • Why Do Partnerships Fail?

– No formal governance infrastructure – Lack of agreed-upon performance metrics – No regular assessment – No senior management involvement – Insufficient resources

Source: Robert Frerichs, Andersen Consulting

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Stanford Center for Professional Development •

Agenda

  • Frameworks for thinking about partner

relationships

  • Tools for structuring success
  • Putting it in action
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Stanford Center for Professional Development •

“Partnership” is Used Across a Broad Range of Institutional Relationships

Depth of Commitment & Exclusivity Short Unknown Long Shallow/ Usually Polygamous Single Transaction (not a partnership) Renewable VAR Agreement 5-Year Sourcing Contract Deeper/Often Polygamous Cooperative Advertising R&D Partnership Joint Venture Deepest/Usuall y Monogamous 1 year exclusive license Renewable Exclusive Terms Merger/ Acquisition (not a partnership) Expected Length of the Relationship

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Stanford Center for Professional Development •

Some Partnerships Focus on More Than Profits

Revenue & Profit Potential from the Partner High Low Partner’s Potential to Help You Develop Your Core Competencies Low High

Earning Partner Limited Partner Strategic Partner Learning Partner

Source: Kosnik and Montgomery (1994), “Managing Cross Cultural Alliances: Can Trust be Achieved in a Polygamous World?”

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Stanford Center for Professional Development • 6

Partnering Lifecycle

Life Cycle Stage Description Early Phase

  • Partners are sizing each other up
  • Firms mobilize internal support for alliance

Growth Phase

  • Firms demonstrate commitment

Maturity Phase

  • Firms revisit relationship
  • Firms understand value
  • Contracts may be up for renegotiation
  • Firms may decide to dissolve relationship

Source: H. Adobor, The role of personal relationships in inter-firm alliances

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Stanford Center for Professional Development •

Agenda

  • Frameworks for thinking about partner relationships
  • Tools for structuring success

– Defining the Partner Business Proposition – Aligning Resources to Value – Building an Alliance Program – Essentials of Partnering – Measurment

  • Putting it in action
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Stanford Center for Professional Development • 8

The Partner Business Proposition

A business proposition answers: “Why should we bet our resources and reputation

  • n you?” (partner question)

This contrasts with a value proposition that answers: “Why should I buy your product?” (customer question)

Source: Rhoner & Associates

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Stanford Center for Professional Development • 9

Contrasting the Propositions

Value Proposition Business Proposition Focus Product Partners Objective Sell products using the value prop. Create bias thru the business prop. Attributes

  • Features
  • Benefits
  • Profit
  • Incremental Sales
  • Strategic Value

Source: Rhoner & Associates

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Stanford Center for Professional Development • 10

Orphan Status: When the Business Proposition Isn’t Strong Enough Mainstream Products Adjacent/ Contiguous Products Unworthy Products Orphan Products

Revenue Productivity Potential Worthiness

Higher Lower Lower Higher

Source: Rhoner & Associates

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Stanford Center for Professional Development •

What Partners Can Give and Get in a Partnership

Potential Stakes to bet on the Partnership Partner can give: Partner can get: Technology (product, platform, and process technologies) Resources (money, time, talent, and knowledge ) Relationships (with customers, channels, investors, government) Reputation (visibility, credibility, brand equity) Core Competencies (critical capabilities for execution) Chemistry of Key People (culture, character, personalities, values) Company Vision (purpose, mission, values) and strategy

Adapted from: Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?” Talk for Stanford Center for Professional Education, January 26, 2000

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Stanford Center for Professional Development • 12

Partner Synergy Drives Stratification and Resource Alignment

Value to Company

Strategic Opportunistic Tactical Misfit

High Low Low High

Source: Lynda Kate Smith

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Stanford Center for Professional Development • 13

Establishing Guidelines for Partner Investment

Resources Time

  • Marketing Collateral
  • Joint Development
  • Pre-packaged,

repeatable solutions

  • New Sales Initiative
  • Knowledge Exchange
  • Solution Offering
  • Training
  • Seminars & Conferences
  • Subcontracting
  • Technology Exchange
  • Demonstration Centers
  • Joint Business Plan
  • Joint client

development

Source: Kevin Kew

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Stanford Center for Professional Development •

Typical Alliance Program Structure

  • One person assigned to manage many alliances
  • Not run as a business

Lac Lack of

  • f fund

unding f for

  • r the

the alliance ances No signi nificant e ant executi cutive e accounta countable f e for t the succe cess o

  • f the a

e alliances ances Lack o

  • f oper

erati tiona

  • nal

syste tems to to sup upport and and (or (or) measur ure p e perfor

  • rmance

nce

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Stanford Center for Professional Development •

Why Do We Need an Alliance Program?

Not to be Confused with “Why Do we Need Alliances?”

  • Manage our Resources more Effectively and Efficiently

– Investment Matches Partner’s Value-Add / Revenue Contribution

  • Supports the 80x20 rule. e.g. Provide the 20% of our Partnerships that Drive 80% of our Channel /

Influence Revenue the Lion’s share of Resources

– Address the largest possible partner audience while gaining the maximum possible revenues through partners – Address organizational alignment to ensure we’re “putting all the wood behind the arrowhead”

  • Manage Partner’s Expectations

– Defines a Hierarchy of Conditions for Preferred Access to MatrixOne Resources – Offers a set of predefined standards that guide the agreement terms and conditions for which Partners will (or can) Interact with MatrixOne

  • Increases Quality for Solution / Services

– Certification Programs – Developers Programs

  • Serves as a Differentiator
  • Aids in the Recruitment of New & Desired Partners
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Stanford Center for Professional Development •

Key Building Blocks of a World-Class Global Alliance Program

  • Clear & Measurable Program Membership Criteria
  • Pre-Defined Rights & Privileges

– In particular, rights & privileges that we are prepared to deliver in consideration of the requirements / expectations set behind membership

  • Training & Knowledge Transfer

– Informal and Formal

  • Effective & Frequent Communication

– Inbound and Outbound

  • Controls & Reporting

– e.g. Application Approval Process, Legal Agreement Architecture, Access to Demo Software, Fees, etc.

  • Effective Alliance Management / Coverage

The Special Sauce: Making the Program Appear ‘Bigger than Life’ While Managing All of this Within the Context of your Limited Resources & Other Constraints

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Stanford Center for Professional Development •

Partner Needs Fulfilled by the Alliance Program

  • Improved Access to Training & Content

– Educational Services, Knowledge Channel, & PartnerLink

  • Clear, Achievable Expectations Set

– Consistent Agreements Across Geographies – Access to Sales Force & Customers – Understanding How to Work with Company & Whom – “On-the-Air”, Web Page Promotion, Success Stories & Co- Branding

  • Focus on Quality & Customer Satisfaction

– Certified Professional program

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Stanford Center for Professional Development • 18

Essentials of Partnering

  • Be sure you understand the contractual relationship you have

with your partner.

  • Be sure your partner understands what value you bring to the

partnership.

  • Be sure you understand what value your partner brings to the

partnership.

  • Have a business plan that includes your partner.
  • Get the top people in your organization behind the partnership.
  • Personally work to make the partnership successful.
  • Find a good reason to partner.
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Stanford Center for Professional Development • 19

Essentials of Partnering

  • Don't tell your partner what you think he wants to hear, tell the

truth.

  • When conflicts arise, seek to understand your partner's position.
  • Never talk in a negative manner about your partner in front of

clients or other 3rd parties.

  • Respect your partner's way of doing business.
  • Don't let one incident or one person spoil a partnership.
  • Stick with your partner in good and bad times.
  • Focus on his added value.
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Stanford Center for Professional Development • 20

Partner Balanced Scorecard

MatrixOne Partner Agreement / Contract Signed Agreed to / Documented Joint Business Plan Collaboration Platform (e.g. eMatrix) Partner's Partner Contract Signed Sales Ops / CSFs / KPIs Identified / Agreed to Value Chain Portfolio Non-Disclosure Agreement Signed Direct Sales Model Alignment DocuManagement Central Assigned Alliance Manager (if applicable) Complementary Partner(s) Program Central Executive Relationships / Sponsorship In Place Geographic Coverage Alignment Configurator Central Company Stability Named Account Alignment Engineering Central Partner's Resource Availability Targeted Vertical Industry Segment Alignment Software Central MatrixOne' Partner Resource Availability Co MDF / Marketing Program Funds Budgeted Sourcing Central Cultural Fit Exclusive with MatrixOne Supplier Central Articulated / Shared Vision Joint Pipeline Opportunity Management Process Team Central Current MatrixOne ADK Installed in Partner's Lab Unique, Differentiated Joint Value Proposition Joint / Referenceable Customers ( ≥ 5 ) Partner Certified w/ MatrixOne' Current Release Presentations - Cust. Ready (Alliance / Tech.) Certified Solution Partner MatrixOne Certified w/ Partner's Current Release PR / Analyst / Internal Communications Plan Partnership / Joint Offering Press Release (s) Platform Alignment (e.g. OS, RDBMS, AppServer) Collateral (e.g. Partner Datasheet, Whitepaper) Certified MatrixOne Professionals Customer Support Model In-place Sales Forces Trained (Account Manager, SE) Accessible, Relevant Demo Available Integration / Adaptor Documented Demand Creation / Lead Generation Programs Independent Testimonial (e.g. Customer, Analyst) Document Offering Plan of Record / Roadmap Sales Kit / Qualification Criteria Proof-of-Concept / Starter Pack Offering Offering Pricing Documented / Agreed To Rules of Engagement Defined / Agreed To Partner is a Customer of MatrixOne Professional Services Offering Defined / Aligned Pre-sales Technical Support MatrixOne is a Customer of the Partner Education Curriculum Defined / Available Trained Deployment / Implementation Resources ROI / Return-Business-Value Model Available Key: Not Applicable

OVERALL ASSESSMENT FOR:

Criteria Completely Met; No Conflict; Project Completed; Deliverables Completed;

PARTNER XYZ ALLIANCE

Criteria Almost Met; Some Conflict; Project Partially Completed / On Track; Some Deilverables Made; Name: Alliance Manager Name Criteria Not Met; Deliverable or Project At Risk or Not Defined / Not Started; Date: Date Criteria or Project In Direct Conflict with Partner / Issue Present & Critical

Solution Synergy Go-to-Market Alignment Partnership Readiness Joint Offering Readiness Engagement Readiness Proof

Source: Kevin Kew

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Stanford Center for Professional Development •

Agenda

  • Frameworks for thinking about partner relationships
  • Tools for structuring success
  • Putting it in action
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Stanford Center for Professional Development •

Developing a Strategy Overview

  • Relationship Overview
  • Opportunity Overview
  • Business Overview
  • Success Overview

Purpose = Aligning on view to relationship.

Source: Lynda Kate Smith

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Stanford Center for Professional Development •

Relationship Overview

Source: Lynda Kate Smith

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Stanford Center for Professional Development •

Opportunity Overview

Source: Lynda Kate Smith

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Stanford Center for Professional Development •

Business Overview

Source: Lynda Kate Smith

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Stanford Center for Professional Development •

Success Overview

Source: Lynda Kate Smith

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Stanford Center for Professional Development •

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Stanford Center for Professional Development • 28

Summary

  • Vision
  • Joint Value Proposition
  • Focus
  • Quality Relationship
  • Common Goals
  • Leverage
  • Execution
  • Commitment
  • Success

VISION RELATIONSHIPS IMPACT JOINT SOLUTION

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Stanford Center for Professional Development •

Key Program Features

  • Supports Multiple Partner Types / Categories
  • Classifies Partners by “Value”
  • Access to Partner Intranet (PartnerLink)
  • Training and Education

– Sales Training (“Knowledge Channel”) – Product / Implementation

  • Formal Joint Business Planning / Forecasting / Measurement

Process – Complementary, Global Strategic Partners

  • Joint Marketing & Awareness Generation

– Internal / External – Collateral / Content Development – Company Brand Leverage

  • Joint Marketing / Program Funding Process

– MDF, Co-op, and (or) Expense Line (e.g. Proactive Budgeting)

  • Formal Certification / Logo Programs
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Stanford Center for Professional Development •

Program Structure

Rights & Privileges

  • Marketing

– Market Development Funds – Co-Op Marketing Funds – Joint Seminars – Demand Creation / Lead Generation – Logo / Branding Programs – PR

  • Support

– Pre-Sales – Transaction – Technical – Porting Assistance – Demo / Development Software

  • Training

– Sales Training – End-User Training – Implementation (Methodology) – Train-the-Trainer – Certification

  • Compensation & Controls

– Spiffs – Discounts – Margins – Referral Fees – Joint Business Planning

  • Miscellaneous

– Field Rep Access – Named Account Access – Exclusivity / Registration – Test-Pilot Development – Training – Technological Exchange – Knowledge Exchange – Sales & Marketing Programs – Shared Resources – Research & Development