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August 4, 2005

Ensuring Liftoff for a New Business Partnership

by Al Morgan

Business alliances are critical to reaching new markets and expanding geographic reach. Every day the business news tells of major alliances forming – and yet we all know that many alliances never reach their full potential. There are some basic reasons some partnerships accelerate to stardom and some never get off the ground – and they are all rooted in people, performance and measures.

Let's assume that a new alliance has all the basics, grounded in good due diligence on both sides:

  • There is a good-sized target market.
  • The products and services from both sides complement each other well.
  • Both sides are eager to work together, and have set aggressive sales goals.

Now what?
All else being equal, people prefer to do things they are asked to do, know how to do, can achieve and are motivated to do. These traits form the basics of performance measurement: DCOM, short for Direction, Competence, Opportunity and Motivation. All of these have to be in place for an alliance to grow into the revenue and profit-maker it was designed to be. So if you want both sides to do less of what they are doing today, and more of what the alliance requires, it requires consistent reinforcement. Financial incentives are rarely sufficient.


Developing a Committed Workforce:

So how do these principles apply to early stage alliances and partnerships?

    Direction. Executives on both sides must clearly state, and publicly demonstrate, their commitment. Then give people had a chance to discuss it, air issues, and get aligned with the new opportunity.

    Competence. Both sides must know one another, the joint value proposition, and have a strong working relationship.

    Opportunity. Resources, both people and money, must be specifically earmarked on both sides. Just adding a new program to an already full plate will not yield results.

    Motivation. Supervisors and management must consistently reinforce the value of the partnership, and make sure it stays at the top of every priority list. This requires actions, not just statements.

The good thing about all of these ways to reinforce partnerships in the early days is that they can be observed and counted and reported. People are keen observers of management behavior and preferences. Make it easy for them to see the priority placed on the new partnership.

Sample Measures:

Direction

  • How many times has your management team asked about progress with the partnership?
  • How many times has senior management met on both sides and reviewed progress together?
  • How often have customers been communicated with about the value of the partnership?

Competence

  • How many staff have been trained?
  • Has the business case been reviewed at team meetings?
  • Have existing success stories been reviewed, with an eye for new opportunities?

Opportunity

  • How many joint planning sessions have been held?
  • How many joint customers have been identified?
  • How many people, and how much budget, are allocated openly and specifically to the partnership?

Motivation

  • Do supervisors follow up on progress at each team meeting?
  • Is the business value brought up on a regular basis?
  • Are joint efforts tracked publicly, and commented on by management?


Demonstrating Success:

Most of the measures listed above can be counted, and should be. Post the results publicly, and comment on them frequently. These are “leading indicators” and are critical measures for steering an alliance and avoiding early-stage burnout.

Sample-Partnership-Measures.gif

Posted August 4, 2005 |
Posted to Channel Management

Comments

Imagine that. A marketer who thinks like a salesperson. Impossible? No. Thankfully. But it is good to be reminded that the first and highest goal of marketing is to generate qualified leads. That, in fact, may be the functional definition of marketing.
Pity how many of us marketers forget that, or never learn it in the first place. Lovely work. Thank you.

Posted by: Rich Binell | August 26, 2005 5:55 PM

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