Top 5 Things Your Executives Need to Know About Alliances, #4 Don't Try This At Home

Don't Try This at Home

In the most recent IBM CEO Study, top performing companies were more than 28% more likely to leverage partnerships for innovation than their under performing counterparts. Top performing firms value collaborative skills and recognize that recruiting and developing people with these skills are critical to their competitive success.

My boss is fond of saying that Alliance management is a profession - not a hobby. Alliance Management requires a specific skill set. Good alliance managers don't grow on trees, they are not a dime a dozen. Good alliance managers have good business savvy, strong conflict management skills, good "EQ"- emotional intelligence, and strong political and organization navigation skills.

You wouldn't put an unskilled sales rep to manage a strategic customer account, so why would you take someone who couldn't cut it in sales and put them on a strategic partnership?

To drive innovation through alliances, bring in the professionals!

Top 5 Things Your Executives Need to Know About Alliances - #3

Alliances Make the Pie Bigger

There is sometimes a misconception that working with partners is a “zero sum game”  - the more money a partner makes on a deal, the less money your company will make on a deal. In actual fact, more times than not, a partner will help make the size of the pie bigger – “supersize” the deal if you will. How? In a few ways.

1) Scale

At my company, we have several partners that are much larger organizations with thousands of employees and deep presence in Fortune 500 firms. We also have a very large network of smaller partners, who may not have the same reach as the larger partners, but do have deep domain expertise in areas where we need it, and are "boots on the ground" for us in many accounts.  In both instances, partnering with these firms enhances our reach, drives customer satisfaction, and extends our influence.     

2) The vision thing
Many customers have at least one "trusted adviser" consulting organization that they engage at the C level to advise them on vision and strategy. These firms have significant influence with customers and in the IT industry, determine or influence the "stack" (software/hardware solution components) that is ultimately sold to the customer. Partnering with these firms early can put you in the "pole position" in this process and uncover opportunities that you did not even know were there. And turn what for you might have been a departmental sale ($) into a much larger enterprise ($$$) sale. 

3) Access to new markets
Often companies will use partners to establish their presence in new geographic markets. In this case, partners not only increase the size of the pie, they serve up the pie, too!


4) Deal acceleration
Partners can really help provide account intelligence that help you identify potential risks to deal closure. Partners can also help you mitigate those risks to help increase the odds of closure. They can also help validate your solution (through Proof of Concept support for example) and can accelerate your sales cycle, helping you close deals faster. All of these efforts increase your revenues.

Next post - Top 5 Things Your Executives Need to Know About Alliances -  #4 : Alliances Help Drive Innovation

Top 5 Things Your Executives Need to Know about Alliances - #2

    Alliances are a Team Sport

The alliances organization is a completely dependent organization  – that is to say, we are completely dependent upon the involvement of other organizations to successfully develop and execute alliances. When we make a commitment to a partner, we are making a corporate commitment to that partner on behalf of our company. This means that many organizations at our company (sales, product marketing, product management, professional services, legal, field marketing, external communications, etc.) have a role to play and will be engaged early and often as we establish and develop partnerships.

Therefore, as an executive, in order to ensure high performing alliances, it's not only important that you have strong collaboration skills within your alliances organization, you must also ensure that these skills permeate across the company. You want an "alliance aware" organization - where all the departments that are involved in establishing and developing alliances understand how to collaborate, manage conflict, ensure alignment and drive positive outcomes for BOTH companies.

Alliances are a team sport!

Next post: #3 Alliances Make the Pie Bigger

Top 5 Things Your Executives Need to Know about Alliances - #1

As alliance managers, sometimes our biggest sales job of all is convincing our internal executives of the value of alliances and what it takes to make them successful. Among the key questions we need to answer are:

• What is involved in establishing new partnerships? 
• Why do we need partners? 
• What do alliance managers do anyway? 
• Why do I care?

Do you get these questions from your executives? 


In my next several posts I'll cover the Top 5 Things Your Executives Need to Know About Alliances.

1.       Alliance Relationships Require Care and Feeding

Alliance relationships are much like personal relationships, they require care and feeding to establish and grow. Alliance relationships are made up of a series of personal relationships between executives and stakeholders at both companies. Managing these relationships, developing the shared vision and constructing and executing the joint business plan, is the raison d’etre of the Alliance Manager. All alliances are established based on a promise of mutual value. The role of the Alliance Manager is “value creation” – orchestrating resources, aligning strategic goals, managing conflict to ensure that both our company and our partner realize mutual value.

Next post - #2: Alliances are a Team Sport

Managing Differences - Job #1

One of my most important takeaways from Vantage Partner's Alliance University last month was the whole idea that alliances at their core, are about managing differences.

We've all heard people say that alliances are all about "finding the win-win", "looking for the joint value proposition", finding "common ground" and the like. It turns out, that while those things are important, even necessary in forging an alliance relationship, they are not sufficient.

Why?

Well, think about it. According to various studies, alliances have a 50% (or higher depending on the study) failure rate. Presumably, the alliances formed based on identified "common ground" or compelling "joint value proposition", but they didn't last. When I look back at failed partnerships in my 15+ years in alliances, the root cause of the failures was a lack of attention paid to the differences between the two organizations.

Alliance managers sit in between two organizations with different structures, business models, politics, org charts, policies, cultures, philosophies, processes, contracts, etc. etc. The list of differences is usually longer than the list of things we have in common!

When we just focus on the things we have in common, the things our two companies are completely aligned on, and ignore the long list of things where we are not aligned - where we have differences - we are inviting the inevitable conflict. Often that conflict simmers under the surface, but it is always there, like a cancer on the alliance relationship. Left untreated, the patient - our partnership - dies.

Instead, we should proactively, deliberately and intentionally, work with our partner to identify our areas of difference, with particular focus on those areas that are likely to cause conflict. It is a fool's errand to pretend that we can wish away or hope away these differences. A better strategy is to face them head on, and talk openly as a joint team about how we can manage these differences.

Managing differences is job #1 for alliance managers!

Curiosity Killed the Cat (but Saved the Alliance)

More from Vantage Partner's Alliance University class delivered by Stu Kliman.

Curiosity - genuine and honest curiosity, is a critical mindset for successful alliance managers. This is the mindset for effective conflict resolution. Why?

When we are in the midst of conflict with our partner or with an internal stakeholder, we tend to assume our intentions are good (and we are "right"), but we don't always extend the benefit of the doubt to our partners. We assume we understand their intentions (bad) and that we are in full possession of all the facts.

The fact is, the only thing we know with certainty is what's going on in our own head!

Understanding our partner's interests and intents requires breaking through our "certainty" and adopting a mindset of curiosity. "Hmmn, she has a completely different take on this situation than I do. I wonder what data she's looking at? I wonder what's her reasoning is? I wonder why she feels this way". These are the questions that start a learning dialog.

And curiosity, genuine and true curiosity about our partners interests and intents, is the starting point to resolving conflict in our alliance relationships.

Mind the Gap

Stu Kliman from Vantage Partners did an excellent session for our alliances organization last week on conflict management and resolution. My takeaways from this session, which we called SAS Alliance University, will be the subject of several blog posts.

My first takeaway I call "Mind The Gap". No, not the ubiquitous retail store!

Stu kicked off the session with a video of a difficult conversation between two alliance managers and he asked us to identify "helpful and unhelpful" behaviors. We all proceeded to diagnose the root causes of the conflict and develop a list of the "unhelpful" comments from both parties.

Stu posited that if you could put these two alliance managers in our class and have them watch the same video, they would have no problem identifying the problem behaviors. In other words, "out of the moment" they could dispassionately diagnose the "good, the bad and the ugly." We are the same way - often we know what the right thing thing to do is, but in the moment, we fail to do the right thing.

Why?

When we are in conflict ridden alliance conversations, the stakes are usually high. The success of the alliance is often on the line, and the expectations and pressure to deliver are high. This ratchets up our emotions and increases the likelihood of a bad outcome.

Stu calls this phenomenon - the "gap between our espoused beliefs and our practiced beliefs."

What does it require to close this gap? Humility and deliberate, intentional effort to practice good conflict management and resolution techniques. I'll cover these in subsequent posts.

Ironically, the more arrogant someone is about their conflict management skills, the larger the gap is between their espoused and practiced beliefs! To develop your alliance skills in this area - mind the gap!