Best Practices for Managing & Measuring Partner Relationships
Transcript of Best Practices for Managing & Measuring Partner Relationships
Best Practices for Managing & Measuring Partner Relationships
Session 1J/1K • 3:00 – 5:15pm LeadingAge Michigan
2014 Annual Conference
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Speakers Maureen Comer, OP CEO, Lourdes Senior Community
(248) 674-2241 x457 • [email protected]
Robin Eggert, MA President, REALM
(800) 995-5184 • [email protected]
Kathy Mengel Director, REALM
(800) 995-5184 • [email protected]
2
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Overview
Frameworks for thinking about
partner relationships
Tools for structuring success
Putting it in action
Case studies
3
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Older Models:
Many broad relationships with diversity of institutions
Primarily driven by cash exchange
Generally favored nonprofit’s interest
Arm’s length relationships
Garnered intangible benefits for the donor
Minimal reporting required
How Have Partnership
Models Evolved? Examining the shift through the lens of
corporate philanthropy…
4
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
How Have Partnership
Models Evolved?
Newer Models:
Selective engagement with fewer institutions
Vested commitment to the relationship
Mutual accountability for shared goals
Multiple touch points across organizations
Greater emphasis on results and outcomes
Examining the shift through the lens of
corporate philanthropy…
5
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Steps for Successful Partnership Development
Partnership Development
Cycle
Preparation
Stewardship
Cultivation
Alignment
Performance Review
Refinement
6
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Define business case
Understand available resources and capacity
Secure internal support
Conduct partner identification and vetting
Narrow options by determining “strategic fit”
Engage in exploratory discussions about the possibilities
Determine common interests
Agree on partnership goals
Align implementation strategy with goals
Establish partnership protocols and procedures
Communicate partnership goals to stakeholders
Steps for Successful Partnership Development
Preparation
Cultivation
Alignment
7
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Partner Prospecting Checklist: Compatibility of mission and values with
business goals
Organizational health
Program design
Finances/budget
Measurement capabilities
Stakeholder engagement
Recognition opportunities
Branding/public relations
8
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Connect regularly to discuss milestones
Be active and thoughtful in relationship
management
Create opportunities to strengthen connections
Summarize accomplishments
Compare and contrast results
Discuss challenges and opportunities
Determine if and how the relationship will move
forward
Use data to inform partnerships adjustments
Confirm agreement on future goals
Steps for Successful Partnership Development
Stewardship
Refinement
Performance
Review
9
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Why Partner?
Partner to enable focus
Partner to reduce costs
Partner for market access
Partner for customer access
Partner to complete solution
Partner for innovation/differentiation
Partner to expand sources of revenue
Partner to expand resources access
Other?
10
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Core Partner Types SUPPLIER PARTNERS
DISTRIBUTION PARTNERS
INFLUENCE PARTNERS
Strategic
Question:
“Buy or build?”
“Indirect or
Direct?”
“Together or
alone?”
Role: Complete the
solution
Enable faster
time-to-market
Facilitate focus
on core
competencies
Give
competitive
advantage
Reduce costs
Extend sales
reach
Accelerate
sales
Reduce costs
Provide brand
leverage
Extend
market reach
Afford cost
sharing
11
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Whole Service
THE
SERVICE
CO
MP
LIM
EN
TA
RY
SE
RV
IC
ES
CO
MP
LIM
EN
TA
RY
PR
OD
UC
TS
The whole service is the minimum products & services needed to fulfill the
target customer’s need to buy.
12
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Sales & Distribution Channels
EXPERTS
CHAMPIONS
Mark
eti
ng C
om
ple
xit
y
Solution Complexity
Hig
her
Low
er
Lower Higher
13
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Influence Partners
CATEGORY VALUE
Leveraging influence
partners to drive
business objectives:
Marketing Partners Brand Association
Demand Generation
Side-by-side Selling
Partners
Account
Relationships
Association Partners Group Affiliation
Ecosystem Partners Network Effect
Government
Partners
Business
Endorsement
14
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Revenue &
Pro
fit
Pote
nti
al fr
om
the P
art
ner
Partner’s Potential to Help You
Develop your Core Competencies
Source: Kosnik, Thomas J., and David B. Montgomery, (1994) “Cross-Cultural Strategic Alliances and Business Partnerships in the Information Technology Industry: Can Trust be Achieved in a Polygamous World?” Stanford Graduate School of Business Working Paper.
Earning Partner Strategic Partner
Limited Partner Learning Partner
Inside Looking Out
Hig
her
Low
er
Lower Higher
15
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Outside Looking In
Mainstream Services
Adjacent/
Contiguous Services
Unworthy
Services Orphan
Services
P o t e n t i a l W o r t h i n e s s
Re
ve
nu
e P
ro
du
ctiv
ity
Hig
her
Low
er
Lower Higher
16
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Orphan: When the Value
Proposition Isn’t Strong Enough
Frameworks for thinking about partner relationships
Tools for structuring success
Putting it in action
17
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Partner Synergy Drives Stratification & Resource Alignment
V A L U E T O O R G A N I Z A T I O N
VA
LU
E T
O P
AR
TN
ER
Hig
h
Low
Low High
18
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
S T R A T E G I C V A L U E
GR
OW
TH
PO
TE
NT
IAL
Hig
h
Low
Low High
Partner Value
19
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
S T R A T E G I C V A L U E
GR
OW
TH
PO
TE
NT
IAL
Hig
h
Low
Low High
Partner Value R
ES
OU
RC
ES
T I M E
Seminars & Conferences
Training
Marketing Collateral
Subcontracting
New Initiative
Knowledge Exchange
Solution Offering
Technology Exchange
Joint Client Development
Demonstration Projects
Joint Business Plan
Joint Development
20
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
A BUSINESS PROPOSITION answers:
“Why should we bet our resources
and reputation on you?” (partner question)
This contrasts with a
VALUE PROPOSITION that answers:
“Why should I buy your services?” (customer question)
21
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Contrasting the Propositions
Value Proposition Business Proposition
Focus: Services Partners
Objective: Sell services using
the value proposition
Create bias through the
business proposition
Attributes: Features
Benefits
Profits
Incremental sales
Strategic Value
22
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Give and Get 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 and Strategy
(purpose, mission, values)
23
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
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.
24
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Essentials of Partnering continued
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 third 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 your partner’s added value.
25
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Partnering Lifecycle
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
26
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Overview
Frameworks for thinking about
partner relationships
Tools for structuring success
Putting it in action
27
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Developing a Strategy Overview
Relationship Overview
Opportunity Overview
Business Overview
Success Overview
PURPOSE=
Aligning on view to relationship
28
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Relationship Overview
Nature of Relationship Supplier, Distribution, Influence?
History of Relationship New, Previous Interactions, State of the Relationship?
Level of Relationship Executive Level, Manager Level, Other?
Importance of Relationship Strategic, Opportunistic, Tactical?
Expected Length of Relationship Short, Unknown, Long?
29
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Opportunity Overview
Problem Statement Description of Problem Being Addressed – Business or
Technical?
Size of Problem or Opportunity? Metrics Outlining Size and Velocity?
Ramifications What happens if problem or opportunity is not
addressed?
Compelling Motivators Compelling reasons to act?
30
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Business Overview Combined Offer to Market What does the relationship yield?
Partnership Goals & Objectives Revenue, market share, reach, etc.
Business Proposition What value does this bring to the partner?
The organization?
Gives to Gets Gives to Gets?
Gives Gets
31
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Success Overview Enablers
What will work to the partnership’s favor?
Blockers
Negatives or risks?
Measurement
What does success look like:
3 months out?
6 months out?
12 months out?
32
Best Practices for Managing & Measuring Partner Relationships Session 1J/1K – 3:00 – 5:15pm • LeadingAge Michigan 2014 Annual Conference
Facilitated case study
panel discussion
33
THANK YOU!
1251 Swift Creek
Greensboro, GA 30642
(800) 995-5184
www.realmgroupinc.com
© 2014 Realm Group Inc. All rights reserved.
Your Partner for Positive Change.