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Partnering is one of the two most effective methods of growing your business
more quickly. The other method we'll leave for a future newsletter. We also
define two separate types of partnering - partnering for market reach
and for capability.
With effective partnering for market reach, you leverage the investment your
partner has made in their market development activities. You get direct and
immediate access to the decision makers with whom they're already doing
business.
Partnering for capability brings similar value. When you partner with
another company that brings a specific capability (product or service) to
your business, you dramatically increase the value of the market basket of
products or services offered to your clients. And since many clients value
"one-stop shopping", you've elevated your value to them...and have the
opportunity to increase your revenues and profitability at the same time!
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A science to partnering |
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Most companies don't partner effectively and a few do it so poorly that
they close many doors in the market that might otherwise be open to
them. There's plenty of guilt to spread around, from the over-promises
of sales people and partners, to the impatience of upper management, to
the slap-dash selection and unconscious management of partners.
We've developed channel programs and recruited and managed a variety
of partners, both for our own businesses and for clients. In doing so,
we've found the opportunity to develop a rigorous approach to selecting
partners.
Deb Merkin and Laurie Webster-Saft spearheaded this work at the
Acelera Group. They developed a methodology of evaluating and selecting
potential partners that considers a variety of criteria. In contrast to
the typical approach of "partnering with whoever will partner with us",
this ChannelBuilder methodology focuses on identifying the "best"
prospective partners and provides a tool for evaluating and ranking
these partners.
"Best partners" are defined as those who:
- Target similar or complementary markets and bring leverage to the
business
- Are financially sound
- Reflect their understanding of effective partnering by devoting
resources (people and money) to the activity
- Bring additional revenue and margin opportunities to the
partnerships
- Provide dedicated sales, technical and training resources to
partners
- Seek a win-win relationship
- Offer complementary products or services to the rest of the
company's offerings
This process brings some science to the art of partnering. In too
many companies, we've seen partners selected with little or no
evaluation, and as a result, substantial resources are wasted on
supporting those partners. This process and tool filters out those
partners who are not aligned with the company's focus or who do not have
dedicated resources for partnering.
In some cases, the company may choose to partner with a small or
unproven partner, or with one that doesn't score well for the preset
criteria. In doing so, the company is aware of the issues and can plan
accordingly.
Additionally, the company can modify the values for individual criteria
to see how various prospective (and current) partners score.
This scientific approach to partnering brings significantly better
results, as it focuses on the business issues in partnering and gets
everyone thinking about the issues that help to make partnerships
successful. |
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Tips for greater partnering effectiveness |
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How can you be more successful in your current partnering activities?
Take a hard look at what you've invested in your partnering
activities, on a partner by partner basis, and the results that each
partnership has generated.
Then sit down with each of your top partners and discuss what you've
already invested in the relationship and what it has brought to you. Ask
your partner for the same information.
If you're fortunate, your level of investment and return will
approximate that of your partner. If it doesn't you have an opportunity
to discuss changing the relationship with the partner so that it can
become "win-win".
But don't hang on to non-performing partners...if they're not
investing resources (people and money) in the relationship, cut them
loose. With very few exceptions, any partner can be replaced.
And a non-performing partner is keeping revenue from your company and
money from your pocket! |
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Upcoming topics |
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In our next issue we'll continue to explore tactical activities that can
help you to drive the growth of your company.
And to help us with future topics...what are the key marketing and
sales issues facing your organization?
Talk with us about your key issues... » |
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Links |
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Upcoming Events - An exclusive listing of the "best" events in
the Boston area. Make sure you're networking with the "right" people to
help you grow your business.
Subscription Information - To modify your subscription
information or to send a sample newsletter to a colleague.
Recent Articles - Recent Acelera Group articles on sales,
marketing and partnering issues.
About the Acelera Group - For more information on the Acelera
Group and how we assist technology companies in growing their business
more quickly and profitably.
Contact Us - To inquire about how we can assist your
organization. Or feel free to call us at 617.737.7100. |
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